U.S. Oil Imports Decline; Crude Inventories tumble;

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Crude Reserves

Observing the U.S. crude reserves, they had the biggest one-week fall down since December. It happened last week as imports fell down roughly. Furthermore, inventories of refined products also declined. Helping aliment of oil prices that were down by worries about oversupply.

Crude inventories USOILC=ECI fell 5.2 million barrels in the week to May 5. EIA data showed, rather compared with expectations for a decrease of 1.8 million barrels.  Crude stocks were the lowest since February. Leveling at 522.5 million barrels.

Regarding U.S. crude imports USOICI=ECI, they dropped in previous week by 799,000 barrels per day. Which makes it the largest weekly drop since the middle of February. It came to just 6.9 million bpd. Since the beginning of March, it’s happening for the first time that they have been below 7 million bpd.

Stocks at the Cushing, Oklahoma, conveyance center for U.S. crude futures USOICC=ECI went down to 438,000 barrels.

 

OPEC; Non-OPEC

Speaking about Crude futures, they rose. Based on the data which came after overpassing weeks of pressure.. Mostly over worries that a deal between OPEC and non-OPEC producers about cutting the outputs may not have expected effect. And was not having the desired impact on market prices.

By 11:12 a.m., U.S. crude futures CLc1 were up $1.30, or 2.8 percent, at $47.18 a barrel, and Brent crude LCOc1 rose 2.5 percent, or $1.25, to $49.98 a barrel. (Reuters)

However, U.S. production went up again, and refining runs declined. This made and effect of giving the analysts a pause. They didn’t have to worry about the market’s brisk increase.

 

Forecasts

“The highlited crude oil drawdown number is doubtless supportive. However, it could act something like a shooting star.

The refinery usage-rate has come pretty down. Due to moments after topping out, a couple of weeks ago.” (John Kilduff)

Refinery crude runs USOICR=ECI were down 418,000 bpd. Their utilization rates USOIRU=ECI declined by 1.8 percentage points to 91.5 percent of overall capacity. Happening right after hitting a record 94.1 percent  in the period of three weeks earlier. This is all based on EIA data.

Gasoline stocks USOILG=ECI fell 150,000 barrels.

Distillate stockpiles USOILD=ECI, they also include diesel and heating oil. It has dropped 1.6 million barrels. In comparison with expectations for a 1.0 million-barrel draw.

Notably, U.S. crude production continued to bloom, rising to 9.31 million bpd. While only a week earlier it came from 9.29 million bpd.

 

Outputs still growing

“Growing oil output in the U.S., which achieved its highest level since August 2015, will remain a spiny sharp issue for price bulls.”  Abhishek Kumar was commenting this subject.

He is a senior energy analyst at Interfax Energy’s Global Gas Analytics in London.(Reuters)

U.S. Oil outputs are making a fuss with global Oil supplies and Oil prices. Will OPEC countries succeed in cuts and market rebalance, only time will show.

 

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Moon Jae-in is the new President of South Korea !

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The Result

Moon Jae-in convincingly won South Korea’s presidential election today. He is a liberal politician. This victory will end nearly a decade of conservative ambient, and fetch more conciliatory approach towards North Korea.

Moon is going to end months of political turbulence. Which earlier brought to parliament’s knockdown of conservative former President Park Geun-hye over an extensive corruption scandal that happened in Marh.

Park is the first democratically elected politician in South Korea who finished her career in office, causing a wave election to choose her heritor.

Having won the election Moon promised he will lead a country in the era of the new spirit, changing the scandalous atmosphere.

“I will make a just, united country. I will be a president who also serves all the people who did not support me.” (Reuters)

With 48 percent of the votes, Moon was afore with 39.6 percent.

The turnout of voters was 77.2 percent. Making it the highest in 20 years.

Crushed Parliament

 

Moon is to be sworn in for a five-year term on Wednesday. But he said the showy inauguration ceremony is not necessary. Because he wants to start working straight away.

He will very soon name a prime minister. Also, a prime minister needs parliamentary approval.

In 2012, in the previous presidential election, Moon lost from Park. His ideas favor dialogue with North Korea about slowing down the tension over missile program.

