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Metals Industry News

LIVE FUTURES REPORT 01/06: LME nickel hits 1-mth high; rest of complex consolidates

Base Metals Market - Fri, 06/01/2018 - 11:40
Base metals on the London Metal Exchange were mostly lower during morning trading on Friday June 1, with sideways trading predominantly in effect across the complex.
Categories: Metals Industry News

INTL NICKEL CONF: Even with EV boom, nickel market supplied through 2021 – Nornickel

Base Metals News - Fri, 06/01/2018 - 11:11

The global nickel market is expected to record a modest 70,000 tonne deficit in 2018 on the back of strong stainless steel production growth, Denis Sharypin, Nornickel head of market intelligence, said at Metal Bulletin’s International Nickel Conference in Toronto (May 31-June 1).

Nevertheless, the shortfall would still be less than the 107,000 tonne deficit posted in 2017 due to Indonesia and China having expeditiously ramped up nickel pig iron (NPI) production over the past year.

Nornickel, the largest refined nickel and palladium producer in the world, forecasts nickel demand will increase by 8% to 2.332 million tonnes this year based largely on a 130,000 tonne increase in Chinese and Indonesian stainless steel production and 38,000 tonnes in new battery demand.

“Stainless steel is going to continue to be the main driver of demand growth. Batteries may be growing at a very fast pace but it’s still from a very low base,” Sharypin said.

Meanwhile, global nickel supply is seen rising 10% to 2.253 million tonnes in 2018. The biggest sources of new supply will be China and Indonesia, which are expected to increase NPI output by 112,000 and 60,000 tonnes respectively this year.

Looking further ahead, Nornickel believes that batteries in electric vehicles (EVs) will be a major long-term generator of demand with an annual battery nickel growth rate of 24% from 2017 to 2025. This would equate to 440,000 tonnes of new nickel demand by 2025.

But, even with this significant incremental demand growth, it will be several more years before the market truly faces a major supply squeeze because NPI production expansions will free up a share of class 1 nickel that otherwise would have been used in stainless steel.

Additionally, near-term deficits can be filled by the over 300,000 tonnes of nickel that currently sits in London Metal Exchange and Shanghai Futures Exchange warehouses.

“We think there are sufficient stocks to cover the deficit through 2021. But after that, things get interesting,” Sharypin said.

After the global stocks are depleted, the market will require higher prices to stimulate production growth from new nickel sulfide or high pressure acid leaching (HPAL) projects, which are capable of producing class 1 nickel needed for battery applications.

Sharypin noted that it is uneconomical to process ferro-nickel or NPI into nickel sulfate that is required for battery manufacture. The EV-battery market needs tier class 1 material, sourced from mined nickel sulfide ores.

But only a handful of possible sulfide projects have been identified, and each of those would take six to seven years to bring to market, while HPAL projects are expensive to build and could lead to sulfuric acid bottleneck.

Sharypin, along with other panelists at the International Nickel Conference, suggested that current LME nickel prices of $15,000 per tonne are not enough to attract more investment in nickel mines and production. It will likely take at least 12 to 24 months of nickel prices at $18,000 per tonne to support class 1 capacity expansions.

The post INTL NICKEL CONF: Even with EV boom, nickel market supplied through 2021 – Nornickel appeared first on FastMarkets.

Categories: Metals Industry News

Shanghai-bonded copper stocks rise further; zinc inventories fall after arb window opens

Base Metals Market - Fri, 06/01/2018 - 10:52
Metal Bulletin’s assessed range for copper stocks in the Shanghai-bonded zone widened in late May, with the top end of the range now at its highest level since July 2017.
Categories: Metals Industry News

Copper concentrate TC/RCs continue uptrend on extended Sterlite fears

Base Metals Market - Fri, 06/01/2018 - 10:47
Copper concentrate treatment and refining charges (TC/RCs) rose again at the end of May after the Tamil Nadu government ordered a permanent shutdown of Sterlite Copper’s Tuticorin smelting and refining complex.
Categories: Metals Industry News

LIVE FUTURES REPORT 01/06: LME nickel hits 1-mth high; rest of complex consolidates

Base Metals News - Fri, 06/01/2018 - 10:40

Base metals on the London Metal Exchange were mostly lower during morning trading on Friday June 1, with sideways trading predominantly in effect across the complex.

