News: BHP BHP Group Posts FY Underlying Attributable Profit US$13.7 Bln, page-3

it comes down to steel production and China is the largest steel producer globally accounting for over half of the global production. To put it into perspective the next largest, India accounts for a tenth of Chinese production and approximate 5 percent of global production. This is the significance of Chinese growth that has powered the steel industry within and boosted the demand for raw materials in bulk commodities such as iron ore. If China cannot maintain or improve consumption, the world will definitely see a crash in demand and a near term collapse in prices to work through the excess inventory. Only a similar urbanization drive in India might come close to matching the demand but the Chinese model is more prone to deliver this than the Indian model of governance.