May 2023
Iron Ore & Steel
Iron ore holds ground on renewed China demand optimism
Source: Hellenic shipping news
Benchmark iron ore futures held their ground on Wednesday, supported by renewed optimism around demand prospects in top steel producer China, while other steelmaking ingredients including coking coal slumped after a two-day advance. Iron ore’s most-active June contract on the Singapore Exchange was up 1.6% at $103.65 a tonne, as of 0330 GMT, having hit $105.15 earlier in the session.On China’s Dalian Commodity Exchange, iron ore’s most-traded September contract ended morning trade 0.1% lower at 721 yuan ($104.31)a tonne. It earlier touched 733 yuan, its strongest since April 24. Support for iron ore remained largely intact, with steel industry consultancy and data provider Mysteel reporting that six mills in North China’s Shanxi province will gradually resume production in the coming two weeks amid improved margins, thanks to lower production costs. FULL STORY
Iron ore price rises on renewed hopes of China demand recovery
Source: Mining
The iron ore price rose on Wednesday, supported by renewed optimism around demand prospects in China. Benchmark 62% Fe fines imported into Northern China rose 1.36%, to $106.94 per tonne.On China’s Dalian Commodity Exchange, iron ore’s most-traded September contract ended daytime trade 0.3% higher at 724 yuan ($104.74) a tonne. It earlier touched 733 yuan, its strongest since April 24. Mysteel reported that six steel mills in North China’s Shanxi province will gradually resume production in the coming two weeks amid improved margins, thanks to lower production costs. FULL STORY.
China ‘s 2023 iron ore imports seen unchanged as demand falters
Source: Hellenic shipping news
China is likely to import a similar amount of iron ore this year as it did in 2022, with demand in the world’s biggest steel producer failing to show signs of recovery, according to participants at an industry conference. Iron ore imports over January-April jumped more than 8% as mills boosted purchases in anticipation of higher demand after China abandoned its pandemic restrictions. However, a lack of growth in the property sector, the top consumer, is likely to take a toll on purchases, miners and traders said on Wednesday. FULL STORY
China ‘s green iron ore masterplan-how will it work?
Source: Fastmarkets
China has unveiled plans for achieving peak carbon emissions in the iron ore mining industry before 2030, with the state-backed Metallurgical Mines’ Association of China (MMAC) announcing green iron ore production guidelines on Friday April 7. This is the first time the MMAC has published guidelines for green iron ore mines and production after the country set targets for carbon peak and carbon neutrality in 2030 and 2060. More details are expected to be released in the coming months. The impact from the new guidelines is likely to be minimal in the short term because output from these iron ore projects is limited, and production costs will be higher than the other miners. FULL STORY.
China steel prices hit three-year low on demand woes
Source: GMK center
In 2023, China will see slower growth in steel demand compared to the previous year. Bayi Steel, a subsidiary of Baowu in Xinjiang, which is listed on the stock exchange gives such a forecast, reports. Answering investors’ questions, the company noted that demand in the second quarter of 2023 will be better than in the previous quarter. In addition, Bayi Steel expects that there will be more development opportunities for local enterprises in Xinjiang, as the region will become a hub between the economically developed regions of China and Central Asia. FULL STORY
China steel demand to grow slowly in 2023
Source: Reuters
Steel rebar prices in China hit their lowest in three years this week, underscoring flagging growth in the world’s second-largest economy, particularly in its weak property sector. The spot price of HRB400 20mm steel rebar – used to reinforce concrete for buildings and infrastructure – fell to 3,510 yuan ($507.80) per tonne in Shanghai on Thursday, data from consultancy Mysteel showed. That’s the lowest since April 2020, when the start of the COVID-19 pandemic in China had curbed most industrial activity. FULL STORY
Coal
China’s manufacturing wobble may drive coal use even higher
Source: Reuters
