BHP Billiton (BHP) has warned of short-term downward pressure on commodity prices, but expects more balanced global growth over the longer term.
In the group's annual review, BHP chairman Jac Nasser noted increased supply has exerted downward pressure on many commodity markets and said the miner expects that trend to continue over the short term.
"While lower rates of investment across the industry will ultimately lead to more balanced markets, all resources companies will need to improve productivity and be flexible enough to adapt to change in this more challenging environment."
The mining giant also said it expects more balanced global growth over the long term as China continues to develop its economy and large developed economies, such as the United States, grow despite fiscal challenges.
"We expect the rebalancing of the Chinese economy to be significant in terms of the nature of domestic demand, as well as the types of goods and services the economy will produce," the report stated.