Morning Bites
⛏Russian Platinum has postponed the launch of its Chernogorskoye pit, amid disrupted equipment supply. According to Interfax, citing the company’s owner, Musa Bazhaev, the commissioning is now expected in 2025, vs. the initial plan (2024). The project's estimated capacity is 450koz of Pd and 170koz of Pt (~7% and 3% of global 2025F supply, respectively). In our view, the rescheduling might have some negative effect on PGM market balance in 2024. However, we do not anticipate a significant effect on sentiment: the project has been continuously postponed (since 2015), while demand from the auto sector is likely to remain sluggish in the near future, in our view
#PGMs
https://metals-wire.com:3000/sector/PGM
⛏Russian Platinum has postponed the launch of its Chernogorskoye pit, amid disrupted equipment supply. According to Interfax, citing the company’s owner, Musa Bazhaev, the commissioning is now expected in 2025, vs. the initial plan (2024). The project's estimated capacity is 450koz of Pd and 170koz of Pt (~7% and 3% of global 2025F supply, respectively). In our view, the rescheduling might have some negative effect on PGM market balance in 2024. However, we do not anticipate a significant effect on sentiment: the project has been continuously postponed (since 2015), while demand from the auto sector is likely to remain sluggish in the near future, in our view
#PGMs
https://metals-wire.com:3000/sector/PGM
Morning Bites
🇧🇴 CATL is set to develop its first lithium plants in Bolivia. Following a meeting with the company’s executives on Sunday, Bolivian President Luis Arce confirmed the commitment to build two mineral extraction plants with an expected joint capacity of 50kt of LCE per annum (~3% of global Li supply in 2025F), and the first shipment expected in 2Q25. Overall, CATL's plans for exposure into lithium mining likely reflects the growing consumer appetite for EVs globally
#lithium
https://metals-wire.com:3000/sector/Lithium
🇧🇴 CATL is set to develop its first lithium plants in Bolivia. Following a meeting with the company’s executives on Sunday, Bolivian President Luis Arce confirmed the commitment to build two mineral extraction plants with an expected joint capacity of 50kt of LCE per annum (~3% of global Li supply in 2025F), and the first shipment expected in 2Q25. Overall, CATL's plans for exposure into lithium mining likely reflects the growing consumer appetite for EVs globally
#lithium
https://metals-wire.com:3000/sector/Lithium
Morning Bites (part 1)
💎De Beers has reported sales of USD 450mn at its 5th cycle in 2023, 25% below the historical average and 32% lower YoY (vs. -21% YoY at the 4th cycle in 2023). Per De Beers CEO Al Cook, global macroeconomic challenges continued to affect buyer sentiment, with the sector remaining cautious heading into summer. Overall, the dynamics were in-line with recent news: De Beers has postponed its auctions (traditionally ~10% of its rough sales) during Cycles 5-6 amid weak demand from Indian cutters, in addition to the recently reduced prices. Hence, we reiterate our view that adverse economic conditions globally, and continuously soft US jewellery sales (50% of world demand), are likely to keep the diamond sector under pressure
#diamonds
https://metals-wire.com/sector/Diamonds
💎De Beers has reported sales of USD 450mn at its 5th cycle in 2023, 25% below the historical average and 32% lower YoY (vs. -21% YoY at the 4th cycle in 2023). Per De Beers CEO Al Cook, global macroeconomic challenges continued to affect buyer sentiment, with the sector remaining cautious heading into summer. Overall, the dynamics were in-line with recent news: De Beers has postponed its auctions (traditionally ~10% of its rough sales) during Cycles 5-6 amid weak demand from Indian cutters, in addition to the recently reduced prices. Hence, we reiterate our view that adverse economic conditions globally, and continuously soft US jewellery sales (50% of world demand), are likely to keep the diamond sector under pressure
#diamonds
https://metals-wire.com/sector/Diamonds
Morning Bites (part 2)
📈Global primary aluminium production rose 1% YoY in May, in line with the 1% YoY growth in April, the International Aluminium Institute (IAI) reports. Meanwhile, last month, China’s production remained flat YoY. The country’s output was also 13% higher than the pre-Covid (2019) level, while ex-China production rose 1% YoY (+2% vs. 2019). Despite the stable dynamics in recent months, we remind readers that China might relaunch its previously suspended capacities, as well as commission new smelters in FY23 (jointly representing ~6% of global Al supply). However, this outlook seems overly ambitious to us, while a Reuters source expects China to resume only up to 1.3mnt of its halted Al capacity (~2% of global 2022 output), when electricity curbs ease
#aluminium
https://metals-wire.com:3000/sector/Aluminium
