Zürich New lockdown fears and a rising dollar have put a damper on the rally in cyclical commodities such as oil and copper. The price of Brent oil fell back to around $ 55 a barrel at the end of the week, after rising to $ 56.44 at the beginning of the week. The price of copper on the London Stock Exchange failed to defend the $ 8,000 per tonne mark after rising to as much as $ 8,179 per ton in early January.
Cyclical commodities such as oil and copper, which are benefiting from a booming economy, have recently been among the hottest bets on the economic upswing after the corona crisis. Fueled by strong demand from China, the copper price was the first to rise. Since the beginning of November alone, when news of the development of a vaccine first went around the world, prices have risen by 19 percent.
The oil price has been catching up since the beginning of the year: the price of black gold has not only risen by more than 40 percent since November. In a direct comparison with copper, too, crude oil has made up for it. The copper-oil ratio, which compares the prices of raw materials, has moved in favor of oil since the beginning of the year.
From the point of view of Warren Patterson, chief strategist for commodities at the major bank ING, the recent setback in the oil price rally should be short-lived. “There are still many risks related to Covid-19 to the price of oil in the near future,” he said. It will be months before vaccination programs around the world are reflected in significantly lower numbers of coronavirus cases. But by the end of the year he expects an average Brent oil price of $ 60 per barrel – higher price peaks are also conceivable, according to Patterson.
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Increasing demand in America and Europe
In addition to the return of oil demand, the production policy of Saudi Arabia, the most competitive oil producer in the world, is also contributing to the price rally. At the beginning of the month, the kingdom surprised the markets by announcing that it would take an additional million barrels off the market. Michael Tran, analyst at the investment bank RBC Capital Markets, therefore says: “The oil markets are experiencing the most constructive turnaround in recent years, both fundamentally and in terms of investor sentiment.”
For copper, experts such as the raw material analysts at Bank of America have also significantly increased their forecasts: They expect the price of the reddish industrial metal to rise to an average of $ 9,500 per ton in the fourth quarter of 2021. The Bank of America experts believe that it can even rise to over $ 10,000.
China’s copper imports are likely to lose some of their momentum. But they could be replaced by increasing demand from America and Europe. Governments are planning extensive investment and economic stimulus programs in both regions of the world. At the same time, the copper supply remains scarce. Bank of America analysts expect exports from Chile and Peru, two of the world’s largest copper producers, to fall.
The rally in cyclical commodities also pushed the broad market barometer, the Bloomberg Commodity Index, to its highest level in a year. Among other things, this was due to price increases in important agricultural commodities such as corn, soybeans and wheat.
More: Unusual Copper and Oil Price Development: What Does This Say About The Global Economy?
Hong Kong, April 6 / PRNewswire / – Under the theme #ExperienceMore, TCL is presenting the KI x IoT Lifestyle with its latest developments in the display sector and impressive multi-category offers
TCL Electronics (1070.HK), a dominant player in the global television industry and a leader in consumer electronics, starts the year at CES 2021 more determined than ever with exciting announcements to fulfill its mission to bring life to life through innovative mini Making next-generation LED technology smarter.
“TCL is proud to attend CES 2021 and to be part of this dynamic industry. We are one of the leading consumer electronics brands in the world and the second largest TV brand in America and our mission is to use our AIxIoT strategy to innovate life Making technology smarter. We are committed to continuing to provide the best intelligent products and services to our users around the world, “said Kevin Wang, CEO of TCL Industrial Holdings and TCL Electronics.
This year’s event will be the very first “virtual CES” demonstrating the resilience and global unity that carries us all into the future, despite the challenges 2020 has brought to the world.
TCL will be attending several sessions at CES 2021, including a global press conference (the Global Press Announcement), showcasing its very latest display technologies, and showcasing a range of smart home devices that bring new experiences to users.
Known for mini LED and QLED televisions, award-winning sound bars, smart home devices, and popular mobile devices powered by the current AIxIoT strategy, TCL continues to push the boundaries of what is possible for display and audio technology.
On January 11th, TCL will showcase its highly anticipated innovations in mini-LED and future display technologies at the CES 2021 Global Press Announcement. This should attract the attention and interest of the media and consumer electronics industries.
Below are the details of the events TCL will be attending at CES 2021:
** All sessions will be posted online at https://www.tcl.com/ces2021.html
# The times and dates shown refer to Eastern Time (UTC-5) on the American east coast
Global Press Announcement
Time: 11: 00-11: 30 a.m.
Date: January 11, 2021
Product spotlight for North America
Time: 1: 00-1: 30 p.m.
