China’s state-backed iron ore trader has told steel mills it’s temporarily lifting restrictions on one of BHP Group’s grades after concerns over expanding bans sent prices surging this week. The move comes as steel producers rushed to secure supplies amid fears of a broader crackdown on the Australian mining giant. Market volatility spiked when rumors of expanded restrictions against BHP Group triggered panic buying among Chinese steel mills.

BHP Group, one of the world’s largest iron ore producers, had been facing mounting pressure from Beijing over trade tensions and environmental concerns. The temporary easing suggests Chinese authorities are balancing political pressures with the practical need to maintain steel production levels. Steel mills rely heavily on high-quality iron ore imports to meet manufacturing demands.

The decision to relax restrictions on specific BHP grades indicates a targeted approach rather than a complete reversal of policy. This development could help stabilize iron ore markets that have been rattled by uncertainty. However, the temporary nature of the easing means steel producers remain cautious about long-term supply security.