London Metal Exchange (LME) warehouse nickel stocks have been shrinking since the end of last year as monthly averages plummeted from 66,600 tonnes in 2022 to 41,700 tonnes in the first nine months of 2023, having bottomed out at 37,000 this August.
In September, iron futures traded at $119.5 per tonne on the Singapore exchange, the highest level since late April, having gained 2% YTD and never falling below the psychological threshold of $100 per tonne.
Over recent weeks, the world has been watching as Woodside Energy Group and Chevron became embroiled in a labor standoff with workers at their LNG plants in Australia. The news that these facilities could temporarily go offline has triggered an immediate reaction from the market.
The Eurozone Manufacturing PMI marked a sixth consecutive decrease in July, plagued by an accelerated decline in production volumes and new orders. These negative trends have a bearing on the steel sector as well.
Now that the second round of joint gas purchases on the EU Energy Platform has come to an end, the bloc wants to make this mechanism a permanent feature. So it’s about time we explore how well it works.
Global refined copper output in January-April 2023 soared 8% YoY to nearly 9 million tonnes, while consumption rose only 3% to 8.6 million tonnes, leading to a 384,000-tonne surplus, compared with a 43,000-tonne deficit in the same period last year. As a result, the price of copper started to go down. Will this trend persist and what will happen to prices in the longer term?
Exchange-traded prices for gasoline in Russia have rallied in the last six months. While AI-92 fuel is just about to surpass the peak level observed in 2021, AI-95 has been breaking records for several straight months
China’s metals sector remains on tenterhooks. According to the CISA, almost half of major mills were loss-making in the first five months of the year, while the country’s leading steelmakers warn that the industry faces a challenging second half of the year amid insufficient end-user consumption and ongoing thin margins.
GDP in the euro area is down 0.1% for the second quarter on the trot. Industrial production is also trending down. The price of carbon permits in Europe plunged to the lowest level since mid-January 2023, beset by waning demand for electricity amid weaker industrial output.
After banning seaborne crude imports from Russia, the European Commission is now considering further restrictions on Russian supplies as part of a new package of sanctions, this time targeted at the Druzhba pipeline.
After skyrocketing to a record CNY 597,500 a tonne in 2002, the price of lithium carbonate in China continues to decline, from CNY 519,500 in January to CNY 165,500 in April this year, down around 68%.
While the nuclear option, which is perceived as one of the few viable solutions, has been on the discussion table for quite some time, Europeans are still divided on whether it is the right way forward.
Gold continues on its bullish run, with a troy ounce again climbing above $2,000, having landed at $2,022 in early April, up 10.2% from the level at the beginning of the year and just a smidgen below the record high seen in August 2020.
While the global economy is on tenterhooks amid fears over what the future might bring, the members of OPEC’s Joint Ministerial Monitoring Committee have reaffirmed their commitment to the Declaration of Cooperation, which extends to the end of 2023.
As the global market struggles to shrug off the effects of the nickel crisis, which broke out on the London Metal Exchange (LME) last March and is still sending shockwaves through the industry, more bad news has come to the fore.
Inflation across major global economies has been running rampant over recent years, fueled by the COVID-19 pandemic and the energy crunch, with central banks forced to tighten their monetary policy and raise interest rates in response.
The European Union last year suffered a setback on its way towards decarbonization and low carbon power generation. Amid stubbornly high fuel prices, consumers were leaning more on coal-fired power in a bid for energy security.
Over the past two decades, gas pricing in Europe has moved away from oil indexation towards hubs as the preferred price formation mechanism driven by supply and demand, with gas-on-gas pricing making up 77% of gas volumes in 2021.
Just a quick glance at the financial results of the five oil giants will be enough to realize that last year’s energy crisis, which is still reverberating across global markets, has been a bonanza for them.
Though in December growth in energy prices in Europe decelerated to 25.5% YoY, the lowest rate in 2022, local consumers remain under immense pressure and are scrambling for ways to cut their energy use.
While experts reflect on the effects of the existing restrictions on Russian crude, another EU embargo, accompanied by a price cap, is expected to come into force on 5 February. And one may only guess how this will affect market prices globally.
Will Russia cut its oil output? The imminent collapse awaited in 2022 never materialized. However, official estimates suggest that production will decline by 500,000-700,000 b/d in early 2023. And it’s hard to predict the reaction from global markets.
As we mentioned earlier this month, analysts did not anticipate a substantial rise in lithium-ion battery (LIB) prices in 2022, which were projected to grow only 2% YoY. However, more recent estimates suggest that growth may be higher than expected in June.
Market mechanisms are giving way to intergovernmental regulation. One of the examples is a price cap of $60 per barrel introduced this week by the G7 for Russian crude oil. In retaliation, Russia is planning to ban sales to countries applying this restriction.
In our previous Energodigest, we wrote about the IEA’s World Energy Outlook, which is now followed by the World Oil Outlook, a similar set of forecasts authored by OPEC. How these forecasts have changed over the past year?
The leaks discovered last week in two natural gas pipelines in the Baltic Sea have not only prompted major concern among climate activists, but have also brought renewed limelight on the ailing gas market.
Oil has lost 20% of its value since June, largely on fears of waning demand in response to global recession and further monetary tightening by many regulators, including the Fed with its ‘hawk’ rhetoric.
While at the beginning it seemed that supply disruptions would only last for a couple of months, it’s now becoming clear that the lack of gas will remain a pressing issue in the coming winter and it’s unlikely to be resolved until 2024.
Import substitution is the burning issue not only for Russia. Energy-dependent countries are now racing to find alternatives to Russian supplies, with some of them even restarting mothballed coal mines.