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Tuesday, 10 August 2021

Aluminium prices surge to near decade high + Delta variant to hit China growth prospects

SUPERCYCLE WATCH- Aluminium prices are nearing a decade high of c. USD 2.6k per tonne this week, supported by a post-pandemic global economic recovery and a sustained rebound in prices of industry-related materials, the Financial Times reports. Aluminium prices rose 31% y-o-y in 2021, with the potential for this year to outstrip 2010 as the “largest annual demand growth in history,” one analyst told the salmon-colored newspaper. The price rally is good news for an industry that has suffered from years of oversupply amid relentless growth in China’s output.

As the Delta variant thrives, oil prices plunge: Prices eased 4% this week, following last week's 7% drop — which was the steepest in 9 months — as demand in Asia slows due to a renewed covid surge, according to a Financial Times report. China, the world’s biggest oil importer, has scaled back imports by 5.6% cumulatively y-o-y in 2021 so far.

Saudi Arabia’s budget deficit narrowed in 2Q2021 on higher oil, tax revenues: Saudi Arabia posted a deficit of USD 1.2 bn during the April-June period, down 96% y-o-y from the USD 29.12 bn recorded a year before. This came off the back of a 38% increase in oil revenues in 2Q2021, and the almost tripling of non-oil revenues to USD 31 bn, the Saudi finance ministry said in a statement picked up by Bloomberg. Improving public finances are largely attributed to an increase in oil prices, after having dropped to record levels during the depths of the pandemic last year.

Up

EGX30

10,800

+0.6% (YTD: -0.4%)

None

USD (CBE)

Buy 15.65

Sell 15.75

None

USD at CIB

Buy 15.65

Sell 15.75

None

Interest rates CBE

8.25% deposit

9.25% lending

Down

Tadawul

11,197.97

-0.15% (YTD: +28.87%)

Up

ADX

7,572.82

+0.95% (YTD: +50.1%)

Up

DFM

2,823.35

+0.02% (YTD: +13.3%)

Down

S&P 500

4,432

-0.09% (YTD: +18%)

Up

FTSE 100

7,132.3

+0.13% (YTD: +10.4%)

Down

Brent crude

USD 68.97

-0.1%

Down

Natural gas (Nymex)

USD 4.03

-0.69%

Up

Gold

USD 1,725.80

+0.54%

Up

BTC

USD 45,944.44

+6.19% (as of midnight)

THE CLOSING BELL-

The EGX30 rose 0.6% at today’s close on turnover of EGP 1.8 bn (27.8% above the 90-day average). Local investors were net buyers. The index is down 0.4% YTD.

In the green: Telecom Egypt (+3.5%), Ezz Steel (+2.7%) and Medinet Nasr Housing (+1.5%).

In the red: AMOC (-3.6%), Speed Medical (-2.7%) and MM Group (-2.5%).

Asian markets are mixed this morning, with benchmark indexes in Tokyo and Hong Kong in the green while their counterparts in Shanghai and Seoul are in the red. Futures suggest shares in Europe and North America are likely to open in the red later today.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2021 Enterprise Ventures LLC.