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news covering the period of February 2020
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Friday, February 28
Daily Nickel/Stainless Steel Briefing
Nickel closed Thursday's trading
session at $5.61/lb ($12,375/tonne). Indicators at 6:40 am CST today show
nickel trading around $.07/lb lower,
but at the moment, off earlier lows. Stockpiles of nickel, after
taking a break for two days, gained over 5500 tonnes yesterday and
started the final trading session of February, just over the 235,400
tonne level. In China, the Shanghai Futures Exchange reports nickel
stockpiles fell 1045 tonnes to 34,900 tonnes during the past week.The
markets are very ugly, as traders join the rest of society,
nervously seeking information on what the coronavirus might do next.
This week, as the virus spread rapidly outside the borders of China, we
witnessed the 'politification' of the virus here in this country. Both
sides are blaming the other for something that hasn't even happened
yet. Our President is accusing the media and Democrats for spreading
fear, and yet his reassuring press conference Wednesday evening, was
followed by the worst single point drop in Wall Street history. People
are frightened and politicians act more concerned with making the other
guy look bad, or putting the muzzle on government experts. Information,
good, bad, or indifferent is what people and traders want - not a
politician deciding what he wants Americans to hear. Even the
appearance that someone 'in the know' might be hiding something from
the public, will stoke even greater fear and uncertainty. As we say
goodbye to a brutal February and enter a new month with deep concerns
on what it might have in store for us,
we want to once again thank our February sponsor - Taunton Metals.
Because of Taunton -
and our other monthly sponsors - this news page continues to be updated
daily
during 2020 and remains free to daily visitors. We hope each of you has
a safe and relaxing weekend, and that March is kinder to all.
Average price of LME traded cash nickel
so far this month
- $5.79/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - London aluminium falls to 40-month low as coronavirus hits demand - more
U.S. Imports of Stainless Steel Mill Products - more
The Commodities Feed: Covid-19 worries grow - more
Total
Deaths as of Yesterday
Total
Infections as of Yesterday
2,804
82,294
Virus News
Coronavirus - By The Numbers - here CDC Confirms Possible Instance of Community Spread of COVID-19 in U.S. - more
Coronavirus: Dog of Hong Kong Covid-19 patient tests ‘weak positive’ for virus - more
Pence Will Control All Coronavirus Messaging From Health Officials - more
Washington Post reports "A prominent Chinese health expert said
Thursday he believed China could “basically control” the coronavirus by
the end of April."
Since the U.S. President apparently sees the stock market as his personal daily
approval
rating, and now blames the recent setbacks on political rivals, we
wanted to take a moment and apologize if the worldwide spread of the coronavirus is causing
any undue stress.
"It's all sunshine and butterflies out there folks
... sunshine
and butterflies".
Thursday's market review - Spread of coronavirus pushes
copper to three-week low - Copper prices hit three-week lows on
Thursday as the market worried about the spread of the coronavirus from
China to other countries and the threat it poses to global economic
growth and demand for industrial metals. - more
Chinese metals association suggests stockpiling as virus hits demand -
China should stockpile some non-ferrous metals to take the pressure off
producers whose sales have been drying up because of the country’s
coronavirus outbreak, the China Nonferrous Metals Industry Association
(CNIA) said on Thursday. - more
Steel Supply Chain Disrupted by Chinese COVID-19 Outbreak - Market
participants, worldwide, are growing increasingly concerned about the
coronavirus and the impact it will have on the global steel market. - more
China ferrous metals' sell-off intensifies amid pandemic, recession fears - more
Coronavirus to hit Nornickel’s nickel and copper markets - Russian
mining company Norilsk Nickel (Nornickel) has announced that the recent
outbreak of coronavirus in China is expected to hit two of its key
markets, nickel and copper. - more
Steel Imports Down 10 Percent in January 2020 Compared to January 2019
- Based on preliminary Census Bureau data, the American Iron and Steel
Institute (AISI) reported today that the U.S. imported a total of
3,135,000 net tons (NT) of steel in January 2020, including 1,633,000
net tons (NT) of finished steel (down 9.9% and 33.4%, respectively, vs.
January 2019). - more
Fjordland, CanAlaska team up on Manitoba nickel project - Fjordland
Exploration has executed a non-binding letter of intent with CanAlaska
Uranium to be granted the option to acquire up to an 80% interest in
CanAlaska’s wholly-owned Hunter and Strong properties, part of
CanAlaska’s North Thompson nickel project in Manitoba, Canada. - more
Nickel closed Wednesday's trading
session at $5.69/lb ($12,550/tonne). Indicators at 6:15 am CST today show
nickel trading around $.07/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell for
a second consecutive day and started today just under the 229,900 tonne
level. Nickel was able to pull off a bullish day yesterday, but the
$100/tonne gain did not last very long. Nickel appeared to be following
positive returns on Wall Street but after London trading closed, Wall
Street turned negative. Wall Street futures are down again this
morning, reflecting the pessimistic mood of the market with the corona
virus nearing a pandemic designation.
Average price of LME traded cash nickel
so far this month
- $5.81/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Spread of coronavirus keeps copper near three-week lows - more
U.S. Imports for Consumption of Steel Products January 2020 - more
Steel Times International Digital February 2020 - online here
Total
Deaths as of Yesterday
Total
Infections as of Yesterday
2,761
81,109
Virus News
Why are we panicked about coronavirus — and calm about the flu? - more
Zara Phillips will not self-isolate after Italy trip (posted for charts in the article) - more
Stock market slammed by fears coronavirus will deliver a ‘supply shock’ that central bankers can’t fix - more
Characteristics of and Important Lessons From the Coronavirus Disease 2019 (COVID-19) Outbreak in China - more
Coronavirus: the hunt for ‘patient zero’ – and why the world’s health may depend on it - more
Iran is reporting 19 deaths, but only 139 cases. With a 1 - 2% fatality
rate seen in China and elsewhere, this means there are over 1000
Iranian's out there who are sick and not yet diagnosed. Italy has
reported 12 dead and only 320 infected. Either the death rate is
getting worse, or more likely, yet equally alarming, there are a whole
lot of undiagnosed carriers out there walking around.
South Korea's new daily infections now ahead of China
Saudi Arabia suspends holy pilgrimages to Mecca and Medina to out of country visitors out of coronavirus concerns
Wednesday's market review - Copper slides to 3-week low,
inventories reinforce demand fears - Copper prices slid to three-week
lows on Wednesday as large deliveries of the metal to London Metal
Exchange-registered warehouses reinforced demand worries fuelled by the
spread of the coronavirus beyond China. - more
Nornickel neutral on nickel with assumptions clouded by coronavirus -
Russian nickel, copper and PGM producer Nornickel posted Wednesday
neutral outlook for nickel saying it expects overall balanced market
this year although the recent coronavirus outbreak poses a downside
risk to its assumptions. - more
Russia: stainless steel consumption almost unchanged in 2019 - In 2019,
stainless steel consumption in Russia increased by 27 tons YoY, to
497807 tons. Compared with 2017 the result grew by 5.5%. - more
Documentary series digs up mining’s ‘dirty business’ - The documentary
series Green Blood exposes the web of powerful interests in the mining
sector, and the pitfalls facing journalists who try to expose them. - more
New Caledonia rethinks key power project - New Caledonia's government
says the energy company NCE will seek fresh tenders to build a new
power station in Noumea - needed to also supply energy to the SLN
nickel company. - more
Cruise ship ban continues in New Caledonia's outer islands - New
Caledonia's Isle of Pines has extended its ban on cruise ships until
the end of March as a measure to fend off the coronavirus. - more (article mentions nickel carriers)
Nickel closed Tuesday's trading
session at $5.65/lb ($12,450/tonne). Indicators
at 6:10 am CST today show
nickel trading around $.03/lb
lower. Stockpiles of nickel stored in LME licensed warehouses rose
slightly on Tuesday and started today;s session just under the 230,200
tonne level.Nickel squeaked out a gain yesterday,
but $20/tonne is not exactly what one would call a 'rebound'. Things
were looking better until U.S equity markets opened up and turned sour again.
Today, base metals traders don't appear to be waiting for any negative
signal from Wall Street, which at the moment appears to be perplexed at
where it wants to head for the day. We had quite a bit to report on
the coronavirus, so we moved our comments to the applicable section.
Nickel is again trading at levels not seen since July of last year.
It's long term trend since September of last year remains on the
negative side.
Average price of LME traded cash nickel
so far this month
- $5.82/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper falls as spreading virus sparks pandemic fears - more
Producer Price Index - Corrugated and Solid Fiber Box - more
Producer Price Index - Corrugated Paperboard in Sheets and Rolls - more
Total
Deaths as of Yesterday
Total
Infections as of Yesterday
2,700
80,239
Virus News
CDC official warns Americans it's not a question of if coronavirus will spread, but when - more
What does it mean if coronavirus is declared a pandemic? - more
No matter what you think about Iran, it is disconcerting to watch one
of the leading medical officials of any country, for better wording,
unwittingly spread a disease he is downplaying at the same time. It is
also just a tad concerning to see the leading medical official of any
country falling ill to a virus who, of all people, should know how to
protect themselves from said virus. One can not help wonder if #1 if
this guy can get it, no one is safe and #2 the government's 'truth' and
reality are not always the same. Ok the latter really isn't a surprise,
but its still a punch in the gut when reality takes on a human face.
