China halts new iron ore purchases from BHP, escalating pricing dispute: Report

By Esra Tekin

ISTANBUL (AA) - China’s state iron ore buyer has instructed major steel producers and traders to temporarily halt purchases of all new BHP Group cargoes, intensifying a pricing dispute that could disrupt a key trading relationship for the mining company, Bloomberg reported Tuesday.

China Mineral Resources Group Co., established by Beijing to increase the country’s influence in the global iron ore trade, told domestic buyers this week to pause all purchases of dollar-denominated seaborne iron ore from BHP, according to sources.

As a result, no new contracts can be signed — even for shipments already en route from Australia, where BHP operates its mines.

Only BHP cargoes that have arrived in China and are priced in yuan remain available for trade.

The move follows a series of unproductive meetings between the two parties since late last week, the sources added.

Chins is the biggest consumer of iron ore globally. BHP, the world's biggest mining company, is among the three key suppliers that provide the majority of the material to the country’s steelmakers.

The leaders of Asia’s largest economy have become increasingly willing to use their influence in raw materials markets, imposing bans on Australian commodities earlier this decade and introducing export controls on rare earths this year.