This week, the focus will be on oil product supplies to Bangladesh, which can come to a halt as the country’s primary oil importer Bangladesh Petroleum Corporation struggles to clear pending dues amid currency devaluation. The company owes around $298 million to different fuel suppliers as of May 16, an official told S&P Global.
Over in agriculture, markets will keep an eye on Chinese palm oil purchases in the near term as the world’s second-largest palm oil buyer is expected to step up imports in June following a drop in prices on the news of increased supply.
Meanwhile, grain markets remain cautious of El Nino’s emergence, which is likely to impact Australia’s wheat harvest and is already expected to be down 26% on the year. In metals, a key data release from China is expected to show semi-finished steel exports relatively high in April, however, exports of both semi-finished and finished steel in May are likely to trend downwards on shrinking overseas orders.
China’s lithium carbonate prices are expected to remain robust in the near term amid strong buying activity from the downstream battery and EV makers. In coking coal, Chinese buyers are expected to keep a close watch on Asian prices amid a steady downtrend. And the Singapore Coking Coal Conference, part of the Singapore International Ferrous Week is happening this week. Key trends like trade flow changes and uncertain economic landscape will be in focus during the two-day event starting May 25.
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Source: S&P Global
