[Snapshot]: State of the Market: Mining

March 09, 2019 | By: Mark Ferguson and Robert Anders

The following snapshot is an excerpt of the Q4-18 State of the Market: Mining report and March issue of the Industry Monitor report. They provide detailed analysis of mining industry performance that includes expert commentary from S&P Global Market Intelligence.

Year ends with sustained weakness

The fourth quarter of 2018 was marked by sustained weakness in most areas of the market. Commodity prices and stocks both saw selloffs. The GSCI fell to an 18-month low, with key industrial metal copper below US$6,000/t and nickel losing 18% over the quarter. The S&P/TSX Global mining index fell to 67.77 at year-end. The mining industry's aggregate market capitalization consequently fell 8% over the quarter to its lowest since the end of the second quarter of 2017.

At the turn of the year, pessimism turned to optimism due to increased hope for a negotiated settlement avoiding U.S.-China trade-dispute escalation and a rally by some of the base metals. Commodity markets were shocked, however, by the events of Jan. 25, when Vale SA's Corrego do Feijao tailings Dam 1 burst in Minas Gerais, Brazil. The human tragedy is clear and has not yet fully run its course.

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[Snapshot]: State of the Market: Mining

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