In this week's Market Movers Asia with Ernest Puey:
This week, container freight is set to rise as intensifying strikes in the Red Sea area threaten shipping flows. Carriers have levied multiple surcharges on the Indian subcontinent to North America trade lane, which come into force this week.
Asian refiners and traders indicated that while crude oil term and spot market supply is stable and sufficient, they would keep a close watch on logistical risks.
Meanwhile, China is set to release a slate of economic indicators on Wednesday, which will include GDP growth, as well as commodity and manufacturing production.
The data will offer hints of Asia’s top economy’s targets, and its appetite for commodities this year.
Growth in the final stretch of 2023 has been sluggish in China, with market watchers awaiting fresh signals on the state of the economic recovery in the country.
China’s 2023 steel production figures are also due Wednesday and are anticipated at similar or slightly higher levels from the previous year.
Market sources expect China’s steel production to remain high in 2024 amid a firm export market.
Finally, in Asian thermal coal markets, demand may show signs of improvement, as Chinese buyers look to stock up ahead of the Lunar New Year festivities in February.
I’m Ernest Puey, thank you for kicking off your Monday with S&P Global Commodity Insights.