Rio Tinto 1H23 results - EBITDA showed a slight miss
📝Rio Tinto's 1H23 revenues were slightly stronger than both consensus and our expectations (by 2% and 3%, respectively). Meanwhile, EBITDA came in below the forecasts (-3% vs. consensus and -5% vs. us), affected by higher costs in aluminium segment and a cost spike at Kennecott copper mine
⛏Rio has reiterated its FY23 guidance: iron ore shipments are to increase up to 4% YoY, while aluminium output is to grow 3-10% YoY. Iron ore FOB unit cash costs are set to be USD 21.00-22.50/wmt (vs. USD 21.20/wmt in 1H23 and USD 21.30/wmt in FY22)
💰Management has declared an interim dividend of USD 1.77/sh (~3.2% DY), in line with the company's practice
📌On our numbers, at spot, Rio's 2H23F EBITDA will be materially higher HoH, amid the increase in iron ore output and the improvement in costs in the aluminium segment, as energy costs have decreased: thermal coal spot price is >30% lower than the 1H23 average
#RIO #Iron_ore
https://metals-wire.com/company/RIO_LN/
📝Rio Tinto's 1H23 revenues were slightly stronger than both consensus and our expectations (by 2% and 3%, respectively). Meanwhile, EBITDA came in below the forecasts (-3% vs. consensus and -5% vs. us), affected by higher costs in aluminium segment and a cost spike at Kennecott copper mine
⛏Rio has reiterated its FY23 guidance: iron ore shipments are to increase up to 4% YoY, while aluminium output is to grow 3-10% YoY. Iron ore FOB unit cash costs are set to be USD 21.00-22.50/wmt (vs. USD 21.20/wmt in 1H23 and USD 21.30/wmt in FY22)
💰Management has declared an interim dividend of USD 1.77/sh (~3.2% DY), in line with the company's practice
📌On our numbers, at spot, Rio's 2H23F EBITDA will be materially higher HoH, amid the increase in iron ore output and the improvement in costs in the aluminium segment, as energy costs have decreased: thermal coal spot price is >30% lower than the 1H23 average
#RIO #Iron_ore
https://metals-wire.com/company/RIO_LN/
Morning Bites (part 1)
🔗CISA mills' daily crude steel production during mid-July was 2.25mnt, a 0.3% increase from the previous ten days, and growth of over 10% YoY. In the meantime, local steel inventories declined 1.5% over the same period (-17.7% YoY). Despite the 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, Chinese steel output in 5mo23 was still up a slight 1.3% YoY, according to the WSA (World Steel Association). To recap, China’s government has signalled more stimulus for the domestic economy. Although there are no details yet, the potential measures might add some support to China’s stressed property segment, which is the main positive trigger for steel prices
#steel
https://metals-wire.com/sector/Steel
🔗CISA mills' daily crude steel production during mid-July was 2.25mnt, a 0.3% increase from the previous ten days, and growth of over 10% YoY. In the meantime, local steel inventories declined 1.5% over the same period (-17.7% YoY). Despite the 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, Chinese steel output in 5mo23 was still up a slight 1.3% YoY, according to the WSA (World Steel Association). To recap, China’s government has signalled more stimulus for the domestic economy. Although there are no details yet, the potential measures might add some support to China’s stressed property segment, which is the main positive trigger for steel prices
#steel
https://metals-wire.com/sector/Steel
Morning Bites (part 2)
💎 India's gem and jewellery exports are set to drop 10-15% YoY in 2023, according to Vipul Shah, the chairman of GJEPC. In an interview, Mr Shah said that most of the concerns for the segment were related to the US (50% of world jewellery sales) and China (~15%), where demand is slowing. Meanwhile, rising interest rates and inflation also affect consumer confidence, the chairman added. Overall, during 1H23, exports dropped 21% YoY, while a 15% YoY loss in FY23 would mean an ~8% YoY decline in 2H23, on our numbers. To recap, India represents ~95% of world polished diamonds supply; thus, we reiterate our cautious view on the sector
