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Platt's
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Rob TV
CNBC Commodity
Resource Radio
Market Matters Radio
World Weather
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February 2007 |
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(Nickel prices are responsible for approx.
60% of the cost of stainless steel - see bottom for
more)
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Wednesday, Feb 28 Andalusia Day in Spain, Peace Memorial
Day in Taiwan |
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  Today's official LME
nickel closing prices - cash - $20.14/lb - 3 month buyer - $18.55/lb. So,
did someone wake up the bear from his four year sleep today? Not hardly!
While nickel did finally get caught up in the decline in yesterday's stock
markets, it is merely another dip in the middle of a mountain range. And
the GPS map is showing no serious valley's nearby. Nickel started this
year, a mere two months ago, at $15.10/lb. And it started 2006 at $6.18/lb.
So while today's closing may be a tad less than yesterday's, the market will
have to get caught in a rock-slide before investors should get nervous, or
nickel/stainless buyers can afford to get their hopes up. The bears will
remain in hibernation, and investors will pocket their profits, or lick their
wounds, and antey up again for tomorrow. Today, 3 month nickel ended at$18.77/lb  ($41,390/tonne).(more)(more)
 JP Morgan to invest in Philippines
mining sector - "US investment bank JP Morgan said Wednesday it is looking
to finance major international mining companies that are expected to invest
in the Philippines' reviving mining sector." -article here
 No Concrete Triggers Found for Chinese
Stock Market "Black Tuesday" - "The Chinese stock market plunged almost 9%
yesterday, which was the largest fall in a decade, and local media are now
referring to the day as "Black Tuesday." However, securities analysts have
found no concrete triggers for the slump so far." -article
here
High nickel price could damage demand
- "THE fundamentals for the stainless steel industry remain strong, but the
very high price for key ingredient nickel could prove to be a rationing factor
in the sector, said LionOre CEO Colin Steyn." -article
here
 OSHA revises standards on hexavalent chromium
- "The Occupational Safety and Health Administration (OSHA) released at the
end of October 2006 a revised standard that governs regulation of employee
exposure to hexavalent chromium." -article
here
Chinese Stock Dive Buries Mining Stocks
- "Mining companies such as BHP Billiton, Rio Tinto Group, and Anglo-American
have scored bumper profits in recent years thanks to China's seemingly insatiable
demand for copper, nickel, and other metals." -article here
 Stainless Basic Prices Under Pressure as
Alloy Surcharges Soar -report
here
 Norilsk Nickel to recoup OMG investment
in 12 mths - Prokhorov - "MMC Norilsk Nickel expects to recoup what
it invests in the acquisition of the nickel-related assets of the OM Group
in a year, a press report in the city of Norilsk said, quoting Mikhail Prokhorov,
the Arctic mining and smelting giant's co-owner and general director." -more here
At 9:30 am CST, indications show nickel
is selling down by $.29/lb . In fact, all base and
precious meals are down at this hour. Here is a round-up of all the
world's major stock markets -here
 Metals Insider - Week in Review
-here
 Spain's Acerinox 2006 net profit beats
f'casts - "Spanish stainless steel maker Acerinox on Wednesday reported a
226 percent rise in net profit, beating forecasts, after a strong recovery
in world stainless steel prices in the second half." -article here
 More articles about yesterday and today's
market - "China casts shadow over commodities" -article here - "Miners walloped in record fall" -article here - "Chinese stocks recover, while Europe,
other Asian markets still struggle" -article here - "Chinese Stock Dive Buries Mining Stocks"
-article here
 Iron ore exports seen dented by new duty
- (from article) - "Chidambaram added that an export duty of Rs 2,000
per metric tonne had been imposed on chromium ores and concentrates, which
are used in making stainless steel.India's total iron ore reserves are estimated
at about 23 billion tonnes." -more here and "FM's levy of export duty on ore
leaves miners sulking" -article
here
Indications at 7:45 am CST show nickel
selling down by $.35/lb . Overnight stock markets
in Shanghai recovered nearly 1/2 of their losses from the day before, and
it will be interesting to see if other markets follow suit today. Does anyone
remember the crash of '87? Notice any similarities? The brand new Fed chairman
Greenspan opens his mouth, China panics because of something he says, the
rest of the world plays follow the leader? We have a brand new Fed chairman
again, but he isn't scheduled to talk until this afternoon. So who opened
their mouth this time? Could it be the supposedly retired Greenspan. Ok,
admittedly there are some big differences, but we could swear we have been
down this road before. Most of the pundits and pontificators being interviewed
over the last 24 hours, that we have watched, agree on one thing. The market
has strong fundamentals and this is no more than a simple correction. Nickel
appears to have finally buckled under the pressure, with some deciding to
take their profits. If you purchase nickel or stainless steel, there is no
reason to start the party though. The rocks that make up the stainless are
still in short supply, and today's dip is probably no more than the normal
up and down seen in a typical give and take market
(more)
 Behre Dolbear Global Mining News -pdf here
Buoyancy in commodities market to continue
- "The buoyancy in the commodity markets is expected to continue in 2007-08,
witnessing larger volume and value of commodities traded, according to the
Economic Survey 2006-07 released on Tuesday." -article here
Metals go on correction mode - "After
a sustained rally, metals basket showed early signs of a correction on Tuesday.
Market analysts, however, believe that any such correction would be short-lived.
The entire basket - especially precious metals - is enjoying a positive bias
both technically and fundamentally" -article here
 Investors Don't Dig U.S. Mining Stocks
- "Metals and mining stocks crumbled in Tuesday afternoon trading in New
York, as the aftershock of the Chinese stock market earthquake shook investors'
resolve." -article here
NMCE launches new series for futures trade
in base metals - "Futures trading in new series of aluminum, copper, lead,
nickel, tin and zinc would begin on March one at the National Multi-Commodity
Exchange (NMCE)." -article here
 Prony Energies, the power station
built by of Calédoniens - "Whereas the building site approaches its
last months, zoom on a local company, to which was entrusted the construction
of this gigantic project. " -translated article here (Goro related)
 Xstrata Nickel and USW Local 2020 Reach
Tentative Collective Agreement - "Xstrata Nickel announced today that the
company's Sudbury operation has reached a tentative agreement for a new
Collective Agreement with USW-Local 2020, Unit 6855, which represents Xstrata
Nickel's Office, Clerical and Technical (OCT) employees. There are approximately
200 employees in the bargaining unit. The prior agreement expired on February
28, 2007." -more
here andanother
Today's beginning nickel inventory - plus
12 tons = 3,294 tonnes (42.99% cancelled
warrants)
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Tuesday, Feb 27 Dominican Republic Independence Day |
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Today's official LME nickel closing
- cash - $20.18/lb - 3 month buyer - $18.64/lb. While mining companies felt
the pinch of the "stock correction" witnessed today, nickel and tin rode
out the storm and finished higher. Greenspan's remarks in Hong Kong yesterday,
along with the Chinese government taking new measures to slow that country's
market, spooked the Asian markets into the biggest one day drop in a decade,
with other world markets following. Bloomberg reported the sell-off wiped
$107.8-billion (U.S.) in value from the Chinese market alone. A dismal US
durable goods report released early this morning also added some fuel to
profit takers fire, and some felt the explosion from a suicide bomber near
the visiting US Vice President in Afghanistan, also shook some traders But
nickel inventories, stocked in LME warehouses, fell overnight by over 6%,
and traders of nickel held their cards close to their chests today and raised
the stakes. Will they raise, hold, or fold tomorrow? We will have to wait
to see, but today's 3 month nickel ended at$18.90/lb 
($41,650/tonne) (more)
Europe mulls: Is China the start of something
big? - " A massive sell-off in Chinese stocks overnight took its toll on
European equity markets on Tuesday, with investors wondering if this move
could signal the start of a broader correction." -article here
Some potential good news on the horizon
for nickel and stainless steel buyers. In a news release on Friday, FNX Mining
of Canada announced "Production plans call for a 42% increase in ore production
in 2007 to 900,000 tons producing 12.7 million pounds of payable nickel,....
Most of the increase in 2007 production comes from the growing contributions
from the nickel-rich ore at the (recently re-opened) Levack Mine."
- more
here
 Japan's Sumitomo Metal nickel demand in
China will grow 20% - "2006 nickel output has increased from 1.31 million
tons to 1.36 million tons. However, due to the large demand in Asia, plans
to increase sales this year by 10,000 tons to 1.37 million tons. Sumitomo
Metal ores : "China needs the impact of the Asian region will be driven by
consumption growth. "Sumitomo Metal mining official said : MB "China's demand
for nickel has grown by 20% compared with the past few years, and we expect
This data will be maintained in 2007." -translated article here
Not nickel or stainless related- Alcoa CEO received $10 million in 2006 - "Alcoa Inc. Chief Executive
Alain Belda, who led the aluminum maker through a year that saw revenues
and operating income reach record levels, was awarded $10 million in total
compensation in 2006, according to a company proxy statement filed Monday."
-article here
Metals - Base metals dip after strong
gains; Chinese stock mkt dive weighs - "Base metals prices were lower as
the market consolidated following recent strong gains and as the shock slide
in the Chinese stock market sparked worries over near-term demand growth."
-article here
 Quote from press release "Scotiabank Commodity
Price Index retreats in January, as investment funds take profits in base
metals" - "our expectations for a nickel 'super-cycle' also remain intact."
-more here
Nickel and stock price forecasts raised
by Desjardins - "While a major decline in the Chinese Stock Market on Tuesday
put pressure on metal prices given the country’s huge consumption, Beijing
is likely trying to slow down its economy, not halt it altogether." -article here(and
our list of all updated forecasts here)
Kremlin Inc. To Grab Billionaire's Nickel
Giant? - "Vladimir Potanin, chairman of nickel giant Norilsk Nickel, is
considered one of the last remaining billionaire oligarchs of Russian's Yeltsin
era -- but not for long. It looks as though the 45-year-old could soon find
himself plucked from power by the acquisitive hand of the Kremlin."
- article here
Indications at 7:55 am CST show nickel
selling down by $.09/lb . With former Fed chairman
Greenspan stating the obvious, and telling a Hong Kong conference, a US recession
was "possible", markets worldwide took a break from recent record gains,
and paused to determine if he was hinting at something, or if he should return
to enjoying his retirement in silence. Traders on the London Metal Exchange
were no different, and will be watching US indicators being released over
the next few days to determine just "how" possible a recession might be.
In the next few days, the US market will see the release on new and existing
home sales data , a revision in the 4th quarter of the GDP, and on Thursday
industrial production data and jobless claims will be released. Stay tuned.
Could be a bumpy little road this week.(more)(more)(more)
 Allegheny Ludlum Raw Materials
Update -pdf here
 Rand Merchant Bank Base Metal Reports
-pdf here
 Institute of Scrap Recycling
Industries, Inc. - Monday's Market Report -pdf here
Canada Commodity Price Update -pdf
here
Commodity prices weather equity market
slump - "Commodity prices were relatively immune from the large sell-off
in equity markets triggered by fears of overvaluation and tensions between
Iran and the US over the Islamic republic’s nuclear ambitions." -article here
Asian Stocks Rise to Record for Third
Day; Nikko Cordial Surges - "Asian stocks climbed to a record for a third
day, led by commodity-related companies after prices of metals and oil rose."
-article here
 OMG nickel business to boost Norilsk's
production: Morgan - "Norilsk Nickel's acquisition of the nickel business
of US specialty chemical company OM Group will help the Russian producer
to increase nickel production, a senior official told a meeting of analysts
in Florida Monday." -article here
 Scotiabank Commodity Price Index -pdf
here
Upturn in MEPS Global Steel Prices
as Major Exporters Raise Offers - "At the end of January, Nucor in the US
announced plans to put up strip mill transaction prices by $US20 per ton,
effective with March shipments, due to "escalating costs and strengthening
market conditions". Although we have noted some price improvement for hot
rolled coil, customers are resisting paying more for cold rolled and coated
steel. In general, although inventories at service centres are still high,
they are getting closer to the desired level. Import offers are minimal."
- MEPS
report here
The SLN pinned by the Northern province
with Népoui - "The Northern province put the SLN in residence to proceed
to a setting to the standards of its industrial facilities to Népoui.
Aimed by this procedure: the machine shop and, especially, the laundry of
Bernheim." -translated article here
Mining firm says extraction limit
changed - "A mining firm operating in Palawan said yesterday it can’t
afford to extract nickel beyond the limitations set by the government." -article here
 BHP Billiton to invest $5,2m for 50%
stake in Burundi nickel prospect - "The world's largest diversified miner,
BHP Billiton, has agreed to spend $5,2-million on exploration on Dwyka Diamonds'
Muremera nickel project, in Burundi, to earn a 50% stake in Danyland, Dwyka's
wholly-owned subsidiary in the central African state, the junior miner said
on Monday." -article
here
 Cuba's trade booms with China and Venezuela
- "Cuba's trade with China more than doubled in 2006 to nearly $1.8 billion,
the Chinese customs office said on Monday, as the Communist-run island
prioritized its new revolutionary partners China and Venezuela." -article
here
Oil and metals mark sharp upturn amid
Iran tensions - "Oil and metals continued to surge Monday amid heightened
global political tensions and mounting fears that demand for metals will
outstrip supply." -article here
 Joint-venture with New Zealand kicks
off nickel mining - "The Knight Piesald company from New Zealand has entered
into a 35 million USD joint venture with a local partner to dig into nickel
ores in the northern mountainous province of Son La." -more
here
Today's beginning nickel inventory - minus
228 tons = 3,282 tonnes (40.22% cancelled
warrants)
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Monday, Feb 26 Liberation Day in Kuwait |
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Today's official LME nickel closing
- cash - $20.00/lb - 3 month buyer - $18.63/lb. Following an optimistic ending
last week, in anticipation of the return of the Chinese to the world market,
traders entered today's trading with news that cancelled warrants had grown,
overshadowing a small gain in physical inventory. It was kind of like someone
pouring in a shot glass of water into a bucket, while someone else reserved
a coffee cup full. If there was a lot of water in the bucket, it wouldn't
matter much. But the water level in this particular bucket has been low for
a very long time and forecasters aren't calling for rain anytime soon. With
that in mind, trading of 3 month nickel ended the day at$18.73/lb ($41,300/tonne).(more)
Scrap and metals theft problem moving
from court houses to state legislative houses - articleshere
andhere andhere
The Year For Metals - "2006 was a great
year for metals though very few things (except uranium) went straight up.