Yesterday, in China, for every new diagnosed infection, five former
infected were cleared and released from their hospitals as cured. Last
Tuesday, the Chinese reported 1,886 new confirmed cases - yesterday
they reported 508. Statistically, it appears China is getting a handle
on this virus. But now it has entered the global arena and taken the
world by surprise. and when news came it had hit Italy, Europe suddenly
had an unpleasant bullseye on it. Even US officials admitted openly
yesterday, it was no longer if it will reach the U.S., but when.
From yesterday's CDC news briefing - (excerpt) It would be
impossible. We’re not seeing spread here in the United States
yet, but it is possible, even likely, that it may eventually
happen. Our goal continues to be slowing the introduction of the
virus into the U.S. This buys us more time to prepare our
communities for more cases and possibly sustained spread. This
new virus represents a tremendous public health threat. We don’t
yet have a vaccine for this novel virus, nor do we have a medicine to
treat it specifically. - you can read the entire news briefing here
And if you are a business owner, pay special attention to this part
"These materials will serve as a blueprint for the community
interventions we will use here in the U.S. if you’re watching the
news, you may be hearing about schools shutting down and businesses
closing in countries in Asia to reduce the potential spread of this
virus. The day may come where we need to implement such measures
in the U.S. communities."
Brazil confirms the first case in Latin America. South Korea over 1000 cases. Italy over 300 cases.
Tuesday's market review - Copper drifts as investors worry
about virus hitting demand - Copper prices edged into the red on
Tuesday as investors struggled to calculate whether any
coronavirus-related loss of metals demand would outweigh weaker output.
- more
January 2020 crude steel production - World crude steel production for
the 64 countries reporting to the World Steel Association (worldsteel)
was 154.4 million tonnes (Mt) in January 2020, a 2.1% increase compared
to January 2019. - more
Deal with locals at New Caledonia's Vale in doubt - New Caledonia's
Vale nickel company has met representatives of the indigenous Rheebu
Nuu group and local customary leaders as the company is in the process
of selling its 59 percent stake. - more
Gov’t now spending millions to promote responsible mining - Three years
ago, under the leadership of former Environment Secretary Regina Paz
Lopez, Mines and Geosciences Bureau (MGB) was leading the crackdown in
the mining sector. Today, it is spending millions to promote it. - more
Report: Coronavirus outbreak may delay US$11B of nickel projects in
Indonesia - The coronavirus outbreak in China may delay the development
of about US$11 billion worth of nickel projects in Indonesia, Reuters
reported Feb. 25, citing Luhut Pandjaitan, Indonesia's coordinating
minister for maritime affairs and investment. - more
Microscopic Refinement Yields Ultra-Strong Metal - You can’t see them,
but most of the metals around you—coins, silverware, even the steel
beams holding up buildings and overpasses—are made up of tiny metal
grains. - more
Former
manager of Norilsk Nickel declared bankrupt - The Moscow Commercial
Court has declared businessman and ex-manager of Norilsk Nickel, one of
the largest producers of nickel platinum and copper, Maxim Finsky
bankrupt, according to court records. - more
Termites Show Miners The Way To A Low Carbon Future - The quest to
replace fossil fuels is hampered by shortages of some of the minerals
used for batteries and dynamos. Scientists at Australia's CSIRO are
seeking ways to make it easier to find minerals like cobalt and nickel,
and are getting help from termites. - more
Nickel closed Monday's trading
session at $5.64/lb ($12,430/tonne). Indicators at 6:20 am CST today show
nickel trading around $.09/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose
yesterday and started the day just under the 230,300 tonne level. For
the first 17 work days this month, we have seen inventory gains of over
1000 tonnes on 11 of them. And on 9 of those, the gains were in the
multiple thousands, with 3 days showing gains of over 4000 tonnes.
Markets around the world are rebounding off yesterday's lows, with base
metals gaining back some of their losses. Nickel traders are trying to
take nickel back in the black, and not let the metal experience a
second losing month. It appears as the coronavirus spreads, media
outlets are having a more difficult time keeping tabs on current
outbreak numbers so we may drop the deaths/infections today graph below
and just publish what the WHO announces for the prior day. We suspect
the rate of spread is now pretty obvious to everyone so it is no longer
necessary to show the nay sayers were wrong. The Mediterranean and
Middle East region appear to be the newest threat to a global pandemic,
and quite possibly, since it involves multiple governments, many of who
don't like one another, carries the potential for a greater threat than
China. Let's keep our fingers crossed this bug gets bit soon.
Average price of LME traded cash nickel
so far this month
- $5.83/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Base metals rise on bargain hunting despite spreading virus - more
Conic Metals Corp Investor Presentation - pdf here
Ferrochrome and viral outbreak in China — what’s ahead? - more
Total
Deaths as of Today
Total
Deaths as of Yesterday
Total
Infections as of Today
Total Infections as of Yesterday
2,700+
2,618
80,000+
79,331
Virus News
White House Will Ask Congress for Emergency Coronavirus Funds - more
Coronavirus: World must prepare for pandemic, says WHO - more
You’re Likely to Get the Coronavirus - more
A Coronavirus Quarantine in America Could Be a Giant Legal Mess - more
CNN - "A survey of small enterprises in China found that only 30% have resumed business"
Kuwait (3 cases), Bahrain (1 case), Afghanistan (1 case), Iraq (1 case)
and Oman (2 cases) reported their first confirmed infections from the
coronavirus on Monday.
On Monday, China confirmed 409 new cases of coronavirus. On the same
date, they released 1,846 patients who had been cured of the infection.
So far, they have released nearly 25,000 coronavirus patients after
recovery.
Monday's market review - Zinc hit its lowest level since
June 2016 on Monday and other industrial metals prices also slumped on
fears the spread of the coronavirus outside China will further hit
global growth and metals demand. - more
China logistics crunch hits Europe scrap metal exports - Severe
logistical disruption and port congestion in China since the end of
January has slashed the global availability of shipping containers, and
many European exporters of non-ferrous scrap have warned of more
delivery delays and further price increases in Asia-Pacific in the
coming months. - more
Jilin, Shaanxi agree on 2.8 billion yuan molybdenum project - A major
molybdenum industry cooperation project worth 2.8 billion yuan ($398.05
million) was signed between Northeast China's Jilin province and
Northwest China's Shaanxi province on Feb 21, according to local
reports. - more
EU's last nickel smelter heads for the gallows, or an afterlife - The
final countdown has begun for Larco, the European Union's only
remaining nickel smelter, its 1,260 workers and their families. - more
Indonesia expects delay to $11 billion nickel projects due to
coronavirus outbreak - minister - Indonesia's coordinating minister
overseeing maritime resources and investment affairs said on Tuesday
that the coronavirus outbreak in China will likely delay development of
nickel projects in the Southeast Asian country worth about $11 billion.
- more
POLL: Minnesota opposed to mining near Boundary Waters Canoe Area, but
it, too, is somewhat political - Apparently, even mining near
Minnesota’s Boundary Waters Canoe Area Wilderness is political. - more
Courtesy AISI - In the week ending on February 15, 2020, domestic raw
steel production was 1,907,000 net tons while the capability
utilization rate was 81.8 percent. Production was 1,917,000 net tons in
the week ending February 15, 2019 while the capability utilization then
was 82.4 percent. The current week production represents a 0.5 percent
decrease from the same period in the previous year. Production for the
week ending February 15, 2020 is up 0.4 percent from the previous week
ending February 8, 2020 when production was 1,899,000 net tons and the
rate of capability utilization was 81.4 percent. - more
The Dow tumbled more than 1,000 points and
marked its third-worst point drop in history — here’s how the stock
market tends to perform after big drops - more
U.S. Futures Fluctuate as Treasuries Turn Higher: Markets Wrap - more
Nickel closed Friday's trading
session at $5.68/lb ($12,530/tonne). Indicators at 6:10 am CST today show
nickel trading around $.01/lb
lower. If you got excited on Friday with that 66 tonne drop in LME
nickel stockpiles, you probably won't be impressed with the 4200+ tonne
gain reported today. Stockpiles began the week just over the 228,900
tonne level, a level last seen in September 2018. There is good and bad
news on the corona virus front this morning. The good news is the rate
of infections is slowing in China, while the bad news is it is
spreading quickly in other areas of the world. Italy, Iran, and South
Korea are the current hot spots. Besides the obvious supply/demand
concerns
being caused by the disruptions caused by the corona virus outbreak on
China, the indirect effect on LME metals trading is the rush by
investors into the safe haven U.S. Dollar. As the Euro weakens against
the Dollar, LME metals become more expensive. Thus, part of the
weakness we see in nickel's traded price is due to the strengthening
U.S. Dollar. For that reason, we have added a second chart in this top
section on the Euro/US Dollar ratio. Another chart worth keeping an eye
on is the Baltic Dry Index, the last link in this update. There is an
article we posted below that reports car sales in China are down 92%
this month - posted for those who are skeptical this event will have
much of an economic effect. Equity markets are apparently concerned
about the spread into Europe, with markets around the world trading
lower. Dow futures are down over 700 points at the moment, and European
markets are just ugly. Industry news is light, with all eyes on the
virus. We did do some China news digging this weekend, not easy when
you don't speak the language, and found some about the Chinese
stainless steel industry - posted below. Lot of mines reported
quarterly or year end results late last week - posted under reports. AK
Steel published March surcharges Friday and they are down to levels
last seen in July of last year. We will update our surcharge page when
Allegheny publishes. It's the last week of February and a full five
days to work with. We hope you have a profitable week!
