August 2024
Iron Ore & Steel
Rio Tinto, China firms keen on Guinea assets
Source: China Daily
Collaborating with Chinese companies to jointly develop Simandou, the high-grade iron ore deposit in Guinea, Africa, represents a unique opportunity amid increasing demand for higher-grade, lower-impurity iron ore as steelmakers seek to reduce carbon emissions worldwide, said a company executive. FULL STORY
Rising demand speeds up steel industry’s recast
Source: China Daily
Structural adjustment in China’s steel industry is accelerating to meet rising demand for steel from the automotive, shipbuilding and home appliance industries as well as emerging sectors like wind and solar power, said the China Iron and Steel Association recently. FULL STORY
China’s steel industry speeds up optimization of steel variety structure
Source: China Daily
China’s steel industry has been accelerating the optimization of steel variety structure in pace with the adjustment and optimization of national industrial structures, the China Iron and Steel Industry Association (CISA) said Wednesday. FULL STORY
Fading China optimism hits iron ore prices, but not yet volumes: Russel
Source: Zawya
China’s iron or futures suffered their worst one-day price drop for almost two years on Monday, but the evaporating optimism in the market has yet to show up in imports of the key raw material for making steel. FULL STORY
Global steel prices to trend lower on uncertain China demand recovery, study say
Source: Zawya
Global average steel prices are likely to trend downwards as China’s domestic demand is expected to soften owing to a sluggish property sector, a report by Fitch Solutions unit BMI said on Thursday. The research firm lowered its 2024 global average steel price forecast to $660/ton from $700/ton. FULL STORY
Dalian iron ore tumbles to one-year low on China demand worrie
Source: Shipping Herald
Dalian iron ore futures fell for the fifth straight session on Thursday to hit their lowest in more than a year, as a batch of weak Chinese economic data darkened prospects of demand from the world’s top consumer of the steel ingredient. FULL STORY
Liberia conditionally lifts shutdown order on China Union iron ore Bong Mine
Source: Market Screener
Liberia conditionally lifted a shutdown order on China Union’s iron ore Bong Mines, the government said in a statement on Wednesday. FULL STORY
China’s bulging commodity stockpiles show depth of economic woe
Source: Minning
Inventories of key raw materials are piling up in China, evidence that economic activity remains too feeble to clear a surplus that’s crushing prices from steel to soybeans. FULL STORY
World’s biggest steel producer warns of ‘severe’ industry crisis
Source: Mining
The world’s biggest steel producer sounded the alarm about an industry crisis in China that carries the potential to ripple around the globe and plunge the sector into a deeper downturn. Conditions in China’s steel sector are like a “harsh winter” that will be “longer, colder and more difficult to endure than we expected,” China Baowu Steel Group Corp. chairman Hu Wangming told staff at the company’s half-year meeting, warning of a worse challenge than major traumas in 2008 and 2015. FULL STORY
Outlook darkens for China’s already weak steel output: Russell
Source: Zawya
China’s steel output slumped in July and is likely to continue to fall in coming months as mills struggle for profits amid sluggish demand and look to comply with government guidance that ensures annual production shows no growth. FULL STORY
China’s steel export downtrend persists in July; traders wary of shrinking overseas deman
Source: SP Global
China’s finished steel exports in July were down month-on-month for the second straight month to 7.827 million mt, reaching the second lowest level so far in 2024, although they were still up 7.1% on the year, customs data showed Aug. 7. FULL STORY
Coal
China’s coal-rich province sees 14.7% foreign trade growth in Jan-July
Source: China Daily
The total imports and exports of goods in North China’s coal-rich Shanxi province grew 14.7 percent year-on-year to 101.2 billion yuan (about $14.2 billion) in the first seven months of 2024, official data showed Saturday. FULL STORY
Coal businesses see record high in social responsibility
Source: China Daily
A record high of 73 coal enterprises released their social responsibility reports at the “coal industry corporate social responsibility report launch” event this year in Beijing on Thursday, organized by the China National Coal Association. FULL STORY
Column: China’s coal output rises as share of electricity slips
Source: Mining
China’s production of coal is rising while its share of electricity generation is declining, a seeming contradiction that will likely result in lower imports volumes and cheaper prices. FULL STORY
China’s 2024 coal imports to reach new record high, industry group says
Source: Mining
A key Chinese coal industry group said on Wednesday it expects coal imports this year to reach at least 500 million metric tons, exceeding previous record highs and forecasts by market participants. FULL STORY
China’s July coal output up 3.8% y/y
Source: Brecorder
China’s coal output rose 2.8% year-on-year in July as mines ramped up production to ensure steady supply during the month’s record-breaking heat, statistics bureau data showed on Thursday. FULL STORY
China’s July coal imports rise to seven-month high
