BHP(US:BHP) Sou Hu Cai Jing·2025-10-07 17:12Group 1 - BHP's recent decision to increase the long-term contract price for iron ore by 15% to $109.5 per ton for 2025, despite a current market price drop to around $80 per ton, is seen as counter to market trends [1] - This price adjustment will result in an additional cost of nearly $20 billion for domestic steel companies in China, raising concerns among industry stakeholders [3] - The shift in pricing strategy has led to a call from China Minmetals Group for domestic buyers to suspend purchases of BHP's dollar-denominated shipments, which could significantly impact BHP's sales in China, accounting for 9.7% of China's iron ore imports [5] Group 2 - The proportion of iron ore transactions settled in RMB has increased from less than 5% in 2022 to 18% in 2025, with competitors like Rio Tinto adapting to this trend, while BHP remains firm on dollar settlements [3] - Industry observers suggest that BHP's rigid stance may push customers towards other miners, indicating a potential loss of market share if the company does not adapt to changing market dynamics [3][5] - The current iron ore market is characterized by increased competition, and there is a growing sentiment that respecting market prices and adapting to settlement trends is essential for long-term success [5]