To download the full report (PDF document) please click here COLUMN: Aluminium's slow fuse supply response: Andy Home
--Andy Home is a Reuters columnist. The opinions expressed are his own--
LONDON, Dec 20 (Reuters) - The sudden closure of the ZALCO aluminium smelter in the Netherlands attests to the squeeze on the light metal's production margins.
ZALCO, based in Vlissingen with an annual production capacity of 234,000 tonnes, began an orderly shutdown last Friday after running out of money to pay its electricity bills. Science, economics should be separate from policy: Kemp --John Kemp is a Reuters market analyst. The views expressed are his own--
LONDON, Dec 20 (Reuters) - The Environmental Protection Agency's draft report blaming hydraulic fracturing for contaminating drinking water in Pavillion, Wyoming, has triggered a furious pushback from the industry questioning the robustness of the agency's conclusions.
In an angry press release, the local gas field operator, Encana, blasted the conclusions as "irresponsible" and complained "many of the EPA's findings from its recent deep monitoring wells ... are conjecture, not factual and only serve to trigger undue alarm". Money the driver in Asia response to Iran oil: Clyde Russell
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
SINGAPORE, Dec 20 (Reuters) - It's often tempting to view the machinations of global oil markets through the prism of politics, ascribing actions to the strategic interests of the various states, but it's far more likely money is the driver.
That's not to say politics doesn't have an influence, witness the latest attempts by the United States and Europe to pressure Iran into giving up its nuclear ambitions. ENERGY: Brent rises above $107 on econ recovery hopes
SINGAPORE, Dec 21 (Reuters) - Brent crude futures rose above $107, gaining for a third straight day, after upbeat U.S. data pointed to a recovery in demand growth in the world's biggest oil consumer amid fears of a disruption in supplies.
"There are two main things that are solid indicators of a revival in the United States. One is employment and the other housing," said Tony Nunan, a risk manager at Mitsubishi Corp.
China end-Nov fuel stocks up, first rise in six months
BEIJING, Dec 21 (Reuters) - China's refined oil product inventories at the end of November rose 3.6 percent from a month earlier, the first rise in six months, the official Xinhua news agency said in a newsletter on Wednesday.
The country's commercial crude oil stocks at the end of November fell 1.34 percent from end-October, marking their second drop in a row after four consecutive gains, the China Oil, Gas and Petrochemicals reported.
Enbridge, Enterprise expand Gulf Coast pipeline plans
Dec 20 (Reuters) - Enbridge Inc and Enterprise Products are seeking to expand their U.S. Seaway pipeline network in the race to ease a crude oil supply glut in the Midwest by shipping it to the Gulf Coast refining hub.
The companies will be seeking binding commitments from shippers to expand their Seaway pipeline partnership, which will carry crude produced in Canada and North Dakota from Cushing, Oklahoma to Houston, Texas once it is reversed, according to a joint press statement released on Tuesday.
Japan Nov crude oil import volume down 8.9 pct
TOKYO, Dec 21 (Reuters) - Volumes of customs-cleared crude oil imports in Japan fell 8.9 percent in November from the same month a year earlier, hurt by the country's sluggish economy.
Imports of liquefied natural gas jumped 21 percent to their second-highest ever, however, as gas-fired power generation plugged the gap left by the shutdown of most nuclear reactors after the March earthquake.
S.Korea firms to invest $12 bln in oil, gas development next yr -gov't
SEOUL, Dec 21 (Reuters) - Over 50 state-run and private firms in South Korea, heavily dependent on energy imports, plan to invest a record-high combined $11.8 billion next year to develop oil and gas resources, the ministry of knowledge economy said on Wednesday.
The world's fifth-largest crude oil importer and second-largest liquefied natural gas (LNG) buyer has been boosting overseas resources development as like regional peers it grapples with inflation driven by costlier energy and commodities.
Petrovietnam PVEP to lift 2012 gas output -paper
HANOI, Dec 21 (Reuters) - Petrovietnam Exploration Production Corporation (PVEP) plans to produce 8.4 billion cubic metres (cbm) of natural gas in 2012, up nearly 3 percent from this year, a state-run newspaper reported on Wednesday.
PVEP also expects to lift a combined 8.79 million tonnes of crude oil and condensate next year, after crude oil production in 2011 reached 8.01 million tonnes (161,000 barrels per day), PVEP General Director Nguyen Vu Truong Son was quoted by the Vietnam Economic Times as saying. AGRICULTURE: Corn dips on S. America rain f'cast, soy steady
SINGAPORE, Dec 21 (Reuters) - U.S. corn fell, snapping three sessions of gains, while soybeans were little changed near a 4-week top on forecasts of rain in parts of Brazil and Argentina that had been hit by dry weather.
"If the rains come in significant total, then we may see this weather premium, which had started to creep its way into the market, erode," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia.
Blizzard in U.S. Plains disrupts beef output
CHICAGO, Dec 20 (Reuters) - The first blizzard of the season has dumped as much as 15 inches of snow in the southern Plains, disrupting beef production, and halting business in the cash cattle markets.
As the storm waned on Tuesday, crews were out clearing roads but icy conditions are likely to keep the movement of cattle slow, limiting supplies to meat packers.
Argentina plowing ahead with grains export reform
BUENOS AIRES, Dec 20 (Reuters) - Argentina's Agriculture Ministry is about to present a proposal to overhaul a system of corn and wheat export quotas that is unpopular with farmers, the farm minister said on Tuesday.
The center-left government of President Cristina Fernandez only grants export permits once it has registered sufficient wheat and corn stocks to guarantee affordable domestic supplies.
