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Futures data for September 16: 1. WTI crude oil futures trading volume was 573,921 contracts, down 339,581 contracts from the previous trading day. Open interest was 1,949,878 contracts, down 16,733 contracts from the previous trading day. 2. Brent crude oil futures trading volume was 81,265 contracts, down 105,520 contracts from the previous trading day. Open interest was 203,946 contracts, down 468 contracts from the previous trading day. 3. Natural gas futures trading volume was 404,152 contracts, down 102,010 contracts from the previous trading day. Open interest was 1,640,220 contracts, down 5,748 contracts from the previous trading day.On September 16, Assistant Governor of the Reserve Bank of Australia (RBA), Greg Hunt, stated that the central bank is "very close" to returning inflation to the midpoint of its 2%-3% target range, while the economy is nearing full employment. "We are monitoring the situation and will remain on the sidelines," Hunt said at an industry event in Sydney on Tuesday. "The committee will formulate policy accordingly. While its impossible to predict the future completely, for now we want to maintain the status quo." The RBA will hold its next meeting on September 29-30, and most economists and traders expect it to maintain the cash rate at 3.6%. Economists generally predict the bank will cut interest rates for the fourth time this year in November, followed by another cut early next year, bringing the terminal rate to 3.1%.On September 16th, in response to a users question about whether the Macrohard project was being advanced, Musk replied, "We are indeed spray-painting the words MACROHARD on the roof of the Colossus II supercomputing cluster in Memphis, large enough to be seen from space." Musk had previously stated that he was planning to establish a pure AI software company called Macrohard. The name was a bit of a joke, but the project itself was real. At the time, he also explained, "Given that software companies like Microsoft dont produce physical hardware themselves, it should be feasible to fully simulate it using AI."SK On announced on September 16th the completion of a pilot plant for all-solid-state batteries at its Future Technology Center in Yucheng District, Daejeon, South Korea. This pilot production line will primarily be used to provide trial products to customers and systematically evaluate and verify product quality and performance. The approximately 4,628-square-meter facility will be used by SK On to develop sulfide-based all-solid-state batteries, with some production lines also developing solid-state lithium metal batteries. SK On plans to commercialize all-solid-state batteries in 2029, a year ahead of its original target of 2030.Futures News, September 16th. Economies.com analysts latest view today: WTI crude oil futures prices have risen in recent intraday trading, thanks to their stable trading above the 50-period exponential moving average (EMA50), which has provided effective support for the intraday rebound attempt. Nevertheless, the dominant downtrend remains in effect in the short term, and prices are trading along a suppressive trendline, which limits the upward momentum and weakens the possibility of a continued rebound. In addition, the Relative Strength Index (RSI) has shown negative technical signs after reaching clear overbought territory, suggesting the risk of a short-term weakening of upward momentum.

BHP Seeks Demand Growth in China As Profits Decline

Charlie Brooks

Feb 21, 2023 11:26

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BHP Group (NYSE:BHP) reported a sharper-than-anticipated 32% decline in first-half profit due to a reduction in iron ore prices, sending its shares lower, although signaling an improvement in the outlook for China, its largest customer.


China's rigorous zero-COVID-19 policy stifled economic growth and depressed demand over the last year, bringing iron ore prices down from stratospheric levels as miners struggled with rising costs and a lack of domestic labor.


As a result, the largest publicly traded miner in the world recorded an underlying profit attributable to continuing operations of $6.6 billion, a decrease from $9.72 billion a year earlier.


This fell short of the $6.82 billion forecast by Vuma Financial, since earnings from copper and coal were lower than anticipated. Chilean road blockades impeded the delivery of mining supplies to the colossal Escondida copper mine, owned by BHP.


Nonetheless, despite a 40% decrease, its interim dividend of 90 cents per share exceeded Vuma Financial's projection of 88 cents.


The global miner's shares plummeted as high as 2.8% to A$47.11, their lowest level since January 6; by 01:38 GMT, they were down 2% in a market that was down 0.5%.


Analyst David Lennox of Sydney-based wealth firm Fat Prophets stated, "We have a 'hold' rating on BHP because its share price is sitting at record highs and the company will have to perform exceptionally well to justify those levels."


As a result of the growing marginal cost of production, the miner anticipates "much higher" price floors for certain commodities compared to before the COVID-19 outbreak.


"The delayed effect of inflation and sustained labor market shortages are likely to influence our cost base through the 2024 financial year," BHP said as it reported a $1 billion inflation hit for the half, mostly due to diesel costs.


According to analysts at RBC Capital Markets, BHP's first half performance was "surprisingly low, but a strong indicator of a continued tough inflationary environment for the mining industry."


BHP also predicted that last year's aggressive global interest rate increases would drastically restrict GDP in the developed countries.


But, after a challenging first half, the miner stated that China appears to be a "source of stability" for commodities demand, as the world's second-largest economy and top metals consumer reopens and seeks to recover its debt-laden real estate market.


Mike Henry, the chief executive officer of BHP, stated that the company's optimism on China's economy has been bolstered by signs of improvement it has observed since the beginning of the year, such as new loans, rising home prices, and positive business sentiment surveys.


On a conference call with reporters, he said, "There's a lot there that gives us confidence that we will see an acceleration in the Chinese home economy."


BHP moved the start of production at its massive Jansen potash project in Canada from 2027 to late 2026.


It also disclosed that it and its joint venture partner Mitsubishi Development had opted to sell two of their seven metallurgical coal mines in Queensland's Bowen Basin: Daunia and Blackwater.


BHP has vowed not to invest in Queensland since the state has the highest coal royalties in the world.