Headlines & leaders - (Bloomberg) Wen Pledges to Curb Graft, Income
Inequality as Police Head Off Protests // North Korea Warns of Military Response
Against South Over Leaflet Air Drop // China's Bank Share Slide Seen Persisting
With Inflation Undermining Growth // Mukherjee Seeks to Ease India Tax Burden,
Cut Deficit as Inflation Gains // Asian Stocks Advance, Reversing Loss, After
Report of Libya Oil Shipments // Oil Trades Near Highest in Two Years as
Unrest Spreads to Oman // Glencore Said to Plan Talks With IPO Investors,
Analysts // U.S. Offers Aid to Libya Opposition as Unrest Spreads to Oman
// Euro Pares Losses Against Yen, U.S. Dollar as Asian Shares Erase Decline
// European Stocks Advance; Siemens Gains on Osram Share Sale, Syngenta Rises
// Berkshire Posts $1 Billion Writedown as Bonds Fail to Recover // Pent-up
Demand Boosts U.S. GDP Outlook, Business Economists Say // Capitulating Bears
Push Short Sales to Lowest in Three Years // U.S. Consumer Spending Cools
as Food, Fuel Costs Climb // Stocks Rise on Buffett, Takeovers; Treasuries
Erase Losses
The Euro is now trading 3/10 of 1% higher against US Dollar. NYMEX crude
is slightly lower and trading at $97.83/barrel. Gold is up nearly 1/4 of
1% and silver is 1-2/3% higher. Base metals ended the session higher. Indicator
chart show nickel made a big bounce right before our morning update
and then gained a little more over the rest of the session. In the end, Dow
Jones reports three month nickel closed at $13.15/lb
, its third
attempt to break thru the $13/lb mark and hold. Stockpiles of nickel stored
in LME approved warehouses fell on Friday and now total just under 130,100
tonnes. Sucden's day old chart shows nickel trading thru Friday
(chart here). Cancelled warrants has read over 7% the
last two days, which is about double what it has been since the new year
began. The week began quietly for the metals world, with metals wanting to
return to their bull run.
(TF) Samuel, Son & Co. Ltd., parent company of Associated Tube Group,
has announced plans to close its only remaining U.S. stainless steel tube
manufacturing facility, located in Elizabethtown, Ky., by June 30.
Warren Buffett’s 2010 Report: The New Beige Book Guide to the U.S. Economy
-
more
It’s Still Not Looking So Hot Out There, Kids-
more
Could Gas Drive a Double-Dip? Of Course it Can -
more
Last U.S. World War I veteran Frank W. Buckles dies at 11 -
more
Russia's young
flock to work in Arctic mine town - Lung-blackening pollution and Arctic
isolation have not stopped Russian mining giant Norilsk Nickel from attracting
graduates to work in its mines. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:10 am CST show 3 month nickel trading around $.25/lb
higher, with other
London traded base metals mostly higher. The Euro is trading over 1/2 of
1% higher against the US Dollar at the moment. NYMEX crude is almost 2/10
of 1% higher and trading at $98.05/barrel. Gold is up 1/3 of 1% and silver
is nearly 6/10 of 1% higher. In overnight trading, Asian markets closed higher,
with China up 1.3%. European markets are trading higher this morning, and
US futures are higher ahead of numerous economic reports. Nickel inventories
fell on Friday.
Reuters morning - Copper rises after Chile quake -
more
LME Morning - Cooper advances above $9,850/t as optimism returns -
more
Edward Meir of MF Global Morning Comments - Copper posted its biggest daily
advance in three months on Friday, as investors seemed to conclude that the
upside breakout in energy seems to have run its course for the time being.
This view was supported by reports that Saudi Arabia had stepped up its oil
production to over 9 million barrels a day, an increase of some 700,000
barrels/day since the Libyan crisis began. Also supporting metals, was a
decent rally in the US equity markets, as well as the fact that the dollar
weakened against the Euro, getting to a low of $1.3840 at one point on Friday
after a US macro release showed fourth-quarter US GDP growing much less than
initially estimated, rising by 2.8% versus the 3.2% initially projected.
However, consumer sentiment rose to its highest in three years in February,
although March sentiment data will likely show a noticeable dip given the
steep rise in gasoline prices of late. Metals opened lower in Asian trading
earlier today after oil prices shot up by $1.50 at the opening, but prices
began to recover once the oil gains started to fade, and we are now pretty
much higher across the board. Brent oil prices are now down by about $.25,
while WTI prices are off by about $.50 a barrel. This understated tone belies
the tensions that continued to reverberate throughout the Middle East over
the weekend. In Libya, the UN security council met late on Friday to discuss
a number of punitive measures and by Saturday, it voted 15-0 to impose financial,
travel, and arms sanctions on the regime and its supporters although it did
stop short of imposing a no-fly zone (now apparently being considered). The
resolution also refers the Libyan leadership and other individuals to the
International Criminal Court. Although the Security Council's action was
laudable, it will do little to change the immediate situation on the ground,
where things seem to be growing more desperate, at least for the citizens
of Tripoli. This is largely due to the fact that the Libyan leader is obviously
ready to go down fighting, and to this end, he has been reportedly been arming
many of his civilian supporters who are now patrolling the capital and attempting
to quash any sign of dissent. However, this does not mean his supporters
will necessarily stay and fight; CNN reported on Sunday that Gaddafi's security
forces in another town close to the capital have already defected to the
opposition. In Tripoli itself, there were chaotic scenes as people rushed
to banks to withdraw money and long lines formed at bakeries. Pharmacies
in Tripoli were running out of medicines, and people continued to stream
out of the city. The Tunisian government reported Saturday that 40,000 people
had crossed its borders since February 20, while Egypt reported 55,000 had
crossed over since February 19. One of those leaving was none other than
Gaddafi's private nurse, described as the "voluptuous blonde" in a US Embassy
cable earlier this year, and who will presumably be tending to someone less
controversial now that she is safely back in her native Ukraine. In Oman,
thousands of youths clashed with police in the port city of Sohar, and witnesses
say two protesters were killed in the fighting. In addition, Bahrain's opposition
demanded the resignation of prime minister, but a Shiite leader who returned
from exile this week went further by asking that the entire monarchy be abolished
under a campaign of civil disobedience. For his part, the King announced
that government housing loans will be reduced by 25% and sacked three ministers
late on Friday, although surprisingly, the country's Prime Minister, who
was been in his post for 41 years, is still in place. We doubt these relatively
timid moves will do much to head off the resistance, and we would not be
surprised to see more conflagrations flare up in Bahrain in the days ahead.
In Iraq, Prime Minister Nuri al-Maliki gave government ministers 100 days
to "deliver results" or be fired, the government announced after an emergency
cabinet meeting Sunday. The announcement follows weeks of demonstrations
across the country by protesters angry about unemployment, poor services,
corruption, and a lack of freedom. At least 13 people died in protests Friday.
Militants also attacked Iraq's largest oil refinery on Saturday, killing
four workers and detonating bombs that shut down the plant in northern Iraq.
Mid-East tremors are even extending halfway around the world to China, where
police blanketed Beijing and Shanghai over the weekend to head off planned
protests. More than government 100 vehicles were said to be patrolling one
of Beijing’s busiest shopping streets and the purported site of a planned
rally. Several journalists were forcibly removed from the area, while in
Shanghai, at least seven people were taken into custody at one of at least
27 planned protest sites nominated around the country. The government also
said that the leadership is “determined” to punish corruption,
address growing income inequality, head off rising inflation, and address
soaring home prices. In an online chat on these issues, the Chinese Premier
Wen Jiabao said that his government will aim for lower average gross domestic
product growth of 7% during the 2011-2015 period, thus underscoring his intention
to address long neglected social issues. Mr. Wen admitted that restructuring
won't be easy, but that the government will try to adopt new performance
evaluation criteria for local governments, who will be evaluated on their
ability to deliver efficiency, environmental protection, and to raise living
standards. .... Nickel is at $28,790, up $600, and we seem to be getting
ready for another attempt to take out the recent highs. Nickel’s short-term
uptrend line seems to be intact, as we note from our chart
below. (read Ed Meir's complete morning base metals report
here)
(BNA) Iron ore prices are expected to increase 20% in the second quarter
of the year compared to Q1, Brazilian miner Vale's (NYSE: VALE) sales and
strategy director Jose Carlos Martins said during a press conference
(TI) Eramet, a France-based mining company, is interested in investing US$
4-5 billion in nickel mining and smelting on Halmahera Island, Maluku. For
the investment, Eramet is seeking a 50-year investment guarantee. However,
according to Coordinating Economic Minister Hatta Rajasa, the policy in Indonesia
only allows a 30-year investment. “There is an additional mechanism
of 10 years. That is no longer a problem,” he said.
(MBN) PT Inco nickel output falls 10% in Q4
(SBB) Yusco to hike 300-series export prices by up to $350/t
EUROFER:"EU Low Carbon Roadmap 2050 unacceptable" -
more
Brazil's
Vale Expects Commercial Nickel Output At VNC In 2011 - Brazilian miner Vale
SA, the world's second-biggest nickel producer, said Friday it expects this
year to start commercial nickel metal production at its Vale New Caledonia
nickel plant, which was formerly named Goro. -
more
Glencore:
The biggest company you never heard of - A powerful and secretive Swiss trader
is likely to list this year. Can the Goldman Sachs of commodity trading survive
going public? -
more
MMC Norilsk Nickel
makes clarifications with respect to Rusal’s announcement regarding
Glass Lewis report - OJSC «MMC «Norilsk Nickel» ) is informing
that the Company has taken note of the report of Glass Lewis & Co. (Glass
Lewis), an international consultancy company providing proxy advisory services
to institutional shareholders, which was partially cited in the press release
of UC Rusal Pls (Rusal) dated February 24, 2011. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) World’s Biggest Pension Fund
‘Will Likely’ Sell Japan Bonds // India Says Economy May Grow as
Much as 9.25% Next Year Amid Inflation Risk // China, U.S. Teams Arrive in
Christchurch as Quake Death Toll Reaches 113 // Asian Stocks Climb
for First Time This Week on Oil Price; Hynix Advances // Lloyds Tumbles as
Rising Funding Costs Threaten 2011 Profit // LSE Opens Four Hours Late Two
Weeks After Technology Switch // Russian Central Bank Unexpectedly Raises
Main Rates, Reserve Requirements // Qaddafi Bolsters Defenses in Tripoli
While UN Mulls Libya Sanctions // U.K. Economy Shrank More Than Estimated
in Fourth Quarter // European Stocks Climb as Volkswagen, Saint-Gobain, Telecom
Italia Advance // Constitution Is Only Way to Cut U.S. Deficit: David M.
Primo // Boeing Tanker Win Keeps 767 Alive, Eases Sting From Delays // Vale
Sees 4-Year `Tightness' in Iron Ore Market on Rising Chinese Demand // U.S.
Economy: Consumer Sentiment Climbs to Three-Year High // Stocks Gain as Consumer
Confidence Beats Forecasts
The Euro continues to trade 1/4 of 1% lower against the US Dollar. NYMEX
crude is up 1/4 of 1% and trading at $97.51/barrel. Gold is up 4/10% and
silver is up nearly 2-3/4%. Base metals ended the session higher as oil fell
back under $100/barrel and equity markets breathed a sigh of relief. Indicator
charts show nickel fell early, recovered, and then gained in the last few
hours of the session. For the day and week, three month nickel ended at
$12.79/lb. Stockpiles of nickel
stored in LME approved warehouses rose Thursday and ow sit just over the
130,400 tonne level. First time nickel figures have been over 130,000 tonnes
since last Wednesday. Sucden's updates of their day old nickel chart have
been erratic the last few weeks and spotty. After dropping all week, the
Baltic Dry Index snuck in a gainer to end the week. It was another week dominated
by news out of North Africa, and this week that news had a negative impact
on world markets. As Saudi Arabia reassured consumers that they would pick
up any oil production lost by Libya's civil war, nervous markets calmed a
little and NYMEX crude dipped back below the psychologically important
$100/barrel mark. Rex Nutting classified the opinions on what impact higher
oil prices might have as "Some say it’ll barely be a bump in the road,
while others are setting their hair on fire about the looming disaster. ".
We keep those in the southern Pacific in our thoughts this weekend after
a very rough few months. Have a safe and relaxing weekend.
(Macquarie Research) Latest data from New Caledonia shows that nickel production
at Vale New Caledonia (Goro) was virtually non-existent in January at 194t
of nickel contained in intermediate product (NHC). We hope Vale will update
on the progress of this 60,000tpa HPAL facility when it reports its results
(Thursday evening US time). The New Caledonian data also showed a collapse
in nickel ore production in January to only 278,000t, down 39% YoY and the
lowest figure in well over 10 years, presumably due to bad weather conditions.
There were no reported exports of limonite ore to Australia.
Oil prices will slow — but not halt — growth -
more
Fed’s Bullard Would Adjust Bond-Buying Program In Response To Economy
-
more
US Trade-STATS-January
Steel Imports By Country - U.S. import for consumption of steel products
from selected countries and areas. Not seasonally adjusted on census basis.
-
more
Somalia,
Sudan, Afghanistan and DRC top global risks ranking while South Korea
demonstrates resilience - The important growth economies of India, Indonesia,
Nigeria, the Philippines and Russia are all rated ‘high risk’ in
a ranking of 175 countries that evaluates the key strategic, operational
and reputational risks for business. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $.10/lb
higher, with
most base metals trading higher as well. The Euro is trading 1/4 of 1% lower
against the US Dollar. NYMEX crude is up 1/2 of 1% and trading at $97.80/barrel.
Gold is up slightly and silver is higher by 1-1/2%. In overnight trading,
Asian markets closed higher, with China up 2/10 of 1%. European markets are
higher this morning, as are US futures, on lower oil prices. Nickel inventories
rose strongly yesterday.
Reuters morning - Copper firms on U.S. data, growth worries remain -
more
LME Morning - Metals snap losing streak as crude prices fall -
more
Edward Meir of MF Global Morning Comments - Copper snapped a three-day losing
streak yesterday and ended slightly higher, as a sizable retreat in oil prices
off their intraday high of $119.70 (on Brent) stabilized both metals and
US stocks to a sizable extent. In fact, for most of this week, we have seen
a noticeable decoupling between metals and energy; as energy prices moved
higher, the latter pulled back as implications of higher inflation and interest
rates were perceived to be a negative for metals demand. On the other hand,
oil price pullbacks have had the opposite effect, and we are seeing more
evidence of this today; with oil prices now down, a decent rally has set
in over the copper complex, while the rest of the group is also seeing modest
gains. In other markets, the dollar is slightly stronger today, and back
under the $1.38 mark against the euro, while gold prices are steady. US stocks
are expected to open slightly higher. The situation in Libya seems to be
careening towards some sort of climax, although in fits and starts. The Libyan
leader finds himself increasingly isolated, (and was even rumored to have
been shot yesterday) as more members of his regime desert him and as more
cities fall to the rebels. In addition, the rebels are much better organized
now, relatively well armed, and apparently plotting to take over Tripoli.
By early next week, the game could be up for the clearly deranged Muammar
Ghaddafi. On the oil side, the Saudis have ring-fenced the potential damage
emanating from this crisis by taking clear steps to step up production. Part
of the problem here is that Libyan oil is of the "sweet" variety and not
compatible with most Saudi grades, but the Saudis have reassured European
refiners that they would be able to offer an equivalent amount of “Arab
Extra Light”, which is close in composition, or failing that, blend
some of other grades to get the desired purities. In terms of the latest
on Libyan oil flows, assessments vary depending on the source. The IEA says
for example, that anywhere between 500,000-750,000 barrels/day of oil is
not flowing out, while Italy’s ENI, one of Libya's largest customers,
says about 1.2 million barrels/day-- practically all of the country’s
exports-- is shut down. We assume the higher number is more accurate, given
that ports and terminals in the country are not operational as well, although
most are in rebel hands. Going into next week, we suspect that downward pressure
on oil markets will likely continue, particularly as investors start to discount
the likely fall of the Libyan leader. This, as we mentioned earlier, should
provide a measure of support to both the metals and US equity markets, at
least until the next flashpoint appears on the radar. ... Nickel is
at $27,770, up $265, and recovering some of this week’s earlier
losses. (read Ed Meir's complete morning base metals report
here)
(MB) Jinchuan Group has slashed its benchmark nickel price by over 2% as
London Metal Exchange prices plunge and domestic sales weaken
ENRC to Get Part of $2 Billion Chinese Loan to Kazakhstan Fund -
more
(AAR) The Association of American Railroads (AAR) today reported freight
traffic continues to register gains with U.S. railroads originating 296,980
carloads, up 8.2 percent compared with the same week last year, for the week
ending Feb. 19, 2011. Intermodal volume for the week was also up, totaling
233,993 trailers and containers, up 16.9 percent compared with the same week
in 2010.
The Mad Hedge Fund Trader - Each $1 increase in the price of oil jumps gasoline
prices by 2.5 cents. Each one cent rise in the cost of gasoline takes $1
billion out of the pockets of consumers.
(China) Industry contributed 49% to economic growth in 2010 -
more
China's refined
lead and tin imports fall in 2010 - China's refined lead and tin and
imports tumbled in January, while refined zinc and nickel imports saw healthy
increases, according to Feb. 25 figures from the General Administration of
Customs (GAC). -
more
World Consumption
Of Ferro-Chrome In CY 2011 Is Anticipated To Come Up To 9.50 Million Tons=
A Forecast By Yildirim CEO And President Of Eti Krom / Turkey - According
to a forecast of the world demand for ferro-chrome in 2011 said on the 18th
of February by Mr. Robert Yuksel Yildirim, CEO and President of Eti Krom
Inc., which is a major producer of chrome ore and ferro-chrome in Turkey,
the total quantity of ferro-chrome to be consumed in the world in the calender
year (January - December) of 2011 is expected to come up to 9.50 million
tons on material base, having a considerable increase compared to that (8.4
million tons) recorded in 2008. -
more
Paliudju Governor
Gives Ultimatum to PT Inco - TEMPO Interactive, PALU:Central Sulawesi Governor
H.B. Paliudju has given an ultimatum to PT International Nickel Corporation
(Inco) to conduct mining activities in Morowali regency, especially in the
Bahodopi and Kolonodale blocks. -
more
Sherritt expects
production declines in Cuba for ‘11 - In a pessimistic outlook for its
Cuban operations this year, Canadian energy and mining concern Sherritt
International expects production declines in all its business areas for 2011.
-
more
Universal Stainless
Announces Bar Base Price Increases - Universal Stainless & Alloy Products,
Inc. today announced a base price increase of 5% on all stainless and low
alloy grade bar products manufactured at its Bridgeville and Dunkirk facilities.
The increase will be effective for all new orders entered March 1, 2011.
Current material and energy surcharges will remain in effect. -
more
Vale Profit Quadruples,
Tops Estimates on Higher Iron-Ore Prices - Vale SA, the world’s largest
iron- ore producer, said its fourth-quarter profit almost quadrupled, beating
analysts’ estimates, because of surging prices for the raw material
used to make steel. -
more
Severe weather,
forecasting could prompt force majeure rethink - Worsening weather and better
forecasting methods could push the mining sector to change force majeure
provisions in supply contracts and sharpen how blame is allotted when storms
or floods disrupt regular business. -
more
Steel makers feel
the pain - China's 77 large- and medium-sized steel mills reported lower
than expected profit margins last year, mostly due to high raw material costs,
according to a report from the China Iron and Steel Association released
Thursday. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) Exxon, Shell, BP Said to Have Been
Hacked Through Chinese Internet Servers // Food-Price Threat Worsened by
Government Mistrust of Business, Olam Says // China Wage Gains Undermine
Global Bond Investors as Inflation Accelerates // Swiss Franc, Yen Climb
as Deepening Libya Violence Spurs Demand for Safety // Surging Prices From
Singapore to Vietnam Herald Higher Rates, Currencies // India's Sensex Falls
Most Since November 2009 on Inflation, Oil Concerns // Christchurch Quake
Death Toll Will Climb, Authorities Say // Wheat Resumes Plunge as African
Unrest Drives Away Speculators // Europe Economic Confidence Reaches Highest
Since Late 2007 on German Boom // Saudi Arabia's Social Programs, Popular
King May Hold Off Mideast Tumult // Saudi Arabia Pledges OPEC Supplies
to Replace Lost Libya Oil // Economy: Jobless Claims Fall, Consumer Confidence
Climbs // Hedge Funds Borrow the Most Since 2007 to Purchase U.S. Stocks
// U.S. Government Shutdown Looms as Lawmakers Deadlock Over Budget Proposal
// U.S. Stocks Retreat on Concern Oil Rally Will Hurt Economy
The Euro is currently trading 3/10 of 1% higher against the US Dollar. NYMEX
crude has traded choppy this morning, flirting with $100, and is presently
trading at $99.62/barrel. Gold is up nearly 2/10 of 1% and silver is down
1.1%. Base metals for the most part, had a rather uneventful day, most ending
slightly lower. Except for nickel. Nickel fell hard early and never was able
to recover. For the day, Dow Jones reports three month nickel ended at
$12.48/lb
.
Stockpiles of nickel stored in LME approved warehouses rose yesterday and
now stand over the 126,600 tonne level. This was nickel's third simultaneous
price drop, but the first day the metal actually appeared weak in trading.
The Commerce Department noted durable good orders rose 2.7% in January, but
as MarketWatch noted "Excluding a 27.6% increase from the transportation
sector, orders were down 3.6% last month, the weakest showing since January
2009." And our 'oh crap' graph for the day is
here. In case you were wondering why everyone is nervous
about what the price of gas might do to the economic recovery.
