Stable Iron Ore Demand in China Signals Confidence for Global Miners
Rio Tinto and BHP Group see steady iron ore demand in China, even as economic uncertainty clouds other global markets.
At the Bank of America Metals Conference, Rio Tinto CEO Jakob Stausholm reported that the company expects continued stable demand in China. He said the Chinese economy shows signs of strength, with growth in electric vehicles and success in the energy transition.
Stausholm added that demand for iron ore in China increased in Q1 2025. Rio Tinto’s operations in China remain resilient, and developing nations are also increasing steel output. These countries are nearing the steel production intensity curve—a key metric in tracking industrial development.
Simandou to Boost Supply While BHP Eyes Long-Term Price Support
Rio Tinto plans to begin iron ore shipments from the Simandou project in Guinea by November 2025. Simandou will supply high-grade iron ore, which is crucial for low-carbon steelmaking. According to Simandou managing director Gerard Reinberger, infrastructure construction is progressing steadily.
Meanwhile, BHP Group CEO Mike Henry noted that the company’s iron ore-led portfolio is well-positioned for various market scenarios. He emphasized China’s ongoing commitment to producing 1 billion tonnes of steel per year.
Henry said that depletion of global iron ore reserves, expected to reach 250 million tonnes by 2035, will influence market dynamics. This shortage, combined with rising costs among high-cost producers, could support prices in the medium term.
BHP’s Western Australian Iron Ore (WAIO) unit remains a strong source of cash flow and profitability. Henry believes WAIO will continue delivering stable financial performance even if global trade becomes more volatile.
Steel Mill Activity in China Underpins Robust April Imports
In April 2025, sea-borne iron ore imports to China reached 103.14 million tonnes, up 9.8% month-on-month and 1.3% year-on-year. Chinese steel mills maintained aggressive production schedules throughout the month. However, total imports during the first four months of 2025 fell 5.5% year-on-year.
Despite lower cumulative imports, Chinese mills show no sign of slowing steel output. Strong infrastructure and EV-related projects continue to support iron ore demand. Analysts expect this demand to persist in the medium term, especially with the launch of high-grade ore from Simandou.
As global markets evolve, SuperMetalPrice will continue to monitor iron ore prices, shipping trends, and production shifts in key regions.
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