IRON ore is heading for its biggest weekly gain in more than a year after China’s state-backed buyer moved to expand restrictions on BHP products, said Bloomberg News in an article on Friday (13 March).
Singapore futures of the steelmaking ingredient have risen more than 6% this week, the largest increase since January 2025. Prices climbed on Friday to nearly $109 a ton as Chinese mills rushed to transfer BHP ore from port stockpiles to plants ahead of any curbs, said the newswire.
China Mineral Resources Group (CMRG) has indicated to mills that BHP products, including Newman fines and lumps and Mining Area C fines, would be placed in the same restricted category as BHP’s Jimblebar blend. It would be the second time this month that CMRG has escalated its response to fraught negotiations with BHP over long-term contracts.
Singapore futures were 0.4% higher on the day at $108.25 a ton at 10.12am local time. Futures in Dalian added 2.6% to 816.50 yuan a tonne, while Shanghai steel contracts also climbed, the newswire said.
In September, China implemented curbs on iron ore imports through CMRG. Established two years ago, CMRG is said to be driving for better prices, and has told Chinese steelmakers not to buy certain products. It is a development that bank Goldman Sachs believes could reshape the iron ore market in the longer term.
“CMRG was only established a couple of years ago, but is by now responsible for probably 70 to 75% of Chinese iron ore imports. So the balance of power between buyers and sellers is shifting a little,” said Timo Smit, head of marketing for South Africa’s Kumba Iron Ore.
