Metals Industry News

Aluminium billet premiums fell across Europe, the United States and Brazil on Friday May 10 due to continued poor demand for billet, forcing market participants to sell material at aggressively low levels.

Primary aluminium foundry alloy premiums in Europe were steady on Friday May 10 in a quiet market, while bearish sentiment from the automobile industry continued to cap premiums.

The benchmark secondary aluminium alloy A380.1 price in the United States declined further on Thursday May 9, with alloy producers struggling to sell metal to disinterested die-casters, sparking steep discounts in the spot market.

Spot demand for aluminium billet in the United States has remained low, forcing producers to offer discounts in order to move material and pushing the 6063 extrusion billet upcharge to its lowest since late November 2017.

Base metals prices on the London Metal Exchange were mostly higher at the close of trading on Friday May 10, with nickel futures climbing 1.6% while the three-month lead price failed to recover from a three-year low.

The United States government has increased its existing 10% additional duties on imports of base metals, ferrous metals and associated products from China to 25% from Friday May 10, citing a lack of progress on ongoing trade talks.

An overview of the battery raw materials markets and their price moves.

The Comex copper price was dragged lower in US morning trading on Friday May 10 by an escalation in the US-China trade war, which market participants had previously expected to be nearing a peaceful conclusion.

Tin stocks held in Shanghai Futures Exchange-approved warehouses jumped up by over 16% as of Friday May 10 due to weak demand, while lead stocks also rose by about 10% but inventories for other base metals fell.

Base metals prices on the London Metal Exchange were mostly higher during morning trading on Friday May 10, with price action largely unaffected by the United States’ decision to increase tariffs on $200 billion worth of Chinese goods from 10% to 25%.

While US-China trade talks continue, the market seems to be clinging on for an eleventh-hour deal this morning, Friday May 10, because key markets are holding up surprisingly well. But, if a deal does not miraculously emerge soon then further disappointment is likely to set in.

With the exception of tin, base metals prices on the Shanghai Futures Exchange were up during morning trading on Friday May 10, with comments by US President Donald Trump insisting a trade deal between China and the United States was still possible providing much needed relief to the market.

Here are five Fastmarkets MB stories you might have missed on Thursday May 9 that are worth another look.

Brazilian copper products manufacturer Termomecanica has decided to invest most of its budget for 2019-21 in the expansion of its aluminium division, after an increase in sales of the newly processed metal, according to a press statement on Friday May 3.

Lead’s three-month price on the London Metal Exchange had tumbled by 2.5% by the close of trading on Thursday May 9, reaching its lowest level since August 2016 at an intraday low of $1,830.50 per tonne.

Comex copper prices failed to recover on Thursday May 9 morning in the United States amid persistent worries over the Sino-US trade talks.

The Chinese spot alumina price could rise over the course of 2019 despite new capacity planned this year due to new downstream aluminium projects which outpace the raw material’s capacity expansion, Fastmarkets learned during LME Asia Week in Hong Kong this week.

Aluminium traders in Europe have been switching business to the Italian port of Trieste in the past month, due to high stock levels leading to opportunistic trading.

Aluminium’s three-month price on the London Metal Exchange continued its downtrend during morning trading on Thursday May 9, drifting further away from its nearby $1,800-per-tonne support level amid a fresh cancelation of 23,000 tonnes.

Guangxi Nanguo Copper’s cathode output is unlikely to be affected by a halt of its copper anode operation line in late April, market sources told Fastmarkets MB on the sidelines of LME Asia Week in Hong Kong this week.