And so the great sell side capitulation on miners begins again with Macquarie:
“Contracting demand for most commodities and falling cost curves has driven a material change to our outlook for commodity prices…We now see the need to significant cuts to supply to bring most commodities back into balance, and given the cost of closures, we are now expecting to see further declines from current levels for coking coal, thermal coal, manganese, alumina and aluminium.”
And the kicker? With perhaps the exception of gold, the new destroyed prices are all FAR TOO HIGH!
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