#diamonds
https://metals-wire.com/sector/Diamonds
💎 India's gem and jewellery exports are set to drop 10-15% YoY in 2023, according to Vipul Shah, the chairman of GJEPC. In an interview, Mr Shah said that most of the concerns for the segment were related to the US (50% of world jewellery sales) and China (~15%), where demand is slowing. Meanwhile, rising interest rates and inflation also affect consumer confidence, the chairman added. Overall, during 1H23, exports dropped 21% YoY, while a 15% YoY loss in FY23 would mean an ~8% YoY decline in 2H23, on our numbers. To recap, India represents ~95% of world polished diamonds supply; thus, we reiterate our cautious view on the sector
#diamonds
https://metals-wire.com/sector/Diamonds
Morning Bites (part 3)
📈Russia’s gold output grew 9.5% YoY in June, decelerating from the 17.4% YoY jump in May, per Rosstat data. Despite the positive YoY dynamics seen recently, they were most likely a factor of the low base effect from 2022. Hence, we maintain our positive outlook on the yellow metal, amid continuously strong physical gold demand, the rising cash costs of gold miners, and the adverse macroeconomic conditions globally. Noteworthy, Russia accounts for ~9% of the world's mined gold output
#gold
https://metals-wire.com/sector/Gold
📈Russia’s gold output grew 9.5% YoY in June, decelerating from the 17.4% YoY jump in May, per Rosstat data. Despite the positive YoY dynamics seen recently, they were most likely a factor of the low base effect from 2022. Hence, we maintain our positive outlook on the yellow metal, amid continuously strong physical gold demand, the rising cash costs of gold miners, and the adverse macroeconomic conditions globally. Noteworthy, Russia accounts for ~9% of the world's mined gold output
#gold
https://metals-wire.com/sector/Gold
ArcelorMittal 2Q23 results - EBITDA beats forecasts
✏️ArcelorMittal's 2Q23 revenues were roughly in line with market estimates (but +8% vs. us), mainly amid higher realised prices in the NAFTA segment than we had expected. This also positively affected EBITDA, which exceeded our forecasts (+5% vs. the consensus and +11% vs. us).
🏭The steelmaker has cut its ex-China steel demand forecast, which it now sees gaining 1-2% YoY in 2023 (vs. 2-3% seen earlier).
💰The company has repurchased 24.8mn shares within the buyback (of up to 85mn shares) programme announced in May. The programme implies a yield of some 10.4% through the repurchase period (until May 2025). The BoD also approved a base dividend of USD 0.44/sh. for 2Q23, implying a 1.5% DY.
❗️Overall, at spot, Arcelor’s 2Q23 EBITDA are set to continue to recover QoQ, given the cost normalisation and potentially higher sales in the EU.
#MT #steel
https://metals-wire.com:3000/company/MT_US/
✏️ArcelorMittal's 2Q23 revenues were roughly in line with market estimates (but +8% vs. us), mainly amid higher realised prices in the NAFTA segment than we had expected. This also positively affected EBITDA, which exceeded our forecasts (+5% vs. the consensus and +11% vs. us).
🏭The steelmaker has cut its ex-China steel demand forecast, which it now sees gaining 1-2% YoY in 2023 (vs. 2-3% seen earlier).
💰The company has repurchased 24.8mn shares within the buyback (of up to 85mn shares) programme announced in May. The programme implies a yield of some 10.4% through the repurchase period (until May 2025). The BoD also approved a base dividend of USD 0.44/sh. for 2Q23, implying a 1.5% DY.
❗️Overall, at spot, Arcelor’s 2Q23 EBITDA are set to continue to recover QoQ, given the cost normalisation and potentially higher sales in the EU.
