Recent discussions between BHP and Chinese buyers highlight the routine nature of global iron ore negotiations, with temporary purchase pauses and pricing talks reflecting standard commercial processes rather than disruption.
The situation began after China’s state-backed China Mineral Resources Group (CMRG) asked its steelmakers to temporarily halt certain BHP purchases while pricing terms were discussed.
The talks reportedly included BHP’s request for a price increase and considerations around contract settlement currency, with media noting speculation that yuan-based pricing could be part of future discussions.
However, no formal agreement to settle trades in yuan has been reached.
Speaking at a business event in Perth on Wednesday morning, BHP Australia president Geraldine Slattery said the current negotiations were not out of the ordinary.
“Commercial negotiations are a normal part of that, they happen every year,” Slattery said.
Prime Minister Anthony Albanese echoed this view earlier this month, noting the matter is part of routine deal-making while reinforcing iron ore’s importance to both the Australian economy and China’s steel industry.
RMIT University applied economist Ashton de Silva emphasised that the back-and-forth is part of normal commodity negotiations. “Given that Australia is the largest exporter of iron ore, this represents parties going through the motions of negotiations,” he said.
Despite the temporary pauses, reports indicate minimal disruption to BHP’s supply chain, with real impacts unlikely until January 2026 when new contract deliveries commence. De Silva added that Australian miners remain well-positioned, noting China’s limited alternatives and ongoing reliance on Australian iron ore.
“The current discussions are part of normal market dynamics,” he said. “Companies like BHP and Rio Tinto are managing pricing and supply across multiple commodities, and these negotiations are simply a regular feature of global trade.”
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