There’s a mad rush on to call the commodities bottom. From Domainfax:
“We don’t necessarily think we’re at the start of a huge bull market,” says Julian Babarczy, head of Australian equities at Regal Funds Management. “But we do feel like the bottom of the cycle has been reached and that we’re back in a more traditional commodity cycle where we’ll have volatility based on short-term supply and demand signals.”
“After the heady days of the super-cycle upswing, when rising prices supported profitability almost irrespective of costs, the past couple of years have seen a clear focus on cost reduction,” writes Paul Bloxham, chief economist at HSBC Australia, who expects further supply consolidation and solid demand growth to drive modest prices rises in coming quarters.
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