Iron ore talks between BHP and CMRG could extend into 2026

A pricing dispute between BHP Group and China’s state-run iron ore buyer, China Mineral Resources Group (CMRG), could extend into early 2026, reports said. Bloombergciting sources familiar with the matter.

Negotiations between the two parties have stalled, leading to concerns about the impact on one of BHP’s key commercial relationships.

Despite the ongoing dispute, BHP has faced minimal disruption to its shipments to China as the company has already met most of its iron ore allocations for November and December.

Following CMRG’s order to halt purchases at the end of last month, BHP offered nearly 50 shipments to international traders and at least one Chinese company.

The true impacts of CMRG’s restrictions on BHP shipments may not be clear until the company starts selling crude for delivery in January next month.

This time frame may provide the Australian mining company with some flexibility during negotiations, sources told the media.

Marina Zhang, a researcher at the Institute of Australia-China Relations at the University of Technology Sydney, was quoted as saying: “China wants to assert its control over prices after years of frustration at being the world’s largest buyer, but still has little say over price. It is also a signal to the rest of the world that China intends to play by new rules.”

China, the world’s largest consumer of iron ore, relies heavily on BHP, one of three major suppliers to the country’s steelmakers.

Last week, CMRG reportedly asked major steelmakers and traders to stop purchasing all new dollar-denominated marine cargoes from BHP. The move reflects a more aggressive approach to negotiations.

The state-run iron ore purchasing company was established three years ago and aims to bolster China’s negotiating power with BHP, Rio Tinto Group and Vale to secure long-term contracts.

Although the CMRG has no formal control over the operations of individual mills or traders, its suggestions carry weight based on its political influence.

Last month, BHP reached… Settlement agreement To resolve the Australian Samarco shareholder class action, which is awaiting approval by the Federal Court of Australia.

“BHP-CMRG Iron Ore Talks to 2026” was originally created and published by Mining technologywhich is a trademark of GlobalData.

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