Broker snap: Miners to benefit from 'resources squeeze'

15th Dec 2009 12:39

Strong demand from China and restocking in 2010 could lead to the most resource intense recovery since the 1970s, according to one broker.UBS says companies have cannibalised 15% of a year's supply of base metals out of the supply chain in 2009, and will have to return to buying that material again.It also believes monetary and fiscal injections will cause resources demand from China to surprise on the upside.Xstrata and Rio Tinto are rated a 'buy' on the back of continued resources reflation and rank among the broker's five top picks.