China eases BHP iron ore ban for one week

China will ease a ban on BHP’s Jimblebar fines, an iron ore product, until next week, sources said on Friday, only a day after Beijing expanded restrictions against its third-largest supplier.

China Mineral Resources Group, the state-run iron ore buyer, told domestic steel mills that they could take delivery of Jimblebar fines already at ports for around a week, said three sources with the knowledge of the matter on condition of anonymity due to the sensitivity of the matter.

The exception will only apply to steelmakers, not traders.

CMRG barred steelmakers and traders from purchasing Jimblebar fines in September, and has progressively expanded its restrictions, most recently this week, as it negotiates the terms of BHP’s 2026 supply contract.

Iron ore prices hit a 2-month high on Thursday as traders worried further bans would limit iron ore supply at ports.

The temporary reprieve highlights the challenge CMRG faces in its mission to lower prices when its primary tool to date is to take supply out of the market.

“The move is to rein in iron ore price rally,” said one of the sources.

CMRG and BHP did not immediately respond to Reuters requests for comment outside of working hours.

(Editing by Louise Heavens)