Commodities

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SA seeks block on Santos bid

Quite rightly: US player Harbour Energy’s ambitions for an $11 billion takeover of Santos have run immediately into political hot water, as South Australian Treasurer Tom Koutsantonis signalled the state would seek to prevent the oil and gas producer falling into foreign hands. “The state government would be very concerned by any foreign takeover of Santos,”

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Daily iron ore price update (Indian flood?)

Iron ore price charts for November 16, 2017: Tianjin benchmark lifted 6o cents to $61.80. The rest is range trading. In news, India is considering breaking a dam, via Reuters: India is considering scrapping or reducing a 30 percent export tax on medium-grade iron ore after building up a stubbornly high surplus of the commodity,

7

Block the Santos takeover

Via the AFR: Big American oil is preparing to make a $11 billion all-cash takeover offer for Santos as the next step in play for regional and global relevance in rapidly reforming liquid natural gas markets. A consortium of powerful global energy investors, led by a former executive director of Royal Dutch Shell, Linda Cook,

7

Adani brawl intensifies

Via The Guardian: Profits of Adani Enterprises – the company in Adani Group’s complex structure that owns the proposed Carmichael coalmine – have collapsed almost 50% year-on-year, according to a half-yearly report released this week which does not mention the mine. The results further show the company is in financial distress, according to Tim Buckley from the Institute of

1

Daily iron ore price update (delayed reaction)

Iron ore charts for November 14, 2017: Tianjin benchmark rose 90 cents to $62.80. Paper was burned overnight. Steel is range trading. Yesterday’s China data clearly telegraphed the future of weakening demand. Real estate sales growth continues to fall at a good clip year to date: They are now falling year on year at  -6.4%.

4

Daily iron ore price update (Banana Man returns)

Iron ore price charts for November 8, 2017: Tianjin benchmark rose 20 cents to $62.50. Paper took off last night. Steel is flat. Reuters has texture: China’s iron ore imports fell nearly 23 percent in October from record levels the previous month, customs data showed on Wednesday, with steel mills in the world’s top producer

10

QLD Labor pretends to shaft Adani

Lordy, some sense: The Queensland government will veto Adani’s application for a $1bn commonwealth loan to build a rail line for its massive Carmichael mine, Annastacia Palaszczuk has said. Palaszczuk said the dramatic move, amid her campaign for re-election, came in response to what she believed was a federal Coalition plan to “smear” her and

4

What will the Saudi purge do to oil?

Via the FT: Oil traders have a new political risk factor to absorb from Saudi Arabia with the move by the powerful Crown Prince Mohammed bin Salman to detain some of the kingdom’s most prominent business people, officials and princes. Saudi Arabia is the world’s second-largest crude producer, the biggest crude exporter and has the

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Daily iron ore price update (meh)

Iron ore price charts for November 3, 2017: Tianjin spit listed 10 cents to $58.40. Paper rallied overnight but is stretching away from physical. Coking coal futures were firm. Steel too. Reuters has texture: Steel mills across China, particularly in the country’s biggest steel producing city of Tangshan, were expected to begin cutting production to

0

Fortescue’s troubles spread

Via Domainfax: Evans & Partners analyst Andrew Hines said life would get progressively tougher for Fortescue in coming years, as rising energy and currency costs combined with mine depletion and persistent pricing discounts. “Over the past four years Fortescue has deliberately lowered the average grade of its product by lowering the cut-off grade at its Cloudbreak operation

24

Adani stupidity mounts

Via Julien Vincent at Domainfax: But the government’s efforts to support Adani stretch well beyond the financial. We learned last week the former deputy prime minister Barnaby Joyce and Trade Minister Steven Ciobo had been providing assurances to the Chinese government over Adani receiving its approvals. A Freedom of Information request by The Australia Institute has turned

1

RBA commodity price index falls again in October

By Leith van Onselen The RBA has released its commodity price index for October, which registered a 2.4% fall SDR (currency weighted) terms – the key determinant of the terms-of-trade – as well as a 0.9% decrease in Australian dollar terms: Preliminary estimates for October indicate that the index declined by 2.4 per cent (on