Morning Bites (part 2)
🏭Global primary aluminium output rose 3% YoY in September, vs. the 2% YoY growth in August, the International Aluminium Institute reports. Specifically, China’s production increased 4% YoY, while ex-China production inched up 1% YoY (also +1% vs. 2019). According to Reuters, China (59% of the global Al output in 2022) is experiencing a production surge (+0.8mnt in 9mo23) amid improved power supply in previously drought-hit parts of the country's hydro-electric system. Overall, the dynamics are in line with previous estimates of the maximum resumption of 1.3mnt of China’s halted Al capacity (~2% of global 2022 output). Meanwhile, further production growth seems unlikely to us, given that >50% of global Al suppliers are currently breakeven or loss-making at spot, on our numbers, amid low Al prices
#aluminium
https://metals-wire.com:3000/sector/Aluminium
🏭Global primary aluminium output rose 3% YoY in September, vs. the 2% YoY growth in August, the International Aluminium Institute reports. Specifically, China’s production increased 4% YoY, while ex-China production inched up 1% YoY (also +1% vs. 2019). According to Reuters, China (59% of the global Al output in 2022) is experiencing a production surge (+0.8mnt in 9mo23) amid improved power supply in previously drought-hit parts of the country's hydro-electric system. Overall, the dynamics are in line with previous estimates of the maximum resumption of 1.3mnt of China’s halted Al capacity (~2% of global 2022 output). Meanwhile, further production growth seems unlikely to us, given that >50% of global Al suppliers are currently breakeven or loss-making at spot, on our numbers, amid low Al prices
#aluminium
https://metals-wire.com:3000/sector/Aluminium
Morning Bites (part 1)
📈China’s aluminium products output grew 2% YoY to 5.55mnt in September, after the 3% YoY increase in August. These dynamics reflect the solid demand for aluminium in China (~58% of global primary Al consumption in 2022). However, the positive effect on prices might be at least partially offset by the recovery in China’s aluminium production, in our view
🥉Chinese output of copper products was down 9% YoY in September to 2.01mnt, after the -5% YoY in August. Meanwhile, the 17% YoY growth in domestic power generation equipment (+21% YoY in August) added some support to the dynamics. To recap, China represents ~55% of global Cu consumption
#aluminium #copper
https://metals-wire.com:3000/news-reports
📈China’s aluminium products output grew 2% YoY to 5.55mnt in September, after the 3% YoY increase in August. These dynamics reflect the solid demand for aluminium in China (~58% of global primary Al consumption in 2022). However, the positive effect on prices might be at least partially offset by the recovery in China’s aluminium production, in our view
🥉Chinese output of copper products was down 9% YoY in September to 2.01mnt, after the -5% YoY in August. Meanwhile, the 17% YoY growth in domestic power generation equipment (+21% YoY in August) added some support to the dynamics. To recap, China represents ~55% of global Cu consumption
#aluminium #copper
https://metals-wire.com:3000/news-reports
Morning Bites (part 2)
🥉Global copper production rose 1.3% YoY in 8mo23, the International Copper Study Group reports. Specifically, in August, output grew 1.3% YoY (vs. the revised +1.6% YoY in July). Despite some start-ups and expansions in 8mo23, the growth in mined Cu supply was rather limited amid operational issues in Chile, China, Indonesia, Panama and the US, per the report. Specifically, Indonesian output was down 9.0% YoY in 8mo23, as Grassberg's operations were temporarily disrupted by rainfall and landslides. At the same time, the output in DRC rose ~9.0% YoY, mainly due to the expansion of Kamoa mine and new/expanded capacity at other local mines
#copper
https://metals-wire.com:3000/sector/Copper
🥉Global copper production rose 1.3% YoY in 8mo23, the International Copper Study Group reports. Specifically, in August, output grew 1.3% YoY (vs. the revised +1.6% YoY in July). Despite some start-ups and expansions in 8mo23, the growth in mined Cu supply was rather limited amid operational issues in Chile, China, Indonesia, Panama and the US, per the report. Specifically, Indonesian output was down 9.0% YoY in 8mo23, as Grassberg's operations were temporarily disrupted by rainfall and landslides. At the same time, the output in DRC rose ~9.0% YoY, mainly due to the expansion of Kamoa mine and new/expanded capacity at other local mines
