SMM10, 31 / PRNewswire-Asianet /-China's stimulus measures aimed at preventing further economic slowdown and minimizing the impact of US tariffs are driving demand for basic metals, Rio Tinto said. Jean Sebastian, chief executive of Rio Tinto. "China's economy is still working well," Jacques said in an interview with Bloomberg Television on Tuesday. China has seen a sudden increase in local bond issuance aimed at financing roads, housing and other infrastructure development, while tax cuts and other fiscal stimulus measures are being used to support economic growth. Data released last week showed that the impact of the trade war had not yet taken place, with investment in infrastructure falling to its slowest pace since early 2014.
"China has been pushing ahead with infrastructure projects, loosening monetary policy and trying to support domestic demand, which in turn supports commodity prices," Bloxham said. The bank expects iron ore prices to rise in the coming years because of Chinese demand and insufficient investment by miners in new supplies.
In the short term, China's steel production is expected to set an annual record and support raw material consumption, according to Jacques, chief executive. China's dominance in electric vehicles will also support long-term demand growth for commodities such as aluminum and copper, Mr. Jacques said.
"there is no doubt that China will be at the forefront of the world in terms of electric vehicles," Graham Kerr (Graham Kerr), chief executive of South32, said in an interview with Bloomberg Television (Bloomberg TV). Miners are looking for any impact of China's restrictions on winter capacity in the chimney industry.
BHP Billiton (BHP Billiton Ltd.) Chief Business Officer Barhaitsyn (Arnoud Balhuizen) said at the meeting that the trade war could cut China's GDP growth by 0.5 to 0.75 percentage points. The company also slightly cut its forecasts for global economic growth in 2019 and 2020. So far, BHP has not felt any impact of the trade war on its business, and China and India will support demand for steelmaking materials in the coming year, he said.
In an interview, Jacques said Rio Tinto is working with China Minmetals Group (China Minmetals Corp.) Signed an exploration agreement and is willing to establish new relations of cooperation with Chinese suppliers, customers or other companies.
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