Market taking ‘short-term’ view on resources

Pengana Capital head of resources Ric Ronge, who will be speaking at this week’s Meet the Managers forum, said the resources sector is a cyclical and often volatile market.

However, he said there are five key themes - some on the demand side and some on the supply side - that will underpin the market for hard commodities such as iron ore and copper over the next few years.

The first, he said, is the combination of industrialisation and urbanisation taking place in fast-growing developing economies around the world including the two most populous countries, China and India.

Speaking of China, Ronge said its predicted ‘slowdown’ won’t have the big impact on demand for minerals some are predicting.