#MT #steel
https://metals-wire.com:3000/company/MT_US/
Teck 2Q23 results - slightly below estimates
📝The miner's 2Q23 revenues came in weaker than we had expected (-4% vs. the consensus and us), mostly amid lower realised prices in the copper segment, as well as lower zinc sales volumes. This also resulted in the miss on EBITDA (-5% vs. consensus and us)
⛏The miner has revised its FY23 guidance, amid delays in construction and the commissioning of the QB2 mine. Copper output in 2023 is now expected at 330-375kt (growth >20% YoY) vs. 390-445kt previously (>40% YoY)
💰The BoD has declared an interim dividend of CAD 0.125/share (~0.9% yield) for 2Q23
📌At spot, we expect Teck's 3Q23F EBITDA to show a moderate improvement QoQ, supported by a further ramp up in production at QB2
#TECK #copper
https://metals-wire.com/company/TECK_US/
📝The miner's 2Q23 revenues came in weaker than we had expected (-4% vs. the consensus and us), mostly amid lower realised prices in the copper segment, as well as lower zinc sales volumes. This also resulted in the miss on EBITDA (-5% vs. consensus and us)
⛏The miner has revised its FY23 guidance, amid delays in construction and the commissioning of the QB2 mine. Copper output in 2023 is now expected at 330-375kt (growth >20% YoY) vs. 390-445kt previously (>40% YoY)
💰The BoD has declared an interim dividend of CAD 0.125/share (~0.9% yield) for 2Q23
📌At spot, we expect Teck's 3Q23F EBITDA to show a moderate improvement QoQ, supported by a further ramp up in production at QB2
#TECK #copper
https://metals-wire.com/company/TECK_US/
Peabody Energy 2Q23 results - EBITDA underperformed
✏️Peabody's quarterly revenues have more or less met market expectations. However, EBITDA came in weaker than estimated (-10% vs. the consensus and -12% vs. us), mostly due to the lower proceeds from the Middlemount JV
❗️The miner has lowered its guidance for FY23: total coal sales are now expected at ~120mnst (-7% vs. the previous indications), particularly affecting the low-margin Powder River Basin shipments
💰In 2Q23, the company repurchased USD 173mn of ordinary shares within its buyback programme (up to USD 1bn, offering a ~30% yield through the period). The BoD has declared a quarterly cash dividend of USD 0.075/share, in line with the new policy, implying a DY of some 0.3%
📊At spot, the company’s 3Q23F EBITDA might be in the mid-single digits weaker QoQ, amid the recent declines in thermal coal prices
#BTU #coal
https://metals-wire.com:3000/company/BTU_US/
✏️Peabody's quarterly revenues have more or less met market expectations. However, EBITDA came in weaker than estimated (-10% vs. the consensus and -12% vs. us), mostly due to the lower proceeds from the Middlemount JV
❗️The miner has lowered its guidance for FY23: total coal sales are now expected at ~120mnst (-7% vs. the previous indications), particularly affecting the low-margin Powder River Basin shipments
💰In 2Q23, the company repurchased USD 173mn of ordinary shares within its buyback programme (up to USD 1bn, offering a ~30% yield through the period). The BoD has declared a quarterly cash dividend of USD 0.075/share, in line with the new policy, implying a DY of some 0.3%
📊At spot, the company’s 3Q23F EBITDA might be in the mid-single digits weaker QoQ, amid the recent declines in thermal coal prices
#BTU #coal
https://metals-wire.com:3000/company/BTU_US/
Morning Bites
🏗China’s preliminary excavator sales were down 26% YoY in July (domestic + export), vs. the 24% YoY decline in June, according to CME estimates. In particular, domestic sales (the leading indicator of construction activity) are set to be 49% lower YoY, following the 45% YoY drop in June. Meanwhile, the CCMA forecasts a drop of some 14% YoY in the country’s total 2023 excavator sales, which implies a ~17% YoY reduction in their local consumption in 2H23 (vs. -44% YoY in 1H23). Were this trend to persist, it would indicate no recovery in China's depressed real estate sector. However, Beijing has recently signalled new stimulus for the local economy. In our view, this might add support to construction activity and the demand for industrial metals (e.g. steel, copper and aluminium)
#steel
https://metals-wire.com/sector/Steel
