China

Comments of particular interest are noted with ‘*’.  

Matau’s Comments:  

  • Base metals are starting to show some price recovery though some of Covid-19’s effected supply-shock continues.  Demand is improving. 
  • China’s industry & energy output has increased markedly during April kin most segments.  
  • USA housing starts collapsed in April. 

SUMMARY  

*Copper  China’s physical infrastructure expanded considerably since 2009.  More Cu is needed for plans

*Cobalt  Supply disruptions due to coronavirus lockdowns.  The issue now is sulphur (lack of). 

*Nickel  Indonesian expansion plans are faced with a deep waste problem.

Zinc & Lead  Mid-term outlook ‘constructive’ though near-term requires caution.  

*Tin  Tightness has returned, strongly.  Watch semi-conductors for demand.    

Aluminium  Europe still pushing for its aluminium smelters, to protect its industrial base.

*Gold  Central Banks have been adding to Reserves since 2018.  Prescient or wary of USD?

Platinum & Palladium  Balancing Covid-induced supply disruptions with industrial demand, similarly disrupted.

*Oil  Oil demand may struggle to bounce back soon from Covid-19. 

*Coal  Steel mills adopting hybrid models for pricing of LVPCI and semi-soft coking coal. 

*Iron Ore  China’s steel demand growth far outpaces expectations from investors and industry. 

Shipping  Cape and Panamax vessel rates up this week.  

General 

Maps of China:  Provinces & High Speed Railways

China – Industry and Energy Output:  Strong recovery in most segments in April.

USA – New Housing Starts:  Collapsed in April.