Headlines & leaders - (Bloomberg) Thailand's Industrial Production Growth
Accelerates Amid Record Shipments // Japanese Stocks Drop on Lower Factory
Output, Deflation; Kobe Steel Falls // China Construction Bank Gets Regulator's
Approval for Planned Rights Offer // China Should Cut Foreign Ore to One-Third
of Needs, Steel Association Says // China Declares Sovereignty in Southern
Sea as U.S. Seeks Role in Disputes // Asian Stocks Decline on Japanese Economic
Data, Macquarie Profit Outlook // Three U.S. Embassy Staff in France Are
Poisoned by Incoming Mail, BBC Says // Iceland Says It's `Far From Defaulting'
as Rating Nears Junk // European Inflation Jumps to 20-Month High, Jobless
Holds at 10% // European Stocks Close Little Changed; Benchmark Stoxx
600 Index Slips 0.1% // Yields Dropping to '04 Levels Spark Busiest July
for Sales: Credit Markets // Moody's Says Spain May Lose Aaa Rating; U.S.
Needs `Clear Plan' // Charles River Scraps Biggest Foreign Takeover of China
Company // Recession in U.S. Was Even Worse Than Estimated, Revisions Show
// U.S. Economy Grew 2.4% in Second Quarter, Below Forecast //
The Euro is trading over 1/4 of 1% lower against the US Dollar. NYMEX crude
oil is down nearly 1/2 of 1% and at $77.98/barrel. Gold is higher by more
than 1.1% while silver is more than 2% higher. Base metals all ended the
session higher. Indicator charts show nickel was struggling early on, but
the afternoon was all bullish. Dow Jones reports three month nickel ended
the day, week and month at $9.57/lb
. This is
its first close above $21,000/tonne since late May. Stockpiles of nickel
held in LME approved warehouses rose for a third straight day, and now show
at a level near 117,500 tonnes. While much of the credit for this gain is
due to the arrival of Norilsk Nickel's new 'mega carrier' into the Rotterdam
port, the last time we recorded three consecutive days of gains was on February
4th, 5th and 8th. The addition of 90 tonnes on the 8th of February helped
that day become the all time record high of 166,476 tonnes. Since then, we
have only recorded 16 days in the last 4-1/2 months, where inbound shipments
exceeded those of outbound shipments. Sucden's day old chart shows nickel's
bull run attempt had stalled
(chart here), until today. We show our unofficial average
cash price for nickel in July was $8.85/lb, up from $8.41/lb in June. Today
was really no surprise. While the fundamentals aren't really changing, although
the European PMI more than offset a negative Japan PMI reading overnight,
the technicals were very bullish and it was only a matter of time before
the bulls made a break-out. On the last day of July last year, the market
rose nearly $800/tonne and pulled a market that had been trading in the $6-$7/lb
range in the $8-$9/lb range for August of 2009. We will have two big market
gauges releasing next week, the Chinese and US PMI. The Chinese will be watched
more closely , we suspect, by nickel traders, but both will give us a strong
signal where the market is heading. Slow news day no the metals front.
Vale reports they will have Sudbury nickel production back to 100% by September
and are already running at 50%. Have a safe and relaxing weekend and
we will see you in August.
(Dow Jones) Natixis projects an average annual price of $20,994/ton for 2010
(nickel) --scaled back from its previous forecast of $24,000/ton--followed
by an average price of $23,000/ton in 2011.
(Canadian Press) The United Steelworkers said Thursday that some 260 workers
at the Endako Mines open pit and milling operations in northern B.C. have
officially joined the union. The mine, which is owned by Thompson Creek Metals
Co. Inc., produces molybdenum, which is used in the manufacture of metal
alloys and stainless steel. The Steelworkers said the workers are now members
of USW Local 1-424, based in Prince George, B.C.
