Abans Group Commodity World Round Up

17 Jan – 21 Jan

1 .China's central bank will roll out more policy measures to stabilize the economy 

Jan 18 2022

China's central bank will roll out more policy measures to stabilise the economy and move ahead of the market curve as downward pressure persists, vice governor Liu Guoqiang said on Tuesday, following the latest rate cut. The PBOC would use various policy tools to keep liquidity reasonably ample, and guide financial institutions to expand credit, especially for small firms, tech innovations and green development, Liu said. In 2022, the central bank would keep growth of money supply and total social financing basically in line with nominal economic growth, he said.

Source: Reuters

2 .China cuts rates on policy loans

Jan 17 2022

China's central bank on Monday unexpectedly cut the borrowing costs of its medium-term loans for the first time since April 2020, while some market analysts expect more policy easing this year to cushion an economic slowdown. The People's Bank of China (PBOC) said it was lowering the interest rate on 700 billion yuan ($110.19 billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions by 10 basis points to 2.85% from 2.95% in previous operations.

Source: Reuters

3 .U.S. crude exports ramp up as global demand recovers

Jan 21 2022

U.S. crude exports are ramping up due to increasing demand from Asia and Europe and recovering U.S. production from the lows of the coronavirus pandemic. U.S. seaborne crude exports have increased in recent weeks and are close to 3 million barrels per day so far this month. That's just under the 3.2 million bpd average in crude exports in December, which was the strongest month since February 2020.

Source: Reuters

4 .OPEC sees well supported oil market in 2022, despite Omicron

Jan 18 2022

OPEC on Tuesday stuck to its forecast for robust growth in world oil demand in 2022 despite the Omicron coronavirus variant and expected interest rate hikes, predicting the oil market would remain well supported through the year. In a monthly report, OPEC said it expects world oil demand in 2022 to rise by 4.15 million barrels per day (bpd), unchanged from last month. Oil use will surpass the 100 million bpd mark in the third quarter, also in line with last month's forecast.

Source: Reuters

5 .Iran’s Oil Industry is preparing for life after sanctions

Jan 20 2022

Iran is taking its oil future into its own hands, despite ongoing sanctions from the U.S. With higher oil sales and revenues in 2021, Iran is planning to invest in its oil industry by opening a new refinery, constructing a new pipeline, and fostering international relationships to enhance its export opportunities. This month, the Head of National Iranian Oil Company (NIOC) Mohsen Khojasteh-Mehr stated that oil revenues climbed significantly in 2021. This has been supported by both public and private sector investments in the country’s oil industry. Iran has seen an increase in its sales of crude oil as well as gas condensates and petrochemical products in recent months. 

Source: Oil price

6 .BOJ raises price outlook but maintains ultra-easy policy

Jan 17 2022

The BOJ left unchanged a -0.1% target for short-term interest rates and a pledge to guide long-term rates around 0% . The Bank of Japan also upgraded its inflation forecasts and said risks to the price outlook were evenly balanced, in a nod to signs the recent commodity-driven rise in inflation was broadening. But with inflation set to remain below its 2% target in the coming years, the BOJ stressed its resolve to maintain its ultra-loose monetary policy even as its global counterparts move toward exiting from crisis-mode policies.

Source: Reuters

7 .China's copper exports hit record high in 2021

Jan 18 2022

China's copper exports rose to an annual record in 2021, according to customs data on Tuesday, as higher international prices during some months last year encouraged traders to ship metals overseas. Annual shipments last year were at 932,451 tonnes, up from 744,457 in 2020. For the month of December, exports of unwrought copper and copper products stood at 78,512 tonnes, the General Administration of Customs said. That was down 3.9% from 81,735 tonnes in November, but up 13.9% year-on-year.

Source: Reuters

8 .Supply shortage forced Nickel prices to their highest since 2011

Jan 19 2022

Nickel prices on Wednesday shot to their highest since 2011 as a supply shortage forced traders to pay huge premiums to get their hands on metal. Used in stainless steel and for batteries for electric vehicles, nickel is up around 11% this year after rising 25% in 2021 and 18% in 2020. Stocks in LME-registered warehouses have fallen to 94,830 tonnes from more than 260,000 tonnes in April. Inventories in Shanghai Futures Exchange warehouses, at 4,711 tonnes, are near record lows.

Source: Reuters