Mining and metals firms and the slowing of the super cycle

Companies in the industrial raw materials sector are facing a new era. For years, miners of resources such as iron ore, base metals and coal enjoyed a boom driven by incredible demand from China and other emerging markets that were urbanising and investing heavily in infrastructure.

By Economist Intelligence Unit

Since a peak in 2011, however, prices of many commodities have fallen and concerns have grown about the end of the current “supercycle”.

This report looks beyond the short-term news cycle to assess the state of the metals and mining industry as it approaches the post-boom era. Based on extensive industry research and numerous in-depth interviews with executives from companies across the world, the report seeks to answer four questions:

Is the commodities super cycle over?

How has the industry’s change in fortunes in recent years affected investment by mining companies-specifically capital expenditure-and what implications does this have for their future growth?

What impact has the slowdown had on M&A, corporate deal making and industry consolidation?

And finally, what strategic and operational issues do new management teams need to get to grips with to ensure their companies emerge as winners in the new environment?¹

For further information download the full report.