📈Global primary aluminium production rose 1% YoY in May, in line with the 1% YoY growth in April, the International Aluminium Institute (IAI) reports. Meanwhile, last month, China’s production remained flat YoY. The country’s output was also 13% higher than the pre-Covid (2019) level, while ex-China production rose 1% YoY (+2% vs. 2019). Despite the stable dynamics in recent months, we remind readers that China might relaunch its previously suspended capacities, as well as commission new smelters in FY23 (jointly representing ~6% of global Al supply). However, this outlook seems overly ambitious to us, while a Reuters source expects China to resume only up to 1.3mnt of its halted Al capacity (~2% of global 2022 output), when electricity curbs ease
#aluminium
https://metals-wire.com:3000/sector/Aluminium
Morning Bites (part 3)
🇨🇳China has extended tax incentives for EV purchases until 2027, in line with recent indications. According to Bloomberg, the incentive is estimated to be worth CNY 520bn (USD 72bn). Specifically, new EVs below CNY 300k (USD 42k) are now excluded from the 10% sales tax until end-2025, while EVs priced under CNY 150k are to get further support until end-2027. Overall, the decision is likely to bolster demand for the battery metals basket further (e.g. lithium, nickel and cobalt), we believe
#cars #EV #nickel #lithium #cobalt
https://metals-wire.com:3000/news-reports
🇨🇳China has extended tax incentives for EV purchases until 2027, in line with recent indications. According to Bloomberg, the incentive is estimated to be worth CNY 520bn (USD 72bn). Specifically, new EVs below CNY 300k (USD 42k) are now excluded from the 10% sales tax until end-2025, while EVs priced under CNY 150k are to get further support until end-2027. Overall, the decision is likely to bolster demand for the battery metals basket further (e.g. lithium, nickel and cobalt), we believe
#cars #EV #nickel #lithium #cobalt
https://metals-wire.com:3000/news-reports
Morning Bites (part 1)
🚘EU + UK passenger car registrations rose 18% YoY in May, slightly accelerating from the 16% YoY growth in April. The results were in line with our estimates. Nevertheless, the figure was still 23% below the pre-COVID, 2019 level (-28% in April). Therefore, we reiterate our view that car sales in Europe are likely to remain stressed, at least in the near future, amid the adverse global macroeconomic conditions. Overall, this would keep weighing on PGM demand: the region accounted for ~20% and 32% of the world autocatalyst Pd and Pt consumption, respectively, in 2022E
#cars
https://metals-wire.com:3000/sector/PGM
🚘EU + UK passenger car registrations rose 18% YoY in May, slightly accelerating from the 16% YoY growth in April. The results were in line with our estimates. Nevertheless, the figure was still 23% below the pre-COVID, 2019 level (-28% in April). Therefore, we reiterate our view that car sales in Europe are likely to remain stressed, at least in the near future, amid the adverse global macroeconomic conditions. Overall, this would keep weighing on PGM demand: the region accounted for ~20% and 32% of the world autocatalyst Pd and Pt consumption, respectively, in 2022E
#cars
https://metals-wire.com:3000/sector/PGM
Morning Bites (part 2)
🔗Global crude steel output was down 5% YoY to 162mnt in May, accelerating from the 2% YoY decline in April, according to the World Steel Association. Meanwhile, China’s production dropped 7% YoY, reflecting CISA’s call to lower supply amid stressed steel prices, as well as the government's intention to cap national output (56% of the global steel supply in May) at its 2022 levels, in our view. Ex-China steel production shrank 2% YoY. Specifically, EU production dropped 11% YoY (similar to the -12% YoY in April), following the local energy crisis. US steel production declined 2% YoY. However, Russia’s steel output rose 9% YoY in May, after the 2% YoY increase in April
#steel
https://metals-wire.com:3000/sector/Steel
🔗Global crude steel output was down 5% YoY to 162mnt in May, accelerating from the 2% YoY decline in April, according to the World Steel Association. Meanwhile, China’s production dropped 7% YoY, reflecting CISA’s call to lower supply amid stressed steel prices, as well as the government's intention to cap national output (56% of the global steel supply in May) at its 2022 levels, in our view. Ex-China steel production shrank 2% YoY. Specifically, EU production dropped 11% YoY (similar to the -12% YoY in April), following the local energy crisis. US steel production declined 2% YoY. However, Russia’s steel output rose 9% YoY in May, after the 2% YoY increase in April
#steel
https://metals-wire.com:3000/sector/Steel
Morning Bites
⛏Newmont has again delayed its investment decision on Yanacocha Sulfides by at least two years, following a portfolio optimisation strategy, the company reports. The gold miner has not specified when it is to make the decision. The project was estimated to add ~500koz of gold per annum (0.5% of global Au supply in 2022) to the output of Peru’s Yanacocha mine (240koz last year). Meanwhile, we expect only a limited positive effect on market sentiment, as the funding decision for the Sulifdes project has already been postponed several times since 2021