🏗China’s preliminary excavator sales were down 26% YoY in July (domestic + export), vs. the 24% YoY decline in June, according to CME estimates. In particular, domestic sales (the leading indicator of construction activity) are set to be 49% lower YoY, following the 45% YoY drop in June. Meanwhile, the CCMA forecasts a drop of some 14% YoY in the country’s total 2023 excavator sales, which implies a ~17% YoY reduction in their local consumption in 2H23 (vs. -44% YoY in 1H23). Were this trend to persist, it would indicate no recovery in China's depressed real estate sector. However, Beijing has recently signalled new stimulus for the local economy. In our view, this might add support to construction activity and the demand for industrial metals (e.g. steel, copper and aluminium)
#steel
https://metals-wire.com/sector/Steel
Vale 2Q23 results - broadly in-line with expectations
📝Vale's revenues in 2Q23 were only slightly below market forecasts (-2% vs. the consensus and -3% vs. us). Meanwhile, EBITDA also came roughly in-line with expectations (+1% vs. the consensus and -2% vs. us)
⛏The miner has recently reiterated its FY23 outlook: iron ore production is set to grow 2% YoY; however, nickel output is to shrink 6% YoY, following depletion of the Ovoid mine and expansion delays
💰According to the company, it has reached two separate agreements to sell a 13% stake in its base metals department for USD 3.4bn
📌On our numbers, Vale's 3Q23F EBITDA will show a material growth QoQ, at spot, supported by seasonally higher iron ore sales and further ramp-up of the Salobo copper project
#VALE #Iron_ore
https://metals-wire.com/company/VALE_US/
📝Vale's revenues in 2Q23 were only slightly below market forecasts (-2% vs. the consensus and -3% vs. us). Meanwhile, EBITDA also came roughly in-line with expectations (+1% vs. the consensus and -2% vs. us)
⛏The miner has recently reiterated its FY23 outlook: iron ore production is set to grow 2% YoY; however, nickel output is to shrink 6% YoY, following depletion of the Ovoid mine and expansion delays
💰According to the company, it has reached two separate agreements to sell a 13% stake in its base metals department for USD 3.4bn
📌On our numbers, Vale's 3Q23F EBITDA will show a material growth QoQ, at spot, supported by seasonally higher iron ore sales and further ramp-up of the Salobo copper project
#VALE #Iron_ore
https://metals-wire.com/company/VALE_US/
US Steel 2Q23 results - moderately above consensus
✏️US Steel's 2Q23 revenues outperformed both the consensus and us (+2% and +10% respectively), following stronger realised prices than we had expected, which more than offset a decline in shipments. Consequently, EBITDA was 3% above the consensus and 5% higher than our estimates
📈The company’s EU segment EBITDA was positive for the first time since 2Q22, amid recovering shipment volumes after the drop in 2H22 (+17% QoQ, but -3% YoY) and cost normalisation. However, the steelmaker’s total shipments continued to decline YoY
💰The BoD has declared a quarterly cash dividend of USD 0.05/sh, which implies a modest 0.2% DY
❗️On our numbers, at spot, US Steel’s 3Q23 EBITDA will materially improve QoQ amid further cost normalisation: current EU electricity prices are >60% lower than the 2Q23 average
#X #steel
https://metals-wire.com:3000/company/X_US/
✏️US Steel's 2Q23 revenues outperformed both the consensus and us (+2% and +10% respectively), following stronger realised prices than we had expected, which more than offset a decline in shipments. Consequently, EBITDA was 3% above the consensus and 5% higher than our estimates
📈The company’s EU segment EBITDA was positive for the first time since 2Q22, amid recovering shipment volumes after the drop in 2H22 (+17% QoQ, but -3% YoY) and cost normalisation. However, the steelmaker’s total shipments continued to decline YoY
💰The BoD has declared a quarterly cash dividend of USD 0.05/sh, which implies a modest 0.2% DY
❗️On our numbers, at spot, US Steel’s 3Q23 EBITDA will materially improve QoQ amid further cost normalisation: current EU electricity prices are >60% lower than the 2Q23 average
#X #steel
https://metals-wire.com:3000/company/X_US/
Week ahead data releases in M&M
As the reporting season continues, several M&M names are to publish their earnings this week. Regarding the major miners, our estimate for CSN's EBITDA is roughly in line with the consensus, while we are slightly more conservative on Kinross
#reporting_season
https://metals-wire.com:3000/events
As the reporting season continues, several M&M names are to publish their earnings this week. Regarding the major miners, our estimate for CSN's EBITDA is roughly in line with the consensus, while we are slightly more conservative on Kinross
#reporting_season
