BHPB says commodity prices are not in Asian Bubble

BHP Billiton Limited recently said that rising commodity prices aren't in an Asian bubble and China's demand for resources will remain high. Mr Don Argus chairman of BHP Billiton said that "China is growing at or more than 8% a year and needs a full range of energy and commodities to drive that growth. The northern hemisphere still doesn't believe we are in a stronger for longer cycle.'' Mr Marius Kloppers CEO of BHP said that it is spending USD 85 billion to expand metal production to meet demand led by China. It may be noted that BHP wants to merge with Rio to deliver more metals faster to China. Combined, BHP and Rio would vie with Brazil's Cia Vale do Rio Doce as the world's largest supplier of iron ore. The takeover would also BHP the biggest producer of copper, aluminum, and coal burned by power stations. The three commodities have reached records this year. ---steelguru