China to halt BHP iron ore cargoes during price talks
China’s state iron ore receiver, steel producers and traders, during the annual price negotiations to pause the purchase of sea -based iron ore loads in the US dollar, Bloomberg, referred to people who know the subject.
China, the world’s largest iron ore consumer, buys about 75 percent of global sea -based iron ore and sets up China Mineral Resources (CMRG) to buy ore on behalf of steel manufacturers to earn more leverage three years ago as a single buyer.
Meanwhile, BHP is the world’s largest listed mine and China’s third largest supplier behind Rio Tinto and Valet.
CMRG did not respond immediately to the request for comments sent by E -mail, and a BHP spokesman said he did not comment on commercial negotiations.
“We see this as a neutral event,” RBC analysts said in a note, “the titles are negatively.”
“We see this’ ban as a tactic of more negotiations, most likely the effort to secure lower long -term prices.”
Steel factories, Rio Tinto, Valet or Fortescu, pushed to buy iron ore from competitors, cumulatively, they would cost them more expensive and less efficient, RBC, steel factories will increase the pricing power of miners while competing for Feamtock, he added.
A source of trade, the directive will cause little discomfort to the Chinese mills in the short term, because they have stocked it before public holidays for the next two weeks.
In August, BHP said that after the annual profit fell to the lowest level in five years, China would fall to the lowest level in five years because it focuses on iron ore prices.
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