China succeeds in adding renminbi pricing to BHP iron ore contracts

Published Wed, Apr 29, 2026 · 10:29 PM

[LONDON/SINGAPORE] China has struck a deal with Australian mining giant BHP Group to price more of its iron ore in renminbi.

This is a big step forward in the country’s drive for greater influence over how it pays for commodities.

BHP’s agreement on long-term contracts made with state-backed iron ore buyer, China Mineral Resources Group (CMRG), gave more weight to domestic benchmarks priced in renminbi, said sources.

It comes at the expense of US dollar-based indices that have long underpinned the US$190 billion market. 

For global miners, it underscores a new reality: Securing access to their biggest customer will probably mean conceding ground on how prices are set.

BHP confirmed last week it had resolved negotiations with CMRG after a stand-off that lasted months.

The agreement secured BHP’s ability to supply iron ore to Chinese steel mills represented by CMRG till June 2027, said sources, who asked not to be identified discussing sensitive matters.

It also introduced a more complex deal structure.

For example, Jimblebar Blend Fines – a product banned by CMRG during the dispute – will now be priced off a basket of four benchmarks, including two renminbi-denominated indices that reflect the cost of iron ore at Chinese ports, the sources added.

CMRG also won bigger discounts for imported ore, they noted.

BHP declined to confirm the details of the agreement. CMRG did not immediately respond to a request for comment.

Using multiple benchmarks is not new, and miners already conduct some spot trades in renminbi for ore that has landed in China.

But including renminbi-based indices to price long-term contracts, which account for the bulk of sales, will make costs more predictable for steel mills.

It will also help establish Chinese economic conditions and the onshore iron ore market as bigger factors in setting prices. Ultimately, it serves the government’s longstanding policy of chipping away at the US dollar’s dominance in international trade.

CMRG has been increasingly vocal in its criticism of what it views as an irrational pricing system that relies on overseas benchmarks, the most established of which is run by S&P Global Commodity Insights or Platts.

Instead, it has promoted domestic alternatives, including prices from data provider Mysteel and the newly launched index from Beijing Iron Ore Trading Center, or Corex, both of which have been added to the Jimblebar basket.

BHP’s rivals may now find themselves under pressure to adopt the new model.

Rio Tinto Group is still in the middle of negotiations. Australia’s Fortescue is expected to finalise its long-term settlement with CMRG in the coming months.

Both have previously agreed to adjust the pricing on some products away from Platts, suggesting that CMRG’s position in negotiations is only strengthening.

Brazil’s Vale indicated in 2025 that it was only talking to CMRG about iron ore volumes rather than how the deals should be structured. BLOOMBERG