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BHP sends iron ore from Jimblebar to Malaysia and Vietnam after China ban stops sales

BHP Group has sent iron ore cargoes that are not allowed to be sold in China, to Malaysia and Vietnam. The company is looking for alternative buyers because its Jimblebar stocks have been piling up at Chinese ports due a long-running contract dispute with Beijing. China Mineral Resources Group, set up in the year 2022 with the aim of centralising iron ore purchases and gaining better terms from miner, has barred Chinese steelmills and traders from purchasing BHP's Jimblebar Blend Fines, a medium-grade ore. This was done last September, during ongoing talks about a new contract. Lowlands Blue, carrying 95,000 tons of BHP’s JMBF and docked at the Malaysian port on January 14 as?talks continue. This is the first time that a ship with this cargo has been discharged since Kpler began keeping records in 2019. According to Kpler and traders who are familiar with the matter, the Cape Yamabuki sent approximately 75,000 tons JMBF to Vietnam last December. Kpler data indicated that it was the first cargo of this kind to be shipped to Vietnam since 2024.

BHP DIVERSIFIES 'IRON ORE BUYERS

The unusual trades, while?small' compared to BHP’s annual production of over 60 million tons JMBF in Australia, show the mining group's efforts at diversifying its buyers in order to offset its China problems. The world's No. The world's No. It refused to comment on the reported shipments. According to two traders, the stocks of BHP's Jimblebar Fines in major Chinese ports had increased 360% since late September. They were now 8.1 million tonnes as of 13 January. Sources?told that Chinese steelmakers were not allowed to accept JMBF cargoes at ports. According to Kpler data, the daily global exports for JMBF have dropped 74% since January 2025. BHP is 'offering more discount for its iron ore, including the Jimblebar Fines in order to facilitate sales in China', according to several trade sources. Two traders said that discounts for BHP's Newman Fines, a medium-grade type of iron ore, have widened from $2.48 to $4.73 per ton compared to the benchmark 61% indices of Argus & Mysteel.

According to a trader who was familiar with the deal, the Vietnamese steel mill placed the order because of the deep discount.

All sources requested anonymity due to the sensitive nature of the subject. Reporting by Staff; Editing by Kevin Liffey

(source: Reuters)