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news covering the period of December 2019
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Tuesday, December 31
May 2020 be a kind, and memorable year for you. Happy New Year and our hopes that fortune smiles kindly on you!
Daily Nickel/Stainless Steel Briefing
Nickel closed Monday's trading
session at $6.49/lb ($14,315/tonne). Indicators at 6:00 am CST today show
nickel trading around $.06/lb
lower. Stockpiles of nickel stored in LME licensed warehouses continue
to swell, and after a near 4000 tonne increase, started the final day
of 2019 just under the 150.700 tonne level. Nickel ended the last day
of December 2018 at $10,690/tonne ($4.85/lb). It's highest close for
the year came on September 2nd, when it closed at $17,985/tonne). It
looks to close somewhere between $14,100 and $14,200/tonne today.
That's a gain of around $1.60/lb for the year, and a close around
$1.75/lb off its yearly high. Can you spell volatility? 2020 begins
with many questions. Most immediate is accounting for the huge gains in
stockpiles since mid December, that look to possibly continue into the
new year. Everyone thinks they know what happened, but if stockpiles
continue to grow past where they began to sharply fall, is the supply
and demand figured being put out completely wrong. Will the EV industry
recover and will the demand for battery nickel continue? Will stainless
steel production in China recover and is Indonesia becoming a new
threat of supply? What effect will the ban on nickel ore that begins
tomorrow in Indonesia have in China? These and many more remain to be
answered in the new year. We look forward to discovering the answers
with you. Enjoy your holiday break tomorrow and we hope to see you
Thursday!
Average price of LME traded cash nickel
so far this month
- $6.26/lb
Monday's market review - Copper holds near 8-month peak as
trade tensions ease - Copper prices held near eight-month highs on
Monday on the back of easing global trade tensions and as top metals
consumer China unveiled a measure to support flagging economic growth.
- more
Indonesia to become world's largest stainless steel exporter in 2021 -
According to foreign media, Luhut Binsar Pandjaitan, Indonesia’s
Coordinating Ministry of Maritime Affairs and Investment, believed that
Indonesia would become the world's largest exporter of stainless steel
by 2021. - more(we are skeptical of this claim)
Power Metal to take up 40% earn-in of Botswana nickel sulphide project
- “It is rare for investors in the junior resource space to have
exposure to near term drill campaigns that could have the potential to
yield a large-scale nickel sulphide discovery and we believe that the
MFC project is one such opportunity - more
Courtesy AISI - In the week ending on December 28, 2019, domestic raw
steel production was 1,876,000 net tons while the capability
utilization rate was 81.1 percent. Production was 1,861,000 net tons in
the week ending December 28, 2018 while the capability utilization then
was 79.4 percent. The current week production represents a 0.8 percent
increase from the same period in the previous year. Production for the
week ending December 28, 2019 is up 0.5 percent from the previous week
ending December 21, 2019 when production was 1,866,000 net tons and the
rate of capability utilization was 80.7 percent. - more
As we close another year and decade together, we thought we would share
a few nuggets for the history buff's among you.
The Problem - The Fulton County News (PA) July 8, 1909
The Solution - The Evening Star (Washington DC) - May 7, 1922
And in our opinion, a frame able piece from The Indianapolis Times January 7, 1936 page 11
"The Age of Steel is fast becoming the Age of Stainless Steel"
Page found here (download as pdf for your own copy) And from this feature piece, a small reminder of the marvel of stainless ....
Nickel closed Friday's trading
session at $6.45/lb ($14,210/tonne). Indicators at 6:20 am CST today show
nickel trading around $.03/lb
higher. Stockpiles of nickel stored in LME licensed warehouses received
another large shipment Friday and started the week just under the
146,700 tonne level. Cancelled warrants are just below the 18%
level. We are still watching the 166,680 tonne level with curiosity,
as that is the level nickel peaked at on Sept 13th, before these large
withdrawals began on October 1st, when stockpiles measured 157,986
tonnes. At the latter, it appears the stockpiles were being manipulated
by a large stainless steel producer in China (according to some
reports), who may have been trying to drive prices higher. This was
unsuccessful and on December 10th, the nickel started being returned to
LME warehouses. If this turns out to be true, someone lost their shirt
on the deal. And what will happen if these stockpiles increase past
where they were when this fiasco started? It's hard to determine what
actual supply and demand is doing when someone big is playing games
with the market. News is still quiet as the holiday season doesn;t end
until Thursday. LME markets are closed on Wednesday this week, so we
will post no update on New Years Day. Otherwise, thanks to our January
sponsor, Duraloy, we should be here the rest of the week. 2019 comes to
an end tomorrow and while some will take time to reflect, others are
already thinking about the new year (and decade) to begin. Mistakes
were made over the past 12 months, but there were numerous victories to
be had as well. We learn from both, and hopefully will experience
more victories than defeats in 2020. But, and this is important to
remember. You can't win without risking a loss. In other words, if you
want to win, you have to take the field and play the game. So clean
your uniform and update your play book over the next few days. A new
game starts Thursday! Have a great week!
Average price of LME traded cash nickel
so far this month
- $6.24/lb
Friday's market review - Copper near 8-month high on China
data and trade deal hopes - Copper prices hit their highest since May
on Friday after profits at industrial companies in top metals consumer
China grew at their fastest pace in eight months and as Beijing and
Washington moved closer to an initial trade deal. - more
China media reports that the European high-carbon ferrochrome benchmark
for the first three months of 2020 was settled at $1.01/lb, down
$.01/lb from last quarter.
Ferrochrome plants & their annual production capacity - more
City waits for smelter study: Mayor - City of Sault Ste. Marie will
wait for an environmental study before deciding whether or not to back
Noront’s ferrochrome smelter in Sault Ste. Marie. - more
Proof that mining alone could save Zimbabwe… - Once again I write in my
capacity as a Competent Registered Geoscientist with SAIMM-(South
African Institute Of Mining and Metallurgy), A fellow of the Geological
Society of England (GEOSOL) and a competent person with SACNASP ( South
African Council for Natural Scientific Professions). - more
Nickel closed Tuesday's trading
session at $6.50/lb ($14,340/tonne). Indicators at 7:05 am CST today show
nickel trading around $.14/lb
lower. Stockpiles of nickel stored in LME licensed warehouses went
unchanged over the holiday break and continue to measure just under the
143,200 tonne level. Nickel is the big loser on the metals trading
board this morning, followed by tin, with the others moving on slightly
in different directions. Nickel was up nearly 35% year to date before
today's drop. We wonder if the news from IBM has spooked traders
counting on EV battery demand to keep nickel prices inflated (see IBM
blog post in Other News). Or, it could be a simple as trading houses
taking end of the year profits and squaring their books. Whatever is
causing traders to head for the exit doors, we end the week with the
Grinch in control. We hope you all had a good Christmas and hope your
weekend is a safe and pleasant one.
Average price of LME traded cash nickel
so far this month
- $6.24/lb
Tuesday's market review - Zinc falls as increase in
Chinese stocks heralds surplus - Zinc prices fell for a second day on
Tuesday as an increase in stockpiles in China suggested supply of the
metal was on the rise. - more
China's stainless steel output likely to rise by 5% in 2020, down from
2019's 11% - It was reported that China's stainless steel output
was likely to rise by 5% in 2020, less than the 11% increase in
2019. - more
Status of US steel market drivers key to 2020 outlook - The
status of major US steel demand drivers ahead of 2020, and market
expectations for those sectors in 2020, will play a major role in steel
prices. - more
China November Nickel Ore Imports From Indonesia Surge Ahead of Export
Ban - China's monthly nickel ore imports from top miner Indonesia rose
to a near 6-year high in November although its overall intake fell, as
buyers raced to secure as much material as possible ahead of a ban on
Indonesian exports starting in January. - more
Independence falls out of love with Panoramic; $312m bid falls over -
Independence Group has given up on its pursuit of smaller target
Panoramic Resources after “a number” of defeating conditions were
breached. - more
PH nickel miner obtains first international award - Agata Mining
Ventures, Inc., which is majority owned by TVI Resource Development
Philippines, Inc., landed its first international recognition at the
ASEAN Mineral Awards, which recognizes best practices and being an
exemplary model of environmentally and socially-sustainable mining. - more
Courtesy AISI - In the week ending on December 21, 2019, domestic raw
steel production was 1,866,000 net tons while the capability
utilization rate was 80.7 percent. Production was 1,861,000 net tons in
the week ending December 21, 2018 while the capability utilization then
was 79.4 percent. The current week production represents a 0.3 percent
increase from the same period in the previous year. Production for the
week ending December 21, 2019 is up 1.2 percent from the previous week
ending December 14, 2019 when production was 1,844,000 net tons and the
rate of capability utilization was 79.7 percent. - more
Russia’s Top 5 Earners Amass Extra $26.9Bln in 2019 – Forbes - Five
Russian gas, oil and metals magnates ended the year as the country’s
biggest earners with a collective $26.9 billion haul, Forbes Russia
reported Thursday. All five individuals are among Russia’s 6 richest
people. - more
(Ongoing) India Anti-dumping investigation concerning imports of Flat
Rolled Products of Stainless Steel from China PR, Korea RP, European
Union, Japan, Taiwan, Indonesia, USA, Thailand, South Africa, UAE, Hong
Kong, Singapore, Mexico, Vietnam and Malaysia. - more
London
Metal Exchange will be closed Wednesday for Christmas and
Thursday for Boxing Day. Therefore we will publish a daily update on
Monday, Tuesday and Friday this week. Tuesday and Friday updates will
post a little later than normal. We wish our readers the happiest
of holiday's and a very Merry Christmas!
