OECD CLI’s
Comments of particular interest are noted with ‘*’.
Matau’s Comments:
- OECD CLIs suggest that growth outlook for much of the world (except Europe) looks like picking up in late 2019 with much of Asian emerging countries currently in decent growth mode.
- Chinese Freight traffic for June reports good growth.
- Base metal inventories continue to remain tight. Most prices are in the ‘nose of pinch-point graphs. Pinchpoint positions are mostly less than 1 week’s consumption. However sentiment (geopolitical) continues to drive prices over fundamentals.
- Japanese LNG pricing is reacting to changes (liberalisation) of its energy markets.
SUMMARY
*Copper Recent slide in Cu prices to limit investment in new mines, creating a tighter future market.
*Cobalt Glencore to reduce Co output from DRC at current ‘low’ prices.
*Nickel Fears Indonesia will bring forward bans on Ni ore exports. Confirmed being considered.
Zinc & Lead NCZ progressing Century expansion. Woodmac summary of Zn mkt. Pb mkt OK near term.
Tin Indonesia’s refined Sn exports shrank.
Aluminium Rusal is restoring operations post USA sanctions. Concerned about USA-China trade tensions.
Gold Make reasonable estimates of future gold price. Most forecasts are ‘wishful thinking’.
Platinum & Palladium Pt-Pd price spreads.
*Oil USA EPA proposed new rule to limit states from stalling pipeline construction.
*Coal Tata Steel has large future HCC demand. China’s import controls settling into place.
Iron Ore Prices stabilising after large drop last week. Market to remain undersupplied to 2020.
Shipping Cape and panama rates softened.
General
*OECD Composite Leading Indicators: Most, except Europe, with good growth outlooks.
China – Freight: strong positive growth.
*USA – Baker Hughes Rig Counts: USA counts are down while rest of world counts are up.
*Japan – LNG prices: Prices fell heavily, on liberalised markets and with oil price falls.