You are here

Metals Industry News

METALS MORNING VIEW 15/02: Metals prices add to this week's rebound gains

Base Metals Market - Thu, 02/15/2018 - 08:15
Metals prices on the London Metal Exchange are generally firmer this morning, Thursday February 15, with the complex up by an average of 0.5%.
Categories: Metals Industry News

EUROPEAN MORNING BRIEF 15/02: Zinc price forecast; possible trade remedies from Section 232; US lead scrap prices

Base Metals Market - Thu, 02/15/2018 - 04:55
Good morning from Metal Bulletin’s office in Singapore as we bring you the latest news and pricing stories on Thursday February 15.
Categories: Metals Industry News

LIVE FUTURES REPORT 15/02: LME base metals prices broadly up on weaker dollar; China market closed

Base Metals Market - Thu, 02/15/2018 - 04:50
Base metals traded on the London Metal Exchange were broadly higher during Asian morning trading on Thursday February 15, though trading remained subdued with Chinese participants out for the week-long Lunar New Year break.
Categories: Metals Industry News

CME Group busheling contract gains seen as encouraging

Base Metals News - Wed, 02/14/2018 - 22:01

Growing liquidity in the CME Group’s No. 1 busheling ferrous scrap futures contract is encouraging, and indicates some maturity in metals risk management, a CME executive said in an interview.

Both January and February data show increasing uptake of the contract, which is settled against American Metal Market’s Midwest index for No.1 busheling. January alone was a record month for monthly volume on the busheling futures contract, with 1,467 lots – or 29,340 gross tons – traded, Young-Jin Chang, CME Group’s global head of metals products, told American Metal market in a telephone interview on Friday February 9.

Prior records for busheling were set in May 2013, when trading volumes hit 665 lots.

“You’re seeing increasing interest in terms of the desire to manage risk” from ferrous market participants, including those with well-established interest in older hot-rolled coil (HRC) and iron ore markets, Chang said.

This busheling contract has been in place since 2013, or around five years, but it requires “a lot of education” in the marketplace to get things moving, according to Chang, who spent almost five years at David J. Joseph as a global physical trader before joining CME Group.

Certain “early adopters” of other ferrous contracts now want to see this busheling contract succeed, spurring strong interest, she said.

“So we’re seeing some more sophisticated or ‘early adopter’ types also looking at the busheling scrap contract and ways to utilize that contract,” Chang told American Metal Market.

And consequently, as liquidity improves more scrap market participants in the United States have looked to manage risk with the contract, or help fix their costs or fix busheling prices in future months, she added.

February has been another stellar month for the contract, with some 1,425 lots – or 28,500 tons – traded on February 7 alone. Open interest stood at 4,241 lots as February 12, including 1,514 lots of open interest for the March 2018 contract, according to CME Group data. March 2018 is now quoted at $380 per ton.

Nasdaq Futures Inc. and World Steel Exchange Marketing also recently launched a second ferrous scrap contract that is based on American Metal Market’s Midwest shredded scrap index. But Chang declined to comment directly on whether that launch triggered broader market interest in scrap futures.

“It’s one thing to launch a contract but it takes a lot of time to educate, build the liquidity and get market participants on board,” she said, adding that true success comes when one has “actual commercial participation” on the contract, as the CME Group has had with iron ore, HRC and now busheling.

Still, “I think there is more interest coming on board from the marketplace” broadly on ferrous futures, according to Chang, who oversees CME Group’s full suite of metals, including precious and industrial metals. She has worked within that niche since 2011.

“There’s an incredible amount of education that needs to go into ferrous [products], only because these type of tools are relatively new to the market participants,” she noted.

HRC volumes bounce higher
CME Group’s HRC contract also performed well in January, according to CME statistics sent to American Metal Market.

HRC trading volumes hit 10,435 lots last month, almost double the 2017 monthly average of 5,269 lots traded. Full-year 2017 volumes were 63,229 lots, up 17.3% from 53,884 lots the previous year.

The full-year 2017 total represents 1.26 million short tons of material, with one lot sized at 20 tons. The prior trading record for monthly HRC volumes was set in April 2016, at 8,567 lots.

