Commodity Review 20191011 by Andrew Pedler – Now Available
Lithium
Comments of particular interest are noted with ‘*’.
Matau’s Comments:
- Lithium: South American miners are struggling to put downstream added value projects into place.
- The USA – China tariff talks & trade wars The recent “phase 1” agreement details have yet to see the light of day.
- Base metal inventories continue to remain tight. Low base metal inventories are beginning to get more attention in the media than previously.
SUMMARY
*Copper Strikes in Peru to affect output. RIO exploring (JV) in China.
Cobalt GEM Co agreement with Glencore for provision of cobalt hydroxide. Supply is ‘precarious’.
*Nickel Ni market is concerned about potential future supply shortfalls.
Zinc & Lead ZMI hits high grade Zn. NCZ achieves stable Zn operation. EPA lead pipe rules changed.
*Tin Chinese refined Sn output down on reduced feedstock supply. Conflict minerals’ compliance.
Aluminium A gap between alumina prices in China and in rest-of-world. Alunorte returns to production.
Gold High gold price dampens Indian buying ahead of Diwali festival. The world is nervous.
Platinum & Palladium Merger agreed for Implats to acquire North American Platinum.
Oil Attacks on Iranian tanker escalates issues. USA to send troops to Saudi Arabia.
Coal Aust coking coal exports increased. Chinese buyers acting ahead of expected port restrictions.
Iron Ore China’s Tangshan city extended steel production restrictions, that may favour lump iron ore.
Shipping New fuel regulations making freight rates more volatile.
General
*Lithium: supply chain issues for South American countries.
Port Hedland Iron Ore: China extended restrictions on steel mills that may favour lump ore..
*PinchPoint Graphs: tightening further and beginning to get price responses.
*Japan – LNG prices: Higher oil prices and ship-fuel costs could boost LNG prices further.