UAE to accept Canadian live cattle
Dec 20 (Reuters) - The United Arab Emirates has agreed to accept its first imports of Canadian live cattle in eight years, Canada's agriculture and trade ministers said on Tuesday.
The UAE market could be worth up to C$40 million ($38.8 million) in annual sales of Canadian live cattle, a Canadian government statement said. BASE METALS: Copper up slightly on improved U.S. outlook
KUALA LUMPUR, Dec 21 (Reuters) - London copper added to the previous day's sharp gains on Wednesday, as signs of growth in the United States and Germany raised expectations that demand for the industrial metal will increase.
"The U.S., by and large, is still an economy that's expanding," said Suan Teck Kin, a senior economist at UOB Bank Ltd. in Singapore.
Two cyclones expected to form off Australia this week
SYDNEY, Dec 21 (Reuters) - Two tropical lows off northern Australia could develop into cyclones in coming days as the La Niña weather pattern persists, but pose no immediate threat to mining and crop regions devastated by cyclones and flooding in early 2011.
The storms were forming as the Australian Bureau of Meteorology forecast that the La Niña event associated with early 2011's unstable weather across Australia was yet to abate.
China warns of trade risk in buying iron ore from Iran
SHANGHAI, Dec 21 (Reuters) - China's Ministry of Commerce on Wednesday warned domestic companies to be careful about importing iron ore from Iran due to commercial risks.
"We have received lots of complaints from domestic companies about fraud regarding iron ore imports, the ministry said in a statement.
Vale vows to stick to mega-vessel strategy
RIO DE JANEIRO, Dec 20 (Reuters) - Brazilian iron ore miner Vale has no plans to abandon its shipping strategy after major investments it has made in building its super carriers for ore, a senior executive said on Tuesday.
Vale recently announced it would sell some of the 35 so-called Vale-max or China-max ships it is having built, which prompted analysts to suggest the company was abandoning its ambitious plans to build the 400,000 deadweight tonne mega-ore carriers - some of the biggest ships in the world.
Anglo American says first ore shipped from Kolomela
LONDON, Dec 20 (Reuters) - Global miner Anglo American has exported the first shipment from the $1 billion Kolomela iron ore mine in South Africa, one of its key growth projects, putting the mine ahead of schedule and on track to achieve full production by 2013.
Kolomela, one of the projects expected to drive organic volume growth for Anglo, has been commissioned five months ahead of schedule and on budget, the miner said.
BHP sells Chidliak diamond stake, EKATI under review
LONDON, Dec 20 (Reuters) - BHP Billiton , the world's largest miner, will sell its majority stake in the Chidliak exploration project in northern Canada to partner Peregrine Diamonds , less than a month after announcing a review of its diamond assets.
BHP, which has said it wants to focus on large, scaleable assets, said on Tuesday Peregrine would pay BHP C$9 million ($8.7 million) over three years and grant the mining giant a two percent royalty on future production from the operation. STEEL NEWS: ArcelorMittal scraps deal to buy stake in Thai G Steel
BANGKOK, Dec 21 (Reuters) - Shares in G Steel Pcl fell sharply on Wednesday after the debt-ridden Thai company said ArcelorMittal SA , the world's top steel maker, had pulled out of a deal to buy a stake in it.
G Steel, Thailand's second-biggest steel maker by capacity, told the stock exchange it had received a notice from ArcelorMittal that the deal was off because all the conditions had not been satisfied. PRECIOUS METALS: Gold hits one-week high on upbeat US, German data
SINGAPORE, Dec 21 (Reuters) - Gold rose to a one-week high, extending gains from the previous session, as upbeat economic data from the United States and Germany boosted market sentiment and a weaker dollar lent support.
"The rebound in gold today is related to the currency market," said Dick Poon, manager of precious metals at Heraeus in Hong Kong. "But we don't see much fresh buying from investors as the year end nears." GLOBAL MARKETS: Stocks, euro rise on upbeat data, Spanish auction
TOKYO, Dec 21 (Reuters) - Asian stocks and the euro rose after upbeat U.S. and German data and strong demand for Spanish debt tempered risk-aversion, with investors' focus turning to a European Central Bank tender as a gauge for euro zone funding strains.
"Several supportive factors temporarily relieved concerns that the euro zone debt crisis may deteriorate, but they are merely providing a one-off floor, with a real turnaround still nowhere near in sight," said Hirokazu Yuihama, senior strategist at Daiwa Capital Markets. CHART OF THE DAY: SPOT GOLD RETURNS ABOVE 200-DAY MOVING AVERAGE BEYOND THE HEADLINES: China shows no qualms over price of Iran oil showdown
BEIJING/SINGAPORE, Dec 20 (Reuters) - China has made an audacious move to force Iran to sell it cheaper crude, disrupting the flow of over 10 percent of the Islamic Republic's exports by cutting January imports in half.
In contrast to other top Asian buyers worried about what sanctions mean for crude flows from the world's fifth-largest exporter, China has shown no public qualms about the risk that a disruption will drive up the cost of oil.
Freeport pay hike may lead to more mine unrest
JAKARTA, Dec 20 (Reuters) - As the longest-running strike in Indonesia's mining industry draws to a close, mine owners need to brace themselves for a spate of copycat pay disputes, an official from the Indonesian Mining Association (IMA) said on Tuesday.
Workers at Freeport McMoRan Copper & Gold Inc's Grasberg copper and gold mine -- the world's second-largest copper pit -- are due to return to work later this week after securing a 37 percent pay increase over two years, ending the three-month strike. | |
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