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Metals Industry News

Alcoa, Rio Tinto in Apple-backed JV for carbon-free aluminium technology

Base Metals News - Thu, 05/10/2018 - 18:42

Alcoa and Rio Tinto have set up a joint-venture firm with investment from the governments of Canada and the Canadian province of Quebec as well as technology firm Apple to license and sell technology creating carbon-free aluminium.

The new company, Elysis, will receive funding totaling Canadian $188 million ($146 million) and will be headquartered in Montreal with a research facility in Quebec’s Saguenay—Lac-Saint-Jean region. Its chief executive officer will be Vincent Christ, who has more than 30 years of experience in Rio Tinto’s aluminium division.

When fully developed and implemented, the technology will be used for retrofits of existing smelting facilities or construction of new plants that will produce oxygen and eliminate greenhouse gas emissions from the traditional smelting process.

Canada and Quebec are each investing C$60 million ($46 million), while Apple is investing C$13 million ($10 million) as part of its commitment to making its products using only recycled materials. The provincial government of Quebec will have a 3.5% equity stake in the joint venture, with the remainder split equally between Alcoa and Rio Tinto.

Apple helped to facilitate the collaboration between the aluminium producers and has agreed to provide the joint venture with technical support in the next phase, with the goal of one day using the carbon-free metal in its products.

“Apple is committed to advancing technologies that are good for the planet and help protect it for generations to come,” CEO Tim Cook said. “We are proud to be part of this ambitious new project and look forward to one day being able to use aluminium produced without direct greenhouse gas emissions in the manufacturing of our products.”

In addition to the intellectual property and patents, Alcoa and Rio Tinto will also invest C$55 million ($42.50 million) in cash during the next three years.

Executives of Alcoa, Rio Tinto and Apple were joined by Canadian Prime Minister Justin Trudeau and Quebec Premier Philippe Couillard for the announcement, which signals the most significant innovation in the aluminium industry in more than a century.

Alcoa has developed the technology, which is protected by 40 patent families and is ready for scale-up. CEO Roy Harvey said the technology took aluminium’s sustainable advantage to a new level.

Rio Tinto, meanwhile, is the world’s leading smelting technology development organization, with its AP technology a world leader. CEO JS Jacques said the new technology could transform the industry as well as customer supply chains.

Alcoa is producing metal at the Alcoa Technical Center near Pittsburgh in the US state of Pennsylvania, where the process has been operating since 2009. It eliminates direct greenhouse gases, extends the anode life by around 30 times, cuts operating costs by 15% and increases productivity by the same amount, the companies said.

If implemented at Canada’s existing aluminium smelters, the technology has the potential to reduce annual greenhouse gas emissions by about 6.5 million tonnes in the country – the equivalent of taking 1.8 million light-duty vehicles off the road.

Elysis will also sell proprietary anode and cathode materials; a portion of its committed C$40 million ($31 million) investment in the United States will be used for this supply chain.

The post Alcoa, Rio Tinto in Apple-backed JV for carbon-free aluminium technology appeared first on FastMarkets.

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LIVE FUTURES REPORT 10/05: LME copper climbs 1.5%; nickel, tin prices dip

Base Metals Market - Thu, 05/10/2018 - 18:10
Base metals on the London Metal Exchange were mixed at the close of trading on Thursday May 10, with copper climbing 1.5% while tin’s three-month price dipped 1.3%.
Categories: Metals Industry News

Chile's copper mine output rises in March vs last year on Escondida volumes recovery

Base Metals Market - Thu, 05/10/2018 - 17:22
Chilean copper mine production rose 30.8% in March from a year ago, a recovery from when the country’s output was severely affected by the 44-day strike at the Escondida mine.
Categories: Metals Industry News

Gecamines' legal proceedings to dissolve Katanga's KCC delayed

Base Metals Market - Thu, 05/10/2018 - 15:53
Democratic Republic of the Congo (DRC) miner Gecamines’ push to dissolve Katanga Mining Ltd subsidiary Kamoto Copper Company (KCC) has been delayed according to a release from Katanga on Tuesday May 8.
Categories: Metals Industry News

