Development in China, India to drive higher demand for coking coal, manganese
By Robb M. Stewart
BHP Billiton, a leading producer of exported coking coal and manganese, today forecast an acceleration in demand for raw steelmaking ingredients as industrial development continues in China, India and other emerging economies.
Volume estimates for BHP’s coking coal and manganese businesses fall short of demand forecasts, the Anglo-Australian mining company said in a presentation on steelmaking materials published on its website.
The miner said it expects crude steel production in China, the world’s biggest consumer of steel, to grow to about 1.1 billion tonnes by 2025.
BHP’s global market share is about 26 per cent in coking coal and 21 per cent in manganese ore traded by sea. It has forecast average 9 per cent growth in its production of iron ore, coking coal and manganese through the 2020 financial year.
Every tonne of crude steel requires about 600kg of coking coal and 30kg of manganese ore.
Growth in coking coal demand will be driven mainly by China and India, as these populous nations continue to develop and urbanise, it said.
Domestic supplies of quality hard coking coal in China haven’t kept pace with demand, while India is highly reliant on imports. China, and eventually India, will also drive demand for manganese, it said.