Eco Metals Recovery

37 MARKET OUTLOOK ▲ With balance sheets repaired, the outlook for mining commodities is brighter than 12 months ago. The industry now looks to be in a position to begin investing again to offset natural mine depletion and for longer-term growth. ▲ Helped by solid global economic growth, metals have returned 24% this year, according to the S&P GSCI Industrial Metals Total Return index. ▲ China will remain the big influence on commodity markets. Beijing’s pollution crackdown and its clampdown on excess capacity should provide a powerful prop for Gold ,Silver, aluminium, steel and iron ore. It will also help offset the effect of tighter monetary policy and slowdown in the residential property market. ▲ In steel and precious metals, a shift away from environmentally polluting mills to ones that are more efficient will fuel a need for high-grade metals, boosting the profitability of the big suppliers such as BHP Billiton, Vale and Rio Tinto. ▲ In gold, prices are forecast to rise further against the US Dollar this year and could peak at $1450 per ounce according to leading analysts. Although further rate hikes by the Fed are a headwind, they are already largely priced in ▲ Geopolitics could also prove bullish, since a trade war between the US, China and other states can no longer be ruled out, potentially damaging economic growth worldwide and spurring demand for gold as a defensive asset, and other precious metals. Sources: http://www.mining.com/world-mining-equipment-market-to-reach-156-billion-by-2022-report/ https://www.spratings.com/documents/20184/1481001/2018_ITT_wrap_up.pdf/e702233d-cea4-4db4-a3f9-3f72c17b103b S&P GSCI Industrial Metals Total Return index