Macquarie has upgraded its industrial metals price forecasts. They cite demand as driving prices higher over the past six months.
- Chinese construction activity remains in a positive trend
- The Chinese government's infrastructure spend instigated in Q1 of 2016 is likely "to persist through the next political transition in 2017"
- "We continue to increase our 12-month forward demand outlook across industrial metals as the Chinese government prolongs its more commodity-intensive phase of growth
- This creates a relatively short, demand-driven window of opportunity for commodity prices and commodity producers."
Business Insider have Macquaries updated forecasts, here
I posted earlier this week on Westpac's view for commodities, they are not nearly so sanguine: Westpac economist says AUD/USD heading towards downside targets
