Ines Schumacher |
Wed, 23 Sep 2009 10:32
[miningmx.com] -- GLOBAL miner BHP Billiton did not expect the commodities market to return the levels that once drew commentators to declare it a 'supercycle'.
"We do not expect a return to the same buoyant demand conditions that prevailed before the global financial crisis," said Marius Kloppers , CEO of BHP Billiton. "Or a return to record global growth rates within our forecasting horizon".
Kloppers, who was commenting in BHP Billiton's annual report published on Wednesday, said however China was beginning to stimulate world economic demand.
Chinas reduction of lending controls in November 2008 had facilitated an increase in real estate and mortgage lending. This, in turn, supported an increase in construction and increased demand for raw materials, said
Kloppers.
China also announced infrastructure stimulus measures to improve its rail, road and air transport links which also created fresh demand for raw materials. China represents 20% of BHP Billiton's revenue and 50% of the worlds raw material consumption.
Don Argus, BHP Billiton chairman, said there was evidence in the US, UK, Europe and Australia of increasing stability in financial systems and economies.
Over the longer term, we believe that emerging economies such as China and India will contribute the majority of world economic growth as they continue to industrialise, which will see demand for commodities continue to grow, he said.
BHP Billiton has had to curtail production across its metallurgical coal, manganese, nickel and iron ore pellet operations.
BHP Billiton, which in August reported a 62% decline in attributable profit to $5.9bn, has seen its share price gain 34%. It was last trading at R209.27/share.