#copper
https://metals-wire.com:3000/sector/Copper
Teck 3Q23 results - another miss on EBITDA estimates
📝The miner's 3Q23 revenues were roughly in line with the market expectations and us. However, EBITDA came in rather weak (-17% vs. the consensus and -13% vs. us), as the proceeds from the copper and coal business were lower than we had anticipated
📊Of note, the company's 3Q23 unit cash cost grew ~4% YoY, following lower production levels and increased maintenance activities
⛏Teck has lowered its FY23 copper production guidance ~3% to 320-365kt, amid potentially lower output at Highland Valley. Coal production was also revised down, and is now 7% below the previous indications at ~23mnt, amid challenges at the plant
📌At spot, we expect Teck's 4Q23F EBITDA to improve materially QoQ, bolstered by production at QB2 ramping up further, and higher coking coal prices (+36% vs. the 3Q23 avg)
#TECK #copper
https://metals-wire.com/company/TECK_US/
📝The miner's 3Q23 revenues were roughly in line with the market expectations and us. However, EBITDA came in rather weak (-17% vs. the consensus and -13% vs. us), as the proceeds from the copper and coal business were lower than we had anticipated
📊Of note, the company's 3Q23 unit cash cost grew ~4% YoY, following lower production levels and increased maintenance activities
⛏Teck has lowered its FY23 copper production guidance ~3% to 320-365kt, amid potentially lower output at Highland Valley. Coal production was also revised down, and is now 7% below the previous indications at ~23mnt, amid challenges at the plant
📌At spot, we expect Teck's 4Q23F EBITDA to improve materially QoQ, bolstered by production at QB2 ramping up further, and higher coking coal prices (+36% vs. the 3Q23 avg)
#TECK #copper
https://metals-wire.com/company/TECK_US/
Morning Bites (part 1)
🔗Global crude steel output declined 2% YoY to 149mnt in September, reversing from the 2% YoY growth in August, the World Steel Association reports. China’s production fell 6% YoY, vs. the 3% YoY increase in August, while ex-China steel output rose 4% YoY. In particular, EU production dropped 1% YoY (-4% YoY in August), amid the local energy crisis. US steel production gained 3% YoY, while Russian output jumped 10% YoY, following the 9% YoY increase in August
Despite Beijing’s stated intention to keep national steel output no higher than the 2022 level, it was still +2% YoY in 9mo23. Hence, we might see additional production restrictions in 4Q23 in order to meet the supply cap, which would be a positive factor for steel prices, we believe. China accounted for ~55% of global crude steel output in September
#steel
https://metals-wire.com:3000/sector/Steel
🔗Global crude steel output declined 2% YoY to 149mnt in September, reversing from the 2% YoY growth in August, the World Steel Association reports. China’s production fell 6% YoY, vs. the 3% YoY increase in August, while ex-China steel output rose 4% YoY. In particular, EU production dropped 1% YoY (-4% YoY in August), amid the local energy crisis. US steel production gained 3% YoY, while Russian output jumped 10% YoY, following the 9% YoY increase in August
Despite Beijing’s stated intention to keep national steel output no higher than the 2022 level, it was still +2% YoY in 9mo23. Hence, we might see additional production restrictions in 4Q23 in order to meet the supply cap, which would be a positive factor for steel prices, we believe. China accounted for ~55% of global crude steel output in September
#steel
https://metals-wire.com:3000/sector/Steel
Morning Bites (part 2)
💎Botswana's ODC has halted diamond sales amid soft demand, Reuters reports, citing the company's managing director Mmetla Masire. Okavango Diamond Company (ODC), the marketing unit of Debswana with an allocation of ~6mnct (~5% of world rough diamonds supply in 2022), has cancelled its November auction and admitted the possibility of December sales being cancelled, reflecting weak demand in the US and China (53% and 12% of the global gem-set jewellery trade, respectively). Overall, the decision, along with the recent supply discipline measures taken by De Beers and Alrosa (which jointly represent ~60% of global rough diamonds output), could help to normalise midstream inventories in the medium term, we believe
#diamonds
https://metals-wire.com/sector/Diamonds
