Commodities

12

Westpac abandons cursed Adani

Via SBS: Westpac appears to have ruled out funding the controversial Adani mine by limiting lending to basins that are already producing thermal coal. Australia’s oldest bank on Friday published a climate change action plan in which it said it would limit thermal coal project lending to producing basins where the coal quality is highest

2

Samarco to return this year

BHP and RIO were both thumped last night in London -5% and -3% respectively despite rising Chinese futures markets for iron ore. The culprit was Vale: Shares in Vale slumped the most in two weeks, as executives signalled lacklustre trends for iron ore prices this year and investors reacted to a first-quarter profit miss with disappointment.

1

Import, export prices signal another big terms-of-trade rise

By Leith van Onselen The Australian Bureau of Statistics (ABS) has released export and import prices for the March quarter, which portends another much-needed increase in Australia’s terms-of-trade when the national accounts are released in early June. According to the ABS, export prices surged by 9.4% over the March quarter and were up by 29.1%

1

Daily iron ore price update (Atlas ironic)

Iron ore price charts for April 26, 2017:    Spot up. Futures down overnight. News flow is whacky:   China’s steel futures climbed to their highest in 2-1/2 weeks on Wednesday amid unconfirmed market talk of production curbs in cities surrounding Beijing ahead of the New Silk Road summit in May. China typically orders industrial plants

30

Bear’s lick lips at ASX discounts nuthin’

Iron ore and coking coal futures have held Friday’s gains so far: Which has BHP and RIO  up a little, though FMG and WHC are down: Given RIO has barely corrected since the crash began, let us ask, what is the difference between it and FMG? Given FMG’s great deleveraging, and RIO’s reliance upon iron

3

Chinese steel entering “zugzwang” calamity

Via Bloomberg: “We’re going from one world to another,” Peter Marcus, founder and managing partner of U.S. consultancy World Steel Dynamics, said in an interview in Shanghai. “We’re going to have mercantilism that’s going to promote domestic industries. The U.S. is going to win, and China is going to lose.” Prices in China could return

2

Iron ore opens, crashes

While global markets party on the rise of Emmanuel Macron in France, Dalian has opened and immediately shed the good spirits as iron ore and coking coal futures tank: Big Iron is dutifully down: Big Oil is up despite the oil pounding, fishing for a low: Big Gold is mixed: Big Debt is enjoying the

0

Macquarie’s Chinese steel sentiment survey crashes

From Macquarie: Most recent survey result gives the short signal The most recent reading of the steel survey released by Macq’s commodities team shows a sharp deterioration in both sentiment and orders – sentiment dropped to 38 from 80 just two months ago, and the order index, while higher than sentiment, is below 50 which

22

Vive Le Pen!

The below charts do not pick up any movement from this morning’s French election results. The US dollar was firm: Commodity currencies too: And gold: Brent was whacked: Base metals were soft: Big miners mixed: EM stocks firm: High yield too: US bonds sold: European spreads tumbled: Stocks were muted: Friday’s big news was that

7

Garnaut backs gas export curbs

The gas debate got a good boost over the weekend when the Godfather of Australian neo-liberlaims, Professor Ross Garnaut backed gas export curbs, via the AFR: ZEN Energy chairman Professor Ross Garnaut says the solution to Australia’s gas crisis which threatens to do “unconscionable” damage to the manufacturing sector is for all three LNG projects

4

Disgraceful Santos under-invests as it gouges

The company at the heart of national energy crisis, Santos, is taking the piss. Via Credit Suisse: Solid quarter operationally Santos delivered a solid operational performance in 1Q17, with production of 14.8mmboe and sales of 18.6mmboe. Net debt was down US$380m, to US$3.1bn, although heavily helped by asset sales and the SPP. All guidance for

1

Daily iron ore price update (psychiatric help)

Iron ore price charts for April 19, 2017:    Spot rebounded. Paper and coking coal futures too. Steel not so much and that’s your clue to the future. Fundies are excited: “At these prices, we think the miners are looking demonstrably cheap,” said Garth Rossler, chief investment officer at Maple-Brown Abbott, who has been topping

2

Big Iron dead cat rides!

Dalian iron ore and coking coal futures have recovered a little today: As has Big Iron after being flogged yesterday afternoon: But the chart damage is done. Indeed, BHP looks like it’s about to join RIO and FMG in the broken head and shoulders top club: We’re clearly already in oversold territory but I do