| Investec has cut its base metals price forecasts for 2016 and 2017, with zinc and nickel in particular now seen sharply lower than in its previous report at the end of October. "Falling intensity of commodity consumption in China, a strong US dollar and significant overproduction in many commodities, lead us to highlight the disincentive nature of our revised commodity price forecasts from 2016 onwards," the investment bank said in its latest mining sector review.
Investec defined disincentive prices as "exceptionally low prices maintained long enough to force out excess supply in order to rebalance markets and deter new investment."..............................................Full Article: Source
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