Five Key Charts to Watch in Global Commodity Markets This Week

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(Bloomberg) — The scrap copper industry in the US is hustling to move piled up supplies over to China now that the two superpowers have put their trade dispute on a temporary pause. South Korea’s homegrown atomic technology has the world’s attention. And, US Health Secretary Robert F. Kennedy Jr.’s desire for diet changes has the potential to impact the global food supply chain.  

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Here are five notable charts to consider in global commodity markets as the week gets underway.

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Scrap Copper

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The three-month détente in the trade war between the US and China is welcome news for the scrap copper industry. Mountains of the metal had been piling up at yards across the US, while Chinese processors — historically the biggest buyers of American shipments — scrambled for enough raw material. Now, the rush is on to move as much of the metal as possible while flows are open.  

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Nuclear Energy

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With demand for energy surging, the global nuclear industry is seeing a dramatic revival — and one country is taking the spotlight. South Korea’s nuclear industry is thriving as its homegrown technology attracts attention from Western countries seeking reliable, low-emission power without involving Russia or China. The country is poised to become one of the biggest exporters of atomic technology over the next decade, with a potential to win business for as much as 43% of planned and proposed nuclear reactors worldwide.

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Food Supply 

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Under the Trump administration, the US is looking at ways to curb ultra-processed foods and discourage the use of seed oils, colorings, high-fructose corn syrup and pesticides. The ingredients help to make American diets among the cheapest in the world, but Kennedy also blames them for contributing to poor health. Six in 10 Americans have at least one chronic disease, and obesity rates are the highest among the most developed countries. A shift toward organic and natural ingredients would require significant changes to the food supply chain and potentially impact prices. While a growing number of studies show that ultra-processed foods are unhealthy, experts are split over issues such as whether seed oils on their own are bad.

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Oil

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High-sulfur fuel oil — a gloopy substance used to power ships and generate electricity — is now almost as valuable as crude oil, according to figures for northwest Europe from pricing provider General Index. That’s a boon for many refiners, who are also profiting from healthy margins for motor fuels. HSFO, one of the dirtiest types of petroleum, usually trades at a steep discount to crude in northwest Europe. But that gap is now all but erased thanks, in part, to demand from the shipping and power sectors.

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Gasoline

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Americans hitting the road this upcoming holiday weekend will have plenty of company and a break for their wallets. About 39.4 million Americans will drive this Memorial Day weekend, up 3.1% from last year and the most in 20 years, according to the American Automobile Association. Some 3.61 million people plan to fly, only a 1.7% gain. The national average pump price of gasoline is about $3.19 a gallon, 40 cents a gallon cheaper than a year earlier, making road trips more appealing.

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—With assistance from Will Wade, Heesu Lee, Ilena Peng, Deena Shanker and Agnieszka de Sousa.

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