(MB) Credit Suisse has raised its forecast for nickel on better market
fundamentals, as increased consumption from the stainless steel sector and
constraints on nickel pig iron production have seen prices trade above $28,000
per tonne in February. Nickel will trade between $29,000 and $30,000 per
tonne by the end of the second quarter, Credit Suisse said.
(MarketWatch) - At current levels, claims appear to be consistent with a
modest pace of hiring. The economy’s gained an average of 83,000 jobs
a month over the past three months. Still, that falls well short of the job
growth required to drive down the nation’s unemployment rate —
9% in January. Companies have to hire about 125,000 new workers a month just
to keep up with the natural growth of the labor force -
more
(Dow Jones) Facing rising materials costs, Nippon Steel Corp. will ask auto
makers and other major customers to accept a price increase of roughly Y20,000
a ton for steel products starting in April, The Nikkei reported in its Friday
morning edition.
Fed’s Hoenig: Easy Money And Too-Big-To-Fail Must End -
more
Fourth Annual Saving Assessment Indicates Many Americans Still Struggling
-
more
Fed’s Plosser: Would Consider Early QE2 End If Economy Accelerates More
-
more
Deripaska Fails
in Bid To Swing Norilsk Nickel Shareholders Vote in US, Europe - Oleg Deripaska
will fail to swing Norilsk Nickel’s international shareholders into
voting for his slate of candidates for the new board of directors at Norilsk,
according to a report and proxy vote recommendation by Institutional Shareholder
Services/Risk Metrics, a Washington, D.C.-based advisory specialist. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:10 am CST show 3 month nickel trading around $.45/lb
lower, with other
London traded base metals much quieter and mostly lower. The Euro is trading
1/4 of 1% higher against the US Dollar. NYMEX crude is up 3-3/4% and trading
at $101.78/barrel. Gold is up nearly 4/10 of 1% and silver is off slightly.
In overnight trading, Asian markets ended lower, with China up 1/2 of 1%.
European markets are trading lower this morning and US futures are also lower
as oil continues to climb. Nickel inventories jumped yesterday.
Reuters morning - Copper falls on economy worries, high supply -
more
LME Morning - Metals hammered as risk aversion remains high -
more
US Imports of Stainless Steel Mill Products -
more
Commodity/Economic Comments
Edward Meir of MF Global Morning Comments - Copper prices fell to their lowest
level in nearly a month today, as the energy-induced price rise continues
to take its toll on metals. In today’s action, although metals opened
sharply higher in Asian trading, the gains were short-lived, with prices
down as European trading got underway. We are now mostly lower, although
copper has regained earlier losses and is now slightly higher. Of course,
all eyes remain on the energy markets, where $5-$8 up moves now seems to
be a daily occurrence. The market's explosive tone is attributable to fears
that Libyan export levels are steadily decreasing, something that the markets
were unsure about at the end of last week. This is not surprising given the
chaos engulfing the country and the fact that most of Libya's ports are not
operational. It is very hard to get exact readings as to how much of the
country's approximately 1.1-1.5 million barrels a day are bottled up. The
Financial Times says that about half the country's exports have been impacted,
but we would not be surprised to see Libya's entire export flow stop in the
days ahead. What is also making matters worse, is the fact that neither the
Saudis, OPEC, nor the IEA, are seriously hinting that extra barrels will
be on offer any time soon. The IEA seems to want to follow OPEC's reluctant
lead, while the Saudi's excuse is that they will provide oil if it is needed.
This argument is sounding increasingly hollow, especially now that there
are real disruptions on hand. This may explain why reports have surfaced
in the last 30 minutes or so that the Saudis have indeed initiated talks
with the Europeans about releasing extra barrels. As these entities mull
their next move, Brent soared to just under $120 earlier in the day, before
receding to around $115 as of this writing. Gold is now at a seven week high,
while US stocks are expected to open lower once again. Out of Libya,
anti-government protesters reportedly have seized control of the country's
third-largest city, as well as another town. The eastern part of the country
has now all but broken off, and the opposition is vowing to "liberate" Tripoli
shortly. Apparently, there are no police in Tripoli, so people have formed
committees to guard their houses, reminiscent of what was happening in Cairo.
Reports of casualties continue to mount; an army unit loyal to Gaddafi attacked
protesters congregating in a Tripoli mosque today, blasting a minaret with
anti-aircraft missiles. Yesterday, President Obama said the bloodshed in
Libya "is outrageous and it is unacceptable," and he directed his administration
to prepare a full range of options, including possible sanctions. French
President Sarkozy raised the possibility of the EU cutting off economic ties,
while another proposal envisions declaring a no-fly zone over Libya to prevent
it from using warplanes. The UN Security Council also held an emergency meeting
condemning the crackdown. None of this going to sway the clearly deranged
Libyan leader, but if there is any good news in all this, it is that his
increasingly macabre behavior should hasten his exit as supporters desert
him. Either way, something will have to give over the next few days-- either
the Libyan leader will be forced out, or extra barrels have to be released
onto the market very quickly in order to stem the price rise and make the
waiting period tolerable. With oil at $120 and threatening to move higher,
the option of doing nothing is simply getting too dangerous for the world
economy. A potential flashpoint to watch--and one that would suggest all
bets are off—is the situation in Saudi Arabia. Apparently, hundreds
of people have backed a Facebook page campaigning for a "day of rage" across
the kingdom on March 11 demanding, among other things, an elected ruler,
greater freedom for women, and the release of political prisoners. King Abdullah
– just back from a three-month medical leave–announced a financial
package worth an estimated $36bln yesterday that includes a 15% salary rise
for public employees, reprieves for imprisoned debtors, and financial aid
for students and the unemployed. It remains to be seen if this will be enough
to placate a restless public, but we guess we will find out soon enough.
.... Nickel is at $27,700, down $980, and getting hit more than most
today. (read Ed Meir's complete morning base metals report
here)
(PR) Universal Stainless & Alloy Products, Inc. today announced a base
price increase of 5% on all stainless and low alloy grade bar products
manufactured at its Bridgeville and Dunkirk facilities. The increase will
be effective for all new orders entered March 1, 2011. Current material and
energy surcharges will remain in effect.
(PR) Effective with orders acknowledged on or after February 23, 2011, ATI
Allegheny Ludlum is increasing base prices by 5 to 8% for nickel-based alloys
and high nickel bearing stainless steels in the sheet, plate and Precision
Rolled Strip® product forms including, but not limited to the following:
-
more
(SBB) Chinese stainless exporters have raised their grade 304 hot and cold
rolled coil offer prices by $300-370/tonne in line with higher global nickel
and Asian stainless prices.
(Yieh) China Steel Corp. (CSC) announced the latest prices for April and
May delivery. The company has decided to raise its all product prices by
12.1% on average as same as the market’s forecast.
(China Daily) China's imports of iron ore stood at 618.64 million tons in
2010, down 9.13 million tons compared to the previous year, figures released
Thursday by the China Iron and Steel Association showed.
(NM) European premiums for nickel briquettes held at seven-month highs this
week, as traders said a cut in output by Vale this year would support prices,
but upcoming projects due to bring supply online could cap gains.
(Interfax) Details concerning the latest pricing mechanisms to be used by
global iron ore giants Vale, Rio Tinto, BHP Biliton and Fortescue Metals
Group Ltd. (FMG) were released on Feb. 24 by Platts, the compiler of the
index on which prices are to be based.
(ATA) The American Trucking Associations’ advance seasonally adjusted
(SA) For-Hire Truck Tonnage Index increased 3.8 percent in January after
rising a revised 2.5 percent in December 2010. The latest jump put the SA
index at 117.1 (2000=100) in January, which was the highest level since January
2008. In December, the SA index equaled 112.7.
An increase in nickel
laterite shipments to China this month may signal a revival in the country's
nickel pig iron production after a slump in the past few months on the back
of constrained ore supply and Beijing's push to meet energy emission targets.
-
more
Nisshin: consolidation
key in Japan stainless sector - Consolidation is key for Japan's stainless
steel industry to survive global competition, the president of Japan's
fifth-biggest steelmaker Nisshin Steel said on Thursday. -
more
Domestic Price Of
Ni-Based Stainless Scrap In Japan Rises Further To Yen 220,000 / Ton = High
Scrap Price Since May 2010, Being Stimulated By A Further Rise Of LME Nickel
Price - Reflecting a further and sharp rise of nickel price at LME, domestic
price of nickel-based stainless steel scrap (new clippings) to be purchased
by stainless steel companies in Kanto area of Japan has risen to a level
of Yen 215,000 - 220,000 per metric ton delivered to mills, having had a
rise of Yen 20,000 per ton compared with that prevailed on the end of January.
-
more
-China to study
iron ore, coal reserve plan -CISA - China will study plans to create reserves
this year for iron ore and coal as national strategic resources, the China
Iron & Steel Association (CISA) said on Thursday. -
more
Steel prices will
continue to increase: Tata Steel - Tata Steel today said prices of steel
will continue to show an upward trend in near future due to rise in cost
of raw materials. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) Deutsche Bank Banned From Derivatives
Trading in South Korea // Chinese Consumer Confidence Slides on Inflation
Concerns // BOJ Yamaguchi Cautious on Economic Outlook Due to Deflation //
Asia Stocks Fluctuate as Oil Surges on Middle East; Airline Shares Decline
// Merkel Says EU Leaders Weighing Extension of Greek Aid // Dubai Can’t
Kick Building Habit as Property Glut Expands // Turkey Mounts Biggest Evacuation
in Its History to Rescue 5,000 From Libya // Oil Rises to 28-Month High on
Libya, Middle East Supply Concern // Libya Revolt Widens as Expatriates Flee,
Qaddafi Vows to Fight // Oil Rises to 28-Month High on Libya, Middle
East Supply Concern // European Stocks Extend Loss on Automakers, Resource
Stocks, Libya Concern // Goldman's Blankfein Fought Raising Salaries Before
His Tripled // Sales of U.S. Existing Homes Climb to Eight-Month High //
Fed's Hoenig Says U.S. Should Break Up Largest Financial Firms // Oil Rallies,
Stocks Retreat on Libya Revolt; Euro Gains
The Euro is now trading over 3/4 of 1% higher against the US Dollar. NYMEX
crude is up 4-1/4% and trading at $99.47/barrel. Gold is up over 1%, while
silver is up over 1.1%. Base metals ended the session mixed and quiet, after
early morning losses were dented by the climbing Euro. Indicator charts show
nickel opened lower, then spent the day in an erratic climb. For the day,
Dow Jones reports three month nickel closed at $12.98/lb
. Worldwide
stockpiles of nickel stored in LME licensed warehouses slipped yesterday,
giving back all of the prior days gains plus some, and now total just
under the 129,200 tonne level. Sucden finally updated their day old
nickel trading chart
(chart here). Technically speaking, from the SStoch and
RSI readings, the nickel market is oversold. After two solid weeks of gains,
the Baltic Dry Index has spent this week declining. NIckel may have lost
ground the last few days but still looks remarkably strong considering the
threat higher oil prices are to the economic recovery. Oil prices is having
the most negative effect on worldwide equity markets. What is going on in
Libya is beyond comprehension in this day and age and the ease with which
these nations are melting down, has traders nervous about who could be next.
But this is demonstration today is also concerning.
This wasn't in Libya, or Algeria, or Bahrain - this was in democratically
controlled Greece. Maybe this isn't an African or Muslim nation problem.
Maybe this is a Mediterranean problem. Someone needs to check what is in
the water!
(MFG) European premiums for nickel briquettes held at seven-month highs this
week, Reuters reports, with levels ranging from $350-800, their highest level
since July 2010. Premiums for full-plate nickel were at $50-200, versus $50-$150
in late January. News that Vale will lose around 5% of its total 2011 nickel
production due to a 16-week shutdown of a smelter furnace in Canada is viewed
as supportive.
(ET) Jindal Stainless (JSL) is in talks to buy Ahmedabad-based Shah Alloys
as part of lenders-initiated exercise to revive the ailing Mumbai-based
steelmaker.
Economists React: ‘Growing Sympathy’ for BOE Rate Increase -
more
Canterbury Earthquake -
more and
Australian coverage
here
Eti Krom sees global
stainless steel output exceeding 35 million tonnes in 2011 - Eti Krom foresees
that China will boost stainless steel output to 15 million tonnes level in
2011 and that India will join the rapid growth path of China in Asia. -
more
Courtesy AISI - In
the week ending February 19, 2011, domestic raw steel production was 1,820,000
net tons while the capability utilization rate was 75.3 percent. Production
was 1,720,000 tons in the week ending February 19, 2010, while the capability
utilization then was 71.1 percent. The current week production represents
a 5.9 percent increase from the same period in the previous year. Production
for the week ending February 19, 2011 is up 0.6 percent from the previous
week ending February 12, 2011 when production was 1,809,000 tons and the
rate of capability utilization was 74.8 percent.
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:10 am CST show 3 month nickel trading around $.17/lb
lower, but off session
lows, with other London traded base metals lower as well. The Euro is
trading over 1/2 of 1% higher against the US Dollar at the moment. NYMEX
crude is up nearly 1/2 of 1% and trading at $95.88/barrel. Gold is up 1/3%
and silver is over 1/2 of 1% higher. In overnight trading, Asian markets
ended lower, with China up 1/3 of 1%. European markets are trading lower
this morning, but US futures show Wall Street should bounce back from yesterday's
drop. Nickel inventories gave back all the gains from the prior day.
Bloomberg morning - Copper Drops for Third Day Amid Concern Mideast Unrest
May Derail Recovery -
more
LME Morning - Metals slip as traders adopt 'risk-off' approach -
more
Edward Meir of MF Global Morning Comments - Base metals fell sharply yesterday,
with copper now at a three-week low, as worries about unrest in Libya revived
fears of potential inflationary shocks to the system in the wake of further
cutbacks in that country’s oil flows. As it now stands, at least three
major oil companies have now halted production in Libya, with Italy's ENI
and Spain's Repsol joining Germany's Wintershall in winding up operations.
(A small Austrian operation also said it was curtailing production earlier
today). In total, some 330,000 barrels per day are now offline, but the numbers
could rise as we still do not have a clear idea how much oil is being impacted
by striking Libyan workers deep inside the country. In addition, Libya's
ports have been closed, and this will undoubtedly reduce exportable production
even further. In the meantime, in a defiant speech on Tuesday, Libyan leader
Muammar Gaddafi refused to step aside, and threatened tougher action against
protesters. However, rebel troops are still in control in the east, while
in Tripoli, the Interior Minister has resigned. The Financial Times reported
yesterday that another speech by the Libyan leader is scheduled for later
today, with Qaddafi apparently ready to devolve some power, but so far, there
is no sign of that and we doubt this will even happen. Despite the stronger
tone in the oil markets early on yesterday, some of the earlier price advances
were rolled back on reassurances about supply made by Saudi Arabia and from
IEA officials. Saudi Arabian Oil Minister Ali al-Naimi said OPEC would meet
any real supply shortages, but so far, the Saudis seem to be content to respond
to the crisis with words rather than extra barrels. At this point, it very
well could be up to the IEA to act first, as its members hold 1.6 billion
barrels of emergency oil stocks, last tapped in 2005 after Hurricane Katrina.
Right now, metals are off once again, although the magnitude of the decline
is not as sharp as of this time yesterday. Oil prices are higher as well,
but the dollar is weaker against the Euro, never assuming its flight-to-safety
role in this particular crisis, as might have been expected. Oil prices are
up another $1.60 on Brent and by $.50 on WTI, although here too, the extent
of the rise is not as sizable as yesterday's sharply higher opening. US stocks
are called to open higher after yesterday’s steep sell-off. ... Nickel
is at $28,250, down $400, but still holding up relatively well. (read
Ed Meir's complete morning base metals report
here)
(Yieh) Taiwan’s stainless steel market was caught in price war previously.
Most buyers would stay in wait-and-see position rather than placing order
at that moment.
(Interfax) - While crude steel production is expected to reach 660 million
tons in 2011, and apparent consumption is set to increase 5 percent year-on-year
to 632 million tons, China expects to see an iron ore surplus of 70 million
tons this year, state media reported Feb. 23.
(JMB) Sumitomo Metal Mining announced on Tuesday the subsidiary, Sumitomo
Metal Mining Philippine Holdings Corporation, which was established in 2010
as regional headquarters for nickel business, started the operation.
(Reuters) Nickel premiums hold strong, Vale output in focus
(SBB) Austenitic substitution looms in Asia as nickel soars
(MB) The trading value of cobalt and molybdenum contracts listed on the London
Metal Exchange totaled more than $430 million for the year ended Feb. 21,
the exchange said Tuesday.
(Reuters) Diversified miner Sherritt International reported an increase in
quarterly earnings on Wednesday, citing higher nickel and coal prices.
David Kelly, chief market strategist at JPMorgan Funds - "If the price of
a gallon of milk goes up the American consumer is poorer but the American
farmer is richer. If the price of oil goes up, the American consumer is poorer
and (Iranian President Mahmoud) Ahmadinejad is richer."
(SM) According to the American Forest & Paper Association's January 2011
U.S. Paperboard Report released today, total boxboard production increased
by 8.3% compared to January 2010, and increased 5.5% from last month.
(China) Inflation drives China's consumer confidence down in last quarter
-
more
Price, Availability
Concerns Dominate DOM Market - Distributors say reduced capacity and
rising steel prices are the biggest threats to an otherwise healthy market
for drawn-over-mandrel and other mechanical tube products. -
more
Industry steels
itself for change in next 5 years - The China Iron and Steel Association
(CISA), the nation's steel lobby said on Monday that steel mills in north
and northeastern China should stop enlarging their production capacities
during the 12th Five-Year-Period (2011-2015), as the industry prepares for
large-scale changes. -
more
ThyssenKrupp plans
hefty steel price hike - ThyssenKrupp, Germany's biggest steelmaker, said
it planned a hefty increase of its flat carbon steel products in the next
two quarters amidst a continuing positive trend in Europe. -
more
Deripaska Rebound
From Near-Crash Stares Down Potanin - On a Sunday afternoon in January, Russian
billionaire Oleg Deripaska gets ready to leave his sprawling mansion in Zhukovka,
a wealthy suburb of Moscow where his neighbors include President Dmitry Medvedev
and Prime Minister Vladimir Putin. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China Said to Order Banks to Assign
Greater Risk to Local-Government Loans // Hong Kong's Tsang May Boost Budget
Handouts to Give Relief From Inflation // Yuan Falls Most in Three Weeks
as Tension in Libya Spurs Oil Price Gains // China's Stocks Decline on Concern
Mideast Tensions to Boost Oil, Inflation // BHP to Buy Chesapeake Shale Assets
for $4.75 Billion Cash // New Zealand Dollar Slumps to Year's Low After
Christchurch Earthquake // Japan Debt Outlook Lowered by Moody’s on
‘Inexorable’ Debt // Mersch Says ECB May Warn of Upside Inflation
Risks Next Week // Qaddafi Says He Hasn't Fled Libya as Regime Unravels //
German Voter Disapproval of Greek Bailout Muddles Aid Talks: Euro Credit
// Iran Warships Enter Suez Canal, Egypt's State-Run MENA Says // Wal-Mart
Declines After U.S. Sales Miss Retailer's Forecast // Oil, Bonds Rally, Stocks
Tumble as Mideast Unrest Intensifies
The Euro is presently trading over 2/10 of 1% lower against the US Dollar.
Bloomberg is reporting NYMEX crude is up 6.3%, but it is trading at
$91.42/barrel, which is actually lower than it was this time yesterday,
so something is broke. Gold is down 6/10 of 1% and silver is off nearly 3.1%.
Base metals ended the session lower on what could best be described as trader
risk aversion. Nickel opened much lower and did a whole lot of nothing the
entire day. Dow Jones reports three month nickel ended the day at
$13.00/lb. Considering today's
commodity meltdown, nickel holding onto $13/lb could speak volumes. Nickel
stockpiles in LME approved warehouses rose for the first time in to weeks
yesterday and now stand just over the 129,700 tonne level. Sucden hasn't
updated its daily chart since the 17th. Metals news took a back seat to other
world news. New Zealand was hit by a deadly earthquake overnight
(chart here) and has one eye on an approaching tropical
storm
(chart here). Australia is watching two tropical
storms of their own
(chart
here). Libya is on the verge of a civil war, Egypt announced Iran has
two warships in the Suez Canal, and Somali pirates killed four American hostages
this morning.
Fear of 'Catastrophic' Crash Rising Despite Bull Market -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $.18/lb
lower, with all London
traded base metals suffering from "risk aversion" this morning. The
Euro is currently trading nearly 1/10 of 1% lower against the US Dollar.
NYMEX crude is up 7-1/3% this morning and trading at $92.55/barrel on Libya
worries. Gold is down 2/3 of 1% and silver is lower by 2.6%. In overnight
trading, Asian markets fell with China off 2.6%. European markets are
trading lower this morning and US futures show Wall Street will open lower.
Nickel inventories broke a pattern yesterday and rose. As we stated yesterday,
the increase in the price of oil is starting to worry investors on the impact
it might have on the recovery. New Zealand is recovering from a deadly earthquake
near Christchurch. Libya appears to be moving closer to a civil war as Qaddafi
refuses to step down.
