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SHFE base metals all higher as market gears up after holidays

Base Metals News - Fri, 02/23/2018 - 02:46

Base prices on the Shanghai Futures Exchange (SHFE) rose across the board during Asian morning trading on Friday February 23, the second trading day after Lunar New Year holidays.

The May nickel contract on the SHFE stood at 104,880 yuan ($16,543) per tonne as of 10.00 am Shanghai time, up by 2,040 yuan – or 2% – from the previous session’s close of 102,840 yuan per tonne.

“There is still a lot to like about nickel, which is starting to recover meaningfully from a very low base. It has embarked on an upward trend amid the rising profile of electric vehicles (EVs), which gives a bullish outlook for global nickel consumption,” according to Metal Bulletin analyst Andy Farida.

“Meanwhile, uncertainty continues to dog the sector, which reflects a lack of resolution about environmental policies – 13 of 30 nickel mines reported zero production during the year. Indonesia nickel ore producers are likely to replace the lost output from material the Philippines after the relaxation on its export ban,” according to Farida.

The most-traded SHFE April copper contract price stood at 53,530 yuan per tonne, up 780 yuan – or 1.5% – compared with the previous session’s close of 52,750 yuan per tonne, following stronger LME copper prices.

The three-month LME copper price increased $43 to $7,162 per tonne during the previous trading session. Stocks declined a net 2,500 tonnes to 334,675 tonnes, with 10,800 tonnes freshly cancelled.

Meanwhile, HudBay Minerals reported strong revenue and profits during 2017, notably due to higher-than-expected copper output and and solid zinc production.

SHFE base metals all up 

  • The SHFE April aluminium contract price increased 210 yuan, or 1.5%, to 14,335 yuan per tonne.
  • All eyes are on the recommendations from the Section 232 report, released last Friday. US President Trump has a deadline of April 19 to impose any one of the US Department of Commerce’s recommendations, which is causing heightened uncertainty.
  • The SHFE April zinc contract price was up 340 yuan, or 1.3%, at 26,670 yuan per tonne.
  • The SHFE April lead contract price increased by 75 yuan, or 0.4%, to 19,370 yuan per tonne.
  • The SHFE May tin contract price rose by 100 yuan, or 0.1%, to 147,280 yuan per tonne.

Currency moves and data releases

  • The dollar index decreased by 0.03% to 89.82 as of 10.38am Shanghai time.
  • In other commodities, the Brent crude oil spot price was up by $0.26 at $66.43 barrel as of 10.38am Shanghai time.
  • In equities, the Shanghai Composite was up by 0.7% at 3,291.38 as of 10.40am Shanghai time.
  • In yesterday’s data, the US weekly unemployment claims came in at 222,000, 8,000 below the expectations of 230,000. Later, the CB leading index, natural gas storage and crude oil inventories are all slated for release.
  • In data today, EU CPI readings and the CB leading index of China are due out, while US FOMC member William Dudley and Loretta Mester are speaking.

The post SHFE base metals all higher as market gears up after holidays appeared first on FastMarkets.

Categories: Metals Industry News

LIVE FUTURES REPORT 23/02: SHFE base metals all higher as market gears up after holidays

Base Metals Market - Fri, 02/23/2018 - 02:46
Base prices on the Shanghai Futures Exchange (SHFE) rose across the board during Asian morning trading on Friday February 23, the second trading day after Lunar New Year holidays.
Categories: Metals Industry News

PEOPLE MOVES: Rusal appoints Alexandra Bouriko as new CEO

Base Metals Market - Fri, 02/23/2018 - 01:40
US Rusal has appointed Alexandra Bouriko as the new Chief Executive Officer (CEO) of the company, according to the company announcement on Friday February 23.
Categories: Metals Industry News

Section 232 isolating US from global ali flow

Base Metals Market - Thu, 02/22/2018 - 22:26
The proposed Section 232 investigation remedies by the United States Commerce Department are being felt in the global market, with the common theme being a reorganization of the world’s supply chains to remove the US from the trade flow.
Categories: Metals Industry News

HOTTER ON METALS: Meet Liam, Apple’s robot recycler

Base Metals Market - Thu, 02/22/2018 - 22:05
Apple has been experimenting with ways to recover cobalt from its lithium-ion batteries and to use recycled cobalt.
Categories: Metals Industry News

