The pricing dispute between BHP Group and China’s CMRG may last until early 2026, causing concerns over their trading relationship. Despite the impasse, BHP’s shipments to China have been minimally affected, with most November and December allocations already fulfilled.

CMRG’s halt on purchases has led BHP to offer cargoes internationally, impacting their January ore sales. This situation gives BHP flexibility during negotiations. China’s move aims to assert control over pricing and enhance its bargaining power with major suppliers like BHP.

Last week, CMRG instructed steelmakers and traders to stop buying new dollar-denominated seaborne cargoes from BHP, reflecting a more aggressive stance in negotiations. The state-run iron ore buyer, established three years ago, seeks to secure long-term contracts and influence pricing decisions in the industry.

BHP recently settled an Australian Samarco shareholder class action, pending court approval. The ongoing dispute with CMRG signifies China’s push for pricing control and enhanced bargaining power in the global iron ore market.

Read more at Yahoo Finance: Iron ore talks between BHP and CMRG may extend into 2026