EVs Continue to Support Nickel
Electric vehicle sales in USA for May yet to be released in full, but the popular Tesla Model3 recorded sales volume of 6,250 units in the month, jumped 61% from the previous month. Toyota Prius Prime also reported strong sales growth of 11.3% to 2,924 units. While not as fast as China, sales of EVs in USA already jumped from 116,099 in 2015 to 199,826 last year.
Wilmar’s Bet in Indonesian Rice Business
Rice, staple food of Indonesians, is a very big business. With annual consumption above 30 million tons, at the current price of around US$451 per ton, rice is a US$13 billion business. Confirming our earlier reports, SGX-listed Wilmar International Ltd has stepped up its investments in the industry.
Another Strong Month for United Tractors
Relatively strong price of coal contributed to more investments in heavy equipments by mining contractors. United Tractors (UNTR), which handles the leading market brand Komatsu, sold 485 units of machineries in April, an increase of 43% year-on-year, thanks to strong sales to mining sector and construction industry.
Survival of the Fittest in Palm Oil
Palm oil has been under pressure for quite sometime now. The commodity stays below RM2500 per ton even though crude oil already moved closer to US$80 per barrel. Plantation companies reported significant drop in their net profit. Some will likely stay if pricing pressure stays longer, while others might leave the business.
Those Continue to Expand: Agritrade Resources
HKSE-listed Agritrade Resources Ltd, a growing coal producer with assets in Kalimantan, Indonesia, has just entered into an equipment supply contract which will see significant increase in its coal production.
Coal Journal
Indonesia generated US$8.1 billion of foreign exchange earnings from export of coal in the first four months of 2018, an increase of 20% from the corresponding period last year, thanks to higher average price. Thermal coal price, meanwhile, advanced further to US$104.25 per ton Tuesday (May 15) as major coal producers in China found difficulties in increasing output.
Sinarmas’ Golden Energy vs Geo Energy in Q1
Sinarmas Group is on its way to become third largest coal producer in Indonesia behind Bakrie Group (Bumi Resources) and Adaro Group. The group’s subsidiary Golden Energy and Resources Ltd, listed on SGX, produced 4.7 million tons of coal in the first quarter, on track to produce over 20 million tons this year.
Electric Vehicle Continues to Support Nickel
Nickel ended slightly lower at US$13,910 in London Metal Exchange (LME) Friday, May11. It is significantly lower than its recent peak (US$15,600 per ton), but average price in the first four months of 2018 was the strongest since early 2015. Looks like that data about sales of electric cars in China continued to support the commodity.
Jokowi’s Resource Nationalism: Pertamina
The government has finally granted 100% interest in Jambi-Merang and Raja/Pendopo oil and gas blocks to state company Pertamina. Production sharing contract (PSC) of these blocks, previously under joint operating body (JOB) between Pertamina and Talisman (Jambi Merang) and Golden Spike (Raja/Pendopo) will expire early next year.
Oil & Gas Journal
Indonesia’s deficit in oil and gas trading expanded by 4.1% to US$2.7 billion in the first quarter of 2018 mainly due to 352% jump in deficit in crude oil. US President Donald Trump’s decision to withdraw from Iran nuclear deal, which lifted crude oil closer to US$80 per barrel, might lead to higher deficit for Indonesia, even though this might generate substantial windfall for the State Budget.