• 618 days Will The ECB Continue To Hike Rates?
  • 618 days Forbes: Aramco Remains Largest Company In The Middle East
  • 620 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,020 days Could Crypto Overtake Traditional Investment?
  • 1,024 days Americans Still Quitting Jobs At Record Pace
  • 1,026 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,029 days Is The Dollar Too Strong?
  • 1,030 days Big Tech Disappoints Investors on Earnings Calls
  • 1,031 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,032 days China Is Quietly Trying To Distance Itself From Russia
  • 1,033 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,037 days Crypto Investors Won Big In 2021
  • 1,037 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,038 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,040 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,040 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,044 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,044 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,045 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,047 days Are NFTs About To Take Over Gaming?
Major Diamond Mine Slashes Production

Major Diamond Mine Slashes Production

Angola’s Sociedade Mineira de Catoca, which…

Not Even Safe Havens Are Safe Anymore

Not Even Safe Havens Are Safe Anymore

Safe havens falling with stocks…

Mining.com

Mining.com

Mining.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

Contact Author

  1. Home
  2. Commodities
  3. Other

Is The Mining Industry Prepared For A Coronavirus Commodity Slump?

Coronavirus Commodity Slump

The metals and mining sector will be moderately exposed as a result of the ongoing coronavirus outbreak worldwide, said Moody’s in its latest report on global sectors based on data collected as of mid-March.

The fall in commodity prices will have an adverse effect on those in the industry. However, analysts at Moody’s believe many producers have improved since the last commodity slump in 2015-2016, which caused significant hardship for smaller, less-diversified companies and drove a steep rise in the number of defaults. Now, more global, higher-rated companies are in general better able to withstand a market downturn.

The global spread of coronavirus will slow economic growth significantly, which will, in turn, amplify its effect on several sectors, Moody’s asserts.

The firm recently revised its GDP growth forecasts for the advanced G-20 economies to 1.0 percent in 2020, down from 1.7 percent in 2019, and for the emerging G-20 to 3.8 percent in 2020, down from 4.2 percent in 2019, including a substantive slowdown in China. The baseline scenario assumes a normalization of economic activity in the second half of the year.

Moody’s cautions that the ability of some companies to withstand the effects of the virus will depend on its duration, and as events unfold on a daily basis, there is a higher than usual degree of uncertainty around its forecasts and assessment will evolve over time with new developments.

The following chart details the level of exposure for the major sectors around the world based on Moody’s research.

By Mining.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment