Commodity Review 20180914 by Andrew Pedler – Now Available
AUD Price XY Plots
This week’s comments of particular interest are noted with ‘*’.
SUMMARY
*Copper Chile studying a proposal to increase mineral royalties. Support for the bill is doubtful.
Cobalt COB begins large drill campaign. HAV completed metallurgical drilling
*Nickel Several global metals producers looking toward Indonesian Ni via HPAL for EV markets.
Zinc & Lead NCZ delivering Zn conc. via pipeline to Karumba. TZN DFS on Tala Hamza-Amizour. PEX’s Wagga Tank
Tin ITA estimates increased refined tin demand in 2017.
Aluminium Iran’s Al consumption increased by 12% in 2017.
Gold Gold price forecast to be rangebound pending delivery of Federal Reserve rates expectations.
Platinum & Palladium South African Pt production continues, supported by a weak ZAR, but margins are challenging.
*Oil China’s oil production up marginally. Oil & gas imports up markedly.
Coal Coking coal demand from India and China supporting prices. Adani redesigned its rail plans
Iron Ore China’s steel output eased in August after record highs in July.
Shipping Cape rates up, Panamax rates up as well.
General
AUD / commodity XY plots: generally a relationship with AUD following prices.
Port Hedland – Iron ore Shipping: Shipments to China up almost 10%.
Port of Singapore – ship traffic: Total traffic down but container traffic up.
USA PMI: strong outlook.
USA Industrial Production & Capacity Utilisation: strong IP growth, and Cap.Ut rising.
Japan – LNG prices: Contract prices following oil prices (up).