In terms of options, 1,530 lots of HRC options – representing some 30,600 tons of material – were traded in 2017, Chang noted.

“Market participants are becoming more sophisticated,” she said of the progress in options use. “They see the value of risk management tools, and more adaptation is occurring.”

CME Group’s emphasis with ferrous products has always been to offer tools for commercial market participants, with investor interest and liquidity in the ferrous arena still a far cry from developed markets such as copper or gold, Chang said, noting for example that gold can trade at 450,000 lots per day for CME Group’s contract.

Still, a “little bit” of investor interest has been seen in HRC recently, with some volume contracted on screen, she said. In the past, trades were all brokerage based. That type of progress could be a “nice next step” for the busheling contract, but only once there’s a good amount of commercial participation.

Liquidity is further boosted once financial participants enter the market, which in turn is a benefit for commercial participants since they have more liquidity and tonnage to exploit – and more means for risk mitigation, Chang said.

“On ferrous specifically, our focus is very much on making sure commercial participants are getting what they need and on the continued educational process,” she said, adding that within CME Group’s busheling and HRC contracts a “vast majority” of the participation is “actual commercial hedging volume.”

That contrasts with CME Group’s copper, gold, silver, platinum and palladium contracts, where there is a “good chunk” of investor participation – even with metals that have an industrial component, such as the latter two, Chang noted.

The post CME Group busheling contract gains seen as encouraging appeared first on FastMarkets.

Categories: Metals Industry News

LIVE FUTURES REPORT 14/02: LME nickel sets fresh 2018-high; another day of strong rallies for base metals

Base Metals Market - Wed, 02/14/2018 - 17:40
Base metals prices on the London Metal Exchange took advantage of the weakening dollar to close higher across the board on Wednesday February 14, with nickel leading the charge.
Categories: Metals Industry News

Boliden to invest $308mln on copper-nickel expansions [UPDATED]

Base Metals Market - Wed, 02/14/2018 - 15:40
Swedish metal producer Boliden will invest $308 million over the next two years to expand its copper-nickel production sites in Finland.
Categories: Metals Industry News

NORTH AMERICAN MORNING BRIEF 14/02: Jinchuan halts 200kt of copper refining output; EU, US zinc premiums tick up; tin premiums firm

Base Metals Market - Wed, 02/14/2018 - 12:25
The latest metal markets news and price moves to start the North American day on Wednesday February 14.
Categories: Metals Industry News

GLOBAL TIN WRAP: Premiums hit year-high in Europe on Indonesian export troubles, freight lags

Base Metals Market - Wed, 02/14/2018 - 12:04
Tin premiums firmed in Europe and the United States on Tuesday February 13, after higher logistical costs and shipment delays squeezed regions with thin residual supply.
Categories: Metals Industry News

Hanrui Cobalt benefits from higher cobalt prices in 2017; strong Q1 performance expected

Base Metals Market - Wed, 02/14/2018 - 10:32
Chinese cobalt powder producer Hanrui Cobalt recorded a surge in net profit in 2017, with the company benefitting from the higher prices for cobalt witnessed during the year.
Categories: Metals Industry News

LIVE FUTURES REPORT 14/02: LME base metals consolidate after two-day rebound; nickel prices edge higher on strong demand

Base Metals Market - Wed, 02/14/2018 - 10:30
Base metals prices on the London Metal Exchange were mostly consolidating during morning trading on Wednesday February 14, with the complex trying to stabilize after two days of rebounds.
Categories: Metals Industry News

SHFE STOCKS REPORT 14/02: All base metal stocks rise, bar nickel

Base Metals Market - Wed, 02/14/2018 - 10:13
Deliverable base metal stocks at Shanghai Futures Exchange-approved warehouses all rose in the short trading week to Wednesday February 14, except for nickel which saw a very slight decline.
Categories: Metals Industry News

GLOBAL NICKEL WRAP: Chinese, European premiums unchanged ahead of CNY; US premiums stable on limited spot supply

Base Metals Market - Wed, 02/14/2018 - 09:54
Nickel premiums in the United States were unchanged on Tuesday February 13 due to limited spot cargoes supply, while flat premiums in China and Europe were attributed to quiet demand in the run-up to Chinese New Year.
Categories: Metals Industry News

