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BHP Shares Crash as China Halts Cargoes
['Er Velasco']
the deep dive
China’s state-run buyer China Mineral Resources Group this week ordered mills and traders to halt purchases of all new BHP Group iron ore cargoes, freezing dollar-denominated deals and lifting Singapore iron ore futures 1.8% to $105.05 per ton.
BHP shares fell as much as 4.8% in London while iron ore futures jumped around 1.8% to $105.05 following the news.
The suspension means no new dollar-priced seaborne contracts with BHP can be signed, including cargoes that have already departed Australia.
The only BHP tons currently tradable in China are yuan-priced shipments already landed at Chinese ports.
It now represents over half of China’s steel industry in negotiations with miners including Rio Tinto and Vale.