Economists React: GDP Signals Companies More Optimistic Than Consumers
- more
Goldman: Pullback by Government Set to Drag on Growth -
more
Weekly Initial Unemployment Claims: Eight Months of Moving Sideways -
more
A curious unemployment picture gets more curious -
more
China Nickel Industry
Report, 2009-2010 - The report starts from the development of nickel industry
all over the world, and focuses upon analysis of nickel resource reserves,
status quo of supply and demand in the market, import & export, price
trend, substitutive product (ferro-nickel) and key enterprises etc in China.
The nickel industry of China is characterized as follows -
more
A Strategic
Analysis of South Africa's Ferrochrome and Manganese Mining Industry - Research
and Markets has announced the addition of Frost & Sullivan's new report
"A Strategic Analysis of South Africa's Ferrochrome and Manganese Mining
Industry" to their offering. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.03/lb
lower, with other
base metals mixed but most trading slightly higher. The Euro is trading 4/10
of 1% lower against the US Dollar at the moment. NYMEX crude oil is
down over 1/2 of 1% and trading at $77.93/barrel. Gold is trading 1/3 of
1% higher, while silver is off 4/10 of 1%. In overnight trading, Asian markets
ended lower, with China off 1/3 of 1%. European markets are trading lower
this morning, and futures show US markets may open on the bearish side, as
traders await second quarter GDP numbers. The Nomura/JMMA Japan Manufacturing
Purchasing Managers Index fell to a seasonally adjusted 52.8 in July. Nickel
inventories rose for a third straight day.
Edward Meir of MF Global Morning Comments - This writer will be on vacation
next week; our next daily commentary will be out on Monday, August 9th --
Metals continued to push higher on Thursday, as the Euro strengthened to
a 12-week high against the dollar. We also believe that the continuous drip
feed of declining stocks -both on the LME and in Shanghai - is taking a toll
on the bears, particularly in copper, which is leading the way in this regard.
Additionally, metals seem to be decoupling from the weaker-than-expected
US macro numbers, like Wednesday’s poor durable goods reading. Instead,
the complex seems more responsive to developments in China, where there has
been increasing talk lately that the government may ease up on property and
banking restrictions. The rhetoric - still unconfirmed -- has been fueling
a nice bounce in the Chinese equity markets over the last few weeks. Metals
are now basically flat, having erased earlier declines and shrugging off
dual reports out of Japan that industrial production fell 1.5% in June,
substantially more than the .2% increase expected, while unemployment climbed
to a seven-month high. Of course, today's US GDP number may be too hard to
ignore for any market. We noted in yesterday's commentary that MF Global's
chief economist is forecasting a 3.5% number, well ahead of the consensus.
If realized, such a figure should spark a decent rally, and perhaps set the
stage for further gains next week. On the other hand, anything at or below
2.5% will likely set off a round of selling. Whichever way the number falls,
there is no disputing the fact that growth prospects, particularly out of
China, are now front and center in terms of market attention, with other
variables, such as sovereign debt issues out of Europe, getting far less
play. .... We are $20,600 on nickel, down $75, and very quiet.
Our next upside target is now at $21,900. (read Ed Meir's complete
morning base metals report
here)
(DJ) The global supply of nickel is expected to fall 20,000 tons short of
demand in 2010, the chief executive of Anglo American PLC (AA.LN) said Friday.
(MF) Affected by strong rainfall, most molybdenum mills from Henan province
have stopped production. Tight market supply may lead to rising price of
molybdenum.
