Abans Group Commodity World Round Up

26 Jul- 30 Jul

1. The Fed is not considering cutting its purchases of mortgage-backed securities

Jul 28, 2021

Despite lingering concerns about Covid-19, the Federal Reserve decided to keep rates unchanged and stated that the US economy is recovering. Chair Jerome Powell stated that the US economy is still far from making "substantial further progress" toward price stability and maximum employment. Powell stated that the US economy is still a long way from achieving "substantial further progress" toward the Federal Reserve's dual goals of price stability and maximum employment.

Source: CNBC

2. Shrinking U.S. Crude Inventories keeping oil prices firm

Jul 29, 2021

For the week ending July 23, the US Energy Information Administration (EIA) stated that crude oil stockpiles fell by 4.1 million barrels per day, compared to an expectation of 2.92 million barrels per day. Stocks of gasoline also declined, bringing them back to pre-pandemic levels. Fears that production increases may outrun demand are being assuaged by lowering stocks and steady-as-she-goes U.S. oil production.

Source: Reuters

3. Goldman Sachs Predicts Drastic Rise In Power Demand Due To EVs

Jul 29, 2021

According to Goldman Sachs Predictions, battery electric and plug-in hybrid electric vehicles account for just approximately 1% of the present automobile fleet, but this is predicted to climb to 13% by 2030 and 32% by 2040. With adoption comes an increase in energy requirements. According to Goldman, the change will have a "effect of 2.4 percent to our 2030 electricity demand prediction and 5.7 percent to our 2040 view."

Source: Oilprice.com

4. US GDP rose 6.5% last quarter, well below expectations

Jul 29, 2021

The economy of the United States grew at a dismal rate in the second quarter, according to the Commerce Department, indicating that the country has escaped the clutches of the Covid-19 pandemic but still has work to do. On an annualised basis, gross domestic product, which measures all goods and services generated from April through June, increased by 6.5 percent. That was marginally better than the first-quarter gain of 6.3 percent, which was revised down significantly.

Source: CNBC

5. Union at BHP’s Escondida copper mine calls for strike

Jul 29, 2021

Workers at BHP's Escondida copper mine in Chile have been urged to reject the company's latest collective bargaining offer and vote to strike legally. From July 29 to July 31, the company's current labour contract offer will be voted on by Union No 1, which represents more than 2,000 workers. Escondida is the world's largest open-pit copper mine, with 1.18 million tonnes produced in 2020 and 426,700 tonnes produced in the first five months of 2021.

Source: Argusmedia

6. Aluminum prices have been pushed up by power usage restrictions in China's industrial provinces.

Jul 30, 2021

Power usage curbs enforced in a major Chinese production province triggered supply fears, causing aluminium prices in Shanghai to rise on Friday, edging closer to a monthly gain. Henan Shenhuo Coal & Power Co Ltd said on Thursday that local authorities had imposed power consumption limits on its aluminium subsidiary in Yunnan's major industrial region.

Source: Reuters

7. Iron ore prices collapse under gloomy China demand outlook

Jul 30, 2021

China's vow to limit steel output in line with its de-carbonisation push, as well as weakening domestic demand for the building and manufacturing material, sent Asia's iron ore futures down on Friday. China's top steel manufacturer has urged mills to limit this year's output to no more than 2020 levels, after first-half output increased about 12% year on year, driving robust iron ore demand and pushing prices to record highs in May.

Source: Reuters

8. Global gold investment down 60% in first half of 2021

Jul 29, 2021

According to a research released Thursday by the World Gold Council, global gold demand fell by 60% in the first half of this year compared to the same period in 2020, as investment in the precious metal fell by 60%. The investment segment of gold demand, which includes bars and coins as well as gold-backed exchange-traded funds (ETFs), totaled 455.9 metric tonnes in the first half of the year, down 60% from the same period a year ago, when gold ETF inflows were at an all-time high, according to the World Gold Council report.

Source: Marketwatch