Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Aus coal exports: looking at pricing
into China
Latest news
Base metals were mostly weaker as news of rising interest rates in China and
poor European economic data weighed on prices. US industrial production
was the one brighter part of the picture, with IP rising 0.9% MoM and 3.7%
YoY.
The People’s Bank of China (PBoC) raised interest rates on one-year bills
auctioned on Tuesday from 3.5% to 3.58%. While the increase is not
substantial, it is significant, because it suggests the PBoC has not yet finished
raising deposit interest rates, which have typically followed changes in rates
on one-year bills. Nonetheless, this does not affect our view on the outlook for
China’s economic growth, which depends more on the availability than the
price of credit (real interest rates are still negative). And although this is tight,
it has not been further tightened.
China’s electricity consumption increased by 12% YoY in July, fully in line with
the year-on-year rate for the first seven months of this year as a whole. The
data suggest growth in industrial production remains solid.
Spot treatment and refining charges (TC/RCs) for copper concentrates sold into
China continue to decline, signalling a tighter balance in the market. Latest
TC/RCs are quoted at mid-US$60s/dmt and mid-6s ¢/lb CIF, which marks a
fall of ~15% from a month ago, and some business has been reported as low as
US$50/dmt and 5¢/lb for certain qualities.
There has been a flurry of activity in the New South Wales rail infrastructure
space over the past few days. Whitehaven coal has entered into a ten-year
contract with state-owned ARTC for access between its Gunnedah Basin coal
mines and Newcastle port, in order to service planned expansion from current
5mtpa sales levels. Also, Platts reported that Aston Resources has secured
5mpta of rail haulage for its 10mtpa Maules Creek project in the state, starting
from 2Q13.
Arrivals of iron ore laden vessels into Chinese ports is accelerating, with
Steelease reporting a total of 12.55mt of ore due to arrive in the August 7–21
period, 15% higher than in the August 1–15 period. This reflects the increase
in deliveries destined for China through June–July from key exporters. This is
leading to an increasing freight backlog outside Chinese ports, with 47
Capesize and 47 Panamax vessels currently waiting to deliver. Equating to
11.3mt of capacity, this is the highest level of port congestion since early-
February. One area where iron ore supply continues to fall is India, with only
19 ships departing between August 1-15, equivalent to 742kt of ore. If this
rate was maintained for the month, it would be the lowest Indian export
volume in recent history, something which is helping to keep spot market
fundamentals extremely tight.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Aus coal exports: looking at pricing
into China
Latest news
Base metals were mostly weaker as news of rising interest rates in China and
poor European economic data weighed on prices. US industrial production
was the one brighter part of the picture, with IP rising 0.9% MoM and 3.7%
YoY.
The People’s Bank of China (PBoC) raised interest rates on one-year bills
auctioned on Tuesday from 3.5% to 3.58%. While the increase is not
substantial, it is significant, because it suggests the PBoC has not yet finished
raising deposit interest rates, which have typically followed changes in rates
on one-year bills. Nonetheless, this does not affect our view on the outlook for
China’s economic growth, which depends more on the availability than the
price of credit (real interest rates are still negative). And although this is tight,
it has not been further tightened.
China’s electricity consumption increased by 12% YoY in July, fully in line with
the year-on-year rate for the first seven months of this year as a whole. The
data suggest growth in industrial production remains solid.
Spot treatment and refining charges (TC/RCs) for copper concentrates sold into
China continue to decline, signalling a tighter balance in the market. Latest
TC/RCs are quoted at mid-US$60s/dmt and mid-6s ¢/lb CIF, which marks a
fall of ~15% from a month ago, and some business has been reported as low as
US$50/dmt and 5¢/lb for certain qualities.
There has been a flurry of activity in the New South Wales rail infrastructure
space over the past few days. Whitehaven coal has entered into a ten-year
contract with state-owned ARTC for access between its Gunnedah Basin coal
mines and Newcastle port, in order to service planned expansion from current
5mtpa sales levels. Also, Platts reported that Aston Resources has secured
5mpta of rail haulage for its 10mtpa Maules Creek project in the state, starting
from 2Q13.
Arrivals of iron ore laden vessels into Chinese ports is accelerating, with
Steelease reporting a total of 12.55mt of ore due to arrive in the August 7–21
period, 15% higher than in the August 1–15 period. This reflects the increase
in deliveries destined for China through June–July from key exporters. This is
leading to an increasing freight backlog outside Chinese ports, with 47
Capesize and 47 Panamax vessels currently waiting to deliver. Equating to
11.3mt of capacity, this is the highest level of port congestion since early-
February. One area where iron ore supply continues to fall is India, with only
19 ships departing between August 1-15, equivalent to 742kt of ore. If this
rate was maintained for the month, it would be the lowest Indian export
volume in recent history, something which is helping to keep spot market
fundamentals extremely tight.
No comments:
Post a Comment