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Improved economic activity to support demand for steel, cement: Fitch

Fitch Ratings forecast strong medium-term growth to support the demand for India’s steel, cement and chemicals sectors, with improved economic activity boosting power and petroleum product sales. The credit rating agency also said the adequate balance sheet buffers and strengthening demand should mitigate pricing and cost pressure at most rated Indian corporates. According to Fitch, the steel prices in the medium-term are likely to moderate due to the industry’s demand and supply dynamics, while cement prices will be pressured by added capacity from large manufacturers over the next few years. ...

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Canadian wheat plantings hit 9-year high as food prices spike

Canadian farmers planted the most wheat this spring in nine years, as bottlenecks in global supplies drove up prices of grain and food, a government report showed on Tuesday. Farmers seeded more spring wheat and canola than they intended in spring, according to Statistics Canada, but wet conditions raise doubts about how much land remains unplanted. The Russia-Ukraine war has stranded Ukrainian stocks of wheat and sunflower oil from global markets. Canada, a major wheat and canola exporter, is recovering from severe drought last year and expects to make up ...

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EU clearing houses resilient but gaps remain for commodities, watchdog says

Clearing houses in the European Union have shown they can withstand extreme shocks, including the impact of Russia’s invasion of Ukraine on commodities markets, the bloc’s securities watchdog said on Tuesday. Clearing houses are the essential plumbing of financial markets, ensuring that securities or derivatives trades are completed, even if one side of a transaction goes bust. A stress test of 15 clearing houses showed they can meet their basic requirement of being able to continue operating even after their two biggest members go bust, the European Securities and Markets ...

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Iron ore firms after deep losses as easing U.S.-China tensions support

Dalian iron ore futures rose on Tuesday with the market gaining for the first time in four sessions on expectations of lower U.S. tariffs on Chinese goods, although fears of a global recession capped gains. Asian shares eked out their best day in a week as positive economic data and hints of easing Sino-U.S. tensions offered some respite after recent sell-offs, though fears of sky-high inflation tempered the mood. The most-traded iron ore on the Dalian Commodity Exchange closed 1.4% higher at 742.5 yuan ($110.87) a tonne. On the Singapore ...

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Funds dump CBOT corn, soy in selloff but remain wary of short bets -Braun

Speculators downsized their bullish bets in Chicago grain and oilseed futures late last month amid a historically large drop in prices, and relatively supportive data from the U.S. government late last week, especially for soybeans, seemingly did nothing to stop the selling trend. CBOT December corn futures CZ2 plunged 6% in the week ended June 28, and November soybeans SX2 fell 3.2%, though both contracts traded down as much as 8% at different points in the period. Speculative selling was a bit heavier than expected. Money managers reduced their net ...

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Commodity Tracker: 5 charts to watch this week

1.Will Europe have enough gas this coming winter? What’s happening? The EU continues to build its gas storage stocks ahead of winter, though the rate of filling has slowed after Russia cut supplies via the Nord Stream pipeline to just 40% of capacity in mid-June. European gas prices have remained at sustained highs on fears that Europe may struggle to restock enough gas to see it safely through the upcoming winter. What’s next? All eyes will be on the rate of restocking while the Nord Stream pipeline is closed for ...

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Malaysia end-June palm oil stocks hit 7-month high as exports drop

Malaysia’s palm oil inventories at end-June likely climbed to their highest levels in seven months, as exports plunged following top producer Indonesia’s return to the export market, a Reuters survey showed on Tuesday. Stockpiles in the world’s second-largest producer are forecast to rise 12.3% from the prior month to 1.71 million tonnes, according to the median estimate of eight traders and analysts polled by Reuters. Production is seen expanding 8.3% to 1.58 million tonnes, its highest level since December. Supply is set for a climb, but the rise in production ...

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Coal India’s production sets record increase of 29% yoy at 36 MT in Q1FY23

Coal India Limited (CIL) has ended April-June quarter FY’23 capping a historic high of 29% yoy output growth, compared to same quarter FY’22. According to the BSE release data, CIL produced 159.8 million tonnes (MTs) of coal as of Q1 end, which is 35.8 MTs more than the 124 MT output of April-June’22. All the coal companies of CIL have registered growth. At around 10:16 AM, Coal India was trading at Rs183.90 per share up by Rs1.8 or 0.99% from its previous closing of Rs182.10 per share on the BSE. ...

