Toll Brothers (TOL) announced better-than-expected earnings last week, and the most surprising number was the increase in average selling prices.
With Australia and Brazil increasing output and no weather disruption seen, higher iron ore prices appears to reflect an increase in China’s economic activity.
Total U.S. rig counts have continued to rise over the past few weeks. Most major oilfield service companies expected U.S. rig counts to be flat-to-down.
Generally, a capacity increase tends to lag demand growth, as producers like to see a stronger market before making significant investments.
The spread between WTI and Brent narrowed this past week due to higher refinery demand.
Given that the economy could have depressed household formation numbers, there’s real pent-up demand for housing.
Iron ore inventory at Chinese ports is an important factor that affects future shipping rates, since it reflects the safety net.
Ukraine is a key supplier of urea for the global market. As one of the costlier manufacturers in the world, its cost has set the floor price for the fertilizer.
Weather that was much colder than normal helped boost natural gas prices as well as propane prices, helping select MLPs.
In 2013, we saw that urea prices fell to as low as $300 per metric tonne, which was the price floor established for many coal-based urea producers in China.
Natural gas liquids traded down on the week, though they remain up significantly since mid-2013 lows.
One can see how this business could be much larger than it is today while maintaining its leadership position.
Housing starts have been highly depressed since the real estate collapse. Even a marginal increase in demand should drive homebuilders forward.
Because China is the largest importer of raw material in the world, China’s manufacturing is a key driver that affects shipping demand and rates.
This might come as a surprise, but the United States was once a marginal producer along with oil-linked Western European producers.
WTI crude prices slipped slightly, as the markets feared imminent Fed tapering, which could dampen the U.S. economy and therefore U.S. demand for oil.
CafePress said in its annual report that the market for customized products and services is large, fragmented, and intensely competitive.
Overall, increases in business activity and consumption are starting to drive more business for homebuilders.
According to Golden Ocean Group’s recent presentation, Arrow Research is projecting growth of approximately 10% for Panamax and 6% for Capesize vessels.
Today, PRSS is mostly a domestic business with only 15% of the business overseas, mostly in Europe.