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Tuesday, 31 August 2021

First a global chip shortage, now the capacitors used in electronic devices?

Aluminum prices are touching highs last seen a decade ago, buoyed by strong demand from buyers rushing to line up metal can, aircraft and building material shipments, the Wall Street Journal reports. Prices are currently almost 80% higher than their low point in May 2020 — when sales to the aerospace and transport industries took a hit in the depths of the pandemic. The sticking point, however, is that higher prices are pinching companies in the US and Europe, where it has been difficult to secure the metal that is mostly idling in Asia. The container supply shortage has further exacerbated the issue, leading to a situation in which “there’s just not enough metal inside of North America,” one industry player says.

First a global chip shortage, now an undersupply of capacitors used in electronics: Asia is facing the prospect of a drop in production of multilayer ceramic capacitors (MLCCs) — high-performance capacitors that regulate the flow of electricity in everything from iPhone and PlayStations to electric cars — after two of the major manufacturers in Japan and Malaysia had to suspend some operations due to new covid-19 outbreaks, writes the Wall Street Journal. The MLCC situation is, however, being kept under control by the global semiconductor supply crunch, as hampered production at chip factories has kept a lid on demand for these ceramic bits as car companies cut production.

Inflation in Germany is at its highest level in 13 years, with the country’s consumer price index rising to 3.4% y-o-y in August driven by an economic rebound, supply chain disruptions, and higher energy prices, the Financial Times reports. Manufactured goods in particular saw inflation rise to 5.6% off the back of supply shortages, while service inflation came in at 2.5%. The price growth in the EU’s largest economy could feed into the European Central Bank’s discussions next week on whether it will scale back its bond buying program, though the ECB has said it expects inflation to fade next year.

Up

EGX30

11163.23

+0.5% (YTD: +2.9%)

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

Up

Tadawul

11,255.05

+0.7% (YTD: +29.52%)

Up

ADX

7,684.87

+0.4% (YTD: +52.32%)

Down

DFM

2,899.84

-0.05% (YTD: +16.37%)

Up

S&P 500

4,528.79

+0.4% (YTD: +20.57%)

Up

FTSE 100

7,148.01

+0.3% (YTD: +10.64%)

Up

Brent crude

USD 73.22

+0.7%

Down

Natural gas (Nymex)

USD 4.32

-1.7%

Down

Gold

USD 1,812.30

-0.4%

Down

BTC

USD 47,332.59

-3.77% (as of midnight)

THE CLOSING BELL-

The EGX30 rose 0.5% at yesterday’s close on turnover of EGP 2.1 bn (30.5% above the 90-day average). Local investors were net sellers. The index is up 2.9% YTD.

In the green: Heliopolis Housing (+5.6%), Cleopatra Hospitals (+4.7%) and EFG Hermes (+3.4%).

In the red: Mopco (-3.3%), MM Group (-3.1%) and Fawry (-2.7%).

Asian markets are solidly in the red this morning, and futures point to a mixed open in much of Europe and North America 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.

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