Most commodities had larger price swings than the year on year numbers
(impressive though they are) indicate. We don’t expect a repeat of that
scenario for most metals in 2007. Price movements should be more muted than
last year, and more individual, based on how balanced each metal’s
supply-demand picture is." -article
here
(Comment - Got a lazy brother-in-law
living on your couch? Print this for him) - Mining companies offer big
money and benefits to cope with a dire shortage of workers - "Every time
Sue Gogilis starts her shift driving the company truck, she gives her steering
wheel a good rub with a few disinfectant wipes. Gogilis, 34, a mother of
two, was a dental assistant until last May. Now she drives a mammoth dump
truck at one of Rio Tinto's iron ore mines, hauling 230 tons of rock and
dirt across the scorching Pilbara region in Australia's outback." -article
here
 Brazil CVRD buys Australian AMCI coal
miner - "Brazil's CVRD, the world's biggest iron ore miner, said on Monday
that it bought Australia's AMCI Holdings in a deal worth a total of 835 million
Australian dollars ($739 million)." -article here
Norilsk sees 2006 net profit, dividend
up -report - "The world's top nickel and palladium producer Norilsk Nickel
may post a net profit made to International Financial Reporting Standards
of $5 billion for 2006, Norilsk was quoted as saying on Monday." -article
here
National Australia Bank - Base Metals
Monthly -pdf here
Indications at 8:00 am CST show nickel
is selling up by $.06/lb . Since Friday's trading
ended at a record high, any gain today, will be in new record territory.
The Chinese have returned to the market, and it will be interesting to see
if their inventories of nickel are at "must buy" levels yet, as some suspect
they are.(more)
Nickel reaches record high - "Nickel
hit a new record high Monday on worries about supplies, while aluminum rose
to its best level since last May and copper held firm on expectations of
stronger demand from Asia." -article here
Institute of Scrap Recycling Industries,
Inc.- Market Report -pdf here
Jyske Bank Commodities Morning Briefing
-pdf here
Sumitomo eyes $380-M nickel facility
in RP - "Japan's Sumitomo Metal Mining Co Ltd is planning to build a $380-million
nickel processing facility in Surigao, officials of the Department of Environment
and Natural Resources said." -article here
Profit of China's steel industry hits
historical high - "China's iron and steel industry reaped record profit of
169.95 billion yuan (22 billion U.S. dollars) in 2006, rocketing more than
30 percent year on year, figures from the China Iron and Steel Industry
Association show." -article here
Blow of inch for the Korean project
of the SMSP - "While exonerating the actors calédoniens nickel of
the tax applied to certain appreciations, the government comes to soften
considerably its position with respect to the project of the SMSP to build
a factory in South Korea. Explanations." -translated article here
Today's beginning nickel inventory - plus
18 tons = 3,510tonnes (46.32% cancelled
warrants)
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Saturday, Sunday Feb 24-25 |
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 Market amid bull run; focus on
mining issues - (from article) "The Securities and Exchange Commission,
in a move to protect the investors during a bull market and ensure the market's
upward momentum, is reportedly evaluating the disclosures of listed companies,
whose share prices have risen significantly, to determine if they are accurate
and factual." -more here
Information is power and for many companies
in the metals industry, that information comes with a fee attached.
Since this site is free, we only link to information/articles that has been
made available to the public, without fee, or submitted to this site for
publication to its readers. If you ever find one of our links leading to
an article that has suddenly become available only to paid subscribers, please
let us know, and we will remove it. We are also one of the few places offering
free information, that attempts to comply with the copyright laws. If we
see something that is subscriber based that we would like to make available
to our readers, if we wait long enough, someone, somewhere will usually copy
it and put it on a blog or a metals site. And while we won't 'borrow' copyrighted
material ourselves, we might link to it, when we find it posted somewhere
else. For instance, did you miss buying the report from Lehman Brothers January
2007 "Metals & Mining Monthly". If so, someone has posted it free(here).
That said, there was an interesting article published on a password protected
site that we found on an Australian blog today. Dated February 6, and
titled "Talk Of Nickel Substitution Can Be Dismissed" minesite.com interviews
Peter Johnston, who is now chief executive of the Australian
nickel producer, Minara Resources. Makes interesting reading and the article
can be found at the bottom of this page -(here) (for anyone considering switching to 201 stainless
steel, please read this)
We get a lot of questions about how
the LME operates, and it can be very confusing to explain. So we have added
two permanent links to the bottom of this page to help answer some of the
more common questions. We have added "The ABC’s of a Metals Exchange"
a presentation given in 2001 by James Eggins of WMC -pdf here and "A Guide to LME Data Trading of LME futures
and options contracts" -pdf
here and a common question from non-traders - what's the difference between
selling short and selling long? - courtesy XpressTrade - "For those willing
to incur the risk, you can profit from trading LME Metal Futures the same
way as any other investment - by buying low and selling high. One difference
with futures, however, is that it's just as common to sell "short" - to sell
first, in other words - and then buy back later as it is to buy first, or
"go long." With futures trading, if you think prices are going up, you simply
establish a "long" (buy) position. If you think prices are going down, you
initiate a "short" (sell) position."
Palace reverses DENR on Palawan nickel
mines - "Malacañang has given the Platinum Group Metals Corp. (PGMC)
the green light to resume its mining operations in Palawan six months after
it was stopped by the Department of Environment and Natural Resources." -Article here
Blurb from a Dow Jones Newswire story on
Friday - " Traders said that although profit-taking could create a near-term
pullback in nickel prices, the supply-demand balance means further rises
are likely next week."
Scrap Magazine Market Week in Review
-pdf here
 Indonesian prosecutors reject Newmont
defence case - "Indonesian prosecutors told a court on Friday in a high-profile
pollution trial that the local unit of Newmont Mining Corp. dumped mining
tailings in the sea without proper documents." -article here
 Arcelor, Mittal Sign Deals With Senegal
- "Arcelor SA and Mittal Steel Co. NV, which have agreed on a deal to form
the world's largest steelmaker, said Friday they have signed agreements worth
$2.2 billion (euro1.68 billion) with the government of Senegal to mine iron
ore in the West African nation." -article
here andanother article
 Got my copy of "Mine Your Own Business"
last week. If you don't have a copy, and are interested in the mining industry,
you need to see it. It is quite an eye-opener. Here area few links for you.
First, the official movie site, with movie trailer, and how to order.
(Official site
here) Second a report by another video journalist about a confrontation
between NGO's and the director -video here
and a debate between the director and a NGO spokesman on Fox -here and a report on Foxhere
Mining bill likely to be passed next
month - "The hopes of mining firms for major changes to the draft mining
law appear to have been dashed after the House of Representatives decided
to keep a number of controversial chapter unchanged." -article here
 Xstrata's Sudbury office staff OK strike
mandate - "Unionized office, technical and clerical staff at Xstrata Plc's
nickel operations in Sudbury, Ontario, have voted in favor of giving their
union a mandate to strike should it reject a new labor contract offer from
the company." -article here
Mining company profit soars on Cuba nickel
output - "Sherritt International Corp., a miner of nickel in Cuba, said
fourth-quarter profit rose more than eightfold to a record because of surging
metals prices." -article
here
Not only gold – base metals and
uranium surging too - "What a week for metals commodity investors! This week
has seen a big upturn in all the major traded commodities – even copper
has pulled back dramatically from the recent slump which looks to have been
overdone, while new records have been set for nickel, lead and uranium. The
effect on commodity mining stocks has also been dramatic with gains on major
exchange indexes again being commodity-led. Precious metals too, of course,
have been strong with the gold price breaking through $680 again and silver
through $14.50. Where will it all end?" -article
here
Countering terror in Poso - this pdf
newsletter contains an article (on page 7) about the terrorist movement
on Sulawesi, Indonesia (where many of the nations nickel mines are) -pdf
here
PRRM Conrado Benitez Institute for
Sustainability has a report on their website from 2005 - while old, it does
provide some good basic information about mining in the Philippines -pdf here
or you can read it onlinehere
InfoMine's Jack Caldwell has
a personal blog called 'I Think Mining' here
and InfoMine has a good page on "Mining Ethics"here
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Friday, Feb 23 Republic Day in Guyana, Fatherland Defender
Day in Russia |
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Today's official closing LME nickel
prices - cash - $19.60/lb - 3 month buyer - $18.09/lb. While closing prices
are determined around noon London time, this left the afternoon for movement
either way. And move it did! Nearly across the board, commodities got a lot
of fund interest, and investment, today. Nickel was no exception, except
that it reached a new all time record high. 3 month nickel ended the day
and week at $18.51/lb
($40,800/tonne). Next week should prove to be interesting, with eyes turned
to the Far East, to see when China will start buying, and how much they purchase.
We wish you all a safe and relaxing weekend.(more)(more)
Sherritt sees growth in Cuba - "Sherritt
International Corp. (TSX: S) said Friday it expects growth to come this year
through expansion of its power and metals mining projects in Cuba as well
as coal projects in Canada, after doubling its full year earnings." -article
here and Reuters "Sherritt profit soars on commodity prices, output"article here
 CVRD Inco to continue JV to explore Ni
properties - "Nickel miner CVRD Inco plans to continue a deal to explore
for nickel sulfides at Australian Mirabela Nickel's Santa Rita and Palestina
areas in Brazil's Bahia state, Mirabela said in a statement." -article here
Philippines says BHP to invest up
to $1.5 bln - "The world's biggest miner, BHP Billiton, may invest up to
$1.5 billion in a nickel project in the Philippines, the government said
on Friday as it tries to revive hopes of a take-off in its metals sector."
-article here
Stainless steel prices hurting biofuels?
- Biofuels Summit Set For Feb. 28 in Des Moines - "On Wednesday Feb. 28 in
Des Moines at the Polk County Convention Complex the Iowa Renewable Fuels
Association will hold a Renewable Fuels Summit. "This meeting going to cover
where the industry is at and where we think it is going," says Monte Shaw,
executive director of the IRFA. "We have a lot of exciting information to
present." -article here
 Jaguar Nickel to move from mining
to merchant banking, mesh with new board - "Jaguar Nickel Inc. (TSX:JNI)
will shift its focus from mineral exploration to merchant banking after electing
a board with a background in the investments industry, the company said Friday."
-article here
 Making Money With Metals - "Once an
investing idea becomes popular, Wall Street tends to jump on the bandwagon
to give the public new methods of access to the latest fad. An explosion
of new products follows, with financial institutions trying to cash in on
all of the interest in the hot investment while it lasts." -article here
Nickel closest thing to a true ‘war
metal’ - "Sudbury was definitely going to be “nuked” by the
Russians. At least that was our conclusion back in 1976 when I worked at
CVRD Inco’s Clarabell Mill for a year." -article here
The Wall Street Journal had an interesting
article yesterday about mining called "Even Now, Big Miners Dig Away" - if
you didn't see it, Mann Financial has a copy attched to the bottom of their
daily report (found in our left column) -link
here
Indications at 8:00 am CST show
nickel trading higher this morning by $.30/lb . With
much of China returning to work next week, it appears the market is betting
they will be in a buying mood. There were some indications in the early part
of the month that some in the Chinese market were holding off buying nickel
until after the holidays, in the hopes the price would go down. That has
proven to be a bad gamble so far, with only 1/2 day's trading left and prices
up. If Chinese buyers did in fact let their inventories slip, then betting
they will need to buy next week, appears to be a safe bet.
 Damstahl Stainless Steel Bi-Monthly Report
-pdf here
New commodity bull run tipped as metals
advance - "Industrial metals gained ground in London and New York Thursday
as demand increased amid fears of supply shortfalls, giving rise to suggestions
that another commodity rally is around the corner." -article here
Prices to put commodities in India budget
spotlight - "With newspapers splashing food prices across front pages, India
may seek to tackle rising inflation in next week's budget by further cutting
duties on edible oils and extending a window for duty-free wheat imports."
-article here
 POSCO to raise stainless steel prices
- "POSCO Co Ltd, the world No 3 steel maker, will raise prices of stainless
steel products by 240,000 won ($255.7) per tonne, or some 6 percent to reflect
soaring nickel prices, a company official said on Friday." -article here
Miners in forest areas to be required
to pay up-front compensation - "In the latest effort to improve protection
of the country's rain forests, the government will require mining firms operating
in both plantation and protected forests to make an up-front compensation
payment for the destruction of forest cover and to cover any environmental
damage their activities might cause." -article here and more in deptharticle here
BHP Billiton May Invest Up To $1.5
Bln In Philippine Mining - "Mining company BHP Billiton Ltd. (BHP) is expected
to invest $800 million to $1.5 billion in Philippine mining, including a
nickel processing plant, environment secretary Angelo Reyes told reporters
Friday." -article here (more)
Acesita sees positive stainless steel
scenario in Q1 - "Brazilian specialty steel producer Acesita is optimistic
about the stainless steel market scenario in the first quarter of 2007, following
"quite" favorable market conditions last year, the company said." -article here and "Brazilian stainless steel
consumption rose 18.8% last year to 268,072t compared to 225,597t in 2005,
a spokesperson with the country's stainless steel development association
Núcleo Inox told BNamericas." -article here
Rio May Spend $2 Billion on Indonesian
Nickel Project - "Rio Tinto Group, the world's third- largest mining company,
may invest $2 billion, double an earlier estimate, developing its first nickel
project in Indonesia to meet rising demand driven by steelmakers in China."
-article here andanother article here
Sherritt Reports Record Earnings in 2006
-report
here
article here
 Kabanga under the microscope -
"Toronto’s XSTRATA NICKEL and BARRICK GOLD have begun a prefeasibility
study of their joint Kabanga nickel project. The property is located in northwest
Tanzania, south of Lake Victoria and near the borders with Burundi and Rwanda."
-article here
Iron ore reserves must be preserved - "Sajjan
Jindal, vice-chairman and managing director, JWS Steels, on Thursday said
that according to a study, going by the present rate of iron ore exports,
reserves of the ore would be exhausted in nineteen to twenty years even if
exports were stopped immediately." -article
here
Today's beginning nickel inventory - plus
42 tons = 3,492tonnes (34.71% cancelled
warrants)
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Thursday, Feb 22 People's Power Day in the Philippines, Unity
Day in Syria, Independence Day in St Lucia, and GW's birthday in the US -
no, George Washington's |
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Today's official LME nickel closing
- cash - $19.32/lb - 3 month buyer - $17.96/lb. With no clear direction,
some traders chose to take their profits. The lingering question of falling
inventories, kept the retreat of the day in check. 3 month nickel ended the
day at $17.64/lb
($38,900/tonne) (or $1.21/troy ounce).