LME keeps status quo on Iralco brand after US reintroduces sanctions on Iran

Base Metals Market - Thu, 05/10/2018 - 14:42
The London Metal Exchange is maintaining the status quo on its treatment of Iranian aluminium brand Iralco after the United States said this week that it will reintroduce nuclear-related sanctions on Iran, the bourse said in a notice to members on Thursday May 10.
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NORTH AMERICAN MORNING BRIEF 10/05: Falling LME stocks boost copper price; LME warehouses in China remain "top priority"

Base Metals Market - Thu, 05/10/2018 - 13:20
The latest metal markets news and price moves to start the North American day on Thursday May 10.
Categories: Metals Industry News

Longer outage for Sterlite Copper’s Tuticorin smelter as court defers decision again

Base Metals Market - Thu, 05/10/2018 - 13:15
Sterlite Copper’s Tuticorin copper smelter in India is likely to remain closed under an enforced shutdown for at least a week longer after a court in the country set Friday May 17 as the day when opening arguments will be presented in its case to gain permission to restart operations.
Categories: Metals Industry News

LME warehouse queues return with over 100-day wait for aluminium in Port Klang

Base Metals Market - Thu, 05/10/2018 - 13:04
A 109-day queue for aluminium out of the ISTIM warehouse in Port Klang developed last month following a series of large cancelations on the London Metal Exchange, according to LME data released on Thursday May 10.
Categories: Metals Industry News

LME warehouse queues return with over 100-day wait for aluminium in Port Klang

Base Metals News - Thu, 05/10/2018 - 12:04

A 109-day queue for aluminium out of the ISTIM warehouse in Port Klang developed last month following a series of large cancelations on the London Metal Exchange, according to LME data released on Thursday May 10.

On-warrant aluminium stocks in Port Klang fell 66% during April leaving just 110,496 of available stock at the ISTIM warehouse.

The cancelations followed the announcement of US sanctions against Rusal, leading to traders trying to get hold of non-Russian metal which was held in Asian warehouses.

Some 108,000 tonnes of material were freshly canceled in Port Klang in one day on Friday April 13, with the metal presumed to be Indian material, which is in high demand.

“With the large cancelations, it is not surprising the queue has formed – but over a 100 days is very significant and if it sustains for a long period of time we could see issues arise again,” a trader said.

This is the longest queue for aluminium since early 2017 when the wait for metal out of the Access World warehouse in Vlissingen was still over 100 days.

The Access World Vlissingen queues lasted six years and at its peak in June 2014, aluminium buyers had to wait 774 days to take delivery of the metal at this warehouse.

But at the end of 2017, there were no queues at any LME-approved warehouse for any metal.

At the ISTIM warehouse in Port Klang, there is a 22-day wait for copper, lead and zinc. While at Henry Bath in Port Klang there is a three-day wait for copper, lead, aluminium and zinc.

At H&M Metal Warehousing in Taiwan there is a 10-day queue for copper, lead, aluminium and zinc delivery. There is also a 10-day queue for the same metals at H&M in Busan.

The LME queue data reflects the waiting time as of the last business day of April.

The post LME warehouse queues return with over 100-day wait for aluminium in Port Klang appeared first on FastMarkets.

Categories: Metals Industry News

LME ASIA WEEK 2018: Warehouses in China a priority but no aggressive push, says Charles Li

Base Metals Market - Thu, 05/10/2018 - 11:20
London Metal Exchange warehouses in China remain a “top priority” but Hong Kong Exchanges & Clearing’s (HKEX) is not “aggressively pushing for it,” HKEX chief executive officer, Charles Li, told Metal Bulletin in an exclusive interview before LME Asia in Hong Kong next week.
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LIVE FUTURES REPORT 10/05: Falling LME stocks boost copper price; strong dollar puts pressure on rest of complex

Base Metals Market - Thu, 05/10/2018 - 10:52
Copper prices rallied to a three-week high on the London Metal Exchange in morning trading on Thursday May 10, with falling stocks continuing to boost prices.
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SHFE vs LME physical arbitrage 10/05: Copper, aluminium, zinc, nickel

Base Metals Market - Thu, 05/10/2018 - 10:15
Arbitrage for copper, aluminium, zinc and nickel imported into China on Thursday May 10*
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FORECAST: LME prices limited by likely downtrend, INTL FCStone says

Base Metals Market - Thu, 05/10/2018 - 09:44
Base metals prices on the London Metal Exchange will remain largely rangebound in May, with an imminent downtrend threatening any prospective gains, according to a forecast by INTL FCStone analyst Edward Meir.
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METALS MORNING VIEW 10/05: Metals prices largely weak, markets awaiting fresh direction

