S&P Expects Metal Prices Will Remain at Historic Highs
Source: Mineweb.com (5/8/07)
Standard & Poor's recently asserted that strong demand and weak supply has strengthened the credit quality of mining and metal companies globally, and does not foresee "any quick changes in either of these fundamentals."
In recently published research, S&P Primary Credit Analyst David Wyss noted that "the world's economy depends on raw materials, and as long as demand is strong, we expect metal prices to stay at or near historic highs. ...Barring some unforeseen economic dislocation, metals and the companies that mine and refine them seem poised to keep chugging ahead with economic growth into the foreseeable future."...
While rising metal prices will only have a minor impact on U.S. economic output, Wyss forecasts that producer nations-such as Chile, the DRC, South Africa and Zambia-"should definitely see a boost" in their domestic economies.