Bloomberg morning base metal news - Copper Drops for a Second Day as Oil
Stokes Inflation Concerns -
more
LME Morning - Metals plunge as investors seek out safer assets -
more
Edward Meir of MF Global Morning Comments - We have a mixed session on Monday
in the metals, as copper slipped slightly, while most of the others managed
to carve out decent gains, with nickel and aluminum each hitting 34 and 29-month
highs respectively. Markets were primarily focused on one thing only for
much of the day yesterday, and that was the deteriorating situation in Libya,
along with its potential impact on about 1 million barrels a day of crude
oil exports. Brent hit $108.70 at one point yesterday, as investors braced
for oil companies sending their staff out of the country (which most did)
while reducing production as well (with only one doing so thus far). Another
potentially serious supply bottleneck could be forming in Libya's Nafoora
oilfield, which provides the bulk of the country's oil output, and where
workers are apparently are on strike, this according to Al-Jazeera. Reuters
could not immediately confirm the report, but that was apparently enough
for oil traders to hear. In the meantime, the situation in the country seems
to be deteriorating quickly. With nothing in the way of press reports coming
out, information gleaned from private citizens reveals a government that
is in considerable disarray, having apparently lost control of Benghazi,
while struggling to survive in Tripoli. In the capital, reports surfaced
of many civilian casualties, as soldiers, many of them mercenaries, fired
on protesters and on groups of mourners from the back of pickup trucks and
helicopter gunships. Libyan diplomats have started to defect (including the
country's UN delegation) as did two fighter pilots, who flew their jets to
Malta after refusing orders to fire on protesters. Libyan leader Muammar
Gaddhafi was shown getting out of a car late on Monday, saying that he was
in "Tripoli and not in Venezuela", but gave no further indication as to what
his intentions were. We could be just at the start of a major move higher
in energy prices, as the unrest in the Middle East will likely continue for
many more weeks, if not months, to come. With so many key producers potentially
vulnerable to varying degrees of turmoil, prices should be able to move higher
much more effortlessly, while any corrections will likely prove short-lived.
Indeed, flare-ups in countries like Kuwait and Saudi Arabia may be enough
to send prices to their 2008 highs if anything remotely resembling the unrest
we have seen thus far grips either of these countries. But for the short-term,
all eyes will be on Libya, as unlike many other countries that have reported
unrest so far, this the only one that has the potential to seriously disrupt
the markets—and it has. In the meantime, metals are sharply lower today,
reacting less to oil prices, which are up yet again, and more to the declines
evident in a number of international equity markets. Zinc and lead are down
hard, with the former losing about 6% alone in the Shanghai session, one
of its sharpest declines in some three years. We suspect today’s selling
in metals is largely attributable to the fear that the surge in oil prices,
although quite justified, will inevitably lead to bouts of higher inflation
and interest rates, resulting in slower growth down the road. This is certainly
a legitimate concern, considering that inflation rates were already rising
in a number of emerging markets, and the latest spike higher in oil will
only exacerbate the problem. Focus in this regard is primarily on China,
which has put through a number of interest rates and reserve requirement
hikes of late, and will likely accelerate the schedule going forward as inflation
readings ramp-up yet again. .... Nickel is at $28,800, down $500, and
holding up relatively well considering the performance in some of the other
metals. (read Ed Meir's complete morning base metals report
here)
(Yieh) BHP Billiton, the world’s mining giant has informed Japan’s
major steel mills that the company planned to take monthly pricing system
to replace the current quarterly pricing system from this April.
(Interfax) President Deng Qilin of the China Iron and Steel Association (CISA)
said at the group's Annual General Meeting on Feb. 21 in Beijing that the
country's steel industry will face a number of challenges throughout the
12th Five-Year Plan period, including increasing production costs and the
domestic economy's slowing growth rate, according to a Feb. 22 report on
the CISA Web site.
(MFG) China's crude steel demand is expected to grow by 2.6-4.6% annually
over the next five years, the China Securities Journal reported on Tuesday,
citing the China Iron & Steel Association as a source. CISA is forecasting
China's annual crude steel demand will reach 670-750 million tons for the
five years to 2015.
(MP) The European contract price of ferro-chrome for the second quarter of
2011 will settle at $1.40/lb, up from $1.25/lb in the current quarter, on
increasing demand and production costs, according to Turkish ferro-chrome
producer Eti Krom
(Interfax) Baosteel Resources Co. Ltd., a wholly-owned subsidiary of Baosteel
Group, has signed a contract with Indonesia-based Modern Group concerning
the exploration of lateritic nickel on the Indonesian Island of Sulawesi,
Baosteel Group announced Feb. 21.
Minara's Murrin
mine returning after flood - Minara Resources is focussed on returning
the Murrin Murrin Nickel mine to full production after recent heavy rains
and flooding affected operations. -
more
Baosteel Unit
Inks Nickel Deal With Indonesian Modern Group - A unit of China's Baosteel
Group has signed an agreement with Indonesian Modern Group to jointly develop
nickel laterite deposits in southeast Sulawesi, China's State-Owned Assets
Supervision and Administration Commission said Monday. -
more
Iron Ore - Spot
prices ease; Hedland Port shuts ops - Spot iron ore prices edged down on
Tuesday because of a lull in trading, but the closure of Australia's biggest
iron ore terminal at Port Hedland is likely to give a boost to prices in
the short term. -
more
Australia iron ore exports near halt as cyclone approaches - A cyclone bearing
down on Western Australia on Tuesday has brought iron ore shipments from
the world's top exporter to a near standstill as ports shut ahead of the
storm. -
more
ThyssenKrupp sees
brighter carbon steel prospects - Prospects for the carbon steel industry
in Europe have continued to improve in recent months, Germany's biggest
steelmaker, ThyssenKrupp, said on Tuesday. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China Is Said to Tell Banks to Prepare
Contingency Plans for Credit Crisis // Shanghai, Guangzhou Limit Home Purchases
as Government Intensifies Curbs // HSBC Recommends Avoiding China Stocks
Until Second Half 2011 // China Raises Fuel Prices After Crude Oil Climbs
Above $100 // G-20 Overcomes China Opposition to Agree on Yardsticks to Gauge
Imbalances // Nations May Expand Food Stockpiles, Subsidies, Traders Say
// Qaddafi's Son Warns of Libya Civil War Risking Oil Wealth as Revolt Widens
// BHP's Kloppers Considers Takeovers Even After $80 Billion Investment Plan
// German Business Confidence Unexpectedly Rises to Record // Pimco Says
Spain Is `Certainly Getting Better'; Greek Default Risk Remains // Europe
Services, Manufacturing Index Hits 4-Year High // Maersk Orders Up to 30
of Biggest Container Ships on Oil, Trade // ECB Officials Signal They May
Support Higher Rates on Inflation Concerns // European Stocks Fall as Libya
Concern Escalates; Eni Drops, Merck Advances // Yen, Dollar Strengthen on
Speculation Unrest in Middle East Will Intensify //
The Euro continues to trade lower against the US Dollar by just over 1/10
of 1%. NYMEX crude is now up nearly 6% and trading at $91.30/barrel.
Gold is up nearly 1.2% and silver is higher by 3-2/3%. Base metals ended
the session mostly higher. Indicator charts show nickel opened higher,
retreated early, then climbed back into the green. For the day, Dow Jones
reports three month nickel ended the day at
$13.29/lb. We are trading
at price levels not seen since May 2008. Nickel inventories stored in LME
approved warehouses ended last week with its ninth consecutive drop and now
stand just over 129,200 tonnes. After ten consecutive increases and an increase
of 258 total points, the Baltic Dry Index fell back 6 points today. AK Steel
announced a price increase for stainless steel late Friday, and you can just
about bet other US producers will follow suit. Nickel is getting support
primarily from the Vale shutdown announced on Friday. Australia has two tropical
storms churning off its west coast causing mostly shipping problems at the
moment. The revolution that started in Tunisia, then spread to Egypt, and
is now causing a bloody uprising in Libya, as well as mass demonstrations
in Algeria, Morocco, Iran, and Yemen is spreading thru the area so fast,
that many are now fearful of what would happen if Saudi Arabia is next. Al
Jazeera English is probably one of the best places to get updated news online
(here)
Oil is much higher today on concerns. They go too high, too fast, and the
revolutions in North Africa and the Middle East could slow the world economic
recovery down.
(Dow Jones) Yuan appreciation will benefit Chinese steelmakers as the total
value of their imports, including iron ore and coking coal, is larger than
the value of steel exports, an executive with one of China's largest steelmakers
said Sunday.
(SBB) World nickel market to be in balance this year - Norilsk
Number of the Week: The Perils of Inequality -
more
Research north of Sault points to global warming -
more
A Full Frontal View of the World’s Uneven Monetary Policy -
more
18 Sobering Facts Which Prove That The Middle Class Is Not Being Included
In This “Economic Recovery” -
more
Russia's Rusal
drops objection of Norilsk Nickel's share buyback plan - Russia's aluminum
producer Rusal said Monday it has withdrawn its earlier objection to Norilsk
Nickel's plan to buy back common shares and American depositary shares through
tender offers. -
more
Norilsk: ISS Backs Early Termination Of Norilsk Directors - ISS Proxy Advisory
Services, an independent advisor to institutions, has recommended that Russian
miner OAO Norilsk Nickel shareholders vote for early termination of the existing
Norilsk board of directors and support incumbent independent non-executive
directors--Bradford Alan Mills and John Gerard Holden--Norilsk said Monday.
-
more
BHP CEO sees high
iron ore price for up to 2 years - Top global miner BHP Billiton's chief
executive sees iron ore prices staying strong for as long as two years, and
is confident the company's profit margins will remain robust, even as costs
escalate. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.04/lb
lower and off earlier
highs. Most London traded base metals are now trading lower. The Euro is
trading a little over 1/10 of 1% lower against the US Dollar currently. NYMEX
crude is up over 3% on Libya concerns, and trading at $88.90/barrel. Gold
is up 8/10 of 1% and silver is over 2-3/4% higher. In overnight trading,
Asian markets ended higher, with China up 1.4% and Hong Kong lower. European
markets are trading lower this morning as well. Nickel inventories fell Friday.
US markets are closed for holiday. Here are alerts on Tropical Storm Dianne
(chart) and Carlos
(chart) in Australia. Carlos appear to be the immediate
threat.
Reuters morning base metal news - Copper steadies on Libya tensions -
more
LME Morning - Pause in copper gives rest of complex chance to catch up -
more
Outokumpu March Stainless Steel Surcharge -
pdf here
Commodity/Economic Comments
Edward Meir of MF Global Morning Comments - Copper ended firmer on Friday,
as investors brushed off Thursday's reserve requirement hike by the Chinese,
and continued to pile into base metals. However, for a change, the main action
outside of copper, with aluminum, lead, and zinc, all posting sharp advances.
Nickel soared on the news that Brazil's Vale said it will lose around 5%
of its total 2011 nickel production due to a 16-week shutdown of a furnace
in Canada, resulting in a loss of an estimated 15,000 tons of refined nickel
and equivalent to 5% of total planned production in 2011. The focus of most
markets today, particularly in equity and energy, is squarely on the rapidly
deteriorating situation in the Middle-East, where there were fierce clashes
reported in Bahrain, Libya, and Yemen over the past 48 hours. The situation
in Libya is the most confusing, since the press is not allowed in, phone
connections are sporadic, and internet services have been cut off. However,
from the accounts that have filtered in, there is heavy fighting in Benghazi,
with some reports claiming that security has all but collapsed, and that
protesters are now in control of the city. There are now reports that the
fighting has now spread to the capital, Tripoli. In Bahrain, the unrest seems
to be following the Egyptian pattern. A heavy-handed response by the military
on Friday apparently backfired, with the government ordering troops to retreat,
thus enabling protesters to regain control of Pearl Square. Bahrain's Crown
Prince has now been charged with "initiating a dialogue" with the protesters
and seven opposition groups met on Sunday to consider what their next steps
will be. Across the Gulf in Iran, there were reports of large and violent
demonstrations on Sunday, with posts on Twitter saying that some people are
not backing down and fighting the police. As if all this were not enough,
two Iranian navy ships are en route to Syria today, having been granted passage
by the Egyptians. It remains to be seen to what the Israeli response will
be towards these sailings, but we suspect that until the vessels return,
the situation will likely remain tense. Even the Chinese seems to be jittery,
with the authorities detaining activists, increasing the number of police
on the streets, disconnecting mobile phone text messaging services, and censoring
internet postings regarding a call to stage protests over the weekend. As
far as we can tell, the campaign did not gain much traction. The "elephant
in the room" that has the potential to really ignite the markets is Saudi
Arabia. Thus far, there have not been any reports of protests, but we have
to suspect that the Saudi government is watching the situation in Bahrain
with some trepidation. The weekend developments have hit Middle-Eastern equity
markets hard, while Asian stocks were also down. US stock futures are called
to open lower after a sluggish performance in European equities, but actual
markets will be closed here on account of the Presidents’ Day holiday.
Oil prices are soaring, up around $3/brl, while gold is higher as well, with
prices now over the $1400 mark. Surprisingly, the dollar is restrained, now
trading at $1.3670 against the Euro. Base metals are not participating much
on the upside so far, as earlier gains have faded, and we now see modest
declines across the board, except for zinc and nickel. Nevertheless, with
such large-scale unrest sweeping the Middle-East, we think most markets will
be pulled higher over the days ahead, likely riding on energy’s coattails.
... Nickel is at $29,175, up $25, but had a very strong advance on Friday,
and now is on the verge of hitting a three-high of just under $30,000. Charts
look solid.(read Ed Meir's complete morning base metals report
here)
(Interfax) Jinchuan Group Ltd. (Jinchuan Group), China's largest nickel producer,
is conducting due diligence in advance of its acquisition of Philnico Industrial
Corp.'s Nonoc nickel mine on the Philippine island of Mindanao, state media
reported Feb. 21.
(Yieh) Hence, market participants estimated that the Taiwan stainless steel
mills such as Yieh United Steel Corp. (Yusco) and Tang Eng would probably
lift the prices by NT$7,000~NT$8,000/ton. However, dealers pointed out that
even the nickel prices haves stayed in upward trend, the market demand is
not as good as expectation. Thus, it may take time to see whether the market
could accept the price hike.
(SO) According to a Friday statement from the Brazilian Steel Institute (IABr),
Brazilian steelmakers produced 2.8 million metric tons of crude steel in
January, an increase of 3.8 percent year-on-year, and 16.2 percent
month-on-month.
(AMM) Stainless mills in China may raise March ex-works prices by up to 1,500
yuan ($227) per tonne as the traditional strong demand season for stainless
steel begins in late March to early April.
(FSN) Chinese Moly Price Up while European Price Down
(JMB) Japan Crude Steel Output Increases by 5.3% in January
(SBB) Chinese stainless prices rise amid light trading
(Reuters) Tokyo Steel Manufacturing Co, Japan's biggest construction steelmaker,
said on Monday it will raise prices of all its products in March to cover
rising input costs.
International Ferro Metals Interim Financial Results for the half year to
31 December 2010 -
more
China’s Iron Ore Imports May Fall for Second Year, Mysteel Says -
more
German Business Confidence Unexpectedly Rises to Record -
more
Cyclone Bears Down on Australia’s Ore, Oil Region, Shuts Ports -
more
Rio Tinto sees Q1 iron ore shipments affected by Pilbara cyclones -
more
AK Steel Announces
Stainless Steel Price Increase - AK Steel said today that it will increase
base prices for all 200, 300 and 400 series flat rolled stainless steel products,
effective with shipments on February 27, 2011.
- more
China To Revoke
AD Duty On Stainless CR Sheets From Japan - There are prospects that China
will revoke the existing antidumping duty on imports of stainless CR sheets
from Japan in the wake of a third sunset review of the AD duty this year.
The Chinese government started its review of the AD duty from late last year.
-
more
RUSAL tells Norilsk
minorities to demand buyback finish - Aluminium giant RUSAL , engaged in
often-acrimonious negotiations over the sale of its stake in Norilsk Nickel
, said on Monday it had dropped its opposition to the Arctic giant's share
buyback. -
more
UK steel production
soars at start of 2011 - Hopes for an industrial recovery in the UK steel
industry will be buoyed today on the announcement that production bounced
back in January on increased demand. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China Raises Bank Reserve Ratios to
Counter Inflation // China Home Prices Rise in Most Cities, Defying Curbs
// U.S. Geologist Jailed for Eight Years Loses China Appeal on Secrets Charge
// Asian Stocks Rise on Taiwan Economic Growth, Billabong Forecast; HTC Gains
// German Banks' Debt Downgraded By Moody's on Restructuring Act // Bahrainis
Urge Democracy as Crowds Swell; Protests Spread // Saudi Arabia May Risk
Shiite Unrest After Turmoil in Bahrain // European Stocks Slip as China
Raises Reserve Requirements; Rentokil Falls // U.S. Apartment Construction
Climbs as More Renters Crimp Supply // Campbell Cuts Full-Year Forecasts
for Earnings, Sales // Buffett Says Pricing Power More Important Than Good
Management //Treasuries Retreat on Inflation Concern as Stocks, Oil Advance
The Euro is presently trading over 4/10 of 1% higher against the Dollar.
NYMEX crude is up 2/3 of 1% and trading at $86.92/barrel. Gold is up 3/10%
and silver is higher by 2.9%. Base metals ended the session higher. Dow JOnes
reports three month nickel ended the day and week at
$13.22/lb
. Inventories
of nickel stored in LME approved warehouses fell for an eighth consecutive
session Thursday, with worldwide totals now registering just under 129,400
tonnes. Sucden did not update their nickel trading chart for the day. Nickel
fell early, as traders paused to analyse China's decision to raise reserve
requirements for lenders just ten days after boosting interest rates in an
attempt to bring inflation under control. But then news hit the wires that
the number 2 furnace had been shut down at the Copper Cliff smelter in Sudbury
due to a "failure of the tapping block on the northeast wall. That brought
molten matte into contact with cool water, causing an explosion, ..." Vale
announced a four month shut down, which will eliminate at least 5% of the
refinery's annual production. With that - nickel was back trading in the
black. For stainless steel users, this explosion could not have come at a
worse time. There is a deep divide growing amongst analysts over what nickel
prices will do over the next 12 to 24 months. On one side, you have those
who believe new mega mines coming on stream will more than cover the
acceleration in demand and the nickel market will remain in surplus. On the
other side, you have those who are not convinced the new supply will
actually come on line as expected and the market will move into a serious
deficit. For whatever it is worth, it doesn't appear that either side is
expecting any serious drop in prices anytime soon. And unexpected supply
problems, such as today's explosion at Copper cliff, or yesterday's announcement
of a maintenance shutdown at Vale Indonesia, exacerbate the confusion. The
Baltic Dry Index appears to be losing steam after hitting its tenth consecutive
gain today. One of its sub-indexes was negative today but the BDI overall
gained 9 points. Inn the articles about the Copper Cliff shu down below,
read the comments in th Sudbury Star articles. This is where the workers
from different shifts and areas talk to each other and you learn a little
more about what is going on behind the scenes.
Philly Area Factories See Best Month Since 2004 -
more
Changes in the Distribution of Workers’ Hourly Wages Between 1979 and
2009 - more
Canada snag cuts
Vale 2011 nickel output 5 pct - Brazilian miner Vale said on Friday it will
lose around 5 percent of its total 2011 nickel production due to a 16-week
shutdown of a smelter furnace in Canada. -
more
Vale's No. 2 furnace down for 16 weeks - Vale's No. 2 furnace in its Copper
Cliff smelter will be shut down for 16 weeks, the company announced in a
release this morning. -
more
Vale to announce layoffs or movement of employees due to #2 Furnace - With
talking to Vale management (A.L.) today it is being said that there might
be a possible layoff or movement of employees due to the #2 Furnace not being
ready for up to 6 months. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:10 am CST show 3 month nickel trading around $.05/lb
lower in choppy trading,
with other base metals trading quietly higher this morning. The Euro is trading
slightly higher against the US Dollar at the moment. NYMEX crud eis also
slightly higher and trading at $86.40/barrel. Gold is higher by more than
1/10 of 1% and silver is higher by 2/10%. In overnight trading, Asian markets
ended higher with China off 1%. European markets are trading lower this morning
and US futures are quietly and slightly higher at the moment. Nickel inventories
fell hard yesterday.
Edward Meir of MF Global Morning Comments - Copper prices hit a three-week
low yesterday, but bounced back to finish with a modest gain, as prolonged
congestion around the $10,000 mark is leading to more frequent bouts of light
selling. LME data also showed that exchange open interest in copper and aluminum
have both risen over the past two days as prices have fallen, indicating
that new short positions have been established. On the fundamental side,
inflation-based worries continue to weigh on the markets, with yesterday's
US CPI numbers coming out slightly higher than expected. Other macro indicators
were mixed; the index of leading economic indicators for January came in
less than expected, but the Philadelphia Fed manufacturing reading more than
made up for it, rising to its highest level in seven years. Right now, metals
are mixed again, with copper, tin, and nickel all down slightly, while the
rest of the group is sporting modest gains. The big news of the day is coming
out of China, where reserve requirements have been hiked by another 50 basis
points, taking effect next week. The central bank said it may also use other
means “including rates and currency” to tackle inflation if measures
taken to date are not sufficient. Nomura estimates that the new reserve move
will lock up about $54 billion in potential loans after banks have already
made $158 billion of new loans in January, more than double December’s
level and consistent with the pattern of front-loading credit at the start
of each year. So far, Chinese measures to cool the economy off do not seem
to have had much effect, which is why metal markets have brushed off each
successive rate or reserve hike. However, we believe the slower pace of activity
is a matter of when, not if, and a more significant downside move in metals
will eventually come our way once Chinese macro data starts to reflect the
impact of these moves whose impact on the economy will only grow after each
round higher. ... Nickel is at $28,350, down $140; prices seem to have
stalled just under the $30,000 mark. (read Ed Meir's complete morning
base metals report
here)
(Reuters) China's top nickel producer Jinchuan Group Ltd plans to produce
130,000-140,000 tonnes of nickel in 2011 as well as 500,000 tonnes of copper,
Jinchuan Chairman Yang Zhiqiang told reporters in Hong Kong on Friday.
