LiveWire

The shortage in silicon metal, sparked by a production cut in China, has sent prices up 300% in less than two months. It’s the latest in a litany of disruptions, from snarled supply chains to a power crunch, that are creating a destructive mix for companies and consumers. @TME

Coal (XW1) and natural gas (NG1) are both up by nearly ~190% each since January 2020: In recent months, there has been a sharp price rally in two of the key energy commodities (coal and natural gas) – both have seen price rises of 140%-150% year to date versus oil up ~55%. Intriguingly, though, when comparing the price performance of coal and natural gas since January 2020, we see an almost identical increase of ~190%, materially outperforming Brent Oil (up ~20%) and XLE (US Energy, down 13% in the same period). @TME

Due to a labor shortage and a reluctance to open new mines, the US coal offer struggles to keep up with demand. Coal prices are also up 40% in China, while in Europe, they almost tripled since the start of the year. Deliveries are also running two to four weeks late. This is all de to a global recovery that drives an unseen demand for more power. Source: Bloomberg

Contrary to a SPX comparison, it looks more clear than ever the correlation between Iron Ore strength and Aussie FX. While Iron Ore is going for a nose dive, the AUD is actually sustaining the level decently well. However, looking at terms of trade, the AUD/USD is not a terrible place to start looking at. @TME

Oil rallied at the start of the week as the market is showing signs of a tightening supply. West Texas Intermediate tapped in the $75 range on Monday trading. Oil price has risen 80% over the past year as there was a worldwide renewed demand since the pandemic recovery. A stronger than expected demand in the near term combined with a consciously tightened supply could make prices rise even higher. Source: Bloomberg