Is This The End Of The Commodities Super-Cycle?

Sat, 06/09/2012 - 13:38 EDT - Seeking Alpha

By MetalMiner:
By Stuart Burns
The end of the commodities super-cycle has been predicted before — but could this time really be different? Many thought the collapse in prices after the Lehman Brothers crisis was the end of the boom that started earlier in the decade, but prices bounced swiftly back, some to near-record or even record highs. Two factors have driven the volatility and significance of commodity prices in recent years. First, one country has become a disproportionately large consumer, tying the fortunes of nearly all commodities to that country — no prizes for guessing which one. China accounts for as much as half the world’s demand for some commodities, such as iron ore. It has the power to shape almost single-handedly the direction of the commodities super-cycle, and by extension the price of iron ore and others. The other factor is the value of commodities. As an FT article pointsComplete Story »

Original article
Login to post comments

Commodities shock is 'awesome'? | Global mkts on tenterhooks
PARIS: A collapse in commodity prices prompted by a slowdown in the world's most voracious consumer, China, has rocked financial markets and sent Russia, Brazil and even Canada into recession. But for much of the world, the crisis may in fact be good news. China accounts for 40-50 per cent of the entire world's demand for commodities, according to a review of the price slump by credit rating agency Standard & Poor's.
Caterpillar, Eaton's Fortunes At The Whim Of Chinese Demand
By MetalMiner: By Stuart Burns We and others in our industry write often about the impact on metal prices and supply as a result of rising demand in the emerging markets and, in particular, China. China has, without a doubt, been the largest single driver of metal prices over the last ten years as the country’s phenomenal growth, much of it investment-led, has sucked in mind-boggling quantities of iron ore, coal, base metals and other commodities.
These are the winners and losers of the commodities crash
ReutersCommodities have already had a tough 2015 – but earlier this week, prices for everything, from crude oil to industrial metals such as iron ore and copper, plummeted even further.
The Commodities Super-Cycle And Metal Prices: Seeing The End (Part 1)
By MetalMiner: By Stuart Burns
Death of commodities boom forces miners to reconsider US$616-billion worth of deals
A proposed spinoff by BHP Billiton Ltd. of about US$15 billion in assets signals the start of a new round of disposals as the biggest mining companies adapt to the end of a boom for commodities. With Anglo American Plc fielding offers on a weekly basis for mines and Rio Tinto Group last month dumping Mozambique coal assets for a fraction of what it paid three years ago, producers are streamlining in the wake of China-led minerals demand that drove record profits as metals prices soared.
Here comes the Commodity Super cycle: Part 2
It's been a while since we last wrote an in-depth article on commodity prices. Most readers of our weekly column do know, however, that we are big fans of strategic investments in commodities, sometimes directly, but preferably through companies active in the sector. The reason for the break is mainly the absence of clear price action. In quiet times, there's often not much to report. The longer break is obviously also news in itself, as volatility in price and commodities used to go hand in hand. Why is it so calm out there?
Falling Iron Ore, Coal Prices: The Start Of A Steel Market Collapse?
By MetalMiner: by Stuart Burns
Lehman Five Years On: Gold Still Safe Haven As Financial System 'Insane'
Today’s AM fix was USD 1,308.25, EUR 984.46 and GBP 827.12 per ounce.Yesterday’s AM fix was USD 1,340.25, EUR 1,008.54 and GBP 847.46 per ounce. Gold fell $41.60 or 3.05% yesterday, closing at $1,323/oz. Silver slid $1.31 or 5.66%, closing at $21.83. At 3:01 EDT, Platinum fell $28.60 or 2% to $1,437/oz, while palladium fell $2.03 or .3% to $688.47/oz.
Lehman Five Years On: Gold Still Safe Haven As Financial System 'Insane'
Today’s AM fix was USD 1,308.25, EUR 984.46 and GBP 827.12 per ounce.Yesterday’s AM fix was USD 1,340.25, EUR 1,008.54 and GBP 847.46 per ounce. Gold fell $41.60 or 3.05% yesterday, closing at $1,323/oz. Silver slid $1.31 or 5.66%, closing at $21.83. At 3:01 EDT, Platinum fell $28.60 or 2% to $1,437/oz, while palladium fell $2.03 or .3% to $688.47/oz.
Challenging a Long-Held Assumption about Commodities
There’s no denying China’s massive economic growth over the past decade, as the country recorded an average GDP of more than 10 percent per year. In only seven years, China’s economy doubled; in 13 years, it tripled.

Main menu

Secondary menu

Is This The End Of The Commodities Super-Cycle?

Related

Latest

Markets Map

Follow Us

Secondary menu