Sydney, Jan 16, 2026, 16:48 AEDT — Market closed
- BHP slipped roughly 1.1% following a 2.6% gain the previous session
- Rio Tinto and BHP are teaming up in the Pilbara, targeting as much as 200 million tonnes of iron ore
- Attention shifts to BHP’s operational review on Jan. 20, followed by half-year earnings on Feb. 17
BHP Group Ltd’s shares slipped on Friday, reversing some of Thursday’s gains. The stock closed around 1.1% lower at A$48.85, after having climbed 2.6% the previous day. 1
The market dipped as fresh supply-side news in iron ore — still the sector’s cash cow — hit. Rio Tinto announced a partnership with BHP to develop adjacent Pilbara deposits, aiming to extract up to 200 million metric tons. The plan includes processing ore from BHP’s Yandi site at Rio Tinto’s facilities. “Together we will extend the life of these operations,” said Rio Tinto iron ore chief executive Matthew Holcz. 2
Iron ore prices remained volatile. China’s top-traded May contract closed Thursday down 1.03%, settling at 813 yuan per metric ton. Meanwhile, the February benchmark in Singapore hovered near $107 a ton. The dip follows data showing weaker “hot metal” production, a key indicator of blast-furnace activity and iron ore demand. 3
China’s trade figures highlight the ongoing tug of war. Customs data revealed December iron ore imports hit a record 119.65 million tons, pushing 2025 total imports to 1.26 billion tons, despite the drag from the property slump on steel demand. “Shipments to China are expected to increase … piling pressure on prices,” said Bai Xin, an analyst at Horizon Insights. 4
Australian shares ended the week higher despite the late slowdown in materials. The S&P/ASX 200 gained 0.48% on Friday, closing at 8,903.9, and posted its strongest weekly advance since November, climbing 2.1%. 5
Talk of a mining deal has crept back onto the radar. Analysts and lawyers warn a potential Rio Tinto-Glencore merger would draw sharp scrutiny from Chinese regulators, concerned about market dominance in copper and iron ore. “China will see this as an opportunity to squeeze out assets,” said Barrenjoey analyst Glyn Lawcock. 6
Support from Pilbara cooperation headlines can vanish quickly if iron ore prices drop due to weaker steel demand or new supply pressures. For BHP, changes in realised prices often hit cash flow forecasts immediately, prompting investors to reassess the dividend calculations.
BHP’s operational review is set for Jan. 20 (Melbourne time), with half-year results due Feb. 17. Investors want to see production and cost updates, plus any changes to guidance that could withstand a potential slowdown in China’s demand. 7
