Chitchat De-Dollarization has started - China forcing BHP into non-USA Trades

[Pinkieslut]

China Bans New BHP Iron Ore Cargoes, Escalating Pricing Dispute​

Iron ore stockpiles waiting to be transported at Rio Tinto Group's port facility in Karratha, Western Australia.
Photographer: Carla Gottgens/Bloomberg



By Alfred Cang and Katharine Gemmell
September 30, 2025 at 3:41 PM GMT+8
Updated on
September 30, 2025 at 5:15 PM GMT+8
Save
Translate

Listen

2:30

Takeaways by Bloomberg AI​

• China's state-run iron ore buyer has told major steelmakers and traders to temporarily halt purchases of all new BHP Group cargoes, escalating a pricing dispute.
• The decision means new deals can’t be signed, including for cargoes that have already left Australia, where BHP has its mines, except for some supplies that have landed in China and are priced in yuan.
• The restriction marks an escalation from the halt on BHP’s Jimblebar blend fines earlier this month, and highlights Beijing’s determination to gain greater influence over prices.

Get the Supply Lines newsletter.
Trade wars, tariff threats and logistics shocks are upending businesses and spreading volatility. Understand the new order of global commerce.
https://www.bloomberg.com/subscriptions
China’s state-run iron ore buyer has told major steelmakers and traders to temporarily halt purchases of all new BHP Group cargoes, escalating a pricing dispute that risks upending one of the mining giant’s most important trading partnerships.

China Mineral Resources Group Co., created by Beijing to bolster the country’s sway in the global iron ore trade, asked domestic buyers this week to suspend purchases of any dollar-denominated seaborne cargoes from BHP, people familiar with the matter said, asking not to be identified discussing private deliberations.

It means new deals can’t be signed, including for cargoes that have already left Australia, where BHP has its mines. The only BHP iron ore available for trade are some supplies that have landed in China and are priced in yuan. The decision followed several meetings between the two sides since late last week that failed to produce results, the people said.

Iron Ore Prices Jump​

China's ban on BHP ore could shrink supply

Source: SGX
China is by far the top the consumer of iron ore globally, while BHP, the world’s biggest mining company, is one of three major suppliers that supply the bulk of the material to the country’s steelmakers. Leaders of Asia’s largest economy have grown more willing to leverage its clout in raw materials markets, putting bans on Australian commodities earlier this decade as well as export controls on rare earths this year.


“Would China have done this a decade ago, when it heavily depended on imports? No way,” said Tom Price, analyst at Panmure Liberum Ltd. The difference now is that Chinese steel demand is moderating and a wave of new iron ore supply from the giant Simandou mine in Guinea is looming, he said.

The new restriction marks an escalation from the halt on BHP’s Jimblebar blend fines earlier this month, and highlights Beijing’s determination to gain greater influence over prices. Established three years ago, CMRG has been tasked with shifting the balance of power in negotiations from miners such as BHP, Rio Tinto Group and Vale SA to China’s vast steel industry.

The earlier curbs have also been tightened, the people said. CMRG has instructed mills not to take delivery of Jimblebar cargoes at Chinese ports, nor to buy such shipments on the yuan-denominated spot market. The measures have prompted some steelmakers to begin adjusting production parameters to accommodate alternative ores.

Singapore iron ore futures rose 1.8% to $105.05 a ton. BHP shares fell as much as 4.8% in London, the most since early April.

CMRG didn’t respond to requests for comment. A BHP spokesperson said the company couldn’t comment on commercial arrangements.

 

[syed putra]

Good move china. Buy from impoverished countries but at a lower price. Its wealth sharing.