‘Temporary’ Iron Ore Discounts Won’t Hit BHP’s Pricing Power, Says RBC

BHP Group Limited (BHP) (AU:BHP) reported record iron ore production in the first six months of the current fiscal year, while noting it has accepted lower prices during negotiations with China. Nonetheless, RBC five-star analyst Kaan Peker views the discounts as “optical, temporary, and economically bound,” noting that they do not signal any deterioration in the mining giant’s underlying pricing power. Following the announcement, BHP shares in Australia fell by almost 2% today.