On Monday, the company’s stock slid to $50.10, down by 5.13% from the previous closing price of $52.81. BHP’s stock already shed 15.17% of its value over the past five trading days.
BHP is in the red zone as Beijing’s China Mineral Resources Group (CMRG) reportedly moved to expand restrictions on buying dollar-denominated seaborne iron ore cargoes from the Australian miner.
Citing people familiar with the matter, Reuters reports that CMRG told traders last week to buy fewer of BHP’s flagship products that were not subjected to restrictions imposed last year.
In September, CMRG ordered major steel mills and traders in the country to stop buying BHP’s Jimblebar fines, a type of iron ore. The state-owned company also reportedly informed two iron ore traders to seek permission first before purchasing any of BHP’s seaborne cargoes.
Following this development, inventories of iron ore from BHP piled up at Chinese ports. Some shipments that were supposed to be delivered to China were eventually redirected and sent to alternative markets.