(Interfax) Imported iron ore prices are expected to decline in March, with
imports of the raw material expected to follow the same trend into April,
industry analysts told Interfax Feb. 15.
(IT) Brazilian Vale Inc. subsidiary, PT International Nickel Indonesia Tbk
(Inco) intends to make annual maintenance at its machines at Soroako, Southeast
Sulawesi next August 2010. The maintenance will take around two months, and
will
Trading in steel derivatives has soared in 2010 and is likely to keep on
increasing, despite opposition from the big steelmakers as the futures market
eats into their control over pricing. -
more
China Jinchuan seeks A-share listing for unit, ups metal output -
more
Anglo American net profit boosted by higher commodity prices, productivity
improvements
- more
Baosteel signs
ferrochrome supply pact with India Farco - Baosteel Group, China's second-largest
steelmaker by output, said Friday it had signed an agreement with India's
Ferro Alloys Corporation (Farco) to secure ferrochrome supply to support
stainless steel production. -
more
China steel prices
seen rising in near term - CISA - Steel prices in the Chinese domestic market
will continue rising in the near term thanks to recovering demand and rising
raw materials costs, the China Iron & Steel Association (CISA) said on
Friday. -
more
Aperam CEO Would
Consider Stainless Steel Mergers - Aperam, the stainless-steel producer spun
off by ArcelorMittal, would consider mergers in an industry that’s beset
by overcapacity and surging costs. -
more
Iron Ore-Rally
stalls as China buying slows; India state seeks ban - Spot iron ore prices
eased on Friday, as top buyer China stepped back after a recent surge in
raw material costs and steel prices recoiled on slow end-user demand. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China May Ease Deposit Controls in
Step Toward Markets, Deutsche Bank Says // China's Foreign Direct Investment
Rises 23.4%, Adding to Overheating Risks // Singapore Raises 2011 Inflation
Forecast
Singapore Increases 2011 Inflation Forecast After Record 14.5% Expansion
// No Iranian Warships Scheduled to Cross Suez Canal, Egyptian Official Says
// Asia Stocks, Commodities, Oil Gain on Outlook for Global Growth, Earnings
// Sentance Says BOE Can't Be `Relaxed' on Pound Value // Mideast Protests
Spread to Libya Amid Bahrain Apologies, Clashes in Yemen // Bahrain Leads
Surge in Mideast Debt Risk as Unrest Escalates // European Stocks Rise for
Fifth Day; Cap Gemini, PPR Lead Gains on Earnings // Fed Tells Banks to
Stress-Test Capital for Recession With 11% Unemployment// Consumer Prices
in U.S. Climb More Than Forecast on Food, Fuel // U.S. Initial Jobless Claims
Rose More Than Estimated to 410,000 Last Week // Stocks Advance on Economic
Data, Earnings Beating Estimates
The Euro is currently trading nearly 2/10 of 1% higher against the US Dollar.
NYMEX crude is still trading over 1/2 of 1% higher and at $85.44/barrel.
Gold is up over 1/2 of 1% and silver is up over 2-1/2%. Base metals ended
the session mixed and mostly higher. Indicator charts show nickel fell hard
early, tried a recovery, and fell again, but bounced hard at teh end of the
session. Dow Jones reports three month nickel ended the session at
$12.92/lb, but went positive
in after market trading. Stockpiles of nickel stored worldwide in LME licensed
warehouses slipped yet again yesterday, slipping under the 130,000 tonne
level for the first time since June 2010. Totals now sit just over the 129,900
tonne level. Sucden's day old chart shows nickel trading thru yesterday
(chart here). The Baltic Dry Index continues to rebound,
adding another 21 points today. Copper, and a possible large correction coming,
is getting a lot of attention lately. Whether you buy into it or not, it
is worth watching copper in coming weeks as nickel has been playing follow
the leader for awhile now, and if copper does begin to correct, nickel may
break free of this bond, but it will have a psychological affect on nickel
trading, at the very least. For now, the bull market remains entrenched.
Bloomberg quote of the day - "The Federal Reserve ordered the 19 largest
U.S. banks to test their capital levels against a scenario of renewed recession
with unemployment rising above 11 percent, said two people with knowledge
of the review."
(Dow Jones) Briggs's view holds with that of metal research company Gold
Fields Mineral Services, which forecasts nickel averaging $24,000/ton this
year, followed by $19,500/ton in 2012, on the basis of a weakening fundamental
outlook.
(Dow Jones) The World Trade Organization Friday will issue a preliminary
report concluding that China has no legal right to impose export restrictions
on nine raw materials, said trade diplomats and lawyers familiar with the
case. The quotas, license requirements and other measures on industrial
ingredients such as zinc and coke, many vital for making steel, have been
a key irritant in China's simmering trade tensions with trading partners.
(Citi) Recent comments from coal producers in Queensland are that it is going
to take many months before shipments are restored to normal. Indeed some
producers estimate it will be 2012 before the force majeure backlog is cleared
and new contracts can be signed. A critical issue is the waiver of restrictions
on the discharge of water from flooded pits into rivers. This has replaced
disruptions to rail as the main constraint. We expect prices to remain elevated
through 2011.
Geithner: Chinese Inflation Helping U.S. Compete -
more
The return of structural unemployment concerns -
more
New Hacking Tools Pose Bigger Threats to Wi-Fi Users -
more
Budget Baloney (1): Why Social Security Isn’t a Problem for 26 Years,
and the Best Way to Fix It Permanently -
more
DJ Nickel Set For
Sharp Price Rise As Fundamentals Improve- Eramet - The outlook for the nickel
market is "very positive" with potentially sharp price increases likely through
2011, the chairman and chief executive of French mining group Eramet said
Thursday. -
more
Nickel: Where To,
and How Fast? - How should stainless consumers plan their product design
and view material purchasing options strategically in the face of such a
strong nickel price? -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:10 am CST show 3 month nickel trading around $.12/lb
lower, with all London
traded base metals lower this morning. The Euro is trading only slightly
higher against the US Dollar at the moment. NYMEX crud eis up over 1/10 of
1% and trading at $85.09/barrel. Gold is up 1/4% and silver is trading less
than 1/10% higher. In overnight trading, Asian markets ended higher, with
China off slightly. European markets are slightly higher, and US futures
show Wall Street is unchanged. Nickel inventories fell below 130,000 tonnes
yesterday.
Bloomberg morning base metal news - Copper Falls to Two-Week Low; Tin Slides
Most Since November -
more
LME Morning - Metals undergo overdue correction at last -
more
Edward Meir of MF Global Morning Comments - Copper ended down for a second
straight session yesterday, as prices worked lower on lingering concern about
Chinese inflation data released earlier in the week, coupled with similar
worries surfacing here in the US. In this regard, we had reports out yesterday
that underlying wholesale prices in the US climbed in January to their highest
level in more than two years, as the index of producer prices rose 0.8%,
slightly ahead of estimates. Core prices were up a more benign .5%, but there
is little doubt that the commodity price spiral we have been witnessing over
the past few months is finally starting to seep into the US (particularly
if one disregards the controversial "core" rate reading, which excludes food
and energy). Whether manufacturers are now able to pass these rising wholesale
costs on to their customers is a different matter, and success will vary
from industry to industry. Our take is that manufacturers will, by and large,
struggle to pass the bulk of these costs on because of intense competition,
guarded spending by US consumers, and still-high unemployment. Right now,
metals are off again, although off their worst levels, with copper and tin
down the most. The dollar is steady, holding at $1.3550 against the Euro,
and not doing much over the last few days, while oil prices are down by about
$.10 after spiking yet again yesterday on renewed tensions in the Middle-East.
This came in the wake of a statement put out by the Israeli foreign minister
claiming that two Iranian warships were planning to sail through the Suez
canal en route to Syria on Wednesday, and went on to describe the move as
a "provocation". ... Nickel is at $28,320, down $255; the uptrend still seems
to be intact, but we think prices will have trouble getting past $30,000
resistance. (read Ed Meir's complete morning base metals report
here)
(Interfax) Despite generating a total profit of RMB 9.87 billion ($1.36 billion)
in 2010, China's large- and medium-sized steel mills averaged a profit margin
of only 2.91 percent, some 3.29 percent below the average for all other
industries across the country, according to an annual steel industry report
from the Ministry of Industry and Information Technology (MIIT), released
Feb. 16.
(MFG) Nickel prices will decrease during in the second half of this year
to an average of $24,000 a ton and continue to fall in 2012 to an average
of $19,500 as the market becomes oversupplied the chief nickel analyst at
GFMS said. China will continue to lead nickel demand, which will likely grow
by 12% to 620,000 tons in 2012 compared with 2010.
(DJ) Eramet Targets 2011 Nickel Output Of 57,000 Tons, +6% On Year
(MP) Ferro-chrome prices in the United States have nudged up as business
activity shows some sign of improvement and the supply pipeline remains under
pressure.
(WSS) Figures released by the International Molybdenum Association (IMOA)
revealed that world-wide production of molybdenum continued to increase during
the third quarter of 2010, although usage fell. In total, 132.2 million lbs
of molybdenum was produced, an increase of over three million lbs from the
previous quarter. Usage however, fell by five million lbs to 121.6 million
lbs as a result of slower production in the steel making sector during Q3.
ATI Allegheny
Ludlum Releases Sheet and Plate Price Announcement - Effective with shipments
Monday, February 28, 2011, ATI Allegheny Ludlum is increasing base prices
by approximately 6% for stainless cold-rolled and hot-rolled sheet and strip,
tubular quality sheet and strip, continuous-mill-plate products, and
emission-control alloys. -
pdf attached
Russia's Solway
confirms $3 bln nickel smelter investment in Indonesia - Russia's Solway
Group on Thursday confirmed plans to build an Indonesian nickel smelter with
the capacity to produce 50,000 tonnes of the metal a year. -
more
Poseidon nickel
mine to re-open next year - West Australian mining company, Poseidon Nickel,
hopes to have its Windarra nickel mine, near Laverton refurbished and back
in production by 2012.
- more
Nickel May Swing
to Deficit for First Time in 4 Years - The nickel market may swing into a
deficit for the first time in four years as the global economy recovers from
its worst postwar recession, fueling demand for stainless steel, said Sumitomo
Metal Mining Co., the biggest producer in Japan. -
more
Turkey Increased
Their Exports Of Chrome Ore For January 2011 Shipment = Exported 256,000
Tons As Increased By 62% Compared To That In Dec. / 10 - It was known that
Turkey exported 256,728 tons of chrome ore for shipment in January of 2011,
which had a considerable increase of 61.9% compared with that (158,549 tons)
in the previous month of December of 2010. -
more
Norilsk Nickel
considerably reduced emissions in 2010 - OJSC MMC Norilsk Nickel
(hereinafter – MMC Norilsk Nickel or the Company) summarized results
of its environmental activities in 2010 and presented them at “Experience
and methods of increasing environmental safety of industrial facilities”
round table. -
more
Russians of the Caribbean - It is no surprise that the battle for control
over the world’s largest nickel producer, Norilsk Nickel, is taking
place in the Caribbean – some of the players evoke pirates as much as
corporate executives. -
more
Talvivaara blames
weather for missed mining targets - Finish miner Talvivaara was punished
on Thursday for missing nickel and zinc production targets in 2010, even
though it managed to narrow its losses for the year. -
more
Loss-making Outokumpu
replaces CEO - Finnish stainless steel maker Outokumpu ousted Chief Executive
Juha Rantanen after he failed to stop spiralling losses, replacing him with
Mika Seitovirta from April 1. -
more
EU Steel Prices
Soar in February - The MEPS - EU Average Hot Rolled Coil transaction price
soared by almost €100 per tonne in February. Buyers are anticipating
further increases in domestic values of flat products in the second quarter
as steelmakers make large upward adjustments, in line with higher raw material
costs. -
more
Global steel
demand soars - The price of copper is breaking records. So is the price of
tin. And we’re all well aware of gold’s 10-year run to record levels.
- more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) Beijing Limits Home Purchases After
Government's Housing Curbs, CCTV Says // Rain May Be ‘Too Late’
for China Wheat Area, BWS Says // Citigroup's Pandit Says Emerging Markets
at Risk of Overheating, Inflation // Gold Rises to Highest in Almost Four
Weeks on Inflation Concern // China's Inflation Exceeds Target for Fourth
Month, Adding Rates Pressure // BHP Damps M&A Talk, Spending $80 Billion
on Mines // Asian Stocks Rise as Nomura Upgrades Japan Economy; Chin Steelmakers
Climb // U.K. Unemployment Claims Unexpectedly Rose 2,400 in January // King
Says Bank of England May Keep Rate at Record Low for Months to Come // European
Stocks Climb to 2 1/2-Year High; Heineken, SocGen Surge // Borders Files
Bankruptcy as Expense Cuts Don't Stem Losses // Farmland Boom Provides Bright
Spot for U.S. Midwest Real Estate // Oil Climbs as Israel Says Iranian Warships
Heading for Suez Canal // U.S. Mortgage Demand Falls to Two-Year Low as
Refinancing Drops // Stocks Rise on Economy, Earnings; Gulf Shares,
Pound Decline
The Euro is now trading over 1/2 of 1% higher against the US Dollar. NYMEX
crud eis up over 1% and trading at $85.19/barrel. Gold is up slightly and
silver is lower by 1/3 of 1%. Base metals ended lower, with the complex
apparently pulled down by copper for a second day. Indicator charts show
nickel traded within a $400/tonne band today, opening lower, climbing higher,
dipping, climbing, then dipping again. trading appeared to be confused, not
following equity trading or the Euro value changes. Fo the day, Dow jones
reports three month nickel ended the day at $12.96/lb
. Stockpiles
of nickel stored in LME warehouses now stand just under 130,100 tonnes after
falling again yesterday. Sucden's day old chart is posted here
(chart here). The Middle East appears to be in a melt
down mood as protests spread, and now Iran is being accused by Israel of
trying to send two warships thru the Suez enroute to Syria. Israel may react,
which is obviously what Iran is after, and gold and oil are higher on investor
concerns. Iran is fearful they may get caught up in the rush for regional
democracy, and may hope military action taken by Israel in response to its
provocation, will shift Muslim attention back on Israel and off other more
immediate concerns.
Analysis - China the wild card for commodity prices -
more
Asia's poor suffer as food prices soar, raising prospect of unrest -
more
World Food Prices At Dangerous Levels, Warns World Bank -
more
Israel Warns It Might Act on Iranian Warships Passing Through Suez Canal
-
more
BHP Billiton
1st Half Net Gains 72% To $10.52 Billion - BHP Billiton Ltd. (BHP) said Wednesday
net profit rose 72% to US$10.52 billion in its first half from US$6.14 billion
a year ago as demand for industrial raw materials surged along with the recovery
of the global economy. -
more
China daily steel
output averaged 1.7 mln T in Jan - China produced a daily average of 1.703
million tonnes of crude steel in January, data from the China Iron and Steel
Association (CISA) showed on Wednesday. -
more
Mining projects
22 000 new jobs - South Africa’s mining sector anticipates adding jobs
to the economy but the extent of job creation is tempered by the uncertainty
around the nationalisation debate and the legislative framework. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:10 am CST show 3 month nickel trading around $.08/lb
lower, with other
London traded base metals mixed and mostly lower. The Euro is trading nearly
2/10 of 1% higher against the US Dollar this morning. NYMEX crude is up 1/2%
and trading at $84.76/barrel. Gold and silver are both up 1/10%. In overnight
trading, Asian markets rose slightly , with China up nearly 1%. European
markets are trading slightly higher this morning, and US futures show Wall
Street may open higher. Nickel inventories fell yesterday.
Bloomberg morning base metal news - Copper Falls for Second Day as Stockpiles
Fuel Demand Concern -
more
Reuters - Copper below $10,000; risk-averse on inflation, data fears -
more
U.S. Exports of Stainless Steel Mill Products -
more
World crude steel production by regions -
pdf here
Commodity/Economic Comments
Edward Meir of MF Global Morning Comments - There was an intraday reversal
in copper yesterday, a pattern that usually signifies a short-term top. This
is typically when prices race to new highs, only to reverse course and finish
at their lows. In copper's case, we got to a record high of $10,190 yesterday,
but finished at just over $10,000 on the official close, only to sell off
more decisively after that. However, it does not seem to us that this is
the start of anything major on the downside, as the extent of yesterday's
decline and the accompanying volume was light, two ingredients that need
to be in place for a reversal to be deemed more credible. We suspect yesterday's
jittery mood was likely more due to the lingering effects of the Chinese
inflation figures released Tuesday, which suggest that more rate hikes are
likely to be in the cards. Also somewhat of a negative, was the US retail
sales number we got yesterday for January, which gained .3% on the month,
coming somewhat short of the .5% gain expected. Right now, metals are mixed
in largely quiet trading; copper is off once again, and now trading just
above the $9900 mark on account of a 3300-ton rise in LME stocks, while the
rest of the metals are mixed. The dollar is slightly weaker against the Euro,
now trading at just over $1.35, while oil prices are up by about $.50 on
account of continued Middle-Eastern unrest, this time from Libya, where there
are reports of demonstrations in Benghazi. We suspect the metal markets will
continue to drift in a sideways pattern for the balance of the week, as we
are still not seeing any macro release that could trigger a more substantial
correction and contribute to a change in the bullish mindset. ... Nickel
is at $28,672, down $73, but we still seem to be on track for a test of $30,000
resistance, at which point we suspect prices will have much more difficulty
moving higher. (read Ed Meir's complete morning base metals report
here)
(Dow Jones) The nickel market was widely expected to see increasing mine
supply this year, especially from nickel laterite projects but there are
no signs of this happening yet, says Pinaki Rath, managing director at Gold
Matrix Resources, a Singapore-based metals trading house. Metals consultancy
VM Group tips nickel mine supply to expand by 11% to 1,613,000 tons in 2011
but Rath says his suppliers are not yet seeing any signs of this metal.
(XNA) China Jinchuan lifts nickel ex-factory price to 218,000 yuan/t
(UBS) Benchmark ferrochrome prices on the European spot market have jumped
to their highest in more than 2yrs on strong demand. High carbon ferrochrome
is trading at ~$1.35/lb this mth vs last month's $1.20/lb.
(MCP) East-Sayansky Nickel Company (VSNK) has announced plans to invest about
$6.8m in geological exploration at the Iysk-Tagulsky field in Irkutsk region
in 2011. The exploration is reportedly aimed at discovering nickel and platinoid
deposits.
China 2011 crude
steel output to hit record 660mln T-MIIT - China, the world's largest steel
producer, is expected to generate a record of 660 million tonnes of crude
steel this year, the Ministry of Industry and Information Technology (MITT)
said on Wednesday. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) Australia Blocked China Rare-Earth
Takeover on Concern of Threat to Supply // China Grain Supply Balanced,
Won’t Rely On Imports // China Accelerating Inflation Bolsters Forecasts
for Higher Interest Rates // China's January Inflation Data Today Cuts Food
Weighting, Newspaper Says // Russia Begins Anti-Dumping Probe Into Chinese
Cold-Rolled Steel // China's January Lending Jumps by $182 Billion, Adding
to Overheating Risks // Bank of Japan Raises Economic Assessment as Global
Growth Bolsters Exports // Europe Economy Expands Less Than Economists Forecast
// Euro May Weaken Versus Dollar on `Head and Shoulders': Technical Analysis
// German Investor Confidence Rises for a Fourth Month as Economy Strengthens
// EU's Foot-Dragging on Bailout Blueprint Poses Risk to Euro, Portugal Says
// Berkshire Departs BofA `a Loser' on Stake After Three Years // Stocks
Fall on U.S. Retail Sales; Oil Rises, Bahrain Bonds Drop
The Euro is now trading 2/10 of 1% higher against the US Dollar. NYMEX crud
eis down 1/2 % and trading at $84.38/barrel. Gold is up 8/10 of 1% and silver
is higher by 1/2 that. Base metals ended the session mostly lower after builder
confidence showed no signs of recovery in the US dragged copper off earlier
highs. Indicator charts show nickel in sharp climb early, pulling back a
little after punching thru the $29,000/tonne level. Then after copper buckled
in mid afternoon, the rest of the metals complex followed suit. Dow Jones
reports three month nickel ended the day at
$13.04/lb, lower but holding
above $13/lb for a second day. Stockpiles of nickel stored in LME approved
warehouses fell yet again yesterday and now total just under 130,250 tonnes.
Sucden's day old chart shows nickel breaking above $13/lb yesterday
(chart here). The Shanghai Metals Market reports enquiries
from Chinese pig nickel producers to ports holding imported ore are up. Nickel
prices retreated a little today but the forward momentum appears to be intact.
Article below on spot ferrochrome prices from Platt's that is worth a read.
Spot ferrochrome
in Europe hits highest since Nov 2008 - Benchmark ferrochrome prices on the
European spot market have jumped to their highest in more than two years
on strong demand for the material valued for its anti-corrosive properties.
