Whether another supply slump emerges in base metal complex and commodities in general, depends on exogenous factors, particularly Chinese liquidity, Standard Bank suggests.
by Dorothy Kosich, MineWeb.com
The base metals market has largely come to terms with China’s slower growth outlook as the base metal complex is now stabilizing “and range trading heading into the summer following several months of downwards trending prices,” Standard Bank recently noted.
Commodities strategist Leon Westgate already downgraded Standard Bank’s annual forecasts last month, assuming that “prices were already bottoming, that volatile but generally sideways trading would characterize the summer ahead of a stronger year-end.”
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