Mining Equipment Stocks Poised to Recover from End of "Super Cycle"?

Ever since the end of the last so-called mining commodities "super cycle," investors have kept wary eyes on the stocks of mining equipment manufacturing companies. Because slowdowns in production led to apparent long-term weakness in the markets, even the big-name mining equipment companies have been struggling to produce earnings for their investors.

Fortunately, all of that could soon change.

According to online investment advisers at The Motley Fool, companies such as Caterpillar and Joy Global are poised to make a comeback:

Analysts at Wood Mackenzie project 2018 global demand for base metals to be 27% higher versus 2013, and the Freedonia Group forecasts global demand for mining equipment to grow 8.6% annually through 2017. In other words, patient investors in mining-equipment companies can still make great profits. Two companies in particular appear to fit the bill: Joy Global and Caterpillar.

One of the reasons for this expected growth is the sharp increase in demand from Latin America. According to Future Market Insights, "the key reason which has accelerated the growth of the Latin American mining equipment market is the enhanced demand for the consumption of natural resources," citing that the region produces a staggering 25% of the world's copper, among other large percentages of important commodities. While carrying such large numbers, it's natural that their demand for equipment would increase.

Of course, the demand for more mining equipment leads to a demand for more big tires. Remember that we carry a full stock of OTR tires for all of your mining equipment needs, and that we routinely ship to mines in South America. For more information on current deals, please feel free to contact us.

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