He aims to renew important country’s conglomerates. Etc. Samsung and Hyundai; Afterwards, boosting fiscal spending to create more jobs.

Moon has criticized previous governments for failing to stop North Korea’s weapons uprising. And he thinks that is the subject of a huge matter for the country.

 

Moons victory was mainly supported by young people. Who saw his potential of changing the atmosphere. His supporters participated in huge, peaceful rallies during the previous months, asking Park to step off.

Only 22-25 percent of people in their 60s and 70s voted for Moon. Which shows clear generations gap in the country. And that is great, because it shows healthy appetite for changes, coming from the young people.

 

South Korea as a priority !

 

Moon, whose campaign promises include a “National Interest First” policy, has struck a chord with people who want the country to stand up to powerful allies and neighbors. He wrote in a book in January which says South Korea should learn to say “no to America”.

Following, Moon said that South Korea has to set to a more active diplomatic role about North Korea’s nuclear threat. By no means watch idly as the United States and China talk to each other.

He considers better inter-Korean relations are necessary to provide country’s security.

“Things are not right to resume the so-called Sunshine Policy, as the U.S. and China turned more hostile towards North Korea.” (Koh Yu-hwan, Moon’s foreign policy adviser)

 

THAAD system

Observing the bigger picture, Moon’s election could also complicate the growth of the THAAD system. U.S. military and Seoul agreed on this system about a year ago.

In conclusion, Moon said they made this decision too fast. And he thinks the next administration has to have the final say on whether to deploy it.

 

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Japanese Companies closer to higher profits; Due to Surging metal prices

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 Top 5 Important in Today’s Market:

 

  • Wall Street volatility index at 23-year low
  • Global stocks higher as traders look for next catalyst
  • Dollar powers ahead on June rate hike bets
  • Oil extends rebound as OPEC hints at supply cuts beyond 2017
  • Bitcoin tops $1,700 for first time

 

For more info on these 5 visit: www.investing.com

Main Economic Events today:

  • Australia Retail Sales MoM fell to actual -0.1% while predicted was 0.3%
  • United States JOLTs Job Openings rose to 5.743M, while expected was 5.655M

 

Mitsubishi & Mitsui

Heightened by elevating Iron one price, as well as the Coal prices, Japanese biggest trading houses (compared by assets) came back to profitability. In this financial year, at the end of March.

Many years Japanese top five trading houses were trying to change their businesses. In order to try diversifying their work into non-cyclical. But after long period of time they have confirmed and underlined the vulnerability and sensitiveness of their businesses. Because they still operate in ”the world of commodities”.

Regarding Today’s reports, Mitsubishi gave data about its profits. Which was 440 billion yen ($3.88 billion) in the last financial year. Rather than loss of circa 150 billion yen from previous year. While the second biggest trading house Mitsui reported a 306 billion yen profit. Which is up from an 83 billion yen loss, from year earlier.

 

Other Corps of the Japanese Big 5 family:

 

Today also, Sumitomo Corporation reported profit for the financial year went up for more than double. Taking off to over 170 billion yen. While Marubeni said their profit gain was a 150 percent, to 155 billion yen.

Itochu Corp, the least dependent among the big five trading houses on resources, last week reported record profit, partly driven by the rise in prices.

Their forecasts, for all the 5, are strongly positive for the following financial year. They also expect them to improve. Despite some prices decline trends in forthcoming weeks.

Japanese traders think that the China’s refreshed appetite for raw materials, would desirably lead to higher commodity prices. These opinion is also respected amongst the most global miners.

Regarding the year before, the top 5 trading houses gained up a total of about 1 trillion yen ($8.9 billion). These were in write-offs due to a slump in valuations. Mitsubishi and Mitsui were then announcing their first annual losses since they were founded. And they were founded after World War Two. Which represents them as very serious operating businesses.

 

Global trends

Observing the global trends anyway, commodity prices are very volatile.

The price of coking coal went up for more than three times. In period between March and late November 2016. Afterwards which it halved through March 2017. In the period of previous 2 months, iron ore prices have also came off roughly.

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Asian morning trade on May 9th

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Tuesday May 9 is a day when copper prices on the SHFE went higher, speaking about Asian morning trade . There is definitely some back up in the release of China’s better-than-expected trade balance. Anyway, gains were suppressed by concerns of weakened demand from the world’s largest copper consumer.