Christmas Eve Nickel/Stainless Steel Briefing
Nickel closed yesterday's trading
session at $6.51/lb ($14,350/tonne). Indicators at 7:20 am CST today show
nickel trading around $.03/lb
lower. Stockpiles of nickel stored in LME licensed warehouses resumed
their growth on Monday. gaining over 2800 tonnes and starting today's
session just under the 143.200 tonne level. We were afraid there would
be little news to post today and we were right. Markets are quiet and
nearly everyone is looking to Christmas. Our next update will be on
Friday and we wish you all a very Merry Christmas.
Average price of LME traded cash nickel
so far this month
- $6.21/lb
Yesterday's market review - Copper steady near 7-month
highs in thin trade - Copper prices held near last week’s seven-month
high on Monday as progress on a U.S.-China trade deal and improved
economic data lifted some clouds from the demand outlook. - more
Woman sentenced in Sydney over illegal metal alloy shipment to Iran - A
48-year-old woman has been sentenced to an Intensive Corrections Order
in a New South Wales court today (24 December) for her role in the
illegal exportation of 90 tonnes of nickel-rich superalloy from
Australia to Iran almost a decade ago. - more
Alloying Elements in Stainless Steel - Stainless
Steels comprise a number of alloying elements according to the specific
grade and composition. Listed below are the alloying additions with
the reason for their presence, whilst attached is a summary table. - more
Improvement of the corrosion and oxidation resistance of Ni-based alloys by optimizing the chromium content - pdf here
London
Metal Exchange will be closed Wednesday for Christmas and
Thursday for Boxing Day. Therefore we will publish a daily update on
Monday, Tuesday and Friday this week. Tuesday and Friday updates will
post a little later than normal. We wish our readers the happiest
of holiday's and a very Merry Christmas!
Daily Nickel/Stainless Steel Briefing
Nickel closed Friday's trading
session at $6.59/lb ($14,525/tonne). Indicators at 6:15 am CST today show
nickel trading around $.02/lb
lower. Stockpiles of nickel stored in LME licensed warehouses took a
day off from growing and for the first time in two weeks actually fell
a trivial amount. It opened the week reading just under the 140,400
tonne level. Nickel jumped late Friday and has done little this
morning. We expect a very quiet week, with many traders already on
extended holidays. And with that, we wish you a fantastic week!
Average price of LME traded cash nickel
so far this month
- $6.20/lb
Friday's market review - Positive trade vibes push copper
towards fifth weekly gain - Copper prices touched a seven-month high on
Friday and were set for a fifth consecutive weekly gain after a
U.S.-China trade deal dispelled some concerns about the health of the
global economy. - more
Followup to 2019 forecasts - In January, we linked to an article by Reuters (here)
that published their annual poll of metals analysts and their
price forecasts for 2019. Cash nickel was forecast to average $5.67/lb
during 2019 according to the poll results. As of the end of
November, cash nickel had averaged $6.31/lb. We are thinking about
taking an informal reader poll in early January for 2020 and seeing how our
readers do against the analysts. Stay tuned.
Outlook weak for metals, mining, but downside limited: S&P Global
Ratings - Despite a weak 2020 outlook, the metals and mining sector
may limit market downside with production cuts and organizational
investments, S&P Global Ratings analysts said in a recent report. -
more
Mercuria cuts China metals, petchem trading team to reduce risk -
sources - Commodity trading giant Mercuria has axed up to a quarter of
its Shanghai trading team, including base metal and petrochemical
traders, as it looks to reduce the risk in its portfolio, according to
three sources with knowledge of the matter. - more
Changing Parameters in World Stainless Steel Markets - World stainless
steel markets are in a state of transformation, due to shifts in the
established patterns of supply and demand. - more
China stainless steel production growth to slow in 2020 - China’s
production of stainless steel is expected to rise 5% in 2020, slowing
from an 11% increase amid concentrated release of production capacity
this year. - more
Metal
production slightly higher in first half – MGB - The country’s metal
output was valued higher at ₱99.58 billion during the first half of the
year, while almost all mineral commodities registered slightly higher
output during the period except nickel. - more
'When two elephants fight': EU, Indonesia tussle over resources - As
disputes over palm oil and nickel head to World Trade Organization,
affected residents say they feel trapped. - more
Reinstated Nickel Mine Lease Sends Minnesotans to DC - A pristine
wilderness where Minnesotans go to fish, hunt and snowshoe is at risk
of contamination from acid mine drainage, environmentalists and
business owners warned a federal judge in Washington on Friday. -
more
Nickel closed Thursday's trading
session at $6.43/lb ($14,170/tonne). Indicators at 7:10 am CST today show
nickel trading around $.03/lb
higher. Stockpiles of nickel stored in LME licensed warehouses continue
to rise thru large increases, and started today just over the 140,400
tonne level. Last full week of the year comes to an end today, with
Christmas and other holidays shutting down markets on various days next
week. Typically, these type of weeks see little action on the LME, but
as soon as we say that statement is based off historical precedence,
the market will prove it does the unexpected. Nickel recovered from its
bearish mood on Wednesday and is now back to trading in the range we
think the big trading houses desire to end the year at. Fair amount of
news to end the week at, so we leave you with it. We wish you all a
safe and enjoyable weekend, and hope to see you back on Monday.
Average price of LME traded cash nickel
so far this month
- $6.19/lb
Australia Resources and Energy Quarterly - December 2019 - more
Thursday's market review - Growing confidence in Chinese
demand sustains copper - Copper prices hovered near seven-month highs
on Thursday, buoyed by optimism about Chinese growth and demand, and
progress in the prolonged trade dispute between the United States and
China. - more
For China's stainless steel industry, 2020 will be a year
of fierce competition, raw materials red delivery is still the main
competitiveness of the development of steel mills, China's stainless
steel production growth is expected to slow, but the total increase in
2020 is expected to be 5.3%.
The global primary nickel gap in 2020 is 23400 tons,
slightly larger than that of 17500 tons in 2019. Global nickel
consumption is expected to grow by 5.46% in 2020, while supply growth
is slower than consumption growth by 5.26%.
China's nickel pig iron market: a shortage of nickel mines
is imminent. A partial reshuffle of nickel pig iron plants is
inevitable.
Overall, nickel prices are bound to continue to be choppy in 2019.
November 2019 crude steel production - World crude steel production for
the 64 countries reporting to the World Steel Association (worldsteel)
was 147.8 million tonnes (Mt) in November 2019, a 1.0% decrease
compared to November 2018. - more
Market Trend of Import of Ferroalloy as of 13 December 2019 = The price
is difficult to increase continuously because of a weak demand =
Because the sluggishness of a ferroalloy price lengthened, the
operation cessation and the announcement of reducing production by
producers become prominent in the ferroalloy market. - more
ICBC Standard aborts plan to shut base metals unit - ICBC
Standard Bank has abandoned proposals to shut its base metals business
and instead plans to merge it with the precious metals unit to cut
costs, the bank told Reuters in an emailed statement. - more
Metal mines output up 6.5% by value - The value of production generated
by metal mines rose 6.5% year-on-year in the first nine months to
P99.58 billion, the Mines and Geosciences Bureau (MGB) said. - more
JPMorgan metals traders under Singapore scrutiny, two more depart
-sources - Regulatory scrutiny of precious metals trading at JPMorgan
Chase & Co. , one of the world’s largest gold brokerages, has
expanded to Singapore and ensnared two more bank employees, according
to people familiar with the situation. - more
The politicizing of Twin Metals - Twin Metals Minnesota launched its
underground copper-nickel mine plan into the environmental review stage
on Wednesday, and by doing so, could have established the project as a
national talking point in the 2020 election. - more
National Defense Authorization Act for Fiscal Year 2020 - for those
selling to the government, here is the defense spending for 2020. If
there is something the industry needs to know, let us know, will you.
1794 pages is a tad too much for us to browse - pdf here
London Metal Exchange will be closed next Wednesday for Christmas and
Thursday for Boxing Day. Therefore we will publish a daily update on
Monday, Tuesday and Friday next week. We wish our readers the happiest
of holidays and a very Merry Christmas!
Boxing Day is a holiday that custom states was started for
servants, who having worked on Christmas, were given a 'box' of goodies
and the day off on the day after Christmas. It is a holiday still
recognized in many former British colonies, except of course, the
United States.
Thursday, December 19
Daily
Nickel/Stainless Steel Briefing
Nickel closed yesterday's trading
session at $6.29/lb ($13,870/tonne). Indicators at 6:15 am CST today show
nickel trading around $.11/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose by
over 3000 tonnes, again, and started the session just under the 136,800
tonne level. Nickel continues to trade rangebound, erasing yesterday's
bearish turn. Not seeing anything in the news that might account for
the jump this morning. It could be as simple as the big boys have
reached a target number for the year end and are fighting to maintain
it. As we mentioned earlier in the week, a 33% increase in the price of
nickel for the year, will look impressive in the future. One could be
annoying and remind future investors that during 2019, nickel has
fallen from its highest point on a much larger scale than it grew from
its lowest point. But why spoil the fun with facts. In the meantime,
those who stock stainless steel items in their inventory have a wide
spectrum of costs to work with. Typically when prices are on the
decline, distributors are willing to take a cut in profits to move the
older, more expensive inventory out the door. There is no reason to do
this when prices are on the increase, as the replacement cost for
inventory could be as much as your sale price today. When markets are
in flux, as they have been this year, it is hard to know exactly what
to do. Take your best shot, and move on.
