BUSINESS

BHP Shifts to Yuan-Based Pricing in Deal With China State Buyer

Published: Apr. 22, 2026 11:40 p.m. GMT+8

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A BHP mine in the Pilbara region of Western Australia. Photo: BHP

BHP Group has agreed to use a yuan-denominated spot index to price part of its iron ore sales to China’s state-backed centralized buyer, marking a shift that could reshape global commodity pricing.

The supply contract with China Mineral Resources Group (CMRG) advances Beijing’s push to strengthen its pricing power over key raw materials and challenges the dominance of U.S. dollar-based Western benchmarks.

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BHP agreed mid-April to price 51% of Jimblebar fines sales to CMRG using yuan-denominated Beijing index (converted to USD), dropping Platts with 1.8% discount.
First Big Four miner (BHP, Vale, Rio Tinto, Fortescue) to adopt Beijing index in long-term contract; BHP's 263M tons FY2025 output, >60% revenue from China.
Beijing index launched Sept 2025 for port trades; China imported >80% iron ore, spent $123B in 2025.

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Who’s Who

BHP Group: BHP Group agreed to price part of its iron ore sales to China's CMRG using a yuan-denominated Beijing spot index (51% for Jimblebar fines, converted to USD), dropping the Platts index and offering a 1.8% discount. First "Big Four" miner to adopt it long-term. Produced 263M tons in FY2025, >60% revenue from China.

China Mineral Resources Group: China Mineral Resources Group (CMRG), or 中国矿产资源集团, is China's state-backed centralized buyer for iron ore. It handles bulk procurement for the country, which imports over 80% of its iron ore and spent $123 billion on it in 2025. BHP signed a new annual contract with CMRG using yuan-denominated spot indexes.

Vale: Vale is one of the "Big Four" global miners, alongside BHP, Rio Tinto, and Fortescue. BHP is the first among them to adopt the yuan-denominated Beijing Iron Ore Port Spot Price Index in a long-term iron ore contract with China's CMRG.

Rio Tinto: Rio Tinto, one of the "Big Four" global miners alongside BHP, Vale, and Fortescue, has reduced its reliance on the Platts index in recent contract renewals, mirroring BHP's shift toward alternative benchmarks.

Fortescue: Fortescue is one of the "Big Four" global miners (with BHP, Vale, Rio Tinto). It has reduced reliance on the Platts index in recent contract renewals, but has not yet adopted the Beijing index in long-term contracts like BHP.

Mysteel: Mysteel is a major Chinese spot index for iron ore pricing. It publishes U.S. dollar-based indexes used in 49% of BHP's Jimblebar fines pricing to CMRG. Historically, it ranks among the four dominant indexes alongside Platts, Argus, and Fastmarkets.

Argus: Argus is a European-based publisher of U.S. dollar-denominated iron ore spot indexes. It is one of four major historical benchmarks (with Platts, Fastmarkets, Mysteel). In BHP's new contract, 49% of Jimblebar fines pricing tracks Argus and Mysteel indexes.

S&P Global: S&P Global’s Platts index is the industry-standard benchmark historically dominating iron ore pricing, one of four major spot indexes (with Argus, Fastmarkets, Mysteel). BHP drops it entirely for CMRG shipments, using yuan-denominated Beijing index (51%) and Mysteel/Argus (49%). Chinese steelmakers criticize Platts for speculation vulnerability; peers like Rio Tinto/Fortescue reduced reliance.

Fastmarkets: Fastmarkets is one of four major historical spot indexes dominating the iron ore market, alongside S&P Global’s Platts, Europe’s Argus, and China’s Mysteel. It is grouped as a European benchmark.

Aluminum Corporation of China: BHP executives met Aluminum Corporation of China Chairman Duan Xiangdong during their April visit to China to mend ties with key state-owned customers.

China Baowu Steel Group: China Baowu Steel Group is a key state-owned customer of BHP. Its Chairman Hu Wangming met with BHP CEO Mike Henry and incoming CEO Brandon Crai during their April visit to China to mend ties.

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