(more)
Steel, coal, base metal prices down but
not out: S&P - "Ratings Agency Standard & Poor's said Thursday that
steel prices, although on the decline, are still high by historical standards,
while coal prices are likely to stay at a level beneficial to credit quality,
except for coal mined in the Central Appalachian region, where costs are
high and operating conditions difficult." -article here if you are interested in reading the
S&P report "Metals & Mining: Prices: Down, But Not Out" - you can
read thereport here (you must register, but it's fast and
free)
 In case you missed it last weekend,
we provide some research on Skye Resources and the Fenix Nickel project in
Guatemala (what the NGO's aren't telling you)here
Indications at 7:45 am CST, show nickel
selling down by $.07/lb. It's a stand off so far today, with the profit takers
being held in check by another large loss in LME nickel inventories. If
it breaks today, which direction it takes, and to what degree, has yet to
be determined.(more) Extra - In our continued mission
to bring you first rate and timely information worthy of the expense we charge
for this service, we asked the Assistant Controller and Financial Analyst
from Universal Stainless of Aurora, Colorado, for an in depth forecast of
future worldwide nickel prices. Based on his years of training and expertise
in 'econometrics', Burns Searfoss gave us this annual nickel price forecast
for 2007. - "The price of nickel is going up, unless it goes down, otherwise
it will stay the same"......We just hope you are as glad you didn't have
to pay for this forecast, as we are that we didn't pay for it either. (note
- if you are curious, Mr Searfoss did want to remind us that at $19.36/lb
yesterday for the official cash closing, nickel is worth $1.33/troy ounce.
We thank him for allowing us to use his forecast and his "precious metals"
update.)
The Year of the Pig and the Coming Trip
to the Slaughterhouse - "While the Chinese celebrate the year of the pig,
the “Don’t Worry, Be Happy” crowd on Wall Street are fattening
up their piglets with “Goldilocks “economic forecasts despite storm
clouds on the horizon. TOUT-TV (CNBC-TV) continues to do its part in getting
the piglets ready for the trip to the slaughterhouse even though the announced
new FOX Business Channel may become reality in time to save some from becoming
bacon." -opinion
here
Norilsk Nickel Gets 5-Yr $450M Revolving
Credit Facility - "The loan was arranged by units of Barclays PLC , ING Groep
and Societe Generale SA." -article here
Goro Nickel: Mapou and Wamytan show
the State of ecological complicity of disaster - "Raphaël Mapou and
Rock Wamytan showed the State to be the “active accomplice of an ecological
disaster” concerning the project Goro Nickel, that Domenica Voynet described
as “cynical caricature of violation of the right”." -translated article here
Indonesia agrees with Rio Tinto on
mine contract - "Indonesia hopes to sign a contract with mining giant Rio
Tinto Plc to develop an around $2 billion nickel project around the middle
of March, the head of the state investment agency said on Thursday." -article here andanother yet Rio denies an agreement has been reached
-article here
Dow Jones Newswire blurb - "Stronger
than expected economic growth in Japan and Europe drives stainless steel
production and strong nickel demand, says Bart Melek of BMO."
Crude Steel Output to Reach 460m Tons
This Year - "China expects to produce approximately 460 million tons of crude
steel this year, a steady growth of 10 percent over last year, according
to the National Development and Reform Commission." -article
here andanother
Producers, Consumers Alike Feel The
Nickel Price Bite - "Record high nickel prices are starting to become problematic
for producers and consumers alike, with the former facing credit issues and
the latter being priced out of the market, analysts say." -article here
World Bureau of Metal Statistics
report issued Wednesday - Global nickel market experienced a deficit of 50,000
tons in 2006. 2006 mine production - increased 4.5% over 2005 to 1.409 million
tons. Refined production - up 2.4% over 2005 with increases in output from
Indonesia and Canada offsetting losses in Oceania. Demand for nickel - 78,000
tons higher than 2005.
Today's beginning nickel inventory - minus
480 tons = 3,450 tonnes (45.74% cancelled
warrants)
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Wednesday, Feb 21 Ash Wednesday |
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Today's official nickel closing prices
- cash - $19.36/lb - 3 month buyer - $17.91/lb. The reported LME nickel inventory
loss spooked the market again today, driving early morning prices to a new
record high. Having reached this new peak, profit taking forced the price
into a short retreat. It then spent the rest of the day bouncing back and
forth, never quite reaching where it had started the day. It ended the day
at $17.92/lb
($39,500/tonne).
(more)(more)
China’s Consumption Doesn’t Ensure
a Continued Commodity Bull Market - "The market has knocked the stuffing
out of many commodities of late." -more
here
EU Slaps Fine Against 5 Elevator Makers
- "European Union regulators slapped their largest price-fixing fine ever
- euro992 million (US$1.3 billion) - on five elevator makers Wednesday for
operating cartels for the installation and maintenance of lifts and escalators
in Germany, Belgium, Luxembourg and the Netherlands."(stainless related)
-article
here
 Ramu Nico begins to construct site facilities
- "A FOLLOW-UP inspection of the Basamuk campsite showed that China-based
Ramu Nico Management Ltd and contractor ENFI PNG Ltd have already started
putting up workers’ facilities as imposed by the Labour Department."
-article
here
Indonesian Mining law must provide
certainty and equality - "Major mining companies versus junior mining companies
-- there is a difference of opinion on how the current Indonesian mining
law should progress, but both agree there needs to be two separate laws:
one to allow long-life large-scale projects to proceed and one law for smaller
projects." -more here
Quote from Reuters report - ""Nickel is
a very simple story -- all the disruptions to new projects have delayed a
fresh wave of production," Gerard Burg, minerals and energy economist at
National Australia Bank said. * "Demand for stainless steel remains strong
and if stock levels continue to fall, there is potential for even higher
prices. We are forecasting $35,000 a tonne for the year and there is every
possibility that we are being pessimistic."
At 7:55 am CST, indications were nickel
was selling down by $.20/lb . LME nickel earlier
today hit a new record high at $18.25/lb, the first time 3 month nickel has
ever traded over $40,000/tonne. But profit takers decided to cash in after
this new historical milestone was reached. With the rather dramatic drop
in nickel inventories overnight, it is doubtful we will see any bears come
out of hibernation anytime soon. (except for those who have been forecasting
for 3 years now that nickel is going to fall. Someday, my friends - they
will finally be able to say "we told you so". But not today.)(more)
 Reuters Metal Weekly -pdf here
Quote from Asia Pulse Pte Ltd in Hoover's
report - "The Indonesian Resources Company (IRC) has finished a feasibility
study on merger of PT Aneka Tambang, which operates nickel, gold, and silver
mines and coal mining company PT Tambang Batubara Bukit Asam and tin mining
company PT Timah."
 Nickel/copper prices fluctuate - "The
price of nickel and copper have undergone great changes this year compared
to last year, BCL mine's General Manager Montwedi Mphathi has revealed. "
-article
here
SL scrap metal export rules hit Indian
units - "Sri Lanka's exports of scrap copper and other metals to India have
been hit by wider security moves taken by the island nation as it tries to
stop shipments of material that may be used in weapons." -more here
 Anglo American profit up 46 pct, to return
$3 bln - "Anglo American Plc, the world's third-largest miner, said on Wednesday
it would return $3 billion to investors as it posted a 46 percent rise in
annual net profit, below the average forecast." -more here
Followup - Russia imposes 3-year
duties on European Union stainless steel - extended - "Russia, the world's
fourth-largest steel producer, will impose three-year duties on stainless
steel imports from the European Union to protect domestic producers from
what it called dumping." -article here
Specialty Metals Industry Group Releases
Eleven-Month Market Data -pdf here
or "Global crude steel production up 13.5% on January 2006: IISI" -Platts article here
Kanak Group Warns of Action over
New Caledonia Nickel Project - "A New Caledonian Kanak group has warned of
tough action against the territory's multi-billion dollar Goro Nickel project."
-article here
Today's beginning nickel inventory - minus
468 tons = 3,930 tonnes (47.49% cancelled
warrants)
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Tuesday, Feb 20 Carnival / Mardi Gras in much of South
and Central America |
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Today's official LME nickel closing
prices - cash - $19.44/lb - 3 month buyer - $18.05/lb. So, who were the idiots
that said yesterday they saw very little chance of major movement in the
nickel market this week? Oh yeah, that would have been us. If you have ever
wondered what a bull on steroids acts like, just watch this nickel market
closely. Today's market headed up shortly after the bell, and never looked
back. Nickel closed at $18.05/lb ($39,800/tonne)
(more)(more) Amazing what a 36 ton inventory decrease, a 2
point cancellation rate increase, and the return of the Yanks to the market
will make, isn't it? Today's extra - And, all kidding
aside(well not entirely), we may have actually figured out a seedier
side to why the Americans were buying today. Making more money is what trading
commodities is all about. And while traders want to make as much money as
they possibly can everyday, today might have had just a little extra sense
of urgency to it, after this report hit the American press -article
here
Metals Insider - Week in Review
-here
Indications at 7:45 am CST were nickel
was selling up by $.50/lb . And yes, that would be
a new record high. Inventories of nickel stocked in LME warehouses slipped
last night, and cancelled warrants (which represent warehouse stocks sold
and due for delivery) increased again (see our first entry). With
that kind of news, markets took off.(more) (We were asked yesterday if we knew what the
all-time record high percentile in cancelled warrants for nickel was. We
do not, but did find where in August of last year, it went over 60%.)
Australian nickel miner Mincor's H1
profit quadruples to $41 mil - "Australian nickel miner Mincor Resources
posted consolidated pre-tax profit of A$52.6 million ($41.4 million) in the
first half period ended December 31, 2006, quadrupling year on year, the
company said on Tuesday." -more here
The Meek May Inherit the Earth, but
not the Mineral Rights - "The Asia Pacific Economic Cooperation Group considers
the world’s largest free trade pact" -more here
Commodity investment seen at $120-150
bln by '08 - "Assets under management in commodity products may reach $120-150
billion by end-2008, according to a recent survey of 240 institutional investors
conducted by Barclays Capital." -article here
Behre Dolbear Global Mining News -pdf here
Canada EDC Commodity Price Update -pdf
here
Mining law must provide certainty and
equality - " Major mining companies versus junior mining companies -- there
is a difference of opinion on how the current Indonesian mining law should
progress, but both agree there needs to be two separate laws: one to allow
long-life large-scale projects to proceed and one law for smaller projects."
-article here
Russia Slaps European Steel Producers
with 3 Year Anti-Dumping Duty - "The Russian government has decided to impose
a three-year anti-dumping duty of 840 per ton of steel with nickel content
of 2.5 percent or higher imported from the European Union." -article
here
Today's beginning nickel inventory - minus
36 tons = 4,398 tonnes (52.80% cancelled
warrants)
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Monday, Feb 19 Heritage Day in Canada, Democracy Day
in Nepal, and President's Day in the US |
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Today's LME nickel official closing
prices - cash - $18.79/lb - 3 month buyer - $17.60/lb. We don't expect much
to happen with nickel on the London Metal Exchange this week, with China
all but shut down. Unless something newsworthy happens that affects supply,
the markets will be watching LME inventory closely. There is always the outside
chance that traders could start playing "Blind Mans Bluff" with each other,
and force some movement in the market, but any major movement this week,
is doubtful. Today, traders held their cards to their chest, and nickel ended
the day at $17.55/lb
($38,700/tonne)(more)
Blurb from Interfax - MMC Norilsk Nickel
produced 244,000 tonnes of nickel in 2006, compared with 243,000 tonnes in
2005, the Arctic mining and smelting giant said in a press release.
Mining companies looking for takeovers
find prospects growing thin - "Mining companies, flush with cash from record
metal prices, may be on the hunt for Canadian acquisitions to build scale
or add new development projects, but the list of high-grade prospects is
beginning to look thin." -article
here
Institutional commodity investors in
for the long haul - Barclays Capital - "Institutional interest in commodities
is here to stay for the long haul, according to a recent survey of 240
institutional investors conducted by Barclays Capital. Interest in commodities
remains intact even though the nature of investment demand has changed, with
institutional investors looking for more active, more selective investment
products." -article here
Rand Merchant Bank Weekly Base metals
Report -pdf here
At 7:50 am CST, indications show nickel
is trading down by $.15/lb in quiet trading.
