The year 2023 will be marked by major challenges for the mining industry. Large inflationary pressures will persist, dampening demand for commodities. China will represent some stability, the head of strategy at mining firm BHP estimated.
The war slowed growth
The mining industry is struggling this year with the consequences of the war in Ukraine. Several bottlenecks have been created, which are further supported by unprecedentedly high inflation, and in many countries even by record inflation. Demand for commodities is thus dampened and will continue into next year. James Agar, head of strategy at mining company BHP, said this at an international conference in Sydney dedicated to the mining sector.
China as a stabilizer
According to him, in 2023 one can rely to some extent on China, which could act as a kind of stabilizer of demand for commodities. Most countries in the economically developed world will face the effects of high inflation, which will push them to the brink or even into recession itself. And during a recession, demand for commodities decreases. In the case of China, but also in the case of India, however, it is likely that economic growth will only slow down, not economic downturn.
