The world’s largest mining company BHP said China will act as a “stabilising force” for commodity demand this year as Beijing’s pro-growth policies offset weak economic performance in other developed markets. The Australian resources company said on Thursday that China’s easing of Covid-19 restrictions and stimulus for the property sector, a key driver of iron ore demand, would support “progressive improvement from the difficult economic conditions of the first half”.

The company reported record iron ore production for its fiscal first half, producing 132mn tons of the steelmaking material. BHP’s shares were up 1.5 per cent.

“BHP believes China will be a stabilising force when it comes to commodity demand in the 2023 calendar year, with OECD nations experiencing economic headwinds,” said Mike Henry, chief executive of BHP.