Goldman Forecasts Lower Commodity Prices as Super-Cycle Ends. By Glenys Sim Jul 16, 2014 8:06 AM GMT+030 Commodities from iron ore to copper and Brent crude are expected to drop over the next five years as global supplies increase, according to Goldman Sachs Group Inc. There will be substantial declines in some metals, energy and bulk commodities, analysts including Chief Currency Strategist Robin Brooks wrote in a report. The period of continued year-on-year price rises for most commodities is over, they said in the report, which was dated yesterday. Banks from Citigroup Inc. to Deutsche Bank AG have called an end to the commodities super-cycle, when China’s surging demand for raw materials combined with supply constraints at mines and wells to more than double prices in the 12 years through 2010. Commodities rallied this year from three straight annual losses as a lack of rainfall in Brazil lifted coffee 46 percent and a ban of ore exports from Indonesia spurred a 39 percent increase in nickel. “A prolonged period of elevated commodity prices has catalysed a supply response,” the Goldman analysts wrote. “We do not expect a collapse in global commodity prices. But we do anticipate substantial declines across a number of key commodities.” Copper was forecast to drop to $6,600 a metric ton over five years, while iron ore was seen at $80 a ton and Brent may be $100 a barrel, according to Goldman. The steelmaking raw material was at $98 a dry ton in Tianjin, China, yesterday, and copper traded at $7,132.75 on the London Metal Exchange today. Brent was 7 cents higher at $106.09 on the ICE Futures Europe.
Posted on: Wed, 16 Jul 2014 05:30:57 +0000
Trending Topics
Recently Viewed Topics
© 2015