Fitch Ratings has released its 2009 Global Base Metals Outlook which reports that while demand is off substantially, the Rating Outlooks on the majority of the companies in Fitch’s base metal coverage are Stable.
Fitch notes that severe demand declines for most metals in the second half of 2008 have resulted in rising stocks and falling prices. Producers have been taking production off-line and slowing expansion spending, but not enough to increase prices. In some cases, spot prices are lower than the marginal cost of production. The desire to conserve cash results in a focus on working capital management, and Fitch expects destocking to take some time in this lower demand environment….. Full Press Release: Source