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
CSN 2Q23 results - slightly below expectations
✏️CSN's 2Q23 revenues missed both the consensus and our estimates by 3%, as steel sales came lower than we had anticipated, although that was partially offset by an increase in iron ore shipments. Consequently, EBITDA was reported 3% below the consensus and -5% vs. our forecast
⛏The company's iron ore output surged 35% YoY, which puts CSN back on track to achieve its production guidance of 39-41mt in FY23 (~19% YoY growth)
❗️We see CSN’s 3Q23F EBITDA staying relatively flat QoQ, given the stable production levels and steel prices (at spot)
#SID #iron_ore
https://metals-wire.com:3000/company/SID_US/
✏️CSN's 2Q23 revenues missed both the consensus and our estimates by 3%, as steel sales came lower than we had anticipated, although that was partially offset by an increase in iron ore shipments. Consequently, EBITDA was reported 3% below the consensus and -5% vs. our forecast
⛏The company's iron ore output surged 35% YoY, which puts CSN back on track to achieve its production guidance of 39-41mt in FY23 (~19% YoY growth)
❗️We see CSN’s 3Q23F EBITDA staying relatively flat QoQ, given the stable production levels and steel prices (at spot)
#SID #iron_ore
https://metals-wire.com:3000/company/SID_US/
Warrior Met Coal 2Q23 results - EBITDA miss on higher unit costs
✏️Warrior's 2Q23 revenue was 6% below the consensus, but 5% above us, amid slightly higher realised prices, as well as upbeat sales volumes. EBITDA, though, was materially below the consensus (-18%) and our estimates (-10%), as unit cash costs accelerated faster than we had anticipated
📈Unit cash costs were 8% QoQ (5% YoY) higher in 2Q23 to USD 142/mt; however, the company sees normalisation with an average cost of USD 131/mt in FY23
⛏The company has revised its FY23 guidance. Coking coal output is set to reach 6.8-7.4mst, (+8% vs. the previous indications); this would imply a 14% YoY increase. Sales guidance was also revised 7% up to 7.1-7.7mst, implying 31% YoY growth
❗️At spot, we expect Warrior’s 3Q23 EBITDA to show a moderate improvement QoQ, due to the guided cost normalisation and slight increase in sales
#HCC_US #Coal
https://metals-wire.com/company/HCC_US
✏️Warrior's 2Q23 revenue was 6% below the consensus, but 5% above us, amid slightly higher realised prices, as well as upbeat sales volumes. EBITDA, though, was materially below the consensus (-18%) and our estimates (-10%), as unit cash costs accelerated faster than we had anticipated
📈Unit cash costs were 8% QoQ (5% YoY) higher in 2Q23 to USD 142/mt; however, the company sees normalisation with an average cost of USD 131/mt in FY23
⛏The company has revised its FY23 guidance. Coking coal output is set to reach 6.8-7.4mst, (+8% vs. the previous indications); this would imply a 14% YoY increase. Sales guidance was also revised 7% up to 7.1-7.7mst, implying 31% YoY growth
❗️At spot, we expect Warrior’s 3Q23 EBITDA to show a moderate improvement QoQ, due to the guided cost normalisation and slight increase in sales
#HCC_US #Coal
https://metals-wire.com/company/HCC_US
Kinross 2Q23 results - EBITDA beats expectations again
📝Kinross’s 2Q23 revenues have moderately exceeded market estimates (+8% vs. the consensus and +6% vs. us), following sales being ~6% higher than we had anticipated. Meanwhile, the cash costs came in softer, giving more of a positive push to EBITDA (+16% vs. consensus, and +20% vs. us)
💵In 2Q23, the gold miner’s AISC fell 3% YoY (-2% QoQ) to USD 1,296/oz of gold equivalent. Hence, Kinross is on track to meet its FY23 AISC guidance of USD 1,320/oz
⛏The company reiterated its FY23 production outlook of 2.1mnoz of gold equivalent (+7% YoY), amid higher output from its Tasiast and La Coipa mines
💰The BoD has declared a regular quarterly dividend of USD 0.03/share, which implies a 0.7% DY
❗️We see Kinross's 3Q23F adjusted EBITDA declining in the mid-single digits QoQ, at spot, driven by a slightly lower gold price (-2% vs. the 2Q23 average)
#K_CN #gold
https://metals-wire.com:3000/company/K_CN/
📝Kinross’s 2Q23 revenues have moderately exceeded market estimates (+8% vs. the consensus and +6% vs. us), following sales being ~6% higher than we had anticipated. Meanwhile, the cash costs came in softer, giving more of a positive push to EBITDA (+16% vs. consensus, and +20% vs. us)
💵In 2Q23, the gold miner’s AISC fell 3% YoY (-2% QoQ) to USD 1,296/oz of gold equivalent. Hence, Kinross is on track to meet its FY23 AISC guidance of USD 1,320/oz
⛏The company reiterated its FY23 production outlook of 2.1mnoz of gold equivalent (+7% YoY), amid higher output from its Tasiast and La Coipa mines
💰The BoD has declared a regular quarterly dividend of USD 0.03/share, which implies a 0.7% DY
❗️We see Kinross's 3Q23F adjusted EBITDA declining in the mid-single digits QoQ, at spot, driven by a slightly lower gold price (-2% vs. the 2Q23 average)
