Morning Bites
💎De Beers has reported a 4% YoY decrease in rough diamond production to 7.9mnct in 2Q22. According to the company, the decline was caused by the treatment of lower grade ore at operations in Botswana and Canada. Nevertheless, De Beers increased its 2022 production guidance 5% to 32-34mnct, from 30-33mnct. Rough diamond sales from the 3 cycles in 2Q22 totalled 8.3mnct, which was 28% above the 6.5mnct from 2 cycles in 2Q21. However, the company noted that the deterioration in global macroeconomic conditions could negatively impact diamond jewellery demand
🪨Russia's coal production was roughly flat YoY in 1H22, according to Russia's Minister of Energy. Metal Expert reports that in 5mo22, Russia’s output of thermal and coking coal was down 1% YoY and flat YoY, respectively. Thus, if coal output was flat YoY in 1H22, production must have grown 5% YoY in June, which looks quite upbeat. If the May dynamics continued in June, coal output might have been down 1% YoY in 1H22
$AAL #diamonds #coal
💎De Beers has reported a 4% YoY decrease in rough diamond production to 7.9mnct in 2Q22. According to the company, the decline was caused by the treatment of lower grade ore at operations in Botswana and Canada. Nevertheless, De Beers increased its 2022 production guidance 5% to 32-34mnct, from 30-33mnct. Rough diamond sales from the 3 cycles in 2Q22 totalled 8.3mnct, which was 28% above the 6.5mnct from 2 cycles in 2Q21. However, the company noted that the deterioration in global macroeconomic conditions could negatively impact diamond jewellery demand
🪨Russia's coal production was roughly flat YoY in 1H22, according to Russia's Minister of Energy. Metal Expert reports that in 5mo22, Russia’s output of thermal and coking coal was down 1% YoY and flat YoY, respectively. Thus, if coal output was flat YoY in 1H22, production must have grown 5% YoY in June, which looks quite upbeat. If the May dynamics continued in June, coal output might have been down 1% YoY in 1H22
$AAL #diamonds #coal
Morning Bites
📉Global crude steel output fell 5.9% YoY to 158mnt in June, with the rate of decline accelerating from 3.5% YoY in May, according to the World Steel Association. China's steel output was down 3.3% YoY (vs. -3.5% in May) and accounted for 57% of world steel production in June, as well as in May. Meanwhile, ex-China steel production decreased 9.2% YoY in June (vs. -3.5% YoY in May). US steel production fell 4.2% YoY in June (vs. 2.6% YoY decline in May), while EU crude steel output was down 12.2% YoY in June, with the rate of decline accelerating from 6.8% YoY in May. Notably, Russia’s steel production dropped 22.2% YoY in June (vs. -1.4% YoY in May). We believe that global steel output might continue to decline in the coming months on the back of the global economic slowdown and China’s planned steel output reduction relative to 2021 level, which might further depress the iron ore demand
#steel
📉Global crude steel output fell 5.9% YoY to 158mnt in June, with the rate of decline accelerating from 3.5% YoY in May, according to the World Steel Association. China's steel output was down 3.3% YoY (vs. -3.5% in May) and accounted for 57% of world steel production in June, as well as in May. Meanwhile, ex-China steel production decreased 9.2% YoY in June (vs. -3.5% YoY in May). US steel production fell 4.2% YoY in June (vs. 2.6% YoY decline in May), while EU crude steel output was down 12.2% YoY in June, with the rate of decline accelerating from 6.8% YoY in May. Notably, Russia’s steel production dropped 22.2% YoY in June (vs. -1.4% YoY in May). We believe that global steel output might continue to decline in the coming months on the back of the global economic slowdown and China’s planned steel output reduction relative to 2021 level, which might further depress the iron ore demand
#steel
Thermal coal - a cheaper alternative to gas
📌Global energy crisis gains momentum given limited availability of gas, high air temperatures and issues with electricity generation from renewable sources. This leads to the increased usage of thermal coal for electricity generation, despite ecological concerns
⚖️According to our calculations, to replace 1kcm of gas, 1.1-1.3t of thermal coal is required (depending on energy efficiency of generation capacities), which is some 68-73% cheaper at current prices. This makes thermal coal a cheaper alternative to gas, which becomes highly demanded in the current economic environment
#coal