Date: January 12, 2021
Product spotlight worldwide
Time: 7:30 a.m. – 8:00 a.m.
Date: January 13, 2021
Information on TCL Electronics
TCL Electronics (1070.HK) is a rapidly growing consumer electronics company and a leader in the global television industry. It was founded in 1981 and is now active in over 160 markets worldwide. According to OMDIA, TCL ranked second in the global television market in terms of sales volume in the second quarter of 2020. TCL specializes in the research, development and manufacture of consumer electronics products ranging from televisions, audio and smart home products.
Wheat, soybeans and especially corn… World cereal prices have been on the rise again since Tuesday 12 January. The latest report from the US Agriculture Agency is fueling this new outbreak, which is dissuading Egypt from buying wheat for the time being.
Cereals are definitely starting the year 2021 with a bang. Corn prices hit their maximum daily upside on the US futures market on Tuesday. On Wednesday, the surge continued from Paris to Chicago. At 5.39 dollars a bushel, corn is at its highest since mid-2013, soybeans and wheat are at their highest since 2014. In Paris, a tonne of wheat is worth nearly 230 euros.
On January 12, the US Agriculture Agency (USDA) report surprised markets, downgrading the last US corn crop by 8 million tonnes from December. The drought damage to the yields of the Great Plains had been underestimated. US soybean and wheat harvests are also downgraded, fears about new harvests in the southern hemisphere, Argentina and Brazil.
► Also to listen: Brazilian soy soon to be shunned by European buyers?
From China to Morocco, a strong demand for cereals
We are worried about the lean season between now and next September, given the strong international demand. All importing countries, China in the lead, wishing to replenish their stocks, which the Covid has not always allowed. Morocco is more than ever in purchases to compensate for its weak harvest and Rabat has removed its import tax to facilitate them.
Faced with this surge in grain prices, Egypt however abandoned its last call for tenders. For the world’s largest wheat importer, the proposals were too few and too expensive. Even Russian wheat is no longer competitive, Russia imposed an export tax to calm wheat inflation at home and she is thinking of overtaking her soon.
According to FranceAgriMer, this elimination of Russian wheat could allow French wheat to regain market share in North Africa and West Africa in the second part of the season.
At Xiaomi, the uncertainty doesn’t seem to have affected the course yet. However, the example of Alibaba has shown that uncertainty is bad for the development of the share price. Since the founding of Jack Ma has not been heard from, many critics assume that it was being dragged off by the government. But these are only speculations, there is of course no evidence.
The first indicator already indicated a countermovement
In the new year, the price of the Xiaomi share rose rapidly and dynamically and also exceeded the 35 HKD mark. The relative strength index showed a sell-signal after the strong increase and this resulted in the downward movement. This went down about 20%, so that a crowd of buyers gathered around HKD 30. These supported the course in this area.
Should Investors Sell Right Now? Or is it worth joining Xiaomi?
Where is Xiaomi’s current 200-day line?
After starting up in March of last year, this has now moved significantly away from the course. We currently find the 200-day line for the Xiaomi share at just 18 HKD. This means that the risk buffer is large, but also the range between the price and the important support line.
Forget everything you have seen before!
This inconspicuous German share will only rise in the future … so you should definitely not hesitate and invest immediately. Because this one company now has the key technology that the Internet of the future needs.
A key ingredient in electric mobility, graphite has seen its mining production decline in 2020 due to Covid-19. But new projects are being relaunched this year, including a complete sector outside China.
With the rise of electric mobility, mining graphite production is expected to grow by 8% this year, analysts at Global Data estimate. A rebound after the decline of last year, when the supply of natural graphite fell by 15.5%. Blame it on Covid-19 which had disrupted work on many deposits and which had slowed down demand from steelworks, where graphite is traditionally used to compose the electrodes of electric furnaces.
70 kilos in an electric vehicle
Demand for electric vehicles had also stalled. However, graphite is a key ingredient in batteries, along with lithium, nickel, cobalt and manganese, since an electric vehicle battery contains no less than 70 kilos of graphite.
But with the brake on the Covid, China, the world’s largest supplier, had reduced its production by 5% in 2020. Brazil, the third producer of graphite, had cut it by 4%. Mozambique had gone from 2th to 6th world rank by completely suspending the operation of the Balama site, operated by the Australian Syrah Resources.
New extraction projects in Africa
Activity should soon resume on this Mozambican deposit and the offer should even expand with new projects in the next two years, with the start of the Molo deposit in Madagascar in 2021, Montepuez in Mozambique and Lindi Jumbo in Tanzania in 2022. These new African sources of supply could allow the development of a new graphite sector outside China, since Syrah Resources, which operates the Mozambican deposit, has launched a battery anode manufacturing plant in the United States. United: in Vidalia, Georgia.
