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BHP says China's growing machinery sector to offset construction weakness

Published 09/27/2017, 09:08 AM
© Reuters.  BHP says China's growing machinery sector to offset construction weakness
BHP
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  • China’s rising middle class and a growing machinery sector will offset any potential weakness in steel demand in construction over the next decade, BHP Billiton's (NYSE:BHP) general manager of iron ore marketing tells an industry conference.
  • China’s population is expected to grow by another 250M over the next 20 years and “a rising middle class will be looking to upgrade to bigger apartments, to better apartments," says BHP's Virginia Wilson, and "China will become more international in the machinery industry, and that’s a very steel-hungry industry."
  • BHP said yesterday that China's Belt and Road initiative could result in up to 150M metric tons of additional steel demand, which would drive demand for raw materials.
  • Now read: Industrial Commodities Stocks On Fire

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