Pt Hedland, USA-CPI

Dear Margaret

(ref no: 902)

Comments of particular interest are noted with ‘*’.  

Matau’s Comments:

  • Australia’s CPI has increased to a relatively comfortable 3% (Sep21Qtr) while USA’s CPI has jumped to >6% in November.
    • The USA CPI jump has had impacts on outlook for commodities, outlook for sentiment driven markets (gold).
  • China’s CNY has been progressively increasing in value against USD (over the past 18 months).  PBoC has indicated it will lighten its controls over the trading of CNY. 

SUMMARY  

*Copper  The global refined copper market is expected to be in a significant surplus in 2022. 

**Cobalt  Power struggle developing for access to cobalt supply, & other ‘Clean Energy’ metals..  

*Nickel  Primary Ni market may move to surplus but ‘class 1’ nickel may remain in deficit.  

*Zinc & Lead  Zn TCs increased.  ‘Renewable hydrogen facility planned for Port Pirie SA. 

Tin  Chinese tin output reduced on output restrictions. . 

Aluminium  Chinese output constraints are skewing the market. 

Gold  Price moved by USA CPI and USA 10yr yields’ impact on fiscal policies. 

*Platinum & Palladium  Reduced demand for both Pt & Pd is over semiconductor chip shortages. 

*Oil  Prices up buoyed by easing sentiment over the Omicron coronavirus variant. 

Iron Ore  Prices slipped on rising China ports inventory.

Shipping  Baltic indices reduced Friday though increased for the week.

General 

*Inflation – USA & Australia:  USA inflation rockets to >6%.

*USA Purchasing Managers’ Index:  Outlook reported at a strong >60 level.

*Port Hedland – Iron Ore Exports:  +ve growth from China, Japan, Taiwan, Indonesia & Vietnam