Abans Group Commodity World Round Up

27 Sept - 01 Oct

1 . Evergrande: Chinese property giant 'misses another payment deadline

Sept 30,2021

According to reports, Evergrande, the heavily indebted Chinese property giant, has missed interest payments to overseas investors for the second time in a week. Evergrande was supposed to pay out $47.5 million (£35 million) to foreign bondholders by Wednesday. Bondholders, however, told Reuters and Bloomberg that they had yet to receive payment. The company has a 30-day grace period under its investor agreements before the missed payments become a default. Evergrande missed an interest payment of $83.5 million on an overseas bond last week, but reached an agreement with domestic investors on a $35.9 million payment that was also due. The company is in debt to the tune of more than $300 billion.

Source: Reuters

2 . Nickel and Tin Tumble as China’s Power Crunch Escalates

Sept 27,2021

Nickel and tin prices fell sharply in LME on Monday as China's power outage spread from factories to residents, putting supply chains, demand, and the economy's recovery at risk. Nickel prices have been under pressure as the energy crisis has slowed production at stainless steel mills, and power restrictions are expected to tighten even more in the fourth quarter.

Source: Bloomberg

3 . OPEC+ may consider boosting output in tight market

Oct 1, 2021

Oil prices fell on speculation that the OPEC+ supplier alliance would boost a planned increase in output to alleviate supply concerns, as high gas prices prompted power producers to switch from gas to oil. All eyes are on a meeting of the Organization of Petroleum Exporting Countries (OPEC) and allies led by Russia, known as OPEC+, on Monday, where producers will discuss whether to go beyond their existing agreement to increase production by 400,000 barrels per day (bpd) in November and December.

Source: Reuters

4 .World proven crude reserves rose 0.2% in 2020, gas reserves fell 0.4%: OPEC report

Oct 1, 2021

OPEC said in its Annual Statistical Bulletin released Sept. 30 that proven crude reserves stood at 1.549 trillion barrels at the end of 2020, up from 1.546 trillion barrels at the end of 2019. According to the study, OPEC's 13 members hold 1.237 trillion barrels of reserves, accounting for 80 percent of global reserves. Meanwhile, proven natural gas reserves fell 0.4 percent to 206.7 Tcm, with OPEC members holding 73.7 Tcm. According to the report, global refinery capacity fell by 300,000 barrels per day to 101.1 million barrels per day in 2020, with the downstream sector in OECD countries declining sharply while Asia and the Middle East added capacity.

Source: hellenicshippingnews.com

5 . China's manufacturing activity unexpectedly shrinks in September, services offer support

Sept ,30 2021

China's factory activity unexpectedly shrank in September as a result of tighter electricity restrictions and higher input prices, but services rebounded as the Covid-19 outbreaks subsided, providing some relief to the world's second-largest economy. The official manufacturing Purchasing Manager's Index (PMI) fell to 49.6 in September from 50.1 in August, according to data released by the National Bureau of Statistics (NBS) on Thursday, the lowest level since February 2020. The official composite PMI for September, which includes both manufacturing and service activity, was 51.7, up from 48.9 in August.

Source: CNBC

6 .Chile copper output down in August as labor strikes dog production

Sept ,30 2021

In August, copper production in Chile, the world's top copper producer, fell 4.6 percent year over year due to lower ore grades and labour strikes at key mines. According to the agency, copper output fell to 466,928 tonnes in August. Chile's production fell 1.2 percent to 3.77 million tonnes in August 2021, compared to the same month the previous year. Soaring copper prices this year have given Chilean unions more bargaining power than in the past, escalating tensions in some labour negotiations, including a lengthy strike at Codelco's Andina mine near Santiago. Workers at the Caserones mine in Chile, which is owned by Japan's JX Nippon Copper, also went on strike in August.

Source: Reuters

7 .Fed Chair Powell calls inflation ‘frustrating’ and sees it running into next year

Sept ,28 2021

Federal Reserve Chairman Jerome Powell testified before the Senate Banking Committee. “The current inflation spike is really a result of supply constraints meeting very strong demand, and it's all linked to the economy reopening, which is a process with a beginning, middle, and end,” Powell explained. “The current inflation spike is really a result of supply constraints meeting very strong demand, and it's all linked to the economy reopening, which is a process with a beginning, middle, and end,” Powell explained.

Source: CNBC

8 .Peru reaches deal to temporarily lift blockade affecting Las Bambas mine

Sept ,29 2021

Peru's Energy and Mines Ministry said it had reached an agreement to lift a road blockade that was preventing MMG Ltd's Las Bambas copper mine from transporting metal to a port for export. In a tweet on Wednesday, Peru's Energy and Mines Ministry said it had reached an agreement to temporarily lift a road blockade that was preventing metal from being transported to a port for export at MMG Ltd's Las Bambas copper mine.

Source: Reuters