MELBOURNE, April 30, 2026, 06:47 (AEST)
BHP Group’s iron ore settlement with China is now about more than just releasing cargoes stuck at ports. Long-term supply agreements now pull the renminbi further into the mix for some pricing, according to people familiar with the matter who spoke to The Business Times. Specifically, Jimblebar Blend Fines are pegged to a basket of four reference prices—two of which are renminbi-based indices. The report noted BHP wouldn’t confirm specifics, and China Mineral Resources Group didn’t respond to a request for comment.
Now, the shift’s tangible. China Mineral Resources Group (CMRG), the state iron ore buyer, is letting steelmakers purchase and collect BHP cargoes that had been stuck at ports—provided they file reports with CMRG, Reuters said. Jimblebar fines, BHP’s medium-grade ore, had piled up to 8.69 million tons at 15 top Chinese ports by April 22.
The agreement takes some pressure off a supply bottleneck that dragged on for months. But there’s another layer—Beijing now holds more sway in an iron ore market that’s still mostly pegged to the dollar. Simply put, a pricing benchmark is just a reference figure for contracts. Now, with renminbi benchmarks in play, prices at Chinese ports will start factoring more heavily into some BHP sales.
Traders pulled back on iron ore Tuesday, pressure fading as supply worries receded. On the Dalian Commodity Exchange, the September contract dropped 1.33% to 777 yuan a ton. Singapore’s May benchmark edged down 0.82% to $106. Futures hovered just under $107 in Singapore by Wednesday, squeezed between higher fuel and shipping costs and renewed BHP flows.
BHP shares in Australia had dipped to A$54.95, off 0.87%, according to the company’s investor hub as of 06:34 AEST on April 30. Looking ahead, BHP has set its next full-year operational review for July 16, with annual results coming August 18.
Analysts had already viewed the China settlement as a significant turning point. “Quietly de-risks the iron ore earnings base,” eToro market analyst Josh Gilbert told Reuters last week, referring to the end of the CMRG dispute. He also pointed out the China relationship is crucial, since iron ore underpins most of what BHP is developing in other regions. Reuters
RBC analyst Kaan Peker put it plainly: if BHP moved to pricing across several indices, increased RMB trades, or shifted further toward onshore delivery, “that would be a change in strategy,” he told Reuters on April 14, before the latest pricing moves came out. Reuters
BHP headed into the settlement buoyed by solid operational results. Western Australia Iron Ore came in at 69.8 million tons for the March quarter—topping Visible Alpha’s projection of 68.9 million tons. Copper production eased off but still looks set to land in the upper end of the company’s full-year target.
Copper prices got a short-term boost after a court in Argentina’s San Juan province gave the green light to the Vicuña project, operated jointly by BHP and Lundin Mining. That decision followed a judge in neighboring La Rioja who had pressed pause over environmental review issues. The Vicuña venture—split evenly between BHP and Lundin—brings together Filo del Sol and Josemaria, making it one of the planet’s biggest untapped copper, gold, and silver projects. First-phase spending is seen topping $7 billion.
Direct implications land on Fortescue and Rio Tinto—BHP’s main Australian iron ore rivals. According to Bloomberg, as cited by Mining.com, Fortescue is nearing a supply deal with CMRG, still relying on rolling short-term pacts while negotiations play out. The same report noted both Fortescue and Rio Tinto have already pushed out their existing CMRG supply agreements.
BHP faces a trade-off: easier shipments could mean less clout over prices. If Chinese steel appetite cools or port stockpiles push down spot iron ore, the miner might find itself sending more tonnage into a market offering slimmer margins. According to Trading Economics, prices have also come under strain on worries about demand as China works to tackle surplus competition and overcapacity in industry.
So, the books look better for the moment. China’s ports are shipping cargo, Vicuña’s doors remain open, and BHP still has a line to its top iron ore buyer. What’s less clear: exactly what BHP had to concede within the pricing formula.