Nickel prices on the London Metal Exchange climbed 3% during morning trading on Friday June 1, reaching levels not seen since the metal’s mid-April sanction-related spike. Meanwhile, sideways trading takes effect across the rest of the complex.

Despite performing well over the week, nickel’s three-month price is trading marginally lower during the morning session, but continues to outperform the rest of the complex, reaching a high of $15,690 per tonne – its highest since April 19 – and recording a weekly rise of more than 6%.

“Base metals prices are reacting fairly calmly to the escalation of the trade dispute [with the United States]. No doubt China’s official Purchasing Managers’ Index for industry is playing some part in this, as it climbed unexpectedly to an eight-month high of 51.9 in May, which signals continued expansion,” Commerzbank Research noted.

“Nickel above all is performing well, trading just under its mid-April three-year high. Falling LME stocks are driving up prices,” it added.

Nickel volumes traded on the exchange are currently leading the complex at 5,800 lots as of 10:50 am London time.

Copper’s three-month price continues to consolidate around $6,850 per tonne, trading in a narrow high-low range of $39 per tonne while its cash/three-month spread remains in a contango of $7.25 per tonne.

The red metal’s stagnancy comes amid wider trade tension concerns after US president Trump’s tariff impositions of 25% on steel and 10% on aluminium take effect from today, ending temporary exemptions for Canada, Mexico and the European Union.

Elsewhere, zinc’s three-month price edged below the $3,100 per tonne support level, dropping gains made earlier in the week that saw the metal climb to a weekly high of $3,164 per tonne.

Lead remains firmly above $2,400 per tonne as ongoing drawdowns in LME stock continue to prop prices after the metal surged 3.3% on May 21.

Tin prices are showing similar resilience, hovering close to the $20,600 per tonne region and gaining 3.7% on the week.

The metal’s cash/three-month spread has narrowed from a backwardation of $120b per tonne earlier this month, to its current reading of $30.63b per tonne.

Remaining predominantly static, aluminium’s three-month price continues to consolidate just below $2,300 per tonne, showing little reaction to the US’ decision to impose 10% tariffs on the light metal.

Base metals sluggish; copper, tin up 

  • The three-month copper price recently traded at $6,859 per tonne, recording an increase of $6. Copper stocks climbed a net 28,150 tonnes to 311,525 tonnes. Some 7,675 tonnes of material were freshly canceled across Asia and Europe.
  • The three-month aluminium price edged $10.50 lower to $2,281.50 per tonne. Stocks climbed 500 tonnes to 1,206,375 tonnes. Approximately 2,275 tonnes of material were freshly canceled in Port Klang and Busan, with 975 tonnes rewarranted in Gwangyang.
  • The three-month nickel price decreased $20 to $15,200 per tonne. Stocks fell 2,958 tonnes to 287,646 total tonnes. Some 816 tonnes of material was rewarranted in Kaohsiung, with 144 tonnes freshly canceled in Johor.
  • Zinc’s three-month price edged $14 lower to $3,086 per tonne. Stocks were down 100 tonnes to 245,650 tonnes with 550 tonnes freshly canceled in New Orleans.
  • The three-month price for lead recently traded at $2,443 per tonne, down $15. Lead stocks were down 75 tonnes to 133,475 tonnes.
  • Tin’s three-month price increased $15 to $20,615 per tonne. Stocks were down 5 tonnes to 2,420 tonnes.

Currency moves and data releases

  • The dollar index was up 0.15% at 94.05.
  • In other commodities, the Brent crude oil spot price was up 0.29% at $77.79 per barrel.
  • In US data on Thursday, personal income in the US increased $49.5 billion – or 0.3% – in April, in line with forecasts.
  • The economic agenda is fairly busy today with a host of manufacturing PMI data out across Japan, Europe and the US. Other US data of note includes average hourly earnings, non-farm employment change and the unemployment rate.

The post LIVE FUTURES REPORT 01/06: LME nickel hits 1-mth high; rest of complex consolidates appeared first on FastMarkets.

