Commodity super-cycle isn't dead, it's just a correction, says Westpac
Singapore
THE glut in commodities that dragged prices to their lowest since 1999 may take more than two years to clear as lower energy prices help spur a period of cheap freight, according to Westpac Banking Corp, which said the selloff is a downturn within a continued super-cycle.
Lower energy prices are eroding costs and cutting shipping rates, enabling producers to export to China on aggressive terms, Paul Gardner, global head of structured commodity finance at Westpac, said in an interview in Singapore. The excess supplies will take about 12 to 24 months to start clearing, paving the way for a rebound in prices, according to Mr Gardner.
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