BHP and Rio Tinto see growth potential in India and ASEAN

In this way, companies are preparing to offset the stagnation in the steel market in China

Mining companies BHP Group and Rio Tinto are increasingly viewing India as the next major driver of growth in global steel production, according to Bloomberg.

The agency notes that the world’s largest iron ore suppliers are thus preparing for a future beyond China.

Senior executives from both companies stated at an industry event in Singapore that rising demand and the addition of new capacity in India could help offset the slowdown in growth in China, which has dominated global steel markets for over two decades.

New Delhi has set a target of 500 million tonnes of steel production by 2047 (in 2025, output stood at 165 million tonnes). However, this is still significantly less than the 961 million tonnes produced by Chinese steelmakers last year.

Although per capita steel consumption in India remains significantly lower than in China, rapid urbanisation and government spending on infrastructure are expected to drive demand growth in the long term, creating opportunities for global mining companies to supply iron ore and coking coal.

“We are only at the beginning of India’s growth,” said Michiel Goovers, BHP Group’s Director of Sales and Marketing.

He added that the group is well-positioned to support this expansion.

Rio Tinto’s Chief Commercial Officer, Bold Baatar, noted that over the next decade, the iron ore market can expect significant growth in demand from countries in the Global South, particularly India and ASEAN. In his view, this will help offset stagnating demand from China.

Baatar added that the global market will need around 950 million tonnes of new iron ore production capacity, not only to meet this new demand but also to counteract the depletion of existing mines.

It is worth noting that steel production in India in the 2026/2027 financial year (ending in April 2027) could rise by 8 per cent year-on-year. Domestic steel consumption in the country is expected to accelerate to 9 per cent year-on-year over the same period.