Jinchuan halts 200kt of copper refining output in China’s Gansu province

Base Metals Market - Wed, 02/14/2018 - 09:10
Jinchuan Group has halted half of the copper refining output at its plant in the Chinese province of Gansu following a power transformer failure at the facility, market participants told Metal Bulletin.
Categories: Metals Industry News

Jinchuan halts 200kt tpy of copper refining output in China’s Gansu province

Base Metals Market - Wed, 02/14/2018 - 09:10
Jinchuan Group has halted half of the copper refining output at its plant in the Chinese province of Gansu following a power transformer failure at the facility, market participants told Metal Bulletin.
Categories: Metals Industry News

Metals morning view: Metals consolidate ahead of Lunar New Year holiday

Base Metals News - Wed, 02/14/2018 - 08:45

Base metals on the London Metal Exchange are for the most part consolidating this morning, Wednesday February 14. Nickel prices are the most energetic with a 0.7% gain to $13,520 per tonne, the others are ranged between down 0.2% and up 0.3%, with copper prices unchanged at $7,017 per tonne.

Volume has been below average, with 7,611 lots traded as of 07.19 am London time.

This follows a second day of strength, with prices closing up by an average of 1.8% on Tuesday.

The precious metals are also firmer this morning with gains averaging 0.3%. Spot gold prices are up by 0.2% at $1,333.95 per oz. This follows gains of 0.7% yesterday.

On the Shanghai Futures Exchange, the base metals are up by an average of 2%, with aluminium prices bucking the trend with a 1.8% fall. LME aluminium prices managed to shake off the 166,225 tonnes of stock inflow yesterday, but it appears to have weighed on aluminium sentiment in China. Copper prices are up 1.6% at 52,710 yuan ($8,313) per tonne, while spot copper prices in Changjiang are up by 1.0% at 51,990-52,150 yuan per tonne and the LME/Shanghai copper arbitrage ratio has eased to 7.51, down from 7.54 on Tuesday.

In other metals in China, iron ore prices are up by 2.6% at 539.50 yuan per tonne on the Dalian Commodity Exchange. On the SHFE, steel rebar prices are up by 0.3%, gold prices are up by 0.9% and silver prices are up by 0.4%.

In wider markets, spot Brent crude oil prices are rebounding, up by 0.13% at $62.63 per barrel, while the yield on US 10-year treasuries is easier at 2.83%, as is the German 10-year bund yield at 0.73%.

Equities in Asia are mixed today: the Kospi is up 1.11%, the CSI 300 is up 0.80%, and the Hang Seng is up 1.71%, while the ASX 200 is down 0.25% and the Nikkei is down 0.43%. The latter is under pressure as the yen surges. This follows a mixed performance in western markets on Tuesday, where in the United States the Dow Jones closed up by 0.16% at 24,640.45, and in Europe where the Euro Stoxx 50 closed down by 0.81% at 3,340.93.

The dollar index is edging lower again, it was recently quoted at 89.59, the low being 88.43 on January 25 and the recent high being 90.57 on February 9. The euro (1.2365) is working higher, as are sterling (1.3895) and the Australian dollar (0.7872), while the yen (107.44) reached 106.84 earlier today, which was the highest since November 14. The yuan at 6.3420 is slightly weaker, while most of the other emerging currencies we follow are mixed.

The economic calendar shows China’s foreign direct investment only grew 0.3%, but this follows two months of extra strong gains of 7.9% and 9.8%, which were well above average for 2017. German fourth quarter GDP was up 0.6%, weaker than the 0.8% seen in the third quarter, and CPI dropped 0.7%, but it has a history of being negative in January. Later there is data out on Italian and EU GDP, EU industrial production with US data including CPI, retail sales, business inventories and crude oil inventories. In addition, Germany’s Bundesbank president Jens Weidmann is speaking.

After two days of rebounds LME prices are consolidating. While it does look as though the shake-out from last week may have run its course driven by dip buying, the strength of the yen suggests a pick-up in haven buying so there may still be further bouts of weakness in the broader markets that could weigh on sentiment in the metals. In addition, traders may be nervous about thinner market volumes during China’s Lunar New Year holiday that starts on Thursday and runs until February 21. We still think underlying sentiment is bullish – we should get an update on how bullish it is by seeing how much follow-through buying there is. But, it may take until after the Lunar New Year holidays before bullishness returns.

