yields, pinch-points – USA durables

Comments of particular interest are noted with ‘*’.  … really!  Do read these! *

Matau’s Comments:

  • Disruptions:
    • Cu:  Chile, Peru
    • Co:  DRC reinstates export ban
    • Zn-Pb  China’s smelters under power restrictions (last week)
    • Al:  bottlenecks at Exchanges.
    • Iron Ore:  Supply is being added cautiously, assuming demand growth will slow!
    • Oil:  major industry analysts disagree on outlook
  • Emerging projects / companies:
    • Eeraheedy -Zn-Pb  (RTR & ZNC)
    • Mt Lindsay Sn  (VMS)
    • Ta Khoa Pt-Pd  (BSX)

SUMMARY  

*Copper  Chile miners strike.  Peru plans to raise taxes.  Ivanhoe opens new Cu-Co mine in DRC. 

*Cobalt  DRC has reinstated an export ban on Cu & Co concentrates.  

*Nickel  Roskill’s outlook for battery demand for Ni.  Ni industry is seeing shifting dynamics. 

*Zinc & Lead  RTR & ZNC drilling Eeraheedy Zn-Pb for a large Resource.  Pb spot TC’s have reduced sharply.

*Tin  VMS advancing its evaluation of the large Mt Lindsay project.   Tin is now a new energy metal.    

Aluminium  Strong demand & tight supplies, with bottlenecks at exchange warehouses. Consumption is up.

Gold  Prices up as uncertainty re- the USA economy continues, and the world recovery continues. 

*Platinum & Palladium  BSX’ Ta Khoa project’s PGE recoveries.  London Platinum Week & Shanghai Platinum Week.

*Oil  Rystad Energy – ‘000s of wells and fields needed even if oil demand reduces by 2050. 

Coal  HCC prices consolidated gains.  Thermal prices expected to remain elevated. 

*Iron Ore  Major miners tempering their growth.  Smaller new miners carefully not making prior boom errors.

Shipping  Cape rates benefitting from iron ore.  Panamax & Supramax rates stable in Asia.

General 

*USA Treasury Yields:  A shift in inflection point is encouraging, suggests a recovery is in sight.

*Base Metal Pinch-points:  things are getting really tight.  Sentiment is taking  back seat.

*USA – Durable Goods, Vehicles, Computers:  mixed outcomes by sector due to Covid-19.