The rise of the Asian consumer

June 04, 2013

By 2025, 12 years from now the Asian consumer class will number 2 B people and they will account for 1/3 of global consumption. The north will feel the effects of Asian demand through metals and oil and gas demand.

According to Dominic Martin, the Global Managing Director of McKinsey & Co. by 2030 global steel demand will grow by 80 %, energy demand by 33%. The Asian investment in infrastructure is huge.

The Chinese middle class is burgeoning—80 million traveled abroad last year. China’s per capital GDP is expected to double in a few short years, from $5K to $10K. China will within a decade become the largest economy in the world.

The graphic from the Economist shows the patterns of economic growth throughout the world and Asia and Africa lead the way.

The large, and increasingly wealthy populations in south-east Asia mean opportunities for northern resource development.

• The Izok Corridor project includes the Izok Lake and High Lake deposits located in the Kitikmeot in the Slave Geological Province in Nunavut, northern Canada. The deposits are west of Bathurst Inlet, south of Coronation Gulf and north of the Northwest Territories border. Izok Lake is a significant deposit with a Mineral Resource of 14.8 million tonnes at 12.8% zinc and 2.5% copper.
• The Selwyn project, a zinc-lead development project located in the eastern Yukon. The project is composed of 259.8 square kilometers of wholly owned mineral claims and 95.6 square kilometers of mineral lands acquired from the Howard’s Pass Joint Venture.
• There are numerous iron ore development projects in Quebec and a few in Nunavut.
• The Casino copper project near Carmacks. Western Copper has a billion tonnes of copper/gold/moly ore identified and a plan to develop the resource later this decade.
• There are 5 multi-billion dollar LNG projects under consideration for Prince Rupert/Kitimat BC. If they all went ahead the investment would exceed $60B. 

Commentary

Asia has been growing more prosperous for a generation. Urbanization is tied to wealth creation and the demand for metals and energy. The rise of the Asian consumer means ultimately higher demand for resources from the northern part of North America.

Sources

• a)Dominic Martin, "How Canadian companies can tap into Asia's consumer boom", Globe and Mail, 4-Jun-2013, p.B2.



• b)http://www.businessinsider.com/jeff-gundlach-june-webcast-presentation-2013-6#-1