Base Metals Market - Thu, 05/10/2018 - 09:15
Base metals prices on the London Metal Exchange were more negative than positive on the morning of Thursday May 10, with all of the metals, except for tin (+0.2%) and lead (0.0%), down by an average 0.6%.
Categories: Metals Industry News

METALS MORNING VIEW 10/05: Metals prices largely weak, markets awaiting fresh direction

Base Metals News - Thu, 05/10/2018 - 08:15

Base metals prices on the London Metal Exchange were more negative than positive on the morning of Thursday May 10, with all of the metals, except for tin (+0.2%) and lead (0.0%), down by an average 0.6%.

Aluminium prices led the decline with a 1.1% drop to $2,330 per tonne, while copper prices were down by 0.1% at $6,811 per tonne.

Volume on the LME has been below average, with 4,769 lots traded as at 07.09 am London time.

This follows on from a day of consolidating-to-firmer prices on Wednesday, when copper, aluminium and lead were little changed, while nickel, zinc and tin prices closed up between 0.3% and 0.5%.

The precious metals were firmer across the board with the complex up by an average of 0.3% – gold is the laggard with prices up just $0.55 per oz at $1,312.90 per oz.

This follows a mixed performance on Wednesday, where gold prices dropped by 0.2%, silver and platinum prices were little changed and palladium prices closed up by 0.5%. Considering the United States announced it was walking away from the Iran nuclear deal, we are surprised gold did not react more positively.

Copper prices on the Shanghai Futures Exchange this morning were up by 0.6% at 51,210 yuan ($8,039) per tonne, nickel prices were off by 0.2%, while the rest of the metals were little changed.

Spot copper prices in Changjiang were up by 0.3% at 50,840-51,000 yuan per tonne and the LME/Shanghai copper arbitrage ratio has edged up to 7.52 from 7.51 on Wednesday.

In other metals in China, iron ore prices were down by 0.8% at 468 yuan per tonne on the Dalian Commodity Exchange. On the SHFE, steel rebar prices were down by 0.1%, while gold and silver prices were up by 0.1% and 0.4% respectively.

In wider markets, spot Brent crude oil prices were up by 0.49% at $77.72 per barrel, underpinned by the US/Iran developments. Meanwhile, the yield on US 10-year treasuries eased back from the 3% level and was recently quoted at 2.98%, and the German 10-year bund yield eased to 0.55%.

Equity markets in Asia were largely up on Thursday: Nikkei (+0.39%), Hang Seng (+0.64%), CSI 300 (-0.01%), Kospi (+0.61%) and the ASX 200 (+0.17%). This follows a stronger performance in western markets on Wednesday, where in the US the Dow Jones closed up by 0.75% at 24,542.54, and in Europe where the Euro Stoxx 50 closed up by 0.33% at 3,569.74.

The dollar index is consolidating recent gains again, at 92.97, it is just hovering below Wednesday’s high of 93.42 – the uptrend looks strong, but it has already travelled 4.7% in an all but straight line since April 17 – so some consolidation may be needed. With the dollar rally pausing, most of the other major currencies have halted their slides: euro (1.1874), sterling (1.3567), and the Australian dollar (0.7469) are steady, but the yen remains on a back footing at 109.84. The yuan is also consolidating at 6.3639, but most of the emerging market (EM) currencies we follow remain on a back footing, although the rand and peso have managed to firm.

The economic agenda is very busy today – see table below. Of the data out so far, China’s consumer price index (CPI) has slipped to 1.8% from 2.1%, but its producer price index (PPI) has climbed to 3.4% from 3.1%.

There is a host of European data out later which includes a European Central Bank (ECB) economic bulletin, Italian industrial production and a raft of UK data including industrial and manufacturing production, goods trade balance, construction output, the Bank of England’s inflation report and monetary policy data and interest rate decision. There is also CPI, initial jobless claims, natural gas storage and the federal budget balance from the US of note.

The recent rebounds in aluminium, zinc and lead are consolidating, while copper, nickel and tin prices remain rangebound. The combination of less than bullish economic data, the strong dollar, rising yields, high oil prices and heightened geopolitical tensions all make for a risk-off environment. As such, we would not be surprised if prices came under more downward pressure. If that is avoided, however, then it will be a sign that demand is not weak, but it will reconfirm our belief that in the current climate consumers feel little need to chase prices higher.

