The FINANCIAL — Rio Tinto Group, the world's third-largest mining company, expects further volatility in metal prices as markets weigh global economic prospects for next year, according to gulfnews.
Commodities are set for a "difficult environment" in 2012, according to UBS AG citing a possible dissolution of the European Union and a "hard landing" in China, the biggest raw materials consumer. The worsening debt crisis in Europe has prompted a slump in equities and commodities, including iron ore and copper prices, and cuts to global growth forecasts.Rio has dropped 25 per cent this year in London trading, cutting the company's market value to £67 billion. The benchmark FTSE 100 index has lost 5.9 per cent in the same period.
Metal prices in London have slumped 17 per cent this half, while iron ore prices have rebounded after tumbling 31 per cent in October to below $120 a metric tonne, the biggest loss since at least 2008. A slowing global economy and stronger dollar will limit potential for gains by commodities next year, Morgan Stanley said last month.
Rio last week said it expects to increase capital spending 17 per cent next year and raised its iron ore expansion target, bolstered by the company's confidence in long-term demand.
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