Basic Materials: China's Investment-Led Growth Model Has Run Its Course
We don't see the recent share price declines for metals and mining producers as a buying opportunity on average.
Quarter-End Insights
Mentioned: Alumina Ltd (AWC)
, Newcrest Mining Ltd (NCM)
, Stora Enso Oyj (STERV)
, UPM-Kymmene Oyj (UPM)
, Alumina Ltd (AWCMF)
, Newcrest Mining Ltd (NCMGY)
, Cloud Peak Energy Inc (CLDPQ)
, The Mosaic Co (MOS)
, Stora Enso Oyj (SEOFF)
, CF Industries Holdings Inc (CF)
- Despite significant share price declines for metals and mining producers, we believe real value remains relatively scarce, with Vale a notable exception.
- Global oversupply continues to weigh on the steel market, and material improvement looks to be several years away.
- Since it looks increasingly likely that the Eastern European potash cartel will reform, we've raised our long-term potash price forecast and fair value estimates for potash producers in our coverage universe.
Already a member? Sign in.
Jeffrey Stafford does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.