You are here

Metals Industry News

Anglo American’s underlying earnings jump 45% y-o-y in 2017

Base Metals Market - Thu, 02/22/2018 - 08:40
Anglo American saw earnings of $8.8 billion in the financial year ended December 2017, it said in its preliminary results report on Thursday February 22.
Categories: Metals Industry News

EUROPEAN MORNING BRIEF 22/02: Glencore hits record profit in metals trading; US, European nickel premiums edge higher

Base Metals Market - Thu, 02/22/2018 - 07:31
Good morning from Metal Bulletin’s offices in Asia, bringing the latest news and pricing stories on Thursday February 22.
Categories: Metals Industry News

SHFE base metals prices down; China market back from holiday

Base Metals News - Thu, 02/22/2018 - 07:12

Base metals on the SHFE were all down on the Chinese market opening after the one-week holiday.

The most-traded April copper contract on the SHFE stood at 52,660 yuan ($8,300) per tonne as of 12.37pm Shanghai time, down by 130 yuan from the previous session’s close.

A similar plunge was also seen in the most-traded April aluminium contract on the SHFE, which stood at 14,095 yuan – down 10 yuan from the previous session’s close. About 106,234 lots of the contract have changed hands so far.

The strong performance of US dollar has weighed on the red metal in the first trading day after the week-long Chinese New Year holiday.

The US dollar index has maintained a sustained rally since February 16, and hit as high as 90.229 at 15.06pm Shanghai time.

“The US dollar found its feet overnight rallying relatively broadly after finally breaking its unusual, negative correlation with US yields.” ANZ Research said.

In addition, the rising stocks also kept the copper prices subdued.

Before the Chinese New Year holiday started on February 15, the SHFE copper inventory increased by 11,627 tonnes – or 6.2% – to 197,759 tonnes in only three days as of February 14.

“China copper stocks may increase after the Chinese New Year holiday, and consumption won’t improve until mid-March,” Citic Futures Research said.

Meanwhile, the most-traded May nickel contract plunged 540 yuan to 102,950 yuan per tonne amid consolidation, with around 171,930 lots traded so far.

Other metals lower

  • The SHFE March zinc contract price eased by 350 yuan to 26,300 yuan per tonne.
  • The SHFE May tin contract price dived 1,190 yuan to 147,690 yuan per tonne.
  • The SHFE March lead contract slipped 65 yuan to 19,255 yuan per tonne.

Currency moves and data releases

  • The dollar index was down by 0.03% to 90.09 as of 12.37pm Shanghai time.
  • In other commodities, the Brent crude oil spot price was down by 0.25% to $64.86 per barrel as of 12.37 pm Shanghai time.
  • In equities, the Shanghai Composite was down by 2.06% to 3,264.75 as of 12.37 pm Shanghai time.
  • In the UK today, the CBI retail sales report and Q4 GDP data will be announced.
  • The ECB will release of the Accounts of its Jan 24-25 meeting.
  • Initial jobless claims are out in the United States and Canada releases retail sales figures.

The post SHFE base metals prices down; China market back from holiday appeared first on FastMarkets.

Categories: Metals Industry News

LIVE FUTURES REPORT 22/02: SHFE base metals prices down; China market back from holiday

Base Metals Market - Thu, 02/22/2018 - 07:12
Base metals on the SHFE were all down on the Chinese market opening after the one-week holiday.
Categories: Metals Industry News

Glencore metals trading arm hits record profits in 2017 on volume growth

Base Metals Market - Wed, 02/21/2018 - 22:57
Glencore metal traders banked a record $2 billion in profits in 2017 - a year where traded volume of copper, zinc and ferro-alloys grew substantially.
Categories: Metals Industry News

GLOBAL NICKEL WRAP: US, European nickel premiums move higher

Base Metals Market - Wed, 02/21/2018 - 22:36
Nickel premiums rose slightly in the United States due to tight supply and steady demand, while premiums for 4x4 product increased in Europe and the market in China was closed for the Chinese New Year holiday celebrations.
Categories: Metals Industry News

M&A activity in lithium, cobalt, copper to pick up, EY report says

Base Metals Market - Wed, 02/21/2018 - 20:44
Merger and acquisition activity in lithium, copper and cobalt is expected to feature high on the agenda of management teams across the industry given the buzz around new world critical minerals, according to a report by consultancy group EY.
Categories: Metals Industry News

DRC mining code uncertainty puts industry in wait-and-see mode, says Glencore CEO

Base Metals Market - Wed, 02/21/2018 - 19:58
The international mining industry active in the Democratic Republic of Congo (DRC) is in wait-and-see mode after unifying to discuss mining code proposals with the country’s president, according to the chief executive officer of Glencore.
Categories: Metals Industry News

