India, USA- Construction, PMI’s

Comments of particular interest are noted with ‘*’.  

Matau’s Comments:

  • India is one of the key growth economies in the world.  This week Matau takes a look at its gold jewellery spending, and its resources endowment(s).  We need to have a better understanding of India.
  • Copper and cobalt markets are watching for supply disruptions.
  • Gold price has been fairly flat for a year.  Sentiment is a key driver. 
  • Base metals’ pinchpoint graphs continue to highlight tight markets.  Matau believes such short supply is ill-positioned to feed supply into the strong growth forecasts for uptake (particularly manufacture) of ‘new-energy’ goods.

SUMMARY  

Copper  China Molybdenum to double Cu & Co output at Tenke Furgurume mine by 2023.   

Cobalt  Cobalt market is watching supply impacts from civil unrest, covid-19 and supply curbs.  

Nickel  Vale resolved Sudbury complex though recovery to production will take time. 

Zinc & Lead  Zn & Pb concentrate TC’s increased toward end of July, on increased mined tonnages.  

Tin  Tight Chinese domestic Sn market may loosen as Yunnan Tin resumes production in August.      

Aluminium  China’s switch to imports is reshaping the global aluminium market.

Gold  Rising prices (& India’s hallmarking laws) discouraged Indian retail jewellery purchase levels. 

Platinum & Palladium  Coronavirus has dented outlook for industrial commodities. 

Oil  Saudi Arabia’s move to lift its prices to Asia may backfire.  

Iron Ore  Iron ore prices declined on seasonal weakness, and speculation on output controls. 

Shipping  Baltic indices reduced on seasonal weaknesses, and forecasts of reduced demand growth.

General 

India – maps of gold jewellery expenditure & location of base & precious mineral deposits. 

USA – PMI:  Outlook still favourable, but at slower rates than last month.

USA – Construction Spending:  +ve for Private & Residential.  -ve for Public & Non-Residential