#gold
https://metals-wire.com:3000/sector/Gold
⛏Newmont has again delayed its investment decision on Yanacocha Sulfides by at least two years, following a portfolio optimisation strategy, the company reports. The gold miner has not specified when it is to make the decision. The project was estimated to add ~500koz of gold per annum (0.5% of global Au supply in 2022) to the output of Peru’s Yanacocha mine (240koz last year). Meanwhile, we expect only a limited positive effect on market sentiment, as the funding decision for the Sulifdes project has already been postponed several times since 2021
#gold
https://metals-wire.com:3000/sector/Gold
👍1
Morning Bites
🇨🇱Floods are posing risks to Chilean copper mining. Heavy rains have led to road closures in some of the country's central and southern regions due to the risk of mudslides. Meanwhile, Codelco (~7% of the global Cu output) has already suspended some of its operations. We believe that these disruptions might, if they persist, support sentiment on the copper market, given Chile represents ~27% of the world mined supply
⛏Newmont has declared a force majeure on some shipments from Peñasquito, due to production interruptions, Reuters reports. The company had recently halted operations at the Mexico mine (0.5% of world gold production in 2022), following a labour strike. Hence, we reiterate our view that the strike, if not resolved soon, might further weigh on supply -- a favorable factor for gold price performance
#copper #gold
https://metals-wire.com:3000/news-reports
🇨🇱Floods are posing risks to Chilean copper mining. Heavy rains have led to road closures in some of the country's central and southern regions due to the risk of mudslides. Meanwhile, Codelco (~7% of the global Cu output) has already suspended some of its operations. We believe that these disruptions might, if they persist, support sentiment on the copper market, given Chile represents ~27% of the world mined supply
⛏Newmont has declared a force majeure on some shipments from Peñasquito, due to production interruptions, Reuters reports. The company had recently halted operations at the Mexico mine (0.5% of world gold production in 2022), following a labour strike. Hence, we reiterate our view that the strike, if not resolved soon, might further weigh on supply -- a favorable factor for gold price performance
#copper #gold
https://metals-wire.com:3000/news-reports
Morning Bites (part 1)
🔗CISA mills' daily crude steel production during mid-June was 2.26mnt, a 1.4% increase from the previous ten days, but almost flat YoY (+0.2%). Meanwhile, local steel inventories grew 2.6% over the same period (-21.0% YoY). The recent output declines have likely followed CISA’s call to cut production (in order to bolster local steel prices) and Beijing’s stated intention not to exceed the 2022 production levels. We reiterate our view that these factors, along with potentially new support measures for the property sector, are likely to have a positive effect on the sentiment on steel
#steel
https://metals-wire.com/sector/Steel
🔗CISA mills' daily crude steel production during mid-June was 2.26mnt, a 1.4% increase from the previous ten days, but almost flat YoY (+0.2%). Meanwhile, local steel inventories grew 2.6% over the same period (-21.0% YoY). The recent output declines have likely followed CISA’s call to cut production (in order to bolster local steel prices) and Beijing’s stated intention not to exceed the 2022 production levels. We reiterate our view that these factors, along with potentially new support measures for the property sector, are likely to have a positive effect on the sentiment on steel
#steel
https://metals-wire.com/sector/Steel
Morning Bites (part 2)
🏗China’s preliminary excavator sales dropped 23% YoY in June (domestic + export), vs. the 19% YoY decline in May, according to CME estimates. Meanwhile, domestic excavator sales are set to be 50% lower YoY, following the 46% YoY drop in May. Export sales are expected to grow a further 8% YoY (vs. +21% YoY in May). The continuous decline in excavator sales (since May 2021) indicates that there is still no recovery in construction activity. However, Beijing is working on support measures for the real estate segment. In addition, China’s strong liquidity inflows in early-2023, as well as the plans for massive infrastructure projects, might bolster the demand for steel and industrial metals (e.g. aluminium and copper) later in 2023
#steel
https://metals-wire.com/sector/Steel
🏗China’s preliminary excavator sales dropped 23% YoY in June (domestic + export), vs. the 19% YoY decline in May, according to CME estimates. Meanwhile, domestic excavator sales are set to be 50% lower YoY, following the 46% YoY drop in May. Export sales are expected to grow a further 8% YoY (vs. +21% YoY in May). The continuous decline in excavator sales (since May 2021) indicates that there is still no recovery in construction activity. However, Beijing is working on support measures for the real estate segment. In addition, China’s strong liquidity inflows in early-2023, as well as the plans for massive infrastructure projects, might bolster the demand for steel and industrial metals (e.g. aluminium and copper) later in 2023
