Daily Brief Energy/Materials: Korea Zinc, Copper, Welspun Corp, Dyna Mac Holdings, Chc Resources, Anhui Conch Cement, SGX Rubber Future TSR20, Valvoline , Iron Ore, Silver and more

• MBK officially disclosed that they scooped up 5.34% of the Korea Zinc (010130 KS) shares in the tender that wrapped up today.
• MBK scored a partial win by securing more voting rights than Choi, with unexpected backing from foreign and local institutions, likely due to proration risk over legal issues.
• Still, securing just 5.34% puts MBK in a tough position, requiring them to navigate minority shareholder votes while pushing hard on the legal front to block the buyback.

• Hugh Mackay provides insights into the future of iron ore, copper, and steel dynamics
• China’s recent stimulus announcement and its impact on global commodity markets
• Challenges faced by Chinese authorities in addressing deflation and household sector confidence.

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• Welspun Corp (WLCO IN) expanded from just SAW pipe company to DI Pipe, TMT Bars, Building solutions and PVC Pipes as well. 
• Company is known for reviving bankrupt companies, On the path to revive Sintex and ABG Shipyard.
• high growth from US, Saudi and India driving the growth with capex 

• On the 11th September, Hanwha Ocean (042660 KS) and Hanwha Aerospace (012450 KS), collectively holding 25.36%, made a S$0.60/share cash Offer for shares not owned, conditional on a 50% acceptance.
• The transaction stalled on the 24th September, when the estate of Dyna-Mac’s founding shareholder, Desmond Lim Tze Jong (holding ~35% currently) reckoned the Offer “does not adequately reflect” Dyna-Mac’s value.
• Hanwha Group has now bumped terms by 11.67% to S$0.67/share, best & final. That’s a 35.4% premium to undisturbed, and a decade high. No word, yet, from the Lim estate.

• In this short insight, we include our flow estimates for all additions and deletions taking place in the range of WisdomTree EM Funds at the rebalance this Wednesday (16 October).
• We show the top 40 buys and sells across DEM, XSOE and DGS.
• The top buys include Chc Resources (9930 TT) & Uchi Technologies (UCHI MK). The top sells include Impack Pratama Industri Tbk (IMPC IJ) and Hap Seng Consolidated (HAP MK).

• Recent significant clinker price hikes in Yangtze river region boost our confidence that 4Q will likely see the company’s earnings double Y/Y, ending 14 consecutive quarters of decline since 2Q21.
• Beijing’s bazooka stimulus package to lift the property market and revive economy also improve industry outlook in 2025.
• Consensus has been slow to adjust for the changes in industry dynamics. Our 2024 earnings is now 15% above consensus. We expect upward earnings revision will support P/B expansion.

• USTR clamping 50% duty on Chinese gloves from Jan comes in handy
• Over 35% Malaysian rubber glove exports directed to the US
• Malaysia’s rubber and products exports rise to RM15.5 bn in H1 2024

• Valvoline Inc. reported its third-quarter fiscal year 2024 results, featuring a strong performance with significant top-line growth and operational enhancements.
• For this quarter, which ended June 30, 2024, the company reported a system-wide store sales growth of 12.4%, reaching $809 million.
• This consistent growth across the company’s franchise and owned stores contributed to a same-store sales increase of 6.5%.

• Iron ore prices dropped below $105/ton on 8 Oct after China’s NDRC failed to announce new stimulus measures, tempering bullish sentiment from earlier liquidity injections.
• Chinese portside inventories grew by 590k tons, reaching 147.84 million tons by 11 Oct, driven by higher arrivals and slower post-holiday consumption.
• While RSI signals bullish momentum, MACD shows a fading rally. Prices approach the critical 200-day moving average at $110/ton, posing a potential resistance point.

• China’s largest post-pandemic stimulus package, freeing 1 trillion yuan in liquidity, spurred a 4% silver rally, boosting both industrial demand and consumer spending.
• U.S.-Listed silver ETFs saw $942 million in inflows since July, with $400 million added after the Fed’s rate cut, as lower rates increase demand for non-yielding assets like silver.
• Global solar installations are up 29% year-over-year, driving silver demand, with forecasts raised after China’s mid-year reversal of installation restrictions.