BHP Says China's Real Estate Recovery Will Boost Metals Demand

Published: May 29, 2023 17:06

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According to foreign news on May 25, BHP Group is full of confidence in the recovery of China's real estate market in the next few months, although the signal from the global economy has caused copper prices to fall sharply.

Existing home sales in the real estate market “are still strong and very strong,” Vandita Pant, the company’s chief operating officer, said in an interview Thursday. We think home sales and completions will pick up first, followed by housing starts. "

"This trend has always been there," she added.

China is the largest metals consumer in the world.

A weaker-than-expected construction sector, particularly real estate, sent copper prices below the $8,000/mt mark for the first time since November last year, adding to broadly pessimistic views on the global economy.

But Pant said BHP still expected Chinese metals demand "to be a stabilizing factor in the second half of the year, and to be better in the second half than in the first half," echoing comments from chief executive Mike Henry in February.

The first quarter of the year was "better than we expected," but the market got carried away in the second quarter, pushing commodity prices to unreasonable levels, Pant said.

He said the Chinese economy would not fully benefit from the stimulus introduced by the government earlier this year until 2024.

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