Indian gold imports dip 5.5%, global central banks turn dovish & OPEC nations urged to increase oil production

23rd Mar – 29th Mar

1. China cuts subsidies on EV by 50%

March 26, 2019

China is scaling back subsidies on electric vehicles as the industry matures and costs fall. The cuts were deeper than expected. The government also warned to scale back subsidies and phase them out completely after 2020. Reduction of subsidies is mainly to encourage local manufacturers to rely on innovation rather than government assistance

Source: Bloomberg

2. Zinc premium of Cash over 3 months rose highest since January on inventory decline

March 28, 2019

The premium of cash LME zinc over the three-month contract rose to $56 a tonne this week, the highest since January, as LME zinc stock declined further to 55,225 tonnes, which is the lowest level since 2007

Source: Live Mint

3. Force majeure declared at Las Bambas, one of Peru’s biggest copper mines

March 28, 2019

Force majeure was declared at Las Bambas (one of Peru’s biggest copper mines, with about 385,000 tonnes in output in 2018). Reduction in production is expected to worsen the supply deficit for copper, thus acting as a tailwind for copper prices.

Source: Live Mint

4. Palladium slumps 7% over concerns of economic slowdown

March 28, 2019

Palladium slumped over 7 percent on Thursday, adding to the previous session’s sharp slide on concerns that an economic slowdown could dent demand. Palladium has lost more than $250, since it hit a high of $1,620.52 last week.

Source:Reuters

5. Global central banks are turning more dovish

March 28,2019

The Reserve Bank of New Zealand this week joined a growing list of central banks that have turned dovish amid signs of a slowing global economy, saying its next move in interest rates was likely to be a cut. The U.S. dollar rose versus other currencies following more dovish soundings from central banks and renewed expectations that the European Central Bank will keep rates low for longer.

Source:Reuters

6. Trump tweeted to OPEC nations to increase oil production

March 28, 2019

U.S. President Donald Trump pushed OPEC nations for higher oil prices. President Trump said that the cartel should increase production because prices are getting “too high.” It’s the second time this year that the President has taken to Twitter to urge the cartel.

Source:Bloomberg

7. US crude oil inventory increased surprisingly by 2.8 million barrels

March 27, 2019

Crude oil prices fell slightly after the US Energy Information Administration reported, for the week ending March 22, a moderate build of 2.8 million barrels against a report of a draw of 9.6 million barrels a week earlier. Gasoline production averaged 9.7 million bpd last week from 9.9 million bpd in the week before. Distillate fuel production averaged 4.9 million bpd last week, virtually unchanged on the week. Distillate fuel inventories fell by 2.1 million barrels.

Source:Reuters

8. India's gold imports dipped about 5.5% in value terms to $29.5 billion

March 24, 2019

India’s gold imports dropped about 5.5% in value terms to $29.5 billion during April-February 2018-19, Total imports of the precious metal in the corresponding period of 2017-18 stood at $31.2 billion. (Source - Commerce Ministry data)

Source:Moneycontrol