bloomberg: 必和必拓对铁矿石中期需求偏谨慎乐观

In the medium term, BHP said Chinese consumption of iron ore will fall from current levels as steel output plateaus and more scrap is used. China’s steel production has been in decline for the past two years after the government moved to cut emissions and rein in its heavily indebted property sector, the biggest source of demand.

For copper, the miner’s next biggest earner, demand growth is expected to be modest, with improvements in China offsetting weakness in the developed world. More broadly, “the electrification mega-trend” is likely to be major tailwind for consumption of those metals like copper and nickel that are crucial to the transition away from fossil fuels, it said. 

Demand for iron ore from China’s vast steel industry is now expected to improve, BHP said in its earnings report, although it warned that the impact on profitability at steel mills, which affects the premium paid for higher grade ore, remains uncertain. 

Beijing has also established a new state-owned company, China Mineral Resources Group, to consolidate purchases on behalf of its largest steelmakers. Henry said the development, designed to improve China’s leverage in the $160 billion trade, is “bringing an added dimension to the market” but downplayed concerns it would give buyers too much power.