-
more
Russian Firm
Pledges $3 Billion for Maluku Nickel Smelting Plant - A unit of Russia’s
Solway Industries has committed to invest $3 billion to build a nickel smelting
plant in Halmahera, North Maluku, senior officials said on Monday. -
more
S&P may downgrade
Norilsk Nickel after new offer to RusAl - Standard & Poor's international
rating agency left Norilsk Nickel's long-term BBB-rating and ruAA+ rating
on a national scale on the CreditWatch list with a Negative outlook following
its offer to aluminum giant RusAl to buy 20% of its shares for $12.8 billion,
the agency said on Tuesday. -
more
(see Dow Jones comment above for update)
Russian oligarchs
regain their influence - After losing the fortune during the crisis, Russian
oligarchs are regaining their influence with the help of the authorities,
participating in the development of strategic projects. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:10 am CST show 3 month nickel trading around $.03/lb
higher, with other
London traded base metals mixed, quiet and mostly higher. The Euro is trading
2/10 of 1% higher against the US Dollar. NYMEX crude is up over 1/2 of 1%
and trading at $85.26/barrel. Gold and silver are both trading around 3/4
of 1% higher. In overnight trading, Asian markets ended lower, with China
off slightly on inflation concerns. European markets are trading slightly
higher at the moment, and US futures are not revealing much this morning.
Nickel inventories slid again yesterday.
Bloomberg morning base metal news - Copper Falls as Demand May Slow on Prices,
Leaving More Supply -
more
LME Morning - Tin hits another record but most pause as data flow continues
-
more
Edward Meir of MF Global Morning Comments - Metals pushed higher yesterday,
with the main action concentrated in copper, which rallied to another record
high after a surprise jump in January Chinese imports. There was a good analysis
written by Andy Home of Reuters who attempted to explore what might be behind
the recent rise in imports given the sluggish physical market, a consistent
flow of metal into LME warehouses in South Korea, and an LME-Shanghai arbitrage
that has been negative for almost six months now. Home argues that it is
possible that Chinese copper buyers have collectively decided to shun the
spot market this year by buying monthly tonnages directly from producers
under annual contracts. "If a manufacturer has even moderate confidence in
its order-book projections over the coming twelve months, it makes sense
to cover anticipated metal requirements with producer tonnage", Home writes.
"In such a scenario China's copper imports could remain strong and the spot
market weak for an extended period of time". Home says that another explanation
for the high imports may be due to government purchases of copper, as the
metal is viewed as a strategic commodity by the authorities. A third possibility
- and more bearish in its implication - is that China is importing metal,
but that these units are "passing through the country's customs department,
at which point it is classified as imported, but travelling no further than
bonded warehouse in Shanghai. No VAT has been paid on such metal and it will
only be paid at the time that the metal is sold on to a domestic buyer in
China". Although there is no confirmation that such "limbo" stocks exist,
Home writes that they could be as high as 500,000 tons. If such metal is
indeed being collected in warehouses, the metal could be conceivably shipped
out of the country when conditions warrant. One way of finding out, is to
monitor refined copper export flows out of China. In this regard, Home notes
that in December of 2010, refined copper exports were roughly 10,500 tons,
the highest they have been in more than a year. Right now, metals are mostly
mixed, with copper down slightly, while there are more modest increases in
the rest of the complex. Markets are digesting the recent inflation numbers
out of China, which exceeded the government’s 2011 target for a fourth
straight month. Consumer prices were up 4.9% in January from a year earlier,
while producer-price inflation accelerated to 6.6% from 5.9% in December.
Although the CPI number came in somewhat lower than expected, we doubt this
will change the rate-rising stance the authorities will seek to maintain,
as there are few signs that the inflation picture will actually moderate
going forward. (For what its worth, the Chinese inflation numbers, if anything,
tend to understate the actual increases, and some Chinese economists suggest
that the numbers are likely double what the official releases are showing.
We came across an analysis of Chinese inflation pricing methodology, where,
for example, apartment rents are included in the price index, but costs for
soaring owner-occupied housing are excluded. In addition, garments qualify
for inclusion only once they have been on sale continuously for at least
six months, which frequently means that they are no longer in style, while
many other items included in the index are based on an outdated list of consumer
products). ... Nickel is at $29,044, up $149, and now at a fresh 2011
high. We seem to be on track for a test of $30,000 resistance. (read
Ed Meir's complete morning base metals report
here)
(UBS) After the December rally in the met space that resulted from surging
met coal pricing, met-sensitive valuation has largely moderated. Despite
met coal pricing maintaining a position well above $300/t, investors seem
hesitant to subscribe to the notion that the issues in Australia might persist
beyond the short-term.
(Interfax) Jinchuan Group Ltd., China's largest nickel producer, has raised
its ex-works refined nickel price for the fourth time this month by up to
RMB 128,000 ($19,414.83) per ton, in line with international refined nickel
prices, according to a Feb. 15 online announcement from the company.
(Interfax) Baoshan Iron & Steel Co. Ltd. (Baosteel) announced Feb. 15
it will raise ex-works prices for major steel products by RMB 300 ($45.50)
per ton in March, after raising prices for two consecutive months.
(Reuters) China imported 1.64 million tonnes of steel products in January,
up from 1.41 million tonnes in December. .... Steel exports from the world's
largest steel producer rose 9 percent to 3.12 million tonnes in January from
the previous month, the data showed...... China's iron ore imports reached
a record 68.97 million tonnes in January, up 18.8 percent from 58.08 million
tonnes in December, official data from the General Administration of Customs
showed on Monday.
(Reuters) Shanghai steel futures rose to a record for a fifth day in a row
on Friday as index-based spot iron-ore prices bolted to all-time highs on
tight supplies and strong demand from top buyer China.
(MBN) Jinchuan Ni price higher for third time in Feb
(SriLankaDailyNews) Due to the current extreme weather conditions induced
floods and crop failures including prolonged droughts in the countries across
Asia, Pacific, Australia, Europe and the two American Continents and Africa,
there is overwhelming, undeniable evidence that the world will run out of
food during this year. -
more
General
Review Of Ferro-Chrome In 2010 And Its Outlook For New Year = Even Thought
Production Of Stainless Steel Increased, FeCr Producers Were Unable To Enjoy
Its Fruits - The world output of crude stainless steel in the calender year
(January - December) of 2010 came up to 32.00 millions tons, having had a
substantial increase of 23% compared with that in the preceding year of 2009,
when stainless steel industry had suffered from a serious depression, and
shown a brilliant revival. -
more
Japan's Sumitomo
Metal to up nickel refinery capacity - Sumitomo Metal Mining Co said on Tuesday
it would spend $168 million on its planned move to beef up capacity at a
domestic nickel refinery to handle raw metal produced at a project in the
Philippines. -
more
Poseidon to
restart Mt Windarra - Poseidon Nickel says it will restart its Mt Windarra
nickel mine after it entered an $8 million agreement with GSM Mining to complete
the refurbishment of the underground project. -
more
Chinese steelmakers
lift March prices on high cost - Two top Chinese steelmakers will raise their
main product prices for the third month in a row in March, a widely-expected
move to cope with surging raw material costs and to reflect a positive outlook
for demand. -
more
Iron ore imports
skyrocket to record - Chinese iron ore imports surged 48 percent to a record
in January, compared with a year ago, as traders replenished stocks in
expectation of rising ore prices. -
more
Courtesy AISI - In
the week ending February 12, 2011, domestic raw steel production was 1,809,000
net tons while the capability utilization rate was 74.8 percent. Production
was 1,720,000 tons in the week ending February 12, 2010, while the capability
utilization then was 71.1 percent. The current week production represents
a 5.2 percent increase from the same period in the previous year. Production
for the week ending February 12, 2011 is up 1.1 percent from the previous
week ending February 5, 2011 when production was 1,789,000 tons and the rate
of capability utilization was 74.0 percent.
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) Japan Economy Shrinks Less-Than-Estimated
1.1%, Surpassed by China in 2010 // China Profits From Solar Policy as Europe
Backpedals // Wheat Surges to a Record in China on Drought, Rising Imports
// China Reports Smaller-Than-Forecast $6.45 Billion Surplus // Emerging
Market Stocks Rise, U.S. Futures Drop; Commodities Climb on China //
Roubini’s Next Crisis Is Scary Food for Thought: William Pesek //
Portugal’s GDP Falls 0.3% in First Decline in a Year // Egypt Army Suspends
Constitution, Meets Protester Demand // Euro Weakens Before Finance Ministers
Meeting; Kiwi Slides on Retail Sales // European Stocks Rise to Highest Since
2008; Credit Suisse, John Wood Gain // Geithner Quietly Tells Obama Debt
Expense to Increase to Record // Echostar to Purchase Hughes Communications
for $2 Billion, Including Debt // Gross Cuts Government Holdings to Lowest
Since 2009 // Fed's Dudley Says QE Spurring Economy, Making Outlook for 2011
`Brighter'
The Euro is trading over 4/10 of 1% lower against the US Dollar, after trading
at a 3 week low earlier in the day. NYMEX crud eis down nearly 1/10 of 1%
and trading at $85.51/barrel. Gold is higher by over 1/2% and silver is up
over 2.1%. Base metals ended the session higher, with tin setting another
record high. Indicator charts show nickel bounced early and maintained its
leap for the rest of the session. Dow Jones reports for the first time since
early May 2008, three month nickel closed above $13/lb at
$13.11/lb
. Stockpiles
of nickel stored in LME approved global warehouses slumped Friday and now
sit just over the 130,400 tonne level. Sucden's day old chart shows nickel
trading stalled last week
(chart here). The Baltic Dry Index registered day 6 of
gains, up 28 points. If inventories continue to fall and at a rate similar
to last spring, we could see LME inventory numbers slip under the 100,000
tonne level as early as May. If Citigroup is right and China pig nickel producers
are unable to respond in light of higher coal prices, the decline could happen
faster. Chinese copper import numbers came out positive today - it will be
interesting to see Chinese nickel import numbers when they are published
later. February numbers will be more telling and we won't see them till late
March.
(Citigroup quote thanks to reader) Floods in Queensland have pushed coking
coal prices above $300/t, with further price rise likely. At these price
levels, a huge share of the nickel pig iron industry may become un-economic,
thus forcing closures. Prices now look well supported at $25,000/t. As upcoming
PAL projects fail to live up to expectations, we believe prices closer to
$30,000/t ($13.60/lb) could be achieved in 2011.
Study: Strict Derivatives Regulation Could Cost 130,000 Jobs -
more
Number of the Week: Government’s Overwhelming Role in Mortgages -
more
Roubini’s Next Crisis Is Scary Food for Thought: William Pesek -
more
Indonesia says
Russia to build $3 bln nickel smelter - Russian investors plan to build a
$3 billion nickel smelter in Halmahera island in eastern Indonesia, a sign
of growing interest to invest in the country's mineral processing industry.
-
more
DJ Solway Industries To Build Nickel Smelter In Indonesia - A unit of Russia's
Solway Industries plans to invest up to $3 billion to build a nickel smelter
with a 150,000 metric tons of annual capacity in Halmahera Island in Indonesia,
an Indonesian senior official said Monday. -
more
Norilsk Nickel
recommends shareholders re-elect existing board - The board of directors
of Russia's largest nickel producer Norilsk Nickel has recommended its
shareholders vote for its re-election at a meeting on March 11 initiated
by one of Norilsk core shareholders, RusAl, Norilsk Nickel said on Monday.
-
more
Norilsk: Rusal Seeks To Ban Rivals From Voting At Norilsk EGM - Russian mining
giant OAO Norilsk Nickel said Monday United Co. Rusal , which owns a 25%
stake in the company, is seeking to ban Norilsk subsidiaries and two main
shareholders in the miner from voting at Norilsk extraordinary shareholders
meeting Mar. 11. -
more
Suspension
of new mining applications met with mixed reactions - The government has
started canceling non-moving mining applications, and while some mining
executives welcome the cleansing process (which includes the government's
move not to entertain new mining applications in the meantime), some fear
it may be a double-edged sword for the industry. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $.18/lb
higher, with other
London traded base metals all higher this morning. The Euro is trading
9/10 of 1% lower against the US Dollar, which would typically put pressure
on commodity traders. NYMEX crude is quiet and trading at $85.56/barrel.
Gold is up slightly and silver is up over 1/2 of 1%. In overnight trading,
Asian markets ended higher, with China up over 3%. European markets are slightly
higher this morning and US futures have yet to decide an opening direction.
Nickel inventories fell on Friday.
Edward Meir of MF Global Morning Comments - Copper prices recovered from
a near two-week low on Friday to end slightly higher, pulling the rest of
the group up along with it (with the notable exception of aluminum). Most
other markets stabilized as well after the abrupt resignation of Egyptian
President Hosni Mubarak lifted a good deal of the recent uncertainty over
most markets. This morning, we are higher across the board, with tin in record
territory and copper pushing past the $10,000 mark. Other markets are off
to a quieter start. The dollar is somewhat stronger for a second day in a
role, with the greenback now trading at around $1.3430 against the euro.
US stocks are expected to open flat after marginal gains in overseas markets.
Energy prices are higher, as investors assess the reverberations out of Egypt
that could potentially sweep through other countries in the region. In this
regard, security forces and protesters clashed in Yemen and Bahrain on Sunday,
while thousands of Algerians flooded a central square in Algiers on Saturday
calling for political reform. The Palestinian Authority in the West Bank
also ordered the dismissal of its Cabinet and said it would hold long-delayed
parliamentary and presidential elections by September. And in Iran, opposition
leaders planned a demonstration on Monday in solidarity with the Egyptian
and Tunisian revolts. Activists are calling for protests in Libya on Thursday.
... Nickel is at $28,674, up $374, and nearing the 2011 highs. We seem
to be on track for a test of $30,000 resistance. (read Ed Meir's
complete morning base metals report
here)
(Yieh) japan’s stainless steel mills have started the price negotiation
with the Asian customers last week. Market participant predicted that
Japan’s stainless steel mills might increase the export prices by
US$200~US$300/ton.
(Interfax) Hongda Group Co. Ltd. is to build a 40,000-ton production line
for molybdenum products in Chengdu, capital of Sichuan Province, state media
reported Feb. 14.
(Interfax) China's steel product exports rose 9.47 percent month-on-month
in January to 3.12 million tons, according to preliminary statistics released
by the General Administration of Customs (GAC) on Feb. 14.
(Stahl) Applications to import steel products into the EU's 27 member countries
in January totaled 2.4 million mt, up 29% from the previous month and 61%
higher on a year earlier, according to internal European Commission data
seen by Platts Thursday.
(MB) Stainless steel scrap prices increased this week on gains in the three
month LME nickel market and increased demand from mills.
(MP) China’s imports of molybdenum roasted concentrates fell 50% in
2010, according to official customs data.
(SBB) Asian stainless offer prices surge with nickel
(JMB) Daido Steel to Increase Ni Series Stainless Steel Bar Price by 10%
Indonesia says
Russia to build $3 bln nickel smelter - Russian investors plan to build a
$3 billion nickel smelter in Halmahera island in eastern Indonesia, said
chief economic minister Hatta Rajasa on Monday. -
more
Union grieves lack
of nickel bonuses at Xstrata plant in Sudbury - A dispute over nickel bonuses
has led to a grievance against Xstrata Nickel in Sudbury filed by Mine Mill
Local 598/CAW. -
more
The Next Stainless
Steel Powerhouse? - The Indian stainless steel melt production reached 2.9
million t in 2010 and finished products 2.6 million t respectively. -
more
Iron Ore-Indexes
hit record on Chinese stockpiling - Index-based spot iron ore prices edged
up to fresh record highs and looked set to sustain their momentum on Monday
as top consumer China continues to build steel product stockpiles in anticipation
of a recovery in demand. -
more
China's Wuhan Steel
raises March prices - Wuhan Iron & Steel Co Ltd , China's third-largest
steelmaker, will raise prices of its major products by 300 yuan ($45.50)
per tonne for March bookings as part of efforts to pass on rising raw materials
costs to end buyers. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) Australian Coal Premium May Widen on
China, India Growth: Energy Markets // U.S. Not `Satisfied' With China's
Progress on Boosting Yuan, Brainard Says // China Alters Reserve Ratio
Requirements for Some Banks, Securities Reports // Australian Stocks Retreat
on Egypt Crisis, Snapping Longest Gain in a Year // Vietnam Devalues Dong
by Record 7% as Officials Seek to Curb Trade Deficit // India's Industrial
Production Increases at the Slowest Pace in 20 Months // Greece Joins Italy
in Objecting to EU Debt-Cut Target // U.K. Output Prices Increase Twice as
Much as Forecast // Dollar Strengthens as Egypt's Turmoil, Stock Losses Spur
Demand for Haven // Crude Oil Falls to 10-Week Low After Egypt’s Mubarak
Resigns // Russian Debt May Reach 585% of GDP on Demographic Woes // European
Stocks Gain as Egyptian President Mubarak Resigns; Michelin Gains // Consumer
Sentiment in U.S. Increases to Eight-Month High // Stocks Advance After Mubarak
Resigns; Egyptian Debt-Default Swaps Decline
The Euro is now trading 6/10 fo 1% lower against the US Dollar. NYMEX crude
is down 1.7% and trading at $85.25/barrel. Gold is down nearly 1/2% and silver
is off 1.2%. Base metals ended mostly higher as traders decided metals had
retreated enough and that the bull market was far from over. Indicator charts
show nickel fell early, and when it neared the $12.50/lb level, the price
began to climb hard for the rest of the session. While the Egyptian president'
resignation was historic, it had no effect on nickel trading as prices were
advancing well before the surprise announcement came. Dow Jones reports three
month nickel ended the day and week at
$12.84/lb
, back to Monday's
close. Nickel stockpiled in LME approved warehouses fell for a third straight
day yesterday and now total just over 131,100 tonnes. Sucden updated its
chart, but only thru Wednesday
(chart here). The Baltic Dry Index rose for a fifth straight
day, by 42 points, making it the first full week of gains in forever. Norilsk
upped its offer to buy out Rusal and end that soap opera. At least for this
season. Egyptian President Muhammad Hosni Sayyid Mubarak resigned today after
nearly 2 weeks of demonstrations brought down his 30 year reign. This uprising,
peaceful for the most part, and overthrow of the government without military
force, has marveled the world and send a shock wave thru the Middle East.
For those of us outside the borders of this nation, we are witnessing a historic
event.
(Dow Jones) U.S. nickel imports fell 6.3% in December from last month, and
was down 11.5% from the previous year, the Commerce Department reported Friday.
(Dow Jones) U.S. nickel exports rose 12.4% in December from the previous
month, but was down 67.8% from the previous year, the Commerce Department
reported Friday.
Norilsk offers
$12.8 billion for RUSAL's 20 percent stake - Russian mining giant Norilsk
Nickel made a new offer on Friday to buy out warring shareholder RUSAL ,
raising the price per share by 23 percent to offer an even heftier market
premium. -
more
All you
want to know about Iron Ore: Karvy Comtrade - Karvy Comtrade has come out
with a report on Iron Ore. The research firm says, we continue to remain
bullish on this commodity and recommend taking long at lower levels. -
more
Appetite for
metals returns - The sheer number of suits attending the mining indaba this
year makes one thing clear -- the world wants minerals, particularly those
beneath African soil. -
more
Watch
Out In Iron Ore, Coal, Copper When Easy Money Policies Are Done, Says Rio
Tinto - While it appears a truism to state that commodity prices are set
to continue their bull runs in the first half of 2011, a more precise look
coming from one of the most interested parties in the game, Rio Tinto, provides
additional support and key insight into risks facing prices for iron ore,
coal, copper, and aluminum. -
more
Welders can
breathe easier with chromium-free alloy - A new alloy promises to lessen
welders' risk of breathing toxic fumes on the job. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:10 am CST show 3 month nickel trading around $.01/lb
higher, with other
base metals mixed and quiet. The Euro is trading over 1/2 of 1% lower against
the US Dollar. NYMEX crud eis up nearly 1/2 of 1% and trading at $87.12/barrel.
Gold is down 1/10 of 1% and silver is off 1/3 of 1%. In overnight trading,
Asian markets ended lower, with China ending over 1/2 of 1% higher. European
markets are trading slightly lower this morning and US futures are slightly
lower as well. NIckel inventories fell yesterday.
LME Morning - Firm dollar, macro uncertainties weigh on metals complex -
more
Reuters - Copper drops on higher dollar, tin hits record -
more
Edward Meir of MF Global Morning Comments - Metals recovered most of their
earlier losses yesterday, as "buy-the-dip" money returned to the markets.
The advance was also somewhat impressive since it occurred despite a
strengthening dollar, which gained ground on Portuguese debt concerns and
on the abrupt withdrawal of the leading German banking nominee to succeed
Jean-Claude Trichet. However, most of yesterday’s focus in a number
of markets was on fast-paced developments coming out of Egypt, where the
likelihood of a Mubarak resignation was raised after reports suggested that
he was about to step down, and hand powers to his vice-president. This did
not turn out to be the case, as in a rambling speech that followed, the Egyptian
president said that although he was transferring his responsibilities to
his designated vice president, he was not actually resigning. Later on, it
became apparent just how hollow the handover was, as the transfer of
responsibility excluded several important functions, such as the power to
dissolve parliament, fire the cabinet, or submit amendments to the constitution.
