Indian sugar production set to rise to 32 million ton , IMF predicts global output to shrink by 4.9% & Gold prices soar to 8-year highs

22nd Jun – 26th Jun

1. Coronavirus may affect Copper production in Chile

Jun 22, 2020

Labour unions at copper miner, Codelco, in Chile, threatened to take steps to force stricter health policies, after two employees at the company died from the novel coronavirus. One victim was identified as an employee at Chuquicamata. It is one of the largest open-pit copper mines in the world. The death will further pile pressure on the country’s economically key copper mining industry, as unions seek greater protection for workers. As on 25th June, Chile reported that about 254,416 people were infected with the virus, while the country recorded 4,731 confirmed deaths.

Source: Reuters

2. Goldman Sachs Group forecasts that Gold will hit a record US$2,000 in 12 months

Jun 24, 2020

Gold prices are potentially opening the way for a move towards record prices, as resurgence in the coronavirus cases risks impeding the recovery of the global economy. Real interest rates in US are negative; banks, such as the Goldman Sachs Group, have now forecast that it will hit a record US$2,000 in 12 months. Safe-haven demand continues to support gold prices. Holdings in bullion-backed exchange-traded funds (Gold ETF) have soared to a record, rising almost 600 tonnes this year.

Source: Reuters

3. Gold prices soar to 8-year highs as fears of second coronavirus wave grow

Jun 24, 2020

Gold futures prices have rallied to their highest levels in eight years. The ongoing coronavirus pandemic is supporting this rally in Gold. Newly diagnosed cases of Covid-19 and other indicators of the pandemic's spread soared in hotspots across the world. Some analysts are predicting that we may see a second wave of coronavirus, which could be more dangerous than the first one.

Source: Straight Times

4. World fuel demand accelerates in May’20 from April’20

Jun 25, 2020

Fuel demand is gradually recovering, as coronavirus lockdown measures ease around the globe, but a second wave of infections could swiftly undermine the trend. In Italy, oil products consumption in May was 3.64 million tonnes, up 36 per cent from April, but 28 per cent below levels a year earlier. Britain, Italy and France recorded year-on-year falls in gasoline demand in April of more than 60 per cent, the steepest decline in the world.

In the week ending June 21, gasoline and diesel withdrawals were down 29 per cent, and 21 per cent respectively from the same period last year, compared to 34 per cent, and 25 per cent lower in the previous week. There is a sharp rise in demand from April, when gasoline and diesel withdrawals were 79 per cent, and 57 per cent lower year-on-year. Jet fuel consumption has also shown signs of recovery. The number of daily flights around the globe rose to 52,000 on Wednesday, compared to a low point on April 12, when the number of flights fell to 24,000. In February, there were more than 100,000 daily flights.

Source: Reuters

5. China’s May Aluminium imports have more than doubled year-on-year

Jun 23, 2020

China’s May aluminium imports have more than doubled year-on-year, according to official data, indicating robust demand. Arrivals of unwrought aluminium imports and aluminium products stood at 119,145 tonnes last month, which was up 12.3% from April’20, and up 164.8% from May’19.

Source: Reuters

6. IMF predicts global output to shrink by 4.9% compared with a 3.0% contraction predicted in April

Jun 24, 2020

The International Monetary Fund (IMF) has said that the pandemic is causing broader and more profound damage to economic activity than initially thought. It goes on to say that it now expects global output to shrink by 4.9%, compared with a 3.0% contraction predicted in April. A recovery in 2021 also will be weaker, with global growth forecast at 5.4% for the year, compared to 5.8% in the April forecast. The IMF has said, however, that a significant new outbreak in 2021 could shrink the year's growth to a barely perceptible 0.5%.

Source: DNA

7. India levies anti-dumping duty on steel imports from China, South Korea & Vietnam

Jun 23, 2020

India has imposed an anti-dumping duty on flat-rolled steel products, which are plated or coated with alloys of aluminium and zinc originating in, or from China, Vietnam and South Korea, according to a government order. The duty will be in the range of $13.07-$173.10 per tonne for 5 years, according to the statement.

Source: New Indian Express

8. Indian sugar production set to rise to 32 million ton

Jun 23, 2020

The Indian Sugar Mills Association expects the country's sugar production to rise to 32.0 mln tn 2020-21 (Oct-Sep), without diversion to ethanol. The association may peg output at 30.5 mln tn after diversion of sugar through B-heavy molasses for ethanol production. The association pegged the country's output in 2019-20 at 27.2 mln tn. The Association may estimate Uttar Pradesh, the top producer's output, in 2020-21 at 12.3 mln tn, against 12.6 mln tn this season, while sugar production in Maharashtra, the second-largest producer, is seen at 10.1 mln tn, compared with 6.16 mln tn.

Source: Indian Express