https://metals-wire.com:3000/events
Morning Bites (part 1)
📌China’s new internal combustion engine car sales were down 5% YoY in June, reversing from the +18% YoY in May. Overall, the sales remained below their pre-Covid level (-5% vs. June 2019), which, along with growing appetite for EVs, keeps weighing on the demand for PGMs. We remind our readers that the Chinese auto sector accounts for some 26% and 17% of world autocatalyst Pd and Pt demand, respectively
📌New EV sales in China jumped 35% YoY in June, following the 60% YoY spike in May. In our view, further growth in EV sales is set to bolster the consumption of the battery metals basket (e.g. cobalt, lithium and nickel), as China accounted for ~50% of global EV demand in recent months
#cars #EV #nickel #lithium #cobalt
https://metals-wire.com:3000/news-reports
📌China’s new internal combustion engine car sales were down 5% YoY in June, reversing from the +18% YoY in May. Overall, the sales remained below their pre-Covid level (-5% vs. June 2019), which, along with growing appetite for EVs, keeps weighing on the demand for PGMs. We remind our readers that the Chinese auto sector accounts for some 26% and 17% of world autocatalyst Pd and Pt demand, respectively
📌New EV sales in China jumped 35% YoY in June, following the 60% YoY spike in May. In our view, further growth in EV sales is set to bolster the consumption of the battery metals basket (e.g. cobalt, lithium and nickel), as China accounted for ~50% of global EV demand in recent months
#cars #EV #nickel #lithium #cobalt
https://metals-wire.com:3000/news-reports
Morning Bites (part 2)
💍LVMH has reported 14% YoY growth in the organic sales of watches and jewellery in 2Q23, vs. the 11% YoY increase in 1Q23. According to the company's CEO Bernard Arnault, sales were strong in the high jewelry segment, specifically at its Tiffany, Bulgari and TAG Heuer brands. Meanwhile, LVMH’s 2Q23 total organic sales in the US showed a 1% YoY decline (vs. +8% in 1Q23), which supports our cautious view on the diamond market globally, as the US is the key gem-set jewellery selling hub (~50% of global consumption)
#diamonds
https://metals-wire.com/sector/Diamonds
💍LVMH has reported 14% YoY growth in the organic sales of watches and jewellery in 2Q23, vs. the 11% YoY increase in 1Q23. According to the company's CEO Bernard Arnault, sales were strong in the high jewelry segment, specifically at its Tiffany, Bulgari and TAG Heuer brands. Meanwhile, LVMH’s 2Q23 total organic sales in the US showed a 1% YoY decline (vs. +8% in 1Q23), which supports our cautious view on the diamond market globally, as the US is the key gem-set jewellery selling hub (~50% of global consumption)
#diamonds
https://metals-wire.com/sector/Diamonds
Morning Bites (part 1)
☢Niger has suspended uranium exports to France, following the recent military coup. According to Politico, Niger accounts for ~20% of total EU imports of the material, as well as 15% of French uranium needs. In 2022, Niger accounted for ~4% of global U production, according to the World Nuclear Association's data. We note that Orano, a French company, which has been mining Niger's uranium reserves since 1970s, is continuing its operations. Overall, the export disruptions, if not resolved, might be a positive for global uranium prices. The latter might also affect EU energy prices: nuclear plants generated 22% and 63% of the region’s and France's electricity supply in 2022, respectively
#uranium
https://metals-wire.com/sector/Uranium
☢Niger has suspended uranium exports to France, following the recent military coup. According to Politico, Niger accounts for ~20% of total EU imports of the material, as well as 15% of French uranium needs. In 2022, Niger accounted for ~4% of global U production, according to the World Nuclear Association's data. We note that Orano, a French company, which has been mining Niger's uranium reserves since 1970s, is continuing its operations. Overall, the export disruptions, if not resolved, might be a positive for global uranium prices. The latter might also affect EU energy prices: nuclear plants generated 22% and 63% of the region’s and France's electricity supply in 2022, respectively
#uranium
https://metals-wire.com/sector/Uranium
👍2
Morning Bites (part 2)
