Abans Group Commodity World Round Up

30 Aug- 3 Sept

1. OPEC+ sticks to gradual oil output hikes, ups demand forecast

Sept 01, 2021

OPEC and its allies agreed to stick to their existing policy of gradual oil output increases, despite revising its 2022 demand outlook upwards and ongoing U.S. pressure to raise production more quickly. The Organization of the Petroleum Exporting Countries and allies led by Russia agreed in July to phase out record output cuts by adding 400,000 barrels per day (bpd) of oil a month.

Source: Reuters

2. ECB Decisions to Reflect Better Growth: De Guindos, ECB Vice President

Sept 01, 2021

The euro zone economy is growing quicker than earlier predicted and the European Central Bank will factor this into its policy decisions, ECB Vice President Luis de Guindos told a Spanish newspaper. As borrowing costs stay extra low and the euro zone has largely avoided the worst of the pandemic’s Delta variant, several policymakers have called for a reduction in emergency bond purchases as soon as next week, in preparation for their end next March.

Source: Reuters

3. Copper royalty bill clears another hurdle in Chile

Aug 31, 2021

A bill that would create the heaviest tax burden among major copper-producing nations was approved by a Chilean senate mining committee on Tuesday. Chile, like other host nations, is looking for a bigger share of mining profits to help resolve inequalities exacerbated by the pandemic. At the same time, the country is drafting a new constitution that may lead to tougher rules on water, mineral and community rights ahead of presidential elections in November.

Source: Bloomberg

4. China starts latest metal auctions after Xi's call for better reserves system

Aug 31, 2021

 China kicked off auctions for another 150,000 tonnes of industrial metals on Wednesday, the third round of sales from its state reserves this year as Beijing aims to ease the pressure of high commodity prices on businesses. China is offering processors and manufacturers the chance to bid for 30,000 tonnes of copper, 70,000 tonnes of aluminium and 50,000 tonnes of zinc reserves on online platforms operated by state-run metals firms.

Source: Reuters

5. China's manufacturing PMI slides to 50.1 in August

Aug 31, 2021

The official purchasing managers index for China's manufacturing sector declined for the fifth consecutive month to 50.1 in August, the lowest level in 18 months, indicating a softening expansion of the sector, the National Bureau of Statistics said on Tuesday. Despite the slowdown, the PMI has stayed above the mark of 50, which separates expansion from contraction, as production maintained steady growth, the bureau said. The reading was down from 50.4 in July, as market demand weakened while delivery time lengthened, the NBS said. The subindex of new orders dropped into contractionary territory for the first time in 18 months and came in at 49.6, versus 50.9 in July.

Source: China Daily

6. China aluminium cuts exceed 2 mln tonnes so far

Sept 02, 2021

The amount of annual aluminium capacity shut down in top producer China so far this year has exceeded 2 million tonnes and could rise further, state-backed Chinese research house Antaike said on Thursday. Several Chinese regions - including the smelting hubs of Yunnan, Xinjiang and Inner Mongolia - have imposed restrictions on aluminium makers' electricity consumption or metal production in recent months because of tight power supplies and pressure to reduce emissions.

Source: Reuters

7. Aluminium hits more than 10-year high as supply worries grow in India

Sept 02, 2021

Aluminium prices hit a more than 10-year high on Thursday on concerns over supply of the energy-intensive metal, which were stoked further as several power plants in India were on the verge of running out of coal. India has urged utilities to import coal to boost domestic supply of the fuel as coal-fired generation surged after an easing of coronavirus-related curbs.

Source: Reuters

8. Russia’s Oil Production To Drop By Just 1% This Year

Sept 03, 2021

Russia’s oil production this year is expected to be 1 percent lower compared to 2020, in view of the OPEC+ agreement, Energy Minister Nikolai Shulginov said on Thursday. Russian oil production will reach 506 million tons by the end of this year, which would be 1 percent down from last year, the minister told reporters on the sidelines of an economic forum in Vladivostok, as carried by Russian news agency TASS. 

Source: Reuters