US Battery Anode Plant
A way to escape China, which not only concentrates two-thirds of the world’s production of graphite ore, but above all which transforms more than 90% of the world’s graphite flakes into spherical graphite, the key ingredient in anodes of batteries.
The sudden onset of winter in Asia and Europe is causing gas shortages from Pakistan to Japan. Spot prices for liquefied natural gas are propelled to record levels, when they were at their lowest in March 2020, because of the Covid-19. LNG producers have for the first time reduced their summer production.
The cold wave in the northern hemisphere has completely turned the gas market upside down. The drop in temperatures surprised many countries in Asia, very dependent on imports of liquefied natural gas and which had not taken their precautions. Gas had been so cheap since last March on the spot market that importing countries expected to continue buying it as and when needed. Two months ago, India even gave up on its long-term supply agreement with Tellurian. Today she struggles to provide herself.
India and Pakistan had abandoned long-term contracts
Same thing in neighboring Pakistan. The country is suffering from a real shortage of gas and therefore of electricity, which turns into a political crisis. The population uses fuel and wood for cooking and heating. Even Japan, which imports all its liquefied gas by ship, also lacks power for its power plants, while its nuclear reactors are still not working at full capacity.
Everyone wants LNG when there is none on the market. For the first time in their history, in fact, the gas liquefaction units, from Australia to the United States, stopped this summer to limit surpluses and financial losses, after the plunge in spot prices in the month of March because of the Covid.
Produce less to earn more, a new mantra for the LNG industry
« Out of 150 billion m3 of unused gas capacity in the world, 50 billion m3 have been put on hold by LNG producers, i.e. the equivalent of French consumption, emphasizes sector specialist Thierry Bros. It’s a new model for the LNG industry: produce less to earn more. By not producing this summer, they erased the coronavirus effect. They would have produced this summer we would not have the high prices we have today. »
A warning for importing countries
In Asia the million Btu reached 25 dollars against less than 2 dollars last March! LNG carriers cannot be found at less than $ 200,000 a day, three to four times more than 4 months ago, observes expert Pierre Terzian. Price anomalies that will not last, he says, but which are a warning that the spot market cannot solve all problems. But today, with contracts of less than three years, it represents 25% of the world gas market, which is a lot. While the share of long-term contracts is only 75%.
It is a rare enough fact to be underlined, a Guinean company will acquire a French company. And not just any, it is Alteo, the world number one in specialty alumina.
Alteo, a company based in the Marseille region, has been in receivership for a year, and the commercial court of this city has just entrusted the United Mining Supply (UMS) group with the Alteo case. UMS is headed by Guinean-Lebanese businessman Fadi Wazni, who is also Chairman of the Board of Directors of Société minière de Boké, Guinea’s largest bauxite exporter.
And from bauxite to alumina, there is only one step, or rather one step of transformation. For Fadi Wazni, who became the leading national bauxite exporter under the Alpha Condé regime, thanks to the Boké mining company, there is above all a logical continuity and a quest for added value. Alteo, which has a turnover of 230 million euros, produces specialty alumina, an extremely pure form, used in micro-electronics, for smartphones, or in the automotive sector.
Quest for a buyer
In debt and in difficulty, the company Alteo was looking for a buyer. Fadi Wazni will buy back part of the debt, the exact amount is still unknown, and reorient the production process. There is no longer any question of importing pure bauxite into France, but only alumina which will then be refined on site. 98 jobs out of the 500 should disappear in the process. The advantage of this reorientation will be to stop the storage or discharge of bauxite residues considered to be very polluting. French environmentalists who demanded an end to pollution did not triumph, however. For them, Fadi Wazni only shifts the problem to African soil.
As the world’s leading supplier of nickel, Indonesia is stepping up agreements with global manufacturers of electric batteries. The Jakarta authorities have been pursuing a proactive policy of industrial development using this mineral resource for years.
Indonesia could be the first country to develop an integrated nickel industry, from mine to battery. The latest initiative, revealed last week by authorities in Jakarta, South Korean battery maker LG has signed an agreement to invest $ 9.8 billion not only in a battery factory, but in the development of a nickel mine and refinery in the Moluccas Islands. The first developments should start in February.
