In this week's Market Movers Asia with Ruchira Singh:
- Red Sea tensions limit transit of LNG carriers
- Refineries eye alternative plans for feedstock flows
- Supply tightness plagues China’s alumina market
- China’s 2023 renewable installed capacity to hit high
- Thermal coal demand from China seen up ahead of New Year
- Carbon market expects Indian voluntary market rules
This week, persisting tensions in the Red Sea have limited LNG transit as gas and shipping companies exercise caution.
The situation has pushed both LNG importers and producers to look for alternate ways to absorb the impact of the disruption.
Similar caution in the petroleum industry is pushing refiners to chalk out alternate plans to ensure steady feedstock flows in the event of an escalation—a move that could inflate insurance costs and crimp refining margins.
Meanwhile, China’s alumina market will get support from supply tightness as downstream primary aluminum smelters stock up before the Lunar New Year holidays in February.
Domestic alumina refineries may continue to be face bauxite supply tightness and output restrictions during heavy pollution days.
China may also intensify purchasing of thermal coal as buyers are likely to add to stockpiles ahead of the new year holidays.
China’s annual renewable energy statistics are expected to be released this week. This will not only reveal new capacity additions in 2023, but also China’s annual electricity supply, which can offers clues on the pace of energy transition in the world’s largest greenhouse gas emitter.
Finally, the carbon market will look out for the Indian government’s Detailed Procedures on Offset Mechanism designed to launch a domestic Voluntary Carbon Market by 2025.
Five sectors will be allowed to register projects include renewable energy, electric cookstoves and renewable hydrogen.
I’m Ruchira Singh, thank you for kicking off your Monday with S&P Global Commodity Insights.