India join the EU in attempts to slow down the import of aluminium and copper into the country
Crude oil prices closed 1.92% lower this week after gaining nearly 10% to close above the $40 mark
U.S. steel production rate is 20.1% down year-to-date, compared to the same period from last year
Copper prices fell 4.65% this week to follow the vast majority of other commodities lower. Crude oil prices also closed lower, nearly 2%, but still managed to force a close above $40 per barrel. Silver price crashed nearly 15% to log the 2-month low.
Copper imports limited
India aims to slow down the import of aluminium and copper into the country. On the other hand, oil prices moved up as several oil companies failed to reach their output cut targets. Also, the U.S. steel sector’s capacity utilization rate plunged after being on the rise for several past months.
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India is looking to follow the footsteps of the European Union and limit the influx of aluminium and copper entering the country. For this reason, India has issued an import surveillance program that will demand from importers to record and report their import levels, said Stuart Burns from MetalMiner.
“Only by accumulating hard data can the country develop sensible policies, promoters of the scheme argue,” he said.
“As such, China, Japan, Malaysia, Vietnam and Thailand are among the major exporters of copper. Those countries accounted for 45% of India’s $5 billion in copper imports for 2019-2020, the article reports.”
Copper mine output was also hit by the pandemic, especially in Peru. The output slipped 1% in the first half of the year, according to reports by the International Copper Study Group. Mine production in Peru plunged by 20% in H1 2020. Moreover, the output levels sank 38% from April through May, after shutdown measures because of the pandemic and unfavourable weather conditions.
Copper weekly chart (TradingView)
Burns said the logistics sector is full of uncertainty and high expenses. Individuals who cheer for the idea of a “decoupling” of the U.S.-China trade relationship, can slow down as this will likely be the case for the time being.
“A fair part of the current pressure on shipping space and costs is coming from increases in trade between Asia and the U.S.,” Burns said.
“The pandemic has spurred demand for Chinese-made goods from electricals like laptops and associated electronics to PPE equipment, including masks and gloves.”
Copper prices dipped over 4.5% to close below the important support line at $3.00. The bearish close has now opened the door for a deeper correction to $2.80 and $2.68.
Focus on oil output levels
Oil prices have recovered from its low levels earlier this year, but still lower than its 2019 levels, even after OPEC+ ordered output cuts. While this decision has contributed to price stabilization, some oil manufacturers haven’t strictly complied with reduction mandates.
“The incentive to cheat is huge,” Burns explained. “The sense by many smaller players that they suffer from output agreements more than the ‘big boys’ breeds a sense of resentment at times.
Burns noted that this is especially the case with parties that have nothing else in common except an intention to increase oil revenues.
Crude oil weekly chart (TradingView)
“So, the Saudi oil minister’s thinly veiled dressing down of OPEC partners UAE, Nigeria and Iraq for overproducing is met with protestations but little in the way of immediate compliance.”
Brent crude has bounced back in the past three months and stayed near the $40 a barrel mark, after oil traders pushed the “black gold” under $13 a barrel earlier this year. Crude oil prices closed the week 1.92% lower, a week after gaining nearly 10% to close above the $40 mark.
In case the fundamental aspect of the industry improves, crude oil prices could eventually exceed $50 before the end of the year.
Steel capacity utilization rate falling
The United States steel industry capacity utilization rate has also dipped last week, after being on the rise for most of the time in the past several months. For the week through September 19, the steel capacity utilization rate dropped to 64.5% from 65.1% last week.
U.S. steel production rate is 20.1% down year-to-date, compared to the same period from last year. In spite of weak domestic demand, India is now a net exporter of steel to China and other countries.
Steel Rebar weekly chart (TradingEconomics)
Indian steel manufacturing companies exported around 80% of their output in the period from April to August. During that same period, China accounted for 45% of India’s total steel exports.
Steel prices have fallen in September, just a few weeks after printing the annual high near $3,800.
India is planning to curb the import levels of aluminium and copper into the country just like the E.U. Elsewhere, oil prices have bounced back up after some oil producers failed to hit their output reduction targets. Furthermore, the U.S. steel sector’s capacity utilization rate also dipped after climbing for several past months.
Pernod Ricard (Paris:RI):
The Pernod Ricard Corporate Foundation, successor to the Ricard Foundation created 22 years ago to support the young contemporary French scene, will open its doors to the public on Saturday 6 February 2021.
