Reuters reported that BHP Billiton is cautious about short term growth in China, but has no plans to cut production and capital spending amid low prices since it is still bullish on long-term metals demand.

BHP, however said that it was being careful about its planned takeover of rival Rio Tinto amid falling markets and that any demands from EU competition authorities had to be manageable.

Mr Alberto Calderon COO of BHPB said that it expects copper prices to probably fall further, but oil prices were hovering close to an equilibrium based on marginal prices.

He added that "China Q3 economic results are going to be weak. They will be weaker probably than people think. I think that's probably going to spook the market. There is an impact in the short term and the medium term, but in the longer term these economies are still going to be demanding these commodities."

He added that "We haven't changed our capital plans. The fundamental supply and demand imbalance is probably going to be more acute in some year time."

Referring to the takeover of Rio, Mr Calderon said that BHPB was proceeding carefully with its planned all-share takeover of Rio, currently worth around USD 80 billion.

He further added that "In these types of markets your margin for maneuver reduces by definition. You have to be much more careful in these times. BHP was waiting for approval from European Union competition authorities, but any demands for divestments had to be reasonable. If they are not very manageable, you're in a world where it doesn't make sense adding BHP remained enthusiastic about the deal since the planned synergies make up a bigger percentage of the total benefits when metals prices fall."