Global growth is on a tear, and that can only be positive for metals prices. That’s the message coming from the industry ahead of LME Week.
For the first time in years, optimism is widespread among traders, smelters, miners and brokers gathering in London, buoyed by a combination of strong growth across the world’s key demand centers, supply curbs in China and a return of investor interest.
“The global economy looks much better than it has done probably since the crisis, maybe before that,” said Saad Rahim, chief economist at Trafigura Group Pte, the second-largest metals trader. “I’m pretty bullish.”
The upbeat mood shows how much has changed in two years, when the commodities collapse brought the titans of mining to their knees. In September 2015, Glencore Plc was forced to raise money when its stock was cratering, an effort to sooth investors frightened by a staggering debt load.
Now, the mining giant has regained its swagger, reaping profits and inking deals worth billions for natural resource assets around the world. On Monday, the company raised its profit forecast for its trading division, citing strong third-quarter performance.
For the rest of this article: https://www.bloomberg.com/news/articles/2017-10-30/everyone-s-a-metals-bull-as-the-global-economic-engine-fires-up