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Metals Industry News

LIVE FUTURES REPORT 09/05: LME base metals prices find support; copper, nickel keep firm

Base Metals Market - Wed, 05/09/2018 - 18:10
Base metals prices on the London Metal Exchange kept firm at the close of trading on Wednesday May 9, with copper’s 1% climb leading a positive afternoon surge across the complex.
Categories: Metals Industry News

Peruvian zinc production grows 7% y-o-y in March

Base Metals Market - Wed, 05/09/2018 - 17:04
Peru’s zinc mine production rose by 7.2% year-on-year in March, attributed to a recovery from last year’s decline caused by the torrential rainfall that hit the country then.
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GLOBAL TIN WRAP: European premiums at 16-mth high on May supply crunch

Base Metals Market - Wed, 05/09/2018 - 16:51
Tin premiums in Europe ticked higher again in the week to Tuesday May 8 on the back of a temporary supply crunch, which resulted from the halt in exports from Indonesia at the start of the quarter.
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Peruvian copper production up in March boosted by Cerro Verde, Antamina mines

Base Metals Market - Wed, 05/09/2018 - 16:16
Copper mine production in Peru grew by 5.8% year on year in March, boosted mainly by higher volumes from Cerro Verde and Antamina mines.
Categories: Metals Industry News

Shan Islam to join AMT to market steel, aluminium premiums contracts

Base Metals Market - Wed, 05/09/2018 - 14:28
Shahnawaz Islam, who left CME Group last month, will join Amalgamated Metal Trading (AMT) in July to develop the London Metal Exchange ring-dealing member's ferrous and aluminium premium contract brokerage services.
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Brazil’s quota on tax-free primary ali imports nearly depleted, buyers facing 6% tariff

Base Metals Market - Wed, 05/09/2018 - 14:15
Primary aluminium consumers in Brazil are being denied import licenses with a 6% tariff exemption because the country’s quota on tax-free imported aluminium ingot has largely been depleted, Metal Bulletin understands.
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HKEX commodities Q1 revenue, earnings fall on lower LME trading fees

Base Metals Market - Wed, 05/09/2018 - 13:45
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.
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Horizonte looks to enter nickel, cobalt sulfate market with Vermelho deposit

Base Metals Market - Wed, 05/09/2018 - 13:04
Horizonte plc, which acquired the Vermelho project from Vale, is exploring whether the project can produce nickel and cobalt sulfate suitable for electric vehicle (EV) batteries, it said on Wednesday May 9.
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FOCUS: LME aluminium stocks dive to 2007 low following Rusal wind-down extension

Base Metals Market - Wed, 05/09/2018 - 12:37
Aluminium stocks at London Metal Exchange-approved warehouses have fallen by over 100,000 tonnes since the United States slightly loosened sanctions against Russian producer UC Rusal, leading to traders becoming more willing to deal with old stocks.
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NORTH AMERICAN MORNING BRIEF 09/05: LME base metals dip; MSC profit drop; US, Brazil Ali premiums edge up

Base Metals Market - Wed, 05/09/2018 - 12:35
The latest metal markets news and price moves to start the North American day on Wednesday May 9.
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Access World opens new warehouse in Dubai in continued diversification push

Base Metals Market - Wed, 05/09/2018 - 12:21
Glencore-owned Access World opened a new warehouse in Dubai on Wednesday May 9 in partnership with Rais Hassan Saadi (RHS) Group, part of its continued multi-product push beyond London Metal Exchange metals.
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GLOBAL ZINC & LEAD WRAP: China zinc importers eye potential arb; Iran supply worries spook lead market

Base Metals Market - Wed, 05/09/2018 - 12:06
Premiums for zinc ingots remained under downward pressure in Europe in the week to Tuesday May 8 due to rising stocks, but the market is keeping watch in China where an import arbitrage looks set to open.
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Metro Mining’s first bauxite shipment of 62kt to China; market players downplay spot price impact

Base Metals Market - Wed, 05/09/2018 - 12:00
Australian miner Metro Mining has made its first shipment of 62,000 tonnes of bauxite to China, a company source told Metal Bulletin, however, market players have downplayed the impact on spot bauxite prices due to the miner’s limited supply in the near term.
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FOCUS: LME aluminium stocks dive to 2007 low following Rusal wind-down extension

Base Metals News - Wed, 05/09/2018 - 11:37

Aluminium stocks at London Metal Exchange-approved warehouses have fallen by over 100,000 tonnes since the United States slightly loosened sanctions against Russian producer UC Rusal, leading to traders becoming more willing to deal with old stocks.

As of Wednesday May 9, total aluminium stocks on the LME have declined 108,600 tonnes, more than 7%, since the US Department of the Treasury’s Office of Foreign Assets and Control’s (OFAC) announced on April 23 that companies now have until October 23, instead of June 5, to wind down contracts with Rusal.

“The extension showed a loosening of the sanctions and it was made very clear – from OFAC and the LME – that old Russian units were fine, so people are no longer scared to handle them,” a trader said.

