From Real Time Economics, Sept. 14:
Prices for iron ore, nickel and other metals have been in a multiyear slump amid sluggish growth in advanced economies and weakening expansion in emerging markets.
Don’t expect the trend to reverse anytime soon. Despite forecasting a rebound in worldwide output next year, the International Monetary Fund says China’s ongoing slowdown and more than ample production capacity will push down prices still further.
“The balance between weaker demand and steady increase in supply suggests that the metals market is likely to see a continued glut,” say two top IMF commodities economists, Rabah Arezki and Akito Matsumoto, in a new blog post Monday.
That’s because China, which accounts for half of the global base-metal consumption, is slowing at a faster pace than expected....MORE