The commodities industry downturn from 2013–2016 had a massive effect on companies in Australia and around the globe – with most mining companies going into survival mode. Since mid-2016 though, the market has been in a strong recovery cycle and, some say, it has now reached its peak.
Where we are now is really at an inflection point and, depending on where the global economic cycle moves, commodities will follow accordingly. There are exciting opportunities emerging as well, coming from new technologies especially that can help drive more sustained growth for the industry.
Ernie Thrasher, Chief Executive Officer at Xcoal Energy & Resources explained that “we are at a point where either the global demand will sustain this commodities cycle, or we’re at a point where the recovery cycle has reached its end and we may see another downturn up ahead.”
Even those in the market are unsure of what will happen moving forward, but are focused on the need to recognise that both options are on the table right now.
Scott Ryall, Principal at Rimor Equity Research describes this as a time of “cautious optimism” where companies can think about and plan for the medium to long term more so than they’ve been able to for a while.
For the rest of this article: https://www.australianmining.com.au/news/commodities-cycle-now-reached-peak/