Metals - Base metals markets quiet
on Chinese, US holiday; lead hits all time high - "Base metals markets were
quiet because of the Lunar New Year holiday in China and the Presidents Day
holiday in the US, although most metals remained steady, underpinned by supply
side issues." -article here
Sumitomo Metal to boost nickel production
by 2013 - "Major Japanese metals smelter Sumitomo Metal Mining Co. said on
Monday it aims to nearly double its nickel output by 2013 to catch up with
global majors such as Norilsk , the world's top producer." -more
here
Japan's Sumitomo Mining to build new nickel
laterite plant in '09 - "Japanese nonferrous metal producer Sumitomo Metal
Mining plans to build a new plant that will process laterite with nickel
and cobalt content starting in 2009, to be ready for operation in 2012, the
company said on Monday." -article here
Funds in commodity markets are 'here
to stay': Standard - "While the various fund players in the commodity markets
all have different rationales and approaches, the funds are "here to stay,"
said Michael Skinner of Standard Bank base metals and sales. Speaking at
the Platts Aluminum Symposium in Scottsdale, Arizona, in late January, Skinner
said as a result of this investment, commodities in general would remain
"stronger for longer." -article
here
Higher Metals Prices Ahead - "If there is
any consensus among metals analysts it is that nickel and zinc should remain
strong due to supply shortage, aluminium should falter due to excess Chinese
alumina production, and copper should be unspectacular. Consensus also leans
strongly to the bullish side for gold and silver." -article here
Trout spawn mine battle - "Deep in the rugged
hills of Michigan's Upper Peninsula, a meandering river harbors giant fish
that once thrived throughout Lake Superior and its tributaries." -article here
Fox signs nickel, copper off-take agreement
with Jinchuan - "Leederville-based mining company Fox Resources Ltd has signed
an off-take agreement with China's Jinchuan Group Ltd, allowing Fox to sell
a bulk concentrate of both nickel and copper." -article here
Third Country Imports Push EU Domestic
Steel Prices Higher - "Underlying demand for strip products remains healthy
in most EU countries. Several producers are already talking of higher prices
in the second quarter. Official announcements by some major players have
still to be made. Certainly, import prices for third country flat products
are now above those quoted at the beginning of the year." -more
here
Chinese state companies will follow a different
path - "At present, China is the largest consumer of stainless steel in the
world. Moreover, it uses it more, than the USA and Japan all together, which
take the second place in consumption after China. It is expected, that in
2006 import of stainless steel into the country will make up 2,5 mln. t,
nd export will achieve 500 thous." -more
here
Coking Coal Production Costs May Decline
This Year, AME Says - "The cost of producing coking coal, a key raw material
for steelmaking, may drop for the first time in five years because of falling
royalty payments and increased operating efficiency, according to AME Mineral
Economics." -article here
Today's beginning nickel inventory - plus
282 tons = 4,434 tonnes (50.88% cancelled
warrants)
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Weekend Review, Feb 17 & 18 |
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"What we discovered,
no matter where our research led us, was it is hard to step into the middle
of a mud fight, without getting dirty." - We tackle the Fenix project with
our two cents worth. -here
Xstrata continues talks with Sudbury
office staff - "Labor talks between Xstrata Plc (XTA.L: Quote, Profile ,
Research) and the union representing 215 office, technical and clerical staff
at its nickel operations in Sudbury, Ontario, are focused on nonmonetary
issues and contract language, the union said on Friday." -article here
Xstrata outlines world class nickel
sulphide deposit in Tanzania - "Xstrata Nickel will invest a further $95
million and commence a prefeasibility study to advance the Kabanga nickel
project located in western Tanzania. An update to the preliminary resource
estimate has also been announced for the project, a 50/50 owned joint venture
between Barrick Gold and Xstrata Nickel, operated by Xstrata through a
subsidiary." -article
here
Macquarie Research:
China Commodities Weekly - "SHFE copper prices made strong gains last week
helped by the surge in LME prices and reports of the strong recovery in Chinese
copper imports in January. The SHFE copper front month contract climbed to
Rmb55,610/t (US$7,129/t) at market close on Friday, a huge jump of Rmb2,240/t
(US$287/t), or 4.2% from the previous week’s close." -article
here
China RoHS demands more from buyers
- "Electronics buyers who think their companies' products will automatically
comply with China's new Restriction of Hazardous Substances law because their
products already comply with the European Union's RoHS legislation are in
for a big surprise." -article
here
How about a little nostalgia? Here is a
old clip from the US government archives on how steel is made -quicktime video here
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Friday, Feb 16 Happy Chinese New Year to our Asian readers
- we hope you enjoy your two week holiday! Peace and prosperity. And
to our Central/South American visitors who may be taking an extended weekend
- a Happy Carnival / Mardi Gras for Tuesday! |
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Today's official LME nickel closing
prices - cash - $18.91/lb - 3 month buyer - $17.67/lb. Market was quiet in
afternoon trading, with nickel ending the trading day and week at$17.65/lb ($38,900/tonne).(more) Hope you all have a peaceful and safe weekend!
Cancer-heavy New Caledonia Launches
Asbestos Study - "A major investigation is underway in New Caledonia to find
out where asbestos, blamed for an unusually high rate of lung cancer on the
French Pacific island territory, occurs in the environment." -article
here (comment - is there anything that nickel mines are not
blamed for? If those who are performing this study, would prefer not to spend
the next year of their life in a tropical paradise(uh-hum), albeit allegedly
plagued by asbestos poisoning, here is the finding of a lung cancer study
that has already been performed in Sudbury, Canada - "Based on the total
number of deaths, the principal lung cancer excess in the cohort was for
miners and surface workers. The attribution of the increased risk to nickel
is questionable, given the evidence of a similar risk among other hard-rock
miners with no exposure to nickel"study
here On the same page, you will find a study on asbestos and mining.
We just hope they don't get a bad case of sunburn while they are trying to
save mankind. That causes skin cancer, we hear!!)
China Reports 3.78Mt of Nickel Ore Imports
Last Year - "China imported 3.78 million tonnes of nickel ore last year,a 6.8-fold increase compared with the previous year, according to
statistics released by the General Administration of Customs." -article
here
At 7:50 am CST, indications were nickel
was selling down by $.13/lb . Tin and lead
are setting new records today.(more)
and(more) Trading shows no clear direction, so far today,
and nickel could spike to a new record before days end, as easily as it could
fall further. With China markets closed for the next two weeks, all eyes
will remain on LME inventory levels.
Follow-up to a headline we posted yesterday,
the story was finally posted - Changes In Nickel Mining Herald Permanent
Price Rise - "Fundamental changes in nickel mining will mean permanently
higher production costs, and pose more risks for slower ramp up, cost blowouts
and environmental concerns that will keep nickel prices at high levels in
the future, analysts say." -
article here
Boost for Corrosion Resistant Materials
Market - "The market for corrosion resistant materials is now capacity limited.
New applications and growth in demand in Asia are causing shortages and extended
delivery times for stainless steel, FRP, and other corrosion resistant materials
and fabrications. This is the conclusion reached in the online, “World
Market for Your Products”, published by the McIlvaine Company." -article
here
Commodities super-cycle not over, upward
bias intact: Cr Suisse - "The commodities super-cycle is not over and
over the medium term commodities are likely to provide higher returns than
the consensus forecast, Credit Suisse said Friday."
- article here
China again tightens grip on credit - "China
tightened its grip on credit yet again Friday in an attempt to prevent a
torrent of cash generated by record trade surpluses from fueling an unwanted
rebound in capital spending." -article here
 BMO Nesbitt Burns "The Goods - a Report on
Commodities" -pdf here
China’s stainless output up by 68%
in 2006 - "According to the Stainless Steel Council of China Special Steel
Enterprises Association, the stainless output in China has soared to 5.3
million tons in 2006, up by 68 percent." -more here
 Taiwan stainless to rise by $180~200/mt
in March - "In February, Asian/Chinese stainless steel has been hiked by
US$50 to 200 per ton in line with higher nickel cost." -article here
Today's beginning nickel inventory - plus
162 tons = 4,152 tonnes ( 52.86% cancelled
warrants)
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Thursday, Feb 15 |
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Today's official LME nickel closing - cash
- $18.87/lb - 3 month buyer - $17.55/lb. Today was pretty much a repeat of
yesterday, with inventories looking gloomy, and world economies sending positive
signals. Nickel trading hit a new all time record high at $17.92/lb (3
month) and ended the day at that point -$17.92/lb ($39,500/tonne).
Tin also hit a new all time record high on supply disruption concerns from
Indonesia and the government seizure of the Glencore Vinto smelter in Bolivia,
with aluminum coming in as the day's only LME loser.(more) and(another)
Castillian Assumes Operator-Ship of the Mangabal
Project in Brazil From Xstrata and Initiates US$2.5 Million Exploration Program
-more here
Courtesy and copyright Dow Jones -
"Fundamental changes in nickel mining will mean permanently higher production
costs, and pose more risks for slower ramp up, cost blowouts and environmental
concerns that will keep nickel prices at high levels in the future, analysts
say."
 We get a lot of visitors looking for nickel
forecasts. While we follow these on the daily news, they can be hard to find
later. We have added the January Reuters analysts survey tothis
page and added a permanent link in the right column.
Indications show today has started much
like yesterday, with the price of nickel at 7:45 am CST selling up by $.84/lb.(more)
 Here is a more complete monthly commentary by
GFMS from Monday -here
Blurbs from China - "The average wholesale price
of steel products in China, the world's largest user of the metal, rose 5.4
percent in January from a year earlier, the People's Bank of China said."
- "China's State Information Center report is forecasting China's first quarter
gross domestic product (GDP) to grow by 10.2%" - "Baosteel Group Corp and
rival Wuhan Iron & Steel Group are seeking iron ore projects in Australia
to meet rising demand." -
China's Jilin Nickel wants more partners
in Nonoc plan - "Jilin Nickel Group, China's second-largest producer of the
metal, would need to find more partners if it were to invest in the Nonoc
project in the Philippines, a company official said on Thursday." -article
here
Nickel - Current Wochenkerzenchart (log)
since November 2003 (1 candle = 1 week)(translated article here)
Rusina Mining Announces Nickel Find In
Acoje - Phillipines Project - "A maiden JORC resource of 33 million tonnes
of nickel laterite grading 0.95% nickel and 0.07% cobalt has been announced
for the Acoje project in the Philippines being developed by Australia's Rusina
Mining Limited" -more here
As commodities lose luster, S&P very
positive on nickel and reasonably so on copper - "While there is no question
that “commodity prices have lost their luster,” Standard &
Poor’s analysts suggested Wednesday that “the average price curves
for the next five years should be meaningfully higher than they were for
the prior five years ending 2004.” -article
here
 Albidon eyes trial startup at Zambia nickel
mine - "Albidon Zambia on Wednesday signed a power supply agreement with
Zambian state utility Zesco, which will enable the firm to start trial operations
at its nickel mine, a senior industry official said on Wednesday." -article
here
A green charter for Koniambo - "The northern
Province and Koniambo Nickel SAS signed, yesterday morning, an environmental
charter to limit the environmental impacts of the project of the factory
of North. A committee was created to take care of its application."
- translated article here
Two articles, same topic - "End of the affair
for commodities" -(article here) and "Investors cut exposure to commodities"
-(article here)
EU alloy surcharges to hit new highs in
March - "Most of European stainless steel mills including Ugine & Alz,
Outokumpu, and ThyssenKrupp have announced to increase its stainless steel
product price to smooth over their cost pressure from higher nickel price."
-article here
Xstrata Nickel Commits US$95 Million, Updates
Resource Estimate and Commences Pre-Feasibility Study at Kabanga Joint Venture
Nickel Project, Tanzania -press
release here
Today's beginning nickel inventory - plus
66 tons = 3,990 tonnes ( 52.48% cancelled
warrants)
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Wednesday, Feb 14 - Happy Valentine's Day |
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Today's official LME nickel closing
prices - cash - $18.27/lb ($40,275/tonne) - 3 month buyer - $16.92/lb.
At first glance this morning, it appeared LME nickel inventories gained for
a 7th straight day. But when we pulled up the cancelled warrants figure,
our first reaction was "censored" (sorry miners - we buy
stainless). The market apparently had the same reaction. At day's close,
nickel on the London Metal Exchange ended at$17.00/lb ($37,475/tonne).(more) (A look back - one year ago today,
trading ended the day at $6.95/lb, with most analysts still forecasting 2006
averages to be in the $4.50 - $7.00/lb range. It actually averaged $11.01/lb.
Inventories were at 36,186 tonnes, and after peaking on February 2, 2006,
at 37,218 tonnes, would spend the remainder of 2006 in a slow gradual slide,
most notably from June1 thru July 1, when nickel inventories stored in LME
warehouses fell by 43%. Inco and Falconbridge had already extended their
offer to merge twice, and Xstrata, Teck Cominco, Phelps Dodge, and CVRD had
yet to make their move.)
 Mine Mill, Steel families expected
to buy big ticket items - "Greater Sudbury’s economy is expected to
benefit from a huge influx of cash over the next few weeks when the men and
women working for Xstrata and CVRD Inco cash their bonus cheques." -article here
Courtesy /Copyright Dow Jones Newswire -
"The hike in London Metal Exchange nickel canceled warrants highlights the
likelihood of further declines in inventories in the coming days, says Calyon
analyst Michael Widmer. "This is highly significant, because stocks are very
low at the moment and the nickel market remains tight," he notes. But despite
current upside momentum for prices in the short-term, the physical market
will be rebalanced into a surplus in 07, implying prices will fall later
in the year."
DJ LME Nickel Inventories Key To Future
Price Direction - "The market will continue to keep a close watch on nickel
stock movements in determining future price direction, said traders, as
critically low inventories and signs of further tightening in the near-term
boosted London Metal Exchange nickel prices to an over one-week high Wednesday."
-article here
Chinese giant Jinchuan eyes tie-up with
Lucio Tan firm - "CHINA’S largest producer of nickel and cobalt, Jinchuan
Group Ltd., is doing a due-diligence study on a nickel mine site of tobacco
tycoon Lucio Tan's MacroAsia Corp. in Palawan Island, MacroAsia told the
stock exchange Tuesday." -article here
Fix Ramu mess’ - "FOREIGN Affairs
and Trade Minister Paul Tiensten yesterday appealed to the Government and
Ramu nickel mine’s Chinese operators to discuss how problems uncovered
at the mine could be addressed." -article
here
Indications at 8:00 am CST show nickel
selling up by $.82/lb . Today's closing, which we
post at 12:30 pm CST, will give today's "official cash closing" at over the
$40,000/tonne mark. If you are wondering why the market is so high today,
look at our first daily entry. You would think that a gain of 156 tons would
be positive. And it would be, except if you look to the right where we have
posted the cancelled warrants, you will see it jumped from 15.61% yesterday,
to 53.98% today. For all practical purposes, this means inventory levels
actually fell overnight, and quite dramatically. And the market is responding
accordingly. Could we see a new record high today? Stay tuned.
Amur Minerals says wins Russian nickel
auction - "Amur Minerals Corp. has more than doubled its exploration area
in the Russian Far East after winning an auction for a nickel, copper and
platinum deposit, the London-listed company said on Wednesday." -article
here
Canadian firm lining up Philippine
nickel deals - "Canada's Chemical Vapour Metal Refining Inc. (CVMR) is in
talks with five Philippine firms to buy nickel ore and hopes to include China's
Jilin Nickel Group in a possible successful bid for the Nonoc nickel mine."
-more here
New Caledonia law to leave ore exports
unchanged - "The French territory of New Caledonia is unlikely to change
nickel ore export regulations under a new minerals law that will be brought
to a vote in the next few months, government officials there said on Wednesday."
-article
here
Behre Dolbear Weekly Global Mining News
-pdf here
Metal Merger Mania - "Whether or not
BHP Billiton or Rio Tinto buys Alcoa for $40 billion as the stock-market
rumor machine has it, a deal of that scale in the metals industry is a question
of when, not if." -article here
Source mineral.ru - "The specialists
of the World Bureau of Metal Statistics announced the nickel on the world
market in the first 11 months of 2006 amounted to a 80 ton deficit."
