Rio Tinto | Minerals and Metals for the world

China's charge, continued
China's economic growth has powered along at a rate of nearly eight per cent a year.

It overtook the US to become the world's largest user of steel in 1999 (it was already the largest producer) and in 2002 overtook it to become the world's largest user of copper.

In 2001 it overhauled both the US and Russia to become the world's largest producer of aluminium. In 2003, it looks set to become the world's largest importer of iron ore, for the first time pushing Japan into second place. Once a bit part player in metals and minerals, Chinese growth is now key to world markets. If one assumes that China consumes 17 per cent of the world's metals (its average for aluminium and copper), then growth of 12 per cent in demand in any year (close to the reality of the past decade) contributes two per cent growth at a global level.

In these pages four years ago, I discussed China's extraordinary economic growth and its mounting impact on metal and mineral markets. (China's Charge, Review No 52, 1999). While the tone of the piece was extremely upbeat, it turned out, if anything, to be too cautious.

In the intervening four years, progress has been spectacular. This performance is all the more impressive because it has taken place against the backdrop of a generally sluggish world economy. A consequence of the diverging growth trends between China and the rest of the world is that China has achieved a dramatically increased importance to the metals and minerals industries over these years. It has become, in many respects, the growth market.



China's charge, continued China's economic growth has powered along at a rate of nearly eight per cent a year. It overtook the US to become the world's largest user of steel in 1999 (it was already the largest producer) and in 2002 overtook it to become the world's largest user of copper. In 2001 it overhauled both the US and Russia to become the world's largest producer of aluminium. In 2003, it looks set to become the world's largest importer of iron ore, for the first time pushing Japan into second place. Once a bit part player in metals and minerals, Chinese growth is now key to world markets. If one assumes that China consumes 17 per cent of the world's metals (its average for aluminium and copper), then growth of 12 per cent in demand in any year (close to the reality of the past decade) contributes two per cent growth at a global level. In these pages four years ago, I discussed China's extraordinary economic growth and its mounting impact on metal and mineral markets. (China's Charge, Review No 52, 1999). While the tone of the piece was extremely upbeat, it turned out, if anything, to be too cautious. In the intervening four years, progress has been spectacular. This performance is all the more impressive because it has taken place against the backdrop of a generally sluggish world economy. A consequence of the diverging growth trends between China and the rest of the world is that China has achieved a dramatically increased importance to the metals and minerals industries over these years. It has become, in many respects, the growth market.
PAGE 1 OF 8

Review is published by Rio Tinto, 6 St James' Square, London SW1Y 4LD, England Telephone +44 (0)20 7930 2399 Editor: Cherry DeGeer