BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs (BHP.US) and Rio Tinto plc Sponsored ADR (RIO.US) bet on India, aiming for a new dividend in the "Global South"

Notice that the two global mining giants, BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs (BHP.US) and Rio Tinto plc Sponsored ADR (RIO.US), are increasingly turning their attention to India, viewing it as the next major growth engine for the global steel industry. This highlights that these two largest iron ore suppliers in the world are preparing for the future "after China". Senior business executives of both mining companies have stated that India's growing demand and increased production capacity are helping offset the slowdown in other regions. Previously, China has dominated the global steel market for over twenty years. "I recently went to India. All of our customers are doubling their production capacity," said Michel Hofkes, BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs Sales and Marketing Officer, at a speech at the Singapore International Black Metals Week on Tuesday. "It's happening, it's real." As the expansion driven by real estate gradually cools down, India is becoming the most important growth market for the steel industry. The Indian government has set a production target of 500 million tons by 2047, which is nearly three times higher than last year's crude steel production of 165 million tons, but still far below China's production of 961 million tons. Although the per capita consumption of pig iron in this country with the largest population in the world is still far lower than in China, rapid urbanization and government-supported infrastructure spending are expected to drive demand growth in the coming years. This creates opportunities for global mining giants supplying iron ore and metallurgical coal. "We are only at the very early stage of growth in India," Hofkes said, adding that BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs is "well positioned to support" this expansion. Rio Tinto plc Sponsored ADR Chief Commercial Officer Bartol Batel earlier stated at the same event that the iron ore market can anticipate "substantial demand growth from the global south, particularly India and ASEAN countries, in the next decade". He pointed out that this will help offset the impact of stagnation in real estate demand. He added that the global market will need approximately 950 million tons of new iron ore production capacity, not only to meet this new demand, but also to address the depletion of existing mines. Bartel believes that analysts have consistently underestimated the resilience of the iron ore market, as predictors have failed to fully consider supply risks, declining ore quality, and the resilience of Chinese steel production.