Miners warned to brace for pain as demand slows

[wren]

It looks like metals demand from China might drop considerably next year.

Miners warned to brace for pain as demand slows

 

Sarah-Jane Tasker | September 12, 2009

 

AUSTRALIAN miners should brace for further pain next year and not bank on being pulled along by China's robust economy, as the Asian giant's hunger for commodities begins to slow.

 

Michael Jansen, JPMorgan's head of commodities research, said the potential for disappointment on China's increasing demand aiding a full recovery in the mining sector was "huge".

 

"A large part of the capacity utilisation recovery in China is built on access to cheap money and widely available money, and that isn't going to be the situation throughout 2010," he said in an exclusive interview with The Weekend Australian.

 

"Next year, the ability to finance all that importing and general pipeline activity is going to be a lot less evident."

http://www.theaustralian.news.com.au/busin...7-36418,00.html

 

Could this adversely affect miners' stock prices?

[id5]

It looks like metals demand from China might drop considerably next year.

 

http://www.theaustralian.news.com.au/busin...7-36418,00.html

 

Could this adversely affect miners' stock prices?

CAD and AUD reversal as well?

[drbubb]

It looks like metals demand from China might drop considerably next year.

http://www.theaustralian.news.com.au/busin...7-36418,00.html

Could this adversely affect miners' stock prices?

 

We could be seeing the beginning of the next Deflationary wave

 

[wren]

We could be seeing the beginning of the next Deflationary wave

I don't own any stocks at present.

 

But I'm interested in getting some miners some time.

 

Probably the HUI to start off with and then I'll have to research junior miners.

 

Out of fear of a stock market downleg I think I might watch and wait until early next year.