BHP boss ripe to head Alcoa break-up
- "THE most obvious catalyst for any takeover bid for US aluminium giant
Alcoa is likely to be a break-up of the company to focus on alumina and smelting,
and ironically BHP Billiton chief Chip Goodyear has just the right track
record to do the job." -article here
Chinese stainless flats prices down before
Chinese New Year - "Due to sluggish market and low demand, the stainless
flats price is likely down before Chinese New Year Holiday." -article here
CVRD sees limited potential to expand
in Russia - "Brazil's CVRD, the world's largest iron ore miner, is studying
partnerships with steel makers in Russia but does not view the country as
key to its expansion, a senior company executive said on Wednesday. Peter
Poppinga, senior managing director of CVRD International S.A., told a metals
conference that Russian steel mills were meeting a large part of the country's
growing consumption by reducing their own exports." -article here
Today's beginning nickel inventory - plus
156 tons = 3,924 tonnes ( 53.98% cancelled
warrants)
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Tuesday, Feb 13 |
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Today's official LME nickel closing
- cash - $17.51/lb - 3 month buyer - $16.42/lb. Traders were in a buying
mood, convinced yesterday's drop was unjustified and today's nickel cost
a bargain. LME nickel, caught up in the buying frenzy of other metals, ended
the day at $16.33/lb
($36,000/tonne) (more)
Jinchuan Group surveying MacroAsia's
nickel mine site - "China's largest nickel and cobalt mining company has
started conducting due diligence studies on the nickel mine site MacroAsia
Corp. in Palawan." -article here
Antam and BHP Billiton Establish an
Alliance to Develop Halmahera Nickel Deposit -press
release here
Solve the problem of non-ferrous metal
mineral resources urgent crisis - "Sustainable development of China's nonferrous
metals industry is facing a serious shortage of mineral resources in the
severe challenges." -translated article here
Mining investment in the Philippines
is expected to reach 07 years of 348 million dollars -translated article here
China is facing a shortage of cash nickel
- "According to Hong Kong on February 8 news, traders said Thursday that
Shanghai spot for imports and reduce the supply of nickel refining. while
demand remained strong." -translated article here
China 2006 steel statistics for 2006 from
Stainless Steel Council of China Special Steel Enterprises Association -
Crude stainless steel production increase 2.14 million tons (68%) over 2005
to 5.3 million tons (#1 in world). State holding producers increased production
by 50%, while private enterprises' production increased 81%. Imported 20.13%
less (2.501 million tons), exported 122.64% more (904,000 tons). Consumption
5.95 million tons, 730,000 tons (14%) more than 2005. Per capita consumption
grew to 4.6kg.(source)
Fortis Metals Monthly - February 2007
- pdf here
At 8:00 am CST, indications show nickel
is selling up by $.46/lb, and recovered most of yesterday's loss.(more)
Rand Merchant Bank Weekly Base Metals
Report -pdf here (different than the monthly issue posted
yesterday)
Canada Weekly Commodity Price update -pdf
here
China uncovers huge mineral resources in
Tibet - "China has discovered huge resources of vital minerals buried in
the Tibetan plateau, locating more than 600 potential sites for new mines,
according to state media reports." -article here
Outokumpu to sell Hitura mine to Belvedere
Resources -press release here
Russia's 06 Nickel Export Dn 0.7% On Yr,
But Worth 66% More - "Russia exported in 2006 259,800 metric tons of nickel,
a fall of 0.7% compared with 2005, the federal customs service reported Tuesday."
-article here
China becomes world's largest stainless
steel producer - "China's stainless steel output jumped 68 percent year on
year to 5.3 million tons, ranking the first in the world, according to figures
released by the Chinese Special Steel Association." -article here (this has been well known since December
06)
Fox Resources returns to nickel production
- "Fox Resources Limited has completed a placement of 8 million shares to
raise $10 million." -article
here
 Base Metals – The fundamentals
still matter - "Despite the inflated level at the start of 2006, base metal
prices posted an extraordinary price performance last year. We believe that
the relative price performance fairly reflects the fundamentals of the individual
metals. Supply side factors have been the main driver behind the surge in
lead, tin and zinc prices, while nickel has benefited from the sharp rebound
in demand as well as by a structural supply shortfall." -article
here
Chinese imports of nickel ore to surge
- "Atlas Consolidated Mining & Development Corp has said it plans to
ship 45,000 metric tons of low-grade nickel ore from the Philippines to China
this month, more than doubling January's exports to the world's biggest consumer
of refined nickel." -article here
BHP Billiton not currently eyeing Alcoa
- source - "Mining giant BHP Billiton Ltd. is not currently working on a
bid for U.S. aluminium producer Alcoa Inc, a source close to the matter said
on Tuesday, playing down a newspaper report." -article here (this is in response to this) "Alumina shares
rocket on BHP bid talk" -article here
Stainless price to keep strong for exports
but weak in Taiwan - "In response to the continuously ongoing rise of the
cost of nickel, the stainless price keeps at the high level in the market."
-more here
Tisco to up stainless price by $100
to South Korea - "China's Taiyuan Iron & Steel Corp (Tisco) has announced
to raise stainless steel export price to South Korea for April shipment again."
-more here
Today's beginning nickel inventory - plus
18 tons = 3,768 tonnes ( 15.61% cancelled
warrants)
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Monday, Feb 12 |
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Today's official LME closing prices
- cash - $17.42/lb - 3 month buyer - $16.37/lb. Nickel ended the trading
day on the London Metal Exchange at $15.79/lb ($34,800/tonne).(more)
Nickel production in China 2006 total =
107,677 metric tonnes (+13.05% over 2005) (more China stats in yesterday's
news)
Metals Insider - Week in Review
for nickel -here
FinMetal Signs Major Agreement - Positions
Company to Acquire One of the World's Largest Portfolios of Advanced Nickel
Projects -press
release here
Precision Machined Products Association
- Material Impacts Report - February 2007 -pdf here
Newmont’s Ness tells of Indonesian
court ordeal over gold mine tailings pollution charges - "Seven years ago,
villagers from around Indonesia’s Buyat Bay were paid to travel to Berkley,
California, for NGO-sponsored training on anti-mining organizing." -article
here
At 8:00 am CST, indications were nickel
was selling down by about $.08/lb. Tin seems to be getting all the attention
today(more here)
Good News For Zinc, Bad For Nickel - "The
zinc price is down over 20% in 2007 and some 34% below the November high.
Notwithstanding the investment fund scare earlier in the month, zinc has
drifted lower since the beginning of the year as a result of a build up of
stocks at the London Metals Exchange." -article here
Monthly World Steel Statistics - by American
Iron and Steel Technology - February issue -pdf
here
Rand Merchant Bank - Monthly Base Metals
Report - February 2007 -pdf here
Institute of Scrap Recycling - Market
Report -pdf here
 European Nickel PLC - Signs Offtake Contract
with BHP -pdf press release here
 SA Mining production down - "South
Africa’s mining production declined 1.1% in 2006 compared with 2005,
Statistics South Africa says." -article
here
China Commodities Weekly - Slowing fixed
asset investment in steel sector - "SHFE prices came under downward pressure
last week due to continuing increases in LME stocks. The SHFE front month
contract fell to Rmb53,370/t (US$6,842/t) at the market close on Friday,
a fall of Rmb1,280/t (US$164/t), or 2.3% from the previous week’s close."
-article
here
Activists Hint At Renewed Attacks
In New Caledonia Nickel Project - "New Caledonian activist group Rheebu Nuu
has hinted at renewed attacks against Companhia Vale do Rio Doce's (RIO)
Goro Nickel project and vowed to continue legal action against the development
the 60,000-metric-ton nickel project, Rheebu Nuu's secretary general said
Monday." -more here
China's Jinchuan to conduct study
on MacroAsia's mine - "China’s Jinchuan Group Ltd. said Monday it has
fielded mining experts to Brookes Point in Palawan to study MacroAsia
Corp.’s nickel mine site." -article
here
Japanese consumers bracing another
record-breaking stainless hike -more
here
Today's beginning nickel inventory - plus
72 tons = 3,750 tonnes ( 18.72 % cancelled
warrants)
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Weekend Review, Feb 10-11 (Join our new forum) |
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Tension in Bolivia, Africa to lift
metals - "POLITICAL issues are set to provide support for metal prices this
week, despite rising copper stocks weighing on sentiment." -article here
Jinchuan Lifts Nickel Price to CNY315,000
per ton - "Asia's biggest nickel producer Jinchuan Group raised nickel price
to CNY 315,000 per ton on February 1." -article here
Rock to heavy metal mania - "Companies
which sell commodities are hostage to global price trends. Only the very
large are capable of influencing price trends and there aren’t many
companies in that category. The scenario in India is no different, with fortunes
fluctuating along with prices. Thus, the steel sector saw a mediocre year
in ’06, while the non-ferrous sector reaped the benefits of a booming
metal market." -article here
Quarterly Commodity Price report by TD
Economics -pdf
here
China's neo-colonial slavery in PNG - "The
new superpower still has some lessons to learn in overseas investment, writes
China correspondent Rowan Callick" -article here
New link - US Stainless Steel Surcharge
Historyupdated
page here
 S. Korean consortium wins Madagascar
cogeneration power plant deal - "A South Korean consortium has been selected
to build a cogeneration power plant at a large nickel mine in Madagascar,
the Ministry of Commerce, Industry and Energy said Sunday." -article here
Blurbs and news from China - "China's recycled
non-ferrous metal output in 2006 grew 21% over 2005 to 4.53 million tons,
according to statistics by the National Development and Reform Commission
(NDRC), the state economic planner." "State Statistics Bureau show that China's
nickel imports were up 7.8% in 2006 and reached 97,324 tons. This shows
very strong domestic demand" "China's Stainless Exports Pushed to
852,000T in 2006" "China's largest non-ferrous metal scrap imports of
the five countries are : Japan (2.01 million tons). the United States (1.08
million tons), Australia (USD 830,000 tons), Spain (550,000 tons). the
Philippines (520,000 tons). "Industry sources say that with China's restrictions
on the export of metal products, ferro molybdenum prices have remained stable."
"China became the world's largest stainless steel producer in 2006 with an
output of 5.3 million tons, up 67.68 percent year-on-year." "China
produced 418.78 million tons of crude steel last year, a rise of 18.48 percent
year-on-year, and its output of pig iron was 404.17 million tons, up 19.78
percent year-on-year. China's apparent consumption of crude steel amounted
to 384.05 million tons last year, accounting for 30.98 percent of the
global total." "According to sources in Manila on February 8. Philippines
Mines and Geology (Mines and Geosciences Bureau) data show Philippine nickel
output in 2006 is more than double 2005's, ....Philippines nickel output
of nickel grew to 59,139 tons in 2006" "Analysis of the national steel
production in 2006" -(article here) (comment - China's two week Spring
Festival (New Year's holiday) begins on the 18th and we are seeing reports
in Chinese media that reports Chinese nickel buyers are holding off purchasing
and stockpiling nickel, worried the price may drop during this period. If
what we are reading is true, we could see some major purchasing activity
from China, when they return from the break. It is the Year of the
Pig.)
 CVRD Inco donates to food bank - "The newly
elected president and CEO of CVRD Inco says the people of Greater Sudbury
can “expect to see very little change” with how the mining company
is run." -article here
 BHP's accidental hero heralds the ascent
of India - "THERE is something inspirational in Chip Goodyear's decision
to quit BHP Billiton." -article here
 Dartmouth Toxic Metals Research Program
- (don't let the title scare you. They have some very interesting articles)
"Nickel: Hidden in Plain Sight" -(here)
"What are Metals" -(here)
Stainless Steel Wire Rod from the
Republic of Korea: Final Results of Antidumping Duty Administrative Review
-here
 Some of the current anti-dumping rulings
on stainless steel fasteners worldwide - Europe against China, Taiwan, Indonesia,
Thailand, and Vietnam beginning in 2005pdf ruling here Canda against numerous entitiesruling
here
Metals correction not over: fund -
"Commodity markets were expected to be volatile in 2007 and a further downside
correction in base metals is likely, Julian Rigby, Managing Director of AMT
Futures Limited told Reuters in an interview on Friday."
- article here (comment - our new definition of
"volatile" or "volatility" - a term used to describe the metals market without
regard or consideration for actual market activity; to explain the market
conditions should the price have changed from the prior day, up or down;
and to ensure any forecast of future market activity is qualified with a
really big "but it's volatile". Used by analysts when describing the metals
trading market, when one has no idea what is going on, why it is going on,
or what is going to happen. A term used describing price changes from "barely
noticeable" to "it really hit the fan today". The term is seeing
such overuse, we suggest that the London Metal Exchange consider changing
their name to London Metal Volatility Index - it would save the readers a
lot of time! Author's note - my Italian wife is volatile - this market is
kid's stuff!!)
(Comment - So! How would you punish
a billionaire for embarrassing your company? Take away his partnership in
a nickel mine and give him ownership of a gold mine!) "Mikhail Prokhorov,
the co-owner of MMC Norilsk Nickel and Polyus Gold , could receive control
of Russia's No. 1 gold producer under the asset split between the owners
of the Interros holding, announced last week." Copyright - Interfax News
Agency
 Bolivia's Morales
nationalizes Glencore smelter - "Bolivian President Evo Morales nationalized
a tin smelter complex on Friday, the latest step in his drive to increase
state control over the impoverished country's abundant natural resources."
-article here (comment - not directly nickel related
but worth noting. Leftist candidates are winning South and Central American
elections more often than they are losing recently. All mining projects on
the continent could be in jeopardy - someday.)
Westpac Sees
Commodities Prices Falling In December Half - "Yesterday ANZ Banking Group
suggested investors buckle up in preparation for increased volatility in
commodity markets this year. Today Westpac Bank has followed suit, but with
a more negative view on the price outlook in the sector." -article here
Another film about Skye's Fenix Project
- a different perspective to last weeks video on what is going on in El
Estor -video
here (comment - we are considering writing an in depth article on
this nickel project. While we have our own concerns about what is happening
here, we are noticing that many so-called "activists", that have suddenly
taken up fighting this project as their "cause", are not doing their homework
and blaming Skye for a lot of stuff that is not their fault. Need an example?
-Skye traders forum here) (Update - we may hear
a lot more about this project in the coming months. The White House announced
this week that President and Mrs Bush will be making a trip to Brazil, Uruguay,
Colombia, Guatemala, and Mexico in March. While Skye and CVRD/Inco are not
US related companies, they may get drawn into the "imperialist accusations"
that are sure to come.) And for those who have strong feelings
about the video taped evictions that we linked to last week, here are a couple
of articles worth reading(article
part 1)(article
part 2) (comment - we find it interesting that some of these civilians
had just moved onto the property. Opinion - In a nutshell, it appears that
much of the strife here is being cause by history. A brutal past of the
government of Guatemala attempting to control indigenous Mayan's in
the area, thru murder and genocide. After years of strife between the two,
and more bad feelings caused by actions committed by the former mine operator,
Skye has stepped into the middle of a mess. With millions already invested,
and a government that wants the project to proceed, public relations with
the local Mayan population, while a greased tight rope of complexity, becomes
paramount to success.)
