BHP and Rio Tinto see solid rebound in China's steel sector
2020-04-22 10:32:14 [Print]
BHP expects steel production in China to increase slightly this year, if the world's biggest consumer of raw materials avoids a second wave of COVID-19 infections.
In a detailed review on its key commodity markets on Tuesday, the BHP miner noted that industrial activity was improving in China, spurred by supportive credit and fiscal policies, although there were still considerable variations across provinces.
BHP said blast furnace utilization rates in China had increased to almost 79 per cent in April, up from 73 per cent earlier in the year, while demand for reinforcement bars -- steel products widely used in construction -- was at or above normal levels for the time of year. If the country does not experience further outbreaks of Covid-19, steel production may rise slightly in 2020, BHP said in its quarterly trading update.
BHP's comments echo those made by arch rival Rio Tinto, whose chief executive Jean-Sebastien Jacques said last week that China was restarting and demanding lots of raw materials.
China is the world's biggest producer of steel -- it churned out about 1bn tonnes of the metal last year -- and also the largest consumer of iron ore, the main ingredient.
In a detailed review on its key commodity markets on Tuesday, the BHP miner noted that industrial activity was improving in China, spurred by supportive credit and fiscal policies, although there were still considerable variations across provinces.
BHP said blast furnace utilization rates in China had increased to almost 79 per cent in April, up from 73 per cent earlier in the year, while demand for reinforcement bars -- steel products widely used in construction -- was at or above normal levels for the time of year. If the country does not experience further outbreaks of Covid-19, steel production may rise slightly in 2020, BHP said in its quarterly trading update.
BHP's comments echo those made by arch rival Rio Tinto, whose chief executive Jean-Sebastien Jacques said last week that China was restarting and demanding lots of raw materials.
China is the world's biggest producer of steel -- it churned out about 1bn tonnes of the metal last year -- and also the largest consumer of iron ore, the main ingredient.