Needless to say, the speech has galvanized the opposition, where more protests
are taking place, and has triggered a rally in crude oil prices. Brent recovered
all of Thursday's early losses in late-day electronic trading yesterday,
and is up again today. The dollar is also stronger, now trading at $1.3530
against the Euro and at 83.5 against the yen. Most global stocks are down
for a third straight day, with Asian stocks on course for their biggest weekly
loss in nine months. European shares have held up somewhat better this week,
but are also lower as of this writing, prompting a slightly lower opening
call for US equities as well. Right now, metals are off slightly and giving
up earlier gains. It remains to be seen whether the group now follows the
energy markets, which likely will stay firm throughout the day, or react
more negatively to the strengthening dollar and the weaker tone seen in the
equity markets. We suspect that these countervailing influences will likely
keep the metals in a fairly sideways pattern for the next few days, but caution
that this drift cannot continue for too much longer, as it is already leading
to a noticeable deterioration in some of the chart patterns. ... Nickel
is at $27,860, up $10, and very quiet with a $200 trading range in place.
(read Ed Meir's complete morning base metals report
here)
(Yieh) According to report, Japan’s largest stainless steel maker, Nippon
Stainless Steel Corporation (NSSC), said it has raised its February export
prices for 300 series stainless steel as nickel raw material price keeps
rising.
CRU - Demand for ferrochrome has strengthened in February and the regional
disparities that were so prevalent in January have started to disappear.
Spot prices have consequently improved in all regions, generating hope among
ferrochrome producers that contract prices for Q2 will also increase. The
combination of strong demand and curbed output pushes molybdenum prices to
higher levels in the first two months of 2011. Even though Chinese molybdenum
units will soon be re-surfacing on the market, global demand growth is expected
to outpace supply for the time being.
Copper May Drop Following China’s Rate Increase, Survey Shows -
more
(SBB) Chinese stainless market quiet but cautiously optimistic
Cass - Although freight shipments got off to a slow start in the first half
of January, volume increased substantially as the month progressed and ended
12.3 percent higher than for January 2010. This is a strong sign that the
recovery is continuing forward.
BHP Coal Mines
Hit By Floods, Costs Rising - In the latest hit to Australia's mining industry
from devastating floods in Queensland, BHP Billiton Ltd. (BHP) said Thursday
that coking coal production from the state fell 30% quarter-on-quarter and
warned of a longer term impact for operations this year that could push up
prices for steelmakers across Asia. -
more
Steel prices rise
as demand to increase - Reports of an expected 10 percent increase in steel
demand in the United States this year sent some steel company stocks higher
Thursday, the same day AK Steel announced a price increase. -
more
ThyssenKrupp sees
rising losses at Americas plants - ThyssenKrupp said rising raw material
prices and environmental issues would add several hundred million euros to
the start-up costs at its $12 billion steel plants in Brazil and the United
States. -
more
Shanghai rebar,
iron ore prices at record - Shanghai steel futures rose to a record for a
fifth day in a row on Friday as index-based spot iron ore prices bolted to
all-time highs on tight supplies and strong demand from top buyer China.
-
more
Russian court
dismisses RusAl bid to invalidate Norilsk AGM decisions - A Siberian arbitration
court said on Friday it had dismissed a suit filed by the world's largest
aluminum producer RusAl against Russia's top nickel producer Norilsk Nickel
to declare invalid the election of Norilsk's board at its latest shareholders'
meeting. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China Developers Move Beyond Shanghai,
Beijing to Poorer Cities Amid Curbs // Wheat Hoarding Likely to Be `Widespread,'
Prompting Price Gains, UN Says // China Wheat Drought May Last to Spring,
Minister Says // North Korea Walks Out of Talks With South After Denying
Ship-Sinking Link // Japan’s Machinery Orders Rise for First Month in
Four // Asian Stocks Decline for Third Day This Week on Commodities; ASX
Advances // ECB Says Interest Rates Are `Still' Appropriate, Price Risks
May Increase // Bank of England Maintains Aid as Inflation Accelerates //
European Stocks Decline for Third Day; Air France, Credit Suisse Lead Drop
// Bernanke Makes Sure Fed Reminds Congress Deficit Bigger Than QE2 //
Homebuilders Undermined by Cost of Construction Boom's Flaws // U.S. Foreclosure
Filings Decline for Fourth Consecutive Month // U.S. Initial Jobless Claims
Fell 36,000 to 383,000 Last Week // Fed's Warsh Resigns; Bernanke Adviser
Questioned Stimulus // U.S. Stocks Retreat on Concern Over Cisco's Margin,
Inflation
The Euro continues to trade lower against the US Dollar, just over 3/4 of
1% at the moment. NYMEX crude is up 1/3 of 1% and trading at $87.01/barrel.
Gold is down slightly, while silver is down 4/10 of 1%. Base metals ended
the session lower as Chinese buying since their return from holiday remains
tepid. Indicator chart show nickel began to slump at the outset and spent
the last half of the day trying to gain a foothold. Dow Jones reports three
month nickel ended the day at $12.63/lb
. Stockpiles
of nickel stored in LME warehouses fell again yesterday and now total just
under the 131,900 tonne level. This is the first time we have seen numbers
below 132,000 since December 17th of last year. Sucden's day old chart shows
nickel stalling at $13/lb, much like it did at $12/lb
(chart here). The Baltic Dry Index continues to pick up
steam, adding another 44 points to its three day run. The drop in the Euro
for a second day is putting pressure on commodities but there are no warning
signs flashing yet that nickel is headed south.
Outlooks for Cobalt,
Lithium & Ferrochrome - The global economic recovery does not favor all
commodities equally. Cobalt and lithium, for example, are expected to remain
amply supplied even as demand increases, while the ferrochrome market will
remain relatively tight for the next several years despite shuttered capacity
waiting in the wings. -
more
Costly good night
for toxic US town - The pollute first, pay later model is catching up with
America, now forced to finance ever-mounting clean-up jobs – like this
one in the ghostly mining town of Picher. Kristi Eaton reports. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $.14/lb
lower, with other
base metals lower as well. The Euro is trading over 8/10 of 1% lower against
the US Dollar, adding pressure on commodities. NYMEX crude is off over 1/4
of 1% and trading at $86.48/barrel. Gold is lower by nearly 1/2 of 15 and
silver is lower by 1-1/4%. In overnight trading, Asian markets ended lower,
with China up 2%. European markets are lower this morning and US futures
show Wall Street may open lower as well. Nickel inventories continued to
fall yesterday.
Edward Meir of MF Global Morning Comments - Copper fell to a one-week low
yesterday in rather choppy trading, as a substantial rise in LME copper stocks,
coupled with nagging concern about Tuesday's rate increase by the Chinese,
both weighed on the market. Other metals also fell in sympathy, with the
price decline in zinc and lead being particularly pronounced. We were not
surprised by the move lower, as we think China’s rate increase was a
significant development, and one that will not easily fade away despite the
nonplussed investor reaction that first greeted its news. Metals are lower
right now, with lead and zinc once again showing the greatest percentage
declines. NYMEX energy prices are also lower (by about $.26/brl), although
the Brent contract is up, widening the differential between the two contracts
to a record high. The dollar is stronger today, now trading at $1.3640, almost
a full Euro higher than the yesterday on renewed Portuguese debt worries.
US stocks are expected to open lower following lackluster sessions in both
Europe and Asia. We expect to see sideways trading in most markets for the
balance of the week, as a period of consolidation is long overdue. However,
things may heat up once again this weekend in Egypt, (starting Friday), which
is why we would not want to get too short here. In this regard, there is
talk that protesters are now planning to move on to the state radio and
television building on Friday, while, a variety of strikes and labor protests
are also underway. In Cairo, hundreds of state electricity workers stood
in front of the main building, demanding the ouster of its director, while
public transport workers at five of the city's 17 garages vowed to bring
bus operations to a halt this week. Strikes were also evident for a second
day in Suez on Wednesday, as some 5,000 workers at various state companies
held separate walkouts at their factories. Traffic at the Suez Canal was
not affected, but clearly, the energy markets are worried, which explains
the relative strength in the Brent contract. Also out of the Middle East,
the Saudis denied rumors out earlier in the day that King Abdullah has died.
There was some interesting news from the ETP side of the metals business
when ETF securities reported yesterday that the amount of copper stock backing
its product dropped by one third to around 720 tons so far in February. Physical
nickel inventories dipped sharply to 78 tons from 402 times. The sole exception
was tin, where stocks more than doubled from 405 tons to 180 tons seen at
the end of January. None of these holdings are very significant, and should
the tonnages not pick up, we would not be surprised to see these products
pulled off the market altogether by the end of 2011, joining a heap of other
failed ETF's that simply do not have enough money under management to generate
adequate profits for their sponsors. ... Nickel is at $28,100, down
$275; charts still look solid and prices still have the potential to push
higher once the other metals start to turn around. (read Ed Meir's
complete morning base metals report
here)
(MB) Jinchuan takes nickel price 5% higher
(SO) In its 11th five-year plan period (2011-2015), China eliminated a total
of 110 million mt of iron-making capacity, 68 million mt of steel production
capacity, 330 million mt of cement output capacity and 100 million mt of
coke production capacity.
(MB) Bindura Nickel Corp is in the advanced stages of securing financing
for the reopening the Trojan mine in Zimbabwe, parent company Mwana Africa
.
(SBB) Stainless scrap imports surge in Korea, Japan
Chinese consumer confidence down in January -
more
The Ceridian-UCLA Pulse of Commerce Index™ (PCI), issued by the UCLA
Anderson School of Management and Ceridian Corporation fell 0.3% on a seasonally
and monthly workday adjusted basis in January, giving up some of December’s
exceptional 1.8% sequential gain. -
more
Freight Transportation Services Index (TSI) Rose 1.5% in December from November
-
more
CR Index: Consumers feeling financial stress but retail is recovering -
more
Japan' Exports Of
Ferro-Nickel In CY 2010 Decreased Slightly Compared To That In 2009 = Exports
For China Decreased To Half Of That In 2009, Exports For India Increased
By 2 Times - The quantity of ferro-nickel exported by Japan in the calender
year (January - December) of 2010 is estimated to be 31,313 tons on nickel
content base, having had a slight decrease of 0.6% compared to that (31,501
tons) in the preceding year of 2009. -
more
Holguin, Nickel Industry
in Moa Surpasses Production Plan - Workers of the nickel sector in the northeast
of Holguin surpassed the expected production for January 2011 in a 4%. -
more
Mining output
up 12% - South African mining production rose 12.2% year on year in December
after a slight downwardly revised 9.5% (9.6%) rise in November, Statistics
South Africa said on Thursday. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) `Heavy Lifting' to Come as China Leaves
Deposit Rate Below Inflation Pace // Yuan Seen Reaching 17-Year High on Rate
Increase: China Credit // Copper Prices Drop From Record as China Raises
Interest Rates // China to Sign Deal to Mine North Korean Rare Earths,
Yonhap Says // North Korea Ends Defense Talks With South Without Agreement
on Resumption // Thailand's Abhisit to Call Election by June, Won't Complete
His Full Term // Wiping Out Chronic Diseases May Add 10% to South Asia GDP,
World Bank Says // Asian Stocks Decline, Led by China-Related Companies;
Toyota Motor Climbs // German Exports Increased Second Month in December
// Italian Prosecutor Requests Berlusconi Trial for Power Abuse, Prostitution
// Inflation Surge Means BOE More Likely to Raise Rates, Industry Group Says
// European Stocks Retreat; Sanofi, Statoil Decline, LSE Surges // Wall Street
Boosts Borrowers as Real Estate Bond Market Returns // Two Fed Skeptics of
QE Say Inflation Underscores Risks // Home-Price Drop Leaves 27% of U.S.
Owners Underwater on Loans, Zillow Says // Bernanke Says Unemployment to
`Remain Elevated' // Most Stocks Fall on Inflation Concern; Treasuries, Wheat
Advance
The Euro is now trading over 6/10 of 1% higher against the US Dollar. NYMEX
crude is down nearly a 1/4% and trading at $86.75/barrel. Gold is down slightly
and silver is now lower, by 1/2%. Base metals ended the session lower
as an afternoon sell-off hit most commodities, including all base metals.
Indicator charts show nickel opened much lower, rose to $13/lb and then got
caught up in the afternoon sell-off. But not as bad as the others. Dow Jones
reports three month nickel ended the session at
$12.87/lb
, the only
LME metal not to drop today. Stockpiles of nickel stored worldwide in LME
approved warehouses fell yesterday and now sit just over the 132,300 tonne
level. Totals are now 5,436 tonnes off the high we have seen so far this
year back on January 17th. Sucden's chart was not updated today. The Baltic
Dry Index is showing signs it has bottomed out and is coming back. Numbers
gained 28 points overnight with all three sub indexes giving very positive
numbers. Markets opened today much like yesterday, lower on China interest
rate increases. While yesterday's morning nervousness was a reaction to the
surprise announcement, today's initial hesitation was caused by China's return
to the market and its negative reaction to the news. And while the market
tried to cast the concerns aside like yesterday, the equities market falling,
cast a chill over the metals market. Nickel is having the same problem with
$13/lb that it did at $12/lb, but held up well today.
(ROS) UC Rusal's statement that no ban was imposed on the buyback of Norilsk
Nickel's shares contradicts the court order and a supplemental letter sent
by the aluminum giant's representative to Norilsk Nickel, the press office
of Norilsk Nickel said today. "We recommend that the management of Rusal
take advice of professional lawyers to have a correct understanding of the
court ruling and not to mislead related parties," Norilsk Nickel's statement
reads.
Consumer Reports Index: Sentiment Rises as Consumers Face Fewer Financial
Woes at Start of 2011 -
more
Manufacturer Points to Dichotomy in Consumer Spending -
more
Structural Unemployment: Does Anyone Care About Evidence? -
more
Mortgage Applications Decrease as Rates Jump in Latest MBA Weekly Survey
-
more
RUSAL has little
chance of dropping Norilsk board-lawyer - Russia's UC RUSAL has little chance
of dismissing the board of mining giant Norilsk Nickel because a favourable
decision by a Caribbean court would not apply in Russia, an international
lawyer said on Tuesday. -
more
Men accused of selling
thousands’ worth of stolen metal - Scrap metal companies paid a man
more than $10,700 when he turned in allegedly stolen metal. -
more
Subprime
metals - Metals Markets Anomaly No.1 worth pondering, courtesy of
Citigroup’s Metals and Mining team in a note published on Monday: -
more
Show them your mettle:
commodities will offer rich rewards for courageous investors -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around
$.03/lb
lower but recovering, with other base metals trading lower this morning.
The Euro is currently trading 2/10 of 1% higher against the US Dollar. NYMEX
crude is up over 4/10 of 1% and trading at $87.31/barrel. Gold is 1/10% higher
and silver is up over 3.1%. In overnight trading, Asian markets ended lower,
with China returning and ending over 1% lower its first day back. European
markets are presently trading lower, while US futures are lower as well.
Nickel inventories fell yesterday.
Reuters morning base metal news - Copper falls on dollar, China rate hike
-
more
LME Morning - Metals traders on edge after Chinese rate rise -
more
Edward Meir of MF Global Morning Comments - Base metals sold off sharply
early in the day yesterday, but recovered to finish with only a modest, this
despite the news that China’s central bank raised interest rates by
25 basis points. In fact, the recovery in most markets was quite impressive,
with the Reuters-Jefferies CRB index dropping nearly half a percent immediately
after the announcement only to settle almost flat by the close. The Shanghai
Composite equity index also dipped by as much as 0.9%, but retraced much
of its decline by mid-morning, finishing down only 0.2%. The fact that the
commodity markets shrugged off this rather significant announcement shows
how resilient the complex really is, propped up by strong economic growth
practically the world over, coupled with strong fund flows that are seeking
out commodities as an asset class. However, despite the initial reaction,
we suspect the markets may get somewhat sloppy over the days ahead, as the
implication of this move has a chance to settle in. We should keep in mind
that with each successive rate increase, the impact on Chinese growth grows
almost exponentially, since the effect of interest rates at 6% is quite different
than at 3%. We should also point out that China’s real interest rates
are still in negative territory, meaning that further rises are likely. In
fact, a Reuters survey of economists expects the Chinese to raise rates at
least two more times this year, but we would not be surprised to see rates
hiked even more than that given that rates are still well below the 7.47%
level they were at before the financial crisis began. Government figures
expected next week are forecast to show producer prices advancing at a faster
pace than what was reported last month. Inflation worries are not limited
to China alone. The Wall Street Journal’s front page story today has
to do with inflation worries sweeping the globe, with the problem particularly
acute in emerging markets. Here in the US, although the headline inflation
readings are still tame, the yield on US 10-year treasuries hit 3.72% yesterday,
its highest level since April. Right now, metals are off slightly, with copper
trading just below the $10,000 mark, while we are seeing sharper declines
in zinc and lead. Asian equity markets finished slightly lower, and US stocks
are expected to open down as well. There has not been any significant macro
announcements from the US so far this week, but of Europe, Germany reported
an unexpected decline in industrial production in December on account of
cold temperatures. However, German exports remain resilient, with reports
out today showing that they have increased for a second month in December.
The dollar remains fairly steady, now trading at $1.3640 against the Euro.
... Nickel is at $28,275, down $105, and looks to be on track for an eventual
test of the $30,000 mark. (read Ed Meir's complete morning base metals
report
here)
(Yieh) South Korea’s Posco has announced to remain domestic prices of
stainless steel products unchanged after Chinese Lunar New Year vacation.
In fact, the company has already lifted stainless steel prices by US$181/ton
for January delivery.
(Reuters) Russian state bank VTB sold all its shares in Norilsk Nickel in
the miner's $3.5 billion buyback, Russian news agencies quoted the bank's
Deputy Chief Executive Vasily Titov as saying on Wednesday.
(JMB) Japan Major Stainless Steel Makers Impacted by Material Cost Upsurge
for Oct-Dec
The China Crude
Stainless Steel Production of 2010 is 11, 256 ,000 metric tons, increased
by 27.84% compared with 2009. -
more
Indonesia launches
monthly benchmark price for metals - Indonesia has launched monthly
benchmark prices for key base and precious metals to be in line with
international markets, as the resource-rich country seeks to boost revenue
from the mining sector, the energy ministry said on Wednesday. -
more
Japan Plans To Produces
5,420,000 Tons Of Special Steels In Jan. - Mar. 2011 Quarter = To Increase
By 4% From That In Q4 / 2010, Favorable Exports And Active Demand From Automobile
Sector - The Ministry of Economy, Trade and Industry of Japan released on
the 2nd of February a plan to produce special steel products (hot-rolled
products) in January - March quarter of 2011. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China Raises Key Interest Rates to
Counter Inflation // Chinese Steel-Pipe Makers to Face 86% U.S. Dumping Duties
After ITC Ruling // Commodities to Beat Emerging Market Stocks in 2011, SocGen
Says // Asian Stocks Fluctuate as Earnings Optimism Tempers Taiwan Tech Declines
// German Industrial Output Drops on Construction Slump // Italy Seeks to
Thwart German Efforts to Impose EU Debt-Reduction Targets // Most European
Stocks Gain; Swedbank, Swatch Rise as Earnings Top Estimates // Gasoline
Supply Rises to 21-Year High in Survey: Energy Markets // New-Home Recovery
Seen as Post-Super Bowl Selling Season Starts // Pimco Says Municipal Debt
Market Has Swung `Too Far Into Default Panic' // U.S. Stocks Gain as McDonald's
Leads Rally in Consumer Shares
The Euro is now trading 6/10 of 1% higher against the US Dollar. NYMEX crude
has reversed coarse and is now trading 2/10 of 1% higher and at $87.66/barrel.
Gold is over 1.1% higher and silver is up nearly 2.9%. Base metals ended
the session mostly higher as equity market bullishness overshadows Chinese
rate increase concerns. Indicator charts show nickel prices plunged in the
morning and recovered all of the morning losses by late afternoon, plus some.
Dow Jones reports three month nickel ended the day at
$12.87/lb
. Stockpiles
of nickel gained for a second consecutive day yesterday, the first time that
has happened this year, and while the two day gains are small, the total
now stands just over the 132,900 tonne level. Sucden's day old chart shows
yesterday's late afternoon sell off after the market punched thru the $13/lb
level
(chart here). Technically, this large sell off put the
RSI and SStoch into oversold territory. We have another two consecutive day
first for 2011 to report. The Baltic Dry Index rose 19 points today, for
only the third time it has increased this year. All three sub indexes were
positive as well. Today;s trading session was a story of two halves. During
the first half of the session, traders concentrated on the Chinese rate increase
announcement and metals plunged. Then US equity markets opened higher and
the markets worldwide seemed to sigh relief and markets recovered quickly.
Closing $.03/lb higher does not reflect the nearly $900/tonne drop nickel
took earlier.
More people choosing to rent, not buy, their home -
more
Aperam Swings To
Profit In 4Q, Expects Volume To Rise In 2011 - Stainless steel maker Aperam,
a recently spun-off unit of steel giant ArcelorMittal (MT), Tuesday reported
a fourth-quarter net profit of $2 million after a $12 million net loss a
year ago, on sales of $1.43 billion. -
more
Steel as an
economic indicator - High prices of iron ore and other raw materials have
hurt the steel industry. But the world's largest steel maker is predicting
a strong 2011. As Christopher Werth explains, growth in the steel industry
could mean growth in the global economy. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $0
no change at the
moment, but recovering from earlier lows, with other base metals quiet. The
Euro is trading nearly 1/2 of 1% higher against the US Dollar this morning.
NYMEX crude is off nearly 1-1/2% and trading at $86.19/barrel. Gold is down
nearly 2/10% and silver is lower by 2/10%. In overnight trading, Asian markets
that were open fell on news China was raising interest rates again this year.
European markets are lower this morning, while US futures show Wall Street
is trying to open in the positive. Nickel inventories rose again yesterday,
albeit not by much.