💎Botswana's ODC has halted diamond sales amid soft demand, Reuters reports, citing the company's managing director Mmetla Masire. Okavango Diamond Company (ODC), the marketing unit of Debswana with an allocation of ~6mnct (~5% of world rough diamonds supply in 2022), has cancelled its November auction and admitted the possibility of December sales being cancelled, reflecting weak demand in the US and China (53% and 12% of the global gem-set jewellery trade, respectively). Overall, the decision, along with the recent supply discipline measures taken by De Beers and Alrosa (which jointly represent ~60% of global rough diamonds output), could help to normalise midstream inventories in the medium term, we believe
#diamonds
https://metals-wire.com/sector/Diamonds
First Quantum 3Q23 results - EBITDA outperforms
📝The miner’s 3Q23 revenues slightly exceeded market expectations, but fell short of our estimates, amid lower copper and gold sales volumes. However, EBITDA came in stronger (+22% vs. consensus and +24% vs. us) due to costs at Cobre Panama and some Zambian mines normalising faster than we expected
📌First Quantum's 3Q23 C1 copper cash cost declined 22% YoY to USD 1.42/lb, amid higher production volumes. Nevertheless, the FY23 costs guidance was revised slightly up, to USD 1.75-1.85/lb (+3% vs. previous indications)
🏭The company narrowed its copper production guidance for FY23: volumes are now expected to stay roughly flat YoY (vs. +4% YoY seen earlier), while gold output might shrink ~15% YoY
📌At spot, we expect First Quantum's 4Q23F EBITDA to be materially weaker QoQ, driven by lower copper prices (-5% vs. 3Q23 av.) and the revised production outlook
#FM #copper
https://metals-wire.com/company/FM_CN/
📝The miner’s 3Q23 revenues slightly exceeded market expectations, but fell short of our estimates, amid lower copper and gold sales volumes. However, EBITDA came in stronger (+22% vs. consensus and +24% vs. us) due to costs at Cobre Panama and some Zambian mines normalising faster than we expected
📌First Quantum's 3Q23 C1 copper cash cost declined 22% YoY to USD 1.42/lb, amid higher production volumes. Nevertheless, the FY23 costs guidance was revised slightly up, to USD 1.75-1.85/lb (+3% vs. previous indications)
🏭The company narrowed its copper production guidance for FY23: volumes are now expected to stay roughly flat YoY (vs. +4% YoY seen earlier), while gold output might shrink ~15% YoY
📌At spot, we expect First Quantum's 4Q23F EBITDA to be materially weaker QoQ, driven by lower copper prices (-5% vs. 3Q23 av.) and the revised production outlook
#FM #copper
https://metals-wire.com/company/FM_CN/
Morning Bites
🔗CISA mills' daily crude steel production during mid-October was 2.04mnt, a 2.1% drop from the previous ten days (and -1.3% YoY). At the same time, local steel inventories rose 0.9% (-6.8% YoY). Despite some declines in China’s output, the figure was still up 1.7% YoY in 9mo23, while Beijing aims to keep national steel production not higher than the 2022 levels. Hence, we might see more production restrictions for local steel mills later in 4Q23. That would be a positive factor for steel prices, if it materialised, we believe
#steel
https://metals-wire.com:3000/sector/Steel
🔗CISA mills' daily crude steel production during mid-October was 2.04mnt, a 2.1% drop from the previous ten days (and -1.3% YoY). At the same time, local steel inventories rose 0.9% (-6.8% YoY). Despite some declines in China’s output, the figure was still up 1.7% YoY in 9mo23, while Beijing aims to keep national steel production not higher than the 2022 levels. Hence, we might see more production restrictions for local steel mills later in 4Q23. That would be a positive factor for steel prices, if it materialised, we believe
#steel
https://metals-wire.com:3000/sector/Steel
Agnico Eagle 3Q23 results - overall neutral
📝Agnico Eagle's 3Q23 revenues were broadly in line with the consensus and us. Adjusted EBITDA, though, came in slightly below market expectations (-3% vs. the consensus and -4% vs. us), mostly because exploration costs were higher than we had anticipated
📈The gold miner's 3Q23 AISC grew ~9% YoY to USD 1,210/oz, while management sees the total figure for 2023 at USD 1,140-1,190/oz
⛏Agnico remains on track to achieve its FY23 production guidance: payable gold output is expected at 3.24-3.44 mnoz (~6% YoY growth)
💰The BoD has declared a 3Q cash dividend of USD 0.40/share, which implies a quarterly yield of some 0.8%
📌At spot, we expect Agnico Eagle's 4Q23F EBITDA to grow in the single digits QoQ, bolstered by slightly higher gold prices (+3% vs. the 3Q23 av.)