Albanese, Nutter join Nevada Copper board

Base Metals Market - Thu, 02/22/2018 - 18:22
The former chief executive officer of Rio Tinto and Vedanta Resources, Tom Albanese, has joined an advisory board at flourishing miner Nevada Copper, in the expectation of being nominated for membership of the company’s board at an annual general meeting in April.
Categories: Metals Industry News

LIVE FUTURES REPORT 22/02: LME copper price recovers in afternoon trading; other base metals still under pressure

Base Metals Market - Thu, 02/22/2018 - 17:55
The three-month copper price on the London Metal Exchange was the only base metal to close in positive territory on Thursday February 22, with the rest of the complex caught in a sell-off.
Categories: Metals Industry News

Wieland-Werke seeks copper growth outside Europe after Aurubis division acquisition

Base Metals Market - Thu, 02/22/2018 - 17:35
Wieland-Werke will strengthen its position as Europe’s largest semi-finished copper products producer by acquiring Aurubis’ rolled-products division later this year, yet the deal is intended to kickstart growth in the US and Asian markets, chief executive officer Erwin Mayr told Metal Bulletin.
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LIVE FUTURES REPORT 22/02: Comex copper recovers amid dollar weakness

Base Metals Market - Thu, 02/22/2018 - 15:40
Comex copper prices bounced-back on Thursday February 22 morning in the US, after a minor rout with a weaker dollar and solid US data lifted the complex.
Categories: Metals Industry News

Kaz Minerals more than doubles 2017 profit on copper sales; eyes higher output

Base Metals Market - Thu, 02/22/2018 - 15:12
Kaz Minerals more than doubled its underlying profit last year to $476 million on strong copper sales, the London-listed copper miner said on Thursday February 22.
Categories: Metals Industry News

2018 a ‘turning point’ for zinc concs market; TCs to rebound – Nyrstar CEO

Base Metals News - Thu, 02/22/2018 - 14:45

Nyrstar places the zinc concentrate market at a “turning point” and expects treatment charges (TCs) to increase in 2018, chief executive officer of Nyrstar, Hilmar Rode, said in a conference call after the company released its annual results today.

Zinc concentrate spot treatment charge (TC) CIF Asia Pacific, $/tonne Lower TCs and conservative hedging arrangements weighed on Nyrstar’s 2017 profits, which rose just 5% on an annual basis to €206 million ($253.74 million) in 2017 despite a 38% surge in the average zinc price, according to Nyrstar’s results report.

The London Metal Exchange 3-month zinc price increased 29.1% over 2017, from $2,567.50 per tonne on January 2 to $3,316 per tonne on December 29 (the first and last working days of the year).

Nyrstar, which mines zinc for internal processing and purchases concentrates on a spot and annual contract basis, achieved an average TC for total purchased tonnes of $40 per tonne below the $172 benchmark level agreed for 2017.

“We see no reason for that $40 per tonne discount to the benchmark to change,” Rode said of the 2018 TCs negotiation. “We do believe the zinc industry is approaching a turning point in the TC cycle, so we expect TCs to start increasing during 2018,” Rode added.

Rode’s comments come while annual zinc concentrate supply contract negotiations are underway, with smelters refusing to accept a slash in TCs and arguing that the mine supply deficit in previous years is switching to a balance.

“That means in terms of TCs that bargaining power will start to transfer from the miners to the smelters,” Rode said.

Industry sources told Metal Bulletin some initial offers for smelters are as low as $90 per tonne, representing a sharp cut of 50% from the 2017 level , citing uncertain mined zinc supply.

Miners and smelters were said to be closer to reaching an agreement with terms in a $140-155-per-tonne range during negotiations, according to participants at the IZA conference last week.

“We do not see some of the views, in terms of earlier offers the mine made us, as coming to pass. We are pretty confident.” Rode said.

Spot zinc TCs sank to multi-year lows at a $10-30 per tonne level, cif Asia Pacific, amid Chinese smelters’ increase in January orders, according to Metal Bulletin’s assessment at the end of last month, which represented a $10 drop due to an extremely tight market.

Last year, Nyrstar, Europe’s largest zinc producer, generated 1,019,000 tonnes of zinc metal. This was flat year on year due to the unusual heavy maintenance schedule and unplanned outages at Budel and Hobart.

