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Chinese steel mills suspend purchases of BHP Billiton's iron ore-锻造展-2026年第二十六届广州国际锻造工业展览会-Forging Exhibition-2026 China(Guangzhou) Int'l Forging Industry Exhibition
10/13/2025 锻造展-forging expo-forging exhibition--forging event |
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After negotiations on a long-term contract ended in a stalemate, chinese state-owned iron ore trader ChinaMineral Resources Group has urgently instructed domestic steel mils to suspend the buying and use of BHFBiliton''s flagship 60.5 percent Fe Jimblebar fines, which has alwavs been a favorite of Chinese steel mills.according to anonymous sources. lt is said that China''s lron and Steel Association also supports this appealOn September 18-20, Chinese steel mils first announced they had received the notice to stop purchases ofBHP Biliton''s iron ore in dollars, except for material which had already reached ports. This had failed to bringresults in negotiations, so this week Chinese steel mills have been asked to stop all purchases of BHP materiain both US dolars and the Chinese currency. BHP Biliton''s shipments of iron ore to China are said to haveplummeted by 30 percent in just one week.
In early May this year, BHP Biliton and China had disagreed over the pricing mechanism as BHP insisted on anaverage annual price of $109.5/mt, while China wanted pricing based on the spot rate, while adjustingpremiums on a quarterly basis. The iron ore portside spot price is $15/mt lower than in the previous year.
In 2024, 60 percent of China''s imported iron ore came from Australia. BHP Biliton''s jimblebar mine supplies 60million mt of iron ore to China per year.
Following suspension of purchases of BHP Biliton''s jimblebar fines, China has purchased more iron ore fromVale of Brazil. Moreover, the Simandou iron ore mine in Guinea will ship its first cargo in November, which isexpected to deliver 120 million mt of high-grade iron ore to China annually.
Additionally, the proportion of low-grade ore used by Chinese steel mills has increased from 20 percent to 35percent recently.
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