From “super-cycle” to “commodity meltdown”?

Sentiment has soured dramatically in the past week with the prices of almost all commodities falling sharply. Ironically, many of the same commentators who continued to peddle the “supercycle” hypothesis long after prices began to weaken are now scrambling to predict a further collapse. In contrast, our view is that the pendulum has already swung too far towards pessimism, particularly over the prospects for (Chinese) demand. Indeed, in many cases the recent falls in prices may actually help to accelerate the responses – both in demand and supply – that are necessary for a sustained recovery in 2016 and beyond.