{"id":1155564,"date":"2019-12-13T16:12:52","date_gmt":"2019-12-13T22:12:52","guid":{"rendered":"https:\/\/www.mining.com\/?p=1009252"},"modified":"2019-12-13T16:12:52","modified_gmt":"2019-12-13T22:12:52","slug":"bearish-outlook-for-metal-prices-for-2020-report","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1155564","title":{"rendered":"\u201cBearish\u201d outlook for metal prices for 2020 \u2014 report"},"content":{"rendered":"<p>In its latest global industry overview, <em>Fitch<\/em> analysts maintain<br \/>\na bearish outlook on metal prices as trade tensions and a weak demand outlook<br \/>\nremain \u201cfirmly in place.\u201d <\/p>\n<div class='d-flex justify-content-center d-xs-block d-sm-block d-md-none'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>Fitch says among key themes for 2020 are ongoing macroeconomic risks<br \/>\nand weak demand, which will keep prices suppressed over the year. The firm<br \/>\nforecasts prices for most metals to weaken, as macro risks feed into poor<br \/>\nsentiment for commodities. <\/p>\n<p>The ongoing trade dispute is having a tangible impact on economic growth and demand for metals in key consumer China, leading to a loosening of fundamentals which <em>Fitch <\/em>analysts believe will materialise further in 2020. (Since the report was released, Phase 1 of a trade deal between China and the US was reached.)<\/p>\n<p>With an increasing focus on sustainability among investors and host governments, <em>Fitch<\/em> expects miners will accelerate the shift to more environmentally sustainable business practices, which will work to counter greater social and regulatory pressure as well as to gain an advantage over lagging competitors. <\/p>\n<figure class=\"wp-block-image\"><a href=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/12\/Fitch-graf-2.jpg\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/12\/Fitch-graf-2-1024x544.jpg\" alt=\"\" class=\"wp-image-1009263\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/12\/Fitch-graf-2-1024x544.jpg 1024w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/12\/Fitch-graf-2-300x159.jpg 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/12\/Fitch-graf-2-768x408.jpg 768w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/12\/Fitch-graf-2.jpg 1064w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n<p><em>Fitch<\/em> expects capital<br \/>\nrestraint among miners to continue amidst the subdued price environment across<br \/>\nmetals, and maintains a subdued price environment will place pressure on<br \/>\nminers&#8217; profitability and inhibit miners&#8217; appetite to significantly expand<br \/>\ncapital expenditures over the year, despite a lower interest rate environment. <\/p>\n<p>On a more positive note, <em>Fitch <\/em>analysts<br \/>\nexpect more mergers and acquisitions (M&amp;A) in the gold mining space in<br \/>\n2020, especially among mid-tier producers, following on from major deals<br \/>\nannounced in 2018 and 2019. Consolidation and risk sharing is forecast to continue<br \/>\ndespite the operating environment for gold miners being at its most positive<br \/>\nsince the 2012-2013 gold price collapse. <\/p>\n<p>Demand for lithium and cobalt is set to improve next year following a<br \/>\ndisappointing 2019, as low prices attract purchases from EV battery<br \/>\nmanufacturers and Chinese EV sales hold strong.<\/p>\n<p>Fitch expects to see minor growth in capital expenditure in 2020, but says<br \/>\ngrowth will remain subdues due to a neutral \u2013 bearish short term price outlook.\n<\/p>\n<p><em>Read the<a href=\"https:\/\/www.fitchsolutions.com\/products\/sector-intelligence\"  rel=\"noreferrer noopener\" aria-label=\" full report here.  (opens in a new tab)\"> full report here. <\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>But demand for lithium and cobalt is set to improve next year.<\/p>\n","protected":false},"author":47,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[2849,949,369],"tags":[],"class_list":["post-1155564","post","type-post","status-publish","format-standard","hentry","category-intelligence","category-markets","category-miningcom"],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1155564","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/47"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1155564"}],"version-history":[{"count":3,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1155564\/revisions"}],"predecessor-version":[{"id":1155645,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1155564\/revisions\/1155645"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1155564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1155564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1155564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}