Average price of LME traded cash nickel
so far this month
- $6.17/lb
Yesterday's market review - Copper slips after rally to
7-month highs - Copper prices dipped from the previous session's
7-month high on Wednesday as data showing record Chinese production of
the metal helped persuade investors to pause for breath after a rapid
rally. - more
Unexpected bump on the EV road hits battery metals: Andy
Home - It’s been a tough year for electric vehicle (EV) metal
bulls. - more
Battery breakthrough? Powerful IBM design uses minerals from seawater, no heavy metals - more
Batteries, EVs to play ‘critical role’ in low-carbon future - more
Taiwan's 300 series stainless steel HRC imports hit 2-year new high in
Nov - The import volume of 300 series stainless steel hot rolled coils
(HRC) in Taiwan continued to decrease in October. - more
European Steel Buyers Slow To Accept Mill Price Hikes - European strip
mill product prices stabilised, in early December. In Italy, basis
values moved up a little. - more
Warning lifted as cyclone shifts away from New Caledonia - A powerful
cyclone that hit New Caledonia late on Monday and shuttered nickel
operations has moved offshore, allowing authorities to lift warnings on
the French South Pacific territory. - more
A Letter from Twin Metals' CEO - Today is a day to celebrate. From all
of us at Twin Metals Minnesota, we want to extend our sincere
appreciation for your interest in our work over the years. - more
Nickel closed Tuesday's trading
session at $6.33/lb ($13,960/tonne). Indicators at 6:15 am CST today show
nickel trading around $.03/lb
lower. Stockpiles of nickel stored in LME licensed warehouses rose on
Tuesday with another large receiving day, and started today just over
the 133,700 tonne level. Stockpiles are now back to where they were on
October 4th. The accelerated and large declines in LME stockpiles
started October 1st and we began with 157,986 tonnes. Let's see how
much more climb they have left. Not a whole lot to talk about today.
Stockpiles are growing and the bull has run out of steam, but they are
keeping the bears in check. The short term trend has turned negative,
but without much enthusiasm. Market tried multiple times but could not
climb above $6.48/lb earlier this week, so note that as minor
resistance. And minor support is at $6.28/lb.
Average price of LME traded cash nickel
so far this month
- $6.16/lb
Tuesday's market review - Copper hits seven-month high on
worries about tight supply - Copper touched a new seven-month peak on
Tuesday as investors began looking beyond the U.S.-China trade deal to
potential shortages next year due to production problems. - more
Baosteel Raises Prices of All Steel Products for Jan Shipments -
According to a source, China's Baosteel informed 11th December users of
its domestic prices of steel products for January shipments. - more
Morgan Stanley Restarts Its Base Metals Business-Sources - U.S.
investment bank Morgan Stanley is building up its base metals trading
business after abandoning it four years ago, sources familiar with the
matter told Reuters. - more
Are steel prices trending up? - After declining for much of 2019, steel
prices moved up substantially in the last two months of the year. What
will be the trend heading into early 2020? - more
Court says companies can seize Zimbabwe mining assets - Amari Holdings’
firms have won the right to seize assets in compensation for Zimbabwe
Mining Development’s cancellation of certain ventures - more
EU Nickel Ore Row, Minister Luhut: No One Dictates Our Policies -
Coordinating Minister of Maritime Affairs and Investments, Luhut Binsar
Pandjaitan, asserts that Indonesia will fend-off European Union’s
lawsuit against Indonesia’s nickel ore export ban. - more
On eve of mine plan, Landwehr asks Walz to block Twin Metals proposal -
A group of Minnesota environmentalists, including former Natural
Resources Commissioner Tom Landwehr, are calling on Gov. Tim Walz to
stop the proposed Twin Metals copper-nickel mine, saying it imperils
the Boundary Waters Canoe Area Wilderness, one of the state’s greatest
assets. - more
Solar powered mines now commercially viable without need for subsidies
- Remote power system company Zenith energy has deployed a solar-diesel
hybrid generation system at a remote Western Australia mine site, that
the company believes will be one of the first such systems that shows
the technology is commercially viable without the need for government
subsidy. - more
(Link worth saving) Stainless Steel and the European Union Restrictions
on Hazardous Substances (RoHS) Directive - Hexavalent Chromium Is Not
Present In Stainless and Specialty Steels - pdf here
Nickel closed Monday's trading
session at $6.44/lb ($14,200/tonne). Indicators at 6:20 am CST today show
nickel trading around $.01/lb higher.
Stockpiles of nickel stored in LME licensed warehouses resumed
receiving larger shipments and now total just over the 130,200 tonne
level. Cancelled warrants are now in the 15% range. While nickel is
trading slightly higher today, and ended slightly higher yesterday, the
trend appears to have turned sideways on Friday. Technical indicators
are mostly neutral as well, as traders wait to see which way the next
movement will go. The recent bump takes the year to date increase in
nickel prices back to 33%+, which in the years to come will prove far
more important than the tank in price it took midyear as well. For
downstream users, after some rather 'easy' years, 2019 will prove as
one of those years of volatility that has given nickel a less than
favorable opinion amongst stainless steel users over the years.
If you
are new to the stainless steel industry, and have the responsibility
of purchasing and selling stainless steel related product, we
welcome
you aboard. Seasickness was probably not one of the attributes of the
industry they explained to you during your initial interview, but,
well. .... why should they spoil all your fun. If you survived the
entire year of 2019, you are a salty old veteran now and have earned
the right to become as cynical as the rest of us salty old sea dogs. Oh
wait. Just remembered. Salt can be a bad word around stainless.
Average price of LME traded cash nickel
so far this month
- $6.14/lb
Monday's market review - Copper gains on trade deal, but
fails to hit new peak - Copper prices rose on Monday on optimism that a
China-U.S. trade deal would help boost economic growth and demand for
metals, but some analysts doubted new highs would be hit before next
year. - more
Indonesia to become leader in global stainless steel exports -
Indonesia will lead global stainless steel exports. The country will be
the world’s largest stainless steel exporter by 2021 as its stainless
steel exports were growing constantly and have reached US$5.8 billion
yearly. - more
WBMS Nickel market records deficit in January to October 2019 - The
nickel market was in deficit during January to October 2019 with
apparent demand exceeding production by 40.4 kt. In the whole of 2018
the calculated deficit was 102.9 kt. - more
Australia's Independence Group extends takeover offer period for
Panoramic - Australian nickel miner Independence Group (IGO.AX) on
Tuesday extended the closing date of its takeover offer for smaller
peer Panoramic Resources, saying it required more time to assess its
position due to breaches of offer conditions. - more
Courtesy AISI - In the week ending on December 14, 2019, domestic raw
steel production was 1,844,000 net tons while the capability
utilization rate was 79.7 percent. Production was 1,861,000 net tons in
the week ending December 14, 2018 while the capability utilization then
was 79.4 percent. The current week production represents a 0.9 percent
decrease from the same period in the previous year. Production for the
week ending December 14, 2019 is up 1.3 percent from the previous week
ending December 7, 2019 when production was 1,821,000 net tons and the
rate of capability utilization was 78.7 percent. - more
Battery recycling: Audi and Umicore start closed loop for cobalt and
nickel - More than 90 percent of the cobalt and nickel in Audi e-tron*
high-voltage batteries can be recycled - more
Nickel closed yesterday's trading
session at $6.43/lb ($14,170/tonne). Indicators at 6:20 am CST today show
nickel trading around $.01/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose on
Friday and started this week just under the 124,200 tonne level.
Cancelled warrants are still in the 16% range, after being whacked last
week. Nickel is bumping up against the $14,200 tonne level this
morning, and has so far shown little interest in moving any higher. If
the market does not fall today, we will have our fifth consecutive
positive trading day for nickel on the LME. For the most part, the
commodity trading board is in the black/green this morning. Philippine
President Duterte is apparently threatening to stop nickel ore
exports.... again, possibly frustrated with Indonesia getting all the
headlines.
Analysis of the threat can be found below. We found an interesting
online tool for our readers with an interest. You can build your own
chart tracking steel shipments around the world (see sample graph and
link below). Lots of info so we leave you with a wish for a great week.
