Latest News

China lifts the ban on BHP cargoes, resulting in a fall in iron ore

Iron ore futures fell on Tuesday after China's state-owned iron ores buyer lifted previous bans on the shipment of a?key ingredient for steelmaking from Australian miner BHP. This increased the supply available to domestic steel mills.

The September contract for iron ore on China's Dalian Commodity Exchange traded 0.07% higher at 758.5 Yuan ($111.27).

As of 0720 GMT, the benchmark May iron ore was down 1.1% at $103.5 per ton on the Singapore Exchange. China, the largest consumer of iron, has lifted its bans on purchasing the mineral from mining giant BHP, according to sources. The dispute, which had lasted for months, was resolved after the top executives of the miner visited their largest customer.

Two sources who requested anonymity said that the state iron ore buyer, China Mineral 'Resources Group' (CMRG), notified domestic steel mills of their freedom to?purchase BHP seaborne cargoes. China's imports of iron ore in March increased 11.5% compared to the previous year, according to data released by the country's General Administration of Customs on Tuesday.

Mysteel data showed that global iron ore shipments rose by 844,000 tons from April 6-12, compared with the previous week. The biggest increases were in shipments coming from Australia and Brazil, which grew by 2.335 million tons. The data from consultancy Mysteel showed that new bank lending in China increased less than expected, but the broad money and funding growth was still sufficient to support economic expansion.

Coking coal and coke were both mixed in the DCE, each contributing 0.33%?and 0.24% respectively.

The benchmarks for steel on the Shanghai Futures Exchange have mostly been in positive territory. Rebar was little changed. Hot-rolled coil rose 0.12%. Wire rod gained 0.61%. Stainless steel grew by 0.38%.

(source: Reuters)