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Rising steel prices could add heft to Tata Steel’s profits, but they must sustain

Things are falling in place for Tata Steel. As both production normalises and demand continues to upswing, the steel sector is now on a better footing than before. The street expects Tata Steel Ltd to post better operating profitability in Q3. The scrip is trading close to its 52-week high with 38% gains till date in November. An improvement in its troubled European operations is also on the cards. Steel spreads could improve to record levels in Europe, thanks to lower inventory levels and rising steel prices. Tata Steel’s European ...

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China grain demand reflects structural change: US Grains Council

The explosive growth seen in China’s grain demand this year has not been caused by just a temporary supply shortage but signals a structural change in domestic consumption levels, US Grains Council (USGC) China director Bryan Lohmar said in an interview with S&P Global Platts. China’s corn imports hit 7.8 million mt between January and October, a sharp 1,151% increase from last year, latest data from China customs showed. China’s import volumes are already above the set annual tariff rate quota level of 7.2 million mt, breaching the quota for ...

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Venezuela resumes direct oil shipments to China despite U.S. sanctions

Venezuela has resumed direct shipments of oil to China after U.S. sanctions sent the trade underground for more than a year, according to Refinitiv Eikon vessel-tracking data and internal documents from state company Petroleos de Venezuela (PDVSA). Chinese state companies China National Petroleum Corp (CNPC) and PetroChina – long among PDVSA’s top customers – stopped loading crude and fuel at Venezuelan ports in August 2019 after Washington extended its sanctions on PDVSA to include any companies trading with the Venezuelan state firm. reut.rs/36ZyATv imposition of the sanctions was part of ...

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India cuts import duty on crude palm oil by 10%

The Indian Ministry of Finance has cut the import duty on crude palm oil by 10% to 27.5%, according to a document sent to S&P Global Platts. The duty cut will be effective from Nov. 27. Mumbai-based Sunvin Group’s founder and CEO, Sandeep Bajoria, said that “the government was concerned with the high prices locally, and called for the duty reduction to cool the market. The import margins are currently negative at $25-$30/mt, and this move will see the disparity vanish.” “I expect that Indian palm oil imports will increase ...

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Norway gas exports could be hit by strike escalation from Friday

The planned escalation of a strike by Norwegian security guards could begin to shut the Nyhamna gas processing plant and two large gas fields from Friday, which would reduce Norway’s exports to Europe by a quarter, system operator Gassco said. Some 2,300 security guards organised by the Norwegian Union of General Workers (NAF) are on strike nationwide over pay, and an additional 85 will go on strike from Saturday unless the dispute is resolved first. A gradual shutdown would have to start on Friday to prepare for the strike the ...

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Copper: China October trade snapshot

Imports of copper concentrate in October fell by 21% MoM to 1.69mln tonnes, and total imports in the first 10 months have registered a small gain year-on-year. According to SMM reports, the reduced imports last month were chiefly due to rejected shipments due to high fluorine content concentrate from Indonesia. Year-to-date, Chile remains the largest copper concentrate supplier to China, accounting for 35%, with exports to China growing by 3% YoY to 6.4mln tonnes. However, imports from Peru, the second-largest supplier to China, have decreased by 19% to almost 4mln ...

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Taiwan’s Formosa to skip term gasoline contract in Q1 on low production

Taiwan’s Formosa Petrochemical will not have any gasoline sales contract on a term basis in the first quarter of 2021, as the producer is unlikely to have much gasoline for export during that period, a company source said Nov. 25. “This year, we had the RDS [residue desulfurization unit] outage. Before the RDS restarts next year, our gasoline export volume will be low,” the source said. Formosa expects to restart its fire-hit No. 2 RDS unit in April 2021 at the earliest, after the 80,000 b/d unit was shut on ...

