Otmane El Rhazi from Mining Weekly | Ferrous Metals Home.
The contraction in base metal prices and related commodities, which have shown a declining trend since 2013, has accelerated in recent months thanks to a culmination of macro and industry specific factors, prompting risk management firm Moody's Investors Service to lower its commodity price assumptions. The firm on Thursday explained that a perceived sharper than expected slowing of the Chinese economy, limited supply response from commodity producers, overcapacity in global steel markets, reduced energy costs and the strong dollar were creating “unprecedented adverse” conditions for these commodities, driving prices down to levels close to those seen in the 2008/09 financial crisis, but with more drawn-out recovery prospects.
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