Metals outlook news

blog1.copper news.jpgMetals prices are projected to decline by 11 percent in
2016 due to slowing demand in emerging economies,
and increases in new production capacity. The largest
decline is for nickel, which is expected to fall by 22
percent as a result of large stocks and insufficient production cuts. Large price declines are also expected for
copper (down 15 percent) and iron ore (down 10 percent) due to expected gains in new capacity. Most
other prices are expected to fall moderately as markets
remain in surplus, with the exception of zinc which is
facing mine supply constraints. Markets are expected
to tighten over the medium term due to reduced investment in new capacity, rising global demand, and
environmental policy constraints.
Downside risks to the forecast include slower demand
in China, higher-than-expected production, and further cost reductions. Upside risks are centered on
stronger global demand and supply shortfalls from
project delays, operational disruptions, falling ore
grades, increased environmental constraints, and
more closures of high-cost capacity.

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