BHP Resumes China Iron Ore Sales: Report - BHP Group (NYSE:BHP)

Core Viewpoint - BHP Group Limited has resumed iron ore sales to China, alleviating concerns about potential restrictions from Beijing on purchases from the leading global producer [1][2]. Group 1: Sales and Market Activity - BHP sold a 170,000-metric-ton shipment to a Chinese trading house, with payment made in U.S. dollars, following reports of several cargoes being offered after China's national holiday [1]. - The Shanghai office of China Mineral Resources Group (CMRG) listed eight BHP cargoes totaling approximately 1.14 million tons for sale to domestic steelmakers, indicating ongoing trade activity despite previous tensions [3]. Group 2: Political and Economic Context - There were reports that a state-run buyer in China instructed steel mills to halt purchases of BHP iron ore to pressure prices down, raising concerns about potential economic shocks [2]. - The situation has drawn political unease in Australia, reminiscent of China's past restrictions on coal and other commodities in 2020 [4]. Group 3: Company Response and Market Reaction - BHP CEO Mike Henry downplayed fears of a Chinese ban during discussions with Australian Treasurer Jim Chalmers, framing the negotiations as standard commercial processes [5]. - BHP Group shares experienced a decline of 1.12%, trading at $55.41 at the time of publication [5].