Ver: Market Movers Asia, June 13-17: Vegoil prices in focus as Indonesia's palm oil exports set to rise

This week: China's refined copper output is all set to rise in June, all eyes on palm oil exports from Indonesia after the country cut the maximum export tax on crude palm oil, and spotlight is on S&P Global Commodity Insights' Bunker and Shipping Summit to be held in Singapore.

But first, in crude oil, Asian refiners are expected to continue negotiating with major Middle Eastern crude suppliers for an increase in third-quarter term supply allocations. OPEC+ had decided earlier this month to raise crude production quotas for July and August by about 50 percent compared to recent months.

But Asian refiners remain concerned over the possibility that a significant portion of that incremental Middle Eastern supply may go to end-users in Europe. Refiners have increasingly harped on the importance of securing adequate crude and other refinery feedstocks. They are looking to maintain high run rates and maximize middle distillate production during summer amid a rapid recovery in transportation fuel demand.

In metals, China's refined copper output is set to rise this month from May. Fewer smelters are carrying out maintenance activities and several idled capacities are expected to come back online. This is boosting domestic demand for copper concentrates as reflected by falling treatment charges.

Meanwhile, China's primary aluminum prices are expected to remain rangebound as downstream demand recovers at a slow pace amid higher domestic production. Market participants expect a strong rebound moving forward, as COVID-19 control measures in eastern China were eased after the Dragon Boat Festival holiday.

In agriculture, all eyes will be on the world's largest vegetable oil supplier Indonesia. The country cut its maximum export tax and levy on crude palm oil last week to encourage exports. Jakarta is further expected to announce an additional flush-out tax for sellers to export more volumes than those allocated in July. Market participants expect the resumption of Indonesian palm oil exports to put a cap on Malaysian palm oil exports from the second half of June.

That brings us to our social media question for the week: Will resumption of Indonesia palm oil supply help ease vegoil prices? Share your thoughts on Twitter and LinkedIn.

And finally, in the maritime sector, the spotlight will be on S&P Global's Bunker and Shipping Summit to be held in Singapore on June 15^th and 16^th. The conference will provide fresh leads on how the shipping sector is transforming as it tries to reduce carbon emissions from hydrocarbon-based bunkers by using greener fuels. An entire gamut of options will be discussed in the conference, including technological and compliant fuel challenges in the race to decarbonize the shipping industry.

Thanks for kicking off your Monday with us. Have a great week ahead!