📌Global energy crisis gains momentum given limited availability of gas, high air temperatures and issues with electricity generation from renewable sources. This leads to the increased usage of thermal coal for electricity generation, despite ecological concerns
⚖️According to our calculations, to replace 1kcm of gas, 1.1-1.3t of thermal coal is required (depending on energy efficiency of generation capacities), which is some 68-73% cheaper at current prices. This makes thermal coal a cheaper alternative to gas, which becomes highly demanded in the current economic environment
#coal
Thermal coal - the supply is limited
🪨Thermal coal supply fails to keep up with demand growth. The coal sector is underinvested, given prior to the energy crisis the margins were low and the prospects were gloomy as many countries were reducing coal consumption
⛏Moreover, China has issues with coal caloricity. According to industry sources, China’s miners are now switching to lower quality coal, as domestic price cap is almost 4x lower vs. spot price (with no quality adjustment). According to Reuters, some utilities in China are now consuming 15% YoY more coal due to its lower quality. As a result, in June, despite the 15% YoY increase in coal production, China’s thermal power generation fell 6% YoY
📉Coal supply is being further tightened by restrictions on Russia’s exports that used to account for 17% of the thermal coal market. In May, Russia’s thermal coal exports fell 23% YoY (-8% YoY in 5mo22). The situation will further worsen amid kick-off of embargo on Russian coal imports in EU in August
#coal
🪨Thermal coal supply fails to keep up with demand growth. The coal sector is underinvested, given prior to the energy crisis the margins were low and the prospects were gloomy as many countries were reducing coal consumption
⛏Moreover, China has issues with coal caloricity. According to industry sources, China’s miners are now switching to lower quality coal, as domestic price cap is almost 4x lower vs. spot price (with no quality adjustment). According to Reuters, some utilities in China are now consuming 15% YoY more coal due to its lower quality. As a result, in June, despite the 15% YoY increase in coal production, China’s thermal power generation fell 6% YoY
📉Coal supply is being further tightened by restrictions on Russia’s exports that used to account for 17% of the thermal coal market. In May, Russia’s thermal coal exports fell 23% YoY (-8% YoY in 5mo22). The situation will further worsen amid kick-off of embargo on Russian coal imports in EU in August
#coal
Coal and gas price dynamics
🚀Energy crisis and tight gas supply led to the 80% increase in TTF gas price since the beginning of June (up 105% YTD). Meanwhile, thermal coal FOB Newcastle rose 7% since the beginning of June (up 140% YTD)
📌As a result of the growing demand for thermal coal and the weak demand for coking coal from steelmakers, some thermal coal prices currently exceed the prices of semi-soft coking coal that might be used as a substitute for thermal coal. In particular, thermal coal FOB Newcastle trades at USD 420/t, while Australian semi-soft coking coal price fell to USD 190/t
📈Thermal coal prices might continue to grow. As we noted previously, to replace 1kcm of gas, 1.1-1.3t of thermal coal is required, which implies an upside for coal price to above USD 1,000/t with certain limitations, such as lower availability of generation plants. We note that, given semi-soft coking coal might be used for power generation, there is also some upside for coking coal prices
#coal
🚀Energy crisis and tight gas supply led to the 80% increase in TTF gas price since the beginning of June (up 105% YTD). Meanwhile, thermal coal FOB Newcastle rose 7% since the beginning of June (up 140% YTD)
📌As a result of the growing demand for thermal coal and the weak demand for coking coal from steelmakers, some thermal coal prices currently exceed the prices of semi-soft coking coal that might be used as a substitute for thermal coal. In particular, thermal coal FOB Newcastle trades at USD 420/t, while Australian semi-soft coking coal price fell to USD 190/t
📈Thermal coal prices might continue to grow. As we noted previously, to replace 1kcm of gas, 1.1-1.3t of thermal coal is required, which implies an upside for coal price to above USD 1,000/t with certain limitations, such as lower availability of generation plants. We note that, given semi-soft coking coal might be used for power generation, there is also some upside for coking coal prices
#coal
Which companies could benefit from growing coal prices?