#AEM #gold
https://metals-wire.com/company/AEM_US/
📝Agnico Eagle's 3Q23 revenues were broadly in line with the consensus and us. Adjusted EBITDA, though, came in slightly below market expectations (-3% vs. the consensus and -4% vs. us), mostly because exploration costs were higher than we had anticipated
📈The gold miner's 3Q23 AISC grew ~9% YoY to USD 1,210/oz, while management sees the total figure for 2023 at USD 1,140-1,190/oz
⛏Agnico remains on track to achieve its FY23 production guidance: payable gold output is expected at 3.24-3.44 mnoz (~6% YoY growth)
💰The BoD has declared a 3Q cash dividend of USD 0.40/share, which implies a quarterly yield of some 0.8%
📌At spot, we expect Agnico Eagle's 4Q23F EBITDA to grow in the single digits QoQ, bolstered by slightly higher gold prices (+3% vs. the 3Q23 av.)
#AEM #gold
https://metals-wire.com/company/AEM_US/
Peabody Energy 3Q23 results - above expectations
🪨Peabody's quarterly revenues broadly met the consensus, while the figure was 9% below our estimates, amid higher seaborne discounts. At the same time, adjusted EBITDA came in materially stronger than the consensus (+14%) and roughly in line with us
❗️The miner is on track to achieve its FY23 guidance: coal sales are expected to grow 6% YoY to ~130mnst
💰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, we expect the company’s 4Q23F EBITDA to show a substantial recovery QoQ, driven by the recent growth in global coking coal prices (+35% at spot vs. the 3Q23 av.)
#BTU #coal
https://metals-wire.com:3000/company/BTU_US/
🪨Peabody's quarterly revenues broadly met the consensus, while the figure was 9% below our estimates, amid higher seaborne discounts. At the same time, adjusted EBITDA came in materially stronger than the consensus (+14%) and roughly in line with us
❗️The miner is on track to achieve its FY23 guidance: coal sales are expected to grow 6% YoY to ~130mnst
💰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, we expect the company’s 4Q23F EBITDA to show a substantial recovery QoQ, driven by the recent growth in global coking coal prices (+35% at spot vs. the 3Q23 av.)