Average price of LME traded cash nickel
so far this month
- $5.84/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Zinc falls to over 3-1/2-year low on high inventories - more
Virus News
World is approaching coronavirus tipping point, experts say - more
Global shipping has been hit by the coronavirus. Now goods are getting stranded - more
Chinese medical expert warns recovered coronavirus patients may still be contagious - more
Coronavirus outbreak: Ukrainian protesters hurl rocks at buses after falling for hoax - more
Vancouver’s Chinese restaurants are empty amid coronavirus fears. - more
Italy imposes draconian rules to stop spread of coronavirus - more Coronavirus: asymptomatic Wuhan woman shows why outbreak 'will be hard to stop' - more
Coronavirus did not originate in Wuhan seafood market, Chinese scientists say - more
In non coronavirus news .....
Weekly U.S. Influenza Surveillance Report - "CDC estimates that so far
this season there have been at least 29 million flu illnesses, 280,000
hospitalizations and 16,000 deaths from flu." - source
Friday's market review - Copper bounces despite rise in virus cases, dollar slips - Copper rebounded on
Friday as speculators surprised the market with a bout of buying
late in the session despite a rise in new coronavirus cases in
China. - more
News bites found in China media (subject to correct translation and the reliability of the source) -
Baosteel Desheng began reducing production on Friday - anticipate cut of
up to 50% due to #1 Poor logistics #2 Raw material shortages and #3
Downstream demand affected by delay in restarts. Pohang in Zhangjiagang
suspended operations on Thursday due to same reasons. More plants
are expected to follow suit.
Turkey's stainless steel imports fall while exports rise - Turkish
imports of stainless steel coils with widths of 600 mm and above fell
in 2019, amid the slowdown seen in stainless consumption sectors in
Turkey last year. - more
China car sales tumble by 92% as coronavirus weighs on industry - Car
sales in China have collapsed by 92% as the coronavirus shutdown wreaks
havoc on the automotive industry. - more
Nickel closed Thursday's trading
session at $5.75/lb ($12,670/tonne). Indicators at 7:15 am CST today show
nickel trading around $.06/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell
slightly on Thursday, breaking a strong of multi thousand daily gains.
Totals began Friday around the 224,700 tonne level. Shanghai Futures,
which reports its inventory numbers weekly, reported nickel stock fell
849 tonnes to 35,945 tonnes this week. The number of new coronavirus
infections reported fell yesterday and the equity markets responded.
Overnight they spiked again, with the infection spreading outside of
China at an alarming rate, and equity markets are joining base metals
today in a retreat. News ends the week on a quiet note. We hope you
have a safe and enjoyable weekend and invite you to join us next week.
Average price of LME traded cash nickel
so far this month
- $5.86/lb
Virus News
Coronavirus: South Korea Says COVID-19 Cases Doubled In 24 Hours - more
Coronavirus-contaminated cruise ships mirror the global crisis - more
World Health Organization Daily Updates - more
National Health Commission / China Daily Updates - more
Thursday's market review - Copper falls on fears of
coronavirus spread and strong dollar - Copper prices slipped on
Thursday, weakened by fears that the coronavirus outbreak in China
could spread globally and further dampen economic growth and metals
demand. - more
Brazil's Vale reports surprise loss amid base metal issues - Brazilian
iron ore miner Vale SA severely missed quarterly profit and margin
estimates on Thursday, largely due to impairments related to its base
metal and coal operations and the lingering effects of a deadly dam
burst in January 2019. - more
Vale Indonesia increases revenue despite falling production - Publicly
listed nickel producer PT Vale Indonesia has recorded higher revenue
and earnings before interest and tax last year as nickel prices went up
in the second half of 2019. - more
That study of copper-nickel mining's effects on U.S.-Canada waters?
It's eight paragraphs long, McCollum says = The U.S. State
Department's report on copper-nickel mining's environmental effects on
international waters shared by the United States and Canada is only
eight paragraphs long, U.S. Rep. Betty McCollum, DFL-Minn., said in a
news release Thursday, Feb. 20. - more
Bitterroot, Below join forces at nickel-copper-PGM project in Michigan
- Bitterroot Resources and Below Exploration have entered into an
option/JV agreement whereby the latter can earn a 49% joint venture
interest in Bitterroot’s 100%-leased LM
nickel-copper-platinum-palladium property in Baraga County, Michigan. -
more
Nickel closed yesterday's trading
session at $5.82/lb ($12,825/tonne). Indicators at 6:20 am CST today show
nickel trading
unchanged. Stockpiles of nickel continue to blossom, and started today
just under the 224,800 tonne level. We are back to October 2018 levels
in LME stockpiles. Nickel is actually trading, it's traded within a
$250/tonne band during the last 24 hours. It just happened to close
overnight where it did the night before and is trading at the moment,
the same as it was yesterday at this time. Like watching paint dry.
While the spread of the virus is slowing in China, where quarantine
measures appear to be working, there is still a great deal of concern
amongst those who have the responsibility to see it not spread. China
is criticized by some and praised by others for the measures it has
taken, and those who criticize seem to think they needed to take more
draconian measures. Can you imagine the US government trying to lock
down Boston for two weeks? They did it for a day after the Boston
marathon bombing, and that was unprecedented. Two weeks? Or longer? I
am one of those who look at China taking the measures they feel is
necessary to protect their people and economy and once the dust
settles, they will do enough self analysis to learn for the future.
Instead of pointing fingers, we should be thankful that it is not us,
and watch and learn. Enjoy your Thursday.
Average price of LME traded cash nickel
so far this month
- $5.87/lb
Virus News
Japanese expert who sneaked onto Diamond Princess cruise ship describes 'zero infection control' for coronavirus - more
13
hours after Iran reported two people in that country had tested
positive with the coronavirus, they reported two of their elderly
citizens had died from the virus.
Yesterday's market review - Copper steady but virus clouds
China demand prospects - Copper prices steadied on Wednesday near
three-week highs as top consumer China announced further measures to
help shore up growth hit by the coronavirus outbreak, but concern about
the eventual damage to the economy capped gains. - more
Indonesia stops nickel cooperation with China, turns to choose US -
According to the market news, the Indonesian government rejected to
continue to cooperate with China on the nickel mine, and the US was the
main reason. - more(no idea what this is about, will investigate and advise if I find anything- until then I am suspicious of its authenticity)
Omnibus bill to centralize permit processing, offer incentives for miners - more
WBMS Press Release February 2020 - The nickel market was in deficit
during January to December 2019 with apparent demand exceeding
production by 2.2 kt. In the whole of 2018, the calculated deficit was
98.7 kt. - more
Vale Indonesia's 2019 nickel in matte output down 5.1% year on
year - Nickel miner PT Vale Indonesia produced 71,025 tonnes of nickel
in matte last year, down 5.1% from 2018, the Indonesian mining company
said in a statement on Thursday. - more
Process Against Cerro Matoso for Nickel Royalties Stopped - The
Comptroller opened a process of fiscal responsibility for a detriment
estimated at $ 619,680,857,421 against four former vice presidents of
the National Mining Agency (ANM) and the mining concession company. - more
Canada's ‘Ring of Fire’ Is Loaded with Mineral Deposits But... - The
struggle over the mineral deposits in Ontario’s Ring of Fire has taken
a surprising turn. - more
Mayor accused of fanning the flames - Twitter comments have embroiled
another politician in controversy. This time, it was Ely Mayor Chuck
Novak in the hot seat at Tuesday’s city council meeting as several
residents and local business owners chastised the mayor over comments
he recently posted in support of a boycott against Fortune Bay Resort
Casino. - more
Alarming Recent Developments Concerning Clive Palmer and Australian
Politics - Something is off in Australian state politics. Over the
course of a week, Clive Palmer-related news hit one after the other,
showing signs that the mining tycoon and billionaire may be looking to
interfere in both state and federal politics, for motives yet
unknown. - more
A special welcome to Taunton customers today. As an advertiser, Taunton
is among those companies who want to stay on top of the market to
better serve you. We thank them for their support.
