Chinese steelmakers cheered the collapse of BHP's bid, which would increase their leverage in upcoming benchmark ore talks.

Mr Shan Shanghua secretary general of China Iron & Steel Association told China Business News that “We are pleased to hear the news, which has stopped the combination of world's top two iron ore miners. As a result, Chinese steel mills are able to diversify raw materials sourcing.”

However, senior officials of Hebei Iron & Steel and Shougang said BHP's withdrawal of its hostile bid may not have substantial impact on Chinese mills. "The annual contract ore prices are primarily determined by demand and the negotiation system."