Of particular interest this week:
– OECD Composite Leading Indicators – a bit of a mixed bag, though the usual suspects tending to move consistently.
– Zinc-Lead – China planning to impose minimum production limits on small operations .
– Coal – Potential HCC Dec Qtr price rollover. .
-AUDUSD – rate fall … led to improvement of AUD denominated price changes this week.
SUMMARY
Copper – China’s inflation touched four mo lows, factory gate prices down. Look to power stations for upside.
Nickel – Philippines’ export bans likely to take time to be enacted (if at all).
Zinc & Lead – Expect tight credit in China to see inventory shipped into LME warehouses. CHina planning to implement a minimum production limit for small miners.
Tin – Indonesian smelters holding (inventory) out for higher prices. Risky business – trying to support prices.
Aluminium – Premiums increasing. .
Gold – Better economic conditions leading to softer outlook for gold prices.
Platinum & Palladium – South African mining output of Pt lower than expected.
Oil – USA supply is one driver of global glut of crude oil.
Coal – 40% of export coal producers are cashflow negative. Something has to give! AUDUSD? May have already started, but will it last?
Iron Ore – “end of the iron ore age” reports are premature. ‘Something has to give’ in this market too. Prices? FX will help small Aust producers.
Shipping – Mixed outcomes – Capesize slower, Panamax supported.
General
OECD Composite Leading Indicators: a bit of a mixed bag, though the outlosok(s) for the usual supects tend to be in line with expectations.