Significant volatility in metals markets will continue until we get to a “new normal” following the COVID-19 markets crisis and this will take time worldwide, despite encouraging progress in China, Christopher LaFemina, managing director for global metals and mining equity research at investment bank Jefferies LLC, said in an interview with S&P Global Platts. Some markets in China are now seeing “something more like a V-shape recovery rather than the dreaded L or U shape recovery,” LaFemina told Platts reporters in an interview this week, noting that China’s April industrial ...

Argentinian soybean trade could remain affected for months on river dryness, before significant amount of rain hit the region in the last quarter of 2020, market sources said. Due to prolonged dryness since January in the southern Brazil and northern Argentina, water level of all the major rivers, including Parana river went down significantly. As a result, commodities transportation in Argentina is severely affected as the Parana river carries almost 90% of country’s commodities through the river. Argentina is world’s third largest exporter of raw beans and top supplier of ...

Germany’s industries are starting to reopen business as normal. As steel buyers return to work, they are revising their purchase quantities, for this year, by postponing and cancelling selected orders. The steelmakers have excess stocks as many customers are not taking delivery of material. Service centres built up inventory of strip mill products, at the start of the year, most of which is yet to be sold. The automotive sector has been badly hit by the virus. The general industry is faring better, as is construction. Production to fall 32% ...

A coal market only just rebounding from the lowest price in four years might now need to grapple with the prospect of China renewing its restrictions on Australian supplies. Two influential coal industry publications within China have raised the specter of the country tightening imports from Australia, which comes along with recent tensions between the two nations over the roots of the global pandemic. Chinese officials are already considering targeting the nation’s exports including wine, dairy and seafood, according to people familiar with the matter, after Australia raised Beijing’s ire ...

At close to 10% of global emissions, the steel industry is under pressure to clean up. Increasing carbon costs and stringent environmental investment criteria have spurred a race to develop a zero-carbon steelmaking process. New technologies are advancing slowly, but with enormous implications for costs and raw materials. So, what does the path to green steel look like – and what does it mean for metallurgical coal and iron ore? A panel of Wood Mackenzie experts discussed this topic in a recent webinar. If you missed it, fill in the ...

World crude steel production for the 64 countries reporting to the World Steel Association (worldsteel) was 137.1 million tonnes (Mt) in April 2020, a 13.0% decrease compared to April 2019. Due to the ongoing difficulties presented by the COVID-19 pandemic, many of this month’s figures are estimates that may be revised with next month’s production update. China produced 85.0 Mt of crude steel in April 2020, an increase of 0.2% compared to April 2019. India produced 3.1 Mt of crude steel production in April 2020, down 65.2% on April 2019. ...

The Australian government and our major iron ore producers are desperate to characterise China’s decision to change its iron ore customs procedures as, at worst, meaningless and, at best, a positive for streamlining the trade. Neither the government nor BHP, Rio Tinto and Fortescue want to join the dots connecting the increasingly toxic diplomatic relations between the two countries and the iron ore trading relationship. However, it certainly sent a shiver through the prices of all three iron ore heavyweights. But the Global Times, a mouthpiece of the Chinese Communist ...

When China is in trouble, markets directly related to it tend to go up. Why? Because as a remedy China will tend introduce a stimulus package to boost the national economy, meaning related markets find buying support. When Covid–19 drove most commodities lower in the first 10 weeks of 2020, China took firm and decisive action to stop the spread of the disease, was the first to enter lockdown and the first to leave. World markets suffered, commodities and stocks alike, however as with many markets related to China, copper ...

China has laid out plans to issue Yuan 3.75 trillion ($526.8 billion) of new local government special bonds this year, up from Yuan 2.15 trillion in 2019, which will boost infrastructure construction and benefit diesel as well as steel consumption. The announcement came during Premier Li Keqiang’s address to the National People’s Congress on May 22, when he said there would be no GDP target for China in 2020 due to uncertainty caused by the coronavirus outbreak. Li said the emphasis would be on maintaining employment levels and maintaining living ...

The nation’s largest steelmaker, China Steel Corp, yesterday said that it would raise prices by 1.87 percent on a monthly basis for deliveries in July, reflecting recovering market sentiment. After cutting prices for two consecutive months due to floundering global markets amid the COVID-19 pandemic, China Steel said that it would increase prices to match the international industry, citing price increases by US and Chinese steelmakers. The company is to increase prices for hot-rolled steel plates and hot-rolled steel coils, as well as hot-rolled and cold-rolled steel pipes, by NT$450 ...

Gunvor Group is offering a 20bp higher margin on its latest Asia-targeted syndicated loan, in the first test of new pricing levels for the commodities sector since the coronavirus outbreak. The Swiss trader’s South-East Asia unit, Gunvor Singapore, has launched a US$500m one-year refinancing with top-level all-in pricing of 190bp based on an interest margin of 115bp over Libor. Those price points are 20bp and 15bp richer, respectively, than the margins on a US$455m one-year deal the borrower signed in June 2019. Gunvor’s 2019 financing attracted 22 lenders, including six ...

Five years after the government, in laying down its climate-change targets, committed to have mandatory coal washing, the Ministry of Environment, Forests and Climate Change (MoEFCC) has done away with it. In a gazette notification on Thursday, the ministry amended the Environment Protection Act to drop mandatorily washing coal for supply to thermal power plants. “Use of coal by Thermal Power Plants, without stipulations as regards ash content or distance shall be permitted,” said the gazette notification. Business Standard has reviewed the gazette notification. In 2015, as part of its ...

Anglo American is still exploring a sale of its thermal coal assets in South Africa as an alternative to spinning off and listing the business, three sources familiar with the matter told Reuters. Mining companies are under pressure to stop mining coal, the most polluting fossil fuel, from investors and governments keen to switch to cleaner fuels. London-listed Anglo said earlier this month that it would spin off its last remaining coal assets in South Africa and list them in Johannesburg. Sources say an outright sale of Anglo American’s coal ...

U.S. wheat futures fell after three straight days of gains on Friday as a firmer dollar disadvantaged the crop in the export market and a forecast for rain promised much-needed relief to dry soils in the U.S. Plains, traders said. Soybean markets also sagged on concerns about export demand, with sales to China in focus after Beijing announced new national security legislation for Hong Kong after last year’s pro-democracy unrest. U.S. President Donald Trump warned that Washington would react “very strongly” against attempts to further restrict the former British colony. ...

JSW Steel, the country’s second largest steelmaker, cut its FY21 production guideline marginally from the previous fiscal and estimates that capacity utilisation at its plants would remain at around 89% for the full year. JSW Steel has slashed its production guidance to 15 million tonnes (mt) of saleable steel and 16 mt of crude steel for FY21, down from FY20 actuals of 15.08 mt and 16.06 mt respectively. The company said that workforce remobilization will be a key challenge for core sectors of the economy after the national lockdown is ...