📌We would consider 7 companies: Peabody (BTU US), Warrior Met Coal (HCC US), Mongolian Mining Corp. (MMC, 975 HK), Thungela (TGA LN), Mechel (MTLR RX), Raspadskaya (RASP RX) and Glencore (GLEN LN)
💰On spot, TGA and BTU look the most appealing. TGA trades at -0.1x 1-y fwd EV/EBITDA and offers a 126% FCF yield. Meanwhile, BTU trades at 0.8x EV/EBITDA and has a 54% FCF yield
💰MMC, HCC and RASP are a bit more expensive: 1.3-1.5x EV/EBITDA and 24-48% FCF yield. Out of these 7 firms, GLEN and MTLR appear to be the most expensive: 2.1-4.6x EV/EBITDA and 23-40% FCF yield
#coal
📌We would consider 7 companies: Peabody (BTU US), Warrior Met Coal (HCC US), Mongolian Mining Corp. (MMC, 975 HK), Thungela (TGA LN), Mechel (MTLR RX), Raspadskaya (RASP RX) and Glencore (GLEN LN)
💰On spot, TGA and BTU look the most appealing. TGA trades at -0.1x 1-y fwd EV/EBITDA and offers a 126% FCF yield. Meanwhile, BTU trades at 0.8x EV/EBITDA and has a 54% FCF yield
💰MMC, HCC and RASP are a bit more expensive: 1.3-1.5x EV/EBITDA and 24-48% FCF yield. Out of these 7 firms, GLEN and MTLR appear to be the most expensive: 2.1-4.6x EV/EBITDA and 23-40% FCF yield
#coal
Morning Bites (part 1)
📉CISA mills daily crude steel output fell 1.8% in the middle of July from the first ten days of the month. This represented a 7.1% YoY drop (vs. the 2.9% YoY decline in early July). The reduction in steel output was likely caused by the weak domestic demand, as suggested by the continued build-up of steel inventories, which rose 5.5% from 10 to 20 July and were up 27.6% YoY as of 20 July
📈China’s ROM iron ore output rose 9% YoY in June (vs. +5% YoY in May), despite the falling steel production. According to Metal Expert, the increase was caused by China’s intention to ensure self-sufficiency in the supply of steelmaking raw materials. We note, however, that China’s rising iron ore output might further depress iron ore prices given the weak demand from steelmakers
#steel #iron_ore
📉CISA mills daily crude steel output fell 1.8% in the middle of July from the first ten days of the month. This represented a 7.1% YoY drop (vs. the 2.9% YoY decline in early July). The reduction in steel output was likely caused by the weak domestic demand, as suggested by the continued build-up of steel inventories, which rose 5.5% from 10 to 20 July and were up 27.6% YoY as of 20 July
📈China’s ROM iron ore output rose 9% YoY in June (vs. +5% YoY in May), despite the falling steel production. According to Metal Expert, the increase was caused by China’s intention to ensure self-sufficiency in the supply of steelmaking raw materials. We note, however, that China’s rising iron ore output might further depress iron ore prices given the weak demand from steelmakers
#steel #iron_ore
👍1
Morning Bites (part 2)
🪨China’s coking coal imports rose 21% YoY in June after a 34% YoY increase in May. The growth was mainly driven by the 170% YoY increase in imports from Mongolia (46% of total imports) as China eased restrictions at the Mongolian border. At the same time, coking coal imports from Russia (34% of total) rose 46% YoY. Given the decline in steel output and growing domestic coal production, the increase in coking coal imports might negatively affect China’s metallurgical coal prices
#coal
🪨China’s coking coal imports rose 21% YoY in June after a 34% YoY increase in May. The growth was mainly driven by the 170% YoY increase in imports from Mongolia (46% of total imports) as China eased restrictions at the Mongolian border. At the same time, coking coal imports from Russia (34% of total) rose 46% YoY. Given the decline in steel output and growing domestic coal production, the increase in coking coal imports might negatively affect China’s metallurgical coal prices
#coal
What is happening with Steelmaking margins?
