Australian miner BHP has begun redirecting iron ore cargoes that cannot be placed into China toward alternative destinations, including Malaysia and Vietnam, as inventories of its Jimblebar Blend Fines (JMBF) continue to accumulate at Chinese ports, according to a Reuters report.
China’s state-backed buyer China Mineral Resources Group, established in 2022 to centralize iron ore procurement, instructed Chinese steelmakers and traders last September to suspend purchases of BHP’s JMBF during negotiations over new annual supply terms, as SteelOrbis reported previously.
First shipments to Southeast Asia since 2019
With access to the Chinese market constrained, BHP has sought alternative outlets for its cargoes. In mid-January, the bulk carrier Lowlands Blue discharged approximately 95,000 mt of JMBF in Malaysia, marking the first shipment of this product to the country since at least 2019, according to Kpler shipping data.
In addition, around 75,000 mt were shipped to Vietnam in December aboard the Cape Yamabuki, representing the first delivery of JMBF to Vietnam since at least 2024.
Although these volumes remain small compared with BHP’s annual JMBF output of more than 60 million mt, the shipments underline the miner’s efforts to diversify its customer base while sales into China remain restricted.
Port inventories surge, exports fall sharply
Meanwhile, stocks of Jimblebar fines at major Chinese ports have risen sharply, increasing by around 360 percent since late September to approximately 8.1 million mt by mid-January. Market sources indicated that Chinese mills are currently prohibited from taking delivery of JMBF already stored at ports. Reflecting these constraints, global daily exports of JMBF are estimated to have declined by roughly 74 percent compared with January 2025 levels.
Discounts widened to support sales
In an effort to stimulate demand, BHP has reportedly widened discounts on some of its iron ore products. Market participants said discounts on Newman fines for February shipments increased significantly compared with January, helping to facilitate at least one of the recent Vietnamese purchases.
BHP stated that it continues to negotiate contract terms with China’s state buyer and is optimizing its distribution channels in the interim.