Rio Tinto forecasts stable demand for iron ore in China

British-Australian mining concern Rio Tinto expects stable demand for iron ore in China. The company’s CEO Jakob Stauscholm said this at a recent Bank of America conference, Kallanish reports.

In his opinion, despite the uncertainty in the global economy, the Chinese economy is in better shape than a year ago. In particular, the country has been successful in its response to the energy transition, and there are many innovations in the development of electric vehicles.

Stausholm said that the company’s business in China is holding up well amid steady growth, and demand for iron ore in the country was increasing in the first quarter of this year.

He also noted the stable demand for iron ore from the rest of the world, and a number of developing countries are approaching the steel production intensity curve.

In addition, Rio Tinto expects to ship its first iron ore from the Simandou project in Guinea in November this year, Gerard Reinberger, Simandou’s managing director, said last week.

At the same time, Australia’s BHP Group believes that its commodities portfolio, led by iron ore, is able to withstand various scenarios despite economic uncertainty, including high tariffs and unstable global trade conditions, Australian Resources & Investment writes.

In particular, at the Bank of America conference, BHP CEO Mike Henry mentioned a stable outlook for ore, supported by stable steel production in China and significant depletion of raw material reserves.

According to him, China intends to maintain steel production at 1 billion tons over the next few years. The depletion of reserves will also have a major impact on the market dynamics – independent consultants estimate it at 250 million tons by 2035.

BHP expects that these supply fundamentals, combined with high costs from producers at the top of the curve, will support prices in the medium term.

BHP’s CEO also noted that the company’s Western Australian iron ore business (WAIO) will continue to deliver strong profitability and cash flow going forward.

As GMK Center reported earlier, in April 2025, sea shipments of iron ore to China reached 103.14 million tons, up 9.8% m/m and 1.3% y/y. During the month, demand for iron ore remained high due to active production plans of steel mills. In January-April, iron ore imports decreased by 5.5% y/y.