🔗Global demand for steel continues to fall amid the global economic slowdown. The WSA data shows global crude steel production falling 6% YoY in June, after the 3.5% YoY decline in May (with a significant 9% YoY drop in ex-China, including a 12% YoY decrease in Europe).
📉Affected by sluggish demand, global steel quotes continue to plunge. Chinese steel prices have already lost 33% since the beg. Apr. As a result, the Chinese steelmaking margin fell 25% over the corresponding period.
📉Shrinking margins put pressure on the raw materials basket price, which is also down ~40% since beg-April, with broadly the same rate of decline for iron ore and coking coal (both HCC and SSCC).
❗️The pressure on the RM basket is likely to persist in the short-to-medium-term amid global economy uncertainty and weak steel demand. In the mid-cycle, the basket price might further decrease >15% below the spot level
Check more on metals-wire.com/page/steel
#steel
🔗Global demand for steel continues to fall amid the global economic slowdown. The WSA data shows global crude steel production falling 6% YoY in June, after the 3.5% YoY decline in May (with a significant 9% YoY drop in ex-China, including a 12% YoY decrease in Europe).
📉Affected by sluggish demand, global steel quotes continue to plunge. Chinese steel prices have already lost 33% since the beg. Apr. As a result, the Chinese steelmaking margin fell 25% over the corresponding period.
📉Shrinking margins put pressure on the raw materials basket price, which is also down ~40% since beg-April, with broadly the same rate of decline for iron ore and coking coal (both HCC and SSCC).
❗️The pressure on the RM basket is likely to persist in the short-to-medium-term amid global economy uncertainty and weak steel demand. In the mid-cycle, the basket price might further decrease >15% below the spot level
Check more on metals-wire.com/page/steel
#steel
🔗How do steelmakers look now?
•Among steelmakers, we would consider 6 companies: ArcelorMital (MT US), US Steel (X US), Severstal (CHMF RX), MMK (MAGN RX), NLMK (NLMK RX) and Erdemir (EREGL TI)
💰Despite the appealing valuations of global steelmakers (X US and MT US trade at 0.6-0.9х 1-y fwd EV/EBITDA and with ~50-60% FCF yields), the momentum for steels remains negative. We anticipate global steel prices cooling further, with more recession-related news to hit steelmakers’ quotes
📉For Russian steelmakers, on top of the weakening global steel market, we expect sector newsflow to remain negative in the next couple of months. As such, the short-term pressure is likely to persist and an attractive entry point might be some 1-2 months ahead
#steel
•Among steelmakers, we would consider 6 companies: ArcelorMital (MT US), US Steel (X US), Severstal (CHMF RX), MMK (MAGN RX), NLMK (NLMK RX) and Erdemir (EREGL TI)
💰Despite the appealing valuations of global steelmakers (X US and MT US trade at 0.6-0.9х 1-y fwd EV/EBITDA and with ~50-60% FCF yields), the momentum for steels remains negative. We anticipate global steel prices cooling further, with more recession-related news to hit steelmakers’ quotes
📉For Russian steelmakers, on top of the weakening global steel market, we expect sector newsflow to remain negative in the next couple of months. As such, the short-term pressure is likely to persist and an attractive entry point might be some 1-2 months ahead
#steel
Morning Bites
💍LVMH has reported a 13% YoY increase in the organic sales of watches and jewellery in 2Q22. Even though the growth rate remained strong, it decelerated from 19% YoY in 1Q22 and 21% YoY in 4Q21. According to the company, the growth was mainly driven by the continuing momentum in US jewellery sales. However, in its 2022 outlook the company noted risks related to the current economic environment and to the pandemic. We also believe that inflationary pressure and the global economic slowdown pose risks to the downstream diamond demand
