Japan, USA, Rigs

Matau’s Comments: A number of  viewpoints or signals the market is said to be emitting are quite positive, however in several cases, the direction indicated does not appear to match or offset opposing factors, particularly in this Covid-riddled world:
… USA’s PMI indicator put forward a quite positive outlook (by themselves) however other economic data that usually would support such an attitude does not seem to have much substance.   The USA economy looks more like it needs medical assistance …
… or … the Cu market is seeing falling inventories and rising prices, yet respected analysts expect a pandemic downturn … if a downturn of pandemic proportions is looming what is the (market-forces-informed) copper market think it is doing?  Is the market seeing something we do not?

This week’s Commodity Review has been produced from an old laptop with a reformatted – re-llnked report. … as my good laptop has a failed power board.  Some of the commmentary this week is abridged.
If the link to the report does not work, pls call (+61 412 122 778) or email me andrew@matauadvisory.com.au and I will get a copy to you.

We live in interesting and challenging times!

SUMMARY Copper  Analysts forecast a pandemic slowdown, but Cu price is rising.

Cobalt  EV charge points’ global distribution is somewhat skewed, to China & Netherlands.   

Nickel  Tesla is building a new GigaFactory in Texas .and is calling on Ni producers.

Zinc & Lead  ORN is arranging funding for Prieska, which is development ready.   

Tin  Afritin mining at its Uis mine is operating free of Covid.      

Aluminium  USA announced renewed tariffs against Canada.  Canada has protested and reciprocated.Gold Global ETF holdings are at an all time high (again).  Platinum & Palladium  South Africa’s platinum miners are facing tough economic conditions.  Oil  Prices struggling to hold current levels. Agencies forecast demand declines.  CoalDemand for seaborne SSCC & PCI down, aggravated by Covid.  Iron Ore  China’s steel output is expected to achieve new highs Shipping  Cape rates and Panamax rates both up with shipping in demand.   General  
Baker Hughes – WorldWide Rig Counts:  USA has its lowest rig count for any time since 1975. Japan Industrial Production:  starting to claw its way up off a bottom.  

Japan – LNG Prices:  Prices have started to recover, lagging the oil price recovery.

USA Purchasing Managers’ Index:  Strong outlook for industry expressed.  Is it Covid-proof?USA – Construction Spending: basically stalled except for Government non-residential spending