China bans new BHP iron ore cargoes as pricing row grows

China's state-run iron ore buyer has told major steelmakers and traders to temporarily halt purchases of all new BHP Group cargoes, escalating a pricing dispute that risks upending one of the mining giant's most important trading partnerships.

China Mineral Resources Group Co., created by Beijing to bolster the country's sway in the global iron ore trade, asked domestic buyers this week to suspend purchases of any dollar-denominated seaborne cargoes from the miner, the people said, asking not to be identified discussing private deliberations.

It means new deals can't be signed, including for cargoes that have already left Australia, where BHP has its mines. The only BHP iron ore available for trade are some supplies that have landed in China and are priced in yuan. The decision followed several meetings between the two sides since late last week that failed to produce results, the people said.

China is by far the top the consumer of iron ore globally, while BHP, the world's biggest mining company, is one of three major suppliers that supply the bulk of the material to the country's steelmakers.