Overview

• China Mineral Resources Group told major steelmakers and traders to temporarily halt purchases of new US-dollar-denominated seaborne cargoes from BHP, according to people familiar with the instructions.
• The directive widens earlier curbs on BHP’s Jimblebar blend fines, with mills told not to take delivery at Chinese ports or buy Jimblebar on the yuan-denominated spot market.
• Weeks of negotiations over contract renewals between CMRG and BHP failed to produce an agreement, leading to the purchasing pause.
• Following the report, Singapore iron ore futures rose nearly 2% and BHP’s London-listed shares fell about 4.8%.
• Created to consolidate China’s buying power, CMRG seeks stronger pricing leverage for the steel industry as some mills begin adapting to alternative ore supplies.