Unlike other minerals, thermal coal has been subdued longer due to the Covid-19 pandemic. Today the commodity is traded at US$52.8 per ton in international market, only slightly above its recent low (US$50.2/ton), mounting pressures to inefficient coal miners around the globe. It also hurts the State budget because of the commodity’s contribution in the form of corporate income tax and mineral royalties.

The benchmark November 2020 contracts of crude palm oil (CPO) settled higher at RM2,811 per ton in Bursa Malaysia Derivatives Wednesday (Sep 2), while September contracts were settled at RM2,922. Earlier on Tuesday, the key export commodity advanced to US$714 per ton (CIF) in Rotterdam.

Tin advanced to US$18,105 per ton in London Metal Exchange (LME) Tuesday (Sep 1) as China, Japan, Indonesia, and South Korea reported a more expansive manufacturing sector. This should benefit PT Timah Tbk (TINS), one of the world’s largest exporters, which implemented production cuts in the first half of the year.

Natural rubber jumped 9.36% to 204,5 yen/Kg or around US$1,924/ton in Tokyo Monday (Aug 31), the highest level since July 2019. The commodity has gained nearly 59% from its recent bottom, thanks to recovery of automotive market and the whole manufacturing industry in China, Japan, and some parts of Europe.

Coal miner Adaro Energy (ADRO) booked a net profit of US$166.5 million in the first half (H1) of 2020, declined 48.3% from US$321 million in the corresponding period of 2019, as revenue fell 23.2% to US$1.36 billion from previous US$1.77 billion. Operating profit fell 10.5% to US$229million from earlier US$450 million. Adaro’s core profit fell 19% to US$134 million, and operational Ebitda declined 18% to US$265 million. Ebitda margin for operations fell 7% to 35.3%.

The benchmark November contracts of crude palm oil (CPO) advanced RM57 to RM2,739 per ton on Bursa Malaysia Derivatives this morning. Earlier in Rotterdam, the commodity returned to US$690 per ton (CIF), lifting hopes to improvement in Indonesia’s export revenues going forward. Minerals, meanwhile, are relatively stable with nickel and tin advanced to their new highs. 

Nickel advanced to US$15,120 per ton in London Metal Exchange (LME) Thursday (Aug 27). This could lead to bigger than expected export value of nickel for Indonesia this year (around US$10 billion). More nickel smelters, including two nickel sulphates for electric vehicle battery, will be commercial in the coming months in Morowali (Central Sulawesi) and Halmahera (North Maluku).

Natural rubber, key export commodity for Indonesia, advanced to 179.7 yen/Kg in Tokyo Wednesday (Aug 26). That means the commodity has gained 39.3% from its bottom as automotive market and manufacturing industry suggested gradual recovery worldwide. Crude palm oil (CPO), the second largest export commodity, retreated to US$680 per ton (CIF) in Rotterdam, but the commodity has gained 33.3% from its bottom.

EV disruption! Market share of electric vehicles increased significantly in some European countries. In Norway, market share increased further to 69% from total car sales in the country for the first half of 2020 against 61% in full year 2019. In Finland, market share doubled to 16% in the first half, while Portugal also doubled to 12%.