BHP Full-Year Profit Plunges 81% on Price Collapse

The video discusses the end of a commodity slump, focusing on oil and iron ore. It highlights the volatility in prices and the potential for short-term pressure. Despite this, companies like BHP Billiton are still generating cash and paying dividends. The discussion shifts to the importance of cash costs and the need for commodity prices to rise. The elasticity of supply and demand is examined, with a focus on BHP Billiton's strategic decisions regarding cap ex and market positioning. The video concludes with an analysis of China's economic impact on the mining industry and the need for supply adjustments.

Discuss the expectations for China's GDP growth and its implications for the commodity market.

What challenges do mining companies face in adjusting to the new reality of commodity prices?