Abans Group Commodity World Round Up

04th Jan – 08th Jan

1.Silver slumped nearly 10% as political risks reduced in the US

Jan 8, 2021

Gold slumped more than 4% on Friday, and silver followed with a near 10% plunge, as prospects of a smooth transition of power in Washington, and a jump in U.S. Treasury yields, hammered the precious metals. Political risks in the US have reduced, as Democrats take control of the U.S. Senate. It has raised bets for large stimulus, and lifted the benchmark 10-year bond yield to its highest since March. This was negative for gold and silver prices.

Source: Reuters

2.Oil rallied 8% in the first week of 2021 on Saudi plans to cut production

Jan 8, 2021

Oil prices rallied nearly 8% in the first week of 2021, as OPEC kingpin, Saudi Arabia, continued with its lower-for-longer supply strategy. Saudi plans to cut an additional 1 million barrels per day from its production in February and March. The oil market’s attention has been almost entirely on the potential for reduced global supplies.

Source:Reuters

3.OPEC’s December oil production rises for the sixth month

Jan 6, 2021

Recovery in Libyan production and smaller rises elsewhere in the Group, is keeping OPEC oil production up for sixth months in a row. OPEC pumped 25.59 million barrels per day (bpd) in December, the survey found, up 280,000 bp, from November. In December, the biggest supply increase came from Libya, an OPEC member which is exempt from OPEC+ cuts, the survey found. Libyan output had been largely shut down for months due to unrest.

Source: Reuters

4.China's refined zinc output fell 1.57% on the month to 553,500 mt in December

Jan 8, 2021

China's refined zinc output stood at 553,500 mt in December, falling 8,800 mt, or down 1.57%, on the month, and up 3.06%, on the year. Operating rates at refined zinc smelters stood at 92.51% in November, down 1.14 percentage points, month-on-month, and up 5.26 percentage points, year-on-year, SMM survey showed.

Source: Metal.com

5.Copper prices rallied to a 8-year high on supply fears and stimulus hopes

Jan 6, 2021

Supply concerns at the Las Bambas mine in Peru, run by Australian-based MMG Ltd, due to a three-week-long roadblock protest, also supported copper prices, despite the company saying there had been no impact on production so far. Copper prices also found support on Wednesday, amidst hopes for more U.S. stimulus, as Democrats edged closer to taking control of the Senate.

Source: Reuters

6.U.S. loses 140,000 jobs in December, a first decline in eight months

Jan 8, 2021

The U.S. lost jobs in December for the first time in eight months, as the coronavirus bore down on the economy again, and forced businesses to resort to more layoffs. The government and private sector shed 140,000 jobs last month, the Bureau of Labour Statistics said on Friday. The decline in employment was the first since last April, when the U.S. lost a gargantuan 20.8 million jobs in that one month alone. The official unemployment rate, meanwhile, was unchanged at 6.7%. 

Source: MarketWatch

7.Eurozone factories bounce back along with Asian economies in December

Jan 4, 2021

Manufacturers across Europe ended 2020 on a high, while Asian factory activity expanded moderately, thanks to robust demand in regional giant, China. IHS Markit’s final Eurozone Manufacturing Purchasing Managers’ Index (PMI) rose to 55.2 in December, from November’s 53.8, although that was below the initial 55.5 “flash” estimate. Germany was again the bloc’s driving force in the Eurozone. Manufacturing activity expanded in Japan, South Korea, and Taiwan, according to PMI surveys. The latest indication manufacturers in Asia continue to bounce back from the damage caused by the COVID-19 pandemic last year.

Source: Reuters

8.Fed Officials agreed that markets would get plenty of notice before the asset purchases were curtailed

Jan 6, 2021

Federal Reserve officials agreed at their December meeting to make sure that the public gets plenty of notice before the central bank’s bond purchases are reduced. FOMCE Meeting minutes released on Wednesday showed that the Federal Open Market Committee was largely in agreement about the program. The central bank has been buying at least $120 billion in Treasury and mortgage-backed securities each month, and at the meeting, pledged to keep doing so until it sees “substantial further progress” towards its goals, regarding inflation and employment.

Source: CNBC