In today’s briefing:
- WTI 105 Rejection Sets up a Key Low at 89/85
- China Debuts $3 Billion State Iron Ore Giant
- Adaro – Tear Sheet – Lucror Analytics
WTI 105 Rejection Sets up a Key Low at 89/85
- WTI 105 short zone working again for a low near the 89/85 zone to set up a better buy level. Oil still struggling with supply/demand constraints.
- 105 has been our firm sell zone. Gap lower will cut the legs out from under the XLE bounce.
- We expect USD strength to resume and will put additional pressure on oil. Choppy overlapping decline warns of an upcoming WTI low as the descending pattern matures.
China Debuts $3 Billion State Iron Ore Giant
- China’s central government formally launched a state-owned iron ore giant to consolidate China’s massive mining investments and coordinate global purchases of steelmaking materials for the world’s largest steel producing nation
- With registered capital of 20 billion yuan ($3 billion), China Mineral Resources Group was established Tuesday in the Xiongan New Area
- Creation of the enterprise is seen as part of China’s long-pursued goal of enhancing its position in the global iron ore trade
Adaro – Tear Sheet – Lucror Analytics
We view Adaro as “Low Risk” on the LARA scale, due to: [1] the company’s large scale (being the second-largest coal miner in Indonesia) and low-cost position (
Our Credit Bias is “Positive”, given the improving fundamentals amid a highly favourable operating environment.
Controversies are “Immaterial”, with Adaro only facing one tax issue. That said, the tax issue is a non-concern for investors. The ESG Impact on Credit is “Neutral”.
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