BHP redirects Jimblebar iron ore shipments to Southeast Asia amid contract dispute with China

Australian mining company BHP has begun redirecting shipments of iron ore that cannot be placed in China to alternative destinations, including Malaysia and Vietnam, as stocks of its Jimblebar Blend Fines (JMBF) continue to accumulate at Chinese ports, according to a Reuters report.

State-backed buyer China Mineral Resources Group, established in 2022 to centralize iron ore purchases, instructed Chinese steelmakers and traders last September to suspend purchases by JMBF BHP while negotiating new annual supply conditions. , as previously reported by SteelOrbis.

First shipments to Southeast Asia since 2019

Due to limited access to the Chinese market, BHP was looking for alternative locations for its cargoes. In mid-January, the Lowlands Blue bulk carrier unloaded about 95,000 tons of JMBF in Malaysia, marking the first shipment of this product to the country since at least 2019, according to Kpler.

Additionally, about 75,000 tons were shipped to Vietnam in December aboard Cape Yamabuki, marking JMBF's first shipment to Vietnam since at least 2024.

While these volumes remain small compared to JMBF BHP's annual production of over 60 million tonnes, the shipments underscore the miner's efforts to diversify its customer base, while sales to China remain limited.

Port stocks are growing, exports are falling sharply

Meanwhile, Jimblebar stocks fines on