https://www.engineeringnews.co.za

JP Morgan sees commodity supercycle already kicking off

11th February 2021

By: Bloomberg

  

Font size: - +

Oil and other commodities have probably entered a so-called supercycle as a post-pandemic economic rebound and swelling inflation spark expectations of rising demand, according to JPMorgan Chase & Co.

A new multi-year boom appears likely, given investor desire to hedge against inflation and a weaker dollar as central banks adopt “ultra-loose” policies and governments boost spending.

Prices could also jump as an “unintended consequence” of the fight against climate change, which may constrain oil supplies while boosting demand for metals used in the construction of new renewable infrastructure, batteries and electric vehicles, JPMorgan analysts led by Marko Kolanovic said in a report on Wednesday.

“The past decade was marked by low growth and low inflation,” Kolanovic and company wrote. “Bonds, bond proxies and secular growth stocks were in a bull market, while commodities, value and cyclical stocks performed poorly. We believe that the tide on yields and inflation is turning.”

Over the past century, there were four commodity supercycles. The last one, driven by the economic rise of China, started in the 1996 and peaked in 2008, the analysts wrote.

Edited by Bloomberg

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

EKATO Africa
EKATO Africa

Established in 1933, EKATO is the world leader in agitation technology, supplying agitators for processes and applications such as chemicals and...

VISIT SHOWROOM 
MBE Minerals SA (Pty) Ltd
MBE Minerals SA (Pty) Ltd

Your global lifecycle technology & service partner for materials & minerals processing equipment for coal, iron ore, copper, manganese & other...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.051 1.136s - 140pq - 2rq
Subscribe Now