Metals & mining: Lacklustre China weighs on commodities, Bernstein says

Boliden AB

06/04/2023 14:24

** Bernstein expects commodities to play a smaller role in
mining industry's Q2 performance due to China's lacklustre
recovery, with M&A talk to dominate the quarter
    ** China's property sector plays a key role in global
commodity markets, but is yet to show signs of strong recovery,
the broker says
    ** Still, iron ore prices have been "remarkably strong", it
adds
    ** "At these prices, all three of our iron ore names ... are
printing money," the broker says about Rio Tinto  RIO.L , BHP
Group  BHPB.L  and Vale  VALE.N 
    ** It adds that even with a smaller role, commodities will
drive sector performance as always
    ** It also says entry point for gold equities could be close
— "by the time the Fed signals the end of rate hikes, you will
have likely missed the ideal entry point"
    ** Platinum group metal (PGMs) prices are dragged by weak
car sales, Bernstein says, as most of PGM demand comes from
autos

 (Reporting by Dina Kartit)
 ((dina.kartit@thomsonreuters.com))