Wedoany.com Report-Oct. 10, The pricing dispute between BHP Group and China’s state-owned iron ore buyer, China Mineral Resources Group (CMRG), is expected to continue into early 2026, according to sources familiar with the matter. Negotiations have stalled, raising concerns about the potential impact on one of BHP’s key trading relationships.

China is the largest global consumer of iron ore and relies heavily on BHP.

Despite the ongoing disagreement, BHP has experienced minimal disruption to its shipments to China, having already delivered most of its iron ore allocations for November and December. After CMRG requested a halt to purchases at the end of last month, BHP offered approximately 50 cargoes to international traders and at least one Chinese company. The full effects of CMRG’s restrictions may become clearer when BHP begins selling ore for January delivery, allowing the company some flexibility during negotiations.

Marina Zhang, a researcher at the Australia-China Relations Institute at the University of Technology Sydney, commented: “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 remains the largest global consumer of iron ore and depends heavily on BHP, one of the three major suppliers to Chinese steelmakers. Last week, CMRG reportedly instructed major steelmakers and traders to halt purchases of all new dollar-denominated seaborne cargoes from BHP. This action reflects a more assertive approach in the negotiations.

Established three years ago, CMRG aims to strengthen China’s bargaining power with major suppliers, including BHP, Rio Tinto Group, and Vale, to secure long-term contracts. While CMRG does not formally control the operations of individual mills or traders, its recommendations carry significant weight due to its political influence within China.

BHP, for its part, is navigating the situation while maintaining its commitments to international customers. The company’s strategic offer of cargoes to non-CMRG buyers demonstrates its efforts to manage supply continuity despite the dispute. Analysts note that the current pause may serve as a buffer, giving BHP time to negotiate terms and plan deliveries for early 2026.

Separately, BHP recently reached a settlement agreement to resolve the Australian Samarco shareholder class action. The settlement is pending approval by the Federal Court of Australia.

The ongoing pricing dispute underscores the complexity of global iron ore markets, where supply dynamics, long-term contracts, and geopolitical considerations intersect. Both BHP and CMRG are closely watching market developments, with steelmakers and traders in China monitoring the outcome for its potential impact on pricing and supply stability. The resolution of this negotiation will likely influence contract frameworks, pricing mechanisms, and trading patterns in the iron ore market throughout 2026.