Exploration, China, Shipping, USA
Comments of particular interest are noted with ‘*’.
- It is frustrating when companies are required to report data to the relevant exchanges, yet government statistics agencies’ rules prevent them from including those data in relevant categories.
- Australian mineral exploration has clearly been on a surge. Good! More discoveries are needed to feed forecast demand growth.
- Overall, while still jittery and volatile, the global economy continues to recover. In this note that is evident in shipping data and in Chinese output data.
- USA economic housing and IP data again show some jitters.
- Supply (disruptions) and demand issues continue to compete (oil, metals).
- Covid containment issues are not helping. It appears some countries are again in their own firing line in this regard.
- Despite impediments, overall it appears the world industry and trade is growing back toward, though not yet up to, pre-covid levels.
*Copper Study shows REEs play important roles in formation of major (IOCG) style deposits.
Cobalt Cobalt is largely a byproduct of Ni & Cu production. Few mines have Co as their key product.
*Nickel Production of Ni matte from Ni-laterites is economic, but has its own issues.
Zinc & Lead Nationwide transport strike in Peru likely to impact supply of Zn, & Cu concentrates.
*Tin Tightness on the London Metal Exchange (LME) tin contract remains acute.
*Aluminium Major Al inventory deliveries into Asian LME warehouses (appears it was planned).
Gold Gold price appears to be being held hostage by USA real 10 year note yields again.
*Platinum & Palladium Norilsk is working toward restoring capacity to its flooded mines in the next 3-4 months.
Oil Oil price is roller-coasting on supply constraints and increased demand vs fears of slowdowns.
Coal SSCC Mar21Qtr (lagged) contract pricing settled.
*Iron Ore Vale is looking to develop a major port to increase competitiveness in shipping to Asia.
Shipping Asian freight rates increase with demand for grain, iron ore & scrap metal.
*Australia – Exploration Spending: There is a surge in activity under way.
Port Hedland – Iron Ore shipments: Growth has slowed in the past four months.
Singapore – Port traffic: Growth is improving post-covid.
*China – Transport: Transport (& other data) shows recovery toward pre-pandemic levels.
*China – Industry & Energy Output: Feb 2020 was peak month for China’s effort to control Covid19
*Baker Hughes – Rig Counts: Rig counts are increasing, lagging oil price increases.
*USA – House Starts: negative growth for a 4th month.
*USA – Industrial Production & Capacity Utilisation: negative growth and reduced capacity use.