The world's largest mining company BHP Billiton: We do not cut cut nor insured

Commodity prices continued low located nearly six years, some of the goods giant was forced to cut production to deal with. The world's largest mining company BHP Billiton (BHPBilliton), but said the company insisted on not cut, and the cut may not be able to push up prices.

BHP Billiton marketing president of worldwide marketing Bai Weicheng (ArnoudBalhuizen) at a conference in London, although some competitors suffered the impact of low commodity prices, but BHP Billiton will not be cut because of its related business for the company cash flow.

Bai Weicheng said, "We distinguish with some competitors is that we have a large, front-line and high-margin business. Clearly, we will not shut down but also bring lucrative cash business."

In his view, the competition is cut normal economic considerations, but to push up the price cut is not necessarily good. "If the business at a loss, to boost the price and there is no benefit, this service should not exist in this market."

In addition, although commodity prices have fallen, BHP Billiton has also increased the production of major products, that the low-cost assets will help them get a larger market share, and this is costly difficult for competitors to match.

Wall Street knowledge previously mentioned, beginning on international commodity giant Glencore announced that its two flagship copper mine in Africa will be discontinued 18 months, which would lead to its copper production by about 20 percent, the biggest year of production. After just one month, Glencore announced the world's zinc production will be reduced by 50 million tons, equivalent to about one-third of its annual production.

And Bai Weicheng view echoes, some analysts also believe that the oversupply in the market, shut down excess capacity and will not boost prices.

Prior to Goldman Sachs, citing Wall Street knowledge viewpoint, in view of the world's largest buyer, China is committed to the transition from investment-led economic model, its demand for metals will be affected, after Glencore cut this wave of commodity prices rebound short-lived.

In addition, the world's second largest mining giant Rio Tinto (RioTinto) also said that despite the downturn in copper prices, still insist on not cut. Rio Tinto copper and coal business leader Jean-SébastienJacques that suppress production, leaving the market space for higher-cost competitors, is illogical, even if the current copper price did not reflect the "fundamentals", the company will not reduce copper Yield. (Wall Street knowledge)