Moderate growth in global steel production expected

Australian mining company BHP expects global steel production to increase moderately in the remaining months of 2024 and 2025, with India and Southeast Asia making the largest contribution. BHP forecasts volatility in commodity markets over the next 18 months and expects inventories of steelmaking raw materials to increase. In 2024, the iron ore market is likely to be moderately oversupplied, with supply likely to exceed demand by 2025. Coal will also be slightly oversupplied this year.

According the reports, the major mining company is cautiously optimistic about the state of the Chinese market and believes that China's recent fiscal and monetary stimulus will halt the property sector's decline in 2025. The share of China's construction sector, which has historically accounted for the largest share of China's steel demand, will fall to just over 20 percent this year, overtaken by machinery and equipment. As China's steel output falls, India is likely to offset some of the decline in steel production.