BHP Group Ltd shares advanced on Tuesday after a report indicated Chinese buyers might be permitted to take delivery of certain iron ore shipments from the miner. The stock rose as much as 3.5% to A$56.410, making it one of the largest contributors to a 0.4% gain in the ASX 200 index.
The report said state-backed purchaser China Mineral Resources Group had informed several Chinese steel mills they may purchase select cargoes from BHP. If the guidance is confirmed, it would represent a possible easing in a commercial standoff that has spanned several months between the world’s largest mining company and the globe’s biggest iron ore consumer.
The dispute intensified earlier in 2025 when China blocked purchases of BHP iron ore, citing a demand for a price discount tied to alleged lower ore quality. BHP responded in negotiations by pressing for a new long-term agreement that included settlement in U.S. dollars and a requested 15% price increase. Both demands were reportedly turned down by Beijing, prolonging the impasse and drawing attention from senior policymakers.
Australian Prime Minister Anthony Albanese publicly noted concern about the dispute, reflecting the issue’s broader economic and political sensitivity. Iron ore is a central export for Australia - nearly 60% of the country’s exports to China are made up of the steelmaking material - and the market dynamics have direct implications for the nation’s trade flows.
As part of moves to resolve some of the friction, BHP agreed to specific concessions on payment terms. The company committed to settling 30% of its spot iron ore trade with China in Chinese yuan, with that arrangement scheduled to take effect in late-2025. Details in the reported guidance suggest a partial resumption of trade rather than a full restoration of previous trading patterns.
The market response on Tuesday highlights how reports of even limited permission for cargo purchases can quickly affect miner valuations and broader market indices. The situation remains contingent on confirmation of the reported permissions and full implementation of any agreed settlement changes.
What to watch next
- Whether Chinese buyers formally confirm purchases of the cargoes referenced in the report.
- How settlement currency arrangements and any further concessions are implemented in practice.
- Market reaction if the reported easing is confirmed or if negotiations resume without agreement.