BHP Billiton CEO: No 'Clean' Demand Seen Until Early 2010
August 20 2009 - 5:40PM
Dow Jones News
BHP Billiton Ltd. (BHP) doesn't expect "clean" demand for its
metals until early next year, the company's chief executive said
Thursday.
Until then, there is likely to be a neutral bias to the market
as the process of restocking supplies comes to an end in China but
begins elsewhere, Marius Kloppers told reporters during a briefing
in Johannesburg.
Kloppers said the mining company's petroleum, iron ore, base
metals and coal businesses are expected to contribute more to
earnings in the year ahead than commodities such as nickel.
On pricing, Kloppers said BHP Billiton is interested in systems
that are transparent and market driven, and where "goodwill" isn't
lost unnecessarily during negotiation. An evolution is taking place
toward this in iron ore and other commodities, replacing benchmark
and annual contracts, he said.
BHP Billiton last week posted a 62% drop in its full-year net
profit to $5.88 billion from $15.39 billion the year before.
-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848;
robb.stewart@dowjones.com