Daily Nickel/Stainless Steel Briefing
Nickel closed Tuesday's trading
session at $5.82/lb ($12,820/tonne). Indicators at 6:120 am CST today show
nickel trading
unchanged. Stockpiles of nickel stored in LME licensed warehouses
continued their multi-thousand gains on Tuesday and started today just
over the 220,900 tonne level. Just after we said the market appeared to
be using the $13,000/tonne level as a line of support, rather than
resistance, nickel fell below, and closed below, that level for the
first time since the 7th. Another close below could send a negative
signal to the market, although five consecutive closes above that level
did not do much for the bulls. It's all about the virus at the moment,
and Apple's announcement yesterday of it adversely affecting its
quarterly earnings, confirmed the fears of the bears. We also wonder if
the news out of Tesla yesterday (see below) also sent a shiver down the
backs of nickel traders. It's hump day so we are half way to the weekend. Have a great day!
Average price of LME traded cash nickel
so far this month
- $5.87/lb
Tuesday's market review - Copper dips as inventory build
raises fears of excess supply - Copper prices fell on Tuesday as
deliveries into exchange warehouses raised fears that demand curbed by
the coronavirus outbreak in China could cause a supply glut. - more
Some of China’s Top Suppliers Are Readying for a Virus Rebound - Raw
materials producers who rely on China for the bulk of their sales are
showing confidence the risks posed by the coronavirus outbreak may soon
ease -- and are poised to benefit from a forecast demand rebound. - more
COVID-19: Standoffs emerge in dry bulk freight fixture talks over
infectious disease clause - The global dry bulk freight market, already
paralyzed by the coronavirus or COVID-19, is now finding the conclusion
of fixtures being hampered by the inclusion of a controversial
infectious disease clause in charter party agreements, industry sources
said Tuesday. - more
Steel Shipments Increase in January - Steel shipments increased in the
United States in January, reversing the mostly downward trend that
characterized 2019, the Metals Service Center Institute reported. - more
Cliffs, AK Expect March 13 Close - Cleveland Cliffs Inc. and AK Steel
Holding Corp. have extended the expiration date in connection with the
previously announced exchange offers by Cliffs and consent
solicitations by AK Steel to March 13. - more
Tesla in Talks to Switch to Different Battery for China Model 3 Sedans
- China’s desire to have more electric vehicles roaming its streets is
getting automakers to examine how to meet those demands while cutting
costs, and two of the biggest – Tesla and Volkswagen – may switch to a
different battery to make that happen. - more
Nickel closed Monday's trading
session at $5.95/lb ($13,110/tonne). Indicators at 6:15 am CST today show
nickel trading around $.05/lb
lower. Stockpiles of nickel stored in LME licensed warehouses rose by
multiple thousand tonnes for a 6th time this month and third
consecutive day, and started today's session just over the 218,200
tonne level. Apple's statement that the virus wold effect its quarterly
earnings has sent a reminder across world markets that there will be a
financial price to pay for this outbreak. It is safe to say, if you
have yet to feel the direct effect of this outbreak in your business,
there is a very good chance you will eventually. There is a domino
effect going on, probably most obviously found in shipping. Thus if
your overseas factory has not seen production adversely affected, they
may have a problem getting you your shipment. Base metals are all
trading in the red this morning, while safe haven precious metals are
all trading higher. Nickel is still a few dollars north of the
$13,000/tonne level as we publish this morning, but the level has
shifted from being a psychological line of resistance, to a line of
support over the past few weeks. Nickel continues to trade in a
narrowing band, with the coronavirus raining on its parade.
Average price of LME traded cash nickel
so far this month
- $5.88/lb
Virus News
Here's how long coronaviruses may linger on contaminated surfaces, according to science - more
Coronavirus: 99 more cases confirmed on cruise ship - as it happened - more
A Chinese Director And 3 Of His Family Members Passed Away After Getting Infected With COVID-19 - more
National Health Commission of the People's Republic of China - more
Monday's market review - China stimulus helps copper to three-week high - Copper prices climbed to
three-week peaks on Monday after top consumer China cut interest
rates to offset the economic damage from the coronavirus, though
worries over demand for industrial metals capped gains. - more
Chinese steel mills mull output cuts due to coronavirus: Platts survey
- More than a third of Chinese steel mills are considering cutting
steel production due to rising inventories, a shortage of raw materials
and weak downstream demand caused by the coronavirus, according to a
recent S&P Global Platts outlook survey. - more
Market turns stainless steel orders from China to Taiwan - According to
the Wuhan pneumonia in China, most of the Chinese stainless steel mills
were still not resume operations, and the production still remained
very low. - more
China's metal exporters face order cancellations, damage claims amid
virus - trade group - Some overseas buyers of Chinese metal products
have stopped accepting shipments amid the coronavirus outbreak, while
other clients - including from India - are seeking damages due to a
failure to deliver on time, a China trade body said on Tuesday. - more
BHP CEO says company needs more copper, nickel - BHP Group will be
looking to expand in copper and nickel to position itself well in a
world that is decarbonising, new chief executive Mike Henry said on
Tuesday. - more
Canada finally taking a stand on Ring of Fire deposits - The struggle
over the mineral deposits in Ontario's Ring of Fire has taken a
surprising turn. - more
Merafe warns of lower share earnings as ferrochrome, chrome ore prices
decline - Merafe Resources will report a headline loss per share for
its 2019 annual results for the year ended December 31 owing to an
impairment brought about by its share price weakness. - more
Courtesy AISI - In the week ending on February 15, 2020, domestic raw
steel production was 1,907,000 net tons while the capability
utilization rate was 81.8 percent. Production was 1,917,000 net tons in
the week ending February 15, 2019 while the capability utilization then
was 82.4 percent. The current week production represents a 0.5 percent
decrease from the same period in the previous year. Production for the
week ending February 15, 2020 is up 0.4 percent from the previous week
ending February 8, 2020 when production was 1,899,000 net tons and the
rate of capability utilization was 81.4 percent. - more
Nickel closed yesterday's trading
session at $5.90/lb ($13,015/tonne). Indicators at 6:15 am CST today show
nickel trading around $.05/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose on
Friday and started this week just over the 215,800 tonne level. The
last time LME had this much nickel inventory was back in November
2018. China reportedly pumped in more stimulus money last night to
counterbalance the negative effect the coronavirus outbreak is causing
and Chinese and world markets are responding positively. US markets are
closed for President's Day. Coronavirus continues to be the headline of
concern, with the Westerdam situation becoming of special concern. It's
a new week and the start of the second half of February. We hope you
have a great week.
Average price of LME traded cash nickel
so far this month
- $5.87/lb
Virus News
CDC director: Novel coronavirus 'is probably with us beyond this season, beyond this year' - more
Take Five: In sickness and in health - more
Coronavirus spreads in 3 main ways: This one worries the CDC most - more
Seatrade Maritime News Coronavirus Coverage - more
Ship Owners Burned By The China Slowdown - more
Coronavirus Infection Found After Cruise Ship Passengers Disperse - more
Yesterday's market review - Copper up for second week as
virus sell-off wanes - Copper edged lower on Friday but remained on
track for a second week of gains as investors decided a plunge in
prices triggered by the coronavirus outbreak in China may have been
overdone. - more
Coronavirus outbreak in China: What has been the impact on industrial commodities - For
countries having large trade relations with China, the coronavirus
outbreak could have an adverse impact on their economy. - more
Metalworking World Magazine - Economic and steel market outlook
2019-2020 - Apparent steel consumption fell by 3.1% year-on-year in the
third quarter of 2019, a slight moderation compared to the drop
recorded in the second quarter (-6.7%). - more
Indonesia loosens restrictions in mining law - (excerpt) The largest
Southeast Asian economy initially targeted putting 51 nickel and
bauxite processing plants into operation by 2022, but now decreasing it
to 38. - more
Nickel closed Thursday's trading
session at $6.03/lb ($13,290/tonne). Indicators at 6:35 am CST today show
nickel trading around $.07/lb
lower. Stockpiles of nickel stored in LME licensed warehouses rose on
Thursday and started today just shy of the 212,100 tonne levels.
Shanghai Futures Exchange reported nickel warehouse inventory fell 411
tons to 36,645 tonnes this past week. Another Friday with too much
going on to be an abridged version. Today's initial fatality numbers
for the corona virus outbreak rose, but then fell back as Chinese
officials announced they had double counted at least 108 names. Lot of
news to end your week, so we leave you with it. We hope you have a safe
and safe
weekend. On Tuesday we shared a 10 minute sales motivational video, and
for the weekend, we leave you with a 3-1/2 minute music video that you
have likely never seen(unless your under 30), but the music might ring
a bell. Instead of
trying to sell you a Ford or a cruise however, we share with you the message of "Live
your best life."
