Iron ore has been the newsmaker in the mining world over the past few weeks
Iron ore has been the newsmaker in the mining world over the past few weeks thanks to Brazil’s dam dilemma, but the commodity to watch over the rest of the year could be copper, a metal with its “stars aligning”, according to Morgan Stanley.
The big US-based investment bank said the next two years would see “a combination of favourable supply and demand dynamics, equity re-rating and asset scarcity” culminating in an attractive investment case for copper miners.
The annual migration of the mining industry to the seaside delights of Cape Town and associated talkfests such as the Mining Indaba conference was trumped this week by the return of iron ore as a hot commodity.
Gold continued to outperform the rest of the resources sector this week but a bounce could be brewing among unloved nickel stocks as a deficit of the metal grows and a Chinese de-stocking cycle comes to an end.
Gold stormed back to the top of the Australian investors’ hit parade this week as the rolling chaos caused by the US President, Donald Trump, infected bond markets with a shock fall in interest rates – driving investors to an overlooked safe haven.