bhp preso china big picture and copper

GSJBW feedback from BHP’s preso by Clinton Dines (President, BHP China) and Robin Bordie (Economist, BHP China) that focused on long term “big picture”. The following key comments made in respect of copper: at least 80% of all copper consumed in China, stays in China. BHP est that less than 20% of Chinese copper consumption is re-exported either directly or indirectly. As far as BHP is concerned China has a demand issue not a supply issue – we could sell more if we had it. Trend growth in metals demand of 8-10% pa is sustainable through to 2015.

Other LT remarks: Govt doing a good job managing the Chinese economy – expect a gradual easing in headline growth rates achieved through wide rand n policy tools.

Once the fear reduces we're back to the fundamentals which look great for OXR. I'd expected after today's finish at a low this could happen sooner rather than later.