#BTU #coal
https://metals-wire.com:3000/company/BTU_US/
Newmont 3Q23 results - another severe miss
📉Newmont reported weak 3Q23 revenues (-19% vs. the consensus and -20% vs. us) amid lower sales volumes, with the miner failing to achieve its guidance. This also resulted in disappointing EBITDA figures (-18% vs. the consensus and -20% vs. us)
⛏ Given the impacts of the Peñasquito strike and lower production from JVs, the gold miner has revised its AISC outlook to USD 1,400/oz (+17% vs. previous indications). The production guidance has also been lowered, to 5.3mnoz (from the earlier estimates of 5.7-6.3mnoz for FY23)
💰The company's BoD has declared a 3Q dividend of USD 0.40/share, which offers a yield of some 1.1%
❗️On our numbers, at spot, Newmont’s 4Q23F EBITDA will likely increase QoQ, given the potential recovery in sales volumes (the new guidance implies output to grow 16% QoQ), as well 3% higher gold prices vs. the 3Q23 average
#NEM #gold
https://metals-wire.com:3000/company/NEM_US/
📉Newmont reported weak 3Q23 revenues (-19% vs. the consensus and -20% vs. us) amid lower sales volumes, with the miner failing to achieve its guidance. This also resulted in disappointing EBITDA figures (-18% vs. the consensus and -20% vs. us)
⛏ Given the impacts of the Peñasquito strike and lower production from JVs, the gold miner has revised its AISC outlook to USD 1,400/oz (+17% vs. previous indications). The production guidance has also been lowered, to 5.3mnoz (from the earlier estimates of 5.7-6.3mnoz for FY23)
💰The company's BoD has declared a 3Q dividend of USD 0.40/share, which offers a yield of some 1.1%
❗️On our numbers, at spot, Newmont’s 4Q23F EBITDA will likely increase QoQ, given the potential recovery in sales volumes (the new guidance implies output to grow 16% QoQ), as well 3% higher gold prices vs. the 3Q23 average
#NEM #gold
https://metals-wire.com:3000/company/NEM_US/
Morning Bites (part 1)
🚗💨Internal combustion engine (ICE) car registrations in Europe inched up 1% YoY in 3Q23, after the 7% YoY growth in 2Q23. Petrol car sales were up 5% YoY (vs. +12% YoY in 2Q23), while diesel car registrations declined 9% YoY. Diesel cars accounted for 25% of total ICE car sales, the same as in 2Q23. Overall, the figures remain significantly below the 2019 levels, weighing on PGM prices: the EU represents 20% and 31% of global Pd and Pt autocatalyst demand, respectively
🚘 EV sales in Europe jumped 35% YoY in 3Q23, in line with the 2Q23 dynamics. Specifically, BEV sales gained 50% YoY (vs. +57% YoY in 2Q23), while PHEV sales rose 11% YoY. The share of BEVs in total EV sales increased slightly to 69%, from 67% in 2Q23. In our view, continuously strong local EV sales are likely to have a positive effect on the demand for battery metals (e.g. nickel, lithium and cobalt)
#cars #EV #nickel #lithium #cobalt
https://metals-wire.com:3000/news-reports
🚗💨Internal combustion engine (ICE) car registrations in Europe inched up 1% YoY in 3Q23, after the 7% YoY growth in 2Q23. Petrol car sales were up 5% YoY (vs. +12% YoY in 2Q23), while diesel car registrations declined 9% YoY. Diesel cars accounted for 25% of total ICE car sales, the same as in 2Q23. Overall, the figures remain significantly below the 2019 levels, weighing on PGM prices: the EU represents 20% and 31% of global Pd and Pt autocatalyst demand, respectively
🚘 EV sales in Europe jumped 35% YoY in 3Q23, in line with the 2Q23 dynamics. Specifically, BEV sales gained 50% YoY (vs. +57% YoY in 2Q23), while PHEV sales rose 11% YoY. The share of BEVs in total EV sales increased slightly to 69%, from 67% in 2Q23. In our view, continuously strong local EV sales are likely to have a positive effect on the demand for battery metals (e.g. nickel, lithium and cobalt)
#cars #EV #nickel #lithium #cobalt
https://metals-wire.com:3000/news-reports
Morning Bites (part 2)
📉Russia’s gold output dropped 9.2% YoY in September, accelerating from the 3.6% YoY fall in August, according to Rosstat data. Despite three consecutive months of declines, local production was still up 1.7% YoY on the 9mo23 basis. Russia accounts for ~9% of the world's mined gold output. Overall, given miners’ rising cash costs, persistently strong demand from global central banks and potentially lower US Fed funds rate in 1H24, we maintain our bullish view on gold's performance
#gold
https://metals-wire.com/sector/Gold
