BHP Continues Discounted Iron Ore Sales to China Amid Trade Curbs

BHP continues to sell iron ore shipments to Chinese buyers despite ongoing tensions and official guidance from China to limit such deals during contract negotiations. These shipments, including those paid in US dollars, are often discounted below benchmark prices and involve both state-run and private Chinese entities. While China’s state-backed China Mineral Resources Group urges postponement of new dollar-denominated contracts, BHP presses ahead, highlighting the resilience of iron ore demand and the strength of supply chains. Negotiations between BHP and Chinese state buyers remain unresolved but ongoing, reflecting the complex interplay of commercial interests and political pressures. Concurrently, BHP is initiating a partial shift to settle about 30% of its iron ore trades in Chinese yuan starting in late 2025, aligning with China’s broader push to increase yuan usage in commodity transactions while maintaining the majority of trades in US dollars. This evolving trade landscape underscores the intersection of market dynamics, currency preferences, and geopolitical considerations in the global iron ore market.