Average price of LME traded cash nickel
so far this month
- $5.87/lb
December 2019 Freight Transportation Services Index - more
Total
Deaths as of Today
Total
Deaths as of Yesterday
Total
Infections as of Today
Total
Infections as of Yesterday
1,383+
1,369
64,435
46,997*
Virus News
*On Feb 13, China started reporting clinically diagnosed cases, as well
as the lab confirmed cases. W.H.O. is sticking with lab confirmed only
- which should spike in the coming days. The media is reporting what
China gives them so our 'today' numbers will be much higher than
W.H.O.'s 'yesterday' numbers.
+121 added but 108 removed as duplicate entries from past
For those with a need to get into the nut and bolts of a problem, here
is the WHO database of publications on novel coronavirus - list here
Coronavirus can be spread by people who don’t show symptoms, CDC warns - more
Thursday's market review - Copper rises as traders look
past rising coronavirus deaths - Copper and other industrial metals
prices rose on Thursday as traders shrugged off figures showing
thousands more coronovirus cases and attention moved to the potential
for China’s efforts to stop the spread of the virus to disrupt supply.
- more
Consensus Price Forecasts — Positive Prices In 2020 For Most Metals -
(excerpt) Contributors are also bullish on nickel this year, with
London Metal Exchange cash prices expected to rise 11.2% to average
US$7.18/lb or US$15,835/t. - more
Bids in for Vale nickel company in New Caledonia - The Vale nickel
company in New Caledonia says three bids are in to buy the 95 percent
stake put up for sale by Vale of Brazil. - more
Coronavirus cancels London Metal Exchange's Asian event - The London
Metal Exchange has cancelled its annual LME Asia Week dinner in Hong
Kong, a major event for the metal industry, and postponed the seminar
that would have taken place on the same day, the exchange said in a
notice on Friday. - more
The Minnesota DNR Court of Appeals ruled against the PolyMet
copper-nickel mine – The Minnesota Department of Natural Resources on
Wednesday asked the state Supreme Court to overturn a decision of a
lower court that rejected some of the most important permits for the
proposed PolyMet copper and nickel mine. - more
In northern Minnesota, neighbors navigate the bitter fight over copper-nickel mining - more
Indonesia’s
government wants to get on with China in private - When China's
president, Xi Jinping, launched the Belt and Road Initiative (BRI) in
2013, Indonesia was seen as essential to its success. - more
State firms burdening Greece with three billion euros - The government
is seeking to dig Greece out of a debt hole to the tune of three
billion euros created by five of Greece’s state-run corporations
(DEKO). - more
Nickel closed Wednesday's trading
session at $5.95/lb ($13,100/tonne). Indicators at 6:10 am CST today show
nickel trading around $.005/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose on
Wednesday and started today just under the 210,100 tonne level. For a
second day, nickel is trading nearly unchanged from last evening.
Yesterday it remained skeptical, while equity markets jumped on news
the virus' end was in sight. Today, nickel remains undisturbed as the
infection and death rate spike, and equity markets shudder in renewed
fear. For a second time this month, the market has closed above
$13,000/tonne for two consecutive sessions, and what would typically be
a positive technical signal, appears to be more of a 'line in the sand'
the bulls and bears are fighting to hold. We are watching Chinese media
closely for signals on what might be happening in the nickel/stainless
steel industry. This isn't easy for three reasons. #1 we don't speak
Chinese and have to depend on a very cantankerous computer translator.
And #2 China isn't exactly the most forthcoming country when it comes
to industry statistics. And finally, like much of the world, this type
of information seems to come with a price tag attached. We don't charge
for industry news and refuse to pay for it. That said, we did find some
rather troublesome industry numbers that we posted below. Tomorrow is
Valentine's Day (final warning gents) and we hope you have a great day.
Average price of LME traded cash nickel
so far this month
- $5.86/lb
Minerals & Energy Outlook: February 2020 - pdf here
U.S. Imports of Stainless Steel Mill Products - more
Total
Deaths as of Today
Total
Deaths as of Yesterday
Total
Infections as of Today
Total
Infections as of Yesterday
1,367
1,115
60,200
45,171
Virus News
Guardian graphic - more
Coronavirus Time line - more
New study an eye-opener on how coronavirus is spreading and how little we know - more
China Cases Jump by 15,000; Top Officials Ousted: Virus Update - more
Wednesday's market review - Copper makes modest gains as
coronavirus infections drop - Copper climbed on Wednesday as China
recorded its lowest number of new coronavirus cases in two weeks but
concerns remained over the outbreak’s impact on the world’s second-
largest economy and biggest metals consumer. - more
China media reporting the following - January production statistics -
300 series stainless - near 60% of total production, 200 series
stainless - over 21%, 400 series stainless - near 19%. Top three
producing regions in January were Jiangsu, Fujian, and Guangdong
provinces. Cold rolled stainless steel at the largest producers
decreased by just over 13-1/2% m-o-m, and are forecast to fall another
16% in February due to unplanned closures because of the coronavirus.
Greek lawmakers clear rescue plan for nickel producer Larco - Greek
lawmakers approved a restructuring plan for Larco late on Wednesday
which Greece called a last attempt to save Europe’s biggest nickel
producer. - more
Vale's 2019 Iron Output Drops 22% Due to Brumadinho Disaster -
(excerpt) Finished nickel production totaled 208 kt in 2019, down 15%
from 2018 mainly due to reduced feed from third parties, lower source
ore from Thompson and VNC. - more
New $1 billion mine looks to solar, wind, batteries for 80% of power
needs - Australian mining company Oz Minerals plans to power its
proposed $1 billion West Musgrave copper nickel mine in central
Australia with up to 80 per cent renewables. - more
Nickel closed Tuesday's trading
session at $5.95/lb ($13,110/tonne). Indicators at 6:10 am CST today show
nickel trading around
unchanged. Stockpiles of nickel stored in LME licensed warehouses rose
on Tuesday and started today just over the 209,700 tonne level. Nickel
closed over the $13,000 tonne level yesterday, and is making an effort
today to hold on to this technically important level. Slow news day.
Equity markets are pleased the spread of the coronavirus appeared to
slow yesterday, and the death rate slowed a tad. Base metals are yet to
be convinced.
Average price of LME traded cash nickel
so far this month
- $5.85/lb
Virus News
How can the coronavirus spread through bathroom pipes? Experts are investigating in Hong Kong - more
Coronavirus death toll surpasses 1,100 - more
Tuesday's market review - Base metal prices bounce, but
China demand doubts dominate - Prices of industrial metals bounced on
Tuesday as funds cut bets on lower prices, though the mood was
dominated by worries over demand in top consumer China, where the
coronavirus outbreak is expected to sap demand. - more
Virus another wild card in nickel's year of uncertainty: Andy Home -
Nickel is the weakest performer in the London Metal Exchange (LME) base
metals pack so far this year. It’s a dramatic change of fortune after
last year’s bull rally. - more
Chinese stainless steelmakers decide to further postpone working day -
Due to the Wuhan pneumonia situation, most of the steel mills decided
to delay their working day, especially in Wuxi city and Foshan city. - more
Chinese fastener factories begin returning to work - more
Editorial: Uncertainty lingers as Vale switches Thompson bosses again -
The removal of Gary Eyres as head of Vale’s Manitoba Operations and his
replacement with Franco Cazzola, who formerly worked in Thompson for a
few years from 2005 to 2008, indicates that things are still in flux at
the Thompson mining and milling operation. - more
PolyMet petitions state Supreme Court on blocked permits; groups on
both sides rally at Capitol - The deep divisions over PolyMet Mining
Corp.’s proposed $1 billion copper-nickel mine project were on full
display at the State Capitol on Tuesday, as both supporters and
opponents rallied there following the company’s petition to the
Minnesota Supreme Court. - more
Purdue’s biggest donation ever? Grad's nickel mine gift has that
potential - Purdue President Mitch Daniels said he’ll be watching
nickel prices on the commodities market after 1954 grad gives a mining
share that could produce for decades - more
Nickel closed Monday's trading
session at $5.84/lb ($12,885/tonne). Indicators at 6:15 am CST today show
nickel trading around $.12/lb
higher. Stockpiles of nickel stored in LME licensed warehouses jumped
on Monday and started today just over the 208,700 tonne level. Nickel
jumped early today and met resistance around the $6.00/lb level twice,
and is now fighting to hold onto some of the early morning gains. These
early morning pushes by the bulls have so far accomplished pushing the
closing price a little higher each day, but its a hard way to drive the
price higher and runs a real risk of turning bearish again in a moment
of weakness. All eyes remain on China. The government is encouraging
its citizens to go back to work, but God help them if they walk outside
with a fever. In fact, based on videos being snuck out of the country,
one is not required to leave ones home to be hauled away. It's rather
frightening to watch, but the alternative is even more worrying. The
virus will have an economic impact on China, that part is clear. How
much the impact in China, will trickle down to the other countries,
remains to be seen. And before we let you go, we posted to an interview
with the GM director of battery cell engineering where he states "And
people are talking about the great nickel [price] spike of 2024. That’s
predicted.". Would any of our readers have any clue what he might be
referring too? We have also added what we are calling a Tuesday tune-up
- a 10 minute sales motivational clip. Like, dislike? Have a wonderful
day!
