On September 30, China Minmetals Resources Group issued a notice requiring domestic steel mills to suspend the purchase of iron ore cargo priced in U.S. dollars from BHP. As soon as this news came out, the Australian government was immediately unsettled, with officials making consecutive statements and corporate stock prices also fluctuating.

This move is not just a simple adjustment in procurement; it seems more like a signal sent by China in the field of resource trade - old trading methods may no longer continue.

"Don't talk about dollars": China doesn't want to be the "gullible buyer" anymore

China isn't the first time to take action on the issue of iron ore prices, but this time the approach is particularly clear - no longer using U.S. dollars for settlement. This move is not unexpected.

In recent years, China's steel industry has remained highly dependent on imported iron ore, yet prices have long been determined by foreign parties. When miners quoted high prices, buyers had no choice but to accept them;

With large price fluctuations, companies' profits were squeezed tightly. Over time, "buying a lot but having no say" became a common pain point for Chinese enterprises.

This suspension of dollar settlements may seem like just a change in payment method, but behind it is a rejection of the old ways of controlling the price game. Not refusing the goods, but only refusing to use dollars for pricing, this has put real pressure on Australia.

Because for a long time, international settlements for iron ore have been dominated by the U.S. dollar. This sudden shift by China is equivalent to cutting off Australia's "inertial gains."

Currently, spot transactions priced in RMB are still allowed, meaning that China is not trying to cut off supply, but is giving a clear signal: those who are willing to follow the new rules can continue doing business.

Australian Prime Minister is worried?

This strategy of "if you come, I welcome you, but you have to change your tactics" preserves cooperation space while increasing negotiation leverage.

The pricing model is changing, how far can Australia go with the old road?

Australia's reaction is not hard to understand. Iron ore is one of the country's most valuable export commodities, and its dependence on China has long been a fact. But the problem is that this export relationship has long benefited Australia alone.

Prices are decided by miners, and the settlement method is also set by them. For China, the largest buyer, it has always been "measuring its own account with someone else's ruler."

China has repeatedly tried to push for reform in the price mechanism, such as establishing a centralized procurement platform and promoting RMB settlement, but the results have been limited.

This suspension of dollar settlement is a more direct action. It is no longer a suggestion or a pilot project, but a real change that has been implemented.

The Australian Prime Minister immediately expressed "concern," and the Finance Minister also contacted relevant companies right away, clearly not expecting this development. Because this means that if they continue to stick to the old pricing methods, they may lose China, their largest buyer.

Australian iron ore has good quality and low prices

Meanwhile, China has already been preparing. The Simandou mine project in Guinea has been continuously advancing and is expected to be operational by the end of the year, becoming a stable and high-quality new source in the future.

More countries are also cooperating with China to promote a diversified iron ore import pattern. In other words, China is no longer dependent solely on Australia.

Who is more dependent on whom, the books never lie

From trade figures, Australia is certainly the exporter, but this does not mean it can hold the upper hand. On the contrary, because it is too dependent on the Chinese market, it appears particularly passive in the confrontation. The support of iron ore exports for the Australian economy is too great, and there is no alternative buyer for China in the short term.

Although China is still the main importer of iron ore, its demand structure has changed. Steel production is gradually decreasing under control, the industry's profits are rebounding, and the market is no longer as "urgent" as before.

More importantly, through strengthening resource reserves, promoting the development of domestic mines, and expanding import sources, China's choices are increasing, while Australia's choices are decreasing.

This creates a very obvious situation: China can gradually adjust, but Australia must respond quickly. Once the purchasing method changes, the way of settlement changes, whether Australia can continue to earn that big money from iron ore becomes uncertain.

Soybeans, lithium, copper... the pricing game has just begun

This incident, although focused on iron ore, reflects a larger trend: the old rules of resource trade are being re-examined, especially in the context of increasing global discussions on "de-dollarization."

China suspends purchasing BHP iron ore

Iron ore is just the first step; there are many similar resources, such as soybeans, lithium, and copper, which may also follow the same path.

For example, soybeans, a major agricultural product, China has already started to diversify its procurement channels, with South America, Africa, and Russia becoming new cooperation directions. In the energy and metal sectors, China is also actively promoting settlement in its own currency, reducing reliance on the U.S. dollar.

This is not only for economic interests, but also involves greater financial security issues.

If Australia wants to firmly maintain its dominant position in resource exports, it may need to reconsider its strategies. Continuing to focus only on traditional markets and relying solely on one settlement method will only reduce its own initiative further.

This action by China, although not extreme in intensity, has made its attitude clear enough: resources are not exclusive to anyone, nor are they only traded in one way. A new market order is being gradually established.

This decision to temporarily suspend the purchase of dollar-priced iron ore is not just a simple commercial adjustment, but an active move on the rules. It shows that in the chessboard of global resource trade, China is gradually transforming from a "payer" to a "negotiator."

This game has no clear winner or loser, but whoever can adapt to the new way can continue to move forward. How prices are set and how transactions are settled in the future, China is no longer just a passive recipient, but the one who starts asking the questions.

For Australia, the real challenge is not that China has suspended something, but whether it is ready to face a changed market.

Information source:

China Minmetals Resources Group suspends the purchase of iron ore priced in U.S. dollars on September 30, 2025 - reports from Caixin, First Financial News, Bloomberg, and other financial media; China Minmetals Resources Group has notified domestic downstream enterprises to suspend the purchase of iron ore cargo priced in U.S. dollars from BHP, allowing spot transactions priced in RMB to continue.

Original article: https://www.toutiao.com/article/7557230862569161231/

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