BHP Biliton: China, India to Spur Global Demand for Steel-Grade Coal Close to 70%
Fast-developing and emerging market leaders China and India will push the global demand for raw steelmaking ingredients by as much as 68 percent between 2010 and 2025, according to mining giant BHP Billiton Ltd. on Friday.
In a presentation on steelmaking materials published on its website, the Anglo-Australian mining company forecasts China's coking coal demand will rise by 233 million metric tons while India's by 94 million metric tons from a total demand growth of 483 million metric tons over the more than a decade period.
BHP projects crude steel production usage in China to increase to 1.1 billion metric tons by 2025. China is world's biggest consumer of steel.
BHP accounts 26 percent global market share in coking coal and 21 percent in manganese ore traded by sea.
It predicts an average 9 percent growth in its production of iron ore, coking coal and manganese through the 2020 financial year.
China and India will drive the expansion in coking coal demand, as these populous nations continue to develop and urbanize, BHP said. Between 2010 and 2050 the proportion of the urban population in China is seen to jump from 47 percent to 73 percent, while in India, it would be a jump from 30 percent to 54 percent.
Domestic supplies of quality coking coal in China haven't kept pace with demand, while India is highly reliant on imports. China, and eventually India, will also drive demand for manganese, the global miner added.
Moreover, BHP projects a 155 percent upsurge in the number of cars produced annually over the next 15 years. Metropolitan residential floor space is also seen to double over the same period.
BHP Billiton has now overtaken competition Rio Tinto with its ambitious plans of churning 450 million tonnes of iron ore a year from the Pilbara. Present output at the site is now 155 million tonnes.