ASX falls as war uncertainty lingers; BHP gains on China breakthrough, Cochlear plummets
BHP rose 1.3% after settling a nine-month pricing dispute with China’s state-backed buyer, while the ASX fell 0.7% as Middle East tensions curbed risk appetite.
- On Wednesday, BHP finalized a supply contract with the China Mineral Resources Group, ending a disruptive nine-month standoff over iron ore pricing and commercial terms.
- China initiated the pricing battle nine months ago by banning BHP's Jimblebar Fines, seeking greater control over iron ore costs as steelmakers faced margin pressure.
- The dispute involved Australia's $93 billion annual iron ore export trade with China, though BHP did not disclose contract terms, leaving potential for future disagreements.
- While the broader ASX fell 0.7 per cent amid Middle East war jitters, BHP shares climbed 1.3 per cent following the resolution.
- President Donald Trump extended a ceasefire indefinitely as peace talks between the United States and Iran failed, leaving geopolitical uncertainty weighing on markets.
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11 Articles
BHP has won the battle, but China’s $93b iron ore flex will continue
The stakes were huge in the brutal nine-month iron ore pricing stand-off between China and our largest miner - for the company, the industry and the Australian economy.
BHP Concludes Months of Talks With China’s Iron Ore Buyer
BHP Group has struck a supply deal with China’s state-backed iron ore buyer, ending a months-long standoff between a vital consumer and the world’s largest miner that has roiled markets and hampered steel mills’ access to key products.
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