Abans Group Commodity World Round Up

29 Nov- 3 Dec

1 .OPEC+ sticks to January output hike

Dec 02 , 2021

On Thursday, OPEC and non-OPEC oil producers, known as OPEC+, opted to stick to a previously agreed-upon plan to increase output by 400,000 barrels per day in January. The alliance, however, stated in a statement that "the meeting is still in session," implying that they can "make fast adjustments" if market conditions change. OPEC+ had been widely expected to stick to its current strategy of increasing monthly output by 400,000 barrels per day. However, some questioned whether the company would be tempted to take a break after a period of high price volatility to review the market.

Source: CNBC

2 .Copper production in Chile falls 3.2% in October

Dec 02 , 2021

Domestic copper production in October 2021 was 470,700 tonnes, down 3.2 percent from 486,500 tonnes mined in October 2020, according to a report released today by Chile's official copper commission Cochilco. In October 2021, Escondida, the world's largest copper mine, produced 84,700 tonnes of copper, down 15.2 percent from October 2020. (99,900 tonnes). In October 2021, Collahuasi, the world's second largest copper mine, produced 49,500 tonnes of copper, up 17.3 percent from 42,200 tonnes in October 2020. According to Cochilco, Codelco, the world's largest copper mining corporation, produced 144,100 tonnes of copper in October 2021, down 9.9% from October 2020.

Source: Mining

3 .China property market to keep cooling into H1 2022 on tight curbs

Dec 02 , 2021

According to a Reuters poll, China's property crisis will continue through the first half of 2022, with home prices and sales sliding as tight credit rules and an impending property tax reduce demand. According to 14 analysts and economists polled by Reuters from Nov. 26 to Dec. 1, average home prices are expected to drop 1.0 percent in the first half of 2022. Home prices are anticipated to grow 2.6 percent in 2021, down from 3.5 percent in the previous survey and after a gain of roughly 4.9 percent in 2020.

Source: Reuters

4 .US House to consider bill to clamp down on products from China's Xinjiang

Dec 02 , 2021

Representative Jim McGovern, the bill's sponsor, told that the US House of Representatives is slated to discuss a bill next week that would ban imports from China's Xinjiang region due to worries about forced labour. Next week, President Joe Biden will hold a summit of democracies, which is considered as a response to China's expanding might. For months, Republicans and Democrats have fought over Uyghur legislation. Senator Marco Rubio, a Republican, has recently demanded that the bill be added as an amendment to the National Defense Authorization Act, or NDAA, delaying the Senate's consideration of the large yearly law that sets Pentagon policy.

Source: Reuters

5 .Powell's comments on tapering make him sound hawkish

Nov 30 , 2021

Fed Chair Jerome Powell said officials should consider reducing pandemic support sooner rather than later, potentially paving the road for interest-rate rises sooner than expected. Powell told the Senate Banking Committee on Tuesday that the topic might be reviewed at the Fed's next meeting on December 14-15, when more information on the new coronavirus strain will be available. Powell also discontinued the use of the term "transitory" to characterize persistently high inflation.

Source: Bloomberg

6 .U.S. crude production falls 3.5% in Sept after Ida hit offshore output

Nov 30 , 2021

According to a monthly report released on Tuesday by the US Energy Information Administration, crude oil production in the United States declined 3.5 percent in September after Hurricane Ida temporarily suspended most crude production in federal waters of the Gulf of Mexico. According to the data, crude output fell 380,000 barrels per day to 10.809 million barrels per day in August, down from a revised 11.189 million barrels per day in August. Production in the offshore Gulf of Mexico declined by 464,000 barrels per day, offsetting improvements onshore.

Source: Reuters

7.OPEC oil output boost in November again falls short of target

Nov 30 , 2021

The Organization of Petroleum Exporting Countries (OPEC) pumped 27.74 million barrels per day (bpd) in November, up 220,000 bpd from the previous month but still short of the 254,000 bpd increase allowed under the supply agreement. As demand improves after the epidemic, OPEC and its allies, known as OPEC+, are progressively loosening 2020 output curbs. However, many smaller producers are unable to increase output, and others are concerned of over-pumping in case of further COVID-19 delays.

Source: Reuters

8 .Aluminium LME inventories of the metal dropping lowest since September 2007

Dec 01 , 2021

Aluminium prices were boosted by a decline in LME stockpiles to 893,775 tonnes, the lowest since September 2007 and down 55% from March. According to exchange data, the majority of metals have recently left Malaysian storage. The LME cash aluminium premium over the three-month contract increased to $16.30 per tonne, signaling supply constraints in the short term.

Source: Reuters