Metals &Mining Alert-Daily prices and news:China hikes lending rates to mitigate outflows

类型：行业研究机构：德意志银行研究员：Jorge Beristain,Chris Terry 日期：2017-02-09

Industrials (/lb): aluminum $0.83 (+0.3%), copper $2.62 (-1.9%), lead $1.05(-0.6%), molybdenum $6.80 (+0.0%); nickel $4.64 (-1.6%); zinc $1.27 (-1.9%);Precious (/oz): gold $1,220 (+0.4%), silver $17.51 (+0.1%); Steel (/mt): ChinaHRC $565 (+0.2%), SHFE Rebar $462 (-4.7%), MB Scrap Index $233 (+4.0%);Bulks: iron ore (/dmt) $81 (-3.2%), coking coal (/mt) $172 (-0.3%), freight (BCI)981 (-7.8%); Energy: Brent (/bbl) $56.80 (+0.4%), WTI (/bbl) $53.83 (+0.5%),natural gas (/mmBtu) $3.06 (-3.9%), thermal coal (/t) $83 (+0.3%).

    People’s Bank of China (PBoC) raises short-term lending rates. Rates for seven,14- and 28-day reverse repurchase agreements were increased by 10 basispoints each to 2.35%, 2.5% and 2.65%, respectively. This follows a 10bpsincrease in medium-term lending rates (six-month and one-year), announcedon 24th Jan. We believe the current round of rate hikes underline PBoC’sdetermination to contain financial risks and reducing capital outflows.

    (Bloomberg Finance LP, DB).

    American Eagle gold coin sales at 117k oz in January (+300% MoM, -6% YoY).

    Silver coin sales data for January at 5.1m oz (-14% YoY). (Sharps Pixely)Chinese gold imports from Switzerland rise multifold in December to 158 tons(vs. 31 tons in November). Rising corporate and individual demand ahead ofthe Lunar New Year and a possible central bank purchase to diversify foreignreserves could have caused the surge, per economists. Meanwhile, Chinesegold consumption dropped to 975 tons in 2016 (-7% YoY). (Reuters)US oil & gas rig count rose 17 WoW to 729 (+158 YoY) for the week ending2/3. Rise was driven by oil-directed rigs which rose to 583 (+17 WoW, +116YoY) while natural gas rigs were steady at 145 (flat, +41). Canadian countdecreased two WoW to 343 (+101 YoY). (Baker Hughes).

    Iron ore exports from Australia’s Port Hedland hit an all-time high of 40.3mt inJanuary (+19% YoY), as producers ramped up output despite weather issuesimpacting shipping operations. The port primarily handles output from BHPBilliton and Fortescue Metals. (Bloomberg Finance LP).

    US scrap market firms on dealer resistance. February scrap buy negotiationscontinued for all regions except Detroit and Northeast on supplier resistance ina firming market. Scrap prices for Detroit were down by $25/lt and $10/lt MoMfor shredded and prime, respectively. Platts assessed US Midwest shreddedscrap at $280-$290/lt delivered mill on Friday. (SBB).

    Pretium Resources accelerates commission of Brucejack Mine to March/April(vs mid-2017 prior) at revised $811m capex (+16%). Average annual goldproduction of ~504k oz for first 8 years of mine life (18 year total) implyingcapex of ~$1,610/oz. At DBe $1,200/oz gold, annual EBITDA ~$750/oz. SilverStandard maintains a ~10% stake in Pretium (Company, DB).