(Reuters) -BHP Group Ltd on Tuesday reported a steeper than estimated 32% drop in revenue for the primary half, citing weak iron ore costs, however forecast a optimistic demand outlook on strengthening exercise in China.

Nonetheless, its interim dividend of 90 U.S. cents per share, whereas decrease than final 12 months’s 150 cents per share, beat Vuma Monetary’s estimate of 88 cents.

“We’re optimistic in regards to the demand outlook within the second half of fiscal 2023 and into fiscal 2024, with strengthening exercise in China on the again of current coverage choices the main driver,” Chief Govt Officer Mike Henry stated.

“We count on home demand in China and India to offer stabilising counterweights to the continued slowdown in international commerce and within the economies of the US, Japan and Europe,” he stated in a press release.

Final 12 months miners wrestled with surging prices, a decent home labour market and decrease iron ore costs as a consequence of China’s strict zero-COVID coverage. However the reopening of the world’s second-biggest economic system and a coverage shift for its debt-ridden property sector has BHP upbeat on the commodity demand outlook.

“The long-term outlook for our commodities stays sturdy given inhabitants progress, rising dwelling requirements and the metals depth of the power transition, together with for steelmaking uncooked supplies,” Henry added, apparently referring to the necessity for metals for merchandise like electrical automobiles and windmills.

Nonetheless, in an setting the place central banks are aggressively tightening their financial coverage, BHP expects its working setting to stay risky within the close to time period, however sees China offering aid as a supply of stability for commodity demand.

The world’s largest listed miner stated underlying revenue attributable to persevering with operations was $6.60 billion for the six months ended Dec. 31, in contrast with $9.72 billion a 12 months earlier. That missed a Vuma Monetary estimate of $6.82 billion.