EM ASIA CREDIT: JSW Steel extends closing of Mozambique coal asset
Jan-29 01:23
"*JSW STEEL: EXTENDED LONG STOP DATE FOR MINAS TRANSACTION" - BBG
- JSW (Jindal Group) is focused on growing its installed steel making capacity another 50mt by 2030/31 fiscal year. A key part of this strategy is to acquire access to raw materials. The acquisition of Minas de Revuboe Limitada (Mozambique), a large pre-development stage hard coking coal asset (800mt), is now delayed until 30 June 2025. The deal can't be finalised at present as a key asset, its coal mining lease, has been stripped from Minas by the government and offered to another player (Stonecoal SA). There is now a process of arbitration. As Stonecoal is linked to Jindal Steel & Power, and also part of the Jindal Group, a resolution isn't so clear cut. Neutral for spreads.
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CNH: Yuan Fix Marginally Higher
Dec-30 01:23
- CNY reference rate was fixed at 7.1899, only slightly higher than Friday’s 7.1893. The error with the estimate was down slightly.
- USDCNH is off its intraday high of 7.3023 to be flat on the day at 7.300.
- China’s yuan fixing was estimated at 7.2967, according to Bloomberg, with the range 7.2933 to 7.3032.
AUSSIE BONDS: Subdued Start To Week
Dec-30 01:03
In Tokyo morning trade, JGB futures are weaker but off session lows, -7 compared to settlement levels.
- The Jibun Bank/S&P Global Manufacturing PMI Index for December rose to 49.6 from 49 in November.
- Cash US tsys are slightly richer, with a steepening bias, in today’s Asia-Pac session after Friday’s heavy session.
- Cash JGBs are little changed across benchmarks. The benchmark 10-year yield is 0.4bp lower at 1.121% versus the cycle high of 1.1330% set earlier today.
- Swap rates are little changed apart from the 30-year (-3bps). Swap spreads are mixed.
KOREA: KRW Volatile As Political Uncertainty Continues
Dec-30 00:58
USDKRW finished Friday little changed at 1470.90 following a low of 1466.55 but has started today volatile rising to 1475.45 and then declining to 1468.55 and is currently around 1470, as political instability continues. The fatal crash of a Korean plane weighed on the won earlier but coordinated verbal support for markets has left USDKRW little changed and equities higher.
- Acting President Han Duck-soo was impeached on Friday and there were reports over the weekend that former president Yoon Suk Yeol ordered the use of guns to subdue politicians when he announced martial law.
- Han Duck-soo was impeached for apparently delaying the removal of Yoon Suk Yeol following his failed attempt to implement martial law early in December. The finance minister, Choi Sang-mok has become the third president this month.
- The government, Bank of Korea and regulators stated that markets will be monitored and action will be taken to ensure stability if needed.
- November IP was softer than expected falling 0.7% m/m to be up only 0.1% y/y after being unchanged and +6.3% y/y in October.
- Acting president Choi has called for a “strict” investigation” into Sunday’s fatal Jeju plane crash. Yonhap news reported today that another Jeju flight had to turn around due to a landing-equipment problem.
- Korean equities are rallying with the KOSPI up 0.8% and the KOSDAQ +1.4%.