China is already on track to emit the most coal-fired power emissions in history in 2023, but may now push coal use up another gear after the manufacturing sector unexpectedly contracted in April following a strong start to the year. The softer manufacturing data is expected to trigger fresh stimulus measures designed to spur increased industrial output, as well as steps to help the country’s ailing property sector, which will lead to greater energy use throughout the world’s largest manufacturer, exporter and polluter. FULL STORY
China halts 50 million tons of coal output after deadly accident
Source: Bloomberg
China halted operations at 32 coal production locations in Inner Mongolia after a deadly accident in February triggered nationwide safety checks.The affected operations were open pits with steep slopes on the edge of mining areas. That poses safety risks similar to the fatal accident, in which a landslide left 53 people dead or missing, industry publication Thermal Coal Group reported, citing National Mine Safety Administration. FULL STORY
China increased coking coal imports by 87.9% y/y in January-April
Source: GMK center
In January-April 2023, China increased the import of coking coal by 87.9% compared to the same period in 2022 – up to 30.99 million tons. The average purchase price of raw material was $198.6/t, which is 29.5% exceeds the prices of January-April 2022. The main suppliers of raw materials for four months are Mongolia, Russia, Canada and America. Australia ranked sixth with a market share of 1.7%. In April 2023, deliveries of imported coking coal to China amounted to 8.39 million tons, which is 11.7% less compared to March 2023, but 97% more compared to April last year. In March, the import indicator reached a three-year high, but in April the results could not be maintained. The average deal price decreased by 2% compared to March, and fell by 29% by April 2022 – to $198/t. FULL STORY
Australia’s comeback as supplier to China uncertain as both find new trade partners
Source: S&P Global
China’s return to buying Australian metallurgical coal since January is not expected to open the floodgates for higher volumes in 2023, indicating a major rejig in met coal trade flow in Asia is not yet imminent. Unfavorable price spreads, weak Chinese demand due to flagging steel markets and alternative suppliers making big inroads into the China market were likely to keep Australian coal purchases limited, industry sources said. China has resumed importing met coal from Australia after a hiatus of over two years, with the first shipment reaching Chinese shores in February. FULL STORY
Soybean
China’s Soybean Imports From Brazil Exceed Those From US in April
Source: Yicai Global
China’s imports of soybeans from Brazil surpassed shipments from the United States last month for seasonal reasons.China imported USD3.4 billion of soybeans from Brazil in April, versus USD1.2 billion from the US, according to data from the General Administration of Customs. In the first three months of the year, the US was China’s largest source of the legumes. FULL STORY
China’s market supply of soybeans is stable, as nation continues to diversify import sources
Source: Global Times
China’s soybean supply remains stable on the market, as domestic output is steadily increasing, coupled with sufficient imports from abroad, Lu Jingbo, deputy head of the National Food and Strategic Reserves Administration, said at a press briefing on Thursday in Beijing. China will continue to stabilize soybean imports and strengthen international cooperation to ensure domestic market supply, Lu said, noting that the authorities will promote diversification of soybean import by exploring more soybean import sources. FULL STORY
Soybean Futures Fall on China Demand Questions — Daily Grain Highlights
Source: MarketScreener
Swing and a Miss: Grain futures slid in reaction to economic data out of China missing the expectations of analysts – with China’s industrial production for April rising by 5.6% year-on-year, compared to expectations of over 10%. Other misses reported for April had analysts questioning China’s demand. U.S. farmers have been able to continue their quickened pace for spring planting, according to the USDA’s Crop Progress report released late yesterday, showing U.S. corn is 65% planted, while soybeans are 49% planted and spring wheat is 40% planted. FULL STORY
China to stabilize soybean imports, diversify sources – state official
Source: Financial Post