Average price of LME traded cash nickel
so far this month
- $5.84/lb
Tuesday Tune up - Shark Mindset - 10 Minutes with Walter Bond - video here
Monday's market review - Zinc sinks to multi-year low on
inventory jump and China fears - Zinc prices lurched on Monday to their
lowest since July 2016 after a surge in inventories and worries over
demand in China as cases of the coronavirus grow in number. - more
Strong demand for base metals in 2020, copper market to remain tight -
Copper fundamentals continue to look supportive, while the nickel
market remains tight, said Ian Roper, general manager of SMM Singapore
on the outlook of base metals in 2020. - more
Base metals inventories rise as Chinese demand sinks, depressing
prices: analysts - Inventories of base metals have increased
substantially in China in recent weeks amid falling demand from Chinese
industry, leading to depressed prices, with little sign of any rapid
change in the scenario, analysts reported Monday. - more
Toomey presses Trump administration to roll back tariffs for Beaver
County mill - The battle over a Beaver County mill beleaguered by steel
import tariffs escalated on Monday, with Sen. Pat Toomey, R-Pa.,
demanding the Trump administration grant an exclusion for the plant’s
operator. - more
Government presents plan for restructuring, selling LARCO - The Greek
government on Monday presented a plan for the restructuring of LARCO,
one of Europe’s biggest nickel producers, by placing the mineral and
metallurgical industry into a clearance management status which
envisages cost and wage reductions, and an immediate launch of a tender
for the selling of the factory and mines within 12 months. - more
Courtesy AISI - In the week ending on February 8, 2020, domestic raw
steel production was 1,899,000 net tons while the capability
utilization rate was 81.4 percent. Production was 1,917,000 net tons in
the week ending February 8, 2019 while the capability utilization then
was 82.4 percent. The current week production represents a 0.9 percent
decrease from the same period in the previous year. Production for the
week ending February 8, 2020 is down 0.8 percent from the previous week
ending February 1, 2020 when production was 1,914,000 net tons and the
rate of capability utilization was 82.1 percent. - more
GM’s director of battery cell engineering: We’re nowhere near the
bottom of the price curves - (excerpt) There’s talk of getting rid of
cobalt. How do you get the same energy density with no cobalt? And
people are talking about the great nickel spike of 2024. That’s
predicted. - more (??)
Nickel closed Friday's trading
session at $5.79/lb ($12,775/tonne). Indicators at 6:10 am CST today show
nickel trading around $.09/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose
slightly on Friday and started this weeks trading just under the
204,100 tonne level. Nickel fell under the $13,000/tonne level late on
Friday, but climbed back over that level in after hours trading. It
just recently surrendered that level again, but it is obvious the bulls
and bears are using this level to fight for control over. We imagine
you are tiring of us constantly covering the coronavirus crisis, so we
have added some numbers after the reports section, which we hope to
update daily, and leave the comments to others. We will try to leave
the topic alone, but it is having a huge effect on the nickel market,
and therefore, we can't entirely. China is the single biggest consumer
of just about everything, so when they catch the flu ... Another day
with lots of reports. Beside the monthly reports, the USGS has issued
their annual report on the metals that make up the most popular
'grades' of stainless steel. It's the second week of the second month
of 2020. May it bring you the success you are chasing. Have a good
week!
Average price of LME traded cash nickel
so far this month
- $5.84/lb
Friday's market review - Copper falls as spread of
coronavirus stokes demand worries - Copper prices fell on Friday on
concerns that a rising death toll from the coronavirus in China could
lead to a bigger hit to economic activity and metals' demand. - more
Deafening silence at London Metal Exchange over nickel market
manipulation allegations - Chinese steel powerhouse Tsingshan bought up
huge volumes of nickel before the Indonesian government announced a ban
which saw prices surge - more
London Metal Exchange under pressure to investigate nickel market - more
China metals output seen falling over 10% in Feb, rebound from virus
impact after Q2 - China’s nonferrous metal output will fall at least
10% year-on-year in February as the world’s top metals consumer battles
a coronavirus but operations are expected to normalise after the second
quarter, the country’s metal association said. - more
Steel Demand Plunges Amid Coronavirus Epidemic, Depressing Prices - more
Eyres out, Cazzola in as head of Vale Manitoba Operations -
Vale’s Manitoba Operations have undergone a change at the top. Gary
Eyres, who took over leadership of mining and milling operations in
Thompson in March 2019, is no longer with the company after less than
year on the job. - more
Conic Discloses Litigation in Relation to Ramu Project - Conic Metals
Corp.confirms that the Company has become aware of a writ of summons
and statement of claim commenced in Papua New Guinea on February 5,
2020 against Ramu Nico Management (MCC) Limited. - more
Inside Palmer’s campaign to thwart Labor - Clive Palmer spent almost
$84 million on his party’s failed tilt at the 2019 election, but former
UAP candidates now say the real goal was to prevent an ALP victory. - more
Nickel closed Thursday's trading
session at $5.92/lb ($13,060/tonne). Indicators at 6:50 am CST today show
nickel trading around $.06/lb
lower. Stockpiles of nickel stored in LME licensed warehouses rose
substantially on Thursday and started today's session just over the
203,900 tonne level. Nickel closed above $13,000 for a second
consecutive day yesterday, but appears to be in trouble holding onto it
again today. Base metals trading board is solid red today as virus
concerns creep back. The cruise ship in Japan announcing another 41
cases last night could have a serious effect on those planning to take
vacations in the next few months, and cruises specifically. Another
busy day with news to end the week. May your weekend be safe and
restful and illness free.
Average price of LME traded cash nickel
so far this month
- $5.85/lb
Thursday's market review - Rebound in copper fizzles out
as virus cases climb - Copper prices retreated from highs on
Thursday as cases of the coronavirus in top metals consumer China
continued to climb and health officials dashed hopes of a breakthrough
treatment. - more
Base metals: Buying copper is worth it – TDS - The discount in some
base metals is encouraging strategists at TD Securities to recommend
buying copper, among other metals, at these prices. - more
Factbox: Commodity traders weigh impact of coronavirus as force majeure
placed on LNG - Commodity traders on Thursday continued to weigh the
impact of the coronavirus on demand growth and prices. - more
Indonesia's 1st HPAL nickel plant could start commissioning in H2 2020
- CRU - The first battery-grade nickel and cobalt project in
Indonesia using high-pressure acid leaching (HPAL) technology could
start commissioning in the second half of 2020, consultancy firm CRU
Group said on Thursday. - more
The Surprising Versatility of Stainless Steel - You’ll be inspired by
all the ways the material is transforming architectural design. - more
AISI Releases January SIMA Imports Data - Based on the Commerce
Department’s most recent Steel Import Monitoring and Analysis (SIMA)
data, the American Iron and Steel Institute (AISI) reported today that
steel import permit applications for the month of January totaled
3,352,000 net tons (NT)*. - more
NIMS releases findings based on 50 years of measuring metal wear and
tear - For the past 50 years researchers at the National Institute for
Materials Science (NIMS) have been conducting detailed short- and
long-term testing of a variety of structural materials manufactured in
Japan to ensure they can withstand long-term stresses. - more
Nickel closed Wednesday's trading
session at $5.97/lb ($13,160/tonne). Indicators at 6:15 am CST today show
nickel trading around $.02/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell
slightly yesterday, and now total just over the 200,400 tonne level.
Nickel closed above the $13.000/tonne level for the first time since
the 23rd of January. This rally appears to be being led by Chinese
traders. While we have watched the shanghai Metals Market usually play
follow the leader tot he London Metal Exchange, there are times when
the opposite is true. And with the Chinese market not reacting as
negatively to the coronavirus outbreak as the rest of the world feared
they would, nickel and other base metals are reaping the benefits.
Short term we believe, as the virus has not gone away and is steadily
getting worse. Over 70 more people died just yesterday. To put that in
perspective, last Thursday there had only been 170 deaths. Today, we
started with a total of 563 deaths. Over 28,000 are infected and more
people have died from this virus than were killed in the SARS outbreak.
This virus is far from being done killing people and those who fell the
economic effects will be minimal are kidding themselves. Supply chains
are already looking for new sources with Chinese manufacturers shut
down, and Lord help us, if some cargo ship brings the virus into a port
somewhere and infects a foreign worker. The reaction could be even more
detrimental to the supply chain. If your source is mainland China, and
you have yet to feel the effect, you might want to pro actively
consider other sources as a backup. Lots of market news today, so we
leave you with it.
