Economy to Recover Slowly- BHP Billiton

Submitted by Jim Thesiger on 26 November, 2009 - 14:18

Marius Kloppers, the chief executive of one of the largest mining companies of the world BHP Billiton (BHP) today have mentioned that the market condition have improved in the last month with demand from the steel sector of China- the world’s fastest growing economy has been pretty much strong. The demand in the commodity market was beginning to move upwards in others places as well with evidence that restocking in other major economies has begun despite the process was moving cautiously in the West, he added. However, Mr. Kloppers also stated that even though the recession is over, the company was not expecting to return in the market as strongly as it did in case of other recessions. The BHP chief executive has recently made these comments while he was attending the yearly meeting of the Australian miners with the investors. It is to be mentioned that a large number of Australian companies faced a hard time in the last couple of years when the worldwide financial recession struck the country’s economy.

The rebound of the price of commodities in the last six months was led by a surprising recovery in the economy of China. However, the restocking in that country has been essentially completed now, Mr. Klopper said. He also added that the resilience of the steel market of China was quite surprising. It is assumed that the miners might feel encouraged to push the price of iron ore in the Annual contract iron ore price talks which is currently underway between the largest miners of the world and the steelmakers after Mr. Kloppers made his remarks about the unexpected rise in demand of resource from the Chinese steelmakers.

Don Argus, the BHP Billiton chairman has reaffirmed his company’s stated view that the rebound of the global economy will occur gradually despite the outlook for the long term demand for commodities will remain at a stronger position. Mr. Argus also said that he is expecting a sturdy long term demand of his company products in the Asian market.