BHP Expects China to Maintain Commodity Demand in 2023

As developed nations face economic headwinds, BHP Group (NYSE:BHP) Ltd announced above-estimated quarterly iron ore shipments on Thursday and projected China will be a stabilizing impact on commodities demand this year.

For the three months ended in December, the world's largest publicly listed miner reported Western Australia iron ore output of 74.3 million tonnes (mt), up 1% from 73.9 million tonnes (mt) a year earlier and beating the Goldman Sachs (NYSE:GS) forecast of 71.9 million tonnes.

"China's pro-growth policies, particularly in the real estate sector, and an easing of COVID-19 restrictions are expected to contribute to a steady rebound from the difficult economic conditions of the first half," BHP added.

The mining giant reaffirmed its fiscal 2023 forecast for Western Australia's iron ore production to reach between 278 and 290 million tons on a 100 percent basis.

Competitor Rio Tinto (NYSE:RIO) indicated on Tuesday that China's reopening from COVID-19 restrictions might increase the risk of future labor and supply-chain obstacles. It also anticipated a healthy beginning for iron ore shipments in 2023.