USA, Durables & Yields

Comments of particular interest are noted with ‘*’.  

Matau’s Comments:

  • USA economy recovery may be slowing a bit but is still basically positive. Vehicle orders backed off a bit in February.
  • USA bond yields continue to lift slowly.  Real USA 10yr bond yields are almost up to 0.0%.
    • USA real 10yr bond yield has just turned positive.  Still lower than the real Aust 10yr yield, hence a robust AUDUSD rate. 
  • Gold price has been jittery, following USD variations.
  • A number of sound base metals projects are being advanced through toward production, as their respective markets continue to tighten.

SUMMARY  

Copper  Copper prices following equities markets’ optimism over global economic recovery. 

*Cobalt  Cobalt consumption in 2020 up 29%.  Glencore – Murrin Murrin.  COB.  

Nickel  Chemistries of EV batteries.

Zinc & Lead  China’s Cu & Zn  smelters benefitting from byproduct H2SO4 sales.  EV batteries.   

Tin  Tin supply has reduced markedly, esp in Indonesia.      

Aluminium  Ship stuck in the Suez exacerbated Al billet shortage in Europe.

*Gold  Choppy trading this week, influenced by USD moves. 

Platinum & Palladium  Hydrogen fuel technologies anticipated to support platinum. 

*Oil  Oil prices (esp in Europe) increased on concerns of Suez disruption. 

*Coal  Unusual swaps being done in coking coal to get around China’s bans. 

*Iron Ore  Prices increased, supported by strong steel prices. 

*Shipping  Asian freight rates gained this week amid heavy rains and floods. 

General 

*USA – Treasury Yields:  slowly rising, with improving outlook.

*USA – Durable Goods, Vehicles & Electronics:  +ve growth for durables & electronics.