Abans Group Commodity World Round Up

24 Jan – 28 Jan

1 .Fed likely to hike rates in March as Powell vows sustained inflation fight

Jan 27, 2022

The Federal Reserve is likely to hike interest rates in March and reaffirmed plans to end its bond purchases that month in what U.S. central bank chief Jerome Powell pledged will be a sustained battle to tame inflation. Subsequent interest rate increases and an eventual reduction in the Fed's asset holdings would follow as needed, Powell said, while officials monitor how quickly inflation falls from current multi-decade highs back to the central bank's 2% target.

Source: Reuters

2 .China's 2022 crude imports seen rebounding on new refineries, inventory refill

Jan 27, 2022

China's crude oil imports could rebound by 6-7% this year, reversing 2021's rare decline as buyers step up purchases for new refining units and to replenish low inventories, analysts and oil company officials said. Robust demand from China, which accounts for a tenth of the global crude trade, would help underpin global oil prices, keeping supplies tight amid forecasts for a jump in crude prices to $100 a barrel or more. Demand recovery, however, is not expected until the second half of the year as China continues to combat COVID-19 outbreaks and limit production by smaller refiners.

Source: Reuters

3 .China's 2022 gold jewellery demand seen supported by stable prices –WGC

Jan 27, 2022

China's gold jewellery demand is expected to be supported by stable gold prices in 2022, an official of the World Gold Council (WGC) said on Friday, despite fears of slowing economic growth in the world's top consumer of the precious metal. In terms of gold investment, demand for bars and coins are expected to rise as precious metals divisions of Chinese commercial banks will continue to push sales of physical gold products, added Wang. China's gold consumption last year rose by over a third from 2020, led by an uptake of gold jewellery, as its economy rebounded from the coronavirus impact, according to data from the China Gold Association.

Source: Reuters

4 .India's gold demand to keep rising after big jump in 2021: World Gold Council

Jan 28, 2022

India's gold consumption is expected to rise further in 2022 after jumping 79% last year as pent-up demand and an improvement in consumer confidence are seen boosting retail jewellery sales, the World Gold Council (WGC) said on Friday. Gold consumption in 2022 will likely be 800-850 tonnes versus 797.3 tonnes last year, the highest in six years, Somasundaram PR, regional chief executive officer of WGC's Indian operations, told Reuters. Indian demand has averaged 769.7 tonnes over the last 10 years. A rise in consumption by the world's second-biggest gold consumer would help global prices, but could widen India's trade deficit and put pressure on the ailing rupee.

Source: Mint

5 .Chilean Senate commission approves adjusted mining royalty bill

Jan 27, 2022

Chile’s Senate on Thursday pushed forward an amended version of the country’s mining royalty bill, which would raise tariffs on firms operating in the world’s top copper producing nation despite being watered down amid industry pushback. The commission said the bill would see an ‘ad valorem’ tax corresponding to 1% of annual sales of copper products applied to firms producing under 200,000 metric tonnes of copper per year. Mines producing under 50,000 tonnes would be exempt.

Source: Mining

6.Oil heads for sixth weekly gain amid supply concerns

Jan 28, 2022

This year, Oil prices have gained about 15% amid geopolitical tensions between Russia, the world’s second-largest oil producer and a key natural gas provider to Europe, and the West over Ukraine as well as threats to the United Arab Emirates from Yemen’s Houthi movement that have raised concerns about energy supply.

Source: Reuters

7 .Oil Rally Fueled By OPEC Production Shortfall

Jan 27, 2022

That OPEC’s spare oil production capacity was a problem that was only going to get worse with time became clear last year when the first reports began to emerge that the cartel and its partners led by Russia are not adding as much oil to their monthly output as agreed. Now, the gap between commitment and output has deepened, adding fuel to an already strong price rally. In December, OPEC+ added 253,000 barrels daily to its combined production falling well short of its 400,000-bpd target for yet another month in a growing row. Naturally, this fueled concern about the security of global supply amid forecasts from the International Energy Agency that oil demand is going to exceed pre-pandemic levels later this year.

Source: Oilprice

8. Euro zone economic sentiment eases in Jan

Jan 28, 2022

Euro zone economic sentiment deteriorated in January, data showed on Friday, pulled down by a more downbeat sentiment in the two key sectors of industry and services. The European Commission's monthly economic sentiment index fell to 112.7 points in January from a revised 113.8 in December. Economists polled by Reuters had expected a reading of 114.5 points. The decline of the overall index was mainly a result of less optimism in industry, where the index eased to 13.9 from 14.6 and in services, where it fell to 9.1 from 10.9.

Source: Reuters