The Sydney Morning Herald reported that the world's largest mining company, BHP, is considering India's fast-growing economy and accelerated steel production as a way to help offset China's declining coal demand in the new decade.
China's consumption of iron ore and coal, Australia’s key steelmaking ingredients and Australia’s two largest export shipments, led to an unforeseen situation in 2019 for the world's leading miners and added momentum to the Australian government’s federal budget.
But according to forecasts, demand from China will decrease amid falling margins, weakening global growth and the ongoing trade war between the US and China.
Meanwhile, BHP forecasts steel production growth in India in the next decade at 7% per year. The annual steel production in India, exceeding 100 million tons of steel, surpassed Japan and became the second largest steel country in the world.
“Many other markets are large but mature,” said Hugh Mackay, BHP vice president of market analysis. India is big and it has just begun development."
