CAPITAL MARKETS

Barriers to supply cuts

SUPPLY cuts have been a theme of late with nickel, zinc and copper producers (mainly in China) indicating they will reduce output in response to soft demand and falling prices. Macquarie though has its doubts about this strategy’s possibilities.

Michael Quinn
Barriers to supply cuts

“The market actions being proposed by metals and mining producers, particularly those in China, are looking ever more desperate to us,” Macquarie said last week. “Given where commodity prices currently...

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