BHP(US:BHP) Sou Hu Cai Jing·2025-10-12 23:42Core Viewpoint - The news highlights that BHP, an Australian mining company, has begun accepting partial iron ore payments in RMB from Chinese customers, indicating a shift in the settlement currency and negotiation dynamics between buyers and sellers [1][3]. Group 1: Market Dynamics - China has been the world's largest iron ore buyer for over a decade, importing more than 1 billion tons annually, primarily using USD for transactions, which has limited its negotiating power [3][5]. - The Australian Bureau of Statistics reported that iron ore exports to China exceeded 100 billion AUD in 2023, indicating the significant financial stakes for Australian miners like BHP and Rio Tinto [3][5]. - The recent rumors of China pausing Australian ore purchases lack official confirmation, and fluctuations in spot prices and freight rates are common in the market [5][9]. Group 2: Currency Settlement Changes - The shift to RMB settlement is seen as a strategic move to reduce currency exchange risks and enhance negotiation leverage for Chinese buyers [3][11]. - Brazilian mining company Vale has also attempted RMB transactions, and projects in Guinea are underway to diversify supply sources, potentially reducing reliance on Australian iron ore [7][9]. - The flexibility in pricing, including dual-currency quotes from Russian exporters, reflects a broader trend towards diversifying payment methods in the commodities market [9][13]. Group 3: Future Implications - The transition to partial RMB settlements is expected to be gradual, with USD remaining a significant currency in the market for the foreseeable future [11][15]. - For Australian miners, while immediate impacts may not be severe, profit margins could be pressured, leading to softer negotiations [11][13]. - The broader energy sector is also exploring increased RMB settlements, indicating a potential shift in global trade dynamics [13][15].