14.10.2013 - Commodities: In terminal decline or recovery ready?
The biggest challenge facing commodities companies next year will be managing oversupply, because it is this and not the slowdown in China's growth rate that is having such an impact on their share prices at the moment. Supply and demand are surely two sides of the same coin, I hear you say, and so, if the world economy picks up and there is a greater appetite for commodities the balance will be restored. But even in a world of greater demand, oversupply can exist, and it is this that is acting as a laggard for commodity stocks presently. And in a worst-case scenario, subdued demand coupled with oversupply could see share prices battered further still...............................................Full Article: Source
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