
The pricing dispute between BHP Group and China’s state-run iron ore buyer, China Mineral Resources Group (CMRG), may extend into early 2026, reported Bloomberg, citing sources with knowledge of the matter.
Negotiations between the two parties have stalled, leading to concerns about the impact on one of BHP’s key trading relationships.
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Despite the ongoing dispute, BHP has faced minimal disruption to its shipments to China as the company has already fulfilled most of its iron ore allocation for November and December.
Following CMRG’s order to halt purchases at the end of last month, BHP offered approximately 50 cargoes to international traders and at least one Chinese company.
The true effects of CMRG’s restrictions on BHP’s cargoes may not be evident until the company begins selling ore for January delivery next month.
This time frame may provide the Australian mining company with some flexibility during negotiations, the sources told the media outlet.

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By GlobalDataUniversity of Technology Sydney’s Australia-China Relations Institute researcher Marina Zhang was quoted as saying: “China wants to assert control over pricing after years of frustration at being the world’s biggest buyer, but still having little say over the price. It is also a signal to the rest of the world that China intends to play by new rules.”
China, the largest global consumer of iron ore, relies heavily on BHP, one of three major suppliers to the country’s steelmakers.
Last week, CMRG was reported to have asked major steelmakers and traders to halt purchases of all new dollar-denominated seaborne cargoes from BHP. This move reflects a more aggressive approach to negotiations.
Established three years ago, the state-run iron ore buyer aims to enhance China’s bargaining power with BHP, Rio Tinto Group and Vale to secure long-term contracts.
Although CMRG does not have formal control over the operations of individual mills or traders, its suggestions hold weight based on its political influence.
Last month, BHP reached a settlement agreement to resolve the Australian Samarco shareholder class action, which is pending approval by the Federal Court of Australia.