Edward Meir of MF Global Morning Comments - no report today (read
Ed Meir's complete morning base metals report
here)
(PT) Customs: Russia’s nickel exports down 1.8% on year in 2010
(JMB) Japan Stainless, Ti Makers Rush to Middle East Desalination Projects
(RB) Russian aluminum giant UC Rusal refuted today a statement of Norilsk
Nickel's subsidiary that a court had prohibited the buyback of Norilsk Nickel's
shares. According to UC Rusal's statement, the High Court of Justice of St.
Christopher & Nevis issued an interim order restraining Norilsk Nickel's
subsidiaries in voting with quasi-treasury shares of Norilsk Nickel and
prohibiting them from transferring or disposing of such shares.
(SBB) Type 304 coil moves up 1.3% in US market
Indian Metals & Ferro Alloy Q3 FY11 results update -
more
A Millionaire Steel Mogul With A Petting Zoo Refuses To Pay Child Support
-
more
After the Great Recession, the Great Regression -
more
China hikes interest rates again to damp inflation -
more
Vale Nickel Furnace
in Canada Shuts for Second Time This Year - A furnace at Vale SA’s Copper
Cliff nickel smelter in Canada was shut for the second time this year because
of a faulty wall, a company spokeswoman said. -
more
Ring of Fire
ferrochrome successfully processed at Xstrata Process Support facility -
The Extractive Metallurgy Group at Xstrata Process Support (XPS) has successfully
produced the first metallic product from Canadian chromite, according to
a Feb. 2 press release. -
more
Xstrata reports
sharply higher earnings - Resources group Xstrata reported on Tuesday that
it had generated a 544% rise in earnings per share to US$1.61 for the year
ended December 2010 from US$0.25 a year ago. -
more
Courtesy AISI - In
the week ending February 5, 2011, domestic raw steel production was 1,789,000
net tons while the capability utilization rate was 74.0 percent. Production
was 1,552,000 tons in the week ending February 5, 2010, while the capability
utilization then was 64.2 percent. The current week production represents
a 15.3 percent increase from the same period in the previous year. Production
for the week ending February 5, 2011 is up 0.4 percent from the previous
week ending January 29, 2011 when production was 1,782,000 tons and the rate
of capability utilization was 73.7 percent.
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) HSBC in Talks With Qatar to Clarify
Order Shutting Islamic Banking Units // Sugar Shortage Looms as Storm Ruins
Australian Crop // Australia Must Cut Programs to Pay for Rebuilding After
Cyclone, Swan Says // Asian Stocks Fluctuate as Higher Earnings Temper Lower
Oil Prices on Egypt // Euro Buys Merkel Time as Bond-Treasury Spread Widens
// Gruebel's Rebuilt UBS Trails Credit Suisse in Money From Rich // Egypt's
Opposition Agree With Suleiman on First Steps // European Stocks Rise to
September 2008 High; SolarWorld, Adidas Increase // Fed Spending 40% on Benchmark
Treasuries as Newest Bonds Proving Cheapest // Stocks Rise on Takeovers,
Economy; Egyptian Bonds, Copper Rally
The Euro is now trading 1/4 of 1% lower against the US Dollar. NYMEX crude
is off more than 1.4% and trading at $87.77/barrel. Gold is up slightly while
silver is up over 8/10 of 1%. Base metals ended the session slightly lower,
and well off earlier highs. Indicator charts show nickel opened higher, trading
over $13/lb much of the morning, then collapsed late in the day. For the
day, Dow Jones reports three month nickel closed at
$12.84/lb
. Stockpiles
of nickel stored in LME approved warehouses rose slightly on Friday and now
total just over the 132,800 tonne level. Sucden's day old chart shows nickel
still entrenched in an uptrend
(chart here). As we predicted on Friday, the Baltic Dry
Index finally put in a positive reading today, but brother, is it ever a
weak positive. Reuters is quoting some analyst as saying technicals point
to nickel trading at $15.00/lb within 4 weeks, while Ed from MF Global states
he feels nickel is getting ready to stall as it approaches the $13.60/lb
mark. Will be interesting to see who is right, if either.
(FF) Iron Ore prices remain steady near record highs today as volumes drop
with the Chinese New Year. Market reopens on Wednesday and expectations are
that prices will soar as the market remains tight over the coming months.
Economists React: ‘Ton of Noise’ in Jobs Report -
more
Number of the Week: Businesses’ Unemployment Taxes Rise -
more
It's Official, the Credit Markets Are Going Berserk Again -
more
Cuba says nickel
industry recovering from bad year - Cuba's production of unrefined nickel
plus cobalt bounced back in January, official media reported Monday, after
perhaps the industry's worst performance in a decade last year when, Reuters
estimated, output fell to well below 70,000 tonnes. -
more
S. Africa
2010 Ferrochrome Output Was 3.8 Million Tons, Core Says - South African
ferrochrome producers probably produced an estimated 3.8 million metric tons
of the stainless steel raw material last year, Lara Smith, the managing director
of Core Consultants, told the Mining Indaba conference in Cape Town, South
Africa today. -
more
Rio Tinto ready
to reveal a record profit – and this time, investors want less of it
spent - Rio Tinto, the Anglo-Australian mining company, will this week reveal
it made record profits of about $14bn (£8.7bn) last year, thanks to
soaring commodity prices as a result of strong demand from Asia. -
more
AK Steel Drives for
More Pricing Power - AK Steel reported earnings January 25. The news was
good enough to send the stock up 7.7% and back above its 200-day moving average
(DMA). -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.16/lb
higher, with all London
traded base metals higher this morning. The Euro continues to trade lower
against the US Dollar, down over 1/10 of 1% so far today, but what is typically
a roadblock to higher metals prices, is not adding much resistance. NYMEX
crude is up nearly 3/10% and trading at $89.28/barrel. Gold is down slightly
and silver is up nearly 3/10%. In overnight trading, with most Asian
markets close until Wednesday, those open closed mixed and mostly higher.
European markets are trading higher this morning and US futures show Wall
Street should start the week in a good mood. Nickel inventories rose ever
so slightly on Friday.
Edward Meir of MF Global Morning Comments - Copper pushed well above $10,000
a ton on Friday and also managed to close above this key psychological mark
for the first time, as the buying in metals shows no sign of ebbing. Copper
in particular was boosted by a report (first out last Thursday) that Chile
may face an energy squeeze by mid-year on account of drought and high energy
demand. In fact, Chile’s Energy and Mining Minister said that if things
did not improve in this regard, the government could start power rationing.
The stronger dollar did not impact metals much on Friday, although it did
take its toll on both energy and precious metals, both of which ended lower.
The dollar moved higher despite the fact that the January US nonfarm payroll
report came in much lighter than expected. We suspect that investors were
more impressed by the sharp decline in the unemployment rate (to 9%), while
attributing the anemic nonfarm payroll increase mainly to weather conditions
that may have hampered applicants from starting new jobs. We will have to
see how next month's labor report shapes up, but the modest increase reported
last month does not seem to conform with the strong readings we are seeing
in other hiring gauges, notably the ADP's private payroll report. As of this
writing, metals are up again, with copper starting to pull away from the
$10,000 mark, while the rest of the metals are showing more modest gains,
although tin is the exception, and now in record territory once again. For
a second day in a row, the metals complex is defying the impact of the stronger
dollar, with the Euro now at $1.3540, (a two-week low), this time pressured
by a report of a bigger-than-expected fall in German industrial orders data.
Jean-Claude Trichet's comments on Friday that the ECB may not move on interest
rates started the most recent slide in the Euro. .... Nickel
is at $28,725, up $375, and on track for an eventual test of the $30,000
mark, where we think the current advance could finally stall. (read
Ed Meir's complete morning base metals report
here)
(Reuters) Technicals-LME nickel to rise to $33,110/T in four weeks
(MP) US ferro-chrome rangebound as tightness offsets demand slowdown
EU manufacturing rebound solidly entrenched -
more
Bernanke Bets Commodities Won't Fan Inflation Concern -
more
East Asia's
Ni-Based Stainless Export Market Shooting Up - The stainless steel export
market for Ni-based CR sheets is shooting up in East Asia before the lunar
New Year holidays in China and elsewhere, a complete change of the environment.
For an indicator, the export market has advanced by US$200-300/ton since
the beginning of this week. -
more
Mwana Africa's
Bindura in off-take deal with Glencore - Zimbabwe's Bindura Nickel Corp (BNC),
majority owned by multi-commodity resources firm Mwana Africa, signed a nickel
off-take agreement with Glencore International AG , the world's biggest
commodities trader. -
more
Norilsk Nickel
suspends share buyback on court order - Norilsk Nickel, the world's largest
nickel and palladium producer, said on Monday that it had suspended a buyback
offer for more than 7 percent of its shares following a court order. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) Japanese Steel Takeover Driven by
‘Radical’ Shift // Indonesia Raises Main Rate for First Time Since
2008 // Asian Earnings Swell From U.S. Consumer Spending, China's Economic
Growth // Asian Stocks Advance to Two-Week High on Steel Takeover, Improving
Profits // Egyptians Mass After Friday Prayer to Force Out Mubarak // Merkel
Turns Crisis into Opportunity to Reshape Euro Zone // ECB's Nowotny Lets
`Cat Out of Bag' With 2012 Inflation Forecast // Franco-German Divide on
Debt Crisis May Mark Europe Summit // European Stocks Gain as U.S. Jobless
Rate Drops; YIT, Enel Rise on Profits // U.S. Commercial Property Recovery
Spares Economy Another Blow // U.S. Jobless Rate Falls to 9%; Payrolls Rise
by Only 36,000 // Treasuries Fall, Dollar Gains, Stocks Fluctuate After Jobs
Data
The Euro continues to trade lower against the US Dollar, by 1/3 of 1% at
the moment. NYMEX crude is lower by over 1-1/2% and trading at $89.14/barrel.
Gold is down 6/10% , while silver is slightly higher. Base metals ended the
session higher. Indicator chart show nickel began to rise at the beginning
and while hesitation once after breaking thru $28,000/tonne, it recovered
and continued to climb. Dow Jones reports three month nickel ended the day
at $12.86/lb
. While putting
up some resistance over the last three days, the $28,000 tonne threshold
was easily taken out today. Stockpiles of nickel stored in LME approved
warehouses fell yet again yesterday, and now stand just under the 132,800
tonne level. Sucden day old chart shows nickel trading over the past week
(chart here). Notice the morning started with technicals
showing the bull had room to run. Cancelled warrants fell below the 4% threshold
for the first time since mid January. The Baltic Dry Index dropped another
two points today but two of the three sub indexes have gone positive, so
we may see a positive number on Monday. It will be interesting to see if
this spring is setting up to be a repeat of 2010 as far as nickel pricing
goes. On January 12, 2010, we closed at $8.03/lb. By April 20th of that year,
the market saw nickel close at $12.38/lb, It then fell to a low close on
June 4th, 2010 of $8.14/lb, where it has been climbing ever since.
(Stahleisen) EUROFER’s Q1-2011 steel market outlook signals that despite
slowing growth in the 2nd half of last year, the EU economy is on track for
further recovery in 2011-2012.
Cliffs says Sudbury,
Ont., is possible site for new ferrochrome processing plant - Cliffs Natural
Resources Inc. says it’s considering the city of Sudbury in northern
Ontario as the site for a new plant to process ore from a proposed chromite
mine. - more
Nickel Asia
CEO: Unfair to blame Palawan journo death on mining industry - In an interview
with Business Nightly on Feb. 3, Gerry Brimo, president and CEO of Nickel
Asia Corp, said it is "sad" and "very unfair" to blame the entire mining
industry for the recent violent death of Gerry Ortega, an environmentalist
and a journalist. -
more
Norilsk sees boost
in Arctic output from 2016 - Russia's Norilsk Nickel, the world's biggest
nickel and palladium producer, said on Friday it hopes to increase nickel,
palladium and copper extraction from its Russian Arctic assets from 2016.
-
more
European steel
sees Q2 promise after lean turn of year - Rising iron ore and coal costs
set the stage for a weak final quarter for Europe's steelmakers, and a recent
surge in steel prices will have come too late to spare them from a lean start
to the year. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.05/lb
higher, with other
London traded base metals higher as well. The Euro is trading slightly lower
against the US Dollar so far this morning. NYMEX crude is up nearly 1/2%
and trading at $90.95/barrel. Gold is Down over 1/2% and silver is off by
3/10%. In overnight trading, Asian markets ended higher, with China closed
for holiday. European markets are trading higher this morning, while US futures
show Wall Street may open higher. Nickel inventories fell yesterday.
Edward Meir of MF Global Morning Comments - no report Friday
(Keith Goode) Nickel was seen as dependent on the success of the new nickel
laterite plants and the allowed production from nickel pig-iron. So far,
the only new nickel HPAL (high pressure acid leach) laterite plant in continuous
operation is Minara's. Ramu is stuck trying to get approval for its plan
to discharge tailings into the sea, Ambatovy has pumping issues with its
250km long pipe-line between parts of the plant, Goro blew up its acid plant
and is apparently on hold to mid-2011, Ravensthorpe is an unknown, and Koniambo
was ~90% complete as far as construction was concerned with commissioning
expected in 2011. -
more
(Yieh) Base metal prices on the LME were impacted by the issue of Egypt crisis.
This unrest of regime makes the prices up in the trade market. The prices
of Copper and Nickel had hit the peak and an intra-day high yesterday.
How U.S. Income Groups Get Squeezed By Food Prices -
more
Food and metals markets calm after the storm -
more
Australia nickel,
zinc units restart after cyclone - Australia's second-biggest nickel refinery
and largest zinc mine are set to reopen by the weekend, after both were shut
down along with other metal producers ahead of Cyclone Yasi this week. -
more
A Centenary of
Stainless Steel - Planning is underway to celebrate A Centenary of Stainless
Steel. On 20th August 1913, local metallurgist Harry Brearley made his first
arc furnace cast of stainless steel in Sheffield. -
more
China Produced 11.30
Million Tons Of Crude Stainless Steel In CY 2010 = Increased By 28% From
That In 2009, Transformed To Country To Export Stainless Steel With Net Quantity
- According to the data released in last week by China Special Steel Enterprise
Association, the output of crude stainless steel by China in the calender
year (January - December) of 2010 came up to 11.30 million tons, having had
a substantial increase of 28% compared with that in the preceding year of
2009. -
more
Japan's Nippon Steel,
Sumitomo Metal to merge in 2012 - Japan's largest steelmaker Nippon Steel
Corp and Sumitomo Metal Industries Ltd said Thursday they had agreed to merge
in October 2012 to survive fierce global competition. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) Japanese Stocks Fall on Earnings,
Egypt Unrest; Australia Rises // Cyclone Yasi, Stronger Than Katrina, Hits
Australia // Food Inflation Quickens to One-Month High, Boosting Interest-Rate
Pressure // Cyclone Yasi Hits Australian Sugar Crops, Price Advances to 30-Year
High // Trichet Keeps Rate on Hold, Balances Inflation Concern Against Debt
Crisis // Trichet Says Prices Warrant `Very Close Monitoring' // France Pushes
for Buybacks to Stem Financial Crisis in Split With Germany // Oil Climbs
on Egypt as Stocks Decline; Copper Hits $10,000 // Roach Says U.S. Faces
Dollar Decline as China Becomes Importer // Euro Slides as Trichet Damps
Rate Speculation; U.S. Stocks Slip //
The Euro is now down nearly 1.2% against the US Dollar. NYMEX crude is down
over 1/10 of 1% and trading at $90.75/barrel. Gold is up over 1/4% and silver
is higher by over 1.6%. Base metals ended lower, but considering the drop
the Euro took, the prices held rather well. Indicator chart show nickel opened
higher, fell hard, then recovered some late. Dow Jones reports three month
nickel ended the session at $12.67/lb, the Euro is helping
the $28,000 tonne level put up a third day of resistance. Stockpiles of nickel
stored in LME approved warehouses slipped yesterday and now stands at the
133,500 tonne level. Sucden's day old chart shows nickel trading thru yesterday
(chart here). Markets are unusually quiet today, with
Australia and the US recovering for huge storms, much of Asia on holiday,
and the rest watching events in Egypt warily as a telling Friday is fast
approaching.
No Need To Flip A
Coin: Nickel Looks Poised For Another Good Year - Often lost in the shuffle
in the conversation about base metals is nickel. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:10 am CST show 3 month nickel trading around $.08/lb
lower, with other
London traded base metals quiet and mixed. The Euro is trading 4/10 of 1%
lower against the US Dollar presently. NYMEX crude is up 3/4 of 1% and trading
at $91.52/barrel. Gold is down over 1/2% and silver is off 1/3%. In overnight
trading, Asian markets were quiet, with many Asian markets closed for Lunar
New Years festivities until the 9th. European markets are slightly lower
this morning, and US futures show Wall Street may open lower. NIckel stockpiles
fell yesterday.
Edward Meir of MF Global Morning Comments - Copper prices ended unchanged
on Wednesday in very quiet trading, unable to break through the psychologically
significant $10,000 mark, and snapping a five-day winning streak in the process.
There were modest gains in the rest of the metals, except for aluminum, which
retreated from the mid-$2500 resistance to finish lower. Indeed, there was
a subdued feel to most markets yesterday, with energy ending with a modest
gain, as did the euro and the US stock market. The restrained performances
were somewhat surprising given that the situation in Egypt started to deteriorate
immediately following President Mubarak's defiant address on Tuesday. Fierce
clashes broke out between supporters and opponents of the regime on Wednesday,
leaving one person dead and roughly 850 injured. We suspect the crisis is
now moving into yet another critical phase where the uptick in the violence
will either generate a more heavy-handed response by the government and elements
of the army, or failing that, an outright capitulation by the Egyptian president.
In the meantime, the commodity markets will likely hold at relatively steady
levels while waiting for the drama to play out. As of this writing, we are
seeing a rather mixed tone in the LME metals in very quiet trading, but a
more spirited advance is taking place in energy, where crude oil prices are
up almost $1 a barrel on account of the continuing unrest in Egypt. The dollar
is slightly stronger today, now trading at $1.3750, but has not been doing
much at all for much of this week. US stocks are expected to open lower,
while waiting for macro data out later today that could provide further
direction. Yesterday, the ADP employment report out of the US showed
private-sector job growth rising by 187,000 this past month, well ahead of
estimates, although last month’s giant gain was revised to 247,000 compared
to an earlier estimate of 297,000. Later today, we get Q4 productivity (expected
at 2.2%), initial claims (expected at 425,000), December factory orders (expected
at -.7%), and ISM services (expected at 57).On Friday, the government will
report on January’s nonfarm payrolls, where a gain of 140,000 is expected.
.... Nickel is at $27,830, down $170, and basically where we were at
this time yesterday. We are still looking for a test of the $30,000 mark.
(read Ed Meir's complete morning base metals report
here)
(Reuters) The 30,000-tonnes-per-year QNI nickel refinery remained shut after
the brunt of the cyclone slammed into the coastline overnight packing winds
forecast up to 300 km (186 miles) an hour near its core, a spokesman for
the refinery said. "It is not yet safe to conduct an inspection of the site,"
the spokesman said.
(JMB) NSSC to Increase Ni Stainless Steel Price by 10,000 yen/t in February
(AMM) The blizzard that slammed the Midwest on Tuesday and lingered for nearly
24 hours temporarily shut down or altered operations across a wide swath
of steel mills, scrapyards, service centers and major end-users.
Commodities Reach Two-Year High as Global Growth Drives Demand -
more
Strong La Niña event persists in the Pacific -
more
Soaring LME
nickel prices dampen consumer interest in molybdenum - London Metal Exchange
nickel settlement levels hitting $27,725/mt on Wednesday has dampened Japanese
consumer interest in molybdenum products, market sources said Thursday. -
more
Balance On Exports
And Imports Of Molybdenum By China In CY 2010 = Main Three Items Were Exports
Of 30 Million Lbs. And Imports Of 35 Million Lbs On Mo Content Base - According
to the customs-statistics released in last week in China, the quantities
(on Mo content base) of main three items (molybdenum oxide, molybdenum sulfide
and ferro-molybdenum) traded by China in the calender year (January - December)
of 2010 were <> exports : 30.1 million lbs and <> imports : 35.0
million lbs. as per the table attached hereto. As far as these three molybdenum
products are concerned, the imports still exceeded by 16% in comparison with
the exports. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China's Wen Pledges to Curb Property
Speculation, Add More Low-Cost Homes // Shipping Rates Seen Bottoming on
Demolitions: Freight Markets // Copper Rises to Record, Aluminum, Nickel
Climb as China Grows // BOJ’s Kamezaki Says Economic Slowdown Is Temporary
// Asian Stocks Climb the Most in Two Months on Earnings, U.S. Manufacturing
// EU Leaders Plan Euro Pledge as Investors Bet on Debt Strategy // Greece
Is `Confident' on EU Debt Crisis Agreement, Papaconstantinou Says // Most
European Stocks Drop as Electrolux, Scania Fall; BHP Billiton Rises // ADP
Estimates Companies in U.S. Added 187,000 Jobs // VIX Retreating to Three-Year
Low Is Fastest-Growing Options Bet // Snow, Freezing Rain Cancel Flights,
Trains, School Across U.S.// U.S. Stocks Decline on Egypt Riot, Valuations;
Broadcom, Aflac Shares Fall
The Euro is currently trading 1/3 of 1% lower against the US Dollar. NYMEX
crude is down over 1/2 of 1% and trading at $90.29/barrel. Gold is down over
9/10 of 1% and silver is off silver is lower by 1.3%. Base metals ended mixed
and mostly higher. Indicator charts show nickel rose early and fell late.