« LG has the market and the technology, but Indonesia has immense reserves of raw materials, comments the Indonesian Investment Coordination Office. If we combine the two, he continues, this investment will make Indonesia one of the world’s major electric vehicle players. »
Volunteerism of the authorities
For years the authorities in Jakarta have sought to develop the downstream side of their nickel industry. Their method? Successive embargoes on raw ore exports to push processors to settle in the archipelago to refine the metal. ” This is what many Chinese steelmakers had to do in the 2010s, who needed Indonesian nickel for their stainless steel. », Recalls Didier Julienne, specialist in metals.
Now it is the electric transport revolution that is pushing investors to take an interest not only in the transformation of the ore into electrolytic nickel, of battery quality, but in the establishment of battery factories in Indonesia to control the supply of nickel. ” Manufacture where it costs the least », Comments the expert.
Project by LG, GEM, Tesla
The coronavirus has delayed to 2022 the start of a similar project in the Morowali industrial park, in the east of the island of Sulawesi. But the Chinese GEM, supplier of components for electric batteries, has just risen to 76% in the capital of the joint venture.
Finally, a delegation from Tesla, the American electric car champion, is expected in Indonesia later this month.
Frankfurt As an entrepreneur drilling for oil in the USA, Thomas Gutschlag will not soon forget the past year. The head of Deutsche Rohstoff AG from Mannheim and his company went through what is probably the worst crisis on the oil market.
“First the OPEC dispute, then Corona – that was a bitter blow,” says Gutschlag. The mood in the industry and among investors is down. “The confidence that you can make quick money with oil will not come back anytime soon,” he says.
The manager himself expects a slight price increase in 2021: “We would be very happy if the oil price levels off between 50 and 60 dollars.” He does not expect more for his business, which has interests in oil fields in Colorado and Utah.
This coincides with the assessment of many oil analysts. Giovanni Staunovo from the major Swiss bank UBS expects the price of Brent oil to rise to 57 to 60 dollars per barrel (around 159 liters) in the second half of the year. At the current oil price of a good $ 51, the upside potential is ten to 15 percent. Staunovo warns: “The recent price hike is premature as the recovery in oil demand becomes bumpy.”
Barbara Lambrecht from Commerzbank confirms: The comeback of oil prices in the new year is “not a sure-fire success”. Commerzbank is even more pessimistic: According to the bank’s oil experts, the price is unlikely to exceed the current level by the end of the year.
And Michael Salden, chief analyst for raw materials, says: “The current rally is premature.” And so things could go down again at the start of the year on the oil market before prices stabilize.
Ottawa The Canadian government has rejected the takeover of a raw materials company in Canada’s Arctic by the Chinese company Shandong Gold Mining. Apparently, security concerns led Ottawa to make this decision.
With the acquisition of TMAC Resources, Shandong would have got a gold mine and port in Hope Bay on the Northwest Passage, the shipping route through Canada’s Arctic Islands. China’s interest in TMAC also underscores the Arctic’s growing global strategic importance.
Canadian junior company TMAC announced Prime Minister Justin Trudeau’s government decision ahead of the Christmas holidays. TMAC is “disappointed” with the government’s decision. The transaction will not take place now, said company boss Jason Neal.
The Ministry of Innovation, Science and Economic Development, which under the “Investment Canada Act” examines applications for takeover of Canadian companies by foreign countries, did not itself publish a press release and did not want to comment because of the confidentiality required by law. Shandong Mining Co. Ltd. wanted to acquire 100 percent of TMAC Resources Inc. for 1.75 Canadian dollars per share.
That would have a market value between 200 million and 230 million Canadian dollars, the equivalent of up to around 150 million euros. The TMAC shareholders approved the takeover on June 26th with an overwhelming majority of 97 percent.
Relationship between Canada and China strained
The Chinese embassy said in a statement that Canada should “offer fair, open and non-discriminatory market conditions for companies from all over the world including China”. TMAC mines the precious metal in Hope Bay not far from the community of Cambridge Bay in its Doris gold mine.
The value of the transaction is rather low compared to other acquisitions in the raw materials sector. But the deal was politically explosive for several reasons. Canada’s relations with China have been strained since the chief financial officer of the Chinese telecommunications group Huawei, Meng Wanzhou, was arrested at Vancouver airport in December 2018 on a US extradition request.
Extradition proceedings against Meng are pending in a Canadian court. Immediately after Meng Wanzhou’s arrest, Canadians Michael Kovrig and Michael Spavor were arrested in China on charges of espionage. Canada regards this as retaliation, while China rejects any link between the two proceedings.
In addition, Shandong, which the Canadian media describe as controlled by the Chinese state, would have received a base with the takeover of TMAC in the middle of the Northwest Passage. It is expected that with advancing climate change the Northwest Passage will become navigable and thus gain in importance for international shipping.