📉Russia’s gold output dropped 9.2% YoY in September, accelerating from the 3.6% YoY fall in August, according to Rosstat data. Despite three consecutive months of declines, local production was still up 1.7% YoY on the 9mo23 basis. Russia accounts for ~9% of the world's mined gold output. Overall, given miners’ rising cash costs, persistently strong demand from global central banks and potentially lower US Fed funds rate in 1H24, we maintain our bullish view on gold's performance
#gold
https://metals-wire.com/sector/Gold
❤1
Vale 3Q23 results - below expectations
📝Vale's 3Q23 revenues roughly met the market forecasts. However, EBITDA came in weaker (-5% vs. the consensus and -8% vs. us), on the back of cost pressures in the nickel and copper segments being higher than we had anticipated
⛏The miner has recently reiterated its FY23 production outlook for iron ore, while copper output is now expected to be ~9% lower than the previously guided figures, as the YTD performance is lagging the initial plans
💰According to the company, its iron ore C1 cash cost decreased 7% QoQ (+13% YoY) to USD 21.90/t, with Vale on track to meet its USD 21.50–22.50/t target for FY23
📌On our numbers, Vale's 4Q23F EBITDA might show a slight QoQ improvement, at spot, supported by potentially higher proceeds from its base metals business
#VALE #Iron_ore
https://metals-wire.com/company/VALE_US/
📝Vale's 3Q23 revenues roughly met the market forecasts. However, EBITDA came in weaker (-5% vs. the consensus and -8% vs. us), on the back of cost pressures in the nickel and copper segments being higher than we had anticipated
⛏The miner has recently reiterated its FY23 production outlook for iron ore, while copper output is now expected to be ~9% lower than the previously guided figures, as the YTD performance is lagging the initial plans
💰According to the company, its iron ore C1 cash cost decreased 7% QoQ (+13% YoY) to USD 21.90/t, with Vale on track to meet its USD 21.50–22.50/t target for FY23
📌On our numbers, Vale's 4Q23F EBITDA might show a slight QoQ improvement, at spot, supported by potentially higher proceeds from its base metals business
#VALE #Iron_ore
https://metals-wire.com/company/VALE_US/
Week ahead data releases in M&M
As the reporting season continues, several M&M names are due to publish their earnings this week. Regarding Barrick (one of the major global gold miners), our EBITDA estimate is moderately above the consensus
#reporting_season
https://metals-wire.com:3000/events
As the reporting season continues, several M&M names are due to publish their earnings this week. Regarding Barrick (one of the major global gold miners), our EBITDA estimate is moderately above the consensus
#reporting_season
https://metals-wire.com:3000/events
Morning Bites
🏗China’s preliminary excavator sales were down 35% YoY in October (domestic + export), broadly in-line with the 33% YoY decline in September, according to CME estimates. Specifically, domestic sales (a key indicator of construction activity) are set to be 43% weaker YoY, after the 40% YoY drop in September. Were this trend to persist, it would indicate no recovery in China's stressed real estate sector, we believe. However, new economic stimulus, in the form of higher government spending, aimed at infrastructure investment, might add support to local construction activity, and hence, China’s demand for industrial metals in late 2023-24
China represents 52% of global steel consumption, as well as 55% and 58% of world copper and aluminium demand, respectively
#steel
https://metals-wire.com/sector/Steel
🏗China’s preliminary excavator sales were down 35% YoY in October (domestic + export), broadly in-line with the 33% YoY decline in September, according to CME estimates. Specifically, domestic sales (a key indicator of construction activity) are set to be 43% weaker YoY, after the 40% YoY drop in September. Were this trend to persist, it would indicate no recovery in China's stressed real estate sector, we believe. However, new economic stimulus, in the form of higher government spending, aimed at infrastructure investment, might add support to local construction activity, and hence, China’s demand for industrial metals in late 2023-24
China represents 52% of global steel consumption, as well as 55% and 58% of world copper and aluminium demand, respectively
#steel
https://metals-wire.com/sector/Steel
Morning Bites
