Of particular interest this week:
The Indian monsoon is starting as a strong one this year. While initial thoughts go to increased demand for gold jewellery, it may also lead to increased consumption of other industrial goods.
Zinc treatment charges have been cut again as mine supply tightens, limiting supply to Chinese smelters.
Singapore shipping a rough proxy for the wider Asian economies, continues to show reasonably good growth.
USA capacity utilisation has stopped falling and is increasing in some key segments.
SUMMARY
Copper The world is not about to be swamped with copper. Capital for development has reduced.
Nickel The nickel rally may be just getting started.
Zinc & Lead China’s Zn TC/RC’s slashed by 20% as mine-supply gets tight. Lead in surplus.
Tin Tin use is widespread.
Aluminium Aluminium output of restarted smelters is slow. Chinese consumption up.
Gold Indian demand for jewellery driven by weddings and monsoons. Monsoon is strong this year.
Platinum & Palladium Zimbabwe = political risk.
Oil Saudi increasing output ahead of ‘freeze’ talks. LNG prices increasing.
Coal Spot hard coking prices at two-year highs.
Iron Ore Iron ore not following the script … it is increasing.
Shipping Cape rates rising on Asian trade. Panamax looking to agri-trade.
General
Singapore Shipping: reasonable growth, slower than recent rates but still strong.
USA Housing Starts: volatile but growing.
USA – Industrial Production: – flat and struggling to lift.
USA – Capacity Utilisation: – increasing in some key segments.