In this week's Market Movers Asia with Tanya Kalra:
- Key Chinese aluminum hub in spotlight
- China's steel exports seen declining
- Oversupply lowers price in Asian thermal coal market
- China's LNG price fall may attract demand
- Container markets await impact of GRIs
- Malaysian palm oil prices seen under pressure
This week, aluminum markets will be closely monitoring the resumption of smelters in China's Yunnan province as water availability is seen rising in June, after severe water shortages hampered hydroelectric power supply in the area.
Chinese steel exports are expected to decline in the coming months, as overseas orders, that started shrinking since March, have shown no signs of improvement so far as global demand remains sluggish.
Over in Asian thermal coal, demand for seaborne coal will be in focus as muted demand in spot markets have kept prices suppressed.
Natural gas demand in China is likely to pick up with the fall in Asian LNG spot prices, however, experts believe a steeper drop may be needed for any substantial demand to emerge amid challenging economic conditions.
In containers market, freight rates from Southeast Asia and Indian subcontinent are expected to remain stable as market participants watch any impact of the general rate increase, imposed by the carriers. Earlier attempts to impose GRIs in this market have failed as demand from the west remains weak, forcing carriers to operate at or below the break-even levels.
Malaysian palm oil prices are likely to continue to trade on lower levels after touching an 8-month low recently due to muted demand, competition from Indonesia, and weak prices globally. Higher expected output for the month of May, is also expected to add to the price pressure.
I'm Tanya Kalra, thank you for kicking off your Monday with S&P Global Commodity Insights