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In the Pits?
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In the Pits?

Mining and Metals Firms and the Slowing of the Supercycle

Christopher Clague
EIU, 2013
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Editorial Rating

8

Qualities

  • Innovative

Recommendation

The days of frenetic growth in the metals and minerals markets are gone, but demand from global urbanization continues apace. The current slump means the industry is now backpedaling on investment. But Economist Intelligence Unit analyst Christopher Clague reports that, while unmined mineral and ore deposits are becoming increasingly costly to extract, miners that spend now on innovation will have a competitive advantage come the inevitable upswing. getAbstract recommends this compelling, cogent argument to those in the mining industry as well as to commodities traders and investors seeking a valuable insight.

Take-Aways

  • Although commodities prices have fallen since their peaks in 2011, the current “supercycle” – a “sustained period of rising demand and prices” – isn’t over.
  • While growth has slowed, particularly in China, urbanization in China and other emerging economies will drive demand, and prices, upward.
  • Due to the downturn, most mining firms are cutting back on capital expenditure, though some are seizing opportunities to garner a better position come the upswing.

About the Author

Christopher Clague is a senior analyst on the Economist Intelligence Unit’s Asia Custom Research team in Tokyo.

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