Notwithstanding global trade and economic uncertainty, Australian mining behemoth BHP reported robust demand for its products on Tuesday, pointing to preliminary indications of a Chinese resurgence.
The business reported that in the six months ending December 31, 2024, sales of the important commodities iron ore, copper, and coal used to make steel all grew by volume year over year.
However, it added that declining prices for iron ore and coal used to make steel, which were somewhat countered by rising copper prices, caused revenue to drop 8% to US$25.2 billion during the same time period.
“The demand for BHP products remains strong despite global economic and trade uncertainties, with early signs of recovery in China, resilient economic performance in the US and strong growth in India,” said BHP chief executive Mike Henry.
“The trajectory of the world population growing from eight billion today to 10 billion in 2050, with more people living in cities, together with the energy transition and the growth of data centres and AI, will compound the need for more metals and minerals,” he said.
BHP said underlying net profit slumped 23 percent to US$5.1 billion in the period, after excluding the impact of an exceptional loss in the same period a year earlier.
The group said it expected the world economy to grow by about three percent in 2025 and 2026.
“The impact of policy on trade and inflation remains a key uncertainty, particularly for the United States and its trade partners,” BHP said.
“Developed economies are expected to gradually recover, as interest rates continue to be lowered, with the US economy likely to outperform other developed markets.”
