Metal Markets Adrift – With No Compass
Rarely has the market been swamped with such an array of conflicting economic and industrial data. China – hard landing or soft? Europe - has the bottom been put in? The US – improving economy to be short circuited by tapering? The booming equity and housing markets, which have been driven in large part by the low interest rate environment, have many proclaiming the next “bubble”. Any wonder why the commodity complex and related equities continue to drift sideways. While the supply and demand balance in the short term has been polarized into opposing camps there is no question what lies ahead in the mid term. The evangelistic mantra being espoused by the new leadership of the mining world will undoubtedly create the next “super cycle”. The presentation will attempt to address some of the economic truths in the conflicting noise, key drivers of future commodity prices, selected price forecasts, and the outlook for an industry that is becoming increasingly marginalized by investors.