Raw material prices recover tentatively as firms cut capex

London

SHARP cutbacks in mining and energy corporate capital expenditure and lower supplies have brought about a tentative recovery in raw material prices.

Indeed, despite exceedingly poor results of Shell, Rio Tinto, Anglo American and other major raw materials companies, their share prices have surged. Brent oil is up by 25 per cent from its depressed low while copper, aluminium, zinc, lead, nickel and tin have risen between 6 and 20 per cent, depending on the metal. Iron ore prices have also risen by 4 per cent.