Beijing, China – Reuters quoted informed Chinese sources as saying that Beijing has expanded its ban on low-grade iron ore from Australian mining company BHP
to include a new shipment known as Jinbao fines.
This is an escalation following a previous ban on shipments
of Jimblebar Blend Fines since last September.
The sources explained that steel companies and traders received
instructions not to purchase these new shipments.
With a three-day grace period to stop unloading them at Chinese ports,
This could lead to increased pressure on inventory
and logistics operations in the coming period.
Trade tensions escalate
These developments come amid stalled negotiations between BHP
and the state-owned China Mineral Resources Group.
This concerns the renewal of the annual iron ore contract,
with tensions continuing until the 2026 contract.
Analysts noted that Jinbao fines shipments are relatively small in size
and do not cause significant market disruption.
But it is seen as an indication of escalating trade tensions between the two sides.
Impact of the ban on BHP
Despite crude steel production in China falling to its lowest level since December 2023,
Iron ore prices have maintained their support due to a decrease
in the supply of medium-quality ores such as Pilbara Blend Fines.
BHP declined to comment on the details of the negotiations,
while CMRG did not issue any official response.
Markets are watching closely to see the impact of this ban
on global iron ore prices in the coming weeks.
Amid close scrutiny from investors and industry analysts.
