According to estimates Morgan Stanley, it's time to buy large commodity giants like BHP Tinto and Rio - Materials AMarkets.
2015 - the year of disaster for the raw materials market, as the main consumer of raw materials, China has slowed significantly, and does not promise a rapid growth in the future.
BHP and Rio have lost 9% and 10% of its market value, respectively. Morgan Stanley analysts believe that the current price levels - a great opportunity to buy shares in these companies cheaply. Analysts expect growth in demand for raw materials in accordance with the economy entering a new phase of growth cyclical demand.The company's fundamentals over the past four years have been very good. Experts expect growth in demand for raw materials in the next four months on the part of China and the developing countries.
China - item number one in importance in the recovery of raw materials and market shares of commodity companies.
China's share in global consumption of raw materials:
If the optimistic scenario is realized, the price of raw materials is projected to MS, will grow by 14% by 2016 and by 19% by 2017. For these companies your company forecasts an increase of about 19% until 2017.