In this week’s Market Movers Asia with Pollock Mondal:
- Iran-China petroleum flows in focus
- Thermal coal demand from India may rise
- Eyes on BHP's next move after Anglo American rejects takeover offer
- Palm oil demand rises on bargain buying
This week, markets are monitoring Iranian petroleum trade flows to China, following the enactment of the Stop Harboring Iranian Petroleum Act by the US.
This act targets foreign ports, vessels and refineries involved in the trade of sanctioned Iranian petroleum products.
This move could have significant ramifications for China as the country relies heavily on Iranian crude.
In the Asian thermal coal market, weather will be a key demand factor as the rain forecast in South China might reduce the need for coal for cooling purposes.
However, Indian power plants are expected to increase coal bookings due to anticipated higher burn rates amid a heatwave in several parts of the country.
In metals, markets will closely watch mining giant BHP’s next move as Anglo American rejected its takeover proposal, saying the offer significantly undervalued the company and its future prospects.
In agriculture, analysts predict more sales during China's soybean auctions, driven by stronger margins and higher imports. The sales, which were subdued earlier in the year, have picked up pace recently.
In palm oil, imports into India and China may rise due to bargain buying as prices in Malaysia, a leading palm oil exporter, hit a near two-month low recently.
Market watchers believe higher production estimates from Malaysia and improved import margins in India and China could attract buyers.
I’m Pollock Mondal, thank you for kicking off your Monday with S&P Global Commodity Insights.