Categories: Metals Industry News

SHFE vs LME physical arbitrage 01/06: Copper, aluminium, zinc, nickel

Base Metals Market - Fri, 06/01/2018 - 09:35
Arbitrage for copper, aluminium, zinc and nickel imported into China on Friday June 1*
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METALS MORNING VIEW 01/06: Metals prices consolidating, waiting for direction from economic data

Base Metals Market - Fri, 06/01/2018 - 08:59
Japan’s manufacturing purchasing managers’ index (PMI) for May surprised to the upside at 52.8, having been expected to remain at April’s level of 52.5, while China’s Caixin PMI came in at 51.1, which was unchanged from April’s reading. Taking into account yesterday’s better-than-expected reading on China’s official PMI, economic data may be picking up again, which could bode well for the metals.
Categories: Metals Industry News

China’s Wuxi to use nickel briquette for physical delivery

Base Metals Market - Fri, 06/01/2018 - 08:48
The Wuxi Stainless Steel Exchange (Wuxi) in East China’s Jiangsu province has started a public consultation on adding nickel briquette for physical delivery, according to Wuxi’s latest notice released on May 31.
Categories: Metals Industry News

METALS MORNING VIEW 01/06: Metals prices consolidating, waiting for direction from economic data

Base Metals News - Fri, 06/01/2018 - 07:59

Japan’s manufacturing purchasing managers’ index (PMI) for May surprised to the upside at 52.8, having been expected to remain at April’s level of 52.5, while China’s Caixin PMI came in at 51.1, which was unchanged from April’s reading. Taking into account yesterday’s better-than-expected reading on China’s official PMI, economic data may be picking up again, which could bode well for the metals.

Three-month base metals prices on the London Metal Exchange were mixed on the morning of Friday June 01, with copper ($6,833 per tonne) and tin prices both up 0.1%, aluminium prices up 0.3%, while the rest were weaker: lead was down 0.4%, zinc down 0.2% and nickel down 0.1%.

Volume has been higher than average with 8,149 lots traded as at 07:20 am London time.

This follows mixed performance on Thursday that saw zinc prices close down by 1.4%, nickel prices rise by 1.5% and aluminium prices climb by 1.1%, while lead and tin prices closed up by 0.5% and 0.4%, respectively and copper prices closed off by 0.2%.

The precious metals this morning were little changed, with gold prices off 0.1% at $1,298.73 per oz, which followed a generally weaker performance on Thursday that saw gold prices close down 0.2%.

In China, base metals prices on the Shanghai Futures Exchange were diverging, with nickel prices up by 2% and lead prices down by 0.9%. Copper and aluminium prices are up by 0.3% and 0.2%, respectively, with copper at 51,360 yuan ($8,004) per tonne. Zinc and tin prices were down by 0.3% and 0.4%, respectively.

Spot copper prices in Changjiang were up by 0.3% at 51,200-51,320 yuan per tonne and the LME/Shanghai copper arbitrage ratio was unchanged at 7.50.

In other metals in China, iron ore prices were off by 0.3% at 460 yuan per tonne on the Dalian Commodity Exchange, while on the SHFE, steel rebar prices were up by 1.9%, while gold and silver prices were down by 0.1% and 0.2%, respectively. The fact that steel rebar and nickel prices are up around 2% seems odd given the United States has widened the number of countries that will be affected by steel import tariffs.

In wider markets, spot Brent crude oil prices were up by 0.1% at $77.64 per barrel this morning and the yield on US 10-year treasuries was firmer at 2.8819%, as was the German 10-year bund yield at 0.384%. With Italy now able to form a government, the potential crisis has been avoided, at least for now.

Equity markets in Asia were mainly weaker on Friday with the exception of the Kospi that was up by 0.66%: the Nikkei was down by 0.14%, the Hang Seng was unchanged, the CSI 300 fell by 0.86% and the ASX 200 was down 0.36%. This follows the weaker performance in western markets on Thursday, where in the US the Dow Jones closed down by 1.02% at 24,415.84, and in Europe where the Euro Stoxx 50 closed down by 1.0% at 3,406.65. The widening of US trade tariffs has undermined market confidence.

