Goldman Says Only China Can Rescue Metals as Miners' Cuts Won't
- Mine supply cuts confirm bear case for metals, Goldman says
- Metals demand in top user slips again in October, bank says
Have Commodities Pushed Miners to a Tipping Point?
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Only a substantial rise in Chinese metals demand is likely to be sufficient to balance copper and aluminum markets, according to Goldman Sachs Group Inc., which said recent output cut by miners aren’t large enough to rescue prices. Copper fell to the lowest since 2009.
“While recent supply cuts in copper and aluminum may appear to bring the markets closer to balance, the cuts in our view are not sufficient to do so,” analysts including Max Layton said in a report received on Friday. “It is our view that the supply cuts confirm the bear case for these metals.”