Chinese mills cleared to pick up BHP’s iron ore stockpiles after ending months-long supply standoff

Some Chinese steelmakers have been cleared to collect and trade iron ore from BHP Group that had accumulated at ports before the country’s state-backed buyer resolved contentious negotiations with the miner. China Mineral Resources Group has informed some mills that inventories of BHP ore, including Jimblebar Blend Fines, would be released, according to sources. Steel mills are required to report their transactions relating to the ore to CMRG. The approval from Beijing clears up confusion over how the stockpiles that remained in ports would be handled after the two sides struck a deal on long-term contracts. The mills had earlier been told that they could take delivery of new BHP cargoes, with no clarity on the fate of existing stockpiles. BHP declined to comment. CMRG didn’t immediately respond to a request for comment. BHP confirmed last week that it had finalised a supply deal with CMRG, ending a months-long standoff that had resulted in restrictions on its products, the redirection of shipments and an accumulation of stocks at ports. Some 47 Chinese ports currently hold a total of about 23 million tonnes of BHP iron ore fines in stockpiles, according to an estimate from Macquarie Group. Around half of that is Jimblebar, with the rest made up on Mining Area C Fines and Newman Fines. Singapore iron ore futures fell as much as 1.4 per cent to $105.40/t, before recovering some of the losses to $US105.95/t at 11.25am. Bloomberg