From Alcoa to Freeport, Metal Producers See Cost Creep Set In
- Oil spike and currency gains the biggest near-term threats
- Labor pressures are seen building toward the end of the year
Saxo Bank's Camara Says Precious Metals Have a Way to Go in 2018
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Mining and metal companies are rediscovering the downside of rallying prices: higher costs.
A sharp rebound in commodity markets in the past two years put producers in a profitability sweet spot after years of cost-cutting to cope with low prices. Now, as the upturn matures and the higher cost of energy and other materials starts to bite, some companies are beginning to struggle to maintain margins.