In the narrow shipping route through the Arctic archipelago of Canada, a base could be of great strategic importance for China. It could therefore also have international significance. For Canadians, whose claims to sovereignty over the waterways in the far north are repeatedly questioned – also by the European Union and the USA – sovereignty over the Northwest Passage is a very sensitive question.
The USA is critical of China’s Arctic policy
Therefore, even without official confirmation by the government in Ottawa, it is plausible that security and sovereignty considerations have influenced the balance between economic and national interests. This balancing must be made in accordance with the “Investment Canada Act”.
The daily newspaper Globe and Mail also reports on “pressure from the US government”. The US embassy in Ottawa initially did not comment on Canada’s decision. The US has been warning for some time that China could use civil research in the Arctic, investments in raw materials and expanding shipping as vehicles to gain a strategic foothold in the Arctic and ultimately strengthen its military presence.
US Secretary of State Mike Pompeo pointed this out in a very confrontational speech on the sidelines of the Arctic Council’s deliberations in the spring of 2019 in Rovaniemi, Finland. Pompeo sees “a new age of strategic engagement in the Arctic, with new threats to the Arctic and to all of our interests in this region”
In 2013 the Arctic Council granted China observer status. In 2018, China formulated its Arctic policy and, despite the distance between China and the Arctic, referred to itself as the “near Arctic State”. The self-designation underlines China’s interest in the region.
China wants to use the shipping routes and is interested in the raw materials of the Arctic, which include not only oil and gas, but also precious metals and technology raw materials. China sees shipping through the Arctic as the “polar silk road”.
China’s new role in the Arctic
It is intended to help diversify trade routes and create a possible alternative to the southern maritime Silk Road through the Strait of Malacca, the Indian Ocean, Suez Canal and the Mediterranean. In its “Arctic Strategy” from June 2019, the US Department of Defense speaks of an “era of strategic competition” in the Arctic.
While China was mentioned rather marginally in earlier Pentagon documents on the Arctic, the relationship between economic initiatives and the possible resulting military presence is now described. In March 2020, Russia also underlined the importance of the Arctic for the socio-economic development of the country with a decree signed by President Putin “On the basis of the state policy of the Russian Federation in the Arctic for the period up to 2035”.
The Russian government makes it clear that the Arctic is of central geo-economic and geo-political importance for the country. Russia relies on the energy resources, metals and minerals that lie in the Arctic floor and in the sea near the coast. Investments should be made in the economic infrastructure, which is becoming even more expensive due to the thawing permafrost soil. The expansion of the military infrastructure is also a high priority.
The Canadian political scientist Rob Huebert from the University of Calgary therefore speaks of a new “strategic triangle” that is formed by the USA, Russia and China and for which he has found a handy abbreviation: NASTE, which stands for “New Arctic Strategic Triangle Environment” stands. Tensions in the Arctic are not caused by conflicts over Arctic issues, but by the rivalries of the great powers.
He sees the strained relationship between the US and Russia with the simultaneous rise of China, which challenges the US and possibly also Russia on the world stage, as a reason for new strategic and military activities in the Arctic.
It is obvious to him that for the US and Russia, the Arctic is the best starting point to strike at each other. This is one of the reasons the Arctic became “a region of overwhelming strategic importance when the US and Russia began to challenge each other’s interests in the international system”.
China is complicating the situation in the Arctic
It is not about the conflict “over the Arctic, but the use of military power from the Arctic, which gave this region its geopolitical significance”. According to Huebert, the fact that China is now calling itself the “near-Arctic state” in this strategic field and is competing with the USA and, in the longer term, with Russia as well, makes the situation even more complicated.
The historical bipolar system is now shaped by the appearance of three powers, and this makes the region “more important and more dangerous”. For TMAC, after the broken China deal, it is about securing the continued existence of the Doris mine.
It went into production in 2017, but is struggling with technical and structural problems. TMAC needs cash inflow to continue operations and repay loans. “The Hope Bay Gold Belt has considerable value,” said TMAC President Neal.
In an interview with the Nunatsiaq News published in Iqaluit, the capital of the Arctic Territory of Nunavut, he assured that the mine would not be “mothballed”. He had hoped that with the takeover by Shandong he would be able to put the mine on a secure financial basis.
He did not want to speculate about the reasons for Canada’s government rejecting the transaction, but admitted that this shows “that relations between Canada and China are currently not at all good”. The region’s Inuit organization is also counting on the Doris mine to attract the interest of domestic investors and financial institutions in view of the gold price, so that the mine can continue operations and jobs are secured for the people of Nunavut.