In this week's Market Movers Asia with Shikha Singh:
- China to release key economic data
- Energy Ministers to meet in India to discuss clean energy
- Japanese carbon traders expected to focus on VCM
- Australia wheat in focus amid El Nino concerns
- China’s aluminum prices to remain rangebound
- Demand persists in Asian thermal coal market
This week, China will release its GDP data for the first half of the year, along with data on fixed asset investment, industrial production and power consumption. Markets will look at these key economic indicators for hints on the country’s demand outlook for the rest of the year.
As part of the G20 Energy Transitions Ministerial Meeting, energy ministers and industry members from various countries are meeting in Goa, India this week. Their discussions around policies, investment and technology will shed light on the future of low-and-zero emissions energy supply and demand fundamentals.
In Japan, traders are expected to focus on creating a portfolio mix of voluntary and compliance credits over the next few weeks, as the Japanese government’s aim to generate 0.1 gigatons of J-credits and JCM credits by 2030 is deemed insufficient to meet demand.
Wheat sowing in Australia remains in focus amid potential emergence of El Nino, as the country’s wheat production estimate for this year is down 34%, raising concerns about exports prospects.
In aluminum, domestic prices in China are likely to remain rangebound despite the expected output cuts in Sichuan Meishan smelter, as output from Yunnan smelters is likely to see an increase from late July following the resumption of the idled capacity.
In Asian thermal coal market, China’s demand for lower grade Indonesian coal is expected to persist, and the market will be monitoring whether inquiries from India become more frequent and translate into deals.
I’m Shikha Singh. Thank you so much for kicking off your Monday with S&P Global Commodity Insights!