BHP Billiton positive on global commodity market

BHP Billiton positive on global commodity market

BHP Billiton has reiterated its full year production guidance on all its minerals, other than copper, as the world’s largest miner demonstrates early signs of a recovery in the commodities market.

The mining giant sounded a positive tone on world commodity markets saying there are early indications the oversupply in many sectors, which has crippled prices, is easing.

“We have seen early signs of markets rebalancing,” said BHP chief executive officer Andrew Mackenzie.

“Fundamentals suggest both oil and gas markets will improve over the next 12 to 18 months. Iron ore and metallurgical coal prices have been stronger than expected, although we continue to expect supply to grow more quickly than demand in the near term.”

BHP posted a record full-year loss in August on the back of plummeting oil and iron ore prices earlier this year, but pledged to lift volumes across its divisions as it remained confident about the longer-term outlook for its commodities.