Commodities

Oil markets are stabilising at the highest level of the year – up 70% since January and more than 100% year-on-year – and are virtually the only bright spot on the commodities horizon at the moment.

There is one copper play Australian investors seem to have forgotten about – one which BHP and Newcrest are all over – and it could very well change the future global supply / demand equation for the red metal.

Investors last week renewed their love affair with copper after several months of indifference, with most other commodities – iron ore being the main exception – coming along for the ride.

For all those stubbornly optimistic investors, analysts and company executives still looking for a solid year for the huge (and usually hungry) Chinese steel industry – think again.

World copper prices were given a sharp boost on Wednesday after China’s September trade data revealed a rise in metal imports in the month – the first rise for five months.

In bad news for iron ore exporters the Chinese government has cut steel production to reduce smog in the region and to ensure the achievement of the country’s steel output reduction target.

China’s power blackouts, rationing and shortages across 20 or more provinces sparked a mad rush for fossil fuels as imports of coal surged and imports of LNG hit their highest level for 9 months.

Heavy rains and flooding saw more mines forced to shut down in China’s biggest coal-producing region over the weekend, sending prices to a record and hindering efforts by Beijing to boost energy supplies for winter.

A big week for oil and analysts believe there are more gains in store, even as inflation worries dominate global markets, rock bond yields and currencies and impact momentum across the board.

The startling growth of EVs and other renewable technologies during the pandemic has ignited a race for copper – existing mines and producing assets as well as greenfield discoveries.

Newmont has been forced to slash estimated 2021 gold production from its huge Boddington mine in WA by 17% after problems introducing its new autonomous truck fleet.

China’s continuing power shortage has forced the Xi Jinping government to blink and start unloading coal from Australia on ships held up by the country’s yearlong ban.

September proved once again to be the most miserable of months for investors, with little way of avoiding significant damage across most markets.

Maybe it’s true what they’ve been saying all along – Australia really is the “Lucky Country”. If what’s currently happening in our resource sector is anything to go by, it is hard to argue otherwise.

Gold fell to the lowest in six months on Wednesday and sliver slid to a year low as the US dollar continued to rise on expectations of a sooner than expected boost to key interest rates.

Two of the world’s major gold miners have agreed to merge in a deal that will create a global major heavily weighted to Canada but with a sprinkling of interests elsewhere, including Victoria.