China’s state-owned iron ore purchasing entity has further tightened its control over iron ore from Australian miner Fortescue Metals Group (FMG), extending restrictions from existing port inventories to new spot purchases of Super Special Fines, as the trade dispute between the two sides continues to escalate. China Mineral Resources Group was established with the original intent of enhancing China’s bargaining power in negotiations with global mining giants. Previously, the group had notified domestic steel mills and traders holding Fortescue Super Special Fines that these cargoes must be picked up by July 15; goods still stranded at ports after the deadline will be blacklisted, with accompanying logistics control measures.

Multiple people familiar with the matter, who declined to be identified due to the sensitivity of the information, said that China Mineral Resources Group has now further required several domestic steel mills and traders to stop purchasing new spot Super Special Fines priced in US dollars.

In the third quarter of the fiscal year ending at the end of March, Super Special Fines accounted for about 45% of Fortescue’s total shipments.

The reporter has not yet received a comment response from China Mineral Resources Group, and Fortescue also declined to comment.

The continued escalation of restrictive measures against Fortescue comes against the backdrop of a deadlock in long-term supply pricing negotiations between the Australian miner and Chinese purchasing entities.

China Mineral Resources Group had previously taken similar control measures against mining giant BHP, and the restrictions were not lifted until the two sides reached an agreement in April. During that standoff, China Mineral Resources Group blacklisted some BHP mineral products stranded at Chinese ports and required domestic buyers to stop purchasing new spot ore priced in US dollars.