Abans Group Commodity World Round Up

16 Aug- 20 Aug

1 . Goldman Sachs predicts slower U.S. growth in 2021 due to the Delta variant

Aug 19, 2021

According to Goldman Sachs, the United States' gross domestic product will grow by 6% this year, up from a previous full-year forecast of 6.4 percent. That's less than the median forecast of 6.2 percent in a Bloomberg poll, which has a low estimate of 5%. Goldman raised its 2022 forecast to 4.5 percent, up from 4.4 percent previously. Economists at Goldman Sachs Group Inc. lowered their forecast for U.S. economic growth in 2021, citing a larger-than-expected impact from the COVID-19 delta variant, which could lead to more supply-chain disruptions and higher inflation.

Source: Bloomberg

2. Chile’s drought forces Antofagasta to cut Copper guidance

Aug 19, 2021

Antofagasta, a Chilean miner, said it had to cut its copper production target for the year due to a water shortage in the home country, which has been hit by a decade-long drought exacerbated by climate change. The miner now expects to produce between 710,000 and 740,000 tonnes of copper this year, down from 730,000 to 760,000 tonnes previously forecast.

Source: Mining.com

3. Fed members agree on tapering monetary policy in the next few months (FED Minutes)

Aug 18, 2021

According to meeting minutes released Wednesday, Federal Reserve officials made plans to slow down the pace of their monthly bond purchases before the end of the year. Concerns about interest rates were addressed by committee members, who emphasized the need to "reaffirm the absence of any mechanical link between the timing of tapering and the eventual increase in the federal funds rate target range." Officials from the Federal Reserve have stated repeatedly that tapering will take place first, with interest rate hikes unlikely until the process is complete and the central bank's balance sheet is no longer growing.

Source: CNBC

4. Oil extends losses on pandemic fear and gasoline inventory built

Aug 19, 2021

Crude prices have continued to fall this week, hovering near three-month lows, weighed down by growing concerns about slower fuel demand in the wake of an increase in Covid-19 cases around the world. The unexpected increase in gasoline inventories in the United States added to worries about demand slowing. The Energy Information Administration reported on Wednesday that crude inventories in the United States fell 3.2 million barrels last week to 435.5 million barrels, the lowest level since January 2020. However, gasoline inventories increased by 696,000 barrels to 228.2 million barrels, compared to analysts' expectations of a 1.7 million-barrel decline.

Source: CNBC

5. Copper falls on easing supply pressure

Aug 19, 2021

Copper prices were under pressure as supply disruptions eased. Residents near MMG Ltd's Las Bambas copper mine in Peru lifted a road blockade, and operations at Teck Resources Ltd's Highland Valley Copper operations in Canada resumed after a wildfire evacuation order was lifted, alleviating copper supply pressure.

Source: Reuters

6. China's factory output, retail sales miss expectations

Aug 16, 2021

Factory output and retail sales in China both increased more slowly than expected in July compared to the same month a year ago. China's industrial production increased 6.4 percent year on year in July, falling short of expectations of 7.8 percent growth and following an increase of 8.3 percent in June. Retail sales rose 8.5 percent year over year in July, indicating that consumption remained weak. After a 12.1 percent increase in June, analysts expected retail sales to rise 11.5 percent.

Source: Reuters

7.Iron ore tumbles on Growth fears

Aug 19, 2021

Worries about Chinese steel production, global growth risks, and the prospect of reduced US stimulus roiled metals markets, sending iron ore to a four-month low. Steel prices have fallen as a result of the iron ore slump, with expectations that Chinese demand will wane. Home prices grew at the slowest rate in six months, thanks to the country's efforts to cool the property market and curb rising prices.

Source: Bloomberg