Japan – US

Comments of particular interest are noted with ‘*’.  

Matau’s Comments:

  • Japan’s Orders to Machinery reports respectable growth with many segments’ order levels back to pre-pandemic levels.
  • Base metals’ pinchpoint graphs continue to highlight (very) tight markets.  The prices are now responding strongly to low stocks.  
    • High prices have still NOT drawn additional stocks onto exchanges for: Cu, Zn, Pb, Ni nor Sn.  
      • In fact for most of these stock levels are continuing to decline despite high prices. 
      • Implies very tight markets.
  • New Energy Vehicles’ much touted massive growth rates might grind to a halt in a couple of years if some battery configuration changes do not become available. 
    • Matau believes that the resources industry will struggle to supply raw materials at the optimistic growth rates touted by manufacturers and entrepreneurs.  
    • Actual rates will have to work to actual rates of raw materials supply growth.

SUMMARY  

*Copper  Chile politics:  Gabriel Boric does not plan to interfere with existing mining concessions. 

*Cobalt  China seeking to secure Ni & Co Resources.    

Nickel  NIC has signed a limonite supply agreement. 

Zinc & Lead  Gelion Technologies developed a Zn-Br flow battery, with potential.  

*Tin  Fitch increases Sn price forecasts.  SRZ reports multiple wide high grade Sn intercepts. 

Aluminium  Russia’s expected removal of export taxes likely to boost supply. 

Gold  Gold price up on USA Fed comments for a ‘slow’ increase in rates. 

Platinum & Palladium  Unprecedented demand for Pt for jewellery. 

*Oil  USA refiners are exporting the most gasoline in three years. 

*Iron Ore  Chinese industrial demand remained sluggish due to steel output curbs. 

Shipping  Maritime industry under scrutiny to reduce emissions.  Shipping accounts for 80% of global trade.

General 

USA & Australia – Yields:  Curves ‘normal’, but 10yr rates recently reduced, on uncertainty.

*USA – Purchasing Managers’ Index:  New Orders reduced but still strong outlook.

*USA – Construction Spending:  Private & Residential continue to grow.  Not Public & Non-Res.

*Japan – Orders to Machinery:  Machinery orders broadly improving.  Many at pre-covid levels.