Average price of LME traded cash nickel
so far this month
- $5.83/lb
Wednesday's market review - Copper jumps to one-week high
after China stimulus - Copper prices rebounded to their highest level
in more than a week on Wednesday as investors unwound bearish positions
after the central bank in China, the world’s biggest metals consumer,
pumped stimulus into its economy. - more
China's metals import hunger shifts towards raw materials: Andy Home -
China last year imported less refined copper, nickel, zinc and lead
than in 2018. It was a net exporter of refined tin and primary
aluminium. - more
China Jan nickel output falls by third from previous month - research
house Antaike - China’s refined nickel production in January fell by
33.4% from the previous month to 10,650 tonnes as the coronavirus
outbreak hits consumption of the metal, research house Antaike said on
Thursday - more
Philippines keeps ports open to all ships despite virus fears - The
Philippines said on Wednesday its ports remain open to all ships, even
those from China, in order not to disrupt the cargo supply chain - more
The State of the Stainless Nation #2020 Vision - Predicting anything
positive for the stainless steel industry in terms of market growth in
2020 would be risky and remains in the ‘Daily Lotto’ realm when looking
at current economic forecasts. - more
Outokumpu launches review of stainless steel long products business -
Outokumpu has initiated a strategic review of its long products
business area "as part of its process to determine optimal long-term
business mix for the company," the Finnish stainless steel producer
said Wednesday. - more
Historic Clydach social club The Mond is closing after more than 100
years - The historic Mond Social Club in the Swansea Valley is to close
after more than 100 years. - more
ZRA seizes base metals from Chinese man at Ndola airport - The Zambia
Revenue Authority has seized suspected base metals with traces of Gold,
palladium, nickel, manganese and precious stones weighing about 1.5
kilograms in Ndola. - more
LME to keep open-outcry closing prices after electronic trial - The
London Metal Exchange (LME) will retain traditional open-outcry trading
for closing prices after largely negative feedback from members about a
trial that used electronic final prices, the exchange said on
Wednesday. - more
Nickel closed Tuesday's trading
session at $5.82/lb ($12,830/tonne). Indicators at 6:45 am CST today show
nickel trading around $.14/lb
higher. Stockpiles of nickel stored in LME licensed warehouses
retreated on Tuesday and started today's session just under the 200,500
tonne level. Our apologies for the late update - internet or computer
issues - not exactly sure which one was the problem for the connection
problem. Nickel is on the climb - and while it was unable to hold onto
the $13,000/tonne level yesterday, it's trading above it again today.
Not a lot of industry related news today. Death toll for the
coronavirus is close to 500 now, with the number of infected nearing
25,000. 60 million Chinese remain under lockdown in China. The rest of
the world, it appears, is in denial.
Average price of LME traded cash nickel
so far this month
- $5.79/lb
Tuesday's market review - Copper rises after China moves
to protect economy - Copper bounced on Tuesday as traders and funds
reversed bets on lower prices after China’s central bank moved to
offset the damage to economic growth and demand from the coronavirus in
the top consumer. - more
Strong demand for base metals in 2020, copper market to remain tight -
(excerpt) On the outlook of nickel, Roper sees a tighter nickel market
in 2020, as nickel prices have surged as Indonesia has bought forward
the ban on nickel ore exports from 2022 to 2020. - more
Zimplats minerals output declines - Resources group, Zimplats Holdings
Limited’s six elements (6E) production for the quarter to December 31,
2019 totalled 115 908 ounces, which was 18 percent below same period in
the prior year. - more
Glencore's 2019 cobalt up, copper down; share price rises - Glencore
said its 2019 copper output fell 6% and battery mineral cobalt rose 10%
as it boosted production at its Katanga mine in the Democratic Republic
of Congo, offsetting the impact of the early closure of another
operation. - more
Respite for the Glencore 'billionaire boys' club' as miner's share price jumps 5.2% - more
Can we protect nature by giving it legal rights? - Around the world,
communities are using “Rights of Nature” laws to defend waterways,
species and more from human threats - more
Thought for the day - when you
tweet your analysis as an 'expert' in your field - it may come back to
haunt you. And for those who pay them for their analysis - even a
clock is right twice a day. (and Mr Smith was not alone in his analysis.)
Nickel closed Monday's trading
session at $5.77/lb ($12,725/tonne). Indicators at 6:20 am CST today show
nickel trading around $.15/lb
higher. Stockpiles of nickel stored in LME licensed warehouses answered
our question of yesterday, and climbed over the 200,000 tonne level
after a large shipment. Totals now read just over the 200,900 tonne
level. While stockpile numbers broke thru a psychological level, nickel
is trading back over the $13,000/tonne level for the first time January
24th. Traders have been watching returning China traders to gauge the
reaction of those in the epicenter of the coronavirus outbreak, and
after a large drop yesterday, Chinese markets rebounded today. The rest
of the world, including commodities, are following. The trading price
is already off by about $250/tonne an earlier high, so the buzz may be
wearing off. PMI numbers for the US came out above 50 yesterday, giving
a signal that the US economy still has life to it (here).
Vale announced it may have a buyer for its mothballed Goro operation in
New Caledonia. We should know something by the end of March.
Average price of LME traded cash nickel
so far this month
- $5.78/lb
Monday's market review - Shanghai copper plunges to 3-year
low as Chinese markets reopen - Shanghai copper prices dived to a
three-year low on Monday as Chinese markets reopened, giving investors
the first opportunity since Jan. 23 to react to a coronavirus outbreak
that threatens to damage the economy of the world’s biggest metals
consumer. - more
SMM Hot News: Impact of the coronavirus outbreak on China metals market
- SMM has undertaken further surveys covering the impact of the current
issues in China on physical metals markets. - more
Nickel price under pressure in 2020 – report - A report by Wood
Mackenzie argues that despite the global continued investment in new
battery plants, weaker demand for nickel sulphate or NiSO4 tied to last
year’s cut in Chinese electric vehicle subsidies will translate to more
discounts in the metal’s price in 2020. - more
Nickel plant in New Caledonia nears sale - report - The head of the
Vale nickel plant in New Caledonia says the board of directors has
approved $US120 million for restructuring the business, which is for
sale. - more
Indonesia slams the door on all things China - The focal point of a
tense maritime stand-off with China only weeks ago, the largest island
in Indonesia’s northernmost Natuna archipelago is now a temporary home
for 242 quarantined citizens evacuated from Wuhan, the epicenter of the
coronavirus crisis. - more
Factbox: Commodities weaken as coronavirus spreads, dampening demand
expectations - Commodity markets continued to slide Monday as the
spread of a coronavirus outbreak caused lingering concerns about the
disease's erosion of demand growth. - more
Welcome to the worldsteel image and video library - Select images and
videos from the safe, clean and high-tech steel production facilities
of worldsteel member companies, all free to use for editorial purposes.
- more
The DFL Party's slide on the Iron Range - Mining is a proximate cause
and a state Senate power shuffle is an effect, but the shift has long
been coming. - more
Courtesy AISI - In the week ending on February 1, 2020, domestic raw
steel production was 1,914,000 net tons while the capability
utilization rate was 82.1 percent. Production was 1,878,000 net tons in
the week ending February 1, 2019 while the capability utilization then
was 80.7 percent. The current week production represents a 1.9 percent
increase from the same period in the previous year. Production for the
week ending February 1, 2020 is down 0.3 percent from the previous week
ending January 25, 2020 when production was 1,919,000 net tons and the
rate of capability utilization was 82.3 percent. - more
Nickel closed Friday's trading
session at $5.83/lb
($12,850/tonne). Indicators at 6:10 am CST today show
nickel trading around $.01/lb higher. Stockpiles of nickel stored in LME licensed warehouses
rose again on Friday and started this week and month just under the
196,900 tonne level. So, will or when will stockpiles climb back over
the 200,000 tonne level and if so, will they surrender that level again
this year? With China now back in business, or at least parts of it,
many were expecting things to start turning around. Now with
coronavirus throwing a huge monkey wrench into the works, even the most
optimistic analysts are doing some tie pulling and throat clearing.
This new virus has now killed more people than SARS in mainland China,
and continues to spread at a much faster rate. Confirmed deaths now
total 362, with confirmed infections over 17,300. Last Monday we
reported 80 deaths and 2700 confirmed cases. One can understand why
governments around the world are very concerned, some putting
globalization efforts on temporary hold, while closing borders in an
effort to protect their population. If you are going to any trade shows
in the near future, you will notice the lack of Chinese participation
as the U.S. has imposed travel restrictions on those from that
country. U.S. manufacturers are in the position where shipping
restraints from China could potentially open up new markets, while at
the same time, a potential slowdown in economic activity could hurt the
markets they have. It's a Catch-22 and while everyone is looking back
to the SARS outbreak for guidance, this virus is much different. On a
brighter side, it's a new month and it's a Leap
February. The shortest month of the year comes with an extra day this
year, and yet it remains the shortest month of 2020. It also means
you only have 11 days until Valentine's Day. Ok men, you've been
warned. We want to thank our February sponsor, Taunton Metals, a U.S.
distributor of flat rolled stainless steel products, for helping keep
this site free for visitors. We hope January was a good one for you,
and if not, you get another opportunity with a new month today. Have a
great week and one more thing..... "how 'bout those Chiefs"!!
