Abans Group Commodity World Round Up

6 Dec - 12 Dec

1 .US government to end gas-powered vehicle purchases by 2035 under Biden order

Dec 08, 2021

The U.S. government plans to end purchases of gas-powered vehicles by 2035 in a move to lower emissions and promote electric cars under an executive order signed by President Joe Biden on Wednesday. The government owns more than 650,000 vehicles and purchases about 50,000 annually. Biden's executive order said that light-duty vehicles acquired by the government will be emission-free by 2027. Total federal government operations will reduce emissions by 65% by 2030 under the plan. The government will seek to consume electricity only from carbon-free and non-polluting sources on a net annual basis by 2030 and have net-zero emissions by 2050.

Source: Reuters

2 .Omicron threatens Asia oil demand

Dec 07, 2021

The Omicron coronavirus variant has curbed oil consumption in Asia just as U.S. and West African sellers pinned their hopes on the changing market structure paving an easier path eastward than competing oil from the Middle East. Brent crude's premium to Dubai quotes sank to $2.56 a barrel last week, the lowest since March, making the export of Atlantic Basin crude oil grades more attractive for Asian buyers, according to traders and Refinitiv data. Sales of Nigerian and Angolan oil to India have picked up along with sales of U.S. WTI Midland crude to East Asia. Angolan Girassol crude oil and Nigerian Qua Iboe have been offered at robust premiums of $1.60 and $1.40 above dated Brent a barrel respectively on a free-on-board basis - still cheap compared with Middle East light grades.

Source: Reuters

3. Gold Demand in India Seen Best in a Decade in Festival Quarter

Dec 09, 2021

Gold consumption in India will probably be the best in at least a decade in the current quarter as buyers stocked up for festivals in November and the peak wedding period that followed, according to the World Gold Council. India consumed 446.4 tons of gold in 2020 and purchases were about 360 tons in the first nine months of this year. Gross imports were about 400 tons last year and 703 tons from January to September this year.

Source: Bloomberg

4 .European zinc smelter power woes spark scramble for metal

Dec 08, 2021

European physical zinc premiums have shot higher since Glencore said its 100,000-tonne per year Portovesme zinc sulphide plant would stop producing zinc by the end of December. Fastmarkets assesses the premium for LME-grade SHG zinc in Italy at $400-450 per tonne over the LME cash price. The premium has doubled since the start of October. The Fastmarkets premium for zinc in Antwerp has nearly tripled from $95-105 at the start of the year to a current $250-280. Producers and consumers are currently negotiating terms for next year's deliveries with contracted pricing rising sharply in tandem with the spot market.

Source: Reuters

5. China’s iron ore imports rose 14.6% in November from a month earlier

Dec 07, 2021

Custom data showed China's iron ore imports jumped 14.6% in November from October to a 16-month high. China imported 104.96M metric tons last month, up from 91.61M mt in October and 6.9% above year-ago levels, according to the General Administration of Customs. The surprise in import growth was driven by a rebound in commodity volume, probably reflecting improving infrastructure capex demand as local governments stepped up stimulus toward the turn of the year

Source: Mining.com

6 .China’s Nickel and Copper imports accelerated

Dec 07, 2021

China’s refined nickel has accelerated appreciably since April with the cumulative January-October tally of 208,000 tonnes up 96% on the same period last year. China's recent import appetite is now stretching availability in a market already caught out by the strength of demand this year. Arrivals of unwrought copper and products into the world's top consumer of copper stood at 510,402 tonnes last month, the General Administration of Customs said. That was higher than 410,541 tonnes in October but still down 9.1% from a year earlier. However, Copper imports in the first 11 months of 2021 were down 19.9% on the year at 4.94 million tonnes, with last year's record inbound shipments of 6.68 million tonnes looking well out of reach.

Source: Reuters

7 .China’s Exports of Unwrought Aluminium and Aluminium Semis Hit a Record High in November

Dec 07, 2021

China exported 509,300 mt of unwrought aluminium and aluminium semis in November, up 6.2% from the previous month and 20.1% on the year, according to customs data. Exports totalled 5.06 million mt in January-November, up 14.9% on the year. The exports of unwrought aluminium and aluminium semis hit a record high since March 2020.

Source: SMM

8. MMG to shut down operations at Las Bambas copper mine by mid-December

Dec 06, 2021

Chinese miner MMG will end copper production from its Las Bambas mine in Peru by mid-December following months-long road blockades that have prevented essential supplies from reaching the operation. The company, a unit of state-owned China Minmetals, said that despite holding meetings with residents of the Chumbivilcas community, it was unable to reach an agreement with them due to what it qualified as “excessive commercial demands.” A three-week-long roadblock protest staged at the end of 2020 prevented MMG from exporting 189,000 tonnes of copper concentrate worth $530 million from the mine.  

Source: : ET Auto