BHP lowers Newman fines iron content from August loadings onwards

BHP has renewed the quality specifications for its iron ore cargoes loading from Aug. 1, and for cargoes sold on an arrival-month basis starting in August, including a further reduction in the iron content for Newman High Grade Fines (NHGF), one of its main medium-grade products, following degradations last year, the Australian miner said July 1.

NHGF cargoes with a loadport laycan starting on or after Aug. 1, 2026, and sold on an arrival-month basis starting in August, would fetch a typical iron content of 60.7%, down from 61.2% Fe currently.

In addition to lower Fe content, NHGF would see its updated specifications reflect 2.8% Alumina, 5% Silica, and 0.11% Phosphorous, with alumina and phosphorous impurities up to 2.6% and 0.098%, respectively.

Iron content for BHP's other two key medium-grade iron ore products - Mining Area C Fines (MACF) and Jimblebar Fines (JMBF) - is kept steady at 60.5% Fe and 60.3% Fe, respectively.

Minor revisions in silica, phosphorus, and alumina levels will also take effect across the two medium-grade brands from August.

The revised specifications for MACF would reflect 60.5% Fe, 2.45% Alumina, 4.85% Silica, and 0.08% Phosphorous, while JMBF would reflect 60.3% Fe, 3.5% Alumina, 4.9% Silica, and 0.125% Phosphorous from August.

Newman degradations to shift buying preferences

Market participants focused on the renewed specifications largely centered on NHGF, noting the product had recently commanded premiums over Pilbara Blend Fines at Chinese ports due to recent better quality.

"Previously, NHGF cargoes were fetching high Fe content levels after the imposed curbs on JMBF and NHGF were lifted, sometimes 61.5% Fe and above, as it was previously blended," said a Northern Chinese trader source. The source added such observations were expected to be short-lived given the prior specification drop.

Meanwhile, one Chinese trader is expecting the spread between NHGF and MACF, on an index-linked basis, to further widen to 50 cents-$1/dmt, with NHGF to weaken out against MACF.

"Last year, when its specifications dropped, most mills that used NHGF had already started seeking alternatives for it, mainly with MACF," said a Northern Chinese trader source. "The dip in quality for NHGF is quite significant this time round too, which may see more reliance on MACF and PBF moving forward," added the source.

"The revision to specifications for BHP products will be similar to when PBF specifications were updated, where product specifications slowly deteriorate," an East China-based steel mill source said. "Newman fines would do worse on the market now, but MACF is expected to trade stronger in the near term."

Despite its sinter fines products observing some revision to specifications, BHP's Newman lump product (NBL) saw limited updates to only its silica specifications, with the brand carrying 62% Fe, 1.6% alumina and 4.2% silica.

Similarly, the NBL cargoes with a loadport laycan starting on or after Aug. 1 and sold on an arrival-month basis starting in August would reflect the updated typical specifications, BHP said.