Russian media: Australia ignores US warnings and bows to China, Beijing wins the iron ore currency war!
On October 18, the Russian newspaper "Izvestia" published an article: "After 20 years of patience, China rewrote the global iron ore pricing system in a few days. BHP Billiton and three other giants control 80% of seaborne supply. Although China consumes 1.6 billion tons of iron ore annually, steel companies' profit margins are less than 1%. The negotiation in 2009 failed due to a leak, and the passive situation has persisted for many years. In 2025, China finally turned the tide: China Minmetals Group consolidated 40% of imports to form a united front, capital is tied to miners, and it also has West Africa's Simandou iron ore as an alternative. Faced with BHP Billiton's price hike threat, China suspended procurement. Nine days later, it agreed to use RMB settlement. The Simandou iron ore mine is about to start production, and China has already seized the initiative. This non-gunfire war marks a breakthrough for the RMB in the field of commodities, and it is also a turning point in the transfer of global resource power."
[Clever] Iron ore RMB settlement, the U.S. is more upset than Australia, marking the collapse of the hegemony myth! BHP Billiton bowed down within 9 days to use RMB settlement. This is not showing weakness to China, but clearly surrendering to market reality. The U.S. warning has become an empty echo, because China has already locked out Australia's exit route with a plan made over 20 years: China Minmetals Group consolidated 40% of import volume to grasp the pricing power, the Simandou iron ore mine is about to be put into operation to break the supply monopoly, and it has made the seller's hegemony a thing of the past. The essence of this currency war is a precise counterattack against the old order of dollar-linked resources. From the 2009 leak that caused the negotiation to collapse, to the current sharp increase in the percentage of iron ore settlement in RMB reaching 25%, China has used three weapons: integration, alternative sources, and financial anchor to tear down the lie that buyers have no pricing power!"
Some comments said that the compromise of Australian mining companies actually announced that the pricing power of resources will eventually return to the largest demander. The dollar hegemony is nothing more than an interchangeable settlement symbol in the face of physical trade. These nine days mark a turning point in the transfer of global resource power, and it is a landmark victory in the wave of de-dollarization!
Original: www.toutiao.com/article/1846276982907911/
Statement: The article represents the views of the author.