China's CMRG to let steel mills pick up ore cargoes at ports

China’s state-owned China Mineral Resources Group (CMRG) has extended restrictions on BHP Group’s (BHP.AX) iron ore shipments, prohibiting domestic steel mills and traders from accepting Newman fines—a key BHP product stored at ports—starting next week. However, customers may still take delivery of existing Newman fines cargoes within the next five business days, according to sources familiar with the matter. This marks the second time in two weeks that CMRG has broadened its ban on BHP iron ore, escalating a months-long contract dispute over the terms of the 2026 supply agreement.

The restrictions follow prior bans on Jimblebar fines (September 2025) and Jinbao products (November 2025), with CMRG now limiting access to new shipments of Newman fines, lump ore, and Mac fines while permitting purchases of existing port stocks. The move aligns with CMRG’s role as a centralized buyer, established in 2022 to consolidate procurement power and negotiate favorable terms with major suppliers.

Benchmark April iron ore prices on the Singapore Exchange rose over 3% in afternoon trading on March 12, reflecting market sensitivity to supply constraints. BHP has not commented on the restrictions, while CMRG did not immediately respond to requests for clarification. The company has redirected some restricted shipments to Southeast Asian markets, including Malaysia and Vietnam, to mitigate the impact.

The ongoing dispute underscores China’s strategic leverage in global iron ore markets, with procurement policies increasingly influencing pricing dynamics and trade flows.