Price of the most active SHFE June copper was up 70 yuan ($10) to 44,720 yuan per tonne. Regarding as of 03:18 BST with around 11,510 lots changing hands so far. Open interest of the contract was at around 35,660 positions.

China’s trade balance

 

China’s dollar-denominated trade balance for April stood at $38.1 billion. This is exceeding a forecast of $35.3 billion. And especially March’s balance of $23.9 billion. That is a sign of healthy boost up in imports as well as the exports.

Every way, copper prices were under pressure after the release of disappointing import data from China. These data showed total copper imports into the Asian nation fell. And they fell to their lowest level since October 2016. China’s total copper imports for April fell 33% year-on-year to 300,000 tonnes. Making them down from 450,000 tonnes in the same month last year.

“This was tempered by a strong increase in copper concentrate imports, up 7% y-o-y nevertheless ongoing supply disruptions impacting concentrate availability. Everyway, the fall in refined copper imports revived concerns about weak demand at the world’s largest consumer.” (ANZ)

In the meantime, the dollar had a step back this morning – falling 0.03% to 99.11 as of 03:18 BST . Also giving fine support to base metals prices.


Nickel prices UP due to reduced output

Firstly, The SHFE September nickel contract surged 350 yuan to 74,550 yuan per tonne.
“Nickel prices have been under pressure throughout April. This increased market participants’ appetite for dip-buying. Specially on top of which, nickel’s output was largely reduced in April.”
Secondly, China produced 12,580 tonnes of nickel in April. Which is down exactly 3,220 tonnes y-o-y. And 770 tonnes from the prior month.

“Following, the market sees a low stainless steel inventory prone with traders. There was a wave of rallies in April to May 2015 driven by low availability of stainless steel stocks in traders’ hands. So they needed to build up stocks. It is possibly an indication of better nickel demand in recent future.”

 

Other base metals going positive

Thirdly, June aluminium price was up 15 yuan to 13,675 yuan per tonne. Observing the June zinc price, it rose 135 yuan to 21,905 yuan per tonne.

In the meantime, june lead price inched up 25 yuan to 15,945 yuan per tonne. Finally, the September tin price surged 1,590 yuan to 139,990 yuan per tonne.

Currencies & data

Speaking about oil prices and currencies, the Brent crude oil spot price declined 0.2% to $49.32 per barrel. While the Texas light sweet crude oil spot price was down 0.21% at $46.42.
Observing equities, the Shanghai Composite dipped 0.16% to 3,073.76.  In data, EU Sentix investor confidence for May was better than expected at 27.4 – smashing expectations of 25.3 and up from 23.9 previously. April’s US labour market conditions index was at 3.5, remotely under the precedent month’s reading of 3.6.

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Futures overview on May the 8th: Copper drops to 5-month low

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Today’s market had some very stressful outcomes. Volatility was huge, and main base metals and commodities prices were changing their movements unexpectedly, in a way that predictions were mostly positive.

 

Copper

Comex copper prices started trading in the new week at the lowest price since December. Among signs of weak global demand, focusing particularly on Asia. 
Speaking about copper for July delivery on the Comex division of the New York Mercantile Exchange fell 4.25 cents. Which is same as 1.7% to $2.4770 per lb. Earlier, the contract touched $2.4760 per lb. And it was the lowest since December 27.

Gold

Tracking precious metals, especially gold, Comex gold for June settlement was gaining $2.90 or 0.2% to $1,229.80 per oz.
Over the weekend, Chinese imports of unwrought copper and copper-fabricated products fell 4.4% year-on-year in April. Following, total imports for the first four months of 2017 were down 22.9% compared to the same period of last year. Generally, total imports in the first four months of 2017 of 1.88 million tonnes were down 22.9% year-on-year.

Chinese import demand, which was pretty weak, coupled. With mounting inventory stocks demonstrate soft global demand nevertheless the market moving into the summer months where consumption peaks.