Average price of LME traded cash nickel
so far this month
- $6.15/lb (January average)
Friday's market review - Copper slides to 5-month
low on China demand worry amid coronavirus - Copper hit a five-month
low on Friday as funds and traders sold on the expectation of slowing
demand in top consumer China, where the coronavirus outbreak threatens
to hit economic activity. - more
How the coronavirus affects global commodity markets - The novel
coronavirus (2019-nCoV) is spreading quickly. There are now over 10,000
confirmed infections and the death toll exceeded 200 people on Friday
31 January. - more
Column: China's commodities got smashed as expected. Now what? - It’s
no surprise that commodity prices in China were hammered on Monday when
the virus-hit country reopened its exchanges after a week-long Lunar
New Year holiday. - more
Nickel production at Indonesia's Morowali park unaffected by virus
- Indonesia’s largest nickel industrial park said on Monday that
its Chinese workers are clear of the coronavirus epidemic and that
production is as “per normal”. - more
Iron ore hit by coronavirus fears, demand impact 'muted': Wood Mac -
Iron ore prices have taken a hit from coronavirus, with Singapore
Exchange prices dropping sharply over the week, but they could still be
bolstered by any supply side disruptions, analysts from Wood Mackenzie
said Friday. - more
Miners Head For Cape Town, Perhaps Followed By The New Coronavirus -
One of the mining world’s biggest events, Mining Indaba, kicks off in
South Africa’s holiday city, Cape Town, tomorrow but how many delegates
from China are able (or allowed) to attend is a tricky question. - more
Thyssenkrupp has not given up on a possible steel merger: CEO -
Thyssenkrupp is still seeking partners for steel consolidation, the
German company's CEO Martina Merz said at the annual general meeting
Friday, while facing criticism from shareholders on restructuring and
strategy. - more
Dirty Politics: Palmer spent $89m on election, fossil fuel lobbies back
LNP and Labor - Australia’s major political parties pocketed millions
in donations from the oil, gas and coal industry in the lead up to the
2019 federal election, in public disclosures released publicly today by
the Australian Electoral Commission show. - more
(all
ton listings are metric tons = 2204.622 pounds ) Updated Monday thru
Thursday before 7 am CST, Friday version before 8 am CST - DisclaimerOriginal content and opinions copyright
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Daily Nickel/Stainless Steel Briefing 
($12,375/tonne). Indicators at 6:40 am CST today show
nickel trading around $.07/lb 
Reports
Why Stainless Steel 
Thursday's market review - Spread of coronavirus pushes
copper to three-week low - Copper prices hit three-week lows on
Thursday as the market worried about the spread of the coronavirus from
China to other countries and the threat it poses to global economic
growth and demand for industrial metals. - 
Chinese metals association suggests stockpiling as virus hits demand -
China should stockpile some non-ferrous metals to take the pressure off
producers whose sales have been drying up because of the country’s
coronavirus outbreak, the China Nonferrous Metals Industry Association
(CNIA) said on Thursday. - 
Steel Supply Chain Disrupted by Chinese COVID-19 Outbreak - Market
participants, worldwide, are growing increasingly concerned about the
coronavirus and the impact it will have on the global steel market. - 
Coronavirus to hit Nornickel’s nickel and copper markets - Russian
mining company Norilsk Nickel (Nornickel) has announced that the recent
outbreak of coronavirus in China is expected to hit two of its key
markets, nickel and copper. - 
Fjordland, CanAlaska team up on Manitoba nickel project - Fjordland
Exploration has executed a non-binding letter of intent with CanAlaska
Uranium to be granted the option to acquire up to an 80% interest in
CanAlaska’s wholly-owned Hunter and Strong properties, part of
CanAlaska’s North Thompson nickel project in Manitoba, Canada. - 
($12,550/tonne). Indicators at 6:15 am CST today show
nickel trading around $.07/lb 
Nornickel neutral on nickel with assumptions clouded by coronavirus -
Russian nickel, copper and PGM producer Nornickel posted Wednesday
neutral outlook for nickel saying it expects overall balanced market
this year although the recent coronavirus outbreak poses a downside
risk to its assumptions. - 
Documentary series digs up mining’s ‘dirty business’ - The documentary
series Green Blood exposes the web of powerful interests in the mining
sector, and the pitfalls facing journalists who try to expose them. - 
New Caledonia rethinks key power project - New Caledonia's government
says the energy company NCE will seek fresh tenders to build a new
power station in Noumea - needed to also supply energy to the SLN
nickel company. - 
January 2020 crude steel production - World crude steel production for
the 64 countries reporting to the World Steel Association (worldsteel)
was 154.4 million tonnes (Mt) in January 2020, a 2.1% increase compared
to January 2019. - 
Gov’t now spending millions to promote responsible mining - Three years
ago, under the leadership of former Environment Secretary Regina Paz
Lopez, Mines and Geosciences Bureau (MGB) was leading the crackdown in
the mining sector. Today, it is spending millions to promote it. - 
Report: Coronavirus outbreak may delay US$11B of nickel projects in
Indonesia - The coronavirus outbreak in China may delay the development
of about US$11 billion worth of nickel projects in Indonesia, Reuters
reported Feb. 25, citing Luhut Pandjaitan, Indonesia's coordinating
minister for maritime affairs and investment. - 
China logistics crunch hits Europe scrap metal exports - Severe
logistical disruption and port congestion in China since the end of
January has slashed the global availability of shipping containers, and
many European exporters of non-ferrous scrap have warned of more
delivery delays and further price increases in Asia-Pacific in the
coming months. - 
Turkey's stainless steel imports fall while exports rise - Turkish
imports of stainless steel coils with widths of 600 mm and above fell
in 2019, amid the slowdown seen in stainless consumption sectors in
Turkey last year. - 
Brazil's Vale reports surprise loss amid base metal issues - Brazilian
iron ore miner Vale SA severely missed quarterly profit and margin
estimates on Thursday, largely due to impairments related to its base
metal and coal operations and the lingering effects of a deadly dam
burst in January 2019. - 
($12,825/tonne). Indicators at 6:20 am CST today show
nickel trading 
Process Against Cerro Matoso for Nickel Royalties Stopped - The
Comptroller opened a process of fiscal responsibility for a detriment
estimated at $ 619,680,857,421 against four former vice presidents of
the National Mining Agency (ANM) and the mining concession company. - 
Alarming Recent Developments Concerning Clive Palmer and Australian
Politics - Something is off in Australian state politics. Over the
course of a week, Clive Palmer-related news hit one after the other,
showing signs that the mining tycoon and billionaire may be looking to
interfere in both state and federal politics, for motives yet
unknown. - 
A special welcome to Taunton customers today. As an advertiser, Taunton
is among those companies who want to stay on top of the market to
better serve you. We thank them for their support. 
Tesla in Talks to Switch to Different Battery for China Model 3 Sedans
- China’s desire to have more electric vehicles roaming its streets is
getting automakers to examine how to meet those demands while cutting
costs, and two of the biggest – Tesla and Volkswagen – may switch to a
different battery to make that happen. - 
Market turns stainless steel orders from China to Taiwan - According to
the Wuhan pneumonia in China, most of the Chinese stainless steel mills
were still not resume operations, and the production still remained
very low. - 
Merafe warns of lower share earnings as ferrochrome, chrome ore prices
decline - Merafe Resources will report a headline loss per share for
its 2019 annual results for the year ended December 31 owing to an
impairment brought about by its share price weakness. - 
State firms burdening Greece with three billion euros - The government
is seeking to dig Greece out of a debt hole to the tune of three
billion euros created by five of Greece’s state-run corporations
(DEKO). - 
Conic Discloses Litigation in Relation to Ramu Project - Conic Metals
Corp.confirms that the Company has become aware of a writ of summons
and statement of claim commenced in Papua New Guinea on February 5,
2020 against Ramu Nico Management (MCC) Limited. - 
Outokumpu launches review of stainless steel long products business -
Outokumpu has initiated a strategic review of its long products
business area "as part of its process to determine optimal long-term
business mix for the company," the Finnish stainless steel producer
said Wednesday. - 
ZRA seizes base metals from Chinese man at Ndola airport - The Zambia
Revenue Authority has seized suspected base metals with traces of Gold,
palladium, nickel, manganese and precious stones weighing about 1.5
kilograms in Ndola. - 
Glencore's 2019 cobalt up, copper down; share price rises - Glencore
said its 2019 copper output fell 6% and battery mineral cobalt rose 10%
as it boosted production at its Katanga mine in the Democratic Republic
of Congo, offsetting the impact of the early closure of another
operation. - 
Thyssenkrupp has not given up on a possible steel merger: CEO -
Thyssenkrupp is still seeking partners for steel consolidation, the
German company's CEO Martina Merz said at the annual general meeting
Friday, while facing criticism from shareholders on restructuring and
strategy. - 
