Friday September 27, 2019
1. China’s bauxite imports surge
- There are concerns that Indonesia might put a ban on bauxite exports, the raw material used for aluminum production, following restrictions on nickel exports. Nickel prices recently spiked.
- “While such a development would support bauxite and in turn aluminum prices, it would be less impactful for China than the nickel ban, in our view,” Standard Chartered wrote in a note.
- A 2014 ban on exports led China to diversify away from Indonesia. Prior to 2014, Indonesia accounted for 77 percent of China’s bauxite supply, but in the first half of 2019, only 13 percent of China’s bauxite supply came from Indonesia.
- Now, more than half of China’s bauxite comes from Guinea.
- China’s bauxite imports hit an all-time high in July.
2. Big Oil bets on Big Wind
- Norwegian oil company Equinor (NYSE: EQNR) will spend $11 billion on the Dogger Bank wind project in the UK North Sea.
- According to Rystad Energy, this will not only be the company’s largest project through 2026, but it will rank as the six largest offshore project in the entire world over that period. That includes offshore oil and gas projects.
- In fact, offshore wind can offers a path forward for oil companies and for servicers. “Equinor’s mega offshore wind investment promises hope for a deflated service industry. An eleven-digit…