China Suspends Dollar BHP Iron‑Ore Purchases

China’s state-run buyer, China Mineral Resources Group (CMRG), has told domestic steelmakers and traders to suspend purchases of dollar‑denominated seaborne iron ore from BHP after annual price talks stalled, widening an earlier curb on the Jimblebar blend. Sources say the directive blocks new contracts and, in some reports, even cargoes en route, while BHP said shipments from Port Hedland remain uninterrupted and declined to comment on commercial arrangements. The news sent BHP shares down—sliding as much as about 5% intraday in some reports and later trading down several percent—while iron‑ore futures in Singapore rose roughly 1–2%. Analysts say the move looks like a negotiating tactic enabled by China’s market leverage and inventories, so short‑term disruption to mills may be limited. If the standoff persists, buyers could divert volumes to rivals such as Rio Tinto, Vale or Fortescue (or upcoming supplies like Simandou), potentially strengthening miners’ pricing power and reshaping seaborne trade flows; the dispute comes as BHP has reported its weakest annual profit in five years and China has increased use of lower‑grade ore and purchases from other suppliers.