🇨🇱Chile’s copper production was down 1% YoY in June, after the 14% YoY drop in May. The country’s mining industry is facing a persistent drought and unfavourable structural effects (e.g. grade depletion). However, the production decline decelerated last month, despite the heavy floods in late-June. To recap, Chile represents ~27% of global copper production, so if the adverse factors in its mining sector persist, they could at least partially offset the supply additions from new Cu projects (e.g. Kamoa, QB2 and Udokan) which are due to launch in 2023
#copper
https://metals-wire.com:3000/sector/Copper
🇨🇱Chile’s copper production was down 1% YoY in June, after the 14% YoY drop in May. The country’s mining industry is facing a persistent drought and unfavourable structural effects (e.g. grade depletion). However, the production decline decelerated last month, despite the heavy floods in late-June. To recap, Chile represents ~27% of global copper production, so if the adverse factors in its mining sector persist, they could at least partially offset the supply additions from new Cu projects (e.g. Kamoa, QB2 and Udokan) which are due to launch in 2023
#copper
https://metals-wire.com:3000/sector/Copper
Morning Bites (part 1)
🏆Global physical gold demand declined 5% YoY to 942t in 2Q23, after the 15% YoY increase in 1Q23, according to the World Gold Council (WGC). Meanwhile, total global gold demand was down 2% YoY (vs. -13% YoY in 1Q23). Importantly, central bank purchases last quarter were down 35% YoY, mostly driven by the sales of Turkey’s central bank. At the same time, the demand for gold jewellery was flat YoY in 2Q23 (vs. -2% YoY in 1Q23). Gold mine production grew ~4% YoY in 2Q23, accelerating from the 2% YoY growth in 1Q23. Despite some correction in physical gold demand, we keep our positive view on the precious metal's price, amid gold miners' rising cash costs and the adverse macroeconomic situation globally
#gold
https://metals-wire.com/sector/Gold
🏆Global physical gold demand declined 5% YoY to 942t in 2Q23, after the 15% YoY increase in 1Q23, according to the World Gold Council (WGC). Meanwhile, total global gold demand was down 2% YoY (vs. -13% YoY in 1Q23). Importantly, central bank purchases last quarter were down 35% YoY, mostly driven by the sales of Turkey’s central bank. At the same time, the demand for gold jewellery was flat YoY in 2Q23 (vs. -2% YoY in 1Q23). Gold mine production grew ~4% YoY in 2Q23, accelerating from the 2% YoY growth in 1Q23. Despite some correction in physical gold demand, we keep our positive view on the precious metal's price, amid gold miners' rising cash costs and the adverse macroeconomic situation globally
#gold
https://metals-wire.com/sector/Gold
Morning Bites (part 2)
🌏Global manufacturing PMIs remained subdued in July. The Eurozone Markit Manufacturing PMI declined to 42.7 (consensus estimate - 43.5), from 43.4 in June, its lowest point since May 2020, marking the sixth consecutive decline. The US ISM manufacturing PMI grew slightly, to 46.4 (from 46.0 in June)
🇨🇳The official NBS Manufacturing PMI in China also showed a slight recovery, to 49.3 in July (from 49.0 in June), ahead of the 49.2 estimates. However, the Caixin China Manufacturing PMI dropped to 49.2 in July (from 50.5), missing the forecasts of 50.3
❗️Overall, global PMIs below 50.0 in July indicate the still soft sentiment on the manufacturing sector. In turn, this slowdown of industrial activity in the EU/US and China is likely to have an adverse impact on the demand for industrial metals (e.g. steel, aluminium and copper). Nonetheless, China's potential measures for its real estate sector could bolster metals consumption
#PMIs
https://metals-wire.com:3000/news-reports
🌏Global manufacturing PMIs remained subdued in July. The Eurozone Markit Manufacturing PMI declined to 42.7 (consensus estimate - 43.5), from 43.4 in June, its lowest point since May 2020, marking the sixth consecutive decline. The US ISM manufacturing PMI grew slightly, to 46.4 (from 46.0 in June)
🇨🇳The official NBS Manufacturing PMI in China also showed a slight recovery, to 49.3 in July (from 49.0 in June), ahead of the 49.2 estimates. However, the Caixin China Manufacturing PMI dropped to 49.2 in July (from 50.5), missing the forecasts of 50.3
❗️Overall, global PMIs below 50.0 in July indicate the still soft sentiment on the manufacturing sector. In turn, this slowdown of industrial activity in the EU/US and China is likely to have an adverse impact on the demand for industrial metals (e.g. steel, aluminium and copper). Nonetheless, China's potential measures for its real estate sector could bolster metals consumption
#PMIs
