Metal prices have contracted sharply since June 2015 as slowing Chinese growth, muted supply cutbacks, weak oil and steel markets and strong US dollar create extraordinarily adverse conditions for commodity prices. Moody's base metal price assumptions for next year are that conditions will remain relatively unchanged from current levels, although stabilising on announced and anticipated production cutbacks while 2017 will show some improvement on a more balanced supply/demand position and improving global economic fundamentals.
