Vietnam, South Korea, UK, Germany

Comments of particular interest are noted with ‘*’.  

Matau’s Comments:

  • South Korea & Vietnam are two of the Asian countries that are actually ‘growing’, as emerging industrial nations.  (South Korea has been doing this for longer than Vietnam).  Chinese and Japanese companies migrated some manufacturing operations to lower cost jurisdictions during the 2000’s and onward.  This benefited countries like Philippines, Thailand, Malaysia, Vietnam and Indonesia. 
  • UK & Germany are recovering from covid, though often the recovery is to the pre-covid downtrend (so far). 
  • Iron ore shipments from Port Hedland reduced modestly in August, notably in China, though the ex-China destinations reported strong growth (from much smaller bases than China’s). 
  • 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  Chilean miner strikes appear (largely) to have been averted. 

*Cobalt  Tightening feedstock supplies expected to support prices for the rest of 2021.  

*Nickel  BSX continues to get strong Ni massive-sulphide intercepts. .

Zinc & Lead  Zn conc TCs increased upon more availability.  Pb remains tight in Europe but ample in China.

Tin  China’s tin output increased despite restricted power consumption.      

Aluminium  The coup in Guinea could upset global aluminium if bauxite operations are affected.

*Gold  USA Fed Governors widely talking about tapering off on bond purchasing.  ‘Healthy’ economy. 

*Platinum & Palladium  Pt demand increasing on increased catalyst loadings in China, and substitution of Pd. .

Oil  Iraq is rebounding from the coronavirus pandemic.  Total is committing to large projects in Iraq. 

*Iron Ore  Brazilian red-tape may slow output growth and support prices further. 

*Shipping  Shipping demand has continued to growth through 2020-21..

General 

*South Korea – Industrial Production:  Growth since 1975, & back to pre-covid levels.

*Vietnam – Industry output:  Strong growth to 2019.  Covid knocked 2020 about in segments.

*Port Hedland – Iron Ore exports:  Total exports reduced, China down, but ex-China up strongly.

Germany – Industrial Production:  IP & durables are recovering, construction is work in progress.

United Kingdom – Industrial Production:  Recovery appears to be to lower than pre-covid levels.

Please note that Commodity Review is a single user subscription.   

Please click on the following link for this week’s publication Commodity Review 10 September 2021 link