Commodity prices will come down in the short term as there will be too much supply, the chairman of the world’s biggest mining company Jac Nasser said.
Increased supply has “exerted downward pressure on many commodity markets more recently and we expect this trend to continue over the short term,” Nasser said in the company’s annual report, released today.
“While lower rates of investment ultimately lead to more balanced markets, all resources companies will need to improve productivity and be flexible enough to adapt to change in this more challenging environment.
“We maintain a positive outlook over the long-term as the fundamentals of wealth creation, demographics and urbanization continue to create demand for commodities across Asia and other markets,” Nasser said in the report.
Business Insider Emails & Alerts
Site highlights each day to your inbox.