Average price of LME traded cash nickel
so far this month
- $6.12/lb
Yesterday's market review - Copper rises for a second week
on U.S.-China trade progress - Copper prices slipped on Friday but were
still up for a second consecutive week after the United States and
China said they had agreed a "phase one" trade deal but were hazy on
details. - more
Nickel markets can shrug off any Philippine mining ban: Russell - Just
how worried should nickel markets be about the latest threats by
Philippine President Rodrigo Duterte to stop all mining in the world‘s
biggest exporter of the metal ore? Probably not too much. - more
84 FR 68400 - Refillable Stainless Steel Kegs From the People's
Republic of China: Countervailing Duty Order - more
84 FR 68405 - Refillable Stainless Steel Kegs From the
Federal Republic of Germany and the People's Republic of China:
Antidumping Duty Orders - more
Call for New Caledonia to probe Vale plans - The Caledonian Union has
called for a broad stocktake after the Brazilian miner Vale announced
it would sell its nickel asset in New Caledonia. - more
Backes expects China may get New Caledonia nickel stake - more
Service Center Shipments Decline in November - Shipments of steel and
aluminum were down in both the U.S. and Canada in November, reports the
Metals Service Center Institute, Rolling Meadows, Ill. - more
Chilean billionaire suing over BWCA mine is reportedly Ivanka Trump‘s
landlord - Ivanka Trump and Jared Kushner are renting a Washington,
D.C., home from a Chilean billionaire whose company is embroiled in a
dispute with the U.S. government over a proposed copper-and-nickel mine
near Minnesota’s Boundary Waters Canoe Area, Wednesday. - more
Madagascar mining chamber criticises plan to raise minerals taxes -
Madagascar’s mining chamber on Monday sharply criticised a draft mining
law that proposes greater government revenue from mining activities,
saying the changes will halt new investment and endanger existing
mining operations in the country. - more
Letter: …Who are those that are so strongly opposed to Twin Metals
copper-nickel mining project? - Letter to the Editor:Earlier this week
I attended the annual legislative meeting hosted by the Community
Economic Development Joint Powers Board. - more
Comparing Steel Trade Flows - this site offers charts comparing
imports/exports between multiple countries. This is USA and China.
Interesting to note the effect of tariff's under the current
administration appear to have had much less effect than measures taken
by the prior administration that ended January 2017.
Nickel closed Thursday's trading
session at $6.34/lb ($13,980/tonne). Indicators
at 6:20 am CST today show
nickel trading around $.10/lb
higher. Stockpiles of nickel stored in LME license warehouses rose
yesterday, but after what we have seen this week, a 1100+ tonne gain
would have been a large increase a month ago, but this week, is mere
chicken scratch. We started the day just over the 123,300 tonne level.
Equity markets are cheering what they believe will be some sort of
announcement today on aspects of a US-Chine trade deal - a phase two if
you will. President Trump, who has been in the media for all the wrong
reasons lately, needed this win and the impeachment news could have
helped get this deal done. Regardless, investors are betting whatever
is announced will help get China's economy back on track. Notorious
nickel, with a mind of its own, was already in a bullish bounce this
week, but the market could be using the trade news to keep the bulls in
line. It's been your typical Friday the 13th type of week, with
nickel's short term trend turning bullish, while at the same time
London Metal warehouses being flooded with nickel inventory. Oh
well.... we did call it "notorious nickel". We wish each of you a safe
and relaxing weekend, and hope to see you again next week. We start the
last half of the last month of the 2010's decade on Monday.
Average price of LME traded cash nickel
so far this month
- $6.08/lb
What Drives Nickel Prices –A structural VAR Approach - pdf here
Thursday's market review - Copper rally falters after
7-month high as producers hedge - Copper prices pulled back from fresh
highs on Thursday as miners hedged to take advantage of the strongest levels in seven months. - more
China's 2020 crude steel output expected to drop - govt research body -
China's crude steel output in 2020 is expected to ease from a record
high this year to 981 million tonnes, a government consultancy said on
Thursday. - more
Nickel mining resisted in Indonesia - A looming export ban on raw
nickel has prompted a wave of Chinese investment in nickel smelters,
prompting local resistance - more
Ramu LOs reap lucrative benefits, highlights Tobe - The Ramu
nickel/cobalt project in Madang has offered more than K144 million
worth of business opportunities to the landowners during the
construction phase from 2006 to 2012, according to the company. - more
Agencies to take comments on plan for Minnesota mining - Friends
and foes of copper-nickel mining are mobilizing supporters for a
meeting Thursday on a proposal aimed at protecting more than 234,000
acres of land near a pristine Minnesota wilderness area. - more
Teck seeking state’s permission to explore minerals near Babbitt - more
Freight Transportation Service Index up 1.3% in October, BTS says - more
Trump signs off on deal to pause US-China trade war - more
Stocks Surge on Trade Deal Hopes; Pound Rallies: Markets Wrap - more
Thursday, December 12
Daily
Nickel/Stainless Steel Briefing
Nickel closed Wednesday's trading
session at $6.28/lb ($13,850/tonne). Indicators at 6:15 am CST today show
nickel trading around $.01/lb
lower. Stockpiles of nickel store in LME licensed warehouses rose by
nearly as much as it has the last two days combined and now sits just
over the 122,000 tonne level. If there is any justice in the world,
then the Chinese stainless steel producer, who was taking so much
nickel earlier in the fall, in an apparent attempt to goose prices, is
now having to dump some of this nickel back on the market at an
incredible loss. In the mean time, this sudden spurt is really
confusing the market. Market showed 69,276 tonnes with 47.11% reserved
at the end of last week. Since then they have grown by 52,782 tonnes,
and cancelled warrants is in the 16% range, the lowest it has been in
... we can't remember the last time it was this low. One might think a
market already apprehensive over world trade wars and slowing stainless
production might look at this sudden extra supply as a pendulum in the
old supply and demand scenario and yet, the market is trading at its
high for the month, and has, at least for the moment, set up the
$14,000 tonne level as resistance. This could be a move by the bulls to
hurt the bears, who have been winning for some time, and force them to
cover their short bets before Christmas. These type of bullish runs can
go either way, so its too early to tell if the market has found a
floor. So the bulls are defending $13,000/tonne, and the bears are
fighting the $14,000/tonne level. Sounds like the last few weeks of
December could remain interesting.
Average price of LME traded cash nickel
so far this month
- $6.06/lb
Wednesday's market review - Copper hits highest level
since July on hopes of U.S. tariffs delay - Copper prices touched a
near five-month high on Wednesday on hopes that the United States would
delay imposing more trade tariffs on goods from China, which would
signal a detente in the dispute that has sapped metals demand. - more
Stainless steel melt shop production increased first nine months of 2019 - The
International Stainless Steel Forum (ISSF) has released figures for the
first nine months of 2019 showing that stainless steel melt shop
production increased by 3.4% year–on–year to 39.8 million metric tons.
- more
Apprehension in New Caledonia amid Vale's restructure - There is unease
and uncertainty in New Caledonia after the Brazilian miner Vale
announced its plans to divest itself of its interests in New Caledonia.
- more
After tumult of six months, ferrochrome plant reopens - Six months
after lying defunct, the state-owned ferrochrome and alloys plant at
Jajpur Road has become fully functional. - more
Precious metals drop in November as investors seek riskier assets;
nickel slumps - The S&P GSCI index of commodities was little
changed in November as investors' renewed risk-on sentiment weighed on
the appeal of gold while nickel experienced its worst drop in eight
years. - more
Our country can't be pressured: Jokowi talks trade strategies -
President Joko “Jokowi” Widodo has laid out strategies that could bring
about a competitive edge for Indonesia when the country faces pressures
from other countries over its trade policies, from palm oil to nickel.
- more
Mines close for a second day due to load-shedding - Most of SA’s
underground mines suspended work for a second shift due to uncertainty
about electricity supply from Eskom, which is struggling to keep its
power plants operational. - more
What are the pitfalls of deep sea mining? - Resting atop Thomas
Peacock’s desk is an ordinary-looking brown rock. Roughly the size of a
potato, it has been at the centre of decades of debate. - more
List of banner sponsors for 2020 - We thank them for their support and
helping make it possible to keep the site live for 2020
Nickel closed Tuesday's trading
session at $6.08/lb
($13,405/tonne). Indicators at 6:15 am CST today show
nickel trading around $.04/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose by
another astounding amount yesterday, and started today's session just
under the 96,800 tonne level. Stockpiles have grown by nearly 27,500
tonnes this week. Cancelled warrants have now slipped to the 30% range.
After hitting its lowest since mid
July, and very near the average price for all of 2018, nickel bounced
Tuesday, gaining $.03/lb over Monday's close, and $03/lb
lower than Friday's. And its trading higher today. If you are wondering
why nickel trading has turned positive at the same time stockpiles are
growing, you are not alone. Once again, we see evidence of why we
encourage buyers of nickel and stainless steel to put down the oars,
and go with the flow. Trying to fight that which one can not understand
is a fool's errand. We hope to learn where all this nickel is showing
up from. We have a sneaky suspicion it has something to do with the LME
investigating where all the nickel went earlier in the fall, but have
nothing to base that hunch on other than the amounts involved. We
will see - or maybe we never will. Bunch of market news and reports -
we leave you to it.
Average price of LME traded cash nickel
so far this month
- $6.05/lb
Tuesday's market review - Nickel rebounds from five-month
low as Indonesia ban looms - Nickel bounced from a five-month low on
Tuesday as investors regarded a sharp downtrend as overdone given an
export ban on ore from Indonesia from 2020 is expected to tighten the
market. - more
Analysis: Nickel weakness showing no sign of easing - Nickel has fallen
from grace in recent weeks, having been the sector darling for much of
2019, leading to talk about how low the metal can head before bottoming
out. - more
The future of nickel: tensions, trade bans and technology - It’s an
interesting time for nickel on the global markets. - more
Price of HC FeCr in China Continues to Show Tapering Down Trend = Rumor
of reduction in stainless steel production due to environmental
regulation = The price of high-carbon ferro-chrome in the Chinese
domestic market has continued to show a tapering down trend, and the
current price of Inner Mongolian product is in the range of CNY5,800 to
CNY5,900 per ton, down by CNY100 to CNY300 from the end of last week.
