Australia’s Bureau of Resource and Energy Economics forecasts exports will rise 8% next year as commodity prices bounce.
BREE noted that a recent increase in cancelled warrants – a proxy for metal about to leave warehouses – relative to total London Metal Exchange stocks “is consistent with an expectation of robust growth in the demand for base metals over the near term in China”.
For Australia, investment inflows are still a more important factor than production but commodity prices and Chinese growth remain the key.
