On the back of a strong Chinese demand triggering record output of essential commodities, BHP Billiton reported a rapid rise in fourth-quarter production.

However, the giant producer of resources has warned that caution has to be maintained as far the short-term outlook of its commodities goes, mainly because of the uncertainties that currently loom over the speed of economic recovery in developed nations goes. Also, the outlook depends on China's moves to constrain liquidity.

For three months up-to December 31, 2009, BHP's production of iron ore hiked by 11% to 32.45 million tons, as compared to the previous year's same quarter. The figures were reported by the miner on Wednesday.

"During the December quarter, we saw strong price recovery across the commodity suite driven by demand in China and restocking in the developed world", the company said.

With the third quarter's exceptional production, the half yearly production has managed to hit a record 62.56 million tons. Production of petroleum products also climbed 16% to 38.36 million Barrels of Oil Equivalent.