{"id":628149,"date":"2026-04-24T15:59:32","date_gmt":"2026-04-24T15:59:32","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/628149\/"},"modified":"2026-04-24T15:59:32","modified_gmt":"2026-04-24T15:59:32","slug":"will-chinas-deal-with-australian-mining-giant-bhp-boost-yuan-internationalisation","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/628149\/","title":{"rendered":"Will China\u2019s deal with Australian mining giant BHP boost yuan internationalisation?"},"content":{"rendered":"

Australian mining giant BHP\u2019s decision to adopt a yuan-denominated index for a major Chinese buyer poses a challenge to the US dollar\u2019s long-standing dominance<\/a> in iron ore pricing, delivering a hard-won victory for Beijing, analysts said.<\/p>\n

But while the agreement marked a breakthrough in Beijing\u2019s push to gain greater commodity pricing power at a time when the United States faces growing \u201cgeopolitical isolation\u201d, analysts stressed that its broader efforts to reshape the old order remained far from complete.<\/p>\n

\u201cThe agreement marks the first time China\u2019s own market trading data has been incorporated into the iron ore pricing formula, representing a paradigm shift in pricing benchmarks,\u201d said Xu Yidan, a ferrous metals analyst at GF Futures.<\/p>\n

\u201cIt changes the rules of the trade and strengthens China\u2019s pricing influence in the iron ore market.\u201d<\/p>\n

Beijing has pushed the yuan\u2019s internationalisation over the past decade, a campaign now gaining momentum amid growing concerns over Washington\u2019s \u201cweaponisation\u201d<\/a> of the US dollar and widening geopolitical fault lines. A currency\u2019s global status is typically judged across several metrics, including its role in commodity pricing.<\/p>\n

According to BHP\u2019s latest operational review, released on Wednesday, the company had \u201cconcluded iron ore sales contract negotiations with the China Mineral Resources Group (CMRG)\u201d.<\/p>\n

The deal ends a months-long stand-off<\/a> that began in September when CMRG \u2013 the state-backed agency set up to centralise iron ore purchases \u2013 reportedly banned purchases of Jimblebar fines, a medium-grade iron ore, from BHP.Once one major player accepts it for their flagship product, the commercial (and political) pressure on Rio, Vale and Fortescue gets a lot harder to ignoreAlicia Garcia-Herrero, Natixis<\/p>\n

Industry insiders familiar with the matter confirmed to the South China Morning Post that CMRG had successfully negotiated yuan-linked pricing for BHP\u2019s Jimblebar fines under a new long-term contract.<\/p>\n","protected":false},"excerpt":{"rendered":"Australian mining giant BHP\u2019s decision to adopt a yuan-denominated index for a major Chinese buyer poses a challenge…\n","protected":false},"author":2,"featured_media":628150,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,6851,3686,6266,99,512,116639,304492,164,304490,304491,304493,304495,109489,304494,188313,5300],"class_list":["post-628149","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-bank-of-china","tag-beijing","tag-bhp","tag-business","tag-china","tag-china-mineral-resources-group","tag-corex","tag-economy","tag-fortescue-metals","tag-gf-futures","tag-jimblebar-fines","tag-mysteel","tag-natixis","tag-platts-iron-ore-index","tag-rio","tag-us-dollar"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/628149","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=628149"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/628149\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/628150"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=628149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=628149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=628149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}