https://metals-wire.com:3000/news-reports
Morning Bites (part 3)
💍Hong Kong jewellery and watch sales grew 64% YoY in June, following the 52% YoY increase in May, according to the government data. However, sales remained slightly below the pre-Covid level (-3% vs. June 2019). The growth was mostly due to the low base effect from 2022, when Hong Kong was under strict Covid-19 restrictions, resulting in a significant decline in the number of visitors. Despite sentiment in Asia being comparatively upbeat, its impact on the global diamond market, which is still being heavily stressed by adverse macroeconomic conditions, is limited, we believe
🛒Japanese consumers have agreed to pay a USD 127.50/t aluminium premium in 3Q23, Reuters reports. The figure is in line with the 2Q23 premiums. Meanwhile, producers’ initial offers were made at USD 165-180/t. According to market participants, the premiums remained unchanged QoQ, as local demand is still sluggish, with sufficient stocks
#diamonds #aluminium
https://metals-wire.com:3000/news-reports
💍Hong Kong jewellery and watch sales grew 64% YoY in June, following the 52% YoY increase in May, according to the government data. However, sales remained slightly below the pre-Covid level (-3% vs. June 2019). The growth was mostly due to the low base effect from 2022, when Hong Kong was under strict Covid-19 restrictions, resulting in a significant decline in the number of visitors. Despite sentiment in Asia being comparatively upbeat, its impact on the global diamond market, which is still being heavily stressed by adverse macroeconomic conditions, is limited, we believe
🛒Japanese consumers have agreed to pay a USD 127.50/t aluminium premium in 3Q23, Reuters reports. The figure is in line with the 2Q23 premiums. Meanwhile, producers’ initial offers were made at USD 165-180/t. According to market participants, the premiums remained unchanged QoQ, as local demand is still sluggish, with sufficient stocks
#diamonds #aluminium
https://metals-wire.com:3000/news-reports
Morning Bites (part 1)
💎US jewellery sales shrank 4% YoY in June, vs. the revised 2% YoY drop in May – IDEX reports, citing the US Department of Commerce. This was the ninth month of consecutive YoY drops since October 2022 (ex. January 2023, when there was +1% YoY). Although the country’s inflation is gradually slowing, consumer sentiment remains cautious, which is likely to keep weighing on diamond consumption, at least in the near future. Hence, we reiterate our view that the ongoing decline in US sales (~50% of world gem-set jewellery trade) might further stress rough diamonds prices
#diamonds
https://metals-wire.com/sector/Diamonds
💎US jewellery sales shrank 4% YoY in June, vs. the revised 2% YoY drop in May – IDEX reports, citing the US Department of Commerce. This was the ninth month of consecutive YoY drops since October 2022 (ex. January 2023, when there was +1% YoY). Although the country’s inflation is gradually slowing, consumer sentiment remains cautious, which is likely to keep weighing on diamond consumption, at least in the near future. Hence, we reiterate our view that the ongoing decline in US sales (~50% of world gem-set jewellery trade) might further stress rough diamonds prices
#diamonds
https://metals-wire.com/sector/Diamonds
Morning Bites (part 2)
🥉Global copper production was up 1.7% YoY in 5mo23, the International Copper Study Group reports. Meanwhile, the output in May showed a 1.5% YoY decrease (vs. +3.3% YoY in April). Although global Cu mined production benefited from some ramp ups and expansions, the growth was largely limited by operational issues in Chile, China, Indonesia, Panama and the US, as well as by community actions in Peru, according to the report. Specifically, Indonesian output shrank 5.0% YoY, as Grasberg operations were temporarily hit by rainfall and landslides
#copper
https://metals-wire.com:3000/sector/Copper
🥉Global copper production was up 1.7% YoY in 5mo23, the International Copper Study Group reports. Meanwhile, the output in May showed a 1.5% YoY decrease (vs. +3.3% YoY in April). Although global Cu mined production benefited from some ramp ups and expansions, the growth was largely limited by operational issues in Chile, China, Indonesia, Panama and the US, as well as by community actions in Peru, according to the report. Specifically, Indonesian output shrank 5.0% YoY, as Grasberg operations were temporarily hit by rainfall and landslides
#copper
https://metals-wire.com:3000/sector/Copper