BHP, Rio profits to shine SYDNEY

BHP Billiton and Rio Tinto, the world’s two biggest miners, are set to report billions of dollars more in profits thanks to robust global demand for minerals that is showing few signs of slowing.

Shares in both companies rose to record highs in May when prices for copper, zinc and other industrial staples reached all-time peaks on concerns that demand will outrun supply. “In several instances, such as in copper, nickel and zinc, this backup in supply is serving to keep markets tougher and consequently commodity prices higher for extended periods,” Credit Suisse said in a note to clients.The shares have since retreated as metal prices backed off amid volatile buy-sell cycles, but analysts said predictions had yet to come true that commodities prices would fall as the pace of growth in China slows and as slowing housing and car markets in the US threaten growth rates.”If the big consumers of metals were to drop off, there would be an impact on prices and in turn profits, but right now no one seems to be worrying about demand,” Commonwealth Bank of Australia commodities strategist Tobin Gorey said.So far this year, BHP Billiton stock has jumped 21 per cent and Rio is up eight per cent.Nampa-Reuters”In several instances, such as in copper, nickel and zinc, this backup in supply is serving to keep markets tougher and consequently commodity prices higher for extended periods,” Credit Suisse said in a note to clients.The shares have since retreated as metal prices backed off amid volatile buy-sell cycles, but analysts said predictions had yet to come true that commodities prices would fall as the pace of growth in China slows and as slowing housing and car markets in the US threaten growth rates.”If the big consumers of metals were to drop off, there would be an impact on prices and in turn profits, but right now no one seems to be worrying about demand,” Commonwealth Bank of Australia commodities strategist Tobin Gorey said.So far this year, BHP Billiton stock has jumped 21 per cent and Rio is up eight per cent.Nampa-Reuters