Seven Faces of .The Peril.- Fed Reserve James Bullard -
pdf here
While Stainless
Production Is Reducing And Nickel Price Is Rallying, Price Of Stainless Scrap
Remains = Reduction Of Stainless Production In Jul.- Aug. Is Putting A
Substantial Impact On Price Of Stainless Steel Scrap - Although LME nickel
price has rallied to a level of US$20,000 per ton, the parties concerned
are still watching carefully about further movements of nickel price and,
accordingly, domestic price of nickel-based stainless steel scrap (new clippings)
in Japan has remained unchanged at present. -
more
Norilsk Nickel’s
vessel transports its first million tons of cargo - The Norilsk Nickel flagship
of Norilsk Nickel JSC called and offloaded today at the Port of Rotterdam
its first million ton the vessel has transported since her launch in April
2006, the company press release said. -
more
China's largest
stainless steel maker invests in Myanmar nickel mine - Taiyuan Iron and Steel
Group (TISCO) signed an agreement with China Nonferrous Metal Mining Group
(CNMC) on July 26 to jointly develop the Tagaung Taung nickel mining project
in Myanmar, according to an announcement on TISCO's Web site on July 29.
-
more
Indonesian nickel
miner Inco's H1 net profit up sixfold - PT International Nickel Indonesia,
Indonesia's biggest nickel producer, reported on Friday first half 2010 net
profit rose sixfold due to higher sales. -
more
Esperance nickel
off to China - The first shipment of nickel concentrate from Western Area’s
Forrestania project to be sold into China left Esperance Port on Tuesday
night. -
more
Steel Prices
Tumble Around The World in July - The MEPS Global Steel Price has fallen
in July for the second consecutive month. Market demand is likely to be flat
in the third quarter.-
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 Investment Has 11.7% Global Return
in 2009 as Commodity Bets Pay Off // China's Stocks Rally Will Wane on Inflation
Outlook, HSBC's Mahendran Says // Chalco Invests $1.35 Billion in Rio's Simandou
Iron Ore Project in Guinea // Indonesian Rupiah Climbs to 3-Year High as
Improving Economy Spurs Inflows // Most Asian Stocks Fall as Fed Comments
Spur Concern; Shipping Shares Gain // Turkey Stocks at Record Prices Lure
Mobius With Market Discount // BAE Systems Targets Brazil, Civil Sales as
U.K. Slashes Defense Spending // Russia Sells Longest Ruble Bonds Since October
as Yields Fall // U.K. Banks May Post $13 Billion Profit on Declining Bad
Debt // Santander Second-Quarter Net Falls 8%, Hurt by Decline in Spain //
European Stocks Decline for Second Day; Stoxx 600 Index Closes 0.3% Lower
// BP Fights U.S. Government, Oil-Spill Victims Over Venue for Gulf Lawsuit
// Beneficiaries Can Bank Proceeds, Bypass Life Insurer Accounts // Jobless
Claims in U.S. Declined by 11,000 to 457,000 // Stocks, Euro, Copper Rally
on Earnings, Economic Optimism
The Euro continues to trade 2/3 of 1% higher against the US Dollar. NYMEX
crude oil is now trading over 1% higher and at $77.81/barrel. Gold is trading
nearly 1/10 of 1% higher while silver is up over 1/2 of 1%. Base metals ended
the day all solidly in the positive. Indicator chart show nickel slumped
on news of a second consecutive day of inventory growth, but a rally ing
US market helped pull it back up, until it fell again late. Dow Jones reports
three month nickel ended the day at
$9.38/lb. Stockpiles of nickel
stored in LME approved warehouses rose for a second consecutive day, the
first time we have seen this happen since May 26 and 27th. Since those two
days, we have only recorded three days over the last two months where more
nickel was received into storage than shipped out, two of those days being
yesterday and today. This information had a similar effect on the market
today as it did yesterday, with the market falling on the news. Sucden's
day old chart shows nickel trading thru yesterday
(chart here) , with technicals remaining in the bullish
corner. The BDI gained for its 10th consecutive day, up 41 points. In Germany,
economic sentiment rose, while in the US, initial jobless claims fell. Tonight
and tomorrow, we get the Japanese PMI report, new US GDP numbers, the Chicago
PMI numbers, US consumer sentiment, European employment, and German retail
sales.
