0603 GMT [Dow Jones] BMO Capital Markets says China will still drive demand for commodities going forward given its $1.8 trillion in foreign reserves, intention to ease monetary policy, surging urbanization, growing middle class and political will to keep economy running smoothly. Tips China GDP growth in 9%-10% range in 2008/2009. "The likelihood that development will continue to move into the interior, where propensities to consume commodities are currently low, is another factor suggesting that the Chinese should fortify global demand for all things commodity related." Warns that base metals prices could remain subdued through the early part of 2009 due to weakness in Europe, Japan, U.S., but thinks China effect, demand from other BRICs, will gradually offset this. Adds, rising cost structures should also help ensure that metals prices do not follow a traditional boom/bust pattern. (JAC)
NSL Price at posting:
2.7¢ Sentiment: Buy Disclosure: Held
