Singapore Shipping

Comments of particular interest are noted with ‘*’.  

Matau’s Comments:  

  • China’s Steel production growth has boosted iron ore prices and demand for bulk carriers.
  • Base metals:   South America is now a focus, with risks to base metals supply.
  • Gold prices have improved.  Plenty of risks available to trigger price responses including market fears of second+ waves of Covid-19 virus. 

SUMMARY  

*Copper  China’s Cu inventories at 17mo low levels.  Chile has large Covid-19 infection growth rates.

*Cobalt  Tesla plans to use of zero Co batteries but has contracted to buy major amounts of Cobalt.  

*Nickel  BHP acquired Honeymoon Well (Ni), from Norilsk, and is re-focusing on Ni. 

*Zinc & Lead  Peru’s forecast Zn output now cut back by Covid-19.  China’s Pb output is stable. 

Tin  MLX’ Renison (Sn) mine life extended for ten years.     

Aluminium  Al market pricing likelihood USA will replace Canada’s tariff exemptions with quotas.

*Gold  Despite some economic improvements, there remain plenty of risks and catalysts for Au prices. 

Platinum & Palladium  Amplats ramping up its mine production (very Covid-safe aware).

*Oil  Iraq & Kasakhstan will comply better with OPEC+ goals.  USA’s erratic focus remains concern.

*Coal  Some NipponSteel Sep20Qtr LVPCI & SSCC agreements.  India opening up mining to pte coys.

*Iron Ore  China’s iron ore inventories at 17mo lows on strong steel production growth and outlook. 

Shipping  Cape rates up markedly on strong iron ore demand. 

General 

*Port of Singapore – shipping traffic:  Strong growth for bulk carriers.  Passenger traffic stopped.

USA – New House Starts:  strong -ve growth, with recovery signs only in west.

USA – Industrial Production:  strong -ve growth.  Though not in good shape prior to Covid-19