BHP Resumes Iron Ore Sales to China, Easing Fears of Beijing Ban

BHP Group has resumed selling iron ore cargoes to China, alleviating concerns that Beijing had imposed an unofficial ban on Australian iron ore. Several cargoes were listed for sale on Thursday, the first trading day after China’s week-long National Day holiday, with at least one 170,000-metric-ton shipment sold to a local trader, according to industry sources. The transaction was settled in U.S. dollars, signaling that trade between BHP and Chinese buyers remains active.

On the same day, the Shanghai branch of China Mineral Resources Group (CMRG)—the state-backed agency established in 2022 to centralize iron ore procurement—offered eight BHP cargoes totaling 1.14 million tons to steelmakers. The move suggests that commercial negotiations between BHP and Chinese authorities are progressing, despite earlier reports of a potential freeze.

Last month, Bloomberg reported that CMRG had directed steel mills and traders to halt new purchases of BHP cargoes amid a standoff over new contract terms, sparking fears in Australia of a repeat of China’s 2020 trade restrictions on coal and other commodities. However, sources told Reuters that while the suspension on BHP’s Jimblebar fines—a smaller, 40-million-ton-per-year product—remains in effect, other grades of iron ore can still be bought with CMRG’s approval.

None of the cargoes offered or sold this week included Jimblebar fines, whose trade continues to be paused. BHP has declined to comment on the ongoing commercial discussions, while CMRG has not responded to media inquiries.

Despite temporary disruptions, market analysts note that Rio Tinto’s Pilbara fines can substitute for Jimblebar products, limiting any potential price impact. BHP CEO Mike Henry also reassured Australian officials last week that the issue was purely commercial and not politically motivated, easing fears of a broader Chinese import ban.