Tag Archives: basic material

China’s Coal War With Australia’s Domestic Fuel Shortage | Instant News


HONG KONG – China Australian coal import ban is intensifying the crisis in the coal market, which is battling price hikes, shortages of supply, conflicting policy objectives, and a cold winter.

Locked in a diplomatic fights on Canberra’s call independent global investigation to the origins of Covid-19Beijing imposed an unofficial ban around September that forced Australian coal ships to languish at sea. China’s central government imposed a formal embargo at a mid-December meeting with China’s main power producers, which are big buyers of thermal coal.

The ban complicates a supply crisis that the meeting had to resolve, according to government reports and state media. China is short on thermal coal and officials are urging companies to import more – from anywhere but Australia, China’s biggest supplier. To meet this, buyers in China have to pay a high premium for imports from distant places, in addition to prices which have increased 84% since mid-year.

“Coal buyers are nervous about the import market,” the China Coal Transport and Distribution Association, which represents importers, said in a statement. “It is difficult to replenish low coal supplies and shortages, while demand continues.”

From Norwegian salmon to Mongolian commodities, Beijing has in recent years increasingly used the weight of Chinese purchases to apply political pressure abroad – but the coal market shows that this strategy could backfire. Even when Chinese buyers comply with Beijing, Australian coal prices strengthen as other buyers from major coal consuming countries, including Japan and India, step in.

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Australia Considering New Covid-19 Quarantine Strategy: Inland Isolation | Instant News


SYDNEY – Australia relies on one of the world’s countries the most aggressive quarantine program to prevent the corona virus. Now, a leader wants to go a step further by accommodating returning travelers in Outback camps away from cities as the new Covid-19 variant threatens the country’s success.

The Queensland state premier wants to reuse the camps designed for resource workers as isolation centers in remote scrub where temperatures can reach 100 degrees Fahrenheit. It follows an outbreak of the highly contagious coronavirus at a quarantine hotel in the state capital of Brisbane, Australia’s third-largest city with a population of around 2.5 million people.

“I think with this new tension, we have to put all the options on the table and this is a sensible and rational option,” said Annastacia Palaszczuk, who was re-elected as Queensland’s prime minister in late October partly because of her center-left government. crackdown to tackle Covid-19.

The idea of ​​using remote camps illustrates how leaders in places that have contracted the virus are considering more extreme measures to protect people from a new variant of the corona virus, which emerged in Britain and South Africa and has since spread to more countries. Currently, travelers returning to Australia are housed in hotels, often close to city airports, for 14 days.

Queensland was running nearly four months with no cases of local transmission when cleaners at a quarantine hotel in Brisbane tested positive for the new British variant. More cases followed, and the 129 people in isolation were immediately transferred to another hotel and their quarantine was extended.

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Fatal Landslides in Brazil Pushing Iron Ore Record Towards | Instant News


SYDNEY – Iron ore prices soared to a record as a landslide at a Brazilian iron ore mine raised concerns about supply and demand in China getting hotter.

Iron ore prices jumped 7.8% to $ 176.90 a metric ton on Monday, the highest since September 2011 and nearly doubled its value at the start of the year, according to data from S&P Global Platts.

Iron ore, the main ingredient of steel, is one of the most traded commodities in the world among the best performing assets of 2020. It is currently less than 10% of the record price of $ 193 per tonne reached in February 2011.

Landslide last week at

Valley SA

VALLEY -2.13%

The Córrego do Feijão mine, which killed a worker, has raised renewed concerns about supplies from Brazil. Shipments from the country – the second largest iron ore exporter, after Australia – have not fully recovered from a previous waste dam collapse and pandemic-related disruption to port and rail facilities.

The city of Brumadinho, in Brazil’s Minas Gerais state, where the Córrego do Feijão mine is located, has suspended Vale’s operating license for seven days, Vale said. It is the same part of Brazil where the dam exploded in 2019, killing 270 people.