Source: Mining Weekly
China’s coal imports rose to a seven-month high in July, General Administration of Customs data showed on Wednesday, as traders took contracted cargoes to coincide with China’s peak power demand season, when hot weather drives up air conditioning use. FULL STORY
China accelerates coal mining to ensure winter power supply: Kemp
Source: Zawya
Coal-fired generation remains critical to ensuring the reliability of electricity supplies – especially in the winter, when hydro and solar output is much lower and the system depends far more heavily on fossil energy. FULL STORY
Soybean
Grain productivity remains strong despite rain disruption
Source: China Daily
Early rice production in China experienced a slight decline due to heavy rainfall, yet it has consistently exceeded 28 million metric tons for the fourth consecutive year, demonstrating overall stability, according to data released by the National Bureau of Statistics, or NBS, on Friday. FULL STORY
China’s palm oil imports will exceed one million tons from August to October
Source: Ukr Agro Consult
Imports of palm oil in China from August to October will exceed 1 million 80 thousand tons, according to China’s national grain and oil information center. The volume of purchases is due to the increase in profits from palm oil imports recently, against this background enterprises are increasing their purchases in foreign markets. Monitoring of ship schedules shows that the expected palm oil arrivals at Chinese ports from August to October will be 300,000 tons, 360,000 tons and 420,000 tons, respectively. FULL STORY
China Proposes New Curbs on Grain Imports to Boost Local Prices
Source: Ukr Agro
Consult China is asking domestic traders to buy less foreign grains as ample supplies and weaker-than-expected demand weigh on prices and threaten its longstanding policy to support local growers. FULL STORY
China continues large-scale intercropping of corn and soybeans
Source: Tridge
Dingxi County in Gansu Province, China, is promoting the co-planting of soybeans and corn, with the goal of boosting grain production and reducing emissions. The county has adopted a soybean-corn strip planting model, which has shown to increase yield and profit. The province has also introduced a comprehensive plan to boost grain production, including the recommendation of 110 excellent varieties, development of ways to improve yields, and financial support for grain production. The county plans to continue promoting co-planting and optimizing models based on various factors. FULL STORY
According to COFCO, Brazil’s soybean area will grow at the slowest rate in a decade in 2024/25
Source: Ukr Agro Consult
China’s COFCO International expects area under soybeans in Brazil in 2024/25 to grow at the slowest pace in a decade compared with the previous season, a top company executive told Reuters. FULL STORY
China to lift restrictions on Kazakh grain imports to bonded zone
Source: Ukr Agro Consult
The agitated situation, which was formed on the background of information about the introduction of severe restrictions on grain imports by China, is beginning to be clarified. For a long time market participants were waiting for official confirmation of the ban from China, but it was not forthcoming. As we learned, the competent authorities of China have revealed internal violations among their companies. As soon as the order is put in order, duty-free grain supplies to the bonded zone of China will resume, reports the agency “APK News”. FULL STORY
China makes new soybean purchases from the US and Brazil, marking another week of good demand news
Source: Tridge
The USDA reported strong sales of soybeans and meal, with 132 thousand tons to China and 100 thousand tons to Colombia from the 2024/25 harvest. This comes as good news for the North American soybean market, which has seen a surge in demand, with China purchasing 23 ships of soybeans this week alone. However, the increased demand has also driven up prices, leading some buyers to seek cheaper options in Brazil. In Brazil, farmers have been selling a significant amount of new crop soybeans, with prices ranging from R$106.00 in Mato Grosso to R$115.00 in Goiás. FULL STORY
China’s road to Agricultural Self-sufficiency; reshaping markets and creating opportunities
Source: Hellenic Shipping News
China, a major demand center and driver of global agricultural markets, is actively pursuing an ambitious goal of achieving self-sufficiency in agriculture, but not without disrupting markets. FULL STORY
China’s corn imports from US set to rise 67.6% in 2024-25 on higher Brazilian prices
Source: SP Global
China is expected to increase its corn imports from the US by 67.6% year on year in marketing year 2024-25, while reducing supplies from Brazil by 48.8% compared with the previous year, according to the latest forecast from analysts at S&P Global Commodity Insights. FULL STORY
China’s wheat imports from Russia have increased almost eightfold in 7 months
Source: Grain Protrade
China has imports of Wheat and Barley from Russia increased significantly from January to July 2024 compared to the same period in 2023. At the same time, purchases of Corn has declined sharply, reports Interfax. FULL STORY
China’s soybean processing volume will reach 9 million tons in August
Source: Tridge