(Hereinafter, the price is per ton) - more
Anglo American shares stay in green despite 2020 output cuts - Anglo
American PLC have seen their shares in green despite cuts to its 2020
output guidance. - more
Madagascar plans higher royalties on nickel, cobalt, at least 20% stake
in mining production - Madagascar plans to increase its royalties on
nickel and cobalt to 4% from 2% at present, a draft mining law said on
Tuesday. - more
Indonesia nickel ore royalties double in regulations shake-up - Major
nickel ore exporter Indonesia will double royalties on sales of the ore
to 10% while also adjusting the charges for other minerals, according
to a copy of new government regulations seen by Reuters. - more
Investment shortfalls cause 30% drop in nickel smelter construction by 2022 - more
Nickel closed Monday's trading
session at $6.05/lb ($13,340/tonne). Indicators at 6:20 am CST today show
nickel trading around $.15/lb
lower. Stockpiles of nickel stored in LME license warehouses is the
story of the day, after growing by 14,200 tonnes in one day. We would
have to go back thru our records, but we believe this is the biggest
one day receipt we have seen in many years. Stockpiles started today
just over the 83,500 tonne level and cancelled warrants fell to the 38%
range. The market, obviously, is reacting negatively to this shocking
one day growth and we are wondering if this is reflection of the
slowdown in stainless steel production, or more evidence of less savory
activity. Regardless, another day like today and we will be close the
100,000 tonne level again. A few years ago, that level would have been
very concerning. Today, apparently the market is less so.
Average price of LME traded cash nickel
so far this month
- $6.07/lb
Monday's market review - Copper scales 4-1/2-month peak on
China demand optimism - Copper prices climbed to 4-1/2-month
highs on Monday as hopes of stronger growth and demand in top consumer
China were reinforced by numbers showing surprisingly robust imports. -
more
China stainless steel production inched up 0.7% in November -
Production of stainless steel in China inched up in November, after two
consecutive months of decline, as 200-series producers recovered from
maintenance. - more
Afarak warns of retrenchments at South African subsidiaries -
Specialist alloy producer Afarak has said two of its South African
subsidiaries – Afarak Mogale and Ilitha Mining – might retrench some
employees. - more
Works restart at Forrestania Nickel Operation in Western Australia -
Nickel mining firm Western Areas has resumed normal operations at its
Forrestania project in Western Australia, following a bush fire
incident last week. - more
China's steel mills alter iron ore procurement preferences as market
changes focus - Attractive steel margins and a relative lack of
pollution controls are having a marked impact on the iron ore
procurement preferences of China's steel mills in December ahead of the
Lunar New Year holiday that falls early in 2020, on January 25. - more
Courtesy AISI - In the week ending on December 7, 2019, domestic raw
steel production was 1,821,000 net tons while the capability
utilization rate was 78.7 percent. Production was 1,861,000 net tons in
the week ending December 7, 2018 while the capability utilization then
was 79.4 percent. The current week production represents a 2.1 percent
decrease from the same period in the previous year. Production for the
week ending December 7, 2019 is down 0.8 percent from the previous week
ending November 30, 2019 when production was 1,835,000 net tons and the
rate of capability utilization was 79.3 percent. - more
Nickel closed Friday's trading
session at $6.11/lb ($13,475/tonne). Indicators at 6:20
am CST today show
nickel trading around $.12/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose on
Friday and started the week just under the 69,300 tonne level.
Stockpiles remain ahead for the month. Nickel turned bullish to end
last week, but for whatever reason the market was goosed, it appears to
have been little more than a dead cat bounce. Nickel fell back to
around $13,200 tonne this morning and has done very little since. A
survey published in China on Friday show analysts polled there, felt
nickel would remain bearish this week by a margin of 3 to 1.
Since we have enough advertisers to cover 2020 (we will list them
at a later day), we are introducing a new layout for the new year,
which we will be tweaking over the next few weeks. While not exactly
relevant to those already in the stainless steel business, we kept and
improved the section on "Why Stainless Steel" for visitors. We are
here to provide you with industry news, but we will take any
opportunity we can, to interest visitors in stainless steel. "Other
News" has been moved to the bottom, and will contain news that may or
may not be of relevance or interest to you. Today, we point to articles
about the sudden closure of Celadon Trucking and the crisis building in
the trucking business, which those in your company responsible for
shipping, may need to apprised of. We also added a few macroeconomic
reports to the bottom while we will keep posting industry reports at
the top. We are open to suggestions and if there is something you feel
other members of the industry might be interested in, let us know. But
please remember, if you send us an email, put "stainless steel" in the
header. We discovered we had our spam filter turned up way too high
last month, and since we abandoned its use, we are inundated daily with
spam.
Average price of LME traded cash nickel
so far this month
- $6.08/lb
Friday's market review - Copper rises on U.S. jobs growth
and China tariff rollback - Copper prices rose sharply on Friday after
data unexpectedly showed U.S. employment rose at the fastest rate in 10
months in November, suggested the economy was not in danger of
stalling. - more
Nickel output to hit over 40 million WMT in 2020 - The country’s nickel
output is seen to increase next year, reaching more than 40-million wet
metric tons (WMT), the Philippine Nickel Industry Association (PNIA)
said. - more
Chinese media is reporting 300 series production made up
48.5% of stainless steel production last month. In an update we posted
in March 2008, 300 series stainless production made up 58.13% of all
stainless steel production in China then. 400 series production made up
25.52% back in March 2008 - 20.43% last month. 200 series, which made
up 16.35% in 2008, measured 31.1% last month. 200 series
stainless contains less nickel than 300 series.
Samancor to cut chrome ore, ferrochrome output - A continued
deterioration in market conditions, depressed prices and higher
electricity tariffs has prompted Samancor Chrome to reduce its chrome
ore and ferrochrome production levels for 2020. - more
Glencore
investigated by Serious Fraud Office over suspected bribery - The
Sydney Morning Herald has reported the SFO investigation added to
ongoing corruption probes into one of the world's biggest commodities
traders in the U.S. and Brazil. During the same period, most large
miners' stock has risen. - more
84 FR 66883 - Circular Welded Austenitic Stainless Pressure Pipe From
the People's Republic of China: Continuation of Antidumping Duty Order
and Countervailing Duty Order - more
China Macro & Metals: Steel output falls, but property creates
bright spots - Chinese steel production posted a rare drop in October,
while domestic steel prices have been buoyed by the property
sector. - more
Carbon and Alloy Steel Threaded Rod From Taiwan: Final Affirmative
Determination of Sales at Less Than Fair Value - more
If you
would be interested in sponsoring a banner across the top of the news
page in 2020, please contact us at info@estainlesssteel.com and put
"stainless steel" in the e-mail topic so our spam filter lets you thru.
We thank you for your support.
Friday's
Abridged Nickel/Stainless Steel Briefing
Nickel closed Thursday's trading
session at$6.03/lb (13,310/tonne). Indicators at 6:40 am CST today show
nickel trading around $.07/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell
slightly for a fourth day and started the day just under the 68,900
tonne level. Cancelled warrants are now up to near 48%. Reuters
reporter Andy Home is watching the cancelled warrants as well and warns
of a potential trap building for the bears (see below). Nickel bounced
off $5.92/lb early yesterday and has been rebounding since. Has nickel
finally found a floor? Stay tuned. Have a safe and relaxing weekend and
we invite you to join us next week.
Average price of LME traded cash nickel
so far this month
- $6.08/lb
Average price of LME traded nickel in
first half of 2019 - $5.59/lb / 2018 - $5.95/lb / 2017 - $4.73/lb /
2016 - $4.36/lb /
Reports
Reuters metals morning - Most industrial metals gain on trade deal optimism - more
Thyssenkrupp AG 2018/2019 Annual Report - pdf here
Mineral Industry Surveys Chromium September 2019 - pdf here
U.S. Imports for Consumption of Steel Products October 2019 - more
Thursday's market review - London copper slips as
trade-deal doubts linger - Benchmark London copper prices dipped on
Thursday amid scepticism over the chances for a near-term preliminary
trade deal between Washington and Beijing, despite U.S. President
Donald Trump sounding positive again about the prospects. - more
Nickel bubble deflates but a bear trap may be opening: Andy Home - The
nickel price bubble is slowly deflating but bears would be advised to
tread carefully with a sharp fall in LME inventory threatening a repeat
of the time-spread turbulence that rocked the London market in late
September. - more
Indonesia revises down outlook for nickel smelter capacity by 2022 -
Indonesia expects to have 29 nickel smelters operating by 2022, with
total annual input capacity of nearly 70 million tonnes, a mining
ministry official said on Friday, in a downward revision of a November
projection of ore refining capacity. - more
Doubt cast over planned restructure of New Caledonia‘s Vale nickel plant - Doubt
is being cast on the feasibility of the planned restructure of New
Caledonia‘s loss making Vale nickel company, which its Brazilian owner
has put up for sale. - more
Chinese company could buy New Caledonia's Vale nickel plant -report - more
Australia's Panoramic rejects Independence's takeover offer, plans
capital raise - Australian nickel miner Panoramic Resources on Thursday
recommended that its shareholders reject a takeover bid by larger peer
Independence Group NL and went ahead with a capital raising effort,
breaching an offer condition. - more
Russian Miner “Nornickel” is Testing a Trading Platform for Digital
Metal Tokens - Russia’s biggest refined nickel producer, Nornickel, has
announced that the testing of its digital platform that would promote
the sales of metal tokens has commenced. - more
Queensland council says Palmer firms owe $2.5m in unpaid bills - A
Queensland council is pursuing two of Clive Palmer's companies in court
seeking millions owed in rates and water charges. - more
EV battery costs, and emissions, fall dramatically as capacity
increases - The rise in production of battery packs to supply the
increasing demand for electric vehicles (EVs) has results in
significant falls in both prices and emissions, according to new
reports. - more
Thursday, December 5
If you
would be interested in sponsoring a banner across the top of the news
page in 2020, please contact us at info@estainlesssteel.com and put
"stainless steel" in the e-mail topic so our spam filter lets you thru.
