Rio Tinto’s Former Chief Calls the Bottom for Commodities

Bloomberg Commodity Index heads for best month since 2010.

by Bloomberg News
Mine Web

Commodity markets are beyond the worst as demand in China shows signs of a recovery, according to industry veteran , chief executive officer of Vedanta Ltd. and a former head of Rio Tinto Group.

“I believe with what we’ve witnessed early in 2016 will be the trough for the commodity markets,” Albanese said on a conference call after Vedanta reported quarterly earnings. “ Commodity prices have improved materially in the last couple of months, and investor sentiment has started to turn cautiously positive on the resources sector.”

Commodities have rallied in April, with the Bloomberg Commodity Index heading for the biggest monthly increase since the final month of 2010. The gains have been powered by signs growth in China is stabilizing amid a rebound in the property market, and by a revival in oil as US supplies drop.

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