Global mining majors BHP and Rio Tinto have highlighted India as a key long-term growth market for iron ore and metallurgical coal, as slowing steel demand in China pushes the global steel industry’s growth outlook increasingly toward South Asia and Southeast Asia, according to a report by Reuters.
Speaking at Singapore International Ferrous Week, BHP Group sales and marketing officer Michiel Hovers stated that Indian steelmakers are expanding aggressively, noting that many of BHP’s customers in India are doubling capacity. He added that India remains at the early stages of its steel consumption growth, supported by rapid urbanization, infrastructure investments and new capacity additions.
India, already the world’s second largest steel producer, aims to lift crude steel production significantly in the coming years, with targets ranging from 300 million mt by 2031 to 400 million mt by 2035-36, compared to current output of around 168 million mt. Although this remains far below China’s nearly 1 billion mt of annual steel production, the expansion is expected to require substantial additional volumes of iron ore and metallurgical coal, the latter of which India largely imports.
Rio Tinto chief commercial officer Bold Baatar also underlined that demand growth from India and ASEAN countries is expected to help offset stagnation in China, where the prolonged property sector downturn continues to weigh on steel consumption. According to Baatar, the global iron ore market will need around 950 million mt of new capacity over the next decade, both to meet fresh demand and replace depleting mine output.
Meanwhile, Chinese steel demand is expected to decline further this year, while steel output in China fell to a seven-year low in 2025. This has added pressure on major iron ore suppliers, which are also facing tougher negotiations from China Mineral Resources Group, the state-backed iron ore buyer seeking improved terms for domestic steelmakers.