The fact gold prices have failed to react bullishly to the increased geopolitical risk over Iran/US suggests there is a lack of interest in switching to risk-on trade. The opportunity cost of holding gold is also higher now that US treasury yields are firmer and the stronger dollar is a headwind too. If higher yields, a stronger dollar and geopolitical tensions start to undermine investor confidence in broader markets, then gold may start to pick up safe-haven buying.

The post METALS MORNING VIEW 10/05: Metals prices largely weak, markets awaiting fresh direction appeared first on FastMarkets.

Categories: Metals Industry News

EUROPEAN MORNING BRIEF 10/05: EV charging to boost copper demand; Horizonte looks to enter nickel, cobalt sulfate market; DLA nets $3 mln in April tungsten sale

Base Metals Market - Thu, 05/10/2018 - 05:30
Good morning from Metal Bulletin’s offices in Asia as we bring you the latest news and pricing stories on Thursday May 10.
Categories: Metals Industry News

LIVE FUTURES REPORT 09/05: SHFE base metals prices broadly up; copper leads on the upside

Base Metals Market - Thu, 05/10/2018 - 05:15
Base metals prices on the Shanghai Futures Exchange were mostly up during Asian morning trading on Thursday May 10, with copper leading the rest of the complex, except aluminium and lead, higher.
Categories: Metals Industry News

EUROPEAN MORNING BRIEF 10/05: EV charging to boost copper demand; Horizonte looks to enter nickel, cobalt sulfate market; DLA nets $3 mln in April tungsten sale

Base Metals News - Thu, 05/10/2018 - 04:30

Good morning from Metal Bulletin’s offices in Asia as we bring you the latest news and pricing stories on Thursday May 10.

Base metals prices on the Shanghai Futures Exchange were mostly up during Asian morning trading on Thursday, with copper leading the rest of the complex, except aluminium and lead, higher.

Check Metal Bulletin’s live futures report here.

LME snapshot at 03.55 am London time Latest three-month LME Prices   Price ($ per tonne) Change since previous session’s close ($) Copper 6,838 28 Aluminium 2,337 -29.5 Lead 2,290 -2 Zinc 3,091 14.5 Tin 21,135 25 Nickel 13,875 -50

 

SHFE snapshot at 10.55 am Shanghai time Most-traded SHFE contracts   Price (yuan per tonne) Change since previous session’s close (yuan) Copper (June) 51,220 350 Aluminium (June) 14,615 -15 Zinc (June) 23,780 80 Lead (June) 18,885 -65 Tin  (Sept) 145,720 320 Nickel  (July) 104,160 260

Private corporations are driving a renewed push to install the infrastructure required to charge plug-in electric vehicles (EVs), which will in turn lead to copper demand of more than 500,000 tonnes over the next decade, according to John Gartner, senior research director at Navigant Research.

Horizonte plc, which acquired the Vermelho project from Vale, is exploring whether the project can produce nickel and cobalt sulfate suitable for EV batteries, it said on Wednesday.

DLA Strategic Materials sold approximately 197,000 lbs contained of tungsten ores and concentrates and 1,291 short tons of ferro-chrome during its April offerings for the materials.

First-quarter revenue from the commodities business of the Hong Kong Exchanges and Clearing (HKEX) fell 7% year on year to HK$267 million ($34 million), hurt by lower trading fees at the London Metal Exchange.

The United States’ Section 232 tariff on steel imports will help ease global steel overcapacity and boost domestic production, but it is only one step toward achieving those goals, according to industry executives.

The post EUROPEAN MORNING BRIEF 10/05: EV charging to boost copper demand; Horizonte looks to enter nickel, cobalt sulfate market; DLA nets $3 mln in April tungsten sale appeared first on FastMarkets.

Categories: Metals Industry News

LIVE FUTURES REPORT 09/05: SHFE base metals prices broadly up; copper leads on the upside

Base Metals News - Thu, 05/10/2018 - 04:15

Base metals prices on the Shanghai Futures Exchange were mostly up during Asian morning trading on Thursday May 10, with copper leading the rest of the complex, except aluminium and lead, higher.

The most-traded July copper contract on the SHFE traded at 51,220 yuan ($8,041) per tonne as at 10.55 am Shanghai time, climbing 350 yuan per tonne from Wednesday’s close. Around 130,582 lots have changed hands so far this morning.