“Being close to where the original dam failure occurred, the market is becoming increasingly concerned that Vale will struggle to reach new, lower targets for production,” said Daniel Hynes, senior commodity strategist at

Australian and New Zealand Banking Group Ltd.

The market was caught up this month when Vale said it would fail to meet its previous production target for 2020 and set its 2021 goal well below analyst expectations, Hynes said. Vale produces about 20% of the world’s iron ore which is traded by sea.

There are also concerns about supplies from Australia as the country enters its annual cyclone season, while China – the biggest iron ore buyer globally –has targeted commodities ranging from coal to wine with tariffs and other import restrictions as part of a broader diplomatic dispute.

“It’s no wonder the market places a supply risk premium on current prices,” said Hynes.

The stimulus in China and relatively low prices for metallurgical coal, also used to make steel, have given mills the flexibility to pay more for iron ore, the Australian government said in a report Monday.

China produces more than half of the world’s steel, and has recently produced it at near record rates. Its crude steel production totaled 92.2 million tonnes in October, up 13% on the same month a year earlier, according to the World Steel Association. November data will be published later Tuesday.

Several analysts raised their iron ore forecasts in recent weeks as prices rose.

JP Morgan

raised its 2021 price forecast by 20% to $ 126 per tonne, citing strong Chinese steel production and a softer-than-expected production forecast from Vale.

“China’s data continues to improve,” JP Morgan analyst Lyndon Fagan wrote in a Dec. 14 note. Gauges of Chinese manufacturing and non-manufacturing activity recently posted their highest levels in three and eight years, respectively recoveries that expand in the second largest economy in the world.

Speculators have also sparked a rally, analysts said.

Jefferies Financial Group Inc.

on December 10 forecast iron ore prices will peak between $ 180 and $ 200 per tonne in the first quarter of 2021.

However, commodity steelmaking prices will retreat in the next year as Chinese demand cools and supply recovers, said Capital Economics analyst Samuel Burman. He estimates the price will return to $ 100 per tonne by the end of next year.

Citigroup Inc.

has the same forecast for end-of-2021 prices, although the bank expects iron ore to remain above that figure over the next few months due to a shortage of supply. “The expected surplus after 2022 will put prices on a downward trend from cyclical highs,” Citi said in a note.

Write to Rhiannon Hoyle at [email protected]

Copyright © 2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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‘This is not a natural disaster. It’s an election ‘— Americans are hoarding cash, gasoline, and food to prepare for a possible Election Day riot | Instant News


For Maine resident Laura Hunter, preparing for Election Day does not involve creating a voting plan. He chose two weeks early.

Instead, to prepare for November 3, he prepared what some Americans see as the worst-case scenario: civil unrest or widespread violence after Tuesday’s presidential election. For about a month now, Hunter, who voted for Democrat Joe Biden, has been building up a supply of food and cash. He even bought a butane stove when the power went out.

“I have what I think I need for a week or so,” Hunter, 65, said.

In Arlington, Va., Maresa Ciaravella, a 30-year-old mother, has confirmed that her and her husband’s car has a full tank of fuel in case they need to evacuate on short notice.

Ciaravella and her husband are working remotely because of the pandemic. They each have extensive home office settings, and their son attends child care. All of that makes it impossible to go somewhere that might feel safer ahead of the election, Ciaravella said.

“We are not sure where we are going or even what will be our ‘tipping point’, but we at least want to be ready with the option of going,” Ciaravella said. “This year has shown that anything is possible and that nothing is wrong, so being prepared for anything has become very important to us.”

Ciaravella, who said she could not disclose who she chose because of her job, said some of her concern stems from witnessing other protests recently, including those related to the Black Lives Matter movement and the push to reopen businesses in Virginia and Maryland amid the virus pandemic corona.

“The safety of my child is my first priority and I never thought that the presidential election would scare me for his safety,” he said. “It might just highlight my privileges, but it’s true.”

Hunter, on the other hand, pointed to President Donald Trump’s recent rhetoric as a source of concern, arguing that the president wanted to “turn all his supporters into a frenzy.”

