The last decade has undergone an extraordinary mining boom that has been a positive for companies that have some kind of involvement in it. Everyone from Caterpillar (CAT) to BHP Billiton (BHP) to Rio Tinto (RIO) have reaped the benefits of the rush for resources and owe China a “Thank You” card or two for boosting the mining rush. But all good things must come to an end and it appears the cycle is turning in the mining industry.
As China’s economic growth begins to slow and people realize they don’t need 500 high rise condo buildings in a one square mile radius, demand for materials and resources has tapered off. Seeing as how mining is a cyclical industry, the price of certain commodities like copper are beginning to fall regardless of Bernanke’s quantitative easing methods. Companies that manufacture mining equipment are also due to see a slowdown in sales and revenue as demand weakens.
