China Mineral Resources Group (CMRG), the state-owned iron ore buyer, has notified local steel mills and traders that they will be prohibited from collecting BHP’s popular Newman fines stored at ports starting next week, according to three sources familiar with the matter who spoke to Reuters.
Two sources stated that customers would be allowed to take delivery of shipments within the next five business days. One of the sources said, “We had anticipated these restrictions would come eventually and had partially prepared for them, so this is no surprise.”
While BHP declined to comment, CMRG has not yet responded to Reuters’ request for comment.
Beijing has gradually restricted local steel mills and traders from purchasing BHP iron ore over the past six months while negotiating the terms of BHP’s 2026 supply contract.
Purchases of Jimblebar fines were banned in September, followed by Jinbao products in November. Last week, traders were instructed to take fewer new shipments of Newman fines, Newman lumps, and Mac fines, though purchases of existing products stored at ports were permitted.
Source: Reuters
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