💍China’s jewellery and watch retail sales rose 8% YoY in June, bouncing back from the 16% YoY decline in May. The recovery was mostly caused by easing COVID restrictions in the country. The rebound of China’s jewellery sales was positive for diamond demand; however, the future dynamics is subject to the risk of global recession
#diamonds
💍LVMH has reported a 13% YoY increase in the organic sales of watches and jewellery in 2Q22. Even though the growth rate remained strong, it decelerated from 19% YoY in 1Q22 and 21% YoY in 4Q21. According to the company, the growth was mainly driven by the continuing momentum in US jewellery sales. However, in its 2022 outlook the company noted risks related to the current economic environment and to the pandemic. We also believe that inflationary pressure and the global economic slowdown pose risks to the downstream diamond demand
💍China’s jewellery and watch retail sales rose 8% YoY in June, bouncing back from the 16% YoY decline in May. The recovery was mostly caused by easing COVID restrictions in the country. The rebound of China’s jewellery sales was positive for diamond demand; however, the future dynamics is subject to the risk of global recession
#diamonds
👍1
Morning Bites (part 1)
💎De Beers has reported sales of USD 630mn at its 6th cycle in 2022. This was 23% above the historical average and also 23% higher YoY. According to De Beers CEO Bruce Cleaver, the company saw steady demand for rough diamonds in the 6th cycle, although the diamond industry might be exposed to the risks that the current macroeconomic conditions are bringing to consumer sentiment
#diamonds
💎De Beers has reported sales of USD 630mn at its 6th cycle in 2022. This was 23% above the historical average and also 23% higher YoY. According to De Beers CEO Bruce Cleaver, the company saw steady demand for rough diamonds in the 6th cycle, although the diamond industry might be exposed to the risks that the current macroeconomic conditions are bringing to consumer sentiment
#diamonds
Morning Bites (part 2)
📉Russian gold output fell 13.6% YoY in June, with the decline accelerating from 9.0% YoY in May. In 1H22, the country’s gold production was down 6.7% YoY. If Russia’s gold production continues to decline at the June rate, the total output for 2022 might be down ~10% YoY (which would be close to the estimate previously provided by the Union of Gold Producers of Russia). Given that in 2021, Russia accounted for some 9% of global gold mine production, this might slightly support gold prices
🏆China’s gold output rose 17% YoY in 2Q22 (vs. +12% YoY in 1Q22), according to China Gold Association. Meanwhile, China’s gold consumption fell 16% YoY in 2Q22, driven by the 15% YoY decline in gold jewellery demand, weakened by COVID restrictions. China’s rising gold production might be a negative factor for gold prices, since the country accounts for 9% of global gold output
#gold
📉Russian gold output fell 13.6% YoY in June, with the decline accelerating from 9.0% YoY in May. In 1H22, the country’s gold production was down 6.7% YoY. If Russia’s gold production continues to decline at the June rate, the total output for 2022 might be down ~10% YoY (which would be close to the estimate previously provided by the Union of Gold Producers of Russia). Given that in 2021, Russia accounted for some 9% of global gold mine production, this might slightly support gold prices
🏆China’s gold output rose 17% YoY in 2Q22 (vs. +12% YoY in 1Q22), according to China Gold Association. Meanwhile, China’s gold consumption fell 16% YoY in 2Q22, driven by the 15% YoY decline in gold jewellery demand, weakened by COVID restrictions. China’s rising gold production might be a negative factor for gold prices, since the country accounts for 9% of global gold output
#gold
Morning Bites (part 1)
