Abans Group Commodity World Round Up

03 Jan - 07 Jan

1 . Fed’s December meeting indicated that officials are ready to aggressively dial back policy help

Jan 05 , 2022

The Federal Reserve at its December meeting began plans to start cutting the amount of bonds it is holding, with members saying that a reduction in the balance sheet likely will start sometime after the central bank begins raising interest rates, according to minutes released Wednesday. While officials did not make any determination about when the Fed will start rolling off the nearly $8.3 trillion in Treasurys and mortgage-backed securities it is holding, statements out of the meeting indicated that process could begin in 2022, possibly in the next several months.

Source: CNBC

2 .Unrest in Kazakhstan is keeping oil prices firm

Jan 07 , 2022

Oil prices rose and were heading for their biggest weekly gains since mid-December on Friday as unrest in Kazakhstan and outages in Libya fuelled concerns over supply. Security forces appeared to be in control of the streets of Kazakhstan's main city Almaty on Friday and the president said constitutional order had mostly been restored, a day after Russia sent troops to put down an uprising.The protests began in Kazakhstan's oil-rich western regions after state price caps on butane and propane were removed on New Year's Day.

Source: Reuters

3 .Libyan Oil Production Set For Partial Recovery

Jan 06 , 2022

Libya’s crude oil production is set for a partial gradual recovery sooner than expected after urgent repairs on a pipeline were completed earlier than initially planned, Argus reported on Thursday, citing the National Oil Corporation (NOC). Overall output, however, continues to be much lower than before the middle of December due to blockades at western oilfields. Currently, the country is producing around 730,000 bpd, per the latest NOC guidance cited by Argus. Libya’s oil production had slumped to 780,000 barrels per day (bpd) earlier this week, after maintenance work on a pipeline shut down 200,000 bpd output this week, adding to outages due to blockades at four oilfields since the end of December.

Source: Oil prices .com

4 .Electric cars to account for 73% of lithium demand by 2030

Jan 06 , 2022

The electric vehicle (EV) industry will dominate demand for lithium in the coming years, Chilean copper agency Cochilco said this week, accounting for almost three quarters of the battery metal’s consumption by 2030, up from 41% in 2020. According to the industry body, lithium hydroxide will take the leading role, reaching 56% of the total consumption versus 44% for carbonate by the end of the decade. This switch can be mainly explained by manufacturers’ growing preference for nickel-intensive cathodes, which tend to favour the use of hydroxide over carbonate.

Source: Mining .com

5 .Europe’s power crunch sparks aluminum smelter meltdown

Jan 07 , 2022

It’s turning into a winter of discontent for Europe’s aluminum smelters as they struggle to cope with rocketing power prices across the region. Four operators have announced curtailments totaling over half a million tonnes of annual production capacity, with others flexing output to mitigate power-load price spikes. European aluminum consumers are already paying the price. Physical premiums have surged, the CME’s duty-paid spot contract jumping from $290 per tonne at the start of December to a current $423.

Source: Reuters

6 .BHP’s Cerro Colorado copper mine in Chile hit by further water measures

Jan 05 , 2022

BHP will modify operations at its Cerro Colorado copper mine in northern Chile to lessen the impact of a fresh ruling that prevents the company from drawing water from a nearby aquifer for 90 days, while it appeals the environmental court’s decision. The world’s largest miner said on Friday that Chile’s First Environmental Court had issued a new precautionary measure related to the extraction of water from the Lagunillas aquifer, which would affect the mine’s $467 million operational continuity project.  

Source: Mining .com

7 . U.S. factory orders increase strongly in November

Jan 06 , 2022

New orders for U.S.-manufactured goods accelerated in November, but business spending on equipment likely struggled to rebound in the fourth quarter. Economists polled by Reuters had forecast factory orders advancing 1.5%. Orders increased 12.9% on a year-on-year basis. Manufacturing, which accounts for 11.9% of the economy, is being supported by businesses replenishing depleted inventories. There were increases in orders for computers and electronic products as well as transportation equipment. But orders for machinery fell as did those for electrical equipment, appliances and components.

Source: Reuters

8. Growth in China's Dec services accelerates 

Jan 06 , 2022

Activity in China's services sector expanded at a faster pace in December amid higher demand and easing inflationary pressure but continuing small-scale COVID-19 outbreaks weighed on the outlook, a private sector survey showed on Thursday. The Caixin/Markit services Purchasing Managers' Index (PMI) rose to 53.1 in December from 52.1 in November, remaining above the 50-point mark that separates growth from contraction on a monthly basis.

Source: Reuters