Mittal warns on
pace of global recovery - Lakshmi Mittal sounded a warning note over the
pace of the world recovery, after ArcelorMittal announced a 146% rise in
underlying profits in the second quarter, compared to a year previously.
-
more
Steel firms warn of slowdown - Leading global steel makers ArcelorMittal
and Nippon Steel Corp became the latest companies to warn slowing growth
in China could hit profits, even as both posted strong quarterly earnings.
-
more
Eramet eyes takeovers,
sees volatile markets - Eramet, the world's sixth-largest nickel producer,
is on the lookout for takeovers and expects volatile markets as customers
reduce stocks and steel output slows, the French mining group said on Thursday.
-
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.06/lb
higher and off earlier
highs, with all base metals trading higher this morning. The Euro is trading
6/10 of 1% higher against the US Dollar, giving commodity trading a boost.
NYMEX crude oil is bucking the trend, trading lower by nearly 6/10 of 1%
and at $76.55/barrel. Gold is trading lower by nearly 1/4 of 1% while
silver is higher by the same amount. In overnight trading Asian markets ended
flat, with China up 1/2 of 1%. European markets are trading higher this morning,
while US futures show wall Street may return to a bullish mood. Nickel
inventories rose for a second consecutive day.
Edward Meir of MF Global Morning Comments - Metals pushed higher on Wednesday,
with copper retesting its early May highs, as gains in the Euro and nervousness
about falling LME stock levels kept the complex relatively buoyant. The group
also managed to shrug off the day's major US macro release, which was the
July durable goods reading. This came in at -1%, well below the 1% expected,
and showing its largest decline since August. However, the headline number
was somewhat misleading in that a separate category showed businesses continuing
to buy equipment, suggesting that corporate investment still remains quite
strong. Later in the day on Wednesday, the Fed's Beige Book also came out,
and although the readings were mixed, they too did not derail the advance
in metals, although they did generate some weakness in the US equity markets.
The Fed survey saw economic activity continuing to increase (on balance)
since last month's report, but among the districts reporting improvements,
a few said that the increases were modest. Manufacturing activity continued
to expand in most districts, although several reported a leveling off in
activity. Commercial real estate markets, especially construction, remained
weak, while banking conditions varied across districts; most reports showed
credit standards remaining tight. We are seeing a decent advance across the
board in metals right now, as a stronger euro (now trading at just under
$1.31) and stronger European equity markets, are both contributing to the
steadier tone. The Euro in particular, has benefited by a report out earlier
showing Eurozone sentiment rising strongly in July, up to 101.3, a 28-month
high, and well above consensus forecasts of 99. In addition, German unemployment
fell for a 13th straight month in July, the lowest since November of 2008,
as a number of German companies benefited from a surge in exports. ...
We are $20,629 on nickel, up $224.The fact that we managed to close
above $20,500 resistance for two days in a row, should set up the complex
for further gains. Our next upside target is now at $21,900. (read
Ed Meir's complete morning base metals report
here)
(Yieh) Taiwan’s Yieh United Steel Corp. (Yusco) has announced a price
rise of US$100~150/ton for stainless steel exports for the first half of
August.
(Dow Jones) Taiyuan Iron & Steel (Group) Co., also known as Tisco, said
Thursday that it has signed an agreement with China Nonferrous Metal Mining
Group Co. to jointly develop the Tagaung Taung nickel mining project in Myanmar.
(SBB) Chinese FeCr prices bottom out, see limited upside
(DJ) Eramet Says 1H Nickel Output +2%, But Sales -5%
DJ Stainless Steel
Production To Slow In 3Q - Eramet - Global stainless steel production is
expected to slow in the third quarter compared with the average in the first
half of the year, French metals and mining group Eramet SA said Thursday.