🔗China’s CISA predicts lower domestic steel supply in 4Q23, on the back of energy consumption regulations and measures to protect the environment. The CISA also noted soft domestic demand, as the local real estate sector remains subdued. Overall, the news underpins our view that Beijing might implement more steel production restrictions in late-2023 to keep national steel output no higher than the 2022 levels. On our numbers, to meet this requirement, steel supply for the rest of the year must be ~11% YoY lower, on average. That would be a positive factor for steel prices, if it at least partially materialised
According to the CISA, China’s crude steel consumption fell 1.5% YoY in 9mo23 to 731mnt, while production increased 1.7% YoY to 795mnt. Meanwhile, exports surged 32% YoY to 67mnt over the period
#steel
https://metals-wire.com:3000/sector/Steel
🔗China’s CISA predicts lower domestic steel supply in 4Q23, on the back of energy consumption regulations and measures to protect the environment. The CISA also noted soft domestic demand, as the local real estate sector remains subdued. Overall, the news underpins our view that Beijing might implement more steel production restrictions in late-2023 to keep national steel output no higher than the 2022 levels. On our numbers, to meet this requirement, steel supply for the rest of the year must be ~11% YoY lower, on average. That would be a positive factor for steel prices, if it at least partially materialised
According to the CISA, China’s crude steel consumption fell 1.5% YoY in 9mo23 to 731mnt, while production increased 1.7% YoY to 795mnt. Meanwhile, exports surged 32% YoY to 67mnt over the period
#steel
https://metals-wire.com:3000/sector/Steel
Morning Bites (part 1)
🏆Global physical gold demand declined 13% YoY to 1,225t in 3Q23, following the revised 4% YoY gain in 2Q23, per the World Gold Council (WGC) data. Meanwhile, total global gold demand was down 7% YoY (vs. the revised +8% YoY in 2Q23). Central bank purchases last quarter dropped 27% YoY, mostly due to the high base effect (still +14% YoY on the 9mo23 basis). At the same time, the demand for gold jewellery shrank 2% YoY in 3Q23 (vs. +3% YoY in 2Q23). In spite of there being some correction in physical gold demand, it was still up 2% YoY in 9mo23. Gold mine production grew ~2% YoY in 3Q23, vs. the 4% YoY growth in 2Q23. Overall, we keep our positive view on the precious metal's price, amid miners’ rising cash costs, strong demand from global central banks and the potentially lower US Fed funds rate in 1H24
#gold
https://metals-wire.com/sector/Gold
🏆Global physical gold demand declined 13% YoY to 1,225t in 3Q23, following the revised 4% YoY gain in 2Q23, per the World Gold Council (WGC) data. Meanwhile, total global gold demand was down 7% YoY (vs. the revised +8% YoY in 2Q23). Central bank purchases last quarter dropped 27% YoY, mostly due to the high base effect (still +14% YoY on the 9mo23 basis). At the same time, the demand for gold jewellery shrank 2% YoY in 3Q23 (vs. +3% YoY in 2Q23). In spite of there being some correction in physical gold demand, it was still up 2% YoY in 9mo23. Gold mine production grew ~2% YoY in 3Q23, vs. the 4% YoY growth in 2Q23. Overall, we keep our positive view on the precious metal's price, amid miners’ rising cash costs, strong demand from global central banks and the potentially lower US Fed funds rate in 1H24
#gold
https://metals-wire.com/sector/Gold
Morning Bites (part 2)
🇨🇱Chile’s copper production increased 4% YoY in September, after the 3% YoY growth in August, while remaining close to its historical lows. We remind readers that Chile's mining industry (~27% of world copper output) has been affected by a persistent drought and unfavourable structural effects (e.g. grade depletion). Hence, in our view, if the adverse factors in Chile’s mining sector persist, they might at least partially offset the supply additions from new Cu projects (e.g. QB2 and Udokan), which are set to launch in 2023
#copper
https://metals-wire.com:3000/sector/Copper
🇨🇱Chile’s copper production increased 4% YoY in September, after the 3% YoY growth in August, while remaining close to its historical lows. We remind readers that Chile's mining industry (~27% of world copper output) has been affected by a persistent drought and unfavourable structural effects (e.g. grade depletion). Hence, in our view, if the adverse factors in Chile’s mining sector persist, they might at least partially offset the supply additions from new Cu projects (e.g. QB2 and Udokan), which are set to launch in 2023
#copper
https://metals-wire.com:3000/sector/Copper