Global mining companies confident in Chinese ore demand

Signs of recovery in China’s real estate sector could have a positive impact on the outlook for demand for BHP’s products. This was stated by Mike Henry, CEO of the Australian mining company BHP, SteelRadar reports.

After Beijing announced a stimulus package in September to revive the economy, the construction sector in China, according to BHP’s CEO, is seeing green shoots, especially due to its dependence on demand for iron ore and copper.

Mike Henry expressed the opinion that the Chinese economy is beginning to leave behind a difficult period, and consumer confidence is growing again. However, in his opinion, stimulus alone will not be enough, and the economic recovery must be based on strong fundamentals.

At the same time, Rio Tinto Chief Commercial Officer Bold Baatar noted at the Financial Times Commodities Summit in Singapore that demand from China’s steel sector is shifting toward higher quality ore. This is happening amid a drop in overall steel demand from the residential sector, which is being offset by the energy sector and electric vehicles.

The relations of global international giants with Chinese companies are now going beyond the simple supply of raw materials, and partnerships of a different level are being established, in particular through joint projects.

As GMK Center reported earlier, iron ore imports to China in October 2024 decreased by 0.2% m/m and increased by 4.5% y/y – to 103.84 million tons. Over 10 months, the figure reached 1.023 billion tons, up 4.9% y/y. Last month, demand for this raw material improved amid rising pig iron production due to a sharp improvement in steelmakers’ margins.