Palm Oil Journal No. 12/2015
Plantation shares opened mostly higher in Indonesia this morning, but Felda Global Ventures, the world’s largest producer of palm oil collapsed 7.82% in Kuala Lumpur. Wilmar International, another giant, lost 1.22% in Singapore, despite yesterday’s recovery of CPO prices in the futures market.
The Fight against Mandatory L/C Policy
Some business associations, including multinational companies, are now fighting fiercely against implementation of mandatory letter of credit (L/C) on April 1st, 2015. They succeeded in similar fights five years ago. Will they repeat that again this time?
Commodities to Watch
The benchmark May 2015 contracts of crude palm oil (CPO) fell almost 3% to RM2239 per ton on Bursa Malaysia Derivatives Monday (Feb 23) as WTI crude oil retreated to below US$50 per barrel on oversupply concern and appreciation of US dollar.
Deadline for Smelters Construction Extended to 2019
The Minister of Energy and Mineral Resources (ESDM) Sudirman Said met with PT Freeport Indonesia, PT Newmont Nusa Tenggara, PT Gorontalo Mineral, and PT Kalimantan Surya Kencana on Wednesday Feb. 18 to discuss the smelter project development roadmap. One of the outcomes of the meeting was the decision to extend the deadline for the development of smelters to 2019 from 2017.
Palm Oil Journal No. 11/2015: Weak First Half…
Net price of crude palm oil (CPO) received by PT KPB Nusantara in the physical market last week was Rp8262 per Kg, thanks to weak rupiah. While this was significantly higher than January’s average price, the price is still way below average price in February 2014.
Sudirman’s War Against Gas ‘Traders’ (II): West Madura Offshore Case
West Madura Offshore (WMO) recently gained public attention because of corruption investigation into former Bangkalan Regent and PT Media Karya Sentosa (MKS). The Corruption Eradication Commission (KPK) has examined officers of SKKMigas and Pertamina, operator of WMO, in the case.
Nickel Outlook: Vale & Eramet
Shares of Vale S.A gained 1.81% in New York, while Eramet jumped 11% in Paris Friday (February 20) as investors responded positively their full year 2014 results. Shares of Vale, the world’s giant for iron ore and nickel, however, collapsed 50% in the past 12 months, while Eramet is only 12% below peak.
Sudirman’s War Against Gas ‘Traders’ (I): Terang-Sirasun-Batur & PGN Case
Minister of energy and mineral resources Sudirman Said has waged a war against ‘gas traders’, which have no physical activities in the transmission and distribution of gas. Who are likely affected?
FY2014 Results: Indo Tambangraya
Coal producer PT Indo Tambangraya Megah (ITMG) Tbk booked net profit of US$200 million last year, down only by 2.32% from 2013 despite falling sales and profit margins. With relatively low debt level, ITMG reported double digit profit margin last year.
Niko Resources’ Miseries
Shares of Niko Resources Ltd soared 49% in Toronto Tuesday (Feb 17) as market players responded positively plan to divest its 10% shares in Indian deep sea gas, amendment of senior term loan facilities and recovery of crude oil. This, however, might be short-lived because of most recent development on its assets in Indonesia.