China Mineral Resources Group, established in 2022 to centralize iron ore purchases and secure more favorable terms from miners, banned Chinese steelmakers from buying BHP’s medium grade Jimblebar Blend Fines during new contract talks held in September last year. Following this decision, significant volumes of BHP cargoes were reported to have built up at Chinese ports.
According to Kpler data, the vessel Lowlands Blue delivered 95,000 metric tons of Jimblebar Blend Fines to the Malaysian coast on January 14. This marked the first time the product was discharged in Malaysia since Kpler began tracking in 2019. In addition, the vessel Cape Yamabuki shipped around 75,000 tons of JMBF to Vietnam in December. This cargo was reported to be the first shipment to Vietnam since at least 2024.
Market sources said BHP is seeking to diversify its customer base to offset sales disruptions in China. The company declined to comment on the shipments. However, two traders said Jimblebar Fines inventories increased by 360 percent compared with the end of September, reaching 8.1 million tons as of January 13. Sources added that Chinese steelmakers have been unable to take delivery of JMBF cargoes at ports.
Kpler data show that daily global exports of JMBF have seen a 74 percent decrease since January 2025. Market sources said BHP has been offering deeper discounts on iron ore, including Jimblebar Fines, in an effort to revive sales in China. Discounts on the company’s Newman Fines product reportedly increased to between USD 2.48 and USD 4.73 per ton compared with the 61 percent index levels published by Argus and Mysteel.
A source close to the matter stated that a Vietnamese steelmaker opted for the shipment due to the high discounts offered. All sources requested anonymity due to the sensitivity of the issue.
Source: Reuters
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