#K_CN #gold
https://metals-wire.com:3000/company/K_CN/
Morning Bites
🚘US light vehicle sales rose 15% YoY in July, decelerating from the 21% YoY growth in June, but still 6% below the pre-Covid 2019 level. Seasonally adjusted sales volumes also grew 19% YoY last month (-6% vs. 2019). According to Reuters, citing S&P Global, delays within the supply chain are easing, which is helping automakers to ramp up production to meet demand. However, per the agency, high inflation rates in 2H23 might negatively affect affordability. In our view, a slowdown in sales recovery would further weigh on the US domestic market in 2023, and, therefore, keep PGM demand from the automotive sector stressed, as North America accounted for ~22% and 16% of the world autocatalyst Pd and Pt consumption, respectively, in 2022
#cars
https://metals-wire.com:3000/news-reports
🚘US light vehicle sales rose 15% YoY in July, decelerating from the 21% YoY growth in June, but still 6% below the pre-Covid 2019 level. Seasonally adjusted sales volumes also grew 19% YoY last month (-6% vs. 2019). According to Reuters, citing S&P Global, delays within the supply chain are easing, which is helping automakers to ramp up production to meet demand. However, per the agency, high inflation rates in 2H23 might negatively affect affordability. In our view, a slowdown in sales recovery would further weigh on the US domestic market in 2023, and, therefore, keep PGM demand from the automotive sector stressed, as North America accounted for ~22% and 16% of the world autocatalyst Pd and Pt consumption, respectively, in 2022
#cars
https://metals-wire.com:3000/news-reports
Week ahead data releases in M&M
Several major M&M names are due to release their 2Q23 financials this week. For Glencore and Barrick, we are slightly more conservative than the consensus. Meanwhile, we expect Newcrest to reveal upbeat EBITDA figures
#reporting_season
https://metals-wire.com:3000/events
Several major M&M names are due to release their 2Q23 financials this week. For Glencore and Barrick, we are slightly more conservative than the consensus. Meanwhile, we expect Newcrest to reveal upbeat EBITDA figures
#reporting_season
https://metals-wire.com:3000/events
Morning Bites (part 1)
🔗CISA mills' daily crude steel production during late July was 2.14mnt, a 5.0% drop from the previous ten days. However, the output rose 13.0% YoY - mostly due to the low base effect from 2022. Local steel inventories declined 7.5% (-12.7% YoY). Although the YTD steel output grew 1.8% YoY, we note that Beijing’s stated intention is not to exceed the 2022 production level. Furthermore, the potential for new stimulus for China’s property sector could favourably affect construction activity and, thus, the demand for industrial metals (e.g. steel aluminium and copper) later in 2H23
#steel
https://metals-wire.com:3000/sector/Steel
🔗CISA mills' daily crude steel production during late July was 2.14mnt, a 5.0% drop from the previous ten days. However, the output rose 13.0% YoY - mostly due to the low base effect from 2022. Local steel inventories declined 7.5% (-12.7% YoY). Although the YTD steel output grew 1.8% YoY, we note that Beijing’s stated intention is not to exceed the 2022 production level. Furthermore, the potential for new stimulus for China’s property sector could favourably affect construction activity and, thus, the demand for industrial metals (e.g. steel aluminium and copper) later in 2H23
#steel
https://metals-wire.com:3000/sector/Steel
Morning Bites (part 2)
🏦Global central banks returned to gold purchases in June, accumulating a net 55t (vs. the 27t sold in May), the World Gold Council reports. The main buyers were China (21t), Poland (14t), Turkey (11t) and Uzbekistan (8t). Meanwhile, the only substantial seller was Kazakhstan, which sold 3t of gold. Although world physical gold demand was down 5% YoY in 2Q23, this was mainly driven by the massive sales from Turkey’s CB. Overall, the adverse macroeconomic conditions globally and growing miners' cash costs are likely to provide further support for the yellow metal's performance, we believe
#gold
https://metals-wire.com/sector/Gold
🏦Global central banks returned to gold purchases in June, accumulating a net 55t (vs. the 27t sold in May), the World Gold Council reports. The main buyers were China (21t), Poland (14t), Turkey (11t) and Uzbekistan (8t). Meanwhile, the only substantial seller was Kazakhstan, which sold 3t of gold. Although world physical gold demand was down 5% YoY in 2Q23, this was mainly driven by the massive sales from Turkey’s CB. Overall, the adverse macroeconomic conditions globally and growing miners' cash costs are likely to provide further support for the yellow metal's performance, we believe
#gold
https://metals-wire.com/sector/Gold