Very interesting site - Don't
miss the "Who has controlled the Middle East over the course of world events?"
- link here
NY Review of Books - Europe vs.
America - very interesting article listing some major differences between
Europe and the US.
 Not for dissemination or distribution
in United States. Add a bookmark if you want to review it - Credit Suisse
Research Weekly published each Friday (good info on metals) -pdf link here |
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Friday, Feb 9 (5 days remaining until Valentine's Day. If you
haven't bought flowers yet, watch thisvideo
and don't say we didn't warn you!) |
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Today's official closing prices
for nickel - cash - $17.46/lb. 3 month buyer - $16.33/lb. The bulls were
hungry this morning, but by mid-day they had had their fill and rested. At
days end, LME nickel closed at $16.37/lb ($36,100/tonne).(more) We will have a weekend update, if the forecasted
4th major ice storm of the winter doesn't knock us offline again. Have a
safe weekend!
Headline only - Mitsui, Sojitz To Invest
$51mn Each In Philippine Nickel Ops - TOKYO (Nikkei)--Trading houses Mitsui
& Co. (8031) and Sojitz Corp. (2768) each plan to invest about 51 million
dollars, or about 6.2 billion yen, in a Sumitomo Metal Mining Co. (5713)
project to increase nickel smelting capacity in the Philippines. (courtesy
Nikkei Net) (comment - without paying to read this article, this
should have to do with the Coral Bay Nickel Project at Rio Tuba, which
is backed by Sumitomo Metal Mining Co., Ltd. 54%, Mitsui & Co.,
Ltd. 18%, Sojitz Corporation 18%, and Rio Tuba Nickel Mining Corporation
10%. This is strictly an assumption on our part.)
Few days old - Trial date set for CVRD
Inco - "A trial date in October has been set on charges filed by the Ministry
of Environment against CVRD Inco relating to an incident in Greater Sudbury
one year ago." -article here and Mining job market hot -
"Representatives from CVRD Inco gave their best sales pitch Thursday as they
talked to about 100 Cambrian mine technologist and geology students about
job opportunities at their company." -article here
Headline only - Reuters - "Philippine
2006 nickel output more than doubles in 2006"
Indications at 8:00 am CST reflect
nickel selling up by $.24/lb.(more)
China's ferromoly prices steady; quota
system on the way: sources - "Spot ferromolybdenum prices in China are holding
steady now quoting at $61-62/kg CIF Rotterdam as trade has ground to a halt
ahead of the Chinese New Year holidays from February 18-25, local industry
sources said this week." -article here
After Nonoc, Jinchuan turns to
GeoGrace’s nickel - "Mining firm GeoGrace Resources Philippines Inc.
is negotiating with Chinese giant Jinchuan Nonferrous Metals Corp. on a joint
venture involving its nickel mining rights, a source in GeoGrace said." -article here
BHP Billiton aims to hire overseas
staff for delayed nickel mine - "BHP Billiton (BHP) wants to hire hundreds
of overseas workers as the global miner tries to avoid further delays at
its US$2.2 billion Ravensthorpe nickel development in Western Australia."
-article here
 GlobeStar Discovers New Nickel
Zone in Dominican Republic Including 13 Metres Grading 2% Nickel -press release here
Economist Hale warns possible U.S. hedge
fund crisis may hurt commodities - "U.S. Economist David Hale warned Thursday
that a crisis in the New York hedge fund community over the next few months
could cause a larger than “moderate” fall in commodity prices."
- more
here
Copyright and courtesy Dow Jones Newswire- Price Volatility Expected For LME Nickel - "LME nickel prices are well
supported by a nickel supply deficit as well as large funds holding short
positions, says a trader. Current LME stocks at 3678 metric tons comprise
roughly one day's worth of global nickel consumption. The first trade for
the day was seen at 0900 GMT, trader says, "indicating that market participants
are too scared to buy and too scared to sell the metal." LME nickel trades
at $35,975 a metric ton, up roughly 1.5% from Thursday. "I expect further
price volatility as the US enters the market later in the day," trader
notes.(LYT)"
Stainless steel plant begins trial run
- "Lianzhong Stainless Steel Corp, which owns the largest Taiwanese-funded
stainless steel mill in South China, started a trial run of its new plant
in Guangzhou yesterday." -more
here
Canada's CVMR confirms interest in
RP's Nonoc - "Privately held Chemical Vapour Metal Refining Inc. confirmed
on Thursday that it intends to make a sizable investment in the Philippines
and said it is in talks with Philnico Industrial Corp. about reopening the
mothballed Nonoc nickel mine there." -article
here
Koniambo Nickel puts the coral solid
mass under monitoring - "For six months, a team of plungers of the GIE
Mélanopus, elected by Koniambo Nickel SAS (KNS), has observed the
evolution of the lagoon between the south of Koné and the north of
Voh. Objective: to study the coral medium from the point of view of construction
of the factory of North." -translated article here
Chinese mine treating PNG workers 'like
slaves' - "LOCAL workers building China's $1billion nickel mine in Papua
New Guinea are being treated like slaves and paid just $4 a day, according
to PNG Labour Secretary David Tibu, who is threatening to shut the site down."
-article here
Newmont trial in Indonesia postponed
for two weeks - "An Indonesian court hearing due on Friday for a high-profile
pollution trial involving U.S. firm Newmont Mining Corp. has been postponed
for two weeks, officials said." -article here
Ramu’s tailings plan a concern - "The
possible impacts of the submarine tailings disposal of tailings from the
Ramu nickel mine could have a major effect on the commercial fishery in the
Madang Province. An expert in environmental management and development looks
into the problem." -article
here
Today's beginning nickel inventory - plus
24 tons = 3,678 tonnes ( 18.43 % cancelled
warrants)
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Thursday, Feb 8 |
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Today's official closing nickel
price - cash - $17.18/lb - 3 month buyer - $15.83/lb. The biggest one day
nickel inventory gain in months had a sobering effect on the market today,
and prices fell to end the day at $16.08/lb ($35,450/tonne).(more)
Norilsk expects OM Group deal to close
March 1 - "Norilsk Nickel said on Thursday it expected to close the $408
million deal to buy the nickel assets of U.S.-based OM Group on March 1 after
receiving regulatory clearance." -article here
Philippine's News - "Mining firms
start operations" -(article
here) and "Canadian firm keen on investing in Nonoc mine" -(article here) and "Jinchuan woos RP mining firm" -(article here)
Base Metals are Melting Off the Speculative
Froth - "We spent a few hours mid-day yesterday listening to best - selling
author and world-renowned commodities bull Jim Rogers speak at a lunch sponsored
by UBS." -article
here
Chinese mine treating PNG workers 'like
slaves' - "LOCAL workers building China's $1billion nickel mine in Papua
New Guinea are being treated like slaves and paid just $4 a day, according
to PNG Labour Secretary David Tibu, who is threatening to shut the site down."
-article here
Commodity speculators prefer U.K. regulation
to U.S. - "British commodities bourses have a big advantage over American
rivals when competing for business: Britain has no law saying speculation
is a bad thing." -article here
More BHP - Goodyear: A Combination
Of Skill And Luck - "When mining giant BHP Billiton announced on Wednesday
that Chief Executive Chip Goodyear would retire from the company by the end
of 2007, the company's chairman, Don Argus, said Goodyear had played a "key
role" in the transformation of the company since 1999. " -article here and BHP to gear up its war chest?
- "BHP Billiton could raise $11.6 billion in debt to help put together a
war chest to fund takeovers, analysts say." -article here (comment - not sure we agree with the
statement by Credit Suisse about Norilsk potentially being a takeover target
for BHP. The news out of Russia lately implies it's "hands off" to foreign
owners of strategic assets - you can't get much more strategic than Norilsk.
And if they want to make a move on Phelps, they'll need to move soon. The
Phelps-Freeport merger vote is scheduled for March 14th)
Mining Manpower Crisis - "There is
a manpower crisis in the form of a skilled worker shortage that is having
an adverse impact on the mining industry. Whatever one is interested in,
be it gold, silver, platinum, uranium, base metals, or other mining operations,
this situation is impacting on all forms of mining. It will influence the
way investors view mining companies. Current mining operations will struggle
to maintain production while new projects will be delayed."
-
article here
ThyssenKrupp Announces Finalists for
New $2.9 Billion State-of-the-Art Steel and Stainless Steel Manufacturing
Facility in the United States Alabama and Louisiana in Final Consideration
-article here
Indications at 7:45 am CST show nickel
is selling down by $.54/lb. Markets are obviously spooked by the 15% increase
in nickel inventories overnight, with many beating the worst may behind us...
at least for this go around.
(more here)
ScotiaMocatta Metal Matters Monthly
-pdf
here
Recycling International - Market analysis:
Nickel and Stainless, January-February 2007 -pdf here
Jyske Bank Commodity Morning Briefing
-pdf here
Metal price slide is no threat to long-term
returns - "Cape Town - Sliding prices of metals like copper have not dimmed
the enthusiasm of investors pouring money into new mines, who are betting
a dearth of big new projects and healthy Chinese demand will support prices
well above long-term averages." -article here
Commodity indexes fall as investors
grow more active - "Most of the major commodity indexes showed losses in
the first month of 2007, in line with a deep sell-off across the asset class
and as the focus switched to other ways of investing in raw materials." -article here
Xstrata Sudbury in office staff contract
talks - "Labor talks are going on between Xstrata Plc and the union representing
office, clerical and technical workers at the company's nickel operations
in Sudbury, Ontario, the company said on Wednesday." -article here
S&P: Market conditions remain strong
for base metals, bulk commodities - "In their recently issued industry report
card, Standard and Poor’s credit analysts advised that market conditions
remain strong for mining groups active in base metals and bulk commodities."
-article
here
GFMS Metals Consulting Nickel Monthly
Market Analysis -here
China minmetals group may withdraw from
the project nickel from Cuba - "February 7 : The government of Venezuela
on China minmetals group. Camarioca nickel projects in Cuba, Holguin 49%
of the shares to take over the region. There are a few more question has
not been fully answered." -translated article here
Mine lacks plans - "THE developer of the
Ramu nickel-cobalt mine has not finalised a mine development plan or even
a pre-construction plan. And it cannot construct anything, Mining Minister
Sam Akoitai said yesterday." -article
here
Commodities may be in a funk, leavings
stocks up in the air - "Recent woes at London-based hedge fund Red Kite –
whether truth or rumour – have taken the shine off a number of commodities,
but the market jostling may be concealing a secular change in fundamentals.
If so, investors would need to closely examine the implications for innumerable
listed metal and commodity stocks. " -article
here
Nickel dopes the results of Eramet
- "Carried by the exceptional courses of metal, the sales turnover of Eramet
Nickel increased by 31,6% in 2006. A good result, which could have been
exceptional without the conflict carried out by the CSTNC during the 4th
quarter." -translated article here
Exiting BHP boss eyes buys - "BHP Billiton
chief executive Chip Goodyear has vowed to keep his eye on acquisition
opportunities, saying the company will not be distracted by uncertainty over
his successor after he announced plans to retire by the end of the year."
-article here
Just where is nickel going? Analysts
disagree - "Nickel is so pricey that it has caused stainless steel to double
what it cost a year ago, and shows no sign of going down soon." -article
here
EU becomes the largest region in China's
stainless exports - "The stainless steel exports from China has reached 852,000
tons in 2006, up by 137 percent compared to 2005." -more
here
Today's beginning nickel inventory - plus
535 tons = 3,654 tonnes ( 17.24 % cancelled
warrants)
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Wednesday, Feb 7
(Visit
our new forum) |
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Official LME nickel closing for
today - cash - $17.64/lb - 3 month buyer - $16.03/lb. Nickel ended the trading
day at $16.26/lb
($35,850/tonne), as the market, encouraged by the first gain seen in inventory
in a few weeks, watched and waited.(more)
China's steel product consumption will
rise by 10 percent in 2007, the National Development and Reform Commission
predicted yesterday. (www.ndrc.gov.cn)
Base Metals: Supply Side Crucial -
"The prevailing theme in commodity price forecasts for the last three or
so years has been "stronger for longer", otherwise referred to as a
"super-cycle". The super part is mostly a reflection of the Japanese experience
through the sixties and seventies and the comparisons made with a much bigger
China." -article here
Prospects for commodities still bright -
"Jonathan Blake, manager of the Baring Global Resources Fund, claims that
three key factors have affected commodity prices, causing volatility in the
marketplace." -article
here
More on the Rheebu Nuu reaction
in New Caledonia -statement translated from their web site here
Last one for BHP today, we promise -
"BHP's $13b pledge stuns market" -article here Webcast today at 4 pm EST -here
Annual reports online -here
The Mindanao War Must End - (comment
- the island where the Nonoc Nickel Mine is located) -article here
Ramu mine ‘threat to fisheries’
- "The operations of the Ramu nickel/cobalt mine may have an adverse impact
on the future commercial viability of Madang’s RD Tuna cannery, an
environmental scientist has warned." -article
here
Falling prices fail to deter metals
investors - "Sliding prices of metals like copper have not dimmed the enthusiasm
of investors pouring money into new mines, who are betting a paucity of big
new projects and healthy Chinese demand will support prices well above long-term
averages." -
article here
More on BHP - "BHP makes record earnings"
-article
here BHP presentation and report -here
"BHP's payout" -article here Webcast today at 4 pm EST -here
It was the proverbial "drop in
the bucket", but the little slight gain seen in LME nickel inventory figures
released today, helped apply the brakes to the bullish market. While it may
not last long, at 8:00 am CST, indications show nickel is trading flat, after
falling earlier
(more)
Reuters Metal Week in Review -pdf here
Behre Dolbear Global Mining News -pdf here
Selkirk study confirms potential
260,000-tonne nickel production for LionOre's Tati - "Toronto’s LionOre
Mining expects to produce 260,000 tonnes of nickel at its 85 percent owned
Tati Nickel Mine in Botswana over the life span of the potentially rich Selkirk
low-grade disseminated nickel sulphide deposit within its project area. "
-article
here
New Caledonia Activists Hint At
Legal Action Over Nickel Project - "Rheebu Nuu, a New Caledonian activist
group that opposes Companhia Vale Do Rio Doce's (RIO) Goro nickel project
on the South Pacific island, this week criticized the overturning of a court
order that had halted construction work at part of the project and hinted
at further legal action." -article here
Nickel Inventories Hit 15-year Low; Arctic
Blast Lifts All Energy Boats -pdf report here
 Zimbabwe: Bindura Nickel Boss Resigns
- "BINDURA Nickel Corporation Limited managing director Mr Fred Moyo has
resigned." -article
here
After the Good Old Days of Commodity Prices
- "“It’s dangerous when bankers try to predict the future,”
said Mark Tyler, Head of Mining and Resources at Nedbank at this year’s
Mining Indaba." -article
here andanother
article here
Mining & metals: Russia - "Leading
local steel maker Severstal has unveiled ambitious expansion plans for 2007,
saying that it plans to make acquisitions in North America, Latin America,
Europe and Asia." -article here
Nickel - Sustainability will sustain nickel
price - "While low world stocks and the threat of strike action in Canada
are pushing nickel prices to record levels, environmental sustainability
will be the metal’s long term strength, according to Citigroup Investment
Research global commodity analyst Alan Heap." -article
here
Specialty Metals Industry Group Releases
Ten-Month Market Data -pdf here
Sumitomo Metal Mining expects a deficit
of nickel in 2007 - Japanese company Sumitomo Metal Mining predicting a shortfall
of 12,000 tons of nickel in 2007. .It is expected that the consumption of
the material to grow by 40,000 tons to 1.37 million tons this year, mainly
by the strong demand in Asia, compared with the previous 1.31-million tons.
