BHP Billiton Ltd. Chief Executive Officer Marius Kloppers said global demand for metals won’t rise beyond what is required to rebuild stockpiles for the remainder of this year.  “We won’t see clean demand until early next year,” Kloppers, head of the world’s biggest mining

company, told reporters in Johannesburg today. “Stocking events will
probably play the major role for probably the next six months.”  China
is almost finished replenishing its inventories, he said. The depletion
of stockpiles in Europe, the U.S. and Japan is coming to an end and
those supplies will need to be replenished “over the next few months,”
Kloppers said.  Metals including copper, aluminum and nickel have
gained this year as the global recession abates. The rebound may be
extended into next year, Nouriel Roubini, the New York University
economist who predicted the financial crisis, said on Aug. 3. The LMEX
London Metals Index of six metals including copper, aluminum and lead
fell by about half last year.

BHP’s ability to invest about $10 billion last year while rivals shut
operations “will stand us in very good stead” as markets recover,
Kloppers said. The investments gave BHP “a considerable lead.” 
Kloppers expects petroleum, iron ore, base metals and coal to
contribute “quite a substantial chunk” to BHP’s earnings this year,
while nickel, aluminum may not, he said.  Meanwhile, manganese
producers in South Africa may have to make “significant” investments in
infrastructure to boost exports of the metal and overcome “logistical
constraints,” Kloppers said.

Source: Bloomberg

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