This new multidisciplinary venue, whose development was entrusted to the firm NeM / Niney & Marca Architectes, is located at 1 Cours Paul Ricard at the forefront of the new global headquarters of the eponymous Group, right in the heart of the French capital and the Saint Lazare district. It boasts a main exhibition space of 300m2, as well as a 130 seat auditorium and a modular lobby that can accommodate performances or one-off installations.
Café Mirette will provide a warm and welcoming meeting place for all art lovers. The space will open onto a large terrace accessible to the public, the Paul Ricard courtyard.
The Ricard Foundation became the Pernod Ricard Foundation on 1 July 2020, and is the successor to the patronage of contemporary art developed by the Ricard company for more than twenty years. It is now beginning a new chapter in its history and adopting an international outlook. The Foundation will operate as a platform serving and in direct contact with artists, in order to showcase the emerging scene, in Paris and beyond, in particular by making greater use of the resources offered by a global group with 86 subsidiaries.
Since opening in Paris in 1998, the Foundation has featured more than 1,000 artists invited by 250 curators as part of 150 exhibitions. Not having its own collection, its identity is shaped by those who bring it to life on a daily basis – artists, curators, authors, intellectuals, etc., thereby reflecting the diversity of creation and pulsating to the rhythm of its many forms.
In this new setting, the Pernod Ricard Foundation will roll out what is, according to its Director Colette Barbier, a "pioneering and audacious” programme of solo and group exhibitions and will offer series of encounters dedicated to artistic performance, poetry and debates on social issues. Open to the city and its neighbourhood, the Foundation will retain its human scale, promoting encounters and interaction, and will continue to be, as it always has been, accessible to all free of charge.
Finally, we also deliberately wanted to place this project within the Group’s new global headquarters in order to make contemporary art part of the daily lives of the 900 employees who work at The Island, as well as the 3,000 colleagues from around the world who visit us every year. In the future, employees will be working in direct contact with the artists and their creations – a permanent source of mutual enrichment and inspiration.
Alexandre Ricard, Chairman & CEO of Pernod Ricard and President of the Foundation, said "The opening of the Pernod Ricard Corporate Foundation marks a new milestone in our Group’s history, a symbol of our enduring commitment to creation and our values of transmission. We are delighted to be able to offer a new artistic venue in Paris, at the heart of the vibrant Saint Lazare district, that will contribute to the dynamism of the capital’s cultural scene and to the conviviality that we want to share. I look forward to being able to meet artists, creators and art lovers on a daily basis. They will be a source of inspiration for our 900 employees on-site, and their interaction will be the source of wonderful creations and magnificent encounters.”
About Pernod Ricard Pernod Ricard is the world’s No 2 in wines and spirits with consolidated sales of €8,448 million in FY20. Created in 1975 by the merger of Ricard and Pernod, the Group has undergone sustained development, based on both organic growth and acquisitions: Seagram (2001), Allied Domecq (2005) and Vin&Sprit (2008). Pernod Ricard, which owns 16 of the Top 100 Spirits Brands, holds one of the most prestigious and comprehensive brand portfolios in the industry, including: Absolut Vodka, Ricard pastis, Ballantine’s, Chivas Regal, Royal Salute, and The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Malibu liqueur, Mumm and Perrier-Jouët champagnes, as well Jacob’s Creek, Brancott Estate, Campo Viejo, and Kenwood wines. Pernod Ricard’s brands are distributed across 160+ markets and by its own salesforce in 73 markets. The Group’s decentralised organisation empowers its 19,000 employees to be true on-the-ground ambassadors of its vision of "Créateurs de Convivialité.” As reaffirmed by the Group’s strategic plan, "Transform and Accelerate,” deployed in 2018, Pernod Ricard’s strategy focuses on investing in long-term, profitable growth for all stakeholders. The Group remains true to its three founding values: entrepreneurial spirit, mutual trust, and a strong sense of ethics, as illustrated by the 2030 Sustainability and Responsibility roadmap supporting the United Nations Sustainable Development Goals (SDGs), "Good times from a good place.” In recognition of Pernod Ricard’s strong commitment to sustainable development and responsible consumption, it has received a Gold rating from Ecovadis. Pernod Ricard is also a United Nations’ Global Compact LEAD company. Pernod Ricard is listed on Euronext (Ticker: RI; ISIN Code: FR0000120693) and is part of the CAC 40 and Eurostoxx 50 indices.
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