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The largest global mining companies are: Expected to suffer from lower metal prices Analysts at Deutsche Bank said this week that the decline in crude oil prices has slowed demand for copper, nickel and iron ore due to a sharp slowdown in industrial activity in China, the United States and Europe.
The world is bracing for a “simultaneous decline in industrial activity in China, the US and Europe,” which could see mining companies including Glencore (OTCPK:GLCNF) (OTCPK:GLNCY), Rio Tinto (RIO) and BHP (BHP) take a hit to their bottom lines in 2024 and 2025, said analysts at Deutsche Bank led by Liam Fitzpatrick.
The bank cut its forecasts for aluminium, copper and nickel prices for the fourth quarter, expecting metal prices to fall sharply over the next two quarters and remain low through 2025.
The bank cut price targets for several of the world’s largest metals producers, including Anglo American (OTCQX:AAUKF) (OTCQX:NGLOY), Antofagasta (OTC:ANFGF) and Norsk Hydro (OTCQX:NHYDY) (OTCQX:NHYKF).
Deutsche Bank cut its earnings forecasts for First Quantum (OTCPK:FQVLF) by 12.9% in 2024 and 14.1% in 2025, Lundin Mining (OTCPK:LUNMF) by 9.1% in 2024 and 12.8% in 2025, and Vale (OTCPK:VQLF) by 12.9% in 2024 and 14.1% in 2025.New York Stock Exchange: Vale) by 8.1% in 2024 and 8.2% in 2025.