Old metals versus new metals is one strategic perspective on the BHP demerger
Old metals versus new metals is one strategic perspective on the BHP demerger. BHP Billiton will retain the group's interests in iron ore and copper. Newco will get the aluminium, nickel and zinc exposure. The latter metals are associated with rising living standards. Past critical income levels, the growth in demand for the latter group accelerates and growth in the copper-steel complex diminishes. China is nearing this inflection point. As China comes to depend less on infrastructure spending and more on domestic income and consumption for its growth, Newco's product range will benefit and BHP Billiton may find itself missing out.
Welcome to Livewire, Australia’s most trusted source of investment insights and analysis.
To continue reading this wire and get unlimited access to Livewire, join for free now and become a more informed and confident investor.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
No areas of expertise
Please sign in to comment on this wire.