“While we remain constructive on copper over the very short term, our final affinity has seriously been tempered by 1) the deterioration in the technical picture. 2) the negative micro dynamics. And 3) the continued poor investor conviction in the base metals complex,” (Metal Bulletin)

European market

In Europe, the election of Emmanuel Macron as the French president should lead to the stabilisation of the political scene. Malcolm Freeman, Kingdom Futures, noted:

“The new French president Macron will slightly calm European nerves. And unlike the USA and President Trump it looks it will be a case of no real change. Also the risk of the breakup of the EU has taken a step back which will meaningly calm investor’s nerves.”

Members of the metals industry gathered for LME Asia Week in Hong Kong this week, key topics was about launched discussion paper and finding a balance between traditional and new LME users.

Currencies & data


Firstly, The dollar index was up 0.39 to 98.96. Secondly, in data, US unemployment claims for April came in at 238,000. It is the amount below the forecast of 246,000. Thirdly, preliminary non-farm productivity and unit labour costs during the first quarter came in at -0.6% and 3%, respectively.
Following, EU Sentix investor confidence took a value at 27.4 for May. Which is up from 23.9 in the previous period.
Today is the day when UK Halifax house price index and BRC retail sales data will come out. US labour market conditions are also specific.

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Oil prices VOLATILE; firstly UP on positive expectations, then falling DOWN after overnight gains

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Top 5 things about Monday’s Market:

  • Macron cruises to victory in France
  • Euro SLIPS as Macron relief rally loses steam
  • Global stocks mixed; Europe trades lower after French election
  • Oil gives up strong overnight gains
  • China’s april exports, imports rise less than expected

More info on these 5 from: www.investing.com

Prices; Monday Overnight Gains

Saudi Arabia’s energy minister stated that OPEC is seriously discussing the idea to prolong output cuts. The extension of oil output cuts will happen in June. And it would also likely cover all the year long period of time. It will maybe even enter the 2018. Despite U.S. production and drilling which is constantly increasing their margins and profits, the oil sector is limited. And the U.S. drilling can’t be permanent.

Brent crude futures were at $49.48 per barrel at 0652 GMT (2.52 a.m. ET). That is up for 38 cents, or 0.75 percent, from their last close.

U.S. West Texas Intermediate futures were at $46.52 per barrel. Which is up 30 cents, or 0.7 percent from their previous price.

Energy Minister of Saudi Arabia Speaking

Today, Khalid-Al-Falih, Saudi’s energy minister explained that oil market is now rebalancing. After long years of oversupply and overstressed ambient on this market. He said they are still expecting OPEC’s decision to bring the bright trends for future oil prices.

“Based on the consultations I have had with participating members, I am rather confident the agreement will be extended into the second half of the year and possibly beyond.” (Reuters)

His speech was held during an industry event in Kuala Lumpur. In Malaysia’s capital, on Monday.

 

Exports:

The Organization of the Petroleum Exporting Countries  along with other producers, together with Russia, agreed to cut output by almost 1.8 million barrels per day (bpd) during the first half of the year. In ordet to prop up the stressed market. Saudi Arabia is de-facto leader of all the producing countries. With the biggest stake with its individual oil outputs.

 

The positive comments and upward prices came after a long last week’s plummeting trends, which pumped the negative speculations into the Oil market. The countries who are not included in this output cut deals, also contributed to low prices. Including the United States, where output is simply exalted. It has took off in recent period so strongly, that it has a huge impacts on market.

 

Bringing the decision

Next official OPEC’s meeting will be on May the 25th. And finally, decision on whether to continue the cuts will be brought out to light. Officially.

“Oil may have seen the worst of the selloff for now, as the market turns its attention to the OPEC meeting at the end of the month.” said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore. ( Reuters)

French Election Impact on Oil Prices

Some of the market participants say that the victory of Emmanuel Macron in the French presidential election against far-right Marine Le Pen also supported oil prices. Bringing the hopes of more stable European economy, which automatically added to positive speculations. And implemented great hopes into the markets.

Still, both Brent and WTI crude are holding below $50 for now.

U.S. drilling continued to pick up last week, with the rig count climbing by 6 to 703.

Since a low point in May 2016, U.S. producers have added 387 oil rigs, or about 123 percent, Goldman Sachs said. (Reuters)

 

Change of trends:

Finishing with info that Oil price again edged lower, erasing strong overnight gains !! U.S. crude was at $46,17 a barrel, down 5 cents, or around 0.1% . While Brent Shed 6 cents to $49.04!

