In this week’s Market Movers Asia with Dipthi Bhat:
- China's manufacturing and steel demand to see sluggish spring recovery
- China’s gasoil demand to recover as LNY ends
- Asian thermal coal demand set to rise with increased Chinese interest
- Vegetable oil prices to drop due to oversupply and weak demand
This week, China’s February manufacturing PMI data is expected to show subdued activity due to the Lunar New Year holidays.
Activity in the steel industry may return slowly in March, as China is grappling with lower property sales and infrastructure projects have been scaled back to reduce debt.
In oil, China’s gasoil demand should ramp up following the end of the holidays on Saturday, as economic activity picks up again. However, with the refining sector entering maintenance season in March, gasoil exports will be capped to safeguard domestic supply.
Coal prices for low- to mid-calorific value grades are expected to rise on increased demand in China and supply constraints in Indonesia due to persistent rain and limited spot cargoes.
Meanwhile, Indian buyers are likely to focus on non-power sector inquiries and be less active in the spotmarket due to ample domestic stocks.
In agriculture, vegetable oil prices are expected to face downward pressure this week due to slowing demand for palm and soybean oil from major buyers China and India.
Rainfall in Argentina could improve soybean crop conditions, contributing to the broader trend of declining vegetable oil prices.
I’m Dipthi Bhat, thank you for kicking off your Monday with S&P Global Commodity Insights