Mining Giants Warn of Tougher Times as World Demand Wavers
- BHP, Rio flag labor market tightness, supply side constraints
- China’s steel demand pressured after ore fell below $100 a ton
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Mining giant BHP Group has joined rival Rio Tinto Group in signaling more turbulence to come for commodities producers as costs balloon and demand for everything from iron ore to copper hits headwinds.
The world’s biggest miner warned Tuesday of an “overall slowing of global growth” amid the war in Ukraine, Europe’s energy crisis and global monetary tightening. The commentary -- from its latest quarterly output update -- echoed remarks from Rio last week. BHP also said cost pressures would linger over the coming 12 months, while Vale SA trimmed its full-year iron ore production guidance, due in part to “current market conditions.”