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China’s copper appetite wanes just as US grows hungry

China’s copper import surge has peaked. The country sucked in a record 4.67 million tonnes of refined copper last year, making it the single most important physical driver of the pandemic recovery rally. This year, the import pulse has slowed, with volumes sliding by 10% over the first half and the monthly total dipping below 300,000 tonnes in both May and June. High prices and Beijing’s attempts to fade last year’s stimulus have taken some of the heat out of the Chinese market. Equally significant is the wave of scrap ...

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PetroChina’s anticipated oil product export quota squeeze raises inventory concerns

PetroChina’s oil product export quotas in the second batch allocations may fall to 2.8 million mt, a company source told S&P Global Platts on Aug. 2, raising fears that the state-run firm may struggle to cut inventories, while keeping run rates at relatively lower levels. The state-owned oil giant has been running out its quotas of 9.81 million mt allocated in the first batch, resulting in a sharp drop in July and August outflows. With the expected second round of allocation, PetroChina may get a total 12.61 million mt quotas ...

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‘Commodities to focus on Chinese economic outlook, virus situation’

Commodity prices at large ended the week higher driven primarily by a weaker US dollar. The US dollar index slumped to a 1-month low in reaction to Fed’s monetary policy decision. COMEX gold has jumped to a two-week high while crude oil has scaled above $73 per barrel and copper has tested mid-June highs. As expected, the Fed kept interest and bond purchases unchanged. The Fed also maintained an upbeat outlook and noted that they were moving towards the start of tapering of asset purchases. The US central bank, however, ...

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China wants to curb steel production. Some say it’s ‘virtually impossible’

China wants to lower its steel production this year, but that could prove difficult. In the first half of 2021, Chinese steel mills have churned out nearly 12% more crude steel compared to the same period in 2020, according to a Wood Mackenzie note. China produced a monthly record of 99.45 million tons of steel in May, though the number fell to 93.88 million tons in June, Reuters reported. The steel sector is one of the biggest polluters in China, producing around 10% to 20% of carbon emissions in the ...

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Funds play ‘wait and see’ on CBOT corn, soy ahead of U.S. yield data

Grain markets have recently been quieter than they have been for much of this year, but speculators are now looking ahead to the U.S. corn and soybean yield forecasts due on Aug. 12 from the Department of Agriculture. That report has delivered big surprises in the past, so unless there are demand developments or a major shift in the weather forecast, investors might be hesitant to make position adjustments ahead of time. In the week ended July 27, money managers increased their net long position in CBOT corn futures and ...

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New Capacity Roundup – August

Here is a rundown of the major steelmakers’ latest production and capacity investments announced this month. Europe ArcelorMittal plans to adapt its Sestao flat product facility, located near Bilbao, into what it calls “the world’s first full-scale zero carbon-emissions steel plant”, by 2025. To achieve this, the company has authorised the construction of a DRI plant at a nearby facility, in Gijón, which will produce up to 2.3 million tonnes of sponge iron, per year. Nearly half of this output will be used as feedstock for two EAFs operating at ...

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Corn falls on economic worries, U.S. crop report caps losses

U.S. corn futures fell on Tuesday amid a broad commodity sell-off on concerns over the global economy, though losses were limited by a widely watched report that showed the condition of U.S. crops was worse than expected. FUNDAMENTALS * The most active corn futures on the Chicago Board Of Trade Cv1 were down 1% to $5.54 a bushel by 0121 GMT, having gained 2.6% in the previous session when prices hit a July 27 high of $5.59-3/4 a bushel. * The most active soybean futures Sv1 were down 0.9% to ...

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MMi Daily Iron Ore Index Report August 03 2021

According to data tracked by SMM, 74 ships arrived at domestic main ports from July 25-31. Arrivals of cargoes are estimated to stand at 11.85

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Russia’s oil export down 8% in Jan-July to 129.1 mln tonnes, says report

Russia’s crude oil exports decreased by 8% in January-July 2021 year-on-year to 129.104 mln tonnes, the Central Dispatching Department of Fuel Energy Complex reported on Monday. Russia participates in the OPEC+ crude production cuts agreement, due to which supplies to other countries are declining as well. In July, crude oil exports rose by 8.4% to 18.69 mln tonnes. Exports of the Russian oil to non-CIS countries went down by 9.1% in seven months to 122.01 mln tonnes, and increased by 13.2% in July to 17.82 mln tonnes, while exports to ...

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Physical imports of LNG in Europe slashed in July as global market tightens

A severe tightening of the global LNG market resulted in a considerable drop in European imports during July, with seasonably low physical receipts falling by a further third both year on year and month on month. According to data from S&P Global Platts Analytics, import levels are very close to those seen in January when Asian spot LNG prices hit record highs, despite the Platts JKM benchmark currently holding a narrower premium over Europe. Across Europe’s liquid traded hubs with LNG regasification terminals, namely France, Spain, Italy, Belgium, the UK ...

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Iron ore miners are awash with cash, but see different futures: Russell

Major iron ore producers are awash in a sea of cash, and are likely to remain so despite a recent retreat in the price of the steel raw material. Where they diverge is what they think will be the next big drivers of profit. Rio Tinto RIO.AX, the world’s biggest iron ore miner, posted record first-half profits on July 28, with underlying earnings almost tripling to $12.17 billion from the same period a year earlier. The surging profits were largely built on the back of the rise in iron ore ...

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Commodity tracker: 5 charts to watch this week

Iraq’s oil production forecast tops this week’s charts to watch as the country’s standoff against international oil companies may put its capacity expansion plans at risk. Also worth following this week are falling iron ore prices, waning fuel-switching capacity in the US, rising gas prices in Europe and a firm North Sea crude demand. 1. Iraq’s oil capacity expansion plans at risk What’s happening? International oil companies are trying to flee Iraq’s unattractive oil assets. The standoff between IOCs and Iraq over the management of some of the country’s biggest ...

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Bleak crop prospects likely to keep spring wheat supplies tight, prices firm

The prevailing dry and hot weather conditions across top producing countries are limiting the production prospects for spring wheat, raising concerns of tightening global supplies for the high protein-content wheat. Canada, Russia and the US are the world’s top producers and exporters of spring wheat globally, and all three countries have been witnessing severe dryness and drought-like conditions. In Canada — the largest grower of spring wheat — extreme heat and drought conditions are having a devastating effect on wheat crops grown in the Prairies region, while the neighboring regions ...

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Palm rebounds on production concerns, sliding exports cap gains

Malaysian palm oil futures rebounded on Tuesday, helped by lingering concerns over tight production, but gains were capped by data that showed export shipments fell in July. The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange gained 65 ringgit, or 1.58%, to 4,185 ringgit ($991.24) a tonne by the midday break, after plunging 5.7% in the previous session. The contract is recovering from Monday’s sell-off on concerns over tightness in production, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari. “Until and unless production ...

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Base metals fall as Delta variant sparks recovery concerns

Industrial metals declined on Tuesday as a surge of the Delta coronavirus variant across the world raised doubts of a sustainable global economic recovery. Three-month copper on the London Metal Exchange CMCU3 fell 0.4% to $9,667 a tonne by 0250 GMT, aluminium CMAL3 was down 0.4% to $2,603.50 a tonne, nickel CMNI3 dropped 1% to $19,320 a tonne and zinc CMZN3 shed 1.4% to $3,007 a tonne. The most-traded September copper contract on the Shanghai Futures Exchange SCFcv1 fell 1% to 70,870 yuan ($10,961.09) a tonne, nickel SNIcv1 dropped 1.5% ...

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