BHP Transports Rare Jimblebar Iron Ore Shipment to India Amid China Trade Dispute

BHP Group Ltd. Diverts Iron Ore Shipment to India

BHP Group Ltd. is diverting a cargo of Jimblebar fines, a type of iron ore restricted by China's state buyer, to India. According to sources familiar with the matter, the True Champion, carrying approximately 170,000 tons of BHP's Jimblebar blend fines, is expected to arrive at JSW Jaigarh Port on March 25.

The cargo is destined for JSW Steel, a major steelmaker in India. This rare supply to India follows a months-long standoff between BHP and China Mineral Resource Group. In September last year, CMRG instructed steelmakers to halt purchases of Jimblebar after talks on long-term contracts faltered.

The JSW purchase of mid-grade Jimblebar fines is unusual for India, where imports from Brazil and Australia tend to be of higher-grade ores. According to market intelligence firm CRU, JSW may have acquired the cargo at a discounted price, given the current seaborne prices do not favor imports.

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India's captive mines in Odisha have similar raw materials, making it unlikely for more deals like this to occur. BHP had previously diverted cargoes to destinations outside China, and some restrictions on Jimblebar have since been eased after concerns over broader curbs on the miner drove a surge in iron ore prices earlier in March.