Today’s Market View – Arc Minerals; Ariana Resources; BlueRock Diamonds; Power

SP Angel . Morning View . Tuesday 12 01 21

Metal prices recover as US dollar pulls back from short term strength

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Arc Minerals* () – Placing raises £2m at 3.5p

Ariana Resources () – Kiziltepe exceeds 2020 production guidance

BlueRock Diamonds () – Kareevlei production shows significant improvement as diamond sales rise

Orosur Mining* () – Nick von Schirnding joins board of Orosur

* () – Exploration at Haneti continues as nickel prices continue to rally

Copper – prices fell overnight falling 3% at one stage before recovering to US$7,970/t this morning from US$8,008/t yesterday

Chinese traders were reported to have bought the dip on the close and as the stronger US dollar weakened again.

The US dollar had strengthened as the Fed appeared to be tolerating the return of a stronger dollar and may also start tapering its bond buying later this year

The Fed is also seen as potentially tolerating an increase in long-term interest rates.

Sterling rose overnight against the US dollar as the BoE Governor downplayed the use of negative interest rates.

Disruption at ports due to freezing weather in China and Covid regulations in other parts of the world is disrupting trade causing delays to shipments.

The situation is likely to slow global trade and potentially economic recovery.

Freight companies are having a tough time in the current environment.

Delays in shipments is raising prices for ferrochrome and other industrial minerals and is likely to cause significant delays for consumers awaiting shipments of other metals

Two cities are already under lockdown in Hubei province in China

Coronavirus protection measures are holding up containers coming out of South Africa

Chinese ports suffering disruption in freezing weather

Dalian port in China also recently issued a notice for Frozen Reefer cargos to divert to other ports

Containers are increasingly hard to source in China

European customs officials continue to hold up shipments claiming incorrect paperwork locking up yet more containers

The Baltic Dry Index has put on another 10% rising to a new three-month high

Dutch confiscate UK lorry drivers ham sandwich at border

Dutch Media has filmed border officials confiscating ham sandwiches from lorry drivers arriving in the Netherlands from the UK, due to post-Brexit rules.

Under EU rules, travellers from outside the bloc are banned from bringing in meat and dairy products.

Lorry drivers must feel like they are playing “piggy in the middle” between the UK and EU.

Chinese cities blackout amid coal shortages

Several Chinese cities have reportedly gone dark as authorities limit power usage, as a result of China’s unofficial ban on Australian coal.

Power rationing has commenced in Hunan and Zhejiang provinces due to the shortages, while officials insist that the restrictions on power use is due to exceptionally high demand (CNBC).

China has imposed limits on off-peak electricity usage for factories in southern China since mid-December (South China Morning Post).

Some might say China’s ban on Australian coal has been badly timed, as the country is currently experiencing its coldest winter in decades- upending energy markets and sending prices for electricity, fuel and vessels to record highs (Bloomberg).

Beijing last week recorded its lowest temperature since 1966, while Seoul had its coldest day since 1986.

China’s ban on imports of Australian coal has forced the realignment of flows between the world’s two…