China eases BHP iron ore curbs after months long trade dispute

Tuesday 14 April 2026 - 12:20

By: Dakir Madiha

China eases BHP iron ore curbs after months long trade dispute

China has lifted restrictions on some iron ore purchases from BHP, signaling a shift in a trade dispute that had disrupted global supply chains for months and unsettled commodity markets.

A state-backed buyer, China Mineral Resources Group, informed steel producers they could resume bidding on selected BHP cargoes priced in US dollars starting Tuesday. The move marks the first clear step toward restoring trade flows after a prolonged standoff over pricing terms for a 2026 supply contract.

Steel mills have not yet received full clearance to take delivery of shipments held in Chinese ports, but officials are expected to issue that authorization soon. The partial reopening already indicates a broader policy shift after months of tightening restrictions on BHP products.

The dispute began in late 2025 when Chinese authorities gradually limited access to several BHP iron ore blends. Restrictions first targeted Jimblebar fines, then expanded to Jinbao fines in November, and later to Newman fines in March, one of the company’s most widely traded products.

These measures tightened supply in the world’s largest steel market and pushed iron ore prices higher. The restrictions also forced BHP to redirect shipments to alternative destinations, including Malaysia and Vietnam, as inventories accumulated in Chinese ports. Stockpiles of Newman fines rose sharply during the period, reflecting the disruption in trade flows.

The easing follows a recent visit to Beijing by Brandon Craig, who is set to take over as chief executive in July. During the trip, Craig met senior executives from Aluminum Corporation of China. Market participants interpreted the visit as a sign that negotiations had resumed, even though no formal talks with the China Mineral Resources Group were publicly confirmed.

Iron ore prices had already declined to a one month low after reports of Craig’s visit, as traders anticipated a possible resolution that would release cargoes stranded in Chinese ports.

The dispute has been one of the most significant trade tensions between China and a major resource supplier in nearly two decades. The latest decision suggests both sides are moving toward stabilizing supply chains in a market critical to global steel production.