Is the BHP share price a buy amid China iron ore ban worries?
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The BHP Group Ltd (ASX: BHP) share price has seen some volatility on reports that China may have banned the buying of the miner’s iron ore.
China Mineral Resources Group (CMRG) was formed a few years ago to be a key buyer of iron ore for the Chinese steel industry. Its scale and buying power give it a strong negotiating hand with giant iron ore miners such as BHP, Rio Tinto Ltd (ASX: RIO) and Fortescue Ltd (ASX: FMG).
The broker UBS noted reports that CMRG had escalated the pricing dispute with BHP by temporarily banning domestic steel mills from purchasing iron ore from BHP.
CMRG now reportedly represents more than 50% of China’s steelmakers in negotiations with global iron ore suppliers.
UBS said it…
