BHP Group (ASX:BHP) has made public its economic and commodity outlook.

Notably, half of 2023 has been taken into account in their updated short-term supply and demand expectations.

BHP Group anticipates a generally balanced iron ore market on average across 2023.

Simultaneously, they now predict a small surplus or a balanced copper market.

When considering the immediate picture to the medium term, they see a continued need for additional supply.

BHP Group also anticipates a somewhat larger surplus in total nickel units.

They foresee that geologically higher-cost production will need to enter the supply stack in their preferred growth commodities as the decade progresses.

The basic elements of BHP Group’s long-term positive view remain intact.

The company is of the view that China’s economic growth rate will moderate as the working-age population falls, and it’s unlikely China will be achieving annual growth rates as high as +4.7% in the middle of the 2030s.

BHP Group also firmly believes that by mid-century, China will increase its accumulated stock of steel in use.

The entry of new, higher-grade supply from the Simandou project in Guinea is considered almost certain by the company.

In the longer term, BHP Group sees nickel as a substantial beneficiary of the global electrification mega-trend, and potash as a future-facing commodity with attractive fundamentals.

BHP Group is an international resources company with diverse operations in mining and processing minerals, as well as the extraction of petroleum.