Meanwhile, its mined zinc output surged 28% to 123,000 tonnes following the restart of Middle Tennessee, which aims to attract would-be buyers.

In 2018, Nyrstar’s output of zinc metal is expected to rise to 1,050,000-1,100,000 tonnes and mined zinc output should hit 160,000-180,000 tonnes.

Its protective hedging arrangement, which applies to 70% of its free metal output, also prohibited Nyrstar from fully capitalizing on the 38% gains in the average zinc price in 2017.

The post 2018 a ‘turning point’ for zinc concs market; TCs to rebound – Nyrstar CEO appeared first on FastMarkets.

Categories: Metals Industry News

2018 a 'turning point' for zinc concs market; TCs to rebound – Nyrstar CEO

Base Metals Market - Thu, 02/22/2018 - 14:45
Nyrstar places the zinc concentrate market at a “turning point” and expects treatment charges (TCs) to increase in 2018, chief executive officer of Nyrstar, Hilmar Rode, said in a conference call after the company released its annual results today.
Categories: Metals Industry News

NORTH AMERICAN MORNING BRIEF: LME base metals sell off; Anglo American FY earnings jump; Cobalt 27 agrees royalty for Dumont

Base Metals Market - Thu, 02/22/2018 - 12:30
Good morning from Metal Bullet’s London office, bringing the latest news and pricing stories on Thursday February 22.
Categories: Metals Industry News

Cobalt 27 forms subsidiary to manage streaming, royalty investments

Base Metals Market - Thu, 02/22/2018 - 12:01
Cobalt 27 has formed Electric Metals Streaming, a wholly-owned subsidiary incorporated in Ontario, Canada, to manage its future streaming and royalty investments.
Categories: Metals Industry News

Cobalt 27 agrees royalty on Dumont nickel-cobalt project

Base Metals Market - Thu, 02/22/2018 - 11:22
Cobalt 27 has agreed a 1.75% net smelter return (NSR) royalty on future production of all metals, including nickel and cobalt, from the Dumont nickel sulphide project in Canada.
Categories: Metals Industry News

LIVE FUTURES REPORT 22/02: LME base metals fall across the board; sell-off as Chinese traders return

Base Metals Market - Thu, 02/22/2018 - 10:35
Base metals prices on the London Metal Exchange were lower across the board during morning trading on Thursday February 22, with a sell-off taking place following China’s return to the market.
Categories: Metals Industry News

SHFE vs LME physical arbitrage 22/02: Copper, aluminium, zinc, nickel

Base Metals Market - Thu, 02/22/2018 - 09:15
The arbitrage for copper, aluminium, zinc and nickel imported into China on Thursday February 22*
Categories: Metals Industry News

Metals morning view: Metals sell off as China returns from holiday

Base Metals News - Thu, 02/22/2018 - 09:00

The metals prices on the London Metal Exchange on Thursday February 22 are down an average of 1.6%, with nickel prices down the most with a 2.3% decline to $13,460 per tonne and copper prices off 1.6% at $7,024 per tonne.

With China back at work after the Lunar New year holiday, volumes on the LME have been high with 16,127 lots traded as of 07:32 am London time.

Wednesday’s trading had seen some strength ahead of China’s return to work, with copper, aluminium, nickel and tin closing up by an average of 1.2% – although lead and zinc closed down an average of 0.7%. This morning’s performance suggests Chinese traders have returned  to seefirmer prices and have sold into them.

Precious metals prices are for the most part weaker, with gold, silver and platinum prices off an average of 0.4%, while palladium prices are up 0.1%. The firmer dollar is no doubt weighing on sentiment.

In wider markets, spot Brent crude oil prices are weaker by 0.28% at $64.84 per barrel and the yield on US 10-year treasuries remains firm at 2.94% as US treasury auctions are underway, and the German 10-year bund yield has firmed to 0.73%.

In equity markets, China has returned on a positive footing with the CSI 300 up 2.16%. Elsewhere, the ASX 200 is up 0.12%, while the Nikkei is down 1.07%, the Hang Seng is off 1.31% and the Kospi is down 0.63%. This follows a weaker performance in western markets on Wednesday, where in the United States the Dow Jones closed down by 0.67% at 24,797.78, and in Europe where the Euro Stoxx 50 closed down by 0.14% at 3,430.16.

