Equities of major iron ore miners will outperform iron ore prices, which will remain on an average yearly downtrend over our forecast period to 2021. In spite of low prices, iron ore majors will be bolstered by their low cash costs and increasing operational efficiencies, which will lead to sustained output from their mines adding to the global supply glut over the coming years.
Chinese metal and mineral production growth will depend more on prices and fundamental factors than announced government reform targets over the coming years. Overall, we expect mineral and metal production growth in China to slow over the coming years compared to the last five years. Domestic environment-driven consolidation efforts by the government will remain more effective than consolidati...
Mine services companies will increasingly target better-performing commodities and focus on technology research and development to help miners streamline operations and cut costs as the weak mineral price environment continues to weigh on profit margins.
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Thanks, BMI Research