Persistent Volatility of Commodities
WTI crude oil for December dropped further by 1.91% to US$43.75 per barrel on Nymex Monday (Oct 26) on demand worries, while natural gas slashed 9%. Brent crude oil also fell 1.3% to US$47.4 per barrel, but metals mostly end higher ground. Implications to thermal coal and crude palm oil (CPO)?
Indonesian Coffee Farmers and Fair Trade
On Thursday (Oct. 22), the Sustainable Coffee Platform of Indonesia (Scopi) held a workshop on farming for business. The workshop presented two Indonesian coffee farmers, Suyono and Julian Bagus. The two shared different stories on how they grow coffee and improve their income as coffee growers.
Sudirman Said on Freeport & Regulations
Bisnis Indonesia newspaper published an interesting interview with Sudirman Said, energy and mineral resources minister, today. He talked about various issues surrounding PT Freeport Indonesia and chaotic regulations in mining industry ‘designed to blackmail business players’.
Further Consolidation in Steel & Metals
World crude steel production for the 66 countries reporting to the World Steel Association (worldsteel) was 131 million tonnes (Mt) in September 2015, a -3.7% decrease compared to September 2014, where China, the world’s single largest producer, also reported 3% decline.
Strong Q3 for Bukit Asam
PT Tambang Batubara Bukit Asam (PTBA) Tbk booked net profit of Rp1.5 trillion in nine months of 2015, down only 4.8% from the corresponding period of 2014, thanks to strong performance in the third quarter ended Sept 30, 2015, where its net profit jumped 67%.
Coal: Waiting for New Balance
China Shenhua, one of the world’s largest thermal coal producers, sold 31.3 million tons of coal last month, down 17.4% from September 2014. The Company also cut significantly its output by 10.8% to 22.2 million tons in the month. How about China Coal Energy, Yanzhou Coal, and Vale Inc?
Palm Oil: Where’s The El Nino?
Production report of First Resources Ltd and Bumitama Agri Ltd, both are listed on Singapore Exchange but with plantation areas mostly located in Indonesia, for the period ended September 30, 2015 shows no indication of El Nino.
Commodities & Corporate News
Metals ended mostly higher grounds in London Metal Exchange (LME) Thursday (Oct 15) even though crude oil continued its correction. Nickel, by far, is the best performing metal with 7.4% gain since September 8, 2015. In the meantime, President Jokowi has finally signed government regulation for the capital injection of Rp3.5 trillion into state miner PT Aneka Tambang (ANTM) Tbk.
Market Snapshots & Corporate News
Asian stocks end mostly lower ground Wednesday (Oct 14) to respond China’s September trade data, which suggests weakening of domestic economy and export. Shanghai’s SSE Composite Index lost 0.93%, while Hang Seng Index dropped 0.71%. Wall Street followed with Dow Jones Industrial Average (DJIA) losing 0.92%, while Nasdaq composite slipped 0.29%.
Energy Investments to Watch
State-owned energy company PT Perusahaan Gas Negara (PGAS) Tbk is currently seeking partner for the development of Sesulu Block, offshore Makassar Strait. ABB, the leading power and automation technology group, meanwhile, has just kicked off commercial operation of new manufacturing facility for medium-voltage air-insulated switchgear (AIS) in Tangerang, Banten province.