China Resumes BHP Iron Ore Purchases

China's state iron ore buyer has announced the resumption of bidding for BHP iron ore cargoes denominated in US dollars. This follows a previous halt instructed by the China Mineral Resources Group in September, affecting purchases from the mining giant BHP, one of China's key suppliers.

China's state iron ore buyer has lifted its previous restriction on BHP iron ore cargoes, allowing local plants to bid in US dollars as early as Tuesday, according to Bloomberg News. This move signals a shift in strategy as China's industry attempts to recalibrate its procurement practices.

In September last year, the China Mineral Resources Group (CMRG) implemented a halt on purchasing dollar-denominated seaborne iron ore from BHP. BHP is not only the world's largest listed mining company but also one of China's leading suppliers of iron ore.

Industry insiders reveal that the resumption is aimed at stabilizing China's raw material supply chain, crucial for sustaining its steel production amidst global market fluctuations. The decision reflects both the complexity and interdependence in the global commodities market.

(With inputs from agencies.)