China’s strong demand for commodities will overtake the post-2008 crisis, the mining giant says

Shoei Kisen Kaisha’s cargo ship Mineral Shikoku bound for Tianjin, China loaded with iron ore at the ship loading facility at Fortescue Metals Group’s berth in Port Hedland in the Pilbara region of Western Australia.

Bloomberg | Bloomberg | Getty Images

BO’AO, China – China’s post-pandemic reopening will boost demand for commodities more significantly than it did when the country emerged from the 2008 financial crisis, according to Andrew Forrest, executive chairman of Fortescue.

The Australian iron ore giant started its business in China with a shipment of 180,000 tons of iron ore in 2008, according to the company’s website.

Back then, China managed to avoid a prolonged recession with a massive stimulus package that supported infrastructure development – which spurred demand for commodities.

“It is, but this time it’s just going to be bigger in volume,” Forrest told CNBC on Wednesday when asked how China’s demand for Covid might compare.

“Probably about the same or a little less in percentage terms,” ​​he said on the sidelines of the Boao Forum for Asia. Government and business leaders attend the high-profile conference, held annually in Hainan province and sometimes compared to the Asian version of the World Economic Forum’s annual event in Davos, Switzerland.

What we are seeing now is consistent demand across China.

Andrew Forest

Chairman of the Board, Fortescue

China’s economy is much larger today than it was during the 2008 global financial crisis. In 2010, China overtook Japan to become the second largest economy in the world.

Forrest pointed out that the volume represented by a percentage is larger when the “pie” is larger.

“What we’re seeing now is consistent demand across China,” Forrest said, “and consistent demand but fortunately increasing in the supply chain, the ecosystem that will emerge.” [for the] renewable energy sector.”

Forrest did not specify which goods he was referring to. In the six months ended December 31, Fortescue said it shipped a record 96.9 million tons of iron ore, up 4% from a year ago.

The Australian miner expects to maintain a similar pace of deliveries in the first half of this year, according to the forecast published in February.

This year’s Boao Forum is the first since China ended its Covid-era border controls, allowing more foreign companies to visit the country.

Renewable energies: Enormous need

Source :

Leave a Reply

Your email address will not be published. Required fields are marked *