The dollar index was little changed at 94.07, this after retreating on Wednesday to 94.09 from Tuesday’s high of 95.03. With treasury yields rebounding, the dollar may well resume its rally.

The rebounds that started to be seen in the other major currencies in recent days have halted: euro (1.1689), sterling (1.3274), the Australian dollar (0.7552) and the yen (109.17).

The yuan (6.4113) is also consolidating, as are most of the emerging currencies we follow, although the rupiah and rupee are higher.

Today’s economic agenda is busy, with further PMI data scheduled to be released across Europe and the US. In addition, there is the US employment report and data on US construction ISM manufacturing prices and total vehicle sales.

In addition, the G7 meeting continues today.

Consolidation with a mild upward bias remains in force across most of the base metals. The exception is nickel where prices spiked higher in the early hours to $15,690 per tonne, but the higher prices have since attracted selling, although the market remains upbeat. We wait to see what European and US PMI data says about the global economy, any sign of a recovery could bode well for the metals.

Gold prices are consolidating around the $1,300 per oz level, prices did not react much to the potential Italian political problems, so they should not react too negatively now that an Italian government has been formed. Markets may, however, feel more corncerned about the potential of a US trade war and that could lead to more risk-off in broader markets that might spur a pick-up in safe-haven demand that could lift gold prices.

The post METALS MORNING VIEW 01/06: Metals prices consolidating, waiting for direction from economic data appeared first on FastMarkets.

Categories: Metals Industry News

EUROPEAN MORNING BRIEF 01/06: Nafta talks under threat after Trump imposes metal duties; global Mn ore output falls 2.8% in April, SiMn production down 8.1%

Base Metals Market - Fri, 06/01/2018 - 07:00
Good morning from Metal Bulletin’s offices in Asia as we bring you the latest news and pricing stories on Friday June 1.
Categories: Metals Industry News

LIVE FUTURES REPORT 01/06: SHFE base metal prices consolidate; nickel leads on the upside

Base Metals Market - Fri, 06/01/2018 - 06:55
Base metals prices, with the exception of zinc, on the Shanghai Futures Exchange were all up during Asian morning trading on Friday June 1.
Categories: Metals Industry News

Nafta talks under threat after Trump imposes metal duties

Base Metals Market - Fri, 06/01/2018 - 03:30
The prospects of a successful conclusion to the ongoing talks to renew the North American Free Trade Agreement (Nafta) have taken a heavy blow from US President Donald Trump’s decision on Thursday May 31 to impose duties on steel and aluminium products from Canada and Mexico at 25% and 10%, respectively.
Categories: Metals Industry News

LIVE FUTURES REPORT 31/05: LME base metals consolidate gains; nickel, zinc prices dip

Base Metals Market - Thu, 05/31/2018 - 18:24
Base metals on the London Metal Exchange closed mostly higher on Thursday May 31, ending the month broadly supported with most metals trading in positive territory.
Categories: Metals Industry News

European aluminium market not worried by imposition of US tariff

Base Metals Market - Thu, 05/31/2018 - 18:15
The implementation of the threatened US tariff on imports of European aluminium is unlikely to have any immediate effect on prices and premiums in Europe, market participants have said.
Categories: Metals Industry News

LIVE FUTURES REPORT 31/05: LME base metals consolidate gains; nickel, zinc prices dip

Base Metals News - Thu, 05/31/2018 - 17:24

Base metals on the London Metal Exchange closed mostly higher on Thursday May 31, ending the month broadly supported with most metals trading in positive territory.

Despite falling 0.3% during the afternoon, nickel’s three-month price continues to trade above $15,000 per tonne after breaking above the nearby resistance level at Wednesday’s close.

The metal’s consistent supply outflows are propping up prices, with upward moves further supported by the more enduring factors of strong stainless steel demand and electric vehicle developments.

Similarly recording a marginal dip, zinc’s three-month price fell 0.9% during the afternoon, but it remains supported at $3,100 per tonne.

Volumes traded on the exchange remain near the top of the complex at 14,350 lots.

“Even though the relief rebound is underway [after a May 4 low of $2,970 per tonne], supported by its improving technical indicators, the metal still has to face an uphill battle due to recent large inflows into LME New Orleans,” said Andy Farida, analyst at Metal Bulletin.