China’s National Grain and Oil Information Center reported that soybean stocks at domestic oil mills have increased, exceeding 7 million tons by the end of July. The country’s ports are expected to receive large quantities of imported soybeans in the coming months, with 8 million tons expected to arrive in August and 7.6 million tons in September. Soybean processing is projected to be around 9 million tons monthly. However, soybean oil mill output increased in August, while soybean meal supply remained weak, putting pressure on market growth. The country also reported record soybean meal stocks, with 1.38 million tons, up 29% from the previous month and 86.5% from the same period last year. FULL STORY
China triples US soybean imports in July, customs data shows
Source: Tridge
In July, China’s imports of U.S. soybeans surged to 475,392 tonnes, tripling from the previous year as the U.S. growing season resumed. Despite this increase, Brazilian soybeans continue to dominate the market, with imports slightly decreasing to 9.12 million tonnes. From January to July, China imported 43.55 million tonnes of Brazilian soybeans, a 12% rise from last year, while U.S. imports dropped by 25% to 12.63 million tonnes. Lower global prices have spurred increased purchases by China’s crushers, even amid weak demand for animal feed. The U.S. Department of Agriculture has projected a record 4.589 billion bushels for the 2024/25 soybean crop. FULL STORY
China grains output faces drought threat that may stoke imports
Source: AJOT
Drought is threatening China’s grains output, which may force it to re-enter the global market after staying away from major purchases in recent months due to oversupply and sluggish consumption. Wheat and corn production in the new season is forecast to fall, as drought in parts of northern China — a key grains hub — has reduced crop yields and delayed planting, according to BOABC, a Beijing-based agriculture consultancy. FULL STORY
Energy
China Merchants orders 10 tankers at DSIC
Source: Shipping Herald
China Merchants Energy Shipping (CMES) officially announced a major step forward in its fleet expansion and sustainability efforts. Through its fully-owned subsidiary, Associated Maritime Co Ltd (AMCL), CMES signed contracts with Dalian Shipbuilding Industry Co., Ltd. for the construction of 10 next-generation energy-efficient oil tankers. This investment, totaling approximately RMB 6.638 billion, reflects CMES’ continued commitment to environmental responsibility and global competitiveness. FULL STORY
Passed the peak? China’s crude oil imports trend down: Russell
Source: Zawya
The world’s biggest oil importer brought in record volumes last year, a feat that seems unlikely to be repeated in 2024 given the decline in arrivals in the first seven months. FULL STORY
Chinese company secures major Brazilian oil contract
Source: China Daily
China National Offshore Oil Corporation announced on Tuesday that it had successfully secured a long-term contract for the trade of 12 million barrels of crude oil from the Mero oilfield, the third largest pre-salt ultra-deepwater oil field in the world. FULL STORY
China shortlists first set of 33 projects under domestic voluntary carbon market
Source: SP Global
Shortlisted projects translate into 9.67 MMt CO2e of annual CCER supply. Majority of CCERs from offshore wind projects with 10-year crediting periods. Double-counting issue with renewable energy certificates needs resolution. FULL STORY
CHINA DATA: July crude imports from Russia lowest since Dec 2022 at 1.76 mil b/d
Source: SP Global
Russian supplies 248,000 b/d more than Saudi Arabia in July. Jan-July Russian shipments up 2.7% at 2.15 mil b/d. Canadian crude up 20% on month as PetroChina, Sinopec take AWB. FULL STORY
South Korean refiners wary of China’s oil product export quota usage amid fragile margins
Source: SP Global
South Korean refiners are generally content with a slight improvement in refining margin so far in the third quarter but China’s ample clean oil product export quotas and tepid regional economic activity pose a serious threat to the overall cracks and export margins, industry sources said Aug. 13-16. FULL STORY
Oil demand seeing ‘major deceleration’ led by China: IEA
Source: SP Global
The world is seeing a major deceleration in oil demand growth led by China, with inventories set to rise next year even if OPEC+ were to postpone its plans to ease output cuts, the International Energy Agency said Aug. 13. FULL STORY
CHINA DATA: July crude oil imports drop to 10.01 mil b/d, lowest since Sep 2022
Source: SP Global
China’s crude oil imports dropped to 10.01 million b/d (42.34 million mt) in July, the lowest since 9.83 million b/d in September 2022, data from the General Administration of Customs showed Aug. 7, pointing to weak demand from the world’s second biggest economy. FULL STORY
China, South Korea are top destinations for US LNG in July as Europe’s market share drops
Source: SP Global
China and South Korea were the top destinations for US LNG delivered in July, as flows of American volumes to Europe dropped to their lowest level since September 2021, an S&P Global Commodity Insights analysis showed Aug. 2. FULL STORY
Chinese firm inks MoU on building modern oil refinery in South Sudan
Source: Xin Hua
Chinese firm Shengli Oilfield Keer Engineering and Construction Company (SOKEC) on Friday signed an agreement with South Sudan’s state-owned Nile Petroleum Corporation (NILEPET) to construct modern oil refinery and storage facilities in South Sudan. FULL STORY