fyi Scotiabank analyst Orest Wowkodaw sees the possibility of a new commodity supercycle,
“Remarkable post-pandemic demand recovery in China rescued commodity markets from complete disaster in 2020. Although significant risks remain, our “base case” continues to anticipate a strong stimulus-driven recovery in ex-China markets in 2021-2022. In the medium to long term, we anticipate the emergence of a new commodities super cycle driven by growing demand from global decarbonization efforts to address climate change amplified by the impact of severe underinvestment in new production capacity by the supply side … We strongly prefer Cu [copper] exposure among the base metals. We forecast the Cu market to post a meaningful 2021 deficit driven by demand recovery before transitioning to a large medium-term structural deficit due to supply erosion. Moreover, we anticipate Cu to be among the biggest beneficiaries of growing global decarbonization efforts. We forecast near-term over-supply in both Zn [zinc] snd Ni [nickel] markets”
“@SBarlow_ROB BNS: “we anticipate the emergence of a new commodities super cycle driven by growing demand from global decarbonization”” – (research excerpt) Twitter