Although a strong start to the year could be sustained in Q112, we expect base metals to experience a difficult and volatile year as macro headwinds continue to weigh on equities and metals. Below we outline our key views on the metals sector in 2012.

China’s hard landing will weigh on global metal demand, particularly for metals tied to fixed capital investment. Whilst we are below consensus regarding metal prices in 2012, we are not calling for a crash and expect prices to remain elevated on a historical basis.

Copper and tin will be outperformers in the metals complex Iron ore, lead and zinc, will lag the metals complex due to record inventories and a significant slowdown in Chinese economic activity. Out of the laggards, we expect lead to outperform zinc as it is less tied to fixed capital investment in China.

via Latest Key Stories on World Economy.

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Thailand’s Online Gambling Industry Size in 2022

Many Asian countries have already decriminalized casino gaming, like Singapore, Philippines, Cambodia end Malaysia, and trends suggest that Thailand may follow suit. Until then, Thai residents have to travel to countries that permit online gambling, like neighbouring Cambodia, or play online casino games on offshore casinos.

Thailand eyes rice hike plan with Vietnam

Thailand’s move could exacerbate the ongoing food inflation: the United Nations estimates global food prices have risen over 34% in the past year