Demand for energy and materials driving commodities super-cycle

ON SPECIALIST MARKETS

ANGELOS DAMASKOS, CEO of Sector Investment Managers on Specialist Markets

There is little doubt we are in a commodities super-cycle, which started at the turn of the century. Robust growth from the Bric economies underpins demand for energy and raw materials. The big question is how long this super-cycle might last, and whether the financial crisis and resultant world economic problems will endanger its longevity. The best indicator of a super-cycle is high and rising intensity of the use of metals and oil. China’s intensity is now three times that of the US, and its rapid industrialisation and domestic needs rule its demand for energy. There have been two ...