Abans Group Commodity World Round Up

16th Nov - 20th Nov

1.Optimism over a coronavirus vaccine has improved significantly

Nov 18, 2020

In positive news over a covid vaccine, Pfizer Inc and BioNTech are likely to secure emergency U.S. and European authorizations for their COVID-19 vaccine next month, after final trial results showed it had a 95% success rate and no serious side effects. Prices of metals and oil are trading firm, following this increased optimism over a vaccine.

Source: Bloomberg

2. Vedanta Zinc International suspended mining at its Gamsberg zinc mine

Nov 18, 2020

Zinc prices rallied to a near 18-month high this week, as a mine shutdown in South Africa is likely to keep prices firm. Vedanta Zinc International suspended mining at its Gamsberg zinc mine in South Africa, after a geotechnical failure trapped 10 employees. The mine produces 250,000 mt of zinc a year at full output.

Source: Reuters

3.Chile’s Candelaria copper mine workers reject new offer from Lundin

Nov 18, 2020

Copper prices are trading near multi-month highs, after one of the worker unions at Candelaria copper mine in Chile has reportedly rejected Canadian firm Lundin Mining’s new contract offer on 17th November. The ‘Candelaria Union’ rejected the offer ‘by a vote of 366 to 159’. Due to the current labour action, Lundin withdrew this year’s production guidance of 145,000 mt - 155,000 mt of copper (Cu) and 80,000 oz - 90,000 oz of gold (Au).

Source: Reuters

4.Stimulus talks moving forward once again has supported gold

Nov 20, 2020

Gold prices rebounded on Friday, after US Treasury Secretary, Steven Mnuchin, said that the US Federal Reserve has “enough firepower” to continue to support the economy. The comments came a day after Mnuchin called for several emergency lending programs to expire by the end of the year. Stimulus hopes have re-emerged and are supporting gold prices.

Source: Mining.com

5.OPEC+ is leaning towards delaying the current plan to boost output

Nov 17, 2020

OPEC+, comprising the Organization of the Petroleum Exporting Countries, Russia and other producers, met on Tuesday but made no formal recommendations. The Group is due to discuss policy at a full ministerial meeting to be held on November 30 and December 1. Members of OPEC+ are leaning towards delaying the current plan to boost output in January by 2 million barrels per day (bpd), sources have said. They are considering a possible delay of three or six months.

Source: CNBC

6.Brexit deal close to being finalised: EU Ambassadors

Nov 20, 2020

A trade and security agreement with Britain is close to being finalised, but the risk remains of an accidental no-deal Brexit in six weeks, with gaps on the contentious issues “slowly shrinking”, EU ambassadors have been told. The European Commission President, Ursula von der Leyen, offered fresh cause for optimism during a press conference. EU sources have said that they were increasingly optimistic that an agreement could be found, although time was said to be a concern.

Source: The Guardian

7.Britain is on course for a double-dip recession after new lockdown measures

Nov 20, 2020

Britain is on course for a double-dip recession, as renewed lockdown measures to prevent the spread of Covid, came into force.  The services industry was forced to close for the most of November, and the economy is expected to contract by 2.5% this quarter, instead of a growth projection of 2.6% for this quarter. Following an historic 19.8% contraction in the second quarter, the economy is expected to shrink by 11.0% this year, and expand by 5.3% in 2021, much worse than the respective -10.1% and +6.1% ,which were forecast in the last month.

Source: Reuters

8.Oil Rig count falls for the first time in 2 months

Nov 20, 2020

Baker Hughes reported on Friday that the number of oil rigs in the United States fell by 5, to 231, ending eight weeks of an increase to oil rigs in the U.S. The total number of active oil and gas rigs decreased for the week by 2, with oil rigs decreasing by 5, and gas rigs rising by 3. Total oil and gas rigs in the United States are now down by 493, compared to this time last year.

Source: Oilprice