Global mining giant BHP Billiton [JSE:BIL] said on Tuesday that Chinese iron ore demand appeared to be flattening as the world’s second-largest economy slows, but prices were expected to hold up.
BHP iron ore president Ian Ashby said he was confident that China would meet its five-year economic growth targets, but iron ore demand would soon hit “single digits if it’s not already there”.
China, the world’s largest consumer of raw materials, announced a growth target of 7.5% for 2012, a marked downgrade from last year’s 9.2% growth and 10.4% in 2010.
Its economy swung to a trade deficit of $31.48bn in February, according to the latest figures, with crude oil and other raw materials imports soaring while exports were further hit by weak demand in Europe and the US.