#steel
https://metals-wire.com/sector/Steel
Morning Bites
☢Kazatomprom is negotiating an agreement to develop Block No. 3 of the Inkai deposit, the company reports. The deposit is exploited by a JV of Cameco (40%) and Kazatom (60%) with a production permit at Block No. 1, as well as a licence for exploration (with subsequent production) at Blocks 2-3. The development implies the construction of new facilities with an annual capacity of 4ktU (~8% of global supply in 2022). Although the timing has not been specified, the project might add stress to global uranium prices in the long term, we think. However, we also note that, historically, Kazatomprom has underutilised its production agreements by ~20%
#uranium
https://metals-wire.com/sector/Uranium
☢Kazatomprom is negotiating an agreement to develop Block No. 3 of the Inkai deposit, the company reports. The deposit is exploited by a JV of Cameco (40%) and Kazatom (60%) with a production permit at Block No. 1, as well as a licence for exploration (with subsequent production) at Blocks 2-3. The development implies the construction of new facilities with an annual capacity of 4ktU (~8% of global supply in 2022). Although the timing has not been specified, the project might add stress to global uranium prices in the long term, we think. However, we also note that, historically, Kazatomprom has underutilised its production agreements by ~20%
#uranium
https://metals-wire.com/sector/Uranium
👍3
Morning Bites (part 1)
🔗China’s aluminium products output rose 1% YoY to 5.43mnt in May, vs. +4% YoY in April. Overall, monthly production has shown solid dynamics for 11 consecutive months (ex. December 2022, with -4% YoY). This could be a favourable factor for Al prices, as China accounted for ~58% of world primary Al demand in 2022. However, the positive effect might be offset by a potential production recovery, once the dry season is over and local power shortages are resolved
📈Chinese output of copper products was up 11% YoY in May to 2.00mt, in line with the April dynamics. The figure was likely supported by a 30% YoY jump in the output of domestic power generation equipment (vs. +56% YoY in April). In our view, the growing Cu demand from China (~55% of global consumption) could well have a positive effect on the red metal's price, especially amid record low copper stocks globally
#aluminium #copper
https://metals-wire.com:3000/news-reports
🔗China’s aluminium products output rose 1% YoY to 5.43mnt in May, vs. +4% YoY in April. Overall, monthly production has shown solid dynamics for 11 consecutive months (ex. December 2022, with -4% YoY). This could be a favourable factor for Al prices, as China accounted for ~58% of world primary Al demand in 2022. However, the positive effect might be offset by a potential production recovery, once the dry season is over and local power shortages are resolved
📈Chinese output of copper products was up 11% YoY in May to 2.00mt, in line with the April dynamics. The figure was likely supported by a 30% YoY jump in the output of domestic power generation equipment (vs. +56% YoY in April). In our view, the growing Cu demand from China (~55% of global consumption) could well have a positive effect on the red metal's price, especially amid record low copper stocks globally
#aluminium #copper
https://metals-wire.com:3000/news-reports
Morning Bites (part 2)
📈Russia’s gold output jumped 17.4% YoY in May, accelerating from the 10.5% YoY growth in April, according to Rosstat data. The recent positive YoY dynamics most likely reflect the low base effect from 2022. Hence, we maintain our positive view on the precious metal, amid strong physical gold demand, rising cash costs of gold miners, as well as unfavorable macroeconomic conditions globally. We note that Russia accounts for ~9% of the world's mined gold output
#gold
https://metals-wire.com/sector/Gold
📈Russia’s gold output jumped 17.4% YoY in May, accelerating from the 10.5% YoY growth in April, according to Rosstat data. The recent positive YoY dynamics most likely reflect the low base effect from 2022. Hence, we maintain our positive view on the precious metal, amid strong physical gold demand, rising cash costs of gold miners, as well as unfavorable macroeconomic conditions globally. We note that Russia accounts for ~9% of the world's mined gold output
#gold
https://metals-wire.com/sector/Gold
Morning Bites
💎The global luxury market is set to grow 5-12% YoY in 2023, following the record EUR 345bn in 2022, Bain reports. The upward trend is seen being bolstered by demand recovering in China after the COVID restrictions were lifted, as well as the sustained growth in consumer appetite in the EU/US. Meanwhile, Bain forecasts that the market is likely to reach EUR 530-570bn by 2030 (>2x growth vs. 2020). Despite the overall solid luxury market, we keep our cautious outlook on the diamond segment, which is still heavily stressed by the adverse macroeconomic conditions globally and the continuous downturn in US sales (~50% of world gem-set jewellery trade)
