Mineweb reported that BHP Billiton (NYSE:BHP) has issued a warning to global commodity markets that oversupply will sustain.

As quoted in the market news,

Tumbling prices are creating a testing environment for commodity producers, while demand is slowing to more routine levels amid a transition in China’s economy away from investment-led growth, the world’s biggest mining company’s Chief Executive Officer Andrew Mackenzie said Wednesday.

Chief Executive Officer Andrew Mackenzie stated:

In many markets, recently installed low-cost supply can now be stretched to meet growing demand. Incremental supply, induced during periods of higher prices, will take longer to absorb and this means over-supply may persist for some time.

Click here for the full Mineweb report