-
more
Belvedere restarts
Hitura production - Belvedere Resources Ltd. has successfully restarted its
100-per-cent-owned Hitura nickel mine in Finland. First concentrate has been
produced well ahead of the scheduled restart of the mine in August and the
mine and mill are now ramping up to full production. -
more
Coobina chromite
mine set to re-open - Ukrainian billionaire Gennadiy Bogolyubov is poised
to reopen the Coobina chromite mine in the Pilbara, creating 120 jobs for
an operation that could generate about 2.5 per cent of the world's supply
of the stainless steel ingredient.
- more
FeCr Situation In
China Is Changing Drastically = China's Imports Of FeCr In First Half 2010
Decreased By 10% - The situation on supply and demand of ferro-chrome in
China has had a considerable change in the last 2 - 3 months. This aspect
has been accelerated by the movement, which major stainless steel mills in
China commenced from July to reduce their production of stainless steel.
-
more
Russian VEB dismisses
plans to buy stake in Norilsk - Russia's state-owned lender VEB is not seeking
to buy a stake in nickel producer Norilsk Nickel, the bank's chairman, Vladimir
Dmitriev, told journalists on Wednesday. -
more
Ramu to be next
‘big mine’ - The Ramu nickel/cobalt mine in the Madang is shaping
up to be the “next big mine” in Papua New Guinea with the eventual
scaling down of operations at the Ok Tedi mine. -
more
Ramu NiCo pursuing nickel project despite lawsuit - Despite a court injunction
against the proposed deep-sea tailing system for the Ramu nickel project,
project owner Ramu NiCo has decided to pursue other construction activities
at the mining and refining sites. -
more
Russian steel sector
invests in raw materials - Russian steel makers are increasing investment
in raw material production assets as coking coal and iron ore prices rise.
-
more
£100k reward
after millions-of-pounds of metal stolen - A £100,000 reward is being
offered after millions-of-pounds worth of copper and nickel were stolen from
a warehouse at a Liverpool dock. -
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 Could Jolt Markets on Aug. 1
With PMI Below 50, Westpac, SocGen Say // Japan's Slower Industrial Production
May Build Case for Stimulus Extension // Cameron Urges India to Cut Trade
Barriers, Boost Jobs // Asian Stocks Rise to 10-Week High on Earnings Hopes;
Baoshan Steel Climbs // Europe Stress Relieved With Swap Gap Vanishing: Credit
Markets // BoE's King Forecasts No Early Return to `Normal' Rate Level //
ArcelorMittal South Africa Cancels Steel Surcharge After Kumba Supply Deal
// Banks in Europe Rush to Sell Debt After Stress Tests Buoy Investor Demand
// European Stocks, Oil Retreat on Economy; Dollar Slips Versus Yen // U.S.
Stocks Retreat Following Unexpected Drop in Orders for Durable Goods
The Euro is now trading slightly higher against the US Dollar, but so far
today, trading has been a wash. NYMEX crude is trading nearly 3/4 of 1% lower
and at $76.94/barrel. Gold is up slightly while silver is off nearly 1%.
Base metals ended mostly higher, with all except nickel pulling off a positive
day. Indicator charts show nickel started the morning higher, but when daily
inventory numbers were issued showing an unexpected gain, the price slid
and was unable to recover. Dow Joones reports three month nickel ended the
day at $9.26/lb. Inventories of nickel
stored in LME approved warehouses rose overnight. Yes, you read that correctly,
they rose ovrenight. This would be the first time inventories gained more
than they lost since June 8th. Total stockpiles now show reading above the
116,300 tonne level. Sucden's day old report show LME trading thru yesterday
(chart here), with today's market opening with oversold
indicators on both the RSI and SStoch. In our opinion, the upward trend for
nickel remains intact, unless more unexpected news hits the market. Here
is how Bloomberg headlined its story on the US Durable Goods release this
morning "U.S. Capital-Goods Orders Ex-Aircraft Climb in Sign of Investment
Pickup". MarketWatch's headline read "June durable-goods orders fall sharply".
Same news, totally