Tag: China

Asia oil buyers turn to U.S. in hunt for cheap supply

SINGAPORE/NEW YORK (Reuters) by Florence Tan & Catherine Ngai – Asia is set to ramp up crude oil imports from the United States in late 2017 and early next year, with buyers searching out cheap supplies after hurricanes hit U.S. demand for the commodity at a time of rising production in the country. As many as 11 tankers, partly or fully laden with U.S. crude, are due to arrive in Asia in November, with another 12 to load oil in the United States later in October and November before sailing for Asia, according to shipping sources and data on Thomson Reuters... continue reading

OECD oil stocks set for ‘substantial’ 2017 draw, but may rise in 2018: IEA

SINGAPORE (Reuters) – Forecasts for U.S. shale oil growth and uncertainty around China’s crude imports may see oil stocks building again next year after OPEC and non-OPEC cuts contributed to “substantial” draws this year, the International Energy Agency (IEA) said. “Assuming OPEC production remains constant, we don’t really see a big draw in OECD (Organization for Economic Cooperation and Development) crude inventories over the next 6-9 months,” Olivier Lejeune, IEA oil storage market analyst, said on Friday. “Our balances imply a build for 2018,” Lejeune added, again assuming constant OPEC production. A key reason for slowing stock draws next year... continue reading

Robust Chinese demand ensures Asian LNG rally has legs

LONDON/SINGAPORE (Reuters) by Oleg Vukmanovic & Henning Gloystein Unexpectedly strong demand from China, along with rising oil and coal prices, should keep Asian liquefied natural gas (LNG) spot levels buoyant this winter. Despite rising supplies from new plants, spot prices have risen by 55 percent from their 2017 lows to $8.40 per million British thermal units (mmBtu) as Asian buyers also refilled summer stocks. With the peak demand October-March winter gas season almost underway, further price gains are expected. Nuclear outages in Taiwan and rising demand from Thailand, as well as new buyers like Pakistan, are absorbing oversupply of LNG... continue reading

Chinese Economy Has ‘Darker Story’ Ahead, China Beige Book Says

BLOOMBERG NEWS – The world’s second-largest economy keeps on delivering positive surprises this year, such as a leap in industrial profits last month. That isn’t stopping worries gathering that 2018 won’t be as bright for China.  Industrial profits increased 24 percent in August from a year earlier, the most in four years, compared with the 16.5 percent pace a month earlier, the statistics bureau said Wednesday. A satellite-image gauge of manufacturing facilities showed activity was the strongest in six months, and sentiment in the steel industry is at a 12-month high. International investors are also more bullish on the Chinese... continue reading

Stormy weather exposes shortcomings of world’s oil refineries

by Libby George, Ron Bousso BRUSSELS/LONDON (Reuters) – Hurricane Harvey’s crippling impact on U.S. oil refinery operations this month and the challenge buyers faced in filling the gap in gasoline supplies has exposed a shortage of spare refining capacity around the globe. Nearly a quarter of U.S. refining capacity was knocked out by the storm this month, driving U.S. gasoline prices to two-year highs above $2 a gallon. Many plants are still struggling to resume normal operations, prompting other refineries around the world to crank up output to fill the gap. Global refining is considered to be running at its... continue reading

The graphite fix: Inside China’s newest commodity addiction

Manolo Serapio Jr, Tom Daly MANILA/BEIJING (Reuters) – China’s aggressive environmental protection campaign has tightened supplies of graphite electrodes used in steelmaking, boosting the fortunes of big producers like Fangda Carbon as mills search far and wide for a material now in short supply. Beijing’s campaign for clearer skies has closed thousands of mills and mines producing low-quality steel and coal, and makers of electrodes, particularly those near big cities, have not been spared. Graphite electrodes are used to melt scrap in electric arc furnaces to produce new steel. Their main ingredient is high-value needle coke – named because of its... continue reading

Glencore sale of Rosneft stake earns rivals’ respect, bankers’ relief

LONDON (Reuters) – Glencore’s move last week to sell most of its stake in Russian oil major Rosneft to Chinese conglomerate CEFC is eliciting admiration from the Swiss oil trader’s rivals — and relief from its bankers. To rivals, it appears to be a clever deal by Glencore’s boss Ivan Glasenberg, who had initially invested 300 million euros of Glencore’s money in a deal worth 10.2 billion. On paper, after nine months he shows a small loss: Glencore retains a 0.5 percent equity stake in Rosneft, now worth around 250 million euros. But crucially, traders expect Glencore to hold on... continue reading

Five Year CTRM Market Outlook – 2017-2021

We have just released our 5 year outlook for the global CTRM markets as part of our 2016-2021 CTRM Market Outlook Report.  This year’s report is available in an abridged summary version as a free download or for online viewing at https://www.ctrmcenter.com/publications/reports/2016-2021-ctrm-market-outlook/.  A full report, providing a detailed review of the global markets by commodity, industry segments and geography is available for purchase ($799) by selecting that option on the same link, or by this link Full 2016 – 2021 CTRM Market Outlook Report >> Following is the summary view of our market outlook from 2017-2021 included in that report: In... continue reading

