Iron ore falls as China eases curbs on BHP cargoes

BHP

28/04/2026 08:54

Updates prices to market close

By Ruth Chai

SINGAPORE, April 28 (Reuters) - Iron ore futures fell on Tuesday after two consecutive sessions of gains, as supply concerns eased following news that China's state buyer had allowed some local steelmakers to purchase previously banned BHP cargoes piling up at ports.

The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) DCIOcv1 fell 0.89% to 780.5 yuan ($114.20) a metric ton.

The benchmark May iron ore SZZFK6 on the Singapore Exchange shed 0.59% to $106.3 a ton as of 0713 GMT.

The China Mineral Resources Group's (CMRG) decision came after BHP Group BHP.AX said last week it had concluded contract negotiations with the state-backed iron ore buyer, ending a months-long dispute.

Steelmakers can now buy and take delivery of previously frozen BHP products such as Jimblebar fines - a medium-grade iron ore - after submitting a report to CMRG, said the sources, speaking on condition of anonymity.

Traders also were notified they could resume selling Jimblebar fines at ports, one of the sources added.

Bloomberg reported that Fortescue FMG.AX was also close to concluding its own supply deal with CMRG.

Meanwhile, Iran, among world's top 10 steel producers, has imposed a ban on exports, raising expectations of increased demand for Chinese finished steel products.

Iran has halted exports of steel slabs and sheets until May 30, state media reported on Monday, as the local steel industry was hit by strikes amid the conflict with Israel and the United States.

Around 10 million tons of Iran's annual steel production capacity, or 25%-30% of total output, has been knocked offline following damage to key facilities, newspaper Etemad had reported on Sunday.

Other steelmaking ingredients on the DCE declined, with coking coal DJMcv1 and coke DCJcv1 falling 0.51% and 1.62%, respectively.

Most steel benchmarks on the Shanghai Futures Exchange retreated. Rebar SRBcv1 lost 0.66%, hot-rolled coil SHHCcv1 fell 0.82%, stainless steel SHSScv1 softened 0.2% while wire rod SWRcv1 gained 0.61%.

($1 = 6.8343 yuan)

 (Reporting by Ruth Chai; Editing by Sumana Nandy and Subhranshu Sahu)

 ((ruth.chai@thomsonreuters.com;))