- courtesy Titan Association on the basis of the Metal Bulletin
Article's on BHP - "BHP's Goodyear announces
retirement, will step down end 2007" -(article
here) "BHP Billiton's Profit Rose 41 Percent" -(article
here) "BHP Billiton signals a big idea for future" -(article
here) "BHP CEO: Ravensthorpe Nickel Proj Progressing On
Schedule" -(article
here) "BHP Boosts Buyback Amid Profit Surge; CEO To Leave"
-(article
here)
Giant elements for the factory of
Goro Nickel - "Seven modules with impressive dimensions arrived yesterday
at the port of Goro Nickel. These parts weigh each one several hundreds of
tons. They will play an essential part in the operation of the factory."
-Translated article here
EU, North America March stainless
surcharges hit new high - "Due to the influence of the continuing hiking
nickel price, Europe and North America are expected to have higher alloy
surcharges on austenitic stainless steel coil from March 1." -article
here
Dow Jones Newswire - LME Nickel To Hold
At Record Highs - "London Metal Exchange nickel looks set to trade at "sky-high
levels for some time to come," says BMO Capital Markets analyst Bart Melek.
Notes demand is set to outstrip supply in both '07 and '08, amid dwindling
stocks of less than one days' consumption in LME warehouses. LME nickel trades
last at $36,400 a metric ton, up 2% on the day. (ADH)"
Base metals bull market expected to end
in 2007 - "The consensus among forecasters is that base metals peaked in
2006 and, depending on the metal, will head lower this year as the global
economy slows. If the consensus is correct, the reversal may mark the end
of a four-year bull market for base metals that has recently sent prices
to unprecedented highs." -article here
Today's beginning nickel inventory - plus
138 tons = 3,120 tonnes ( 19.80 % cancelled warrants) |
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Tuesday, Feb 6 (We have added a forum for our readers.
You may talk about mines, stocks, inventory, news, or anything nickel, moly
or stainless steel related you like. Please feel free to join and take part.Join
here) |
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Today's official closing prices
- cash - $18.09/lb - 3 month buyer - $16.51/lb. LME nickel was quiet today,
as traders prepared for options Wednesday, closing at$16.21/lb ($35,750/tonne).(more)
Metals Trading: Red Kite buffeted by
strong winds - "Two of the places closest to the hearts of Michael Farmer
and David Lilley are near each other in the heart of the City of London –
St Helen’s Church and the London Metal Exchange." -article here
Norilsk buy of OM Group nickel assets
cleared by EU - "The European Commission said it has cleared Russian group
Norilsk Nickel's proposed 408 mln usd acquisition of US-based OM Group Inc's
nickel assets." -article here
Metals Insider - Week in Review
-here
Indications at 7:45 am CST show
nickel is trading up by about
$.30/lb (more)
Stainless steel surcharges for March
2007 announced - AK Steelhere North American Stainlesshere and Allegheny Ludlumhere
Rand Merchant - Base Metals Weekly
Report -pdf here
Canada Commodity Price Update -pdf
here
 We added a graph showing "Origin of
Stainless Steel Imports into the US 2005 - 2006 comparison" to our chart
and graphs pagehere
Copper, nickel prices may fall further:
Harrington - "Harrington says that the news that Red Kite had negative returns
caused a lot of consternation among investors. He fears that it might lead
to withdrawal from investment funds or hedge funds from the commodity space."
-article here
Rogers Says More Funds May Collapse After
Amaranth - "Jim Rogers, who predicted the start of the commodities rally
in 1999, said more hedge funds may collapse after the demise of Amaranth
Advisors LLC and losses by metals-trading hedge fund Red Kite Management
Ltd." -article here
More articles on Russia - Kremlin Inc.
To Grab Billionaire's Nickel Giant?(here) Potanin Says State Could Buy Norilsk(here)
Bistro, Bistro Cried the Russian to Sarkozy(here)
Sumitomo May Get Go-Ahead for Philippine
Nickel Plant - "The Philippine unit of Sumitomo Metal Mining Co., Japan's
largest nickel producer, may start building its second refinery in western
Philippines next month as it is likely to win environmental clearance, a
government official said." -article here
Commodity price 'bubble' to stabilise -
Nedbank's Taylor - "The current super-cycle that is characterising global
resource commodity prices is anticipated to soon recede back to normal trading
levels that are primarily dictated by supply and demand fundamentals." -article
here
Chinese developers of PNG Ramu mine put
on notice for dismal working conditions -more
here
Today's beginning nickel inventory - minus
240 tons = 2,982 tonnes ( 20.72% cancelled warrants) |
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Monday, Feb 5 (Happy Waitangi Day for our New Zealand readers
- Feb 6) |
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Official closing for LME nickel
today - cash - $18.78/lb - 3 month buyer - $17.23/lb. After the official
closing prices had been established, the market turned south, with nickel
shedding nearly 5% of its value. LME nickel ended the day at$16.17/lb ($35,655/tonne).
Before you get nervous or excited (depending on if you produce or consume
nickel), last Tuesday the market closed at $16.19/lb.
Red Kite is “random noise,”
not Amaranth - "Contrary to what one trader told Reuters on Friday, the
commodities market is not collapsing - and neither is Red Kite." -article here
 Maybank Launches Islamic-Structured
Deposit In S'pore - "Malayan Banking Bhd (Maybank), currently the largest
Islamic banking services provider in Asia-Pacific with over US$6.4 billion
(US$1=RM3.47) in syariah-compliant assets as at June 2006, has launched the
Premier Structured Deposit here." -article here
China pursues talks over steel trade disputes
- "China is trying to resolve steel trade disputes in discussions with the
United States, the European Union and the Republic of Korea, the three major
importers of China's steel, said Luo Bingsheng, Vice Chairman and
Secretary-general of the China Iron and Steel Association (CISA)." -article
here
Norilsk Nickel To Spin Off Energy Assets
By End 2007 - "Russian mining giant OAO Norilsk Nickel (GMKN.RS) Monday said
it will spin off its energy assets into a separate holding company by the
end of the year." -article here
China Investment in Africa Are No Longer
Welcome - "President Hu cancelled one of the showpieces of his African tour
yesterday after warnings of anti-Chinese protests. Mr Hu had been due to
launch a new $200 million smelter at one of Zambia’s largest, and
Chinese-run, copper mines." -article here (comment - anymore reports come
out like the one from PNG Ramu's project today, and this article could take
on a worldwide meaning)
Articles about Norilsk - Russian Nickel
Tycoon Tells Oligarch Colleagues to Behave Better Abroad(article
here) Billionaires Behaving Badly(article
here) Alrosa Chief Quits Amid Talk of Norilsk Deal(article
here)
Nickel is still looking for a place
to catch its breathe, and indications this morning at 8:00 am CST, show it
is trading approx $.30/lb higher.
(more)
DENR chief to inspect Rapu-Rapu mine
- "Environment and Natural Resources Secretary Angelo Reyes will conduct
an ocular inspection of the Rapu-Rapu Polymetallic Mine on Rapu-Rapu Island
in Albay early next week to validate the company’s compliance with the
environmental conditions and other safeguards set by the Department of
Environment and Natural Resources (DENR) before the mining firm is allowed
to operate on a commercial scale." -article
here
Finally posted online - last week's Behre
Dolbear Global Mining News -pdf
here
Dow Jones Newswire - "Nickel prices are
"virtually unforecastable," says Societe Generale's Stephen Briggs, with
the market "likely to remain very high for some years." "We can only recommend
that consumers who can substitute nickel, do so," Briggs adds.
Ramu mine breaches PNG industrial law -
"LABOUR and Industrial Relations Secretary David Tibu is prepared to shut
the operations of the Ramu nickel/cobalt mine if the Chinese developer fails
to follow certain directives." -article
here andarticle
here
Toledo Mining Corp PLC said its first
shipment of laterite nickel ore has left the Berong anchorage in Philippines
but added that at about 19,000 tonnes, it is less than the expected 40,000
tonnes.
Commodity prices forecasted to be well above
historic trend - "Rio Tinto Chief Economist Vivek Tulpulé Thursday
forecast that most commodity prices are expected to average well above their
long historical trend this year." -article
here
China will import 355 mln tons of iron
ore this year, the official Securities Times reported over the weekend, citing
data provided by the China Iron & Steel Association (CISA). The association
said earlier that China imported 326.3 mln tons of iron ore last year, up
18.56 pct, and accounting for 51.1 pct of its total consumption. (Steel Times
India)
 Building the future for Rio Tinto –
Mineweb interviews Tom Albanese - "In May, New Jersey native Tom Albanese
will become the third American to currently head an international mega-miner
when he assumes the Rio Tinto chief executive’s position from Leigh
Clifford, who is retiring." -article
here
Work of Kwé: the Court of
Appeal of Paris gives reason to Goro Nickel - "A decision of court can cancel
another of them. The Court of Appeal of Paris cancelled Friday the decision
of the Court of Bankruptcy in the business opposing the committee Rheebu
Nuu to Goro Nickel: work of the future site of storage of Kwé is not
illegal any more, nor dangerous." -translated article here
Yieh reports "China's Taiyuan Iron &
Steel Corp (Tisco) announced plans to double the stainless steel output and
export volume this year. Tisco has started an expansion project to reach
annual capacity 15 million by 2010, and it consists 3 million tons of stainless
steel capacity and 12 million tons of carbon steel capacity."
Nickel Price Outlook Divides Deutsche Bank,
JPMorgan - "When it comes to nickel, the best performing commodity the past
13 months, JPMorgan Chase & Co. is determined to prove Deutsche Bank
AG is full of so much hot air." -article here
Today's beginning nickel inventory - no
gain/loss = 3,222 tonnes ( 28.31% cancelled warrants) |
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Weekend Review, Feb 3-4 |
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 And to close out this weekend report, we thought we would
give you something with a little "wow" effect. Here is a photo of Saturn,
taken with the Sun behind it. If you are feeling a little overcome with problems
today, the little star you see inside the rings on the left hand side - that's
Earth. (click the photo to open up larger photo -source
here with even larger photo)
Metals selloff raises fears over
bullish funds - "Falling base metals markets have renewed concerns that hedge
funds making big bets on high prices may be in trouble, after last year's
missteps that put a few funds out of business and hurt the industry's image
as a money machine."(article here) (comment - So, why the panic
on the LME Friday? And why should traders worry about a hedge fund called
Red Kite losing money. Isn't trading a game of winners and losers? In fact,
it was less panic, than profiteering. There is no reason to believe that
this will be more than a bump in the road for Red Kite, but these things
do have ripple effects for hedge fund investors and banks. Red Kite's primary
concern now will be it is a wounded animal in the "River". This particular
"River" is well known for its sharks, looking to benefit off others injuries
and misfortunes. And much of Friday's drop in copper price? Was exactly that!
Monday may bring more of the same, with traders driving the price of copper
down further to force Kite's stops and make life miserable for them. If there
are others in Red Kite's shoes, they are remaining quiet.)
Could Africa Bring Bown The Super Cycle?
-article here
(Prensa Latina) "Cuba said it will invest
300-plus million dollars in its basic industry, including nickel, to improve
industry output and energy-saving efficiency. Holguin -located over 456 miles
east of Havana- closed 2006 with a record production and nickel exports excelled
as Cuba's largest hard currency income source."
How will the market remember 2007? - "Asked
a year ago whether strong metal prices could be sustained, an industry executive
reckoned the world was in “the third or fourth innings” of a resources
bull market." -article
here
Indian scientist discovers new magnetic
molecules - "An Indian scientist and his team have discovered a new family
of magnetic molecules that could revolutionise computer storage devices."
-more
here
U.S. rules reach into Canada - "Workers
at a Valleyfield munitions factory were more afraid for their civil liberties
than their job security last year when they learned their plant had been
purchased by a giant U.S. defence contractor." -article here
The Centre for Management Technology
has asked us to invite interested parties to their "Stainless/ Specialty
Steels Summit" to be held in Dubai on 19-20 March. For further information,
pleasevisit here. A few other upcoming shows to mention include
the Australian Nickel Conference 24 – 25 October at the Sheraton Perth
Hotel in Western Australiainfo
here and the The 3rd New Caledonia Nickel Conference on 25th March -
28th March at the Le Meridien, Noumea.more here And finally, Stainless 22-24, May in the Czech
Republic info
here (regretfully, due to prior engagements, we won't be available
to speak at any of these conferences......not that we were asked)
CAW ratifies three-year deal with Xstrata
Nickel by 87 per cent vote - "Xstrata Nickel employees at CAW Local 598,
representing production and maintenance workers at the company's Sudbury
operations, ratified a three-year collective agreement on Friday." -article here (comment - congrats again...could you
lend the US a few bucks? We have quite a little debt going on down
here - for current US debt,see
here)(Update - forget this request for donations. We just learned from
CNBC, and his website, that Dr Jose Luis de Jesus Miranda has come to America.
