Fitch updates mid-cycle commodity price assumptions

The US-based ratings agency, Fitch ratings published a latest update on its mid-cycle commodity price cycle assumptions for several key metal commodities.

Key Quotes:

“The current assumptions include downward revisions to copper prices in the medium- and long-term by USD500 per tonne and to the long-term price of iron ore”

“This results in the following copper prices per tonne of USD4,800 for 2016, USD5,000 for 2017, USD5,500 for 2018 and USD6,000 for 2019 and the long-term”

“The price of iron ore now remains at our 2016 assumptions of USD45 per tonne for the long term”

“The new assumptions also include a modest increase of the price for thermal coal and hard coking coal in the short- and medium-term and of the price of zinc”

“Zinc price per tonne USD1,900 in 2016, USD2,000 in 2017 and 2018, USD2,100 in 2019 and a long-term price of USD2,200”

“The prices of aluminium, nickel and gold remain unchanged from our previous January 2016 update”

“Aluminium price per tonne remains at USD1,600 for 2016, USD1,700 for 2017 and 2018, USD1,750 for 2019 (new) and a long-term price of USD1,800”

“Nickel price per tonne remains at USD9,000 for 2016, USD10,500 for 2017, USD12,000 for 2018 and 2019 (new) and a long-term price of USD15,000”

“Gold remains at USD1,100/oz throughout the same period”

Full report here