The Chinese state company China Mineral Resources Group (CMRG) has urged traders to refrain from purchasing new shipments of iron ore from BHP Group. This decision comes in response to recent instances of violations of established purchasing limits among certain traders.
This is reported by Finway
Negotiation Issues and Expansion of Restrictions
Negotiations between CMRG and BHP Group regarding a long-term partnership, conducted on behalf of Chinese metallurgical plants, have long remained unproductive. Back in September 2025, the state company mandated steel producers to refrain from purchasing a mix of Jimblebar fines, and subsequently imposed restrictions on the supply of all new BHP products denominated in US dollars. Later, the Jinbao grade was also banned.
New Guidelines for Traders and Record Stocks
According to several sources, CMRG officially informed some traders this week about the need to reduce purchases of marine shipments of BHP’s key products, namely Mac fines, Newman fines, and Newman lumps.
In February, a number of iron ore traders received a notice from CMRG regarding the necessity of obtaining prior approval for the purchase of any marine shipments from BHP. They submitted the relevant applications but have yet to receive a response.
“Jimblebar stocks at some major Chinese ports rose to a record 9.8 million tons by February 26, which is 457% higher than at the end of September, noted two separate trading sources.”
The state company CMRG, established in 2022, aims to centralize iron ore purchases for China and improve cooperation conditions with leading mining corporations worldwide.