Doing businesses in the markets these days (the upcoming week) would certainly be very challenging for all the race participants. Rather than last week, which was filled out with suspicions on whether the oil prices will go a bit higher & what would happen in European market.

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SHFE & Market today: May the 8th

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Important facts about today’s Market:

 

  • China Trade Balance (USD) rose to actual 38.05B while forecast was 35.50B
  • China Imports y-o-y fell to actual 11.9% while expected was 18.0%

 

 

Shangai Futures Exchange:

Copper price slided during Asian morning trading hours on Monday May 8. The performance of red metal was weaker, as well as the contracts on the London Metal Exchange.

“The pull-back of SHFE copper prices this morning was mostly impacted by the weakness in LME copper prices. This was a result of a build-up in LME copper inventory last week.” (Metal Bulletin)

The three-month copper contract on the LME was 0.98% or $55 per tonne lower as of 03:19 BST.

LME copper inventories were the highest since October 2016. They rose a net 36,800 tonnes to 354,650 tonnes on Friday May 5. This followed rises of 32,925 tonnes and 31,250 tonnes on May 4 and 3, respectively.

SHFE Copper tracks LME prices lower:

Firstly, LME copper inventories rose a net 36,800 tonnes to 354,650 tonnes on May 5. Secondly, deliverable copper stocks at SHFE-approved warehouses dropped 14,130 tonnes or 6% over the past week to 215,231 tonnes on May 5.
 “The fall down in SHFE copper stocks was happening due to the dip-buying from consumers. Anyway, as the copper price continued to hover at a low level. This made market participants show doubts as to whether the real demand could support the expanding inventories within consumers.” ( analyst from Guotai Jun’an)

 

Secondly, In supply news, Glencore reported lower copper production during the first quarter of the year due to its Antamina operation. The miner’s copper output reached 324,100 tonnes during the first three months of the year. It is a decline of 3% compared with the corresponding period of 2016.


Nickel prices jump off on immerse-buying: 

Thirdly, SHFE September nickel price soared 920 yuan to 73,920 yuan per tonne.
“The rally in nickel prices this morning was mainly a result of dip-buying following the falls seen last week.”

Following, last week saw nickel prices come under pressure amid the expectation of increased supply after the Philippines’ Commission on Appointments rejected Regina Lopez’ appointment. As the country’s environmental secretary. Lopez and her strict crackdowns on the Philippine mining industry were loosely regarded as important factors in keeping laterite ore export volumes from the Philippines low. Once the rainy season in the country had finally ended.

Aluminium prices slide down on rising stocks:

Speaking about Aluminium prices, the SHFE June price slipped to 13,755 yuan per tonne as of 03:18 BST. It is down 125 yuan from the previous session’s close. In addition,  aluminium stocks rose 12,327 tonnes to 403,905 tonnes on May 5.

“Aluminium is still consolidating after recent price jumps. Moreover, the market might be waiting in anticipation [of better prices] following aluminium supply-side reforms [in China. However, chances are that the actual deficit might not be as large as people expect.”

 

 

Currencies & Data:

 

The Brent crude oil spot price rose 0.67% to $49.73 per barrel while the Texas light sweet crude oil spot price was up 0.69% to $46.78. Following, the dollar index was up 0.16% at 98.74 on Monday as of 03:18 BST.

In equities, the Shanghai Composite dipped 0.61% to 3,083.99. 

  • US unemployment claims for April came in at 238,000, below the forecast of 246,000. Preliminary non-farm productivity and unit labour costs during the first quarter came in at -0.6% and 3%, respectively.
    • China’s April yuan-denominated trade balance stood at 262 billion yuan, beating both the forecast and the previous month’s balance of 197 billion yuan and 164 billion yuan, respectively.
    • While the country’s dollar-denominated trade balance for April stood at $38.1 billion, exceeding expectations of $35.3 billion and March’s balance of $23.9 billion.
    • UK Halifax house price index and BRC retail sales, EU Sentix investor confidence and US labour market conditions are due.

