S&P Revises Its Price Assumptions For Metals On Continuing Price Weakness

Standard & Poor’s Revises Its Price Assumptions For Metals On Continuing Price Weakness

We have updated our price assumptions for metals for 2016-2018 to reflect the current market conditions and outlook for each commodity. Commodity prices have collapsed for the third year in a row, falling by 10%-45% over the past 12 months. In particular, iron ore and nickel prices have fallen well below our previous assumptions. Metal prices have come under pressure because of fears of lower demand from China, combined with excess supply, although the degree of the excess varies by metal. Currently, China is responsible for about 40%-50% of global commodity consumption. Our price deck assumes that steel production in China will not recover in 2016, after it contracted by about 2% in 2015. We expect this assumption to have a knock-on effect on demand for all related commodities, including iron ore, coking coal, zinc, manganese, nickel, and other metals.


The Association of International Wealth Management of India (AIWMI) is a not-for-profit organization and a globally recognized membership association for finance professionals. AIWMI primarily focuses on the broad and strategic role of developing a more robust and forward-looking training infrastructure for the financial services sector and to promote more active industry involvement and collaboration in training and continuing education. AIWMI is offering advanced international certification programs along with a wide variety of high-quality executive education programs. AIWMI programs combine state-of-the-art knowledge and skills with practical experience and insights into the functioning of the financial sector. All AIWMI courses and educational events have an intense and pragmatic curriculum. Participants are exposed to the latest developments within the financial services sector. AIWMI plays a key role in guiding the development of the financial services sector. AIWMI works with key industry participants’ viz. the Government, the Regulators, the Industries/Associations, the Corporate, the Media and the General Public to achieve its objectives. Besides enhancing technical competence and professionalism in the industry, AIWMI organizes events and facilitates discussions to promote best practices in leadership and talent development in the financial sector with an aim to become Asia’s premier center of excellence for financial education.

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