Research: Metals demand and market bubbles

Industrial metals’ dilemma and beware of the bubble

By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group

Industrial metals: Can demand meet supply challenge?

  • Will supply of industrial metals continue to overwhelm demand in 2020?
  • Demand prospects will hinge primarily on growth in top consumer China
  • Emerging market currencies might take a hit if Chinese demand falters
  • Will Chinese recycling dent its demand for industrial metals in the 2020s?
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Understanding bubbles in markets

  • Bursting of a market bubble can result in prices crashing
  • But identifying a bubble in real time is nearly impossible
  • So is determining the cause and when the bubble might burst
  • Markets could rise well beyond expectations of “bubble analysts”
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