China, the biggest buyer of iron ore globally, requested steelmakers and traders in the country to pause buying BHP iron ore prices temporarily, as reported by Bloomberg.
The action takes place in yearly discussions on product pricing, which are conducted in US dollars.
The nation is responsible for approximately 75% of international ore shipping and established CMRG (China Mineral Resources Group) to consolidate purchases and increase its power as a unified purchaser.
BHP is the biggest publicly traded mining company globally and ranks third in China after Rio Tinto and Vale.
RBC analysts view suspension as a trading strategy aimed at ensuring lower prices in the long run, rather than an immediate market threat.
A business report mentioned that Chinese factories currently possess sufficient inventory for the following two weeks, reducing immediate consequences.
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