The Rating Outlook for the global mining sector in 2020 remains Stable, as slower demand for some commodities is counterbalanced by supply restrictions for others, Fitch Ratings says. A weakened macroeconomic environment has caused demand and prices for some commodities to fall, which the ratings agency expects to continue over the medium term, particularly aluminium and copper, but also thermal coal. In contrast, the iron ore market is said to remain in deficit for now amid supply restrictions in Brazil, while nickel prices have soared on Indonesia’s plan to ban nickel ore exports from 2020. Increased demand for gold, meanwhile, reflects waning risk appetite in the capital markets, Fitch says. Most mining company’s ratings have ‘stable outlooks’ and are comfortably positioned within their rating sensitivities. This follows efforts to move to more conservative balance sheets in the aftermath of the downturn of 2015 and 2016.
