Latest news with #crude steel
Times
an hour ago
- Business
- Times
BHP profits slide as sluggish China demand hits iron ore prices
The world's largest mining group has posted its lowest profit in five years due to lower iron ore as a result of sluggish demand from China. BHP said underlying profit fell to $10.16 billion in the year to the end of June, down 26 per cent from $13.7 billion in the previous year and below market forecasts of $10.22 billion. The average realised price BHP received for its iron ore fell by 19 per cent over the financial year, due to lower demand from China, which accounts for more than 60 per cent of global seaborne iron ore, for its steel industry. China is the world's largest steel producer, accounting for more than half of the global crude steel production. A $4.4 billion, or 8 per cent, decline in full-year revenue to $51.3 billion was partially offset by higher copper prices, the company said. Copper production exceeded 2 million tons for the first time, up 28 per cent over the past three years. In results announced late last night in Melbourne, Mike Henry, the chief executive, said: 'It was another strong year for BHP, marked by record production … against a backdrop of global uncertainty.' He said policy uncertainty, particularly around tariffs, fiscal policy, monetary easing, and industrial policy, has been elevated and continues to influence investment and trade flows. Henry added: 'Despite these dynamics, commodity demand remained resilient.' Shares in the miner have risen in overnight trading on a bigger-than-expected final dividend. BHP cut its final dividend but by less than analysts had forecast. It will pay shareholders $0.60 a share, from $0.74 a year earlier, taking the year's total to $1.10, its lowest since 2017. The company said the dividend payment reflected lower debt and the disposal of non-core assets in Brazil. In January 2022, BHP dropped out of the FTSE 100 index after moving its main listing to Australia. It retains a standard listing in London. BHP raised its net debt target range to between $10 billion and $20 billion, from between $5 billion and $15 billion, saying it was due to technical analysis and was not a sign of increased appetite for mergers and acquisitions. The company would consider acquisitions in target growth areas such as copper and potash but only of assets which were reasonably-priced and high quality, and 'the overlap between those factors is a rare thing', Henry said. BHP's abandoned £39 billion bid for Anglo American last May was an attempt to get access to copper assets. Copper has become increasingly important due to its use in electric cars and trucks. The company said it planned to spend $11 billion on growth projects and exploration over the next two years, up from $9.79 billion in 2025. However, it said spending will slow to an average $10 billion a year between 2028 and 2030. In July, the mining giant reported a delay and a cost overrun of up to $1.7 billion at its key Jansen potash project in Canada. It also exited its interest in the $942 million Kabanga nickel project in Tanzania.
Bloomberg
15-07-2025
- Business
- Bloomberg
China's Steel Mills Lead Steep Drop in Building Materials Output
China made further headway in June in its bid to tackle oversupply of key industrial commodities, with crude steel production leading declines in construction materials with its biggest drop in 10 months. Output in June fell 9.2% year-on-year to 83.2 million tons, leaving first-half production at its weakest since 2020 and 3% off last year's pace, according to the statistics bureau on Tuesday. Cement output, meanwhile, fell 5.3% while glass-making dropped 4.5%.
