China-Industry, WorldSteel, Germany, UK
Comments of particular interest are noted with ‘*’.
Matau’s Comments:
- USA Power transition is expected to occur with minimal protocol. Concerns remain about potential Trump-collateral damage that may be inflicted pre-20 January, and post-handover politics.
- USA still needs to make sure the ‘lame-duck’ does not cripple something else.
- Covid-19 infection numbers (and deaths) continue to grow in USA, Europe, India and South America.
- Notable that Vietnam, New Zealand and Australia achieved such low total infections / deaths and current infection rates without the benefit of a vaccine, just simple health practises.
- Industrially China (and parts of Asia) are recovering, while recovery in the rest of the world is a struggle.
- China’s industry and energy output has broadly positive growth (in this report).
- Transport conditions: freight and passengers are recovering.
- China’s demand for steel and copper continues to surge.
- China’s industry and energy output has broadly positive growth (in this report).
- Global steel output continues to grow, dominated by Chinese growth, though with notable contributions from a number of emerging economies.
- Gold price outlook remains replete with potential catalysts. Goldman Sachs retains its bullish outlook. Though price is not listening to the uber-bullish rhetoric in the face of potential improving global industry and markets.
- Base metals’ prices again lifted markedly upon reducing exchange stocks and expectations of improving outlook via stimuli.
- However it is unlikely that Covid-19 influence has finished yet, variably impacting both demand and supply.
- But look at the pinch-point graphs with base metals’ responses to looming demand and fundamentally tight markets !!!
- Oil market is watching the looming OPEC+ meeting for 30Nov-01Dec.
- Coal markets continue to have sub-optimal trade patterns due to China’s (unofficial) restrictions on Australian exports.
*Copper Spot TC’s at 8 yr lows. Concentrate markets are tightening. Price is responding.
Cobalt Cu & Co are used in almost every Li-ion rechargeable device.
*Nickel NIC signed to acquire interest in Angel Ni project (Indonesia).
*Zinc & Lead RVR renewed Zn-Pb conc off-take agreements.
Tin China Yunnan Tin opened new upgraded smelting capacity (to replace older units).
Aluminium China’s strong Al imports continue. Standards for scrap increased.
*Gold Gold price plunged while copper price soared.
*Platinum & Palladium Zimbabwe: An important economic basket case.
*Oil Focus on OPEC+ 30Nov – 01Dec meeting. Venezuela shipping oil despite US sanctions.
Coal China relaxed some coal import restrictions for northern power generators.
*Iron Ore China’s inventories of iron ore imports are at approximately 5 days.
Shipping Freight rates rebounded this week. Australian traffic to China still impeded.
General
*World Steel: Significant number of countries’ output is back to pre-Covid levels.
*China – Industrial & Energy Output: Remarkable positive growth, except for wine & beer
*China – Transport: Freight has recovered well above Covid lows, as has passenger traffic.
*Germany – Industrial Production: Durable goods & construction have +ve growth.
*United Kingdom – Industrial Production: IP and manufacture -ve growth but recovering (slowly)