China will stabilize and diversify its soybean imports, an official with the state’s grain reserve bureau said on Thursday, as the country continues to promote higher domestic production of the crop. The world’s top soybean buyer significantly raised output of soybeans to 20 million tonnes last year, leaving a surplus of about 5 million tonnes after consumption, Lu Jingbo, deputy director at the National Food and Strategic Reserves Administration, told a press conference. FULL STORY
China’s market supply of soybeans is stable, as nation continues to diversify import sources
Source: Global Times
China’s soybean supply remains stable on the market, as domestic output is steadily increasing, coupled with sufficient imports from abroad, Lu Jingbo, deputy head of the National Food and Strategic Reserves Administration, said at a press briefing on Thursday in Beijing. China will continue to stabilize soybean imports and strengthen international cooperation to ensure domestic market supply, Lu said, noting that the authorities will promote diversification of soybean import by exploring more soybean import sources. FULL STORY
China’s soybean imports from Brazil fall further in April
Source: Reuters
China’s soybean imports from Brazil fell 16% in April compared with the same month a year ago, data showed on Saturday, keeping supplies from the South American nation well behind last year’s level after delays to its harvest. The world’s top buyer of soybeans imported 5.3 million tonnes of the oilseed from Brazil, its largest supplier, versus 6.3 million tonnes a year earlier, General Administration of Customs data showed. FULL STORY
China steps up sampling of soy cargoes, adding to costly delays, traders say
Source: Reuters
China is significantly increasing the rate of inspections on imported soybean cargoes, three soybean traders told Reuters on Friday, lengthening already slow and costly clearing times in the world’s top buyer of beans. China last month introduced new procedures at customs for discharging soybeans, which had already delayed clearing times and pushed up costs for buyers of the world’s most-traded protein source. FULL STORY
Imports of Brazilian soybeans by China registered a new drop in April
Source: TRIDGE
China’s soybean imports from Brazil fell 16% in April compared with the same month a year earlier, data showed on Saturday, keeping supplies from the South American country well below last year’s level after harvest delays. The world’s biggest buyer of soy imported 5.3 million tons of the oilseed from Brazil, its main supplier, against 6.3 million tons in the previous year, according to data from the General Administration of Customs. FULL STORY
CFR China soybeans basis back in positive; downside risks remain on stricter custom inspection
Source: S&P Global
Chinese soybeans basis to Chicago Board of Trade futures climbed back to positive territory May 11, rising 90 cents/bu over the last two weeks; however, downside risks remain due to tighter customs checks on imported soybeans in China, market sources said. Platts assessed soybean CFR China M1 basis at plus 30 cents/bu over July (N) contract on the Chicago Board of Trade May 10, having slumped to its lowest at minus 61 cents/bu on April 20, S&P Global Commodity Insights data showed. Platts-assessed soybean CFR China M1 stood at $528.01/mt May 10, up 2.5% week on week. FULL STORY
Energy
China’s natural gas output up 7% in April
Source: Chinadaily
China’s natural gas output registered faster growth in April, data from the National Bureau of Statistics showed. The country produced 18.9 billion cubic meters of natural gas in the period, up 7 percent from a year earlier, according to the bureau. The growth rate was 3 percentage points higher than that of March. FULL STORY
China’s yearly natgas use logs first decline in over three decades – EIA
Source: MarketScreener
China’s natural gas consumption and LNG imports dropped in 2022 as a result of lower economic growth and higher gas prices, marking the first annual decline in consumption since 1990, the U.S. Energy Information Administration (EIA) said on Thursday. Natural gas consumption edged 1% lower (0.4 billion cubic feet per day) over the previous year, according to data from S&P Global Commodity Insights. FULL STORY
China’s first yuan-settled LNG trade unloaded from UAE
Source: Chinadaily
The unloading of China’s first cross-border yuan-settled liquefied natural gas trade was successfully completed on Tuesday, operator China National Offshore Oil Corporation said. The company said its LNG carrier Marweh, carrying some 65,000 tons of LNG from the United Arab Emirates, finished unloading at the CNOOC Guangdong Dapeng LNG receiving station on Tuesday, marking a substantial step forward in China’s exploration of cross-border yuan settlement transactions in oil and gas. FULL STORY
