This move adds to the previously applied Jimblebar blend fines ban, escalating the commercial dispute between the two parties. Sources stated that steel mills are also banned from receiving Jinbao Fines from ports for three days, during which ports may experience increased activity.
It is not clear how many steel producers, trading companies, or other iron ore buyers received an official notice from CMRG this week.
BHP: no comment
BHP stated that they do not comment on commercial negotiations regarding the Jinbao Fines ban. The company also confirmed that talks with CMRG continued on the same day. CMRG did not respond to inquiries.
Small-volume trade likely targeted
Analysts and sources stated that CMRG likely targeted Jinbao Fines due to its small trade volume. Because the market share of low-grade ore is very limited, the ban is not expected to disrupt the overall market. Three sources emphasized that the trade volume of this product is so small that it is not regularly monitored.
Meanwhile, after the initial ban on medium-grade ores—especially Pilbara Blend fines—tight port inventories continue to support prices. Iron ore prices rose to record levels this week despite weak demand. Sources stated that poor weather forcing some northern mills to reduce production also contributed to the increase.
Source: Reuters
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