🏦Global central banks’ net purchases of gold increased to 59t in June, from 33t in May, according to the World Gold Council. The biggest buyer was Iraq, which purchased 34t, while Uzbekistan bought 9t in June (the same as in May), while Turkey’s gold reserves increased 8t in June (vs. 13t of gold purchased in May). It is noteworthy that none of the central banks sold gold in June. The accumulation of gold reserves by central banks might be a positive factor for gold prices. We also note that in 2021, the massive purchases of gold by central banks were triggered by the gold price declining to USD 1,700/oz
#gold
🏦Global central banks’ net purchases of gold increased to 59t in June, from 33t in May, according to the World Gold Council. The biggest buyer was Iraq, which purchased 34t, while Uzbekistan bought 9t in June (the same as in May), while Turkey’s gold reserves increased 8t in June (vs. 13t of gold purchased in May). It is noteworthy that none of the central banks sold gold in June. The accumulation of gold reserves by central banks might be a positive factor for gold prices. We also note that in 2021, the massive purchases of gold by central banks were triggered by the gold price declining to USD 1,700/oz
#gold
Morning Bites (part 2)
🏆Global physical gold demand fell 2% YoY to 956t in 2Q22, with the decline decelerating from 13% YoY in 1Q22, according to the World Gold Council. At the same time, global total gold demand was down 9% YoY in 2Q22 (vs. +34% YoY in 1Q22). The decline in physical gold demand was mostly driven by the 14% YoY drop in the demand from central banks and other institutions. However, the demand for gold jewellery rose 4% YoY in 2Q22, reversing from the 7% YoY decline in 1Q22, on the back of the 49% YoY increase in India’s gold jewellery demand. Meanwhile, gold mine production rose 4% YoY in 2Q22, slightly accelerating from the 2% YoY increase in 1Q22
#gold
🏆Global physical gold demand fell 2% YoY to 956t in 2Q22, with the decline decelerating from 13% YoY in 1Q22, according to the World Gold Council. At the same time, global total gold demand was down 9% YoY in 2Q22 (vs. +34% YoY in 1Q22). The decline in physical gold demand was mostly driven by the 14% YoY drop in the demand from central banks and other institutions. However, the demand for gold jewellery rose 4% YoY in 2Q22, reversing from the 7% YoY decline in 1Q22, on the back of the 49% YoY increase in India’s gold jewellery demand. Meanwhile, gold mine production rose 4% YoY in 2Q22, slightly accelerating from the 2% YoY increase in 1Q22
#gold
Morning Bites
🚘Global EV sales (passenger cars and light-duty vehicles) rose 56% YoY in June, accelerating from the 49% YoY growth in May, according to Rho Motion. These strong dynamics were mostly driven by the acceleration in China’s sales growth to 129% YoY in June (from 105% YoY in May), on the back of new government support measures. Moreover, the growth rate of US & Canada EV sales also accelerated, to 26% YoY in June (from 14% YoY in May). However, EU & UK EV sales fell 6% YoY in June, reversing from the 5% YoY increase in May. The robust growth in global EV sales is supportive for the demand for battery metals (nickel, lithium and cobalt)
#EV #nickel #lithium #cobalt
🚘Global EV sales (passenger cars and light-duty vehicles) rose 56% YoY in June, accelerating from the 49% YoY growth in May, according to Rho Motion. These strong dynamics were mostly driven by the acceleration in China’s sales growth to 129% YoY in June (from 105% YoY in May), on the back of new government support measures. Moreover, the growth rate of US & Canada EV sales also accelerated, to 26% YoY in June (from 14% YoY in May). However, EU & UK EV sales fell 6% YoY in June, reversing from the 5% YoY increase in May. The robust growth in global EV sales is supportive for the demand for battery metals (nickel, lithium and cobalt)