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Copper extends fall to 4th day on economic slowdown worries

Copper prices extended a decline on Tuesday to a 17-month low as a cocktail of factors from aggressive interest rates, a spike in COVID-19 cases in China, potential recession and rising inventories weighed on investor sentiment. Three-month copper on the London Metal Exchange dropped 1.5% to $7,888 a tonne, as of 0719 GMT, its lowest since February 2021 and down for a fourth straight session. The most-traded August copper contract in Shanghai ended daytime trading down 1.9% to 60,110 yuan ($8,975.66) a tonne by the midday trade. “There was a ...

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SMM Analysis: Ferrous Metals Market to Remain Stuck in Downward Spiral

Ferrous metals prices took a nosedive across the board at the opening of today’s daytime session. As of noon, iron ore futures closed at 5.5% at 722 yuan/mt, rebar futures closed down 3.11% at 4,181 yuan/mt, while HRC closed down 3.4% at 4,202 yuan/mt. Ferrous metals market saw a brief rally last week, but fell again at the beginning of this week. Covid-19 infections in Anhui, Jiangsu and other places of China increased over this past weekend. A major property developer defaulted, weighing on market sentiment. In terms of fundamentals, ...

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Palm oil drops for third day on concern of larger Indonesian exports

Malaysian palm oil futures fell on Tuesday for a third straight session on concerns that Indonesia’s plan to increase export quota would hurt demand. The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange fell 1.13% to 4,301 ringgit ($973.96) per tonne during early trade. It extended a 7.6% loses posted on Monday. FUNDAMENTALS * Indonesia proposed raising palm oil export quotas and is considering increasing mandatory levels of biodiesel in fuel mixes to prop prices for farmers at a time when domestic palm oil ...

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Copper TC/RCs face further pressure in Q3 from tight clean concentrate supply, higher demand

This report is part of the S&P Global Commodity Insights’ Metals Trade Review series, where we dig through datasets and digest some of the key trends in iron ore, metallurgical coal, copper, alumina, and steel and scrap. We also explore what the next few months could bring, from supply and demand shifts, to new arbitrages, and to quality spread fluctuations. Asian demand for copper concentrates will likely be supported in the third quarter by healthy margins and an increase in smelter production capacity in China, while clean copper concentrate output ...

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Stainless Steel Futures Record Seven-Month Low, Will Expanding Production Cuts Support the Prices?

The most-traded stainless steel futures contract consolidated after a steep fall on June 24 with downward potentials. The contract dropped again after opening today, and fell to a low of 16,290 yuan/mt since December 22, 2021, and recorded a loss of 1.03% as of 14:08 Beijing time. In the spot market, the average price of spot 304/2B coil (burr edge, in Wuxi) was flat from last Friday at 17,500 yuan/mt. Looking back at the beginning of last week, the spot prices of 300-series stainless steel dropped significantly below 18,000 yuan/mt ...

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Global copper and nickel smelting slips in June, satellite data shows

Global copper smelting activity declined in June, hit by a stoppage in top producer Chile, data from satellite surveillance of metal processing plants showed on Monday. Chilean state-owned Codelco, the world’s largest copper producer, said on June 8 that it stopped its Ventanas smelter and refinery to carry out maintenance. The move in Chile along with weak activity in China and Europe weighed on global copper smelting, according to a joint statement from commodities broker Marex and SAVANT, the satellite analytics service Marex launched with Earth-i in 2019. The data ...

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China policy key for iron ore outlook

China’s covid lockdowns and recessionary risks hit iron ore Iron ore prices have fallen significantly from their year-to-date high of US$171/t seen back in March to as low as $108/t recently. China’s attempts to squash outbreaks of Covid-19 have seen fairly tough restrictions, which have not been supportive for demand. In addition, there are growing concerns over the macro-outlook. Soaring inflation is seeing central banks, particularly the US Federal Reserve having to take a more aggressive approach to monetary tightening. The concern is that the Fed will struggle to rein ...

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