In this week's Market Movers Asia with Ernest Puey, Associate Editor, Oil:
- China's crude oil output in focus
- Falling spot LNG prices attract Asian importers
- China to reveal key metals data
- Demand likely to pick up in Asian thermal coal market
- Australian wheat exports in spotlight
This week, markets will be closely watching the release of China's energy production data for the first two months of 2023.
The country's crude oil output and throughput during the period of transportation fuel demand recovery could offer hints on China's appetite for crude imports in the months ahead.
In LNG, spot Asia-Pacific cargo prices continue to decline on muted downstream gas demand and ample inventories.
The subdued prices are likely to attract price sensitive markets in Asia, which are now looking to resume purchases.
The Platts-assessed JKM prices hovered above the $12/MMBtu level toward the week ended March 10, falling significantly from a recent peak of over $40/MMBtu in December.
In metals, the release of China's key production numbers will be in focus, where crude steel production in the first two months is expected to grow on-year.
Rising steel output is anticipated to keep steel markets subdued in March.
In aluminum, China's primary aluminum output is forecast to decline in March from a month ago, due to widened output cuts in Yunnan.
In Asian thermal coal, sellers will likely raise their offer prices as China and India prepare to stockpile for the upcoming summer season.
The market will also monitor if China ramps up imports from Australia after coal trading between the two nations resumed in January.
In grains, markets will be looking at Australia's wheat exports amid record output expectations.
Limited impact of excessive flooding on crop quality has raised export outlooks.
The US Department of Agriculture has forecast Australian wheat exports at a record high of 28.5 million mt.
I'm Ernest Puey, thank you for kicking off your Monday with S&P Global Commodity Insights.