On April 14 2026, Chinese authorities announced that local steel mills could again bid for BHP iron‑ore cargoes denominated in U.S. dollars, lifting a restriction that had been in place since September 2025.
The restriction had been part of a broader dispute in which China’s state‑backed buyer, China Mineral Resources Group, tightened curbs on BHP products, banning specific grades such as Jimblebar, Jinbao, and Newman fines. The lift allows BHP to resume dollar‑denominated bids, potentially increasing sales volume and pricing flexibility in its largest market.
China accounts for roughly 75‑85% of BHP’s Pilbara iron‑ore shipments. The removal of the restriction is expected to help BHP regain market share lost to competitors like Rio Tinto during the ban and to improve revenue outlook by restoring access to a key customer.
Analysts view the development as a positive signal for BHP’s revenue outlook. The resolution of the dispute reduces market‑access risk and may support the company’s guidance for the remainder of the fiscal year.
The move is part of China’s strategy to increase bargaining power and promote yuan settlement in commodity trade. While the restriction was lifted for dollar‑denominated bids, China continues to encourage yuan settlement, reflecting a broader shift toward de‑dollarization in global commodity markets.
For the Australian iron‑ore sector, the decision is a welcome development that could boost exports and support the economy, as iron ore accounts for nearly 60% of Australia’s exports to China.
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