1235 [Dow Jones] Commodity market trying to understand how much of price supercycle was "simply smoke and mirrors from undisciplined commercial bank lending and the attitude from central banks to money supply trends," says Citigroup analyst Jon Bergtheil; "until we understand that, we may not get a correct handle on our long-term metal prices and, hence, on our long-term NPVs, given that such lax lending practices are unlikely to occur again in the next ten years." If practices were key contributor to supercycle, and previous lending practices not returning in next few years, then supercycle won't either. Uncertain background implies miners may well recover in line with any equity market recovery but may not recoup relative-ground lost. Adds market witnesses one of fastest metal bull-market reversals on record but pace of reversal of Chinese IP trend re-enforces view that rapid reversals in copper, aluminum prices are no accident, and not merely caused by sudden reversal of money-inflows into commodity baskets.(EFB)
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- interesting info on mining supercycle
interesting info on mining supercycle
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