We thank you for supporting this site.
Daily
Nickel/Stainless Steel Briefing(7:00
AM CST is 12 PM in London)
Nickel closed yesterday's trading
session at $5.95/lb
($13,120/tonne). Indicators at 6:20 am CST today show
nickel trading around $.01/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell only
slightly for a third consecutive day and started the day just over the
68,900 tonne level. LME warehouse shipments have done a whole lot of
nothing the last three days, but consecutive warrants remain above 42%,
so one would think shipments would pick up later in the month. Nickel
fell below support on Tuesday and fell below the $6/lb level yesterday
for the first time since mid July. We are now looking at the starting
level of the last bull run as strong technical support - or around
$5.45/lb. This year has so far turned out to be the story of two
halves. A two month bull run starting in January, ended the first of
March, and over the next 4 months, nickel lost half of what it had
gained. The second bull run started the first of July, lasted two
months again, and has been falling ever since. If the current trend
does not end, all gains from the last run will disappear, and we could
start working on the gains nickel made in January, and did not lose.
This has been one of those years that drives stainless steel
manufacturers, distributors and users absolutely crazy, with the
volatility of nickel having a huge effect on the daily price of
stainless. Four months ago, you were lucky if a quote for a stainless
steel product lasted a day, now the buyer is wary to commit on the
concern there will be a better price tomorrow. And the distributor, who
has to commit to buy their inventory 3 to 6 months before they will
actually have the material in their hands to sell .... watch as
purchases they made four months ago, stuff they don't even have their
hands on yet but are committed to, are now more expensive than current
orders. And to keep their inventory cycling, they are likely looking at
lower profit margins down the road.
Average price of LME traded cash nickel
so far this month
- $6.12/lb
Average price of LME traded nickel in
first half of 2019 - $5.59/lb / 2018 - $5.95/lb / 2017 - $4.73/lb /
2016 - $4.36/lb /
Reports
Reuters metals morning - London copper slips as trade-deal doubts linger - more
Gunsynd buys into Solomon Islands nickel company - more
Stocks back to 'risk-on' after Trump trade war scare - more
U.S. Futures, Stocks Advance as Bonds Edge Lower: Markets Wrap - more
Yesterday's market review - Copper prices rise on trade
deal prospects - Copper rose on Wednesday on reports of progress
towards an initial U.S.-China trade deal,though gains were capped by
scepticism in some quarters. - more
China’s stainless steel PMI in Nov comes to 45.21%, lower than
expectation - According to the report, the stainless steel’s Purchasing
Managers' Index (PMI) for China in November was 45.21%, lower than the
previous’ expectation, which showed the recent market was hard to
operate for the mills. - more
Vale
to exit New Caledonia, eyes Indonesia to boost nickel output - Brazil’s
Vale SA plans to exit its troubled New Caledonia assets but still aims
to ramp up nickel output ahead of rising demand for electric batteries,
executives said on Wednesday. - more
Mining firms anchoring power imports: ZETDC - Zimbabwe Electricity
Transmission and Distribution Company (ZETDC) acting director Ralph
Katsande has said large mining firms are sustaining the country's power
imports. - more
Tariffs
and tribulations: recasting US metals industries - “Trade
wars are good, and easy to win,” President Donald Trump tweeted in
March 2018 after imposing sweeping tariffs on US imports of steel and
aluminum. - more
Morning
Nickel Price Statistics & Figures
Today's almost official prices here / Yesterday's
actual LME official prices here or here
Shanghai Jinchuan nickel price -
available here
or here(updated)
Please let us know if any of
these
links stop working, stop carrying info, or become available to
subscriber's only. We encourage our readers to use the services of
those companies who supply news and information free of charge.Contact us
Wednesday, December 4
If you would be interested in
sponsoring a banner across the top of the news page in 2020, please
contact us at info@estainlesssteel.com and put "stainless steel" in the
e-mail topic so our spam filter lets you thru. We thank you for your
support.
Daily
Nickel/Stainless Steel Briefing(7:00
AM CST is 12 PM in London)
Nickel closed yesterday's trading
session at $6.07/lb ($13,375/tonne). Indicators at 6:20
am CST today show
nickel trading around $.02/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell even
more slightly than the day before (how does 1 lot sound?), and started
the day just under the 69,000 tonne level, again. Nickel traded fairly
quiet yesterday, but then in the afternoon, decided to take up
skydiving as a side hobby. That continued overnight, and this morning,
has seen the trading price bounce off overnight lows. Stockpile numbers
have done a big nothing this week, but cancelled warrants continue to
rise and are over 41%, and were under 34% this time last week.
Outokumpu published Environmental Product Declarations for stainless
steel last week and if you don't need to download a copy now, consider
bookmarking the link for later (see below). And Goro is for sale -
again.
Average price of LME traded cash nickel
so far this month
- $6.17/lb
Average price of LME traded nickel in
first half of 2019 - $5.59/lb / 2018 - $5.95/lb / 2017 - $4.73/lb /
2016 - $4.36/lb /
Reports
Reuters metals morning - Nickel falls on trade fears, China stainless steel oversupply - more
Stocks Rally on Fresh Hopes for U.S.-China Deal: Markets Wrap - more
Yesterday's market review - Rising Chinese supplies push
lead to five-month lows - Lead prices hit five-month lows on Tuesday as
funds and traders bet on weaker prices because of rising production of
the auto battery metal in China and the potential for market surplus. -
more
Vale puts New Caledonian nickel plant up for sale - Brazilian miner
Vale has put its 95 percent stake in its New Caledonian nickel plant at
Goro up for sale following years of huge losses. - more
Outokumpu environmental
product declarations (EPD) for stainless steel - We offer quantitative
and verified information on the environmental impact of our main
products for the architecture, building and construction in the form of
environmental product declarations and LEED fact sheets for green
building. - more
Government Fines Axiom for Alleged Breaches - Axiom Mining has received
fines and demands from the Solomon Islands Government. - more
Glencore's Glasenberg says successor could be in place next year -
Glencore could announce a new chief executive next year once a new
management team is in place, its current boss told an investor meeting
on Tuesday as the commodities giant laid out its priorities for 2020. -
more
Suppliers demand minister’s dismissal as Munali Nickel Mine debt
constricts them - Over 200 Zambian companies are on the verge of
bankruptcy after Munali Nickel Mine operating as Mabiza Resources
Limited proposed a three-year payment plan for goods and service
supplied to the mine this year threatening thousands of jobs. - more
Morning
Nickel Price Statistics & Figures
Today's almost official prices here / Yesterday's
actual LME official prices here or here
Shanghai Jinchuan nickel price -
available here
or here(updated)
Please let us know if any of
these
links stop working, stop carrying info, or become available to
subscriber's only. We encourage our readers to use the services of
those companies who supply news and information free of charge.Contact us
Tuesday, December 3
If you would be interested in sponsoring a banner across the top of the
news page in 2020, please
contact
us at info@estainlesssteel.com and put "stainless steel" in the
e-mail topic so our spam filter lets you thru. We thank you for your
support.
Daily
Nickel/Stainless Steel Briefing(7:00
AM CST is 12 PM in London)
Nickel closed Monday's trading
session at $6.22/lb ($13,720/tonne). Indicators at 6:15
am CST today show
nickel trading around $.04/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell only
slightly and stockpile totals stand just under the 69,000 tonne level.
Cancelled warrants continue to climb, so someone is placing orders -
whether for consumption or to hide is the unknown. After a steep drop
on Friday, Monday's market showed some stability, even gaining a few
cents. But that has apparently turned out to be what some traders call
a 'dead cat bounce', with prices back show this morning. After doing
this for many years, it has become apparent from watching news sources
and analysts reports, that we as humans, what to know why things are
happening the way they are happening. And we have also learned that
much of the time, the reasons given are total malarkey - meant to sound
good, and make sense, but mean very little. Watching the market is like
watching a herd of deer, cows, ... basically any hoofed animal.
Something happens to spook a small section of the herd and they run one
way or the other, with most of the herd having no clue why they are
running. Some of the time the herd just munches on grass, and the
market is quiet. People who watch the market love this condition,
because there really isn't anything to explain. Downstream users also
love this market condition as they can safely predict what prices are
going to be next month. But those who live off the 'market' hate it. A
quiet herd means nothing is happening and it means no one is hunting.
