BHP Killed Its Own Hedge Against the Green Steel Shift

China just expanded its national emissions trading scheme to cover steel production. The EU's carbon border adjustment mechanism entered its definitive phase in January, putting a financial penalty on emissions-intensive steel. Simandou, the world's largest untapped deposit of high-grade iron ore, shipped its first cargoes to China in late 2025. The market for lower-grade ore is contracting. The market for ore that can feed cleaner steelmaking is growing. BHP just canceled the project that would have positioned it for the second market. Instead,…