...Sector outlook Stable: Chinese stimulus measures have supported fixed-asset investment growth since 2016, which in turn has improved the prices for most commodities. Fitch Ratings expects growth to slow from 3Q17 in response to the recent tightening of credit conditions. The deceleration should, however, be gradual. The external backdrop remains robust, and the pace of credit tightening in China is unlikely to intensify sharply. Fixed investment in China is expected to decline to 5.0% in 2018, from 5.4% (f) in 2017 and 6.4% in 2016. Supply-side dynamics continue to help commodity prices, as reforms in China continue as seen in the aluminium sector. The increased emphasis on the environment has led to an increasing demand for higher quality iron ore. We are also seeing more supply discipline from the large iron ore players, which will also support prices. Cost Position Is a Key Driver: Mining companies are typically price-takers. For their long term competitiveness, mining companies therefore...
