The New Boom in Metals

The mining sector has been in the doldrums for 20 years. But now, with demand for metals soaring, prices are on the rise again. Is this the start of a bull market in commodities?

In terms of the overall market, small. The capitalisation of the global mining sector is about $240bn, less than the market value of General Electric.There are a handful of huge global players, a number of them listed in London, such as BHP Billiton, Anglo American, XStrata and Rio Tinto, but also hundreds of smaller players, most based in mining countries, such as Australia, South Africa and Canada. Over the last 20 years, the industry has consolidated and shrunk as it coped with a savage collapse in metals prices, caused by the Japanese economic decline and global disinflation. From a peak of 335 in November 1980, the Reuters CRB index fell to a low of 183 in October 2001. In the last year, however, the sector has staged a remarkable recovery.

How strong has the recovery been?

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.