It is easy to focus on the myriad of issues for commodities presented by COVID-19, lockdowns, supply issues and demand changes and forget that geopolitical issues remain a huge factor exposing commodity firms to risk. While the former is in the news daily, it has also tended to mask the political tensions in markets. Today, for example, Reuters published a story about the EU opening an anti dumping probe into Chinese Aluminum following a complaint saying “The investigation will determine whether the product under investigation originating in the country concerned is being dumped and whether the dumped imports have caused injury to the Union industry,” according to that story. There was also a story about a US lawsuit to seize the Iranian oil aboard 4 tankers. Those tankers are now complying with that suit “after talks between U.S. authorities and ship owners, a U.S. government source and a shipping source said on Thursday,” the article reports adding that “the owners of the four vessels agreed to have the fuel transferred to other vessels so it could be shipped to the United States, a U.S. government source said on Thursday. The warrant only covered the cargoes, not the vessels.” The US… continue reading
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