By: Dr. Chris Hinde | 21 February 2018
The following research article is an excerpt of the State of the Market: Mining report for Q4-2017, a detailed analysis of mining industry performance that includes expert commentary from S&P Global Market Intelligence.
Last year, we saw the first annual increase in exploration budgets for nonferrous metals after four consecutive years of declining expenditure. Having plunged to an amount in 2016 that was barely one-third of the record high of US$21.5 billion allocated in 2012, the total amount recovered to an estimated US$8.4 billion in 2017. Moreover, by the end of December, the market value of the industry's listed companies had risen to US$1,559 billion, more than twice the level of January 2016.
Metals prices have benefitted from the improved global economy, and from a recently weaker U.S. dollar, in which most commodities are valued — in January 2018 the dollar’s tradeweighted value touched its lowest level since December 2014. Comments by Steven Mnuchin, the U.S. Treasury Secretary, that a weaker dollar was “good for trade” added to the bullish sentiment for natural resources.
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