On this week's Platts Market Movers Asia with Editor Agamoni Ghosh: The Asian oil market will be closely watching the OPEC and non-OPEC Ministerial Meeting to be held on July 1. Refiners and trading companies are expecting an easing of the crude oil production cuts as prices continue to rise.
More highlights in Asia's commodity markets:
* Market awaits China's June Caixin manufacturing PMI
* LNG price rally persists on bullish fundamentals
* Coal prices tread historical highs amid tight supply
This week: LNG prices likely to continue their rally, Indonesia sees lukewarm gasoline demand, and market awaits China's June Caixin manufacturing PMI numbers. But first, all eyes are on the OPEC and non-OPEC Ministerial Meeting to be held on July 1. Asian refiners and trading companies widely expect a phase out in production cuts amid the recent crude rally.
The OPEC+ alliance has committed to ease crude output cuts to 5.76 million barrels per day in July. This is significantly lower from the group's historic 9.7 million barrels per day production cut seen in May and June last year. Meanwhile, outright oil prices continue to trend higher with Platts sweet crude benchmark Dated Brent on the brink of testing the 80 dollar per barrel mark.
And in our social media poll this week, we are asking you if you see the Brent hitting the 100 dollar per barrel mark by the year-end? Share your thoughts on Twitter with the hashtag PlattsMM.
Staying with oil, Indonesia's state-owned Pertamina is expected to reduce its gasoline import volumes to around 8 million barrels in July, as concerns over rising coronavirus cases in Southeast Asia's largest gasoline importer dampen near-term demand outlook. As you can see, the imports for January-April period have trended lower for both 2020 and 2021 compared with the pre-pandemic period. Given the near-term uncertainty in population mobility and transportation fuel demand, Indonesia's gasoline consumption continues to stay tepid since the outbreak last year.
In metals, markets will be keeping a close eye on China's June Caixin manufacturing PMI numbers, which are likely to indicate another month of expansion. Meanwhile, exports of China's aluminum products are in the spotlight. The Gulf Cooperation Council issued a final ruling imposing a thirty three percent antidumping tax on certain products imported into the region from July 22. And, some bauxite ore mines were forced to shut down in China's Shanxi province after authorities started inspections in some non-coal mines. This boosted ore prices on indications of supply tightness.
Moving on to LNG, bullish fundamentals could continue supporting the Asian market this week as the northeast Asia region emerges from its summer seasonal peak. The JKM has rallied to the highest point since January as healthy demand from Asia-Pacific end-users, stronger freight rates and a robust European LNG market continue to drive spot demand.
And finally, in thermal coal, Indonesian coal prices are expected to remain bullish this week after surging to historical highs in the past week amid a lingering supply crunch and robust sea-borne demand. Prices of Australian high-ash coal is expected to remain firm on the back of demand surge from ex-Chinese markets like Japan, South Korea and Taiwan.
For more on the issues affecting commodity markets from wherever you are, make sure to check out Platts LIVE at the address displayed on your screen. Thanks for kicking off your Monday with us. Have a great week ahead!