“Supply has been outstripping demand not because demand has been particularly weak, but because there was too much supply,” said Stephen Briggs, commodities analyst at BNP Paribas SA . “It looks like this won’t change anytime soon.”
Years of high commodity prices fueled a boom in investment around the globe by companies extracting resources – and by the many others, big and small, that depend on them. The ensuing slump has been devastating. Commodities markets from oil to coal to sugar took a beating last year, with many prices falling to multiyear lows. The turmoil has led to job cuts, mine closures and losses for investors.