A price dispute between mining giant BHP and China’s state-run iron ore buyer risks dragging on for months, and even into early 2026, as both sides remain locked in stalemate.
So far, the world’s largest miner has seen minimal disruption in its shipments to China, largely because the company has already sold most of its allocation of iron ore for November and December, according to people familiar with the matter.
China is the world’s largest consumer of iron ore, while BHP is one of three major suppliers that provide the bulk of the material to the country’s steelmakers.
The BHP-China iron ore standoff could drag into 2026 as talks stall.
Bloomberg News reported last week that CMRG had asked major domestic buyers, including steel mills and state-owned trading houses, to suspend purchases of any new US-dollar-denominated seaborne cargoes from BHP.
The move escalated an earlier suspension of Jimblebar blend fines (fine-grained ore used in steelmaking) and marked a tougher stance from CMRG in its push for more leverage in talks. The state-run company, established three years ago to bolster China’s position in talks with BHP, Rio Tinto and Brazil’s Vale, has been pushing to sign long-term contracts on behalf of the country’s main steel mills, according to the people. This would help Beijing to negotiate discounts and other preferential measures.
Bloomberg
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