Americans worry about possible election-related violence

Concern about electoral violence appears to be pervasive – according to at least one poll. YouGov survey of 1,500 Americans released in early October found that more than half of the respondents expected to see election violence. Republicans are slightly more likely than Democrats to say they expect increased violence.

Other research has shown that the percentage of Americans who believe violence is justified to advance their party’s goals has increased in both Democrats and Republicans.

Also read: ‘Worried that we won’t get the election results we want’: 5 ​​things to do on Election Night instead of panicking

Universities, retailers and banks are preparing for a possible riot

Some Americans may take their cue to prepare for potential protests and riots from large corporations and local institutions. In Washington, DC, colleges including George Washington University, have warned students and faculty to prepare for potential protests by storing food and other necessities in their dorm rooms or homes.

The university is following a directive by the city government, which calls on regional businesses to “prepare for a very active election season,” said Crystal Nosal, assistant director of media relations at George Washington University. She noted that the university has sent similar messages ahead of events including the Fourth of July, the last presidential inauguration and the Women’s March.

“Our goal is to help our campus community plan ahead for any potential disruptions that may occur during the election period,” said Nosal.

Meanwhile, Walmart
WMT,
+ 1.18%

change direction and returning ammunition and firearms to the display shop after moving the items last weekend “after civil unrest,” the company said. The product in question is still available for purchase, but is not publicly displayed.

The bank is considering closing branches across the country. Chase Bank
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+ 2.25%

plans to monitor the public’s response to the election and “prepare to close branches if necessary,” said Amy Bonitatibus, Chase’s head of communications. Truist
TFC,
+ 3.22%
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formed last year from the merger of SunTrust and BB&T, has closed some of its more than 2,000 bank branches “out of concern” in areas where other nearby businesses have temporarily closed, said Cynthia Montgomery, Truist’s director of communications for the retail community banking division.

A Wells Fargo
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+ 2.09%

The spokesman said that the bank had closed windows of “a small number of branch locations in certain cities,” but these branches remained open for business unless they were closed due to the pandemic.

‘This is not a natural disaster. This is an election. ‘

Michelle Sawicki, a Biden supporter living in Las Vegas, said she had the idea of ​​gathering pre-election supplies on her mind for a while. But he was inspired to take action after he saw several local businesses close their windows and speak to clerks at a local grocery store who had been conducting active shooter drills specifically in preparation for the election.

“It’s very strange living in such a careful place as if we were on track for a hurricane or some kind of natural disaster,” said Sawicki, 53. “This is not a natural disaster. This is an election in the first world country which is a democracy. “

Adding to Sawicki’s concern is the fact that she has only lived in Las Vegas for about a year and doesn’t see what usually happens during the general elections in Nevada. He also expressed concern about whether he could rely on the police if he was put in a risky situation.

“I see a lot of police unions supporting Donald Trump, and I’m concerned because I’m on the left side of things that the police can’t do,” he said. So far, Sawicki said, he had raised enough cash, gasoline, food and prescription drugs to last about two weeks.

What financial planners say about how to prepare your finances

While election-related anxiety may drive some to prepare for the worst, financial experts have warned that Americans shouldn’t take any steps to change their long-term financial plans just because of the election.

“Long-term investment decisions should not be based on short-term events and emotions,” said Gage Paul, a certified financial planner with Western Reserve Capital Management in Hudson, Ohio.

Do not miss: America’s ‘survivors’ feel vindication as they lock in the coronavirus epidemic – with ‘nuts, bullets and Band-Aids’

For those concerned about how others will respond to the election results, Paul advises providing food or water in case of extreme weather, or, for those who can afford it, considering moving to a vacation home for a few days.

And if people are concerned about possible property damage, they might want to consider have financial goals ready, including a photo of their house or car before the election in case they need to file an insurance claim related to a hypothetical event that could occur.

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Winners and Losers on Tuesday: Energy Drinks, Casino, Fast Food | Instant News


Once the ballots have been counted, investors will understand the sectors and stocks to play for and avoid.

George Frey / AFP via Getty Images

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