Commodity Review 20190125 by Andrew Pedler – Now Available
Comments of particular interest are noted with ‘*’.
As with last week’s report on OECD CLI, commodities markets and other economic data are indicating slowing growth. However base metal markets remain tight with most prices increasing this week.
.SUMMARY
*Copper Outlook for Cu is supported by ‘digital age’ demand, despite IMF reduced growth outlook.
Cobalt Major consumers teaming up, using blockchain, to track Co sales from DRC.
*Nickel Outlook for Ni is for deficits.
*Zinc & Lead Zn prices at 3mo highs. Market is balanced … ‘knife-edge’. PEX drilling.
Tin Sn market tension ‘eased’ by large LME delivery.
Aluminium USA-China trade tensions supporting Al prices, and Indian import volumes.
Gold Au price up. USA Fed, IMF, China-USA trade talks, all in the pot to influence Au price moves.
Platinum & Palladium South Africa is seeing an increase in Pt output.
Oil Venezuela: contributes to uncertainty of supply for oil.
Coal Chinese thermal prices up ahead of Chinese NY. Indonesia pursuing domestic cargo insurance.
Iron Ore China’s economic growth slowing. Uncertain how much effort Govt will make to boost demand.
Shipping Panamax and Supramax rates down.
General
*World Airport Runway Elevations: About 10% are less than 5m above sea level.
*China: Industrial and Energy output: +ve growth focussed in high tech, tspt & consumer.
*Germany – Industrial Production Durable Goods, Construction: -ve IP & durables. +ve constr.
*United Kingdom – Industrial Production & segments: negative growth.