“In light of the recent stock inflow, we envisage LME zinc to consolidate lower from recent gains. We will let the selling run its course but remain a buy-the-dip strategy near key technical support levels,” he added.

Comparatively, lead’s three-month price continues to trade higher and remains well supported, reaching a high of $2,467 per tonne during the afternoon.

Elsewhere, copper’s three-month price rebounded to trade in the $6,800-$6,900 per tonne range after falling to a low of $6,727 per tonne on May 30.

On-warrant stocks for copper jumped 15.6% overnight, but prices have largely ignored volatile stock activity, with consistent drawdowns over the month having little effect.

Tin’s three-month price remains comfortable in the $20,600-per-tonne region, alternating either side of the support level throughout the day.

Resumed production on the supply front, particularly in Indonesia, has resulted in an increase in tin exports, while its three-month price has rebounded from a dip below $20,000 per tonne earlier in the week.

Climbing 0.9% during the kerb session, aluminium’s three-month price made a decent approach back toward $2,300 per tonne. But the metal’s ongoing volatility after sanction-related uncertainty has begun to settle.

Base metals stay strong; nickel, zinc edge lower

  • The three-month copper price closed at $6,852 per tonne, recording an increase of $13. Copper stocks climbed a net 28,150 tonnes to 311,525 tonnes. Some 775 tonnes of material were freshly canceled in Port Klang and Rotterdam.
  • The three-month aluminium price edged $22 higher to $2,292 per tonne. Stocks fell 4,425 tonnes to 1,205,875 tonnes. Approximately 2,450 tonnes of material were freshly canceled in Kaohsiung, Port Klang and Rotterdam.
  • The three-month nickel price fell $55 to $15,070 per tonne. Stocks fell 1,494 tonnes to 290,604 total tonnes. Some 2,928 tonnes of material were freshly canceled across multiple locations in Asia and Europe.
  • Zinc’s three-month price edged $30 lower to $3,100 per tonne. Stocks were up 16,775 tonnes to 228,975 tonnes after a delivery of 17,000 tonnes into New Orleans in the morning.
  • The three-month price for lead closed at $2,459 per tonne, up $24. Lead stocks were down 650 tonnes to 133,550 tonnes.
  • Tin’s three-month price increased $25 to $20,600 per tonne. Stocks were unchanged at 2,425 tonnes, with 40 tonnes of material canceled in Port Klang.


Currency moves and data releases

  • The dollar index was down 0.01% at 94.03.
  • In other commodities, the Brent crude oil spot price was down 0.09% at $77.77 per barrel.
  • In US data on Thursday, personal income in the US increased $49.5 billion – or 0.3% – in April, in line with forecasts.

The post LIVE FUTURES REPORT 31/05: LME base metals consolidate gains; nickel, zinc prices dip appeared first on FastMarkets.

Categories: Metals Industry News

LIVE FUTURES REPORT 31/05: Comex copper price ticks higher after yesterday’s dip

Base Metals Market - Thu, 05/31/2018 - 16:51
Comex copper prices inched up in the US morning on Thursday May 31, after falling to a three-week low on Wednesday.
Categories: Metals Industry News

Mexico takes 'reciprocal measures' against US over steel, aluminium tariffs

Base Metals Market - Thu, 05/31/2018 - 16:26
The Mexican government will take reciprocal measures against the United States, following the imposition of Section 232 duties on steel and aluminium imports from the country, the economy secretariat said on Thursday May 31.
Categories: Metals Industry News

Sterlite Copper shutdown boosts cif India cathode premiums, imports

Base Metals Market - Thu, 05/31/2018 - 14:30
The prolonged shutdown of Sterlite Copper’s Tuticorin smelting and refining complex has driven up premiums for copper cathodes in India and increased demand for duty-free Japanese cathodes.
Categories: Metals Industry News

Yuguang Gold & Lead’s primary copper smelter halted after pipe collapse

Base Metals Market - Thu, 05/31/2018 - 12:20
Operations at Yuguang Gold & Lead’s primary copper smelter in Henan province have been halted since the beginning of this week following a technical failure at its oxygen plant, a company source told Metal Bulletin.
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