Treasurer Jim Chalmers will meet with BHP CEO Mike Henry following reports that China has blocked imports of the mining giant's iron ore. Beijing's state buyer, China Mineral Resources Group, has reportedly told steelmakers to pause purchases from BHP amid price negotiations, according to Bloomberg.
Prime Minister Anthony Albanese expressed concern but hoped the measure would be "very much short-term." He stated, "I want to see Australian iron ore be able to be exported into China without hindrance." Chalmers described the reports as "concerning" but said it was a matter for the company.
There is confusion over the blockade, with sources telling AAP that BHP continues to ship ore to China. Chinese analyst Mysteel suggested no official order was given. BHP declined to comment on commercial arrangements.
The ASX fell on Wednesday, with the S&P/ASX 200 dropping 23.1 points to 8,824.7. BHP shares tumbled 1.5% to $41.90, while Fortescue rose over 2% and Rio Tinto edged up 0.1%. Analysts noted that competitors could only absorb a small portion of BHP's volumes, potentially raising costs for Chinese steelmakers.
