Comments of particular interest are noted with ‘*’.
Matau’s Comments:
Base metal markets are tightening further. (pinch points & prices). Notably Ni & Cu.
Permitting issues for major mines for RIO & BHP may further tighten the copper market if issues are prolonged.
Demand is increasing in key industrial nations (USA, Japan & Europe … in addition to China’s already demonstrated domestic recovery … with further potential pending its export customers’ recoveries).
However industrial production in USA, Germany and UK still have negative growth, which should improve as durable goods orders & PMI’s are either positive or improving.
Covid-19 is far from peaking, as more is learned about emerging strains, and is disrupting transport and commercial businesses.
Pinchpoint graphs (based on exchange stocks) continue to highlight tightness in markets for Cu & Ni in particular.
‘Shadow’ stockpiles are discussed in comparison with exchange stocks on the Pb & Sn pages.
Shipping data [Singapore & Port Hedland] provide valuable signals comparable with other economic data, that are valuable for confirmation (rather than media hype).
Wishing you a Merry Festive Season leading to the New Year.
Comments of particular interest are noted with ‘*’.
Matau’s Comments:
Pinchpoint graphs continue to highlight tightness in markets for Cu & Ni in particular.
2021 will be interesting,
This week’sCommodity Review is an abridged version, being a collation of the data tables and graphs for each relevant commodity and economic release, with minimal or no accompanying commentary.
General
World Steel: Wider positive growth emerging.
China – Industry & Energy Output: Widespread positive growth.
USA Durable Goods, Vehicles, Computers & Electronics: Improving
Comments of particular interest are noted with ‘*’.
Matau’s Comments:
Battery minerals commodity supply: – this thematic continues, and will for some time … has been over-estimated by EV manufacturers for some time, though they appear to be recognising the limitations inherent in ramping up new mine supply. Viz: discover, evaluation, permitting, construction and commissioning.
China’s demand for steel and copper continues to surge.
Australian iron ore exports are not likely to be restricted by China as it needs too much of it to maintain its steel output.
Base metals’ prices again lifted upon reducing exchange stocks and expectations of improving outlook via stimuli.
However it is still unlikely that Covid-19 influence has finished yet, variably impacting (disrupting) both demand and supply.
But absolutely … look at the pinch-point graphs with base metals’ responses to looming demand and fundamentally tight markets !!!
