BHP Group Ltd (LSE:BHP, ASX:BHP), the world’s biggest miner, said it believes China will stabilise commodity demand in 2023 as OECD nations continue to experience economic headwinds.
“China's pro-growth policies, including in the property sector, and an easing of COVID-19 restrictions are expected to support progressive improvement from the difficult economic conditions of the first half,” said BHP chief executive Mike Henry.
“China is expected to achieve its fifth straight year of over 1 billion tonnes of steel production,” he added in the FTSE 100-listed company’s first-half operational review covering the six months to end-December 2022.
BHP’s Western Australia Iron Ore (WAIO) unit achieved record production of 146 million tonnes (Mt) for the half year.
The miner retained its production guidance for the 2023 financial year, but said its Escondida copper operation and BHP Mitsubishi Alliance (BMA) metallurgical coal joint venture were trending towards the low end of their guidance ranges.
Still, BHP kept its overall copper guidance for the 2023 financial year unchanged at between 1.6Mt and 1.8Mt tonnes.
It also raised its unit cost guidance for BMA and New South Wales Energy Coal (NSWEC), mainly due to significant wet weather and inflationary pressures.