“Everyone is picking them up off the exchange because who knows how long it will be before new units arrive. So, grab the stock while you can,” he added.

There have been 11 straight days of aluminium deliveries out of LME-listed warehouses, with metal leaving Europe, the US and Asia.

Today, 21,100 tonnes was delivered out – taking on-warrant stock levels down to 863,950 tonnes from almost 1 million tonnes a month ago.

“From what I understand, the October delay has changed the color of the situation. Glencore is saying business as usual until then,” Geordie Wilkes, Sucden analyst, told Metal Bulletin.

“The US has mentioned that if [Oleg] Deripaska relinquishes control in Rusal they’ll reassess sanctions. To what effect those reassessments will impact the landscape is unknown,” he added.

Deripaska’s EN+ Group holds his 48% stake in Rusal, but the oligarch has agreed, in principle, to reduce his shareholding in EN+ Group to below 50%, which would effectively lower his stake in Rusal. Deipaska is yet to formalize the reduction, however.

The movements out of LME warehouses are a stark contrast to the original reaction to Rusal sanctions.

After the sanctions were first announced on April 6, there was a number of large deliveries on to the exchange in European locations after traders tried to dump their Russian metal.

Over 101,000 tonnes were delivered on April 12 – including the largest single aluminium delivery Rotterdam warehouses since 2014.

“The picture has changed. At first people were scared and did not want to hold their metal, had trouble financing it and put it back onto the LME,” a second trader said.

“Now all the metal that was delivered on is going to be snapped up because people want aluminium,” he added.

“The extension gave people a little bit of breathing space and there was some more relief so it is not unusual that people are getting hold of the metal again – premiums are still very high in the physical world,” a third trader said.

The Metal Bulletin Rotterdam duty-unpaid in-warehouse aluminium premium rocked over 20.5% following the Rusal announcement – and still sits at a three-year high of $150-160 per tonne.

Traders said they expect more stock to be delivered out of the exchange over the next few weeks while it still unknown when traders will be able to handle new Russian material.

“For now, there may be relaxed rules but the same problems are in place for new material and so people need to get hold of the stuff they are allowed to handle without any problems,” a fourth trader said.

“But we don’t want to get into a situation where the LME is lacking metal stock – then people will panic,” he added.

The recent deliveries out provided a slight boost to the LME three-month price. It dipped slightly following the loosening of Rusal sanctions with market panic calming down to the $2,200 per tonne level but is now trading back above $2,300 per tonne.

LME aluminium stock levels are already at a historic low; since the end of last year and throughout 2018 on-warrant stocks levels have been around the lowest since 2007.

In 2007, on-warrant stock levels fell to as low as 715,800 tonnes – a stark contrast to the 4,784,850 tonnes on-warrant in 2011.

The post FOCUS: LME aluminium stocks dive to 2007 low following Rusal wind-down extension appeared first on FastMarkets.

Categories: Metals Industry News

GLOBAL NICKEL WRAP: Premiums flat across the board

Base Metals Market - Wed, 05/09/2018 - 11:29
Nickel premiums in both China and Europe were unchanged on Tuesday May 8 due to the negative arbitrage window in China and muted demand in the aftermath of the May holidays respectively.
Categories: Metals Industry News

LIVE FUTURES REPORT 09/05: LME base metals higher; nickel bucks trend

Base Metals Market - Wed, 05/09/2018 - 11:25
Base metals on the London Metal Exchange edged slightly higher during morning trading on Wednesday May 9, with nickel the only metal in the complex trading lower.
Categories: Metals Industry News

MSC starts test runs at new Port Klang tin smelter, sees 60% drop in profit

Base Metals Market - Wed, 05/09/2018 - 11:19
Malaysia Smelting Corp (MSC) started run tests at its new tin plant in Port Klang in the first quarter of 2018, when profits were again hit by the inefficiencies of aged equipment at its Butterworth smelting facility, it said on Wednesday May 8.
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GLOBAL COPPER WRAP: Shanghai premiums for seaborne cargoes rise; premiums elsewhere flat

Base Metals Market - Wed, 05/09/2018 - 10:30
Copper premiums for seaborne cargoes in Shanghai saw upward movement this past week, while those in other major markets around the globe were largely stable due to regional holidays or industry events.
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SHFE vs LME physical arbitrage 09/05: Copper, aluminium, zinc, nickel

Base Metals Market - Wed, 05/09/2018 - 10:12
Arbitrage for copper, aluminium, zinc and nickel imported into China on Wednesday May 9*
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METALS MORNING VIEW 09/05: Metals nervous due to stronger dollar; rising yields start to rattle EM currencies

Base Metals Market - Wed, 05/09/2018 - 09:30
Base metals prices on the London Metal Exchange were mixed on the morning of Wednesday May 9, with all the metals, except tin (+0.2%) and lead (+0.3%), down by an average of 0.3%. Copper prices were off 0.4% at $6,785 per tonne.
Categories: Metals Industry News

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