China, World Steel

Despite the widespread geopolitical uncertainties, the world continues to be reporting good economic growth, …  volatile rhetoric, but reasonably consistent growth.

Of particular note this week read those items below marked with “*”:

SUMMARY  

Copper*  Escondida restarted labour talks.  Cu prices blunted by Trump edicts (which threaten trade).

Nickel*  Nickel prices must increase sustainable before miners commit to bring on new mine supply.

Zinc & Lead  IGO sale of Jaguar to SOL.  Zn TC’s increased a little, but premiums are skinny.  Pb TCs reduced.

Tin  Forecasts that global tin mine production growth rates will decelerate.

Aluminium  USA tariffs enforced from 1 June.  Hits its own strategic trading partners, missing its target.

Gold  Gold’s supposed price drivers awaiting FOMC meeting, in two weeks.

Platinum & Palladium  Forecasts are for Pd deficit and a largely balanced Pt market.

Oil*  India requests more oil from Iran.  India only adheres to UN sanctions, not USA ones.

Coal  Coking waits upon Jun18Qtr settlements.  Thermal faces supply issues.  Demand is good.

Iron Ore  Iron ore may have de-commoditised.  Quality is key.

Shipping  Cape & Panamax rates down on sluggish demand.

General 

China* – Industry & Energy:  +ve growth for colour TVs, mobiles, freezers, autos, Li-batteries.

Steel production:  +ve World & Chinese avg daily and yr-on-yr output growth.

USA* Construction Spending.  Strong positive growth in the major segments.

USA* Inst. of Supply Mgmt:  PMI.  USA is doing well already!  Trump’s stimulus is very badly timed

PinchPoint updates*:  All the base metals are tight, but just look at nickel …!

Cobalt:  prices and inventory