Market Movers Asia, Jan 30-Feb 3: Asian markets eye OPEC+ meet, China’s return from holiday for cues

This week, OPEC+ will meet, and different markets are banking on China’s restoration.

In oil, traders can be trying to the OPEC+ monitoring committee assembly on Feb. 1 for any modifications to the group’s output coverage.

The group is broadly anticipated to maintain ongoing output cuts of two million b/d unchanged by way of December 2023.

In petrochemicals, China’s reopening is seeding optimistic sentiment for the Asian paraxylene market.

Demand cues have intensified with an extra uptick anticipated after the Lunar New Year holidays. An enchancment in home demand bodes properly for PX manufacturing, with downstream PTA futures additionally benefitting from the development in sentiment.

An anticipated improve in new PX capability in China, coupled with larger anticipated manufacturing charges from February onwards, could mood costs.

However, demand is predicted to bounce again within the months forward, and the rise in output will not be prone to muzzle optimism for now.

In metals, South Korean steelmakers are additionally eyeing the Chinese financial restoration.

South Korea steelmakers are on account of launch their 2022 outcomes this week, that are anticipated to replicate weaker metal demand towards larger prices for power and uncooked supplies.

The unfavorable elements are anticipated to proceed into 2023, however the opening of China’s financial system can be prone to result in larger metal exports.

I’m Liz Thang. Thanks for kicking off your Monday with S&P Global Commodity Insights.