On this week's Platts Market Movers Asia with Associate Editor Vickey Du: top leaders from Asia are expected to join US President Joseph Biden's climate summit Apr 22-23. Over the weekend, the US and China released a joint statement committing to tackle the climate crisis.
More highlights in the commodities market:
* Japan expects jet fuel demand to rebound ahead of Golden Week holiday
* Jet fuel flows from Asia to US seen to gain momentum
* Wheat feed use in China raises concerns over corn, soymeal demand
* Spike in COVID-19 cases surges in India seen dampening coal demand
This week: we'll take a look at jet fuel flows from Asia to the US, India's coal demand amid a fresh surge in coronavirus cases, and the price gap between wheat and corn.
But first, top leaders from Asia are attending US President Joe Biden's virtual climate summit on April 22 and 23. The summit is expected to mark a turning point in the global climate battle with the US taking the lead.
The re-emergence of the US in tackling climate change is critical to how Asian countries frame the climate debate and create policies within their own borders. It also heavily influences the economic and political drivers that will require Asian countries to pull their weight. Asia's positioning in the climate debate will in turn be critical to the evolution of markets for petroleum, natural gas, coal, power, renewables, hydrogen and carbon in the coming years. Ahead of the summit, China and the US released over the weekend a joint statement, committing to tackle the climate crisis.
As the world shifts to a low-carbon economy, make sure to check out the Platts Atlas of Energy Transition, produced in collaboration with S&P Global Market Intelligence.
In oil, market participants the region will be closely monitoring Japan's transportation fuel consumption trend. Japanese refiners see the latest measures to curb the spread of COVID-19 in several areas could negatively impact domestic gasoline demand during the Golden Week Holiday. On the other hand, jet fuel demand is expected to rebound. All Nippon Airways, Japan's largest airline, sees its Golden Week domestic passenger flights reservations over April 28-May 5 at 40% of the demand level during the same holiday period 2019. But this still marks a significant improvement from the same period in 2020.
Looking at the wider market, flows of jet fuel from Asia to the Americas are expected to gain momentum. This flow is seen as crucial to help mop up surplus barrels in Asia. Jet fuel demand is improving in the US as air traffic has been picking up. Fresh waves of COVID-19 in Asia, however, keep the region's aviation scene depressed, with rigid travel restrictions in place weighing on jet fuel demand.
Get more detailed information on this and on the wider oil complex at the complimentary Platts APAC Oil Forum – all happening online – on April 20.
In the meantime, here's our social media question this week: When do you expect jet fuel demand in Asia to fully recover? Share your thoughts with hashtag PlattsMM.
Turning to agriculture, the rise in wheat feed use in China has raised concerns over demand for other feeds such as corn and soymeal. Market will continue to monitor the price gap between corn and wheat. Moreover, the reports of fresh ASF outbreaks raises question over feed demand in China. Any fresh cases of ASF can temper the current upward movement of soybean prices.
And rounding up this episode, we take a look at coal.
India's seaborne demand is expected to show signs of slowdown as the country grapples with a spike in COVID-19 cases. Indian end-users are cautious in their buying, dampening any serious buying activities for Australian high ash thermal coal. `
Chinese demand, on the other hand, is expected to remain strong. There has been a sudden uptick in inquiries for May to July cargoes as domestic prices are on the rise.
Thanks for kicking off your Monday with us. Have a great week ahead!