GLOBAL ZINC LEAD WRAP: European zinc premiums sink, backwardation hits stockholders; lead stable

Base Metals Market - Wed, 02/21/2018 - 18:01
European zinc premiums dropped into a wider range, which reflects a retreat by traders from physical positions, while Asian markets held steady in quiet Lunar New Year holiday trading.
Categories: Metals Industry News

LIVE FUTURES REPORT 21/02: LME nickel price stages turnaround to close 2% higher; zinc, lead still under pressure

Base Metals Market - Wed, 02/21/2018 - 17:40
Nickel was again the star performer on the London Metal Exchange at the 5pm close on Wednesday February 21, ending with gains of more than 2%.
Categories: Metals Industry News

GLOBAL TIN WRAP: Premiums stay high but rebound in Indonesian exports fuels cautious tone

Base Metals Market - Wed, 02/21/2018 - 17:28
Tin premiums paused at firm levels in Europe and the United States in the week to February 20, with the prospect of imminent shipments arriving from Indonesia fueling a more cautious tone.
Categories: Metals Industry News

Section 232, spread uncertainty cause European aluminium market to freeze

Base Metals Market - Wed, 02/21/2018 - 15:25
A lack of clarity about the outcome of the Section 232 investigation and how long the backwardation in London Metal Exchange forward spreads will persist have led to an impasse in the European aluminium market, with bulls less confident than they were despite still-elevated premiums.
Categories: Metals Industry News

LIVE FUTURES REPORT 21/02: Comex copper price downturn extends into third day

Base Metals Market - Wed, 02/21/2018 - 14:50
Comex copper prices were in negative territory on Wednesday February 21, with a stronger dollar and lack of market action weighing on base metals prices generally.
Categories: Metals Industry News

NORTH AMERICAN MORNING BRIEF 21/02: Glencore’s 2017 profit up four-fold; Copper premiums stable; Eramet’s record manganese ore output

Base Metals Market - Wed, 02/21/2018 - 13:05
The latest metal markets news and price moves to start the North American day on Wednesday February 21.
Categories: Metals Industry News

Global zinc deficit widened to 495,000 tonnes in 2017- ILZSG

Base Metals Market - Wed, 02/21/2018 - 12:46
The global zinc market was facing a 495,000-tonne deficit last year, mainly driven by growing consumption in countries including China and Japan, according to the International Zinc and Lead Study Group (IZLSG).
Categories: Metals Industry News

GLOBAL COPPER WRAP: New Year holidays keep Asian copper premiums flat in quiet trade; European premiums stable on cathode availability, spot activity picks up in US

Base Metals Market - Wed, 02/21/2018 - 11:45
Copper premiums in Asian markets were unchanged this week on quiet spot trade as key markets were closed for the Lunar New Year holidays. Meanwhile, limited spot buying interest was shown in Europe this week to keep premiums flat as market participants stayed relaxed on the ample availability of copper cathodes in the area, whereas signs of pick-up are seen in the US’s spot copper market on growing housing demand.
Categories: Metals Industry News

LIVE FUTURES REPORT 21/02: LME base metals fall on lack of direction; market awaiting China’s return

Base Metals Market - Wed, 02/21/2018 - 10:50
Base metals prices on the London Metal Exchange were mostly lower during morning trading on Wednesday February 21, with only tin in positive territory.
Categories: Metals Industry News

Eramet’s nickel production rises 7% in 2017

Base Metals Market - Wed, 02/21/2018 - 10:18
Nickel production at Eramet increased by 7% year-on-year to 59,183 tonnes in 2017, the nickel and manganese producer said in its annual report on February 20.
Categories: Metals Industry News

Glencore positive on copper, zinc, nickel amid EV optimism; 2017 net income jumps four-fold

Base Metals News - Wed, 02/21/2018 - 10:00

Glencore is positive on the outlook for copper, zinc, nickel and cobalt amid optimism over growth in the electric vehicle (EV) market, while its net income jumped more than four-fold to $5.78 billion in 2017 on higher commodity prices.

Cobalt Low Grade MB free market $ per lb in warehouse Cobalt High Grade MB free market $ per lb in warehouse

“The electric vehicle upheaval continues to unfold, with the scale of market penetration and investment by battery and automotive manufacturers and infrastructure players, adjusting progressively upwards. This provides an additional dimension of future demand growth for a number of our key commodities,” Glencore said in its financial report released on Wednesday February 21.

Accelerating EV adoption requires an energy and mobility transformation that is forecast to unlock new sources of demand for commodities including copper, nickel and cobalt, it said.

An independent study, recently commissioned by Glencore, to gauge the potential demand for these commodities under the Electric Vehicles Initiative suggested an additional 4.1 million tonnes of copper, 1.1 million tonnes of nickel and 314,000 tonnes of cobalt supply will be required by 2030.

