MELBOURNE, January 27, 2026, 17:03 AEDT — The market has closed.
- BHP shares ended the day 2.73% higher, closing at A$49.75 after briefly hitting A$50.08 during the session
- During Tuesday’s session, the miner surpassed Commonwealth Bank in market value
- Investors are focused on China’s iron ore contract talks and BHP’s half-year results set for Feb. 17
BHP Group Ltd (ASX:BHP) shares rose Tuesday, overtaking Commonwealth Bank in market value as a broad rally in resources lifted major stocks.
BHP plays a crucial role in the Australian market and serves as a bellwether for China-exposed commodities, particularly iron ore. Following Monday’s market holiday, miners saw renewed positioning when trading resumed on Tuesday. (Australian Securities Exchange)
BHP closed 2.73% higher at A$49.75, having touched a peak of A$50.08 during the session. The shares swung between A$49.55 and A$50.08 on roughly 7.2 million traded, per Investing data.
MarketIndex reported that BHP has overtaken CBA in market capitalisation for the first time since September 2024. According to their latest figures, BHP has gained roughly 9% year to date, while CBA has fallen 6.7%. (Market Index)
The rally unfolded amid tense iron ore talks. BHP has dispatched Jimblebar Blend Fines—a medium-grade iron ore—to Malaysia and Vietnam after China’s state-backed buyer blocked domestic mills from purchasing that grade during a contract deadlock, Reuters reported. BHP told Reuters it remains in talks and is “optimising distribution channels,” the report added. (Reuters)
“Fines” refers to the smaller-sized iron ore used in steel production. For BHP, the key issue is if this detour will turn into a regular practice or remain a temporary fix while pricing and contract details are hammered out.
Morningstar’s Jon Mills noted Monday that BHP’s main iron ore and copper units are holding up, despite concerns about project costs. He downplayed Jansen, BHP’s potash project in Canada, calling it “minor in the scheme of things.” (Morningstar)
The trade can shift quickly. If iron ore stays discounted for long or China ramps up its centralised buying efforts again, realised prices will take a hit, potentially weighing on sentiment heading into earnings.
Macro uncertainty is picking up. Trade tensions and geopolitical risks have boosted appetite for safe havens, and that pressure often trickles down to commodity-linked stocks. “It’s hard not to have an appeal to safe haven assets,” KCM Trade chief market analyst Tim Waterer told Reuters. (Reuters)
With the market closed, focus turns to whether the resources rally can sustain itself when trading resumes Wednesday. Eyes also on BHP’s half-year results due Feb. 17, where investors hope for more clarity on pricing, volumes, and the status of China contract talks. (BHP)