#EV #nickel #lithium #cobalt
Morning Bites
🌏Global manufacturing PMIs slid in July. The US ISM manufacturing PMI declined to 52.8, from 53.0 in June, although it outperformed the Bloomberg consensus estimate of 52.0. The Eurozone Markit Manufacturing PMI fell to 49.8, from 52.1 in June (slightly above the market forecast of 49.6), entering the contraction area for the first time since June 2020. Moreover, China's official PMI decreased to 49.0 (from 50.2 in June), falling short of the consensus estimate of 50.4. Furthermore, China's Caixin manufacturing PMI declined to 50.4 in July, from 51.7 in June (missing the market forecast of 51.5). Below-50 manufacturing PMIs in China and the Eurozone indicate a manufacturing sector contraction in these regions, which supports our negative view on the demand for industrial metals. Meanwhile, even though the US Manufacturing PMI remained above 50, its negative dynamics imply that manufacturing activity in the US is softening
#PMIs
🌏Global manufacturing PMIs slid in July. The US ISM manufacturing PMI declined to 52.8, from 53.0 in June, although it outperformed the Bloomberg consensus estimate of 52.0. The Eurozone Markit Manufacturing PMI fell to 49.8, from 52.1 in June (slightly above the market forecast of 49.6), entering the contraction area for the first time since June 2020. Moreover, China's official PMI decreased to 49.0 (from 50.2 in June), falling short of the consensus estimate of 50.4. Furthermore, China's Caixin manufacturing PMI declined to 50.4 in July, from 51.7 in June (missing the market forecast of 51.5). Below-50 manufacturing PMIs in China and the Eurozone indicate a manufacturing sector contraction in these regions, which supports our negative view on the demand for industrial metals. Meanwhile, even though the US Manufacturing PMI remained above 50, its negative dynamics imply that manufacturing activity in the US is softening
#PMIs
Morning Bites - 2Q22 operating updates from key uranium miners (~53% of global mine supply)
⛏Kazatomprom has reported a 7% YoY decrease in production volumes in 2Q22 due to the lagged impact of COVID on wellfield development in 2021. However, the company has reiterated its 2022 production guidance of 21-22ktU. Meanwhile, sales volumes rose 31% YoY in 2Q22, due to the timing of customer-scheduled deliveries
⛏Cameco has reported 115% YoY production growth in 2Q22. This came from a low base, as operations at Cigar Lake were suspended until April 2021. Cameco reiterated its 2022 production guidance (100% basis) at up to 7.7ktU, with commissioning delays at McArthur River being exactly offset by the successful development work at Cigar Lake
❗️On the demand side, due to the energy crisis, Germany and South Korea (1% and 7% of global U demand, respectively) are considering cancelling their nuclear phase-out plans, which might support the demand for U. Overall, we still see a U market deficit in 2022
#uranium
⛏Kazatomprom has reported a 7% YoY decrease in production volumes in 2Q22 due to the lagged impact of COVID on wellfield development in 2021. However, the company has reiterated its 2022 production guidance of 21-22ktU. Meanwhile, sales volumes rose 31% YoY in 2Q22, due to the timing of customer-scheduled deliveries
⛏Cameco has reported 115% YoY production growth in 2Q22. This came from a low base, as operations at Cigar Lake were suspended until April 2021. Cameco reiterated its 2022 production guidance (100% basis) at up to 7.7ktU, with commissioning delays at McArthur River being exactly offset by the successful development work at Cigar Lake
❗️On the demand side, due to the energy crisis, Germany and South Korea (1% and 7% of global U demand, respectively) are considering cancelling their nuclear phase-out plans, which might support the demand for U. Overall, we still see a U market deficit in 2022
#uranium