Noticeable declines in copper stocks at London Metal Exchange warehouses on Wednesday have buoyed red metal prices this morning. LME copper stocks fell a net 9,600 tonnes to 293,025 tonnes yesterday. This followed a net decline of 8,750 tonnes on Tuesday.

“However, the surge in oil prices no doubt helped support investor sentiment across the complex, which was aided by a slightly weaker US dollar,” ANZ Research said on Thursday.

Oil prices had risen sharply in response to the news that the United States is pulling out of the Iran nuclear deal.

“Crude oil prices surged higher as the market reflected on the decision by President Trump to pull out of the Iran nuclear deal. The re-imposition of sanctions, which were waivered under the deal signed in 2015, could see exports reduced by around 300,000 barrels per day later this year,” ANZ Research added.

The dollar has also eased slightly since its recent rally at the start of the week. The index was down by 0.08% at 93.03 as at 10.55am Shanghai time, compared with a reading of 93.18 at roughly the same time on Wednesday. The index had reached a high of 93.42 yesterday – its highest reading since late December last year.

Base metals prices

  • The SHFE July aluminium contract price slipped 15 yuan per tonne to 14,615 yuan per tonne.
  • The SHFE July zinc contract price rose 80 yuan per tonne to 23,780 yuan per tonne, with approximately 130,000 lots having changed hands.
  • The SHFE June lead contract price dipped 65 yuan per tonne to 18,885 yuan per tonne.
  • The SHFE Sept tin contract price rose 320 yuan per tonne to 145,720 yuan per tonne.
  • The SHFE July nickel contract price increased 260 yuan per tonne to 104,160 yuan per tonne.


Currency moves and data releases

  • The dollar index edged down 0.08% at 93.03 as at 10.55 am Shanghai time.
  • In other commodities, the Brent crude oil spot price climbed 0.49% to $77.71 per barrel as at 10.55 am Shanghai.
  • In equities, the Shanghai Composite rose 0.16% to 3,164.29 as at 11.17 am Shanghai time.
  • In US data on Wednesday, the headline producer price index (PPI) disappointed with growth of 0.1% in April – below the expected 0.2% increase. Crude oil inventories declined by 2.2 million barrels, compared with an expected drop of 200,000 barrels.
  • In data today, China’s consumer price index (CPI) for April at 1.8% narrowly missed the forecast 1.9%, while the country’s producer price index (PPI) was in line with expectations at 3.4%.
  • Later there is a host of data from the United Kingdom including manufacturing production, goods trade balance, construction output, industrial production as well as the Bank of England’s inflation report, a vote on interest rates and subsequent decision and monetary policy summary.
  • US data today includes CPI, unemployment claims and natural gas storage.

 

LME snapshot at 03.55 am London time Latest three-month LME Prices   Price ($ per tonne) Change since previous session’s close ($) Copper 6,838 28 Aluminium 2,337 -29.5 Lead 2,290 -2 Zinc 3,091 14.5 Tin 21,135 25 Nickel 13,875 -50 SHFE snapshot at 10.55 am Shanghai time Most-traded SHFE contracts   Price (yuan per tonne) Change since previous session’s close (yuan) Copper (June) 51,220 350 Aluminium (June) 14,615 -15 Zinc (June) 23,780 80 Lead (June) 18,885 -65 Tin  (Sept) 145,720 320 Nickel  (July) 104,160 260 Changjiang spot snapshot on May 10   Range (yuan per tonne) Change (yuan) Copper  50,970-51,010 170 Aluminium 14,510-14,550 -40 Zinc 23,970-24970 -60 Lead 18,900-19,100 0 Tin  144,000-145,500 -250 Nickel  104,550-105,050 150

The post LIVE FUTURES REPORT 09/05: SHFE base metals prices broadly up; copper leads on the upside appeared first on FastMarkets.

Categories: Metals Industry News

COPPER COLLEGE - INTERVIEW: EV charging to use over 500,000 tonnes of copper by 2027 - Navigant Research

Base Metals Market - Thu, 05/10/2018 - 03:20
Private corporations are driving a renewed push to install the infrastructure required to charge plug-in electric vehicles (EVs), which will in turn lead to copper demand of more than 500,000 tonnes over the next decade, according to John Gartner, senior research director at Navigant Research.
Categories: Metals Industry News

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