Symax Fintech Daily Market Insights 12.09.23

Despite an 80% drop in gas prices, cutbacks in industrial usage are lingering in a sign that a deeper malaise is setting in. Gas demand across Europe’s industrial landscape this year is projected to remain about 20% below 2021 levels, according to data from S&P Global Commodity Insights. BB

Europe set for light autumn refinery maintenance as fuel markets tighten – European oil refiners are set to have an autumn maintenance season less busy than usual, analysts and traders say, as they try to capture higher profit margins amid low fuel inventories and robust demand for gasoline and diesel. A lower refinery maintenance schedule means Europe will be less reliant on fuel imports at a time when global prices are elevated. It also means that refiners that remain online will have to snap up crude at higher prices and hence might face lower profits. 

Saudi Aramco to supply full oil volumes to N.Asia refiners – Saudi Aramco has notified at least five North Asian buyers that it will supply full contractual volumes of crude oil in October, sources with knowledge of the matter said on Monday, despite extended voluntary output cuts pledged by the Kingdom. The world’s top oil exporter last week said it would prolong the 1 million barrels per day unilateral cut to the end of the year, driving up benchmark Brent crude above $90 a barrel for the first time this year.

Argentina’s domestic soybean sales soar after federal currency boost – Soybean sales in Argentina totaled almost one million metric tons in the last seven days, the Buenos Aires grains exchange said on Monday, as farmers take advantage of a federal price-boosting initiative. The figure is well above the nearly 240,000 tons of soybeans sold over the last week of August across the South American country, which is one of the world’s largest exporters of processed soy oil and meal.

Russian wheat export prices dip, deal reported below AgMin “floor” – Russian wheat export prices inched lower last week, tracking global benchmarks, as analysts continue to raise crop and export forecasts for this season. The price of 12.5%-protein Russian wheat scheduled for free-on-board delivery in October was $240 per metric ton last week, down from $245 a ton week earlier, the IKAR agriculture consultancy reported.

Share of Russian aluminium in LME-registered warehouses steady at 81% – The share of available aluminium stocks of Russian origin in London Metal Exchange-approved warehouses remained steady in August versus the previous month at 81% of the total while the actual volume declined, data on the exchange’s website showed. Total aluminium stocks available to the market in LME-registered warehouses are referred to as on-warrant. Warrants are title documents conferring ownership of metal. 

Russia’s largest untapped copper deposit starts concentrate production – Copper concentrate production started at Russia’s largest undeveloped copper deposit on Monday following a ceremony overseen by President Vladimir Putin via video link. The long-awaited Udokan project in Russia’s far east is coming on stream at a challenging time. The United States imposed sanctions on its operator – Udokan Copper LLC – in April as part of a wave of restrictions placed on Russia due to its activities in Ukraine. 

Feedgas flows to U.S. Freeport LNG drop sharply -LSEG data – Feedgas flows to Freeport LNG, the second-largest U.S. liquefied natural gas exporter, dropped sharply over the weekend and remained down for the third day in a row on Monday, LSEG data showed. Input levels on the pipeline serving the facility showed feed levels had fallen to 702.9 million cubic feet per day on Sept. 9 and dropped further to 284.3 mcf/day on Sept. 10, down from 1,640.3 mcf/day Sept. 8, LSEG data showed. 

Colombia mulls making Ecopetrol mandatory partner in offshore wind farms – Colombia’s government is considering revising rules to make majority state-run energy company Ecopetrol an obligatory partner in every offshore wind project, three people familiar with the matter told Reuters. The Ministry of Mines and Energy will consult businesses interested in taking part in Colombia’s first-ever offshore wind auction about the proposal, one of the sources said in recent days, adding that feedback so far has been positive. 

Argentina insists on key river tolls amid criticism from neighbours – Argentina must collect tolls on a crucial waterway, the country’s energy chief said on Monday after meeting with Paraguayan officials, as a multi-nation conflict over fees for ships carrying grains and other exports intensifies. Paraguay, Brazil, Bolivia and Uruguay are urging Argentina to stop applying the tolls, arguing they restrict navigation on South America’s mighty Paraguay-Parana rivers.

South Korea’s NOFI tenders for about 130,000 T feed wheat – Leading South Korean feed maker Nonghyup Feed Inc. has issued an international tender to purchase up to 130,000 metric tons of animal feed wheat, European traders said. The deadline for submission of price offers in the tender is also Tuesday, Sept. 12.