The EURO hit a seven-month high against the dollar after Emmanuel Macron won yesterday’s elections. This is a victory that should further boost the currency, as political concerns fade, and investors focus on the eurozone’s economic recovery.

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Emmanuel Macron is the new president of France!!!

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The Result

Emmanuel Macron was elected president of France. Sunday May the 7th with a business-friendly vision of European integration, defeating Marine Le Pen. Who is a far-right nationalist who threatened to take France out of the European Union. (Reuters)

The centrist’s emphatic victory, which also smashed the dominance of France’s mainstream parties, will bring huge relief to European allies. Who had feared another populist upheaval to follow Britain’s vote. Wanting to quit the EU and Donald Trump’s election as U.S. president.

The definite victory of french centrist Emmanuel Macron, who overbeated the other candidate.. Marie Le Penn, will bring huge diferences to the Euro system. And also have great impact on country’s policies.

 

AFP

According to preliminary estimates, of the AFP agency: Macron won between 65 and 66 percent of the votes. Which is a really astonishing result. Having in mind that the turnout was not so high.

He is the 39-year-old foregone investment banker. Who earlier served for two years as economy minister but has never previously held elected office. He will now become France’s youngest leader since Napoleon. His promise is to surpass outdated left-right disharmonies.

 

May the 7th

Today In France today was the day of final decisions, the second round of presidential elections. About 47 million voters called to choose between the pro-European candidate Macron and radical rightist Marine Le Pen.

The belgian newspaper “Soar”  announced earlier today that the Macron could win 60 percent of the vote, citing data from the four agencies for public opinion research.

The Belgian list didn’t stated how the voters backed the National Front leader Marine Le Pen.

Turnout in the second round of French presidential elections, which came out this afternoon stood at 65.30 percent, according to the French Ministry of Foreign Affairs. This is significantly lower than the 69.42 percent of how people voted at the same time in the first round two weeks ago.

Afternoon turnout at 17 hours is significantly lower compared to the same time in the first round on April 23, and in relation to the second round of the previous presidential elections in 2012, when the  71.96 percent of voters gave their vote.

By the afternoon turned out 28.23 percent of the electorate, which is almost the same as in the first round two weeks ago. In the first round of April the 23th, 28.54 percent of voters did not vote, which is almost the same response as today. Voters turnout today is a bit lower than in the second round of the previous elections in 2012, when he was two percentage points higher, or 30.66 percent.

 

Market impacts

 

The victory of the Emmanuel Macron will lead to a higher position of euro, which would definitely change climate in every aspect of financial markets.

Macron’s straight away idea will be to secure a majority in next month’s parliamentary election for En Marche! (Onwards!).  This political motion that is faintly a year old, in order to execute his program.

 

 

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World’s biggest IPO is coming: Aramco splits advisory roles, denominates Brunswick

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The markets are waiting for the biggest public offering in history to become truth.

“An IPO so big it will likely make any Silicon Valley unicorn look like a blip in the market.” (Forbes)

Aramco in Investors eyes

Investors will maybe have to wait another year or two, before Aramco goes public.

Some doubts on the high valuation of Saudi Aramco are certainly present. Because of high calculations. J.P. Morgan (Aramco’s loyal commercial banker) and Michael Klein (formerly of Citigroup) have been advising Aramco on the financial restructuring. Which is necessary for this process.

In the beginning, the IPO was expected to take place in early 2018. Later the expected date was pushed off to late 2018. Maybe even early 2019. This is likely due to Aramco’s desire to complete the financial restructuring process. In order to make the company more attractive to investors.

 

Consulting

Saudi’s crown jewel Saudi Aramco, has denominated advisory firm Brunswick to join FTI Consulting. All of that in order to run media and investor relations for what will be the world’s biggest initial public offering. (IPO)

This idea of selling parts of Saudi’s oil giant Aramco through IPO, came as a result of hopes it would raise company’s share sale. Also raising around 5% of the company’s value for about $100 billion. In 2018, ideas  are to list this 5% sale in several countries.

 

Brunswick

Brunswick was latterly denominated to run the external and media communications for the IPO. While U.S.-based FTI will focus on managing investor deals & relations.

Asked to give a comment on this subject, Brunswick spokeswoman refused to comment. Also FTI declined a request for comment. And finally Aramco refused giving any comments on this matter.