Precious metals are mapping out a similar path to the base metals i.e. they have rebounded off last week’s lows but are now consolidating. Given the yen is seeing some safe-haven demand may well help underpin/drive gold prices too.

 

Overnight Performance GMT 07:19 +/- +/- % Lots Cu 7,017 0.0 0.0% 2,531 Al 2,135 -5.0 -0.2% 1,847 Ni 13,520 95.0 0.7% 1,486 Zn 3,465 -4.0 -0.1% 1,258 Pb 2,559 8.0 0.3% 475 Sn 21,585 10.0 0.0% 14 Average BM   0.1%        7,611 Gold  1,333.95 2.25 0.2%   Silver        16.62 0.01 0.1% Platinum      977.90 4.90 0.5% Palladium      989.00 3.00 0.3% Average PM   0.3%

 

SHFE Prices 07:19 GMT RMB Change % Change Cu      52,710           830 1.6% AL      14,130 –         255 -1.8% Zn      26,640           605 2.3% Pb      19,330           355 1.9% Ni   103,000        2,680 2.7% Sn   148,770        1,920 1.3% Average change (base metals) 1.3% Rebar  3,929.00        11.00 0.3% Au      276.05          2.55 0.9% Ag  3,716.00        13.00 0.4% Iron Ore (DCE) May’18 539.5 13.5 2.6%

 

Economic calendar GMT Country Data Actual Expected Previous 3:28am China Foreign Direct Investment ytd/y 0.3% 7.9% 7:00am Germany German Prelim GDP q/q 0.6% 0.6% 0.8% 7:00am Germany German Final CPI m/m -0.7% -0.7% -0.7%  8:00am Germany German Buba President Weidmann Speaks 9:00am Italian Italian Prelim GDP q/q 0.4% 0.4% 10:00am EU Flash GDP q/q 0.6% 0.6% 10:00am EU Industrial Production m/m 0.1% 1.0% 1:30pm US CPI m/m 0.3% 0.1% 1:30pm US Core CPI m/m 0.2% 0.3% 1:30pm US Core Retail Sales m/m 0.5% 0.4% 1:30pm US Retail Sales m/m 0.2% 0.4% 2:30pm UK CB Leading Index m/m -0.2% 3:00pm US Business Inventories m/m 0.3% 0.4% 3:30pm US Crude Oil Inventories 2.8M 1.9M

 

The post Metals morning view: Metals consolidate ahead of Lunar New Year holiday appeared first on FastMarkets.

Categories: Metals Industry News

METALS MORNING VIEW 14/02: Metals consolidate ahead of Lunar New Year holiday

Base Metals Market - Wed, 02/14/2018 - 08:45
Base metals on the London Metal Exchange are for the most part consolidating this morning, Wednesday February 14. Nickel prices are the most energetic with a 0.7% gain to $13,520 per tonne, the others are ranged between down 0.2% and up 0.3%, with copper prices unchanged at $7,017 per tonne.
Categories: Metals Industry News

GLOBAL ZINC & LEAD WRAP: EU, US zinc premiums edge higher; global lead premiums stable

Base Metals Market - Wed, 02/14/2018 - 08:30
Zinc premiums in Europe and the United States increased over the past week, while trading in Asia slowed ahead of the Lunar New Year break, leaving premiums there broadly unchanged. Meanwhile, lead premiums were stable across the globe.
Categories: Metals Industry News

SHFE vs LME physical arbitrage 14/02: Copper, aluminium, zinc, nickel

Base Metals Market - Wed, 02/14/2018 - 08:15
The arbitrage for copper, aluminium, zinc and nickel imported into China on Wednesday February 14*
Categories: Metals Industry News

South Korea’s PPS to buy 1,500t of copper cathodes

Base Metals Market - Wed, 02/14/2018 - 07:05
South Korea’s Public Procurement Service (PPS) has floated a tender to procure 1,500 tonnes of Grade A copper cathodes minimum 99.99% of London Metal Exchange-registered brands.
Categories: Metals Industry News

Pages

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