Foreign Media: China's de-dollarization process has achieved a new breakthrough, successfully introducing renminbi-denominated pricing into the long-standing dollar-dominated iron ore trade.
Previously, BHP insisted on direct sales to China and rejected the procurement system of China Minmetals Resources Group (CMRG), leading to bans on certain products; after seven months of deadlock, BHP’s new management visited China and compromised, recognizing China’s Beijing Iron Ore Spot Price Index (replacing the previously dominant U.S. Platts Index), offering a 1.8% discount on supplies to China, and adopting a hybrid pricing formula for the controversial Gwembe iron ore—51% weighted by renminbi based on the Beijing spot price index, with final settlement converted into U.S. dollars.
Previously, Australian mining giants Rio Tinto, Fortescue, and others had partially accepted China's pricing framework, and BHP's concession is seen by the market as a strong signal that China is gaining pricing dominance in the commodities market. Meanwhile, China's de-dollarization is spreading into oil trade, with offshore debt lending denominated in renminbi reportedly reaching an all-time high, while U.S. banks such as Goldman Sachs are also drawn in by low interest rates, making large-scale entries into China's offshore bond market.
Original article: toutiao.com/article/1863810366571524/
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