Commodities

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Vale iron ore rips higher

Via Vale today: Vale´s Production Report for the third quarter of 2020 (3Q20) was announced on Monday, October 19th. The company is evolving with its stabilization plan and delivered a strong iron ore production in 3Q20. Nickel and Copper businesses managed to recover productivity for a solid start in 4Q20, after normalizing routine maintenance in

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China keeps credit pedal to the metal

China’s PBOC released new yuan loans for September last night it remains credit pedal to the metal with total social financing at 3.48tr yuan of which 1.9tr was bank lending: The non-bank share has rebound strongly but that is distorted by the inclusion of local government bonds these days: The three month moving average of

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Stop worrying about China coal bans

Who cares, at the AFR: BHP’s Chinese customers have asked the miner for relief from coal purchase contracts in the wake of Beijing’s move to crack down on foreign coal imports. The requests for deferral come amid uncertainty over whether China is seeking to limit purchases of foreign coal of all origins, or whether Australian

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Daily iron ore price update (is that a shock I see before me?)

Iron ore prices for October 14, 2020: Spot down. Paper down more overnight. We’re going lower here. Indeed, I’m starting to wonder if there isn’t a little shock unfolding. Brazil is recovering steadily: More importantly, property sales in China have tanked: A few cities have tightened property curbs for investors in recent months but that

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LNG imports are essential

Let me preface this argument by saying that LNG imports are calamitously stupid given all we really need is fixed price gas reservation for our own gas export cartel. That said, without such policy sense, LNG imports are the only sane alternative path. Via the AFR: Prices for gas consumed in Victoria will be on

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China seeds Australian economic civil war

Via Argus: China has told some of its state-owned steelmakers and power plants to stop importing Australian coals with immediate effect, injecting more uncertainty into its spot markets that had anticipated eased restrictions into 2021. A major northeast China state-owned steel producer received verbal notice of the ban this afternoon, but with few details available.

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Australia’s trade surplus dives

The Australian Bureau of Statistics (ABS) released trade data for the month of August, which registered a sharp fall in Australia’s trade surplus to $2,643 million amid falling exports and rising imports: Key points as follows: The seasonally adjusted balance on goods and services surplus decreased $2,009m to $2,643m in August. Exports of goods and

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Daily iron ore price update (bearish)

Iron ore prices for September 30, 2020: The whole complex launched on the Port Hedland virus scare. A big overreaction unless I’m missing something and the virus has already skipped the boat. Underneath that, the broader signals are still weakening. The Chinese steel PMI was downright poor with new orders a particular concern: With mill

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Gubmint: Commodity revenues to plunge on coal

Via the Office of the Chief Economist:   In the June 2020 Resources and Energy Quarterly (REQ) we pointed out that “unlike downturns in previous decades, this downturn was not due to the bursting of excesses built up in the financial system…or in equity markets…. It also differs from the 1970s recessions…which helped contribute to stagflation and

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Daily iron ore price update (All China all the time)

Iron ore prices for September 24, 2020: Spot up. Paper down. Empty apartment sales are still fine: World Steel released its latest: World crude steel production for the 64 countries reporting to the World Steel Association (worldsteel) was 156.2 million tonnes (Mt) in August 2020, a 0.6% increase compared to August 2019. Due to the ongoing difficulties presented by

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Empty Chair agrees to Morrison gas joke

Via The Fake Left: The draft reads: “Labor supports the responsible development of Australia’s gas reserves, subject to environmental approvals to ensure communities’ concerns are addressed through rigorous science-based processes, including gas from coal seams, shale and tight gas formations.” It says a future Labor government would ensure “gas development is environmentally sustainable, science-based and

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Morrison’s gas unplan a joke of truly spectacular proportions

I have absolutely no idea why manufacturing is on board with the new Morrison gas policy. All it wants is cheaper gas and power. Morrison will give it neither. Here it is: Gas will help re‑establish a strong economy as part of the Government’s JobMaker plan, making energy affordable for families and businesses and supporting

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Ludicrous Adani to ship coal at huge losses

Via the AFR comes a job well done: Adani Mining chief executive David Boshoff has a clear message for the environmental activists and naysayers who have spent the past decade rallying against the $2 billion Carmichael coal mine in Central Queensland – “it’s happening”. Standing on the edge of the first pit being dug at