Breaking News
Investing Pro 0
Donate to earthquake relief efforts in Turkey and Syria Donate

BHP's CEO expects Chinese economic growth to continue

Stock Markets Nov 30, 2022 08:16PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. CEO of BHP Mike Henry is interviewed at a Reuters NEXT Newsmaker event in New York City, U.S., November 30, 2022. REUTERS/Brendan McDermid
 
Copper
-0.75%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GM
+0.69%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

(Reuters) -BHP Group Ltd Chief Executive Mike Henry told the Reuters NEXT conference on Wednesday that "all fundamentals are in place" in China for continued economic growth over the next 20 years.

China, the world's second biggest economy, accounts for more than 50% of global demand for raw materials. Its economic activity has this year been dampened by targeted lockdowns in response to COVID-19 outbreaks.

Henry, head of the world's largest listed mining company, told the conference he expects to see an "increasing domestic drive towards economic growth in China".

BHP is a top producer of iron ore, used in the making of steel going into the construction industry, with more than 250 million tonnes mined in the financial year to June.

Henry said he expects China's steel sector to grow in 2023 as the economy starts responding to government stimulus efforts and its steel output, which dropped 3.4% in the first seven months of 2022, slowly recovers.

BHP also mines copper, nickel and other metals needed to power the energy transition that will help the world meet climate commitments.

"Decarbonisation, electrification doesn't happen without mining," Henry said. "The world is going to require roughly four times as much nickel over the next 30 years as it did in the past three years, two times as much copper and steel."

AUTOMAKERS IN MINING

Henry played down a recent trend for automakers including General Motors Co (NYSE:GM) and Stellantis to invest millions of dollars by taking equity stakes in miners to secure new sources of nickel, cobalt, lithium and other minerals needed to build battery cells used in electric vehicles (EVs).

"Whilst in the flurry of initial activity you might see some auto manufacturers wanting to take a stake in upstream mining, over time they realise the best allocation of capital for them is on the businesses they know really well, so manufacturing automobiles," Henry said.

"If the markets are functioning in a way they should be functioning, so high liquidity with the right price signals and so on, they can actually rely upon those markets and on companies like BHP for that security of supply for the key metals that they need to produce EV batteries."

BHP's CEO expects Chinese economic growth to continue
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
JJ JJ
JJ JJ Dec 01, 2022 1:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Does he live in a dream world?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email