(Bloomberg) -- BHP Group Ltd., the world’s biggest miner, posted a full-year profit broadly in line with expectations, as revenue from iron ore and copper...
-- BHP Group Ltd., the world’s biggest miner, posted a full-year profit broadly in line with expectations, as revenue from iron ore and copper increased despite a deteriorating Chinese demand outlook .With Housing Costs High, Democrats Hone YIMBY Message
China’s slowing economy and languishing property market is damping demand for metals, especially steelmaking staple iron ore, which accounts for almost two-thirds of BHP’s revenue. The head of the country’s biggest steel producer warned this month the industry faced a situation worse than crises in 2008 and 2015, and a wave of surplus Chinese steel is expected to flood global markets.
Henry has signaled plans to focus BHP more closely on materials tied to the energy transition, particularly copper, but the company’s failed $49 billion bid to takeover Anglo American Plc this year dealt a blow to those ambitions. It will have another opportunity to bid for its rival in November, and Henry said on the earnings call on Tuesday that there still a lot of attractive growth opportunities for copper.
“Some sectors of the Chinese economy that drive steel demand, such as shipbuilding and the auto industries, are actually performing quite healthily,” Henry said. “What we’re seeing play out in the market is really a fine balance between steel demand and iron ore supply,” adding “we see things having bounced off the downside cushion.”BHP’s announcement continues a trend of the world’s largest miners remaining profitable despite China’s sluggish growth.
Mike Henry China Iron Ore Demand Outlook
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