Steel & China
Comments of particular interest are noted with ‘*’.
- China’s industrial and energy output recorded largely positive growth in key areas.
- USA’s durable goods data were pretty ordinary numbers, but the gold sector considered them “better than expected” …?
- Vehicles and Electronic goods data were positive.
- World Steel output remains positive with notably strong growth from China & India.
- Yes the USA – China tariff talks are to resume, … though with no great expectations of meaningful outcomes.
- Base metal inventories continue to remain tight. In a broad sense not much has changed. Base metal prices are struggling to cope with the negative fears driven largely by the USA-China trade tensions.
*Copper SVY – stunning drill intercepts.
*Cobalt Transition to 811 Li-ion batteries … to encourage adoption of EVs. Expected to increase demand for Co.
*Nickel China’s Ni-ore imports from Indonesia increased (ahead of Indonesian export bans).
Zinc & Lead Base metals have struggled with the escalation of (USA-China) trade tensions. Zn still in deficit.
Tin MLX reports new strong tin intercept at Renison, in the Bell 50 area.
Aluminium Japanese Al premiums reduced on ample supply.
*Gold Gold market flipped from ‘risk-on’ to ‘risk-off’. Durable goods orders better than expected. Exactly what were they afraid of?
Platinum & Palladium Sibanye Gold plans significant job cuts at Marikana Pt mines.
*Oil Saudi agreed to partial cease-fire in Yemen. Prices reduced. Notes on USA Strategic Reserve.
*Coal Nippon settled Dec19Qtr LVPCI & SSCC contracts. … a change from lagged settlements.
Iron Ore Vale to begin supply of a new iron ore product, for the pellet markets.
Shipping Freight rates reduced this week.
*World Steel production: The world reported good growth, with China and India notably strong.
*China – Industrial and Energy output: Generally positive growth, in key products.
*USA – Durables, Vehicles & Electronic products: Vehicles & Electronics up but Durables down. … note comments in gold section …