METALS MONTHLY FORECASTS
2010: A gap year for metal prices - VM Group
According to the VM Group Metals monthly publication 2010 is likely to be the year metal prices take a breather but, the impact of China cannot be underestimated.
Author: Geoff Candy
Posted: Monday , 01 Feb 2010
GRONINGEN -
2010 is likely to be an interregnum period for global metal prices after the heights reached last year and indeed the strong performance throughout the first decade of the new millennium.
This is the view of the VM Group expressed in its January edition of its Metals Monthly publication, put together in collaboration with Fortis Bank. And, while it admits that some of the strong performances put in by metals in 2009 had to do with the sheer volume of cheap money sloshing about in the system, fundamental factors too played a role.
"The most obvious change in 2009 that affected all metals was the realisation early in the year that this recession was not going to be another Great Depression. Economies were contracting in the developed world, but by the end of the year they were growing again, while the developing world, specifically China, wobbled but managed to stay on its feet, and was already growing again by Q1 2009," The group writes.
2010: A gap year for metal prices - VM Group
