This morning in the metals news: the price of oil fell nearly 3% on Monday. Chinese steel exports increase in July. Copper and cobalt production will double at the Tenke Fungurume mine in DCR with a $ 2.5 billion investment from a Chinese company.

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Oil prices fall nearly 3% on Monday

Oil prices have fallen nearly 3%, with WTI crude falling to its lowest since May on Monday. This continues the losses of the previous week amid renewed coronavirus restrictions in China and a stronger US dollar. China, which is the second-largest consumer of oil, recently imposed travel and transportation restrictions in an attempt to tackle rising infection rates from the Delta variant, raising concerns over a drop of global oil demand.

Meanwhile, Saudi Aramco reported a Q2 earnings increase of 288%. Compared to $ 6.6 billion for the same period of 2020, that adds up to a net profit of $ 25.5 billion. Such a rebound reflects a continued global recovery as access to vaccines increases and restrictions have been largely relaxed.

Chinese steel exports increase in July

According to customs data, finished steel exports of China rose 36% in July. As China aims to cap domestic steel production and prices, these export data could suggest uncertainty about future Chinese demand or lead to additional taxes on such exports.

China announced last month, from August 1, increased tariffs would be levied on pig iron and ferrochrome, alongside the removal of export tax rebates for 23 steel products, including some cold-rolled coils. China is currently the world’s largest steel producer, and these changes are part of a larger campaign to reduce carbon emissions.

Copper and cobalt production to double at Tenke Fungurume mine

With a China’s $ 2.51 billion investment Molybdenum, copper and cobalt production is expected to double at the Tenke Fungurume mine in the Democratic Republic of the Congo. Although the project is not expected to be completed until 2023, production is expected to increase by 200,000 tonnes of copper and 17,000 tonnes of cobalt.

Year-to-date copper prices are up 23% on the LME, with a 3.9% month-over-month increase from July to August.

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