“These potentially significant new demand sources offer compelling fundamentals, particularly when coupled with persistent supply challenges,” Glencore said, while adding that its commodity mix is becoming less dependent on demand generated by infrastructure-related investment in developing markets.

Copper and cobalt 

Global copper supply is expected to be affected by ageing assets, limited sector reinvestment, a diminished project pipeline and an elevated risk of mine disruptions, Glencore said.

“With global economic growth pointing to healthy demand, the copper market is likely to remain in substantial supply deficit, which, if it occurs, will in turn result in further inventory drawdowns,” it said.

The emerging battery and EV trend adds further uplift to the demand outlook and attractive fundamentals. With copper and cobalt expected to play important roles across the value chain of the energy and mobility evolution, from power generation and distribution, to energy storage and vehicles, it added.

The company produced 1.31 million tonnes of copper in 2017 in total, down 8% or 116,100 tonnes from a year ago. Glencore expects a production volume between 1.435-1.495 million tonnes of copper for 2018, up 9.54-14.12% from 2017.

The London Metal Exchange three-month copper price has mostly held above $7,000 per tonne since late last year amid labor concerns in South America and a positive macroeconomic outlook. The contract closed at $7,090 per tonne on February 21.

Glencore is targeting a 42% increase in cobalt production this year, despite the fact that full-year production for 2017 was down 3% to 27,400 tonnes.

Cobalt prices have surged rapidly over the past year amid mounting anticipation and excitement over the prospects for its use in the production of EV batteries.

Metal Bulletin’s low-grade cobalt, in-warehouse price was assessed at $38-39.30 per lb on February 16, up around 70% from one year ago, while the high-grade cobalt, in-warehouse price was assessed at $38.20-39.40 per lb on the same day, also up close to 70% on an annual basis.

Zinc and nickel 

Higher zinc prices will incentivize higher concentrate production, easing treatment charges in the mid-term and eventually resulting in higher metal production. Yet, the environmental constraints in China and the slower-than-anticipated pace of mine restarts or new mine start-ups means that the current zinc tightness may remain for some time, Glencore said.

“As there is also a time lag before concentrates units convert into metal units, we expect the current strong pricing environment to be supported in the near to mid-term,” it said.

Glencore has kept its zinc production guidance unchanged for the 2018 financial year at around 1.09 million tonnes, matching actual production in 2017, despite the scheduled restart of its 100,000 tonnes per year Lady Loretta mine in the first half of this year.

The LME three-month zinc price had hit as high as $3,595.50 per tonne on February 15, the highest since July 2007.

On nickel, the market has remained in material supply deficit for a second year running, enabling global stocks to draw down quickly despite headline LME inventory suggesting otherwise, Glencore said.

Even with a conservative forecast for 2018 demand, the outlook is for continued sizeable deficits and further decreases in primary nickel stocks. Forecasted supply increases have been based on Indonesia exporting more nickel units in ore or nickel pig iron (NPI), with production elsewhere expected to be flat or fall, it added.

The LME three-month nickel price reached as high as $14,420 per tonne on February 15, the highest since May 2015, amid optimism over EV demand growth.

“Going forward, those commodities where primary market balances are in deficit or trending towards deficit, such as zinc, copper, nickel and thermal coal should see positive price divergence versus potentially oversupplied markets,” the company said.

Glencore’s net income attributable to equity holders jumped 319% to $5.78 billion, while its adjusted earnings before interest tax depreciation and amortization (Ebitda) grew 44% to $14.76 billion in 2017.

“After an encouraging end to 2016, which saw commodities recover from cycle lows, positive momentum continued through 2017, resulting in prolonged outperformance of Glencore’s key commodities versus the broader markets,” the company said.

Concerns of tightening financial conditions in China during the second quarter proved to be short-lived, with commodities rallying once again through the second half of the year, it noted.

A strong economic performance in both major developing and developed markets has underpinned supportive commodity demand conditions, while early signals of inflation and higher interest rates also bode well for commodities as an asset class, Glencore added.

The post Glencore positive on copper, zinc, nickel amid EV optimism; 2017 net income jumps four-fold appeared first on FastMarkets.

Categories: Metals Industry News

Glencore positive on copper, zinc, nickel amid EV optimism; 2017 net income jumps four-fold

Base Metals Market - Wed, 02/21/2018 - 10:00
Glencore is positive on the outlook for copper, zinc, nickel and cobalt amid optimism over growth in the electric vehicle (EV) market, while its net income jumped more than four-fold to $5.78 billion in 2017 on higher commodity prices.
Categories: Metals Industry News

Pages

Subscribe to Allied Metal Group aggregator - Metals Industry News
Site content copyright © The Allied Metal Group, Inc.