Citing people familiar with the matter, Reuters reports that CMRG told traders last week to buy fewer of BHP’s flagship products that were not subjected to restrictions imposed last year.
In September, CMRG ordered major steel mills and traders in the country to stop buying BHP's Jimblebar fines, a type of iron ore. The state-owned company also reportedly informed two iron ore traders to seek permission first before purchasing any of BHP’s seaborne cargoes.
Following this development, inventories of iron ore from BHP piled up at Chinese ports. Some shipments that were supposed to be delivered to China were eventually redirected and sent to alternative markets.