China State Shipbuilding lands big LNG tanker order from Qatar Energy
Source: Chinadaily
Four LNG tankers, each able to hold 174,000 cubic meters of liquefied natural gas, will be constructed by China State Shipbuilding Corp’s Hudong-Zhonghua Shipbuilding (Group) Co Ltd, CSSC and Qatar Energy jointly announced on Tuesday. The shipbuilding contracts clinched by CSSC are credited to Hudong-Zhonghua Shipbuilding’s advanced design concept, excellent shipbuilding capability and complete service system in competing with global peers, and this is also regarded as recognition of China’s shipbuilding manufacturing prowess, experts said. FULL STORY
China’s natural gas output tops 188b cubic meters in 2020
Source: Chinadaily
China produced 188.8 billion cubic meters of natural gas in 2020, representing a growth of 9.8 percent year-on-year, data from the National Bureau of Statistics (NBS) showed. China has seen its annual natural gas output increase by more than 10 billion cubic meters for four consecutive years, according to the NBS. FULL STORY
China begins drilling of ultra-deep oil well in Tarim Basin
Source: Chinadaily
China started drilling its first scientific exploration well with a depth of more than 10,000 meters in Northwest China’s Xinjiang Uygur autonomous region on Tuesday, operator China National Petroleum Corporation said. In general, a well between 4,500 and 6,000 meters deep is defined as a deep well, while those between 6,000 and 9,000 meters are super-deep wells. Those that are more than 9,000 meters are ultra-deep wells. FULL STORY
China National Offshore Oil reaches historical high
Source: Chinadaily
Oil and gas production of China National Offshore Oil Corp reached a historical high last year and has further ensured domestic energy security, the company said on Thursday during a press conference in Beijing. Oil and gas production reached 120 million tons of oil equivalent last year, with domestic crude oil and natural gas production up by 3.39 million tons and 2.7 billion cubic meters year-on-year, respectively. The increase in crude oil production accounted for over 60 percent of the country’s total increase, it said. FULL STORY
China Drives Rebound In Global Oil Demand, But There’s A Catch
Source: Oil Price
Last week saw several worrying signs about China’s post-COVID-19 economic recovery. The IEA expects global oil demand to increase faster than expected this year to reach 102 million barrels per day. The IEA does not stress that the current economic rebound in China may not be like any other that has gone before. For many years now, the state of China’s economy has been one of the most important determinants of the oil price. The vast disparity between China’s oil needs to power its economy on the one hand, and its lack of oil reserves on the other, meant that it almost single-handedly created and sustained the commodities ‘supercycle’ seen over various extended periods from the early 1990s. FULL STORY
Oil Takes a Surprise Tumble. Blame Soft Demand in China.
Source: Barron’s
After the Organization of the Petroleum Exporting Countries and its allies said in early April that members would cut more than one million barrels per day of oil production, the path of prices looked clear. International oil prices fell 9% in just three days this past week, trading down to $72.33 per barrel, the lowest level since December 2021. The price of West Texas Intermediate, the U.S. benchmark, fell below $70 for the first time since March, erasing all of the gains it had made since OPEC’s announcement, and then some. FULL STORY
Huge Volumes Of Crude Oil Are Headed To China
Source: Oil Price
There were as many as 125 supertankers heading to China at the end of April, the largest volume of oil China has imported in more than two years. The supertankers have the capacity to ship 250 million barrels of oil, suggesting China’s imports are climbing after a decline in April. Weaker-than-expected economic data from China has weighed on oil prices this weak, but the country’s oil demand appears to be healthy. As many as 125 supertankers were traveling to China at the end of April, carrying the biggest volumes of oil to the world’s top crude buyer in more than two years, according to tanker-tracking data compiled by Bloomberg. FULL STORY