#diamonds
https://metals-wire.com/sector/Diamonds
💎The global luxury market is set to grow 5-12% YoY in 2023, following the record EUR 345bn in 2022, Bain reports. The upward trend is seen being bolstered by demand recovering in China after the COVID restrictions were lifted, as well as the sustained growth in consumer appetite in the EU/US. Meanwhile, Bain forecasts that the market is likely to reach EUR 530-570bn by 2030 (>2x growth vs. 2020). Despite the overall solid luxury market, we keep our cautious outlook on the diamond segment, which is still heavily stressed by the adverse macroeconomic conditions globally and the continuous downturn in US sales (~50% of world gem-set jewellery trade)
#diamonds
https://metals-wire.com/sector/Diamonds
Morning Bites (part 1)
🔗Chinese steelmakers are facing soft demand, with looming doubts over 2H23, Bloomberg reports. The mills in China, which accounted for ~56% of global steel supply in May, are under pressure as the economic recovery has stalled: according to the CISA, almost half of the major mills were loss-making in 5mo23 due to the unfavourable price environment. Although the recovery is slower than expected, we note that China’s government is discussing new measures to support the real estate segment, as well as infrastructure projects, and that this might boost the demand for industrial metals later in 2023
#steel
https://metals-wire.com/sector/Steel
🔗Chinese steelmakers are facing soft demand, with looming doubts over 2H23, Bloomberg reports. The mills in China, which accounted for ~56% of global steel supply in May, are under pressure as the economic recovery has stalled: according to the CISA, almost half of the major mills were loss-making in 5mo23 due to the unfavourable price environment. Although the recovery is slower than expected, we note that China’s government is discussing new measures to support the real estate segment, as well as infrastructure projects, and that this might boost the demand for industrial metals later in 2023
#steel
https://metals-wire.com/sector/Steel
Morning Bites (part 2)
🇨🇱Chile’s copper production was down 14% YoY in May, accelerating from the 1% YoY fall in April. Overall, its output was the lowest within the observable period of the last seven years, amid the drought and negative structural effects (e.g. grade depletion). Moreover, the recent floods are likely to weigh on Chilean supply in the coming months, amplifying the negative effect. In our view, were these factors to continue affecting mining in Chile (~27% of world mined Cu production), they might partially offset the positive effect from new projects globally (Kamoa, QB2, Udokan, etc) in 2023
#copper
https://metals-wire.com:3000/sector/Copper
🇨🇱Chile’s copper production was down 14% YoY in May, accelerating from the 1% YoY fall in April. Overall, its output was the lowest within the observable period of the last seven years, amid the drought and negative structural effects (e.g. grade depletion). Moreover, the recent floods are likely to weigh on Chilean supply in the coming months, amplifying the negative effect. In our view, were these factors to continue affecting mining in Chile (~27% of world mined Cu production), they might partially offset the positive effect from new projects globally (Kamoa, QB2, Udokan, etc) in 2023
#copper
https://metals-wire.com:3000/sector/Copper
Morning Bites (part 3)
💎De Beers and Botswana have reached a diamond deal after tense negotiations, IDEX reports. According to the new agreement, Botswana will receive a 30% share immediately, with a gradual increase to 50% over the next ten years. To recap, under the 2011 deal, De Beers received 90% of the rough diamonds produced, while in 2020, its share was reduced to 75%. On our numbers, De Beers accounted for ~28% of the world's supply in 2022, while Botswana accounts for ~70% of De Beers’ rough production. The signing of this agreement lifts the supply disruption risks that arose amid the uncertainty over the deal (the negotiations had been ongoing since 2018)
#diamonds
https://metals-wire.com/sector/Diamonds
💎De Beers and Botswana have reached a diamond deal after tense negotiations, IDEX reports. According to the new agreement, Botswana will receive a 30% share immediately, with a gradual increase to 50% over the next ten years. To recap, under the 2011 deal, De Beers received 90% of the rough diamonds produced, while in 2020, its share was reduced to 75%. On our numbers, De Beers accounted for ~28% of the world's supply in 2022, while Botswana accounts for ~70% of De Beers’ rough production. The signing of this agreement lifts the supply disruption risks that arose amid the uncertainty over the deal (the negotiations had been ongoing since 2018)
#diamonds
https://metals-wire.com/sector/Diamonds