Dow Jones reports three month nickel ended the second trading day of February
at $12.70/lb, unchanged from
yesterday. Stockpiles of nickel stored worldwide in LME approved warehouses
fell yesterday and now stands just over the 134,150 tonne level. Sucden's
day old chart shows nickel has clearly resumed its uptrend
(chart here). The Baltic Dry Index fell 23 points to 1,084.
Not a whole lot of news in the nickel or stainless industry but weather and
strife wise, it almost seems like the world has tilted out of control recently.
Egyptians protests turned violent today when pro-Mubarak protesters clashed
violently with pro-Democracy protesters. A massive blizzard is blowing thru
the US Northeast today, after shutting down the midwest US. And Queensland,
Australia, already pounded this year by severe and deadly floods, is now
being pounded by Cyclone Yasi. You can watch ABC News live reports
(here) or listen to ABC radio reports
(here).
Record world stainless
steel output in 2010 - another expected in 2011 - MEPS expects global crude
stainless steel output for 2010 to have reached an all-time high total of
30.45 million tonnes, 7.4 percent more than the previous record figure from
2006. -
more
Dominican
Republic nickel mine on the brink of bonanza - The day when Xstrata Nickel
(formerly Falconbridge) resumes the extraction of nickel approaches and it
expects to produce around 14,000 tons, or 50% of its capacity estimated at
29,000 tons per year. -
more
Global Steel
Prices Continue Their Upward Surge - Transaction prices are moving relentlessly
upwards worldwide as steelmakers address their escalating raw material costs.
- more
New report on Norilsk
Nickel: More pollution, less information - A new Bellona report on Russia’s
Norilsk Nickel shows that harmful pollution will continue to come from the
mining company based in Russia’s north, and that it could become worse.
-
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:00 am CST show 3 month nickel trading around $.01/lb
lower, with other
London traded base metals mixed and mostly lower. The Euro is currently trading
about 2/10 of 1% lower against the US Dollar. NYMEX crude is off 1/10 of
1% and trading at $90.67/barrel. Gold is off 4/10 of 1% and silver is 3/4
of 1% lower. In overnight trading, Asian markets ended higher, with China
up slightly as many countries begin their Lunar New Year Holiday. European
markets are up slightly and US market futures are slightly higher as well.
Nickel inventories fell yesterday. Asian markets are closed today for Lunar
New Year and will return on February 9th. In the US, a major blizzard has
shut down much of the midwest and is heading into the northeast. And in
Australia, Cyclone Yasi has come ashore. Cyclone Yasi live blog -
here Live video streams from Townsville -
here
Edward Meir of MF Global Morning Comments - Copper prices rallied to a new
record high yesterday, as positive macro data fueled the advance, as did
a slightly weaker dollar and a roaring US equity market. Other metals were
lifted in copper's wake, with tin hitting a new record high, while nickel
and ali both hit 28 month-peaks. Macro data was instrumental in sparking
the surge; in addition to the constructive purchasing index numbers we got
from both China and Europe yesterday, it was reported that US manufacturing
activity also expanded at its strongest pace since May 2004. Sub-components
in the report showed that the new orders index for January hit 67.8 from
62.0 seen in the month before, while hiring had its best showing since May
2004, with the employment index at 61.7 from 58.9. However, pricing pressures
were notable, expanding by their widest margin since July 2008. A separate
report showed continued weakness in the housing sector, with US construction
spending falling for a second consecutive month in December. Later today,
we get ADP employment data out of the US (expected at 150,000). Right now,
metals are slightly lower, as copper seems to be backing off from the $10,000
mark it neared earlier today, and which now seems to be the next psychological
barrier. However, given the strong momentum evident in the markets, we suspect
a successful attempt will be made to take this level out. The dollar opened
the day much weaker, getting to a low of $1.3860, but has strengthened right
now to around $1.3790. Oil markets are flat after a mixed session yesterday,
while US stocks are called to open slightly higher. In Egyptian developments,
President Mubarak said late yesterday that he will not be seeking reelection,
but that he will stay in power until September to oversee a transition.
Opposition leaders were roundly critical of the decision and are unlikely
to heed the military’s instruction to call off their demonstrations.
President Obama followed with an announcement of his own, calling for a political
transition to begin "now", clearly a signal to the Egyptian president that
he is overstaying his welcome. We suspect that the yet unresolved political
standoff in Egypt will likely keep oil prices fairly well bid, and this will
likely feed through to the rest of the commodity group. The dollar obviously
does not seem to be assuming its usual “safe-haven” role in the
wake of the unrest, and so cannot be viewed as a source of potential downward
pressure on metals. Finally, remember the giant sucking sound that was supposed
to accompany the launch of the much-feared, metal-scooping ETF’s launched
last December? After two months of trading, the amount of metal held to back
up the copper product is only about 2,070 tons, while total holdings in physical
nickel are at 402 tons. Tin holdings are at 180 tons, and all this is in
a bull market. More products are on the way later this quarter. We won’t
hold our breath. .... Nickel is at $27,820, down $175. Nickel has taken out
its previous resistance on the charts, and we are now looking for a test
of the $30,000 mark. (read Ed Meir's complete morning base metals
report
here)
(MFG) World stainless steel output hit a record high of 30.45 million tons
in 2010 and will rise further to more than 31.0 million tons in 2011,
British-based steel consultancy MEPS said. Top producer, China, saw a 2010
total output of over 11 million tons, over double the level seen in 2006.
Total US stainless steel output was estimated to have grown almost 40% from
2009, but it was still lower than the 2006 peak.
Reuters - Nickel production from Australia's 30,000 tonnes-per-year Yabulu
refinery has been suspended as a precaution, a spokesman for the refinery's
owner, QNI Ltd, said.
(PR) ScotiaMocatta, the precious and base metals division of Scotiabank,
today announced that their base metals platform is now live. With four people
in London, four in New York and one in Hong Kong, ScotiaMocatta's base metals
team is managing transactions in copper, aluminum, lead, nickel, tin and
zinc.
(OC) Workers at Vale Inc.'s Voisey's Bay nickel producer in Newfoundland
and Labrador have voted 88 per cent in favour of ratifying last week's five-year
contract settlement to end a 17-month-long strike, but it will be more than
seven weeks before concentrates start flowing for smelting in Sudbury, Ont.,
again.
Stainless steel
production seen up 7% in 2011 -SMR - Stainless steel production is likely
to grow by 7 percent in 2011 after touching a record in 2010, according to
stainless and special steel consulting firm Steel & Metals Market Research
(SMR). -
more
Mines Close,
Ships Flee as Cyclone Yasi Nears Australian Coast - Coal and zinc mines are
shut and at least 32 coal ships are steaming out to sea, as sugarcane and
banana farmers in northeastern Australia brace for the forecast landfall
today of Tropical Cyclone Yasi. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China’s Manufacturing Growth Maintains
Rate Pressure // China's Housing Market Nears U.S., Japan Bubble Levels:
Chart of the Day // Commodities Overtake Stocks, Bonds After Two-Day Gain
on Egypt // Stocks Advance, Copper Climbs to Record on Growth Outlook; Dollar
Weakens // German Unemployment Falls to Lowest Since 1992; Jobless Rate Drops
to 7.4% // EU Nears Agreement on Bailout Fund Buying New Bonds // European
Stocks Surge Most in Two Months; BHP, Infineon Advance // U.S. Manufacturing
Rose More Than Expected in January // US Stocks Rise on Economy as Dollar
Weakens; Copper Jumps to Record
The Euro is now trading nearly 9/10 of 1% higher against the US Dollar. NYMEX
crude is down over 4/10 of 1% and trading at $91.79/barrel. Gold i sup nearly
2/10 of 1% and silver is up 1%. Base metals all ended the first trading day
of February solidly higher. Indicator charts show nickel started off trading
higher and did nothing but climb for most of the day. Dow Jones reports three
month nickel ended the day at $12.70/lb. Stockpiles of nickel
stored in LME approved warehouses rose yesterday and now sit just over the
134,400 tonne level. Sucden's day old chart was not updated today, but nickel
has clearly broke out of its recent trend to the upside. Ed Meir is warning
that $30,000 is the next target, and today's movement makes that more likely
than yesterday. We have updated our PMI page where we follow 4 of the world's
most watched manufacturing indexes
(here).
(Bloomberg) More than 500 workers at the Brits operations of Hernic Ferrochrome
(Pty) Ltd. started a strike over pay yesterday, South Africa’s National
Union of Mineworkers said in an e-mailed statement today.
Vale wants N.L.
mine workers back on the job - The owners of a northern Labrador nickel mine
hope to have all employees back to work near Voisey's Bay within seven weeks.
-
more
PH No. 7 in
world nickel in 2 years - By late 2012 or early the following year, Nickel
Asia would be the No. 7 top producer of refined nickel in the world. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:00 am CST show 3 month nickel trading around $.16/lb
higher, with most base
metals trading higher this morning. The Euro is trading 1/3 of 1% higher
against the US Dollar at the moment. NYMEX crude is down 3/4 of 1% and trading
at $91.51/barrel. Gold is up 1/4 of 1% and silver is up 34 of 1%. In overnight
trading Asian markets ended higher, with China up 3/4 of 1%. European markets
are trading higher and US futures show Wall Street should open higher. According
to Bloomberg, nickel is trading this morning at a level last seen in May
of 2008. Mines all over northeast Australia are closing as Cyclone YASI
approaches (more).
We are in the Midwest US and under a blizzard warning for today, so update
timing is questionable.
Edward Meir of MF Global Morning Comments - Copper came very close to its
record high of $9781 yesterday, as the buying that has gripped the commodity
complex post the Egyptian unrest, continues into a second week. There were
good advances in the rest of the metals as well, with tin prices hitting
a record high north of $30,000, while nickel also picked up steam, hitting
two-year highs. For a second day in a row, oil prices continued to race higher,
with Brent passing the psychologically important $100 mark. Macro data out
of the US was generally supportive; December personal income and spending
reports both came in just about in line with estimates, and the Chicago PMI
rose to 68.8 in December, its best reading since 1988. This morning, copper
is comfortably in record territory, while aluminum has pushed through the
$2500 mark, and is on track retest its 2011 high of $2541. The dollar is
slightly weaker today, now trading at $1.3750 against the Euro and at a two-month
low, and may be a contributing factor to the rally, as is strong Chinese
manufacturing data that came out earlier in the day. In this regard, a reading
on the country’s manufacturing base came in at 52.9, solidly in growth
territory, while a PMI reading from HSBC Holdings and Markit Economics rose
to 54.5 from 54.4. However, both indices continue to point underlying pricing
pressures in terms of input costs. Some China-watchers are interpreting the
strong numbers to mean that we could see another interest rate move after
the Chinese Lunar New Year holiday. Out of Europe, a gauge of manufacturing
in the region rose to 57.3 this month from 57.1 in December, Markit Economics
said. This is the highest reading since April and is above the initially
reported 56.9. A separate report showed German unemployment falling to an
18-year low last month. Less of a positive, was the fact that inflation in
the euro region has now accelerated to a 2.4% annual rate in January, the
fastest since October 2008. .... Nickel is at $27,691, up $341. Another
close above $27,250 today (likely) will set the market up to test the $30,000
mark. (read Ed Meir's complete morning base metals report
here)
(Dow Jones) Merafe Resources Ltd. said Tuesday its full-year ferrochrome
production increased by 48% on the year, after the miner restarted most of
its furnaces due to improved demand.
(Yieh) The spot prices of high carbon ferro-chrome in South Africa has soared
by US$10 cents to US$110 cent/lb., enlarging the price gap between base prices
and spot prices.
(Yieh) Reportedly, Taiwan’s Walsin and Yieh Hisng have announced the
new price policy for February delivery. The two companies have increase the
prices of 304 series stainless steel wire rod by NT$4,000/ton averagely;
at the same time, that for 316 series has hiked by NT$1,000~NT$2,000/ton.
(Dow Jones) European Nickel PLC, a firm company engaged in the identification,
acquisition, development and exploitation of nickel deposits, said Tuesday
Chairman, David Whitehead, will be stepping down from the Board by the next
annual meeting, which is expected to be held in August.
(NR) S'tomo Metal Mining To Double Output Of Nickel Concentrate
Food-cost shocks ripple worldwide from Iowa -
more
China's PMI drops to 5-month low of 52.9% in January -
more
Labrador nickel
miners vote to end strike - Workers at the Voisey's Bay nickel mine in northern
Labrador voted overwhelmingly Monday to accept a new contract that ends a
strike that dragged on for almost a year and half. -
more
Domestic Price Of
Ni-Based Stainless Scrap In Japan Rises To Yen 200,000 / Ton From This Week
= Anticipated Reduction In Production Of Ni-Contained Pig Iron In China May
Influence On Price OF S/S Scrap - The domestic price of nickel-based stainless
steel scrap (new clippings) to be purchased by stainless steel companies
of Japan is strengthening a tendency to rise further and has risen to a level
of Yen 200,000 per metric ton delivered to mills from this week as forecasted.
-
more
US Steel Imports Jumped
47.2 Percent in 2010 - U.S. steel imports last year rose 47.2 percent from
recession levels in 2009 and signs point to further improvement this year,
said David Phelps, president of the American Institute for International
Steel. -
more
Courtesy AISI - In
the week ending January 29, 2011, domestic raw steel production was 1,782,000
net tons while the capability utilization rate was 73.7 percent. Production
was 1,552,000 tons in the week ending January 29, 2010, while the capability
utilization then was 64.2 percent. The current week production represents
a 14.8 percent increase from the same period in the previous year. Production
for the week ending January 29, 2011 is up 0.9 percent from the previous
week ending January 22, 2011 when production was 1,766,000 tons and the rate
of capability utilization was 73.0 percent.
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
All prices shown on this page are indications only. "A Guide To
LME
Trading"...pdf here "The ABCs of a Metals Exchange"
...pdf here(Molybdenum
prices are for molybdenum oxide, an ingredient and major price factor in
316 stainless) (all ton listings are metric tons = 2204.622 pounds ) Updated
daily before 8 am CST and before 1 pm CST weekdays -
DisclaimerCandlestick Pattern Dictionary
here / Intro to Candlesticks
here Original content and opinions copyright
www.estainlesssteel.com. Note - For real time and official
LME prices, LME requires a user subscribe to be an authorized LME vendor.
Daily
Nickel/Stainless Steel Wrap-up
(
Reports
Commodity/Economic Articles and Comments
Russia's young
flock to work in Arctic mine town - Lung-blackening pollution and Arctic
isolation have not stopped Russian mining giant Norilsk Nickel from attracting
graduates to work in its mines. -
Brazil's
Vale Expects Commercial Nickel Output At VNC In 2011 - Brazilian miner Vale
SA, the world's second-biggest nickel producer, said Friday it expects this
year to start commercial nickel metal production at its Vale New Caledonia
nickel plant, which was formerly named Goro. -
Glencore:
The biggest company you never heard of - A powerful and secretive Swiss trader
is likely to list this year. Can the Goldman Sachs of commodity trading survive
going public? -
Morning Nickel
Inventory and Price Statistics & Figures
US Trade-STATS-January
Steel Imports By Country - U.S. import for consumption of steel products
from selected countries and areas. Not seasonally adjusted on census basis.
-
Somalia,
Sudan, Afghanistan and DRC top global risks ranking while South Korea
demonstrates resilience - The important growth economies of India, Indonesia,
Nigeria, the Philippines and Russia are all rated ‘high risk’ in
a ranking of 175 countries that evaluates the key strategic, operational
and reputational risks for business. -
China's refined
lead and tin imports fall in 2010 - China's refined lead and tin and
imports tumbled in January, while refined zinc and nickel imports saw healthy
increases, according to Feb. 25 figures from the General Administration of
Customs (GAC). -
World Consumption
Of Ferro-Chrome In CY 2011 Is Anticipated To Come Up To 9.50 Million Tons=
A Forecast By Yildirim CEO And President Of Eti Krom / Turkey - According
to a forecast of the world demand for ferro-chrome in 2011 said on the 18th
of February by Mr. Robert Yuksel Yildirim, CEO and President of Eti Krom
Inc., which is a major producer of chrome ore and ferro-chrome in Turkey,
the total quantity of ferro-chrome to be consumed in the world in the calender
year (January - December) of 2011 is expected to come up to 9.50 million
tons on material base, having a considerable increase compared to that (8.4
million tons) recorded in 2008. -
Paliudju Governor
Gives Ultimatum to PT Inco - TEMPO Interactive, PALU:Central Sulawesi Governor
H.B. Paliudju has given an ultimatum to PT International Nickel Corporation
(Inco) to conduct mining activities in Morowali regency, especially in the
Bahodopi and Kolonodale blocks. -
Sherritt expects
production declines in Cuba for ‘11 - In a pessimistic outlook for its
Cuban operations this year, Canadian energy and mining concern Sherritt
International expects production declines in all its business areas for 2011.
-
Vale Profit Quadruples,
Tops Estimates on Higher Iron-Ore Prices - Vale SA, the world’s largest
iron- ore producer, said its fourth-quarter profit almost quadrupled, beating
analysts’ estimates, because of surging prices for the raw material
used to make steel. -
Severe weather,
forecasting could prompt force majeure rethink - Worsening weather and better
forecasting methods could push the mining sector to change force majeure
provisions in supply contracts and sharpen how blame is allotted when storms
or floods disrupt regular business. -
(
An increase in nickel
laterite shipments to China this month may signal a revival in the country's
nickel pig iron production after a slump in the past few months on the back
of constrained ore supply and Beijing's push to meet energy emission targets.
-
Nisshin: consolidation
key in Japan stainless sector - Consolidation is key for Japan's stainless
steel industry to survive global competition, the president of Japan's
fifth-biggest steelmaker Nisshin Steel said on Thursday. -
Steel prices will
continue to increase: Tata Steel - Tata Steel today said prices of steel
will continue to show an upward trend in near future due to rise in cost
of raw materials. -
ThyssenKrupp plans
hefty steel price hike - ThyssenKrupp, Germany's biggest steelmaker, said
it planned a hefty increase of its flat carbon steel products in the next
two quarters amidst a continuing positive trend in Europe. -
Minara's Murrin
mine returning after flood - Minara Resources is focussed on returning
the Murrin Murrin Nickel mine to full production after recent heavy rains
and flooding affected operations. -
Canada snag cuts
Vale 2011 nickel output 5 pct - Brazilian miner Vale said on Friday it will
lose around 5 percent of its total 2011 nickel production due to a 16-week
shutdown of a smelter furnace in Canada. -
Aperam CEO Would
Consider Stainless Steel Mergers - Aperam, the stainless-steel producer spun
off by ArcelorMittal, would consider mergers in an industry that’s beset
by overcapacity and surging costs. -
DJ Nickel Set For
Sharp Price Rise As Fundamentals Improve- Eramet - The outlook for the nickel
market is "very positive" with potentially sharp price increases likely through
2011, the chairman and chief executive of French mining group Eramet said
Thursday. -
Talvivaara blames
weather for missed mining targets - Finish miner Talvivaara was punished
on Thursday for missing nickel and zinc production targets in 2010, even
though it managed to narrow its losses for the year. -
Mining projects
22 000 new jobs - South Africa’s mining sector anticipates adding jobs
to the economy but the extent of job creation is tempered by the uncertainty
around the nationalisation debate and the legislative framework. -
Suspension
of new mining applications met with mixed reactions - The government has
started canceling non-moving mining applications, and while some mining
executives welcome the cleansing process (which includes the government's
move not to entertain new mining applications in the meantime), some fear
it may be a double-edged sword for the industry. -
, the only
LME metal not to drop today. Stockpiles of nickel stored worldwide in LME
approved warehouses fell yesterday and now sit just over the 132,300 tonne
level. Totals are now 5,436 tonnes off the high we have seen so far this
year back on January 17th. Sucden's chart was not updated today. The Baltic
Dry Index is showing signs it has bottomed out and is coming back. Numbers
gained 28 points overnight with all three sub indexes giving very positive
numbers. Markets opened today much like yesterday, lower on China interest
rate increases. While yesterday's morning nervousness was a reaction to the
surprise announcement, today's initial hesitation was caused by China's return
to the market and its negative reaction to the news. And while the market
tried to cast the concerns aside like yesterday, the equities market falling,
cast a chill over the metals market. Nickel is having the same problem with
$13/lb that it did at $12/lb, but held up well today.
East Asia's
Ni-Based Stainless Export Market Shooting Up - The stainless steel export
market for Ni-based CR sheets is shooting up in East Asia before the lunar
New Year holidays in China and elsewhere, a complete change of the environment.
For an indicator, the export market has advanced by US$200-300/ton since
the beginning of this week. -
Mwana Africa's
Bindura in off-take deal with Glencore - Zimbabwe's Bindura Nickel Corp (BNC),
majority owned by multi-commodity resources firm Mwana Africa, signed a nickel
off-take agreement with Glencore International AG , the world's biggest
commodities trader. -
Dominican
Republic nickel mine on the brink of bonanza - The day when Xstrata Nickel
(formerly Falconbridge) resumes the extraction of nickel approaches and it
expects to produce around 14,000 tons, or 50% of its capacity estimated at
29,000 tons per year. -
New report on Norilsk
Nickel: More pollution, less information - A new Bellona report on Russia’s
Norilsk Nickel shows that harmful pollution will continue to come from the
mining company based in Russia’s north, and that it could become worse.
-
