We recently held a webinar where MAPI’s experts talked about the outlook for key industrial commodities, which have rebounded strongly from their 2008-2009 crash. Among the lessons learned:

• Given the weak economic climate, we will see commodity price weakness into 2012.
• The faltering G7 recovery will put downward pressure on commodity prices, despite Chinese demand. Our modeling suggests that flat industrial production in the G7 will shave another 20% of commodity prices.
• High-pre recession prices have stimulated new sources of supply and production capacity, making large price increases for most commodities (except copper) unlikely.
• While the commodities price boom in the 2000s was largely driven by Chinese industrial production (IP), there is more to the story.
• A 1% change in G7 IP has an effect three times as powerful on commodity prices as Chinese IP. What does this mean for prices going forward? Recovery in the developed economies will drive commodities prices higher.  

Click here to replay the webinar.