Abans Group Commodity World Round Up

6 June - 10 June

1 .European Central Bank confirms July rate hike plans, raises inflation projections significantly

9 June 2022

The European Central Bank confirmed its intention to hike interest rates at the policy meeting next month and downgraded its growth forecasts. Following the latest monetary policy meeting, the Governing Council announced it intends to raise key interest rates by 25 basis points at the July meeting. The ECB expects a further hike at the September meeting, but said the scale of that increment would depend on the evolving trajectory of the medium-term inflation outlook. For now, the interest rates on the main refinancing operations, marginal lending facility and deposit facility remain unchanged at 0.00%, 0.25% and -0.50%, respectively.

Source: CNBC

2 .China May copper imports up 4.4% on year as lockdowns ease

9 June 2022

China imported 465,495 tonnes of unwrought copper and products last month, up from 445,725 tonnes a year ago, and slightly higher than the 465,330 tonnes in April, according to data from the General Administration of Customs. Imports of copper concentrate, or partially processed copper ore, rose to a record 2.19 million tonnes in May, according to the customs data. China exported 676,605 tonnes of unwrought aluminum and products last month, the data also showed, the highest volume in at least nine years.

Source: Financial Post

3 .China May crude oil imports edge up, but refined oil product exports slump

9 June 2022

China's crude oil imports rose nearly 12% in May from a low base in a year earlier, although refiners were still battling high inventories with COVID-19 lockdowns and a slowing economy weighing on fuel demand last month.China imported 45.83 million tonnes last month, equivalent to 10.79 million barrels per day (bpd). That compares to 10.5 million bpd in April and to a 2021 average of 10.3 million bpd. January-May imports were down 1.7% versus the same period last year at 217 million tonnes, or about 10.49 million bpd.

Source: Reuters

4 .ETFs shed $3bn worth of gold assets in May

7 June 2022

The World Gold Council (WGC) reports that outflows of global gold-backed exchange-traded funds (ETFs) have ended their four-month run of positive inflows, with outflows totalling 53 t, or $3.1-billion, in May. While this was the largest monthly outflow since March 2021, total holdings remain 8% higher in the year-to-date, at 3 823 t, or $226-billion.

Source: Mining Weekly

5 .Central banks will continue to buy gold in 2022 - World Gold Council Survey

8 June 2022

Central Banks around the world continue to see gold as an important reserve asset and are expected to continue to buy gold through 2022, according to an annual survey from the World Gold Council. Wednesday, the WGC said that 57 central banks responded to its annual Central Bank Gold Reserves (CBGR) survey in its published results. Among the respondents, 25% said they expect to increase their gold reserves in the next 12 months. In the 2021 survey, 21% of respondents planned to increase their gold holdings.

Source: Kitco News

6 .Saudi Arabia hikes July crude prices surprisingly high for Asia buyers

6 June 2022

Saudi Arabia, the world's top oil exporter, raised July crude oil prices for Asian buyers to higher-than-expected levels amid concerns about tight supply and expectations of strong demand in summer. The official selling price (OSP) for July-loading Arab Light to Asia was hiked by $2.1 a barrel from June to $6.5 a barrel over Oman/Dubai quotes, just off an all-time-high recorded in May. That was much higher than most market forecasts for an increase around $1.5. Only one respondent of six in a Reuters poll had predicted a jump of $2. The hike by state oil producer Saudi Aramco came despite an agreement by OPEC+ states to boost output by 648,000 barrels per day (bpd) in July and a similar amount in August in an effort to offset Russian supply losses. That compares with an initial plan to add 432,000 bpd a month over three months until September.

Source: Reuters

7 .China COVID-19 jitters flare up as parts of Shanghai resume lockdown

9 June 2022

Shanghai and Beijing went back on fresh COVID-19 alert on Thursday (Jun 9) after parts of China's largest economic hub imposed new lockdown restriction and the city announced a round of mass testing for millions of residents. The most populous district in the Chinese capital, meanwhile, announced the shutdown of entertainment venues, while news of the lockdown of Shanghai's Minhang district, home to more than 2 million people, pulled down Chinese stocks.

Source: CAN