With the world's most recent self-described messiah arriving in the U.S.,
things have to get better, eh? -more
here And the rest of the world says we Americans are idiots! We'll show
them! Video
here)
More on who lost their jobs during the
CVRD-Inco shake-up that we reported Jan 2, but became official Jan 30th -(here)
Here is the list (and the bonus' they were given last fall so they would
stick around to be fired) - Scott Hand, president and chief executive
officer of Inco ($9.5 million), Bob Davies, chief financial officer ($500,000),
Ron Aelick, president of Asia Pacific ($150,000), Stephanie Anderson, vice
president and treasurer ($300,000), Subi Bhandari, vice president and chief
information officer (no bonus listed), Mark Daniel vice president, human
resources ($200,000), Bruce Drysdale, vice president of government and public
affairs ($300,000), John Hills, director enterprise business solutions (no
bonus listed), Peter Jones president and COO ($500,000), Sandra Scott, director
of investor relations (no bonus listed) and Nick Sheard vice president of
exploration (no bonus listed).(Original bonus list) )(comment - a few of
the aforementioned "got the shaft" while the others "hit the mother-load"
- mining terms)
Cabinet Approves New Limits on Foreign
Firms - "The Cabinet on Wednesday gave tentative approval to a long-delayed
bill restricting foreign participation across 40 industries that the government
deems strategic, including energy and metals."(article here) And more on nickel being strategic(article
here)
Nickel producer eyes $2.5b in dual listing
- "Xinjiang Nonferrous Metal Group, the mainland's second-largest nickel
producer, plans to list its nickel unit in Hong Kong and Shanghai to raise
a combined HK$2.5 billion during the first half of this year, sources said."
-article here
France bids for New Caledonia's
lagoons on UNESCO world heritage list - "The French government has filed
a bid with the United Nations Education Science and Culture organisation
(UNESCO) to have New Caledonia enlisted for its unique lagoons and reefs."
-article here
Mining. China plays by own rules - "China
may be only a consumer of mineral commodities for now, but it could eventually
develop its own multinational mining groups and get involved as an active
player in the international mining game, as Russia has done." -article here
Outokumpu has links to two films on their
home page (here)(look on lower left column - "Outokumpu" and "Production process")
An island off Japan that was had a coal
mine employing 5000 inhabitants. Closed in 1974, the island is completely
deserted and off limits now - 2 part video
- Part
1 Part
2 and more reading on Hashima "Ghost" Islandhere(see links on article to numerous photo's)
It will be interesting to see if CVRD will
dump the minority interest in the Fenix Project it inherited with the Inco
purchase, for the PR value? -youtube
video here
Modern Marvels - watch the segment on the
Biggest Machines - Dump Truck and Bulldozer -video here
The Ontario Mining Association produced
a 14-minute video last year titled Mining New Opportunities. -video
here
Promotional film on Philippine's mining
opportunities -youtube video
here
Raising Awareness of Stainless Steel Recycling
- "The International Stainless Steel Forum (ISSF) today announced it has
launched an advertising campaign jointly with the Nickel Institute. The campaign
is designed to inform the public that stainless steel is one of the world’s
most recycled materials and that it is recycled more than paper or glass."
-video's here and flyer's you can use in your businesshere
Posted on here before, and will again.
Still my favorite promotional film for stainless steelhere
Bookmarks for Australia and NZ (not
mining specific) - Westpac Economic and Financial Research -(here) and St George Private Bank Daily Commentary(here) and Prescott Securities Reports(here) |
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Friday, Feb 2 |
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Today's official closing for LME
nickel - cash - $18.50/lb - 3 month buyer - $17.01/lb. With inventories
continuing to fall, and nothing on immediate horizon promising relief, the
price of nickel climbed throughout the day, before pausing near the close,
ending the week at$16.94/lb ($37,350/tonne).
Other metals took a thrashing today, and Reuters stated "Traders said the
selling was mostly on behalf of funds, triggered by a report of heavy losses
at a hedge fund that specialises in metals trading."(more) and more on Red Kitehere
French Crt Allows CVRD Inco To Resume
Goro Land Clearing - "CVRD Inco will resume clearing land at its Goro nickel
mining project in New Caledonia after winning an appeal Friday filed to overturn
a French court ruling that required the company to stop its work there, the
company said." -article here
China slows down investment in steel industry,
shifts emphasis to high-end projects - "Investment on fixed assets in China's
iron and steel sector reached 260.3 billion yuan (about 33 billion U.S. dollars)
last year, which Luo Bingsheng, vice-chairman of the industry's association,
termed excessive." -more here
2001 - 2006 annual average price for
nickel, moly, and ferrochrome updatedhere
Nickel inventories continue to fall,
and the price continues to rise. Indications at 8:00 am CST are that nickel
trading is selling up by $.39/lb.(more)
Daily Report By Jyske Bank -pdf here
Tax Deduction on Imported Nickel in China
Unlikely to Push Inflow - "Trading sources reported that a tax deduction
on importations of refined nickel in China is not likely to prompt inflow
due to high world prices." -article
here
Philippines foresees boom in mining
- "Overseas investment in mines in the Philippines, which has $1 trillion
in mineral wealth according to a state estimate, may surge to $1.6 billion
next year as the industry starts to boom, the government has forecast." -article
here
China's Xinjiang Nonferrous Metal Group
plans IPO for nickel unit this yr - "China's Xinjiang Nonferrous Metal Group
said in a statement that its cupro-nickel unit is planning a public listing
this year." -more here
North American Average Stainless Steel Prices
- Latest forecasts from MEPS - In February and March we expect stainless
transaction values to rise to new record highs due to inflated nickel prices
in December and January. -more here
(interesting article by Mineweb above
supposed "plot" to get rid of Mikhail Prokhorov) Prokhorov sells
out of Norilsk Nickel, Polyus - "Mikhail Prokhorov, until Thursday the world's
richest miner, ought to have enjoyed the lentils, which are one of the staples
on the menu at the Hotel de Police de Lyon. For four days in January, Prokhorov
was jailed in France on suspicion of trafficking in women, pimping, and related
sex commerce. He was released without indictment. It was the worst scandal
to strike the two internationally listed mining companies, Norilsk Nickel
and Polyus Gold, since Prokhorov and his partner, Vladimir Potanin, first
took Russia's largest mining assets in a rigged privatization scheme a decade
ago." -(much
more here) also, here is a text transcript from a NTV Mir Television
report in Moscow(here) and finally, an article from Moscow Times(here)
Metals: prices are soaring - "It looks
as though the global rolled products market has embarked on the road to recovery.
As expected, prices for fittings, the main type of rolled construction products,
were the first to rally, having climbed 10% over the past two weeks. In all
likelihood, metal producers can look forward to a good year ahead." -article
here
Eleven billion work before the factory
of North - "Fences, the installation of the RT1, offices and a base life
of 250 people: Koniambo Nickel announced, yesterday to Koné, eleven
billion preliminary work. But no firm contract was still taken for the
construction of the factory of North." translated articlehere
China's stainless exports to US hits 16,000
tons in last Dec - "China has exported stainless steel products over 16,000
tons to the US in last December, which was two times more than the quantity
of 7,100 tons in the same period of 2005." -article
here
Chinese ferromoly prices steady before
Chinese New Year break - "Spot ferromolybdenum trade in Asia has been at
a standstill with offer prices moving within a tight range of $61-62/kg on
a CIF basis, Asian industry sources said this week. Asian traders said trade
was expected to remain quiet ahead of the Chinese New Year holidays in
mid-February." -more here
Today's beginning nickel inventory - minus
144 tons = 3,222 tonnes ( 25.51% cancelled warrants) |
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Extra |
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 First, let us congratulate Xstrata
and the CAW on reaching an agreement, and saving those of who use nickel,
a lot more pain in the pocket - we hope. More importantly, your decision
not to strike proved our prediction on January 20 correct, for a welcome
change. Ok - now let's talk about the contract. Here are some details from
the Tentative Agreement made between Xstrata and the CAW, that should be
ratified by the membership Friday. Wage increase of $.60/hour in the first
year, $.20/hour the second, and $.20/hour the third. Presently the CAW makes
about $26/hour(C). A "Continuity Allowance" of $8000(C) or about $6796(US).
This works out to another $1.33/hour(C) over the three year contract term.
Not mentioned, but surely understood, is the continuance of the monthly nickel
profit bonus each member gets. The higher the price of nickel goes, the bigger
the bonus (you don't honestly believe it was all Xstrata that was doing
the stalling, do you?) A thirty year retirement to look forward to with
a $39,600(C)/annual pension (if you have seen what a pack of cigarettes
cost in Canada, you wouldn't think this was so high). And many other
provisions, too numerous to list. One particular line that stands out - "Viagra
now covered (for medical reasons)". Better watch out Inco! Your competition
in town just got stiffer!(details here) |
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Thursday, Feb 1 13 days till Valentines Day (we Americans
are a little preoccupied at the moment by the much anticipated approach of
an annual event, that is quite misunderstood in those parts of the world
that find football a brutal and senseless sport. It is an event our nation
watches with hushed reverence, followed by cheers of excitement. Bets, both
legal and illegal, are being placed on its outcome as we write this. We,
of course, are speaking of Ground Hog Day. When the greatest nation on earth
comes to a stop and watches a furry, fat rodent, we would any other day be
shooting at, come out of a cage, so we can determine our meteorological future
.And you other nations call yourselves civilized!!) |
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Official close for LME nickel
today - cash - $17.91/lb - 3 month buyer - $16.61/lb. Markets were down early
on news the Sudbury strike had been averted, but regained its momentum on
inventory pressures. The strike possibility may be over, but the question
remains -"Where's the nickel?!"LME nickel ended the day at$16.70/lb
($36,825/tonne).
Commodities 2007: Year of the Bears? - "Little
attention has been given to the technical aspects behind the January correction
in commodities and energy markets. This is remarkable given its impact on
the markets in the near term is likely to be no less than significant." -article here
Nickel – Mining starts at Avebury
nickel project -article
here
January Manufacturing ISM Report On Business
-press release here
Eramet - New Caledonia Nickel Loss
7,000 Tons From Strike - "The company said it is now looking to boost output
to 75,000 tons, but aims to produce about 65,000 tons in 2007. Deliveries
will be about 2,000 tons lower than this, Eramet said, in order to rebuild
stocks of finished products which fell to an "unsustainably low level during
the strike." -Article here
(comment) Everyone was watching
the events in Sudbury yesterday, so the ruling in Russia kind of snuck thru.
We find it interesting that Russia is putting a stop to foreign owned companies
taking over their mining industries, or not allowing any new companies to
come in after their "rare" minerals like copper?, when just 3 years ago,
Norilsk took over Stillwater Mining of Montana and is mining platinum in
the US?? - 2 pages - #1here
#2here.
Norilsk chief to sell stake - "Banking
experts are speculating that Mikhail Prokhorov's decision to sell his interest
in OAO Norilsk Nickel could eventually result in the Russian government taking
over the world's largest nickel miner." -more here
CVMR Eyes $3 Bln Philippine Nickel
Refinery Invest - Source - "Canada's Chemical Vapor Metal Refinery Co., or
CVMR, is keen to invest US$3 billion in a nickel refinery in the Philippines,
a senior official of the mines bureau said Thursday." -more
here
Clad Steel Plate from Japan; Final Results
of the Expedited Sunset Review (Second Review) of the Antidumping Duty Order
-more here
Well, it's over!! Oh, not the bull
run, just the possibility of a strike in Sudbury. The price of nickel fell
sharply this morning on news of an agreement between the CAW and Xstrata,
with prices falling over $500/tonne. Then someone seemed to remember the
LME nickel inventory fell nearly 20% overnight (before any strike), and at
8:00 am CST, indications show the price of nickel is actually selling above
yesterday, by $.03/lb. Go figure. Let's hope someone was holding back on
some nickel shipments betting that a strike driving prices higher.(more here)
Mineral boom set to continue - "AUSTRALIA'S
mineral boom appears set to continue despite a slowing US economy that would
normally have been the death knell for commodity prices in the past, a leading
forecaster said today." -article here (the report mentioned is not free so
I am unable to link to it)
Norilsk Nickel comes under sole control
- "Vladimir Potanin, one of Russia's richest and most politically savvy
oligarchs, is buying out his business partner to take sole control of Norilsk
Nickel, in what could be a step towards state control of the world's biggest
nickel producer." -article here
POSCO to build ferronickel refinery
in May - "South Korea's POSCO, the world's third-largest steel maker, said
on Thursday it will start in May to build its first ferronickel refinery
with an annual capacity of 150,000 tonnes. POSCO has been seeking to secure
a stable supply of the material, which is a combination of nickel and steel."
-article here
 Eramet annual report - (quote - "Given
the effects of the strike, particularly on ore inventories, as well as planned
repair works on two ore calcining furnaces, the target for metallurgical
nickel production at the Doniambo plant in 2007 is about 65,000 t. Deliveries
will be about 2,000 tonnes lower than this, in order to rebuild inventories
of finished products, which fell to an unsustainably low level during the
strike.") -pdf press release here
Stainless Steel Transaction Prices
Nearing Their Peak -MEPS report
here and article on report "Stainless Steel Price Boom Under
Serious Threat - MEPS"here
China will impose quotas on the export
of molybdenum - "The government of the People's Republic of China could impose
export quotas molybdenum in March." -translated from Russian here
We have made some changes to
our right column. Nickel, molybdenum, and ferrochrome price history's have
been moved to the charts page, and we have added some more analysis and helpful
links for our readers.
Rio Tinto posts record 2006 profit -
"Anglo-Australian mining giant Rio Tinto has announced a 43 percent jump
in in full-year net profit to a record 7.44 billion US dollars and forecast
continued strong demand for commodities." -more here (andannual
report here)
Miners battle China over African wealth
- "The world's largest mining companies are turning to the United Nations
and the World Bank in an attempt to prevent China freezing them out of Africa."
-article here
Philippine Berong mine makes first
nickel shipment - "The Philippines' Berong nickel mine, whose inferred resource
is said to be the world's fourth biggest, has made its first trial ore shipment,
one of its owners said on Thursday." -article
here
Outokumpu: Nickel Price Makes Steel Stock
Build Unlikely - "Underlying demand for stainless steel is expected to remain
strong in 2007 with stocks unlikely to build while nickel prices remain high
and volatile, Finland's Outokumpu said Thursday." -(more
here) and "Outokumpu swings to Q4 pretax profit, beating market
consensus" -more here
Xstrata Sudbury nickel workers' union
agrees deal - "Xstrata Plc and the union representing workers at its big
Canadian nickel operations in Sudbury reached a tentative new agreement before
a deadline on Wednesday, narrowly avoiding a strike that would have crippled
production and crimped already-tight metal supplies." -article here
Yesterday's official closing prices
- now being posted at end of day - see yesterday for yesterday's closing
price
Today's beginning nickel inventory - minus
606 tons = 3,366 tonnes ( 27.27% cancelled warrants) |
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All prices, unless marked official closing prices, are indications only
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are metric tons = 2204.6 pounds ) Updated daily before 8 am CST and around
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