Chinese Lithium Giant Tests Investor Demand for Hong Kong IPO — Commodities Roundup

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MARKET MOVEMENTS:

–Brent crude oil edged up 0.4% to $113.51 a barrel.

–European natural gas prices rose 6.8% to EUR125.78 a megawatt hour.

–Copper prices declined 0.7% to $8,887 a metric ton.

–Gold was little changed at $1,840 a troy ounce.

TOP STORY:

Chinese Lithium Giant Tests Investor Demand for Hong Kong IPO

One of China’s top lithium producers began marketing what is expected to be Hong Kong’s largest initial public offering so far this year, braving recent market volatility to test global investor appetite for shares of new-energy companies.

Tianqi Lithium Corp. is aiming to raise more than $1 billion in a listing on Hong Kong’s stock exchange, according to a person familiar with the matter. The Chengdu, China-based company, which says it is one of the world’s largest producers of battery-grade lithium compounds, has been listed in Shenzhen since 2010. Its mainland shares have doubled in value over the past 12 months, giving it a market capitalization of around $26 billion, according to FactSet.

The company filed a revised prospectus on June 19 after passing a listing hearing in Hong Kong and earlier receiving approval from China’s securities regulator to sell shares in the Asian financial hub. It is expected to price its IPO on July 6 and start trading July 13, the person familiar with the deal said. The final deal size could change depending on investor demand.

OTHER STORIES:

Guinea Junta Frowns at Investors of Simandou Project

The military junta in Guinea Conakry has expressed regrets on delays to execute a tripartite agreement signed between the nation and three mining companies on the development of its huge iron ore reserves in Simandou.

“We see a gap between your vision of implementing the terms of the framework agreement and our expectations. This situation is not only regrettable, but also unacceptable for the government of Guinea,” Colonel Mamady Doumbouya told representatives of the investment triumvirat of the SMB-Winning Consortium and Rio Tinto on Friday at the country’s presidential palace.

Cocoa Trading Resumes in Nigeria’s Ekiti State After Governorship Election

Cocoa trading has resumed in Nigeria’s Ekiti State after the markets closed on Saturday during the region’s governorship elections, traders said Monday.

Tanzania to Auction 608.7 Metric Tons of Coffee Beans

Tanzania on Monday offered 608.7 metric tons of coffee beans at an online coffee auction, the Tanzania Coffee Board said.

Cocoa Grindings Rise on Year in Ivory Coast

The amount of crushed cocoa beans produced in Ivory Coast between October and May rose 11% on year, according to figures released Monday by Gepex, the association of cocoa exporters in the West African nation.

MARKET TALKS:

Palm Oil Declines for Fourth Straight Session

1010 GMT – Palm oil futures ended Asian trade lower, extending a losing streak for the fourth consecutive session, amid expectations for rising Indonesian exports. Indonesia appears on course for a large rebound in June exports after a sharp drop in May, says Avtar Sandu, senior commodities manager at Phillip Nova, in an research report. The benchmark Bursa Malaysia Derivatives contract for September delivery fell MYR476 to MYR4,978 a ton, marking the first time it has been below the MYR5,000 level since Feb. 18, according to Intercontinental Exchange data.

Oil Wavers Following Last Week’s Sell-Off

0821 GMT – Oil prices steady after sharp declines last week, driven by concerns about slowing economic growth. Brent crude, the international oil benchmark, wavers between small gains and losses, around the $113-a-barrel level. WTI edges up 0.1% to $108.07 a barrel. Prices slumped more than 7% last week, tracking sharp losses for global equity markets, as investors feared inflation and interest-rate hikes would damage growth. Still, analysts see a lack of supply supporting prices over the longer term. “The fundamental picture remains one of tightness amid the ongoing slowdown in Russian output,” say analysts at ANZ bank. (william.horner@wsj.com)

Base Metals Slip on Weak Macro Sentiment

0729 GMT – Base metal prices in London fall as weak macro-economic sentiment continues to pressure prices for industrial goods. Copper prices are down 0.8% to $8,883 a metric ton–the lowest price this year and 8.9% lower than the start of January. Aluminum is down 0.8% to $2,483.50 a ton. The mood is becoming increasingly “bearish,” and “investors are increasingly worried that hawkish central bank policies will trigger a global recession and cut demand for commodities,” Peak Trading Research says in a note. (yusuf.khan@wsj.com)

Thyssenkrupp’s Delay to Hydrogen Unit IPO Doesn’t Surprise

0710 GMT – Thyssenkrupp’s decision to postpone a potential listing of its hydrogen unit comes as no surprise given market volatility and a lack of IPOs this year, Jefferies analysts Alan Spence and Christopher LaFemina say in a research note. On Friday, the German industrial company said it would delay the IPO of the Nucera unit, given market conditions. The listing remains the preferred solution for the unit, a joint venture with Italy’s De Nora, it said. Thyssenkrupp has said proceeds of the move would be reinvested into the business to help fund its longterm growth, the analysts say. Jefferies keeps a buy rating on the stock with a EUR13.25 target price. (edward.frankl@dowjones.com)

Gold Gains at Midday; Safe-Haven Demand May Support

0402 GMT – Gold prices turn higher in midday Asian trade, after inching lower on a firm USD. The precious metal is likely to remain supported by safe-haven demand amid current macroeconomic uncertainties, though near-term upside may be capped by a strong greenback, UOB analysts say in a note. Spot gold is 0.4% higher at $1,845.60/oz. (justina.lee@wsj.com)

Write to Barcelona Editors at barcelonaeditors@dowjones.com