USA, Japan, Silver
Comments of particular interest are noted with ‘*’.
- Market activity continues to refocus from sentiment to fundamentals.
- Base metal markets are tightening further. (pinch points & prices.
- Pinchpoint graphs (based on exchange stocks) continue to highlight tightness in markets for Cu & Ni in particular.
- Reports highlight tight markets in: Cu, Co, Ni, Sn, Zn & Pb
- Aside from China, demand is increasing (slowly) in key industrial nations (USA, Japan & Europe).
- Most recently Tesla is having to slow its rollout of some models (trucks) as it is short of key battery minerals (Li, CO, Ni, graphite).
- Covid-19 is far from peaking, as more is learned about emerging mutating strains, and is still disrupting transport and commercial businesses.
*Copper Cu is forecast to outperform other commodities in 2021.
*Cobalt Outlook for cobalt production is good, particularly as Co is usually a co-product.
*Nickel Tesla to join Indonesia’s plans for an EV battery supply chain in-country.
*Zinc & Lead Zn & Pb TCs down on limited concentrate supply.
*Tin Tin is currently subject to a ‘physical’ supply squeeze, driving prices up.
Aluminium Chinese plants planning holidays during CNY.
Gold Selling pressure attributed to strong USD & increasing yields.
Platinum & Palladium Northam Platinum considering acquisition of the Bokoni mine (Sth Africa).
*Oil Economic revival hopes and OPEC supply curbs are supporting oil prices.
Coal Coking prices remain strong. Thermal prices softened ahead of Chinese New Year.
Iron Ore China plans to moderate steel output, but current momentum is strong.
Shipping Shipping rates declined this week, ahead of Chinese New Year.
Silver: A mis-conceived ‘squeeze’. The Redit call was never about silver.
*USA – Purchasing Managers’ Index: Strong outlook (new orders, production)! Sustainable?
*USA – Construction Spending: Positive growth, though not in Non-Residential.
*Japan – Industrial Production -segments: Recovering. Some segments yet to record +ve growth.