Cargill, an intensely private firm, sheds light on the food chain

ANGLERS love a record catch. Fish farmers, too. So when a salmon bred and raised near this village at the head of a Norwegian fjord was pulled out of captivity earlier this year weighing a sumo-sized 17kg, it was cause for jubilation. “It was fantastic,” says Einar Wathne, head of aquaculture at Cargill, the world’s biggest food-trading firm. Not only was it produced in 15 months, one-fifth faster than usual, it also looked and tasted good. Mr Wathne’s Norwegian colleagues celebrated by eating it sashimi-style shortly after its slaughter. Cargill is a company usually associated with big boots rather than... continue reading

Brazil farmers run out of space as bumper crops pile up

SORRISO, Brazil (Reuters) – At a warehouse in the heart of Brazil’s agriculture sector, farmer Rafael Bilibio watches truck after truck line up to unload corn onto the ground outside the huge storage bins. His own corn, ready for unloading from a 50-tonne truck that has just pulled in, is destined to join the pile that has reached 65-feet high, as the bins remain stuffed with soybeans collected earlier this year in Mato Grasso state. “For the first time in history, producers here will pile one harvest on top of the other,” said 33-year-old Bilibio, who cultivates some 4,700 hectares... continue reading

Electric-Car Revolution Shakes Up the Biggest Metals Markets

(Bloomberg) by Mark Burton and Eddie Van Der Walt – The revolution in electric vehicles set to upturn industries from energy to infrastructure is also creating winners and losers within the world’s biggest metals markets. While some of the largest diversified miners like Glencore Plc argue fossil fuels such as coal and oil still play a crucial role supplying energy needs, they’ll also benefit the most from a move to electric cars, requiring more cobalt, lithium, copper, aluminum and nickel. The outlook for greener transportation got a boost this year as the U.K. joined France and Norway in saying it... continue reading

Noble shrinks, sells part of business to Mercuria as it faces huge quarterly loss

SINGAPORE (Reuters) – Noble Group (NOBG.SI), once Asia’s largest commodities trader, is to cut staff and sell assets, including its U.S. gas and power business to Mercuria Energy Group, as it faces a quarterly loss of up to $1.8 billion. Hong Kong-based Noble added that it would “explore strategic alliances in Asia” with Mercuria after establishing some initial links with the Swiss trader’s Asian affiliates. Noble announced on Wednesday the plans to sell its U.S. gas and power business to Mercuria for $248 million and has also put its capital-intensive oil liquids business up for sale, leaving it focused on... continue reading

Logistics Industry: Next Step to Global Economy’s Blockchainization

There is a new addition to the list of industries that are being conquered by the inevitable advance of the Blockchain. Today, it is steadily permeating the logistics sphere, which seems to be a perfect fit for the technology. This year we have witnessed the market signaling rising interest to how Blockchain can change the logistics and transportation industries. Logistics and Blockchain: a perfect match Blockchain, the underlying technology of Bitcoin, is in essence a very secure and effective way to share information between parties. It creates an immutable digital ledger of transactions which is maintained by a distributed network... continue reading

Can Trump resurrect U.S. aluminum, and who killed it anyway? Andy Home

LONDON (Reuters) – Alcoa is bringing one of its U.S. aluminum smelters back from the dead. The Warrick smelter in Indiana has annual capacity of 269,000 tonnes, its own coal-based power source and is integrated with a rolling mill. None of which saved it from Alcoa’s scramble down the cost curve in the face of falling prices, culminating in its permanent closure in January 2016. That’s different from what the industry calls a “curtailment”, a temporary idling for possible restart. But now, miraculously, Warrick is back and Alcoa will fire up three of the plant’s five production lines, with capacity... continue reading

Electric cars seen dominating by 2040 as battery prices plunge

Electric cars will outsell fossil-fuel powered vehicles within two decades as battery prices plunge, turning the global auto industry upside down and signalling economic turmoil for oil-exporting countries. The Bloomberg New Energy Finance forecast says adoption of emission-free vehicles will happen more quickly than previously estimated because the cost of building cars is falling so fast. The seismic shift will see cars with a plug account for a third of the global auto fleet by 2040 and displace about 8mn bpd of oil production – more than the 7mn barrels Saudi Arabia exports today. “This is economics, pure and simple... continue reading

China, India, Japan hamper Asia oil demand growth, efforts to balance market

By Henning Gloystein | SINGAPORE As the global oil market frets about a stubborn supply glut, faltering demand growth in key Asian crude importers is further hampering efforts to restore market balance. A fuel glut in China, a hangover from demonetization in India, and an ageing, declining population in Japan are holding back crude oil demand growth in three of the world’s top four oil buyers. The three countries make up a fifth of 97 million barrels per day (bpd) in global oil consumption, and any hiccups among them will mean lower-than-expected oil demand growth in Asia, helping to undercut... continue reading