March 30, 2006 | posted by Michael Baxter in Uncategorized |

We all know commodities are expensive these days. The high price of steel has seen profits at the likes of Mittal rocket; even the UK’s Corus has made profits recently. The mining sector has seen a big lift in profitability with companies such as Antofagasta, BHB Billiton and Rio Tinto often topping the weekly risers charts. And of course the oil companies are booming too, with the price of oil up there at record levels.

But according to Homi Kharas, chief economist at the World Bank, commodity prices have peaked. He said “From what we have been able to pick up from commodity markets and futures prices, things are at their peak and are starting to decline, and we’ll see more significant declines in 2007. Oil prices are already starting to decline.”