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Copper touches highs not seen since Jan 2014

The London Metal Exchange three-month copper price continued to trade comfortably above $7,000/mt as the bulls continued to circle the metal. Since the pandemic lows seen back in March, when copper went down to around $4,370/mt, the industrial metal has been powering forward. Early on in the session Nov. 25 the metal hit $7,360/mt — levels last seen in Jan. 2014 — and then gave back some of those gains. A number of factors have helped copper gains, including supply-side issues, a weaker dollar, record-breaking US stock markets and demand ...

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Renewables in most of Asia Pacific to be cheaper than coal power by 2030

Wood Mackenzie’s latest report shows most markets in Asia Pacific can expect to see cheaper levelised cost of electricity (LCOE) for renewables compared to coal by 2030. Across the region, new investments in renewables power are expected to be 23% lower cost than coal power on average by the end of the decade. Currently, renewables power costs about 16% more on average compared to coal power but has been at a discount to gas-fired power since 2019. Wood Mackenzie senior analyst Rishab Shrestha said: “Today, India and Australia are the ...

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Fitch Ratings 2021 Outlook: Indonesian Coal Improving

Fitch Ratings expects Indonesian coal selling prices and volumes to improve in 2021, which should support a modest improvement in credit metrics. Fitch assumes a recovery in the Indonesian 4,200kcal coal prices to USD32.5/tonne in 2021 from USD27/tonne in 2020. The improvement in prices started to materialise in late 2020 as Fitch expected. Fitch also expects aggregate volumes of the Fitch-rated miners to increase by about 6% in 2021, compared with the drop of 3% in 2020. Furthermore, most Indonesian coal miners have curtailed mining costs in 2020 due to ...

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Permian Producers in Focus as Crude Price Picks Up

Promising results from three potential coronavirus vaccines have raised hopes of an economic rebound in 2021, leading oil price to the highest mark since Mar 6. With stock prices of crude exploring and producing companies rallying, it is probably time for the energy sector to bounce back from the pandemic lows. Oil Price Recovers Partially Although the price of West Texas Intermediate (WTI) crude, approaching $46 per barrel, is significantly below the 2020-beginning price of more than $60 mark, the commodity price has improved considerably in the past few months. ...

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US coal exports to 7 of top 10 destinations declined in Q3’20

Seven of the top 10 destinations for U.S. coal exports reduced shipments in the third quarter and total exports dragged while only mildly improving quarter over quarter as the global economy rebounded from the initial shock of the coronavirus pandemic. U.S. coal exports totaled 13.9 million tonnes in the third quarter, down 30.7% from 20.1 million tonnes shipped in the prior-year period, according to data compiled by S&P Global Market Intelligence. Deliveries rose by 3.14% compared to the previous quarter, which could indicate recovering global coal and steel demand among ...

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China cuts imports of Australian copper concentrate by more than half in October

China’s imports of copper concentrate from Australia in October fell by more than half from the previous month, customs data showed, adding weight to speculation Beijing has placed an unofficial ban on shipments. Media reports early this month said the Chinese government had instructed companies not to purchase copper ore and concentrate – as well as at least six other commodities ranging from coal to lobster – from Australia from Nov. 6 because of souring relations between the two countries. Even in October, copper concentrate shipments from Australia were down ...

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Oil demand slump hits Saudi exports in September

Saudi Arabia’s exports fell by nearly a third in September from a year ago, driven largely by a slump in oil demand. Total revenue from exports was SR53.3 billion ($14.2 billion) compared with SR77.3 billion for the same month last year, according to a statement from the General Authority for Statistics. Oil exports slumped 38.7 percent to about SR35 billion, it added. Non-oil exports declined 9.3 percent compared to a year ago to about SR18 billion, after having risen in August while plastics and rubber products dropped 13.4 percent, weighing ...

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MMi Daily Iron Ore Index Report November 27 2020

As of November 27, iron ore inventories across 35 ports tracked by SMM totaled 119.08 million mt, a decrease of 1.16 million mt from the

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