The dollar index’s rebound continues, it was recently quoted at 90.16, the fifth consecutive day of gains. This is applying some downward pressure on other currencies, with the euro at 1.2271, sterling at 1.3882 and the Australian dollar at 0.7796. But the yen’s slide had halted – it was recently quoted at 107.40, having touched 107.90 yesterday. The yuan has dropped to 6.3616 – before the Lunar New Year holiday it was around 6.3440 – and the emerging market currencies we follow remain on a back footing, which reflects the slightly firmer dollar and concern over rising US treasury yields.

The economic calendar is busy today as it includes French CPI, the German Ifo business climate, UK data on GDP, business investment, index of services and CBI realized sales, with US data including initial jobless claims, leading indicators, natural gas storage and crude oil inventories. In addition, Federal Open Market Committee member Raphael Bostic is speaking.

The base metals are on a back footing this morning. The fact Chinese traders have not come back in a bullish mood suggests overhead resistance may prove difficult to overcome for a while. With yesterday’s PMI reading, ex-US weaker than January’s readings, the economic climate looks less bullish. But that said, with most readings above 55 – so well above the 50 divide -, the global economy remains in expansion mode and that is bullish for the outlook for metals demand. As such, we would let this weakness runs its course and see the dips as leading to buying opportunities.

Another turn around in the dollar has weighed on gold, especially as it has happened when gold prices are once again challenging recent highs. While the US treasury auctions have been underway, yields have remained bid and that has underpinned the dollar and weighed on gold. We wait to see what follows once the auctions are out the way. We expect dips to remain well supported.

Overnight Performance GMT 07:32 +/- +/- % Lots Cu 7,024 -111.5 -1.6% 3,988 Al 2,174 -33.5 -1.5% 3,869 Ni 13,460 -320.0 -2.3% 1,882 Zn 3,460 -75.5 -2.1% 5,534 Pb 2,526 -36.5 -1.4% 822 Sn 21,495 -110.0 -0.5% 32 Average BM   -1.6%      16,127 Gold  1,320.98 -5.17 -0.4%   Silver        16.43 -0.08 -0.5% Platinum      987.50 -2.50 -0.3% Palladium  1,021.50 1.50 0.1% Average PM   -0.2%

 

SHFE Prices 07:34 GMT RMB Change % Change Cu      52,760           200 0.4% AL      14,130 –         140 -1.0% Zn      26,325 –         155 -0.6% Pb      19,270             80 0.4% Ni   102,810           470 0.5% Sn   147,140 –      1,270 -0.9% Average change (base metals) -0.2% Rebar  3,862.00 –      72.00 -1.8% Au      273.85 –        1.15 -0.4% Ag  3,676.00 –      31.00 -0.8% Iron Ore (DCE) May’18 538.5 3 0.6%

 

Economic calendar GMT Country Data Actual Expected Previous  7:45am France French Final CPI m/m -0.1% -0.1% 9:00am Germany German Ifo Business Climate 117.1 117.6 9:30am UK Second Estimate GDP q/q 0.5% 0.5% 9:30am UK Prelim Business Investment q/q 0.5% 0.5% 9:30am UK Index of Services 3m/3m 0.4% 0.4% 11:00am UK CBI Realized Sales 13 12 12:30pm EU ECB Monetary Policy Meeting Accounts 1:30pm US Unemployment Claims 230K 230K 3:00pm US CB Leading Index m/m 0.7% 0.6% 3:00pm US FOMC Member Dudley Speaks 3:30pm US Natural Gas Storage -121B -194B 4:00pm US Crude Oil Inventories 2.2M 1.8M 5:10pm US FOMC Member Bostic Speaks

The post Metals morning view: Metals sell off as China returns from holiday appeared first on FastMarkets.

Categories: Metals Industry News

METALS MORNING VIEW 22/02: Metals sell off as China returns from holiday

Base Metals Market - Thu, 02/22/2018 - 09:00
The metals prices on the London Metal Exchange on Thursday February 22 are down an average of 1.6%, with nickel prices down the most with a 2.3% decline to $13,460 per tonne and copper prices off 1.6% at $7,024 per tonne.
Categories: Metals Industry News

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