Gold, Durable Goods
Comments of particular interest are noted with ‘*’.
· Base metal markets remain excruciatingly tight!
· High power costs are widely impacting global smelters’ output(s).
· The Chinese New Year (Year of the Tiger) begins 01 February 2022, with a week long holiday break for many operations.
- 2022 is a year of the Tiger, starting from February 1st, 2022, and ending on January 21st, 2023. It is a Water Tiger year.
- The Tiger is known as the king of all beasts in China. The zodiac sign Tiger is a symbol of strength, exorcising evils, and braveness.
· Copper Copper required for EVs is multiples of that required for ICE.
· Cobalt Demand growth forecasts are strong. Supply is likely to struggle.
· Nickel Ni supply will be stretched to meet forecast demand. POS’ outlook for redevelopments is good.
· Zinc & Lead Zn & Pb TCs increased. European power cuts continue to hamper Zn & Pb production.
· Tin Tin is experiencing scarcity pricing, in the grip of a prolonged supply-chain crunch.
· Aluminium European power prices, Russia/Ukraine, China approaching holidays with minimal stockbuild.
· Gold Gold price’s worst week since November.
· Platinum & Palladium Pt prices expected to increase over the next two years, on substitution for Pd, which may drift. .
· Oil OPEC+ unable to meet proposed production increases (so far).
· Iron Ore A renewed building boom in China & fears of Australian supply disruption.
· Shipping Merchandise world trade volumes +10.6% yr-on-yr in 2021, surpassing its pre-pandemic level..
· World Gold – demand: Strong demand in the Dec21Qtr, notably jewellery. Negative long yields.
· USA – Durable Goods orders: Durables growth is strong, but vot Vehicles, nor Electronics.