BHP shares near 52-week high, but China just made things more complicated

BHP Group Ltd (ASX: BHP) shares finished higher on Wednesday as investors weighed up fresh comments about China’s growing influence over iron ore pricing.

The mining giant ended the session up 1.54% to $61.28.

It has been a huge year already for shareholders. BHP shares are now up around 35% in 2026 and 59% over the past 12 months.

The stock is also trading close to the top of its 52-week range, which runs from $35.52 to $62.72.

So, what has put the ASX mining heavyweight back in focus?

China talks are getting tougher

According to The Australian, BHP’s WA iron ore boss, Tim Day, expects talks with China’s state-backed China Mineral Resources Group (CMRG) to get harder.

CMRG was created by Beijing to give Chinese steel mills more weight when negotiating iron ore deals.

That puts it in a strong position with Australian miners, given China is still the world’s biggest buyer of iron ore.

The report said Mr Day believes China now has more ability to push prices lower and secure better terms. He also said BHP had found the recent talks with CMRG difficult.

Chinese media said CMRG secured a 1.8% discount on iron ore from BHP. The same reports said the group also pushed the miner away from a previous index used to set prices.

Why buyers are still backing the rally

The tougher China backdrop hasn’t been enough to stop investors buying.

BHP’s share price reaction suggests the market is still more focused on the company’s scale, earnings power, and exposure to major commodities.

There may also be some relief that the earlier tensions have cooled between BHP and the Asian superpower.

Last year, there were concerns about China’s approach to BHP cargoes and how far the standoff could go. The latest comments suggest the talks are still difficult, but they are moving through the usual commercial channels.

The cost pressure isn’t going away

Mr Day said BHP is focused on what it can control, including keeping production costs down and improving productivity at its Western Australian operations.

The Pilbara remains one of the world’s most important iron ore regions, but it isn’t getting cheaper to operate there.

Miners are dealing with higher costs, union pressure, and ongoing demands to invest in lower-emissions equipment.

The Australian also reported that BlackRock portfolio manager Olivia Markham said Australia had lost some focus on productivity and that other places around the world were cheaper to operate.

That is the balance investors are now weighing.

BHP shares have had a massive run, and the market is still backing the stock. But the company is also facing tougher customers, a higher-cost operating base, and pressure to keep its Pilbara assets competitive.

The post BHP shares near 52-week high, but China just made things more complicated appeared first on The Motley Fool Australia.

More reading

• How do ASX dividend shares compare to savings deposit rates today?
• Why is everyone talking about BHP shares this week?
• Is now a good time to buy and hold BHP shares?
• Why a weak US dollar could be the best thing that happens to ASX resource stocks in 2026
• Invested $10,000 in Rio Tinto, Fortescue or BHP shares 5 years ago? Guess which one has gained the most

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.