In this week’s Market Movers Asia with Shivangi Mittal:
- Chinese independent refiners' throughput eyed
- Asian thermal coal prices seen firmer
- Dryness in US, Brazil may impact corn flows
- China alumina prices well-supported
- Lithium salt prices continue downtrend
This week, oil market participants will keep an eye on Chinese independent refineries’ throughput and feedstock procurement as the sector is less likely to have extra crude import quotas for 2023.
Due to the import quota shortage, some independent refineries have started to cut utilization rates while looking for alternative feedstocks like fuel oil.
In Asian thermal coal, prices are likely to remain firm amid supply constraints in Indonesia.
Demand from Chinese buyers is likely to remain sluggish in anticipation of a price correction, while Indian buyers are seen unwilling to bid at current market prices.
In agriculture, corn exports from the US and Brazil will be in focus amid logistical challenges due to dryness and depleting water levels. Various Asian countries are major importers of corn from these regions and will be keeping an eye on developments.
In metals, China’s alumina prices are likely to keep drawing support from output cuts at alumina refineries in Shandong province and Chongqing municipality. Robust demand from downstream smelters will also keep prices strong.
Chinese lithium salts prices eased after a brief rebound seen earlier this month, as demand from the downstream industry remains weak.
I’m Shivangi Mittal, thank you for kicking off your Monday with S&P Global Commodity Insights.