 

Possible stock exchanges for IPO

Mohammed bin Salman, Deputy Crown Prince, said Aramco is going to list its shares on the Kingdom’s stock exchange. As well as on one or more foreign stock exchanges, but did not reveal which one exactly.

Possible exchanges are London, New York and Hong Kong. Those may be the ones for the listing.

Aramco is asking governments of important countries, including China and large institutional investors convincing them to buy shares of the IPO. Although the full details of the listing, including Aramco’s size and value, are still unknown.

The $100 billion IPO price tag, is based on entire Aramco being valued at $2 trillion. Still, some analysts believe the ultimate valuation could be much lower. And that the real papers could show something which is well professionally hidden from the wide public eyes.

Noteworthy, Aramco is everyway one of the most profitable and largest operating giants in the world. Also it plays the biggest role in Saudi’s economy. The IPO should be very wisely done, because it will later have impact on company’s doing business.

 

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Last week’s review (LME)

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Base metal prices

After seeing a two-days smashing on the close, May the 5th was a widely better for base metals in the afternoon trade.

3-months nickel price went up on $125 per tonne; as it tried to compensate some of its biggest declines this week.

Friday’s copper’s price was fairly plane and was consolidating around the $5,540 per tonne mark. That was despite further LME inventory growth in friday, which brought the increase of stock over the last couple days to over 100,000 tonnes.

Copper market was impacted by the China’s financial tightening these days. It had a big impact on all the copper weekly prices.
“Friday’s base metal prices were soft but mostly holding above the lows established in Thursday. LME copper stocks increased another 37,000 tonnes. Noteworthy, these deliveries were largely priced. Seems like another tranche of merchant deliveries from Chinese smelter offtakes,”

Zinc and aluminium prices saw small increases, whilst lead and tin prices declined.

Copper falls slightly 

Friday:The three-month copper price saw a small decline of $2.50 to $5,540.50 per tonne. Copper did hit highs of $5,591 earlier in the say as it looked to consolidate after a $202 per tonne drops earlier in the week. Copper inventories rose a net 36,800 tonnes to 354,650 tonnes – the highest since October 2016. This follows rises of 32,925 tonnes yesterday and 31,250 tonnes on Wednesday. In supply news, Anglo American is taking steps to restart operations promptly at its El Soldado copper mine in Chile.

Nickel increased after two-day low trends

The three-month nickel price picked up $125 at the kerb – it finished trading at $9,140 per tonne. Nevertheless its positive increase at the close, nickel hit lows of $8,905 at one point in the day. Nickel had declined $555 per tonne over the past couple days during premarket trading but picked back up on friday afternoon.
Stocks were up 210 tonnes to 380,712 tonnes.
“Nickel led the sector lower as the market reacted to the failure of the Philippines environment minister to be confirmed by lawmakers. Ms Lopez had been spearheading the closure of the nickel mining industry due to new environmental laws.” (ANZ Research)
Market participants saw the appointment of Lopez as Department of Environment and Natural Resources secretary as a glimmer of hope for nickel prices amid a weakened Chinese stainless steel sector and a number of China-backed nickel pig iron projects coming on stream in Indonesia.  (FastMarkets)

Base metals start to consolidate: 

The three-month aluminium price was up $4 to $1,917 per tonne, after seeing little price movement this week.  Aluminium stocks fell 10,200 tonnes to 1,599,725 tonnes.  Zinc closed trading at $2,582 per tonne, an increase of $13. Stocks for zinc were down 2,025 tonnes to 340,450 tonnes.

The three-month lead price was down $10 to $2,181 per tonne.  Inventories fell 255 tonnes to 173,725 tonnes.
The three-month tin price dropped $275 per tonne after being unchanged this morning. It closed trading at $19,575 per tonne.  Stocks for tin remain around their lowest since 1980, falling another 140 tonnes today to 2,490 tonnes.
US data released  was largely in line with estimates, suggesting the economy continues to expand at a moderate pace, with the labour market continuing to tighten.
In the blockbuster April job’s report, 211,000 Americans entered the workforce. Which is above the 194,000 estimate and a recovery from March’s figure of 98,000. As a result, the unemployment rate ticked down to 4.4%.

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