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1) For the first time in 3 years, the hedge funds on the London Metal Exchange are betting against copper, which is a reversal from a couple weeks ago in the wake of the numbers coming out of China. LME data shows that the overall market has shifted to a net short, which is the first time since June 2020 after the world's top consumer's (China) data pointed to a slowdown in its economy. At the beginning of the year, the sentiment was a bullish outlook on copper, based on renewed demand from China and the transition to green forms of energy generation. "The single largest variable that has disappointed people has been the pace of recovery of China’s metals demand," said Dwight Anderson, founder of Ospraie Management LLC. Although the current news is that it is a more conservative outlook on copper, just like Mr. Friedland said, it is a temporary one. With the green transition and companies looking to be zero carbon emitters, copper will be in high demand, as projected, to reach these goals.
2) Saudi Arabia is kicking off a project to explore and geologically map huge swathes of mineral deposits in the Arabian Shield region that is valued at ($207 million. The project is led by the General Program of the Geological Survey in partnership with the Chinese Geological Survey, and aims to generate detailed data of the Arabian Shield, understand the origin of the mineral deposits and strengthen the national geological database. The Arabian Shield is a region that flanks the Red Sea and also includes some parts of Egypt, Sudan and Ethiopia on the African continent. "The geological mapping project is the largest comprehensive strategy initiative for the mining sector in terms of the nature of the business, the volume of outputs and the coverage area,” said Bandar Alkhorayef, the minister of industry and mineral resources, at the inauguration of the project on Sunday.