The nickel market has seen little quiet time this year, running hither
for part of the year, and thither the other. So why is the market
running thither at the moment? Ask the guy next to you. He's not
trying to outrun the herd.... just you. $6.19/lb remains as minor
technical support, and another newsy day.
Average price of LME traded cash nickel
so far this month
- $6.89/lb (average November)
Average price of LME traded nickel in
first half of 2019 - $5.59/lb / 2018 - $5.95/lb / 2017 - $4.73/lb /
2016 - $4.36/lb /
Reports
Reuters metals morning - Copper prices slide as new U.S. tariffs add to trade fears - more
China Suspends U.S. Navy Port Calls in Hong Kong - more
Toyota to invest $2 billion in developing EV's in Indonesia
- more
US reinstates tariffs on imports of steel and aluminum from
Brazil, Argentina - more
Did Trump talk bluster or was he hinting that China talks collapsing? Either way, stock futures slump - more
Stocks, U.S. Futures Drop on Trump Trade Remark: Markets Wrap - more
Monday's market review - Zinc hits 3-month low on
scepticism over China buoyancy - Zinc sank to its lowest in nearly
three months on Monday and other industrial metals also posted losses
as investors doubted that upbeat manufacturing data in China pointed to
an economic recovery. - more
Nickel downstream sector activity contracted for 8th straight month in Nov –
Manufacturing activities across nickel downstream sectors in China
weakened as expected in November and remained in contraction for the
eighth consecutive month, weighed by production cuts of stainless steel
and continued sluggish demand from electric vehicles, according to SMM
survey. - more
Ni SUS Scrap Price in Last Week of November JPY110,000 to JPY115,000 =
Price in Kansai and Chubu areas is also lowered following Kanto area =
As of November 26, the stainless steel mills in the Kanto area purchase
nickel-containing stainless steel scraps (SABOT) at JPY110,000 to
JPY115,000 per ton (delivered at plant). (Hereinafter, the price is per
ton) - more
Nickel Monthly News For The Month Of November 2019 - Nickel spot prices
were lower in November, and the LME inventory hits a 10-year low at
only 67k tonnes. - more
Nickel Ban; Minister Luhut Ready to Face European Union's Lawsuit -
Coordinating Minister of Maritime Affairs and Investment Luhut Binsar
Pandjaitan confidently conceded the European Union’s plan to file a
lawsuit against Indonesia to the World Trade Organization (WTO) after
Indonesia decided to stop exporting nickel ore starting from January 1,
2020. - more
Sustainable steel
indicators 2019 and the steel supply chain - As
COP25 begins today, the World Steel Association (worldsteel) publishes
Sustainable steel - Indicators 2019 and the steel supply chain. - more
84 FR 66154 - Welded Stainless Steel Pressure Pipe From Malaysia,
Thailand, and the Socialist Republic of Vietnam: Continuation of
Antidumping Duty Orders - more
Courtesy AISI - In the week ending on November 30, 2019, domestic raw
steel production was 1,835,000 net tons while the capability
utilization rate was 79.3 percent. Production was 1,903,000 net tons in
the week ending November 30, 2018 while the capability utilization then
was 81.2 percent. The current week production represents a 3.6 percent
decrease from the same period in the previous year. Production for the
week ending November 30, 2019 is down 1.4 percent from the previous
week ending November 23, 2019 when production was 1,861,000 net tons
and the rate of capability utilization was 80.4 percent. - more
Morning
Nickel Price Statistics & Figures
Today's almost official prices here / Yesterday's
actual LME official prices here or here
Shanghai Jinchuan nickel price -
available here
or here(updated)
Please let us know if any of
these
links stop working, stop carrying info, or become available to
subscriber's only. We encourage our readers to use the services of
those companies who supply news and information free of charge.Contact us
Monday, December 2
This news site has been online for 16 years. Today, we have a loyal
group of daily followers and visitors, who drop in
to catch up on the prior days events, and get a feel for what nickel
might do the next. Thru our 16
years, we have remained a free source, looking to click adds on the
page as
the primary source of income. That source of income has no longer
become
practical, as more visitors block 3rd party adds and the
clicks that do come, are of far less value today than they were just a
few years ago.
That leaves us with one feasible
option to raise
revenues, or close the site. Before we start the 2020 year, we invite
12 advertisers to
buy a banner to replace the add across the top of the news
page. The 728 x 90 banner will be posted for an entire month in
2020. If you would like to sponsor a
month personally, we can post any appropriate banner that you desire
(ie possibly non
profit, awareness, etc). The cost for the space/month is $300 per month
and
depending on the commitments received, we will determine by the end of
this year, whether continuation of the site is economically feasible.
Free metals news site have come
and gone in the last
decade, and we are one of the last to remain so. But click revenues
have
nearly ceased, and it is no longer feasible to continue under the
current model.
So we look to you for
help. If you would like to help keep this site active, please contact
us at info@estainlesssteel.com and please put "stainless steel" in the
e-mail topic so our spam filter lets you thru. Payments will be
accepted by Paypal to the same address.
We thank you for your support and hope to continue with you thru 2020.
Daily
Nickel/Stainless Steel Briefing(7:00
AM CST is 12 PM in London)
Nickel closed Friday's trading
session at $6.20/lb ($13,670/tonne). Indicators at 6:20
am CST today show
nickel trading around $.02/lb
higher. Stockpiles of nickel stored in LME licensed warehouses ended
last week just over the 69,000 tonne level. For the month of November,
nickel stockpiles rose 2,730 tonnes. Cancelled warrants may have
bottomed out, falling as low as 33.65 last Wednesday, but reading in
the 36-37% range since. Prices were hit hard over the Thanksgiving
holiday. We show the closing price fell a total of $710 per tonne
($.32/lb) on Thursday and Friday, with the market falling below the
psychological, and technically important $14,000/tonne level. Right now
the market is trading at its highest level nickel traded at in the
first five months of the year, before the market hit a three month
skid. This was the first bullish run of 2019, and it lasted from
January 2nd thru March 5th. The second run started on June 10th and
ended September 9th. Nickel is still up nearly 30% year to date, so if
the bear stays in control, it still has a lot of room to roam before
the price turns sour for the year. Nickel is still the only LME traded
base metal that is trading positive for the year, so the negative
pressure is intense. The US and Chinese manufacturing PMI's came in
with a positive reading for November, while Europe and Japan readings
remain negative (here).
We have a lot of news, and a lot of reports posted today. It's the
first day of the last month of the last quarter of the last year of the
second decade of the 21st century. In 30 days, we enter the 2020's.
Someday, Netflix will broadcast a show called the 2020's and a much
older us will watch the show with fond memories. How fond those
memories will be depends on what plans we are making today. May it be a
great week for you.
Average price of LME traded cash nickel
so far this month
- TBD
Average price of LME traded nickel in
first half of 2019 - $5.59/lb / 2018 - $5.95/lb / 2017 - $4.73/lb /
2016 - $4.36/lb /
Reports
Reuters metals morning - Zinc hits six-week low on skepticism over China's factory data - more
S&P Five global trends for the ferrous and steel
sectors - more
'Shocking' metallic gunk contaminates Sydney drinking water
dams - more
Light Duty Electric Drive Vehicles Monthly Sales Updates - more
Vale to use artificial intelligence at its nickel mine - more
Stocks Rise, Bonds Slump After Robust Factory Data: Markets Wrap - more
Friday's market review - Nickel records biggest monthly
fall since 2011 - Nickel hit its lowest in more than four months on
Friday and posted its steepest monthly loss in eight years on faltering
steel output from top producer China and waning impact from an
Indonesian ore export ban. - more
Vale set to downscale New Caledonian nickel plant - The Brazilian miner
Vale is set to downscale its nine-billion US dollar nickel plant in New
Caledonia in the face of competition from China. - more
European
Stainless Steel Prices Lose Link to Raw Material Costs - European
stainless steel prices continue to fall, relative to the costs of the
constituent raw materials. - more
Nickel ore at center of new RI-EU trade row - Indonesia's surprise plan
to ban the export of nickel two years early may scare foreign investors
away from Southeast Asia's biggest economy, analysts say, as it could
cement a reputation for policy flip-flopping. - more
Eu Provides Deadline For Indonesia To Resolve Nickel Export Ban - more
Indonesia Rule on Nickel Helps Playfair Mining in Norway - more
DPR Suggests Establishment of Committee to Beat Nickel
Cartel - more
Phillippines eyes bigger share of China nickel market - The Philippines
has ramped up nickel ore exports to China this year as it seeks a
bigger market share in the country ahead of Indonesia's export ban in
2020. - more
Indian consumption per capita of stainless steel hits record high in
2019 - The Indian Steel Minister Mr. Kulaste said when he attended the
ceremony of the 30th-anniversary celebration for Indian Stainless Steel
Development Association (ISSDA) that India's stainless steel
consumption per capita hiked to new level 2.5 kgs in 2019 which was
more than 100% raised against 1.2 kgs per capita in 2010. - more
Hyundai invests 1.55 billion USD in first Indonesia plant - Hyundai
Motors has entered into a memorandum of understanding with the
Indonesian government to build a vehicle manufacturing plant in Kota
Deltamas, east of Jakarta, where an “electric production line is also
being explored.” - more
EUROFER Supports EU Action against Indonesian Nickel
Policy - more
Positive spotlight shone on Thompson at Winnipeg mineral convention,
says councillor - News that Vale Manitoba Operations could possibly
spend $1 billion over five years to deepen Thompson mines in
anticipation of a growing demand for nickel as a component of batteries
for electric vehicles made Thompson the talk of November’s mineral
exploration conference in Winnipeg. - more
Morning
Nickel Price Statistics & Figures
Today's almost official prices here / Yesterday's
actual LME official prices here or here
Shanghai Jinchuan nickel price -
available here
or here(updated)
Please let us know if any of
these
links stop working, stop carrying info, or become available to
subscriber's only. We encourage our readers to use the services of
those companies who supply news and information free of charge.Contact us
"A Guide To LME
Trading"...pdf here(all
ton listings are metric tons = 2204.622 pounds ) Updated Monday thru
Thursday before 7 am CST - DisclaimerOriginal content and opinions copyright
www.estainlesssteel.com. All prices shown on
this page are indications only. Note - For real time and official LME
prices, LME requires a user subscribe to an authorized LME vendor.
Daily Nickel/Stainless Steel Briefing
($14,315/tonne). Indicators at 6:00 am CST today show
nickel trading around $.06/lb 
lower. Stockpiles of nickel stored in LME licensed warehouses continue
to swell, and after a near 4000 tonne increase, started the final day
of 2019 just under the 150.700 tonne level. Nickel ended the last day
of December 2018 at $10,690/tonne ($4.85/lb). It's highest close for
the year came on September 2nd, when it closed at $17,985/tonne). It
looks to close somewhere between $14,100 and $14,200/tonne today.
That's a gain of around $1.60/lb for the year, and a close around
$1.75/lb off its yearly high. Can you spell volatility? 2020 begins
with many questions. Most immediate is accounting for the huge gains in
stockpiles since mid December, that look to possibly continue into the
new year. Everyone thinks they know what happened, but if stockpiles
continue to grow past where they began to sharply fall, is the supply
and demand figured being put out completely wrong. Will the EV industry
recover and will the demand for battery nickel continue? Will stainless
steel production in China recover and is Indonesia becoming a new
threat of supply? What effect will the ban on nickel ore that begins
tomorrow in Indonesia have in China? These and many more remain to be
answered in the new year. We look forward to discovering the answers
with you. Enjoy your holiday break tomorrow and we hope to see you
Thursday!
Reports
Why Stainless Steel 
Monday's market review - Copper holds near 8-month peak as
trade tensions ease - Copper prices held near eight-month highs on
Monday on the back of easing global trade tensions and as top metals
consumer China unveiled a measure to support flagging economic growth.
- 
Indonesia to become world's largest stainless steel exporter in 2021 -
According to foreign media, Luhut Binsar Pandjaitan, Indonesia’s
Coordinating Ministry of Maritime Affairs and Investment, believed that
Indonesia would become the world's largest exporter of stainless steel
by 2021. - 
Power Metal to take up 40% earn-in of Botswana nickel sulphide project
- “It is rare for investors in the junior resource space to have
exposure to near term drill campaigns that could have the potential to
yield a large-scale nickel sulphide discovery and we believe that the
MFC project is one such opportunity - 
Courtesy AISI - In the week ending on December 28, 2019, domestic raw
steel production was 1,876,000 net tons while the capability
utilization rate was 81.1 percent. Production was 1,861,000 net tons in
the week ending December 28, 2018 while the capability utilization then
was 79.4 percent. The current week production represents a 0.8 percent
increase from the same period in the previous year. Production for the
week ending December 28, 2019 is up 0.5 percent from the previous week
ending December 21, 2019 when production was 1,866,000 net tons and the
rate of capability utilization was 80.7 percent. - more
As we close another year and decade together, we thought we would share
a few nuggets for the history buff's among you.
Other News
China media reports that the European high-carbon ferrochrome benchmark
for the first three months of 2020 was settled at $1.01/lb, down
$.01/lb from last quarter. 
City waits for smelter study: Mayor - City of Sault Ste. Marie will
wait for an environmental study before deciding whether or not to back
Noront’s ferrochrome smelter in Sault Ste. Marie. - 
Proof that mining alone could save Zimbabwe… - Once again I write in my
capacity as a Competent Registered Geoscientist with SAIMM-(South
African Institute Of Mining and Metallurgy), A fellow of the Geological
Society of England (GEOSOL) and a competent person with SACNASP ( South
African Council for Natural Scientific Professions). - 
China's stainless steel output likely to rise by 5% in 2020, down from
2019's 11% - It was reported that China's stainless steel output
was likely to rise by 5% in 2020, less than the 11% increase in
2019. - 
Independence falls out of love with Panoramic; $312m bid falls over -
Independence Group has given up on its pursuit of smaller target
Panoramic Resources after “a number” of defeating conditions were
breached. - 
PH nickel miner obtains first international award - Agata Mining
Ventures, Inc., which is majority owned by TVI Resource Development
Philippines, Inc., landed its first international recognition at the
ASEAN Mineral Awards, which recognizes best practices and being an
exemplary model of environmentally and socially-sustainable mining. - 
Russia’s Top 5 Earners Amass Extra $26.9Bln in 2019 – Forbes - Five
Russian gas, oil and metals magnates ended the year as the country’s
biggest earners with a collective $26.9 billion haul, Forbes Russia
reported Thursday. All five individuals are among Russia’s 6 richest
people. - 
(Ongoing) India Anti-dumping investigation concerning imports of Flat
Rolled Products of Stainless Steel from China PR, Korea RP, European
Union, Japan, Taiwan, Indonesia, USA, Thailand, South Africa, UAE, Hong
Kong, Singapore, Mexico, Vietnam and Malaysia. - 
Mercuria cuts China metals, petchem trading team to reduce risk -
sources - Commodity trading giant Mercuria has axed up to a quarter of
its Shanghai trading team, including base metal and petrochemical
traders, as it looks to reduce the risk in its portfolio, according to
three sources with knowledge of the matter. - 
November 2019 crude steel production - World crude steel production for
the 64 countries reporting to the World Steel Association (worldsteel)
was 147.8 million tonnes (Mt) in November 2019, a 1.0% decrease
compared to November 2018. - 
Market Trend of Import of Ferroalloy as of 13 December 2019 = The price
is difficult to increase continuously because of a weak demand =
Because the sluggishness of a ferroalloy price lengthened, the
operation cessation and the announcement of reducing production by
producers become prominent in the ferroalloy market. - 
Unexpected bump on the EV road hits battery metals: Andy
Home - It’s been a tough year for electric vehicle (EV) metal
bulls. - 
Taiwan's 300 series stainless steel HRC imports hit 2-year new high in
Nov - The import volume of 300 series stainless steel hot rolled coils
(HRC) in Taiwan continued to decrease in October. - 
Warning lifted as cyclone shifts away from New Caledonia - A powerful
cyclone that hit New Caledonia late on Monday and shuttered nickel
operations has moved offshore, allowing authorities to lift warnings on
the French South Pacific territory. - 
Baosteel Raises Prices of All Steel Products for Jan Shipments -
According to a source, China's Baosteel informed 11th December users of
its domestic prices of steel products for January shipments. - 
(Link worth saving) Stainless Steel and the European Union Restrictions
on Hazardous Substances (RoHS) Directive - Hexavalent Chromium Is Not
Present In Stainless and Specialty Steels - 
Chilean billionaire suing over BWCA mine is reportedly Ivanka Trump‘s
landlord - Ivanka Trump and Jared Kushner are renting a Washington,
D.C., home from a Chilean billionaire whose company is embroiled in a
dispute with the U.S. government over a proposed copper-and-nickel mine
near Minnesota’s Boundary Waters Canoe Area, Wednesday. - 
Madagascar mining chamber criticises plan to raise minerals taxes -
Madagascar’s mining chamber on Monday sharply criticised a draft mining
law that proposes greater government revenue from mining activities,
saying the changes will halt new investment and endanger existing
mining operations in the country. - 
Ramu LOs reap lucrative benefits, highlights Tobe - The Ramu
nickel/cobalt project in Madang has offered more than K144 million
worth of business opportunities to the landowners during the
construction phase from 2006 to 2012, according to the company. - 
Mines close for a second day due to load-shedding - Most of SA’s
underground mines suspended work for a second shift due to uncertainty
about electricity supply from Eskom, which is struggling to keep its
power plants operational. - 
Glencore
investigated by Serious Fraud Office over suspected bribery - The
Sydney Morning Herald has reported the SFO investigation added to
ongoing corruption probes into one of the world's biggest commodities
traders in the U.S. and Brazil. During the same period, most large
miners' stock has risen. - 
Commodity/Economic
Comments 
Outokumpu environmental
product declarations (EPD) for stainless steel - We offer quantitative
and verified information on the environmental impact of our main
products for the architecture, building and construction in the form of
environmental product declarations and LEED fact sheets for green
building. - 
Government Fines Axiom for Alleged Breaches - Axiom Mining has received
fines and demands from the Solomon Islands Government. - 
Suppliers demand minister’s dismissal as Munali Nickel Mine debt
constricts them - Over 200 Zambian companies are on the verge of
bankruptcy after Munali Nickel Mine operating as Mabiza Resources
Limited proposed a three-year payment plan for goods and service
supplied to the mine this year threatening thousands of jobs. - 
