Unprecedented infrastructure-focused stimulus packages add a new layer of incremental demand growth to already generally bullish commodity fundamentals, and in recent quarterly conference calls the world’s mining majors boasted of record revenues, cash flow and returns to shareholders.
In recent quarterly conference calls the world’s mining majors boasted of record revenues, cash flow and returns to shareholders
Surging prices are leading some to believe that the market is entering a new commodity supercycle – when prices climb for years – if not decades. The analogue is the largely Chinese-driven supercycle of 2002-2008, when the country pushed industrialization and urbanization, and its gross domestic product expanded annually at a percentage rate in the low to mid-teens.
But most analysts The Northern Miner interviewed are not so sure we are there just yet, with some arguing a real supercycle is only likely to emerge in about three to five years from now as the transition to the green economy firmly takes hold.
