VANCOUVER (miningweekly.com) – The global commodity market is probably in for a slow, drawn-out recovery following the five-year bear market, S&P Global Market Intelligence director for reports on the metals and mining sectors Dr Chris Hinde said during a webcast on Wednesday.
According to S&P’s ‘State of the Market’ report, there was a mixed performance for mined commodities during the first three months of this year, following the “encouraging” price increases last year. The March quarter overall saw a healthy increase in the price of aluminium and steady improvements in the prices of gold, zinc and copper, but flat performances for nickel and iron-ore, and a significant price fall for coal.
“Activity in the mining industry reflects the global economy generally and industrial production in particular. This reflects the uncertain political and economic environment but, fortunately, China has started the New Year with its strongest performance in six quarters,” he noted.
The first 100 days in office of US President Donald Trump added to increased market uncertainty, but the US dollar remained strong during the quarter, and interest rates globally are rising.
In the first quarter, the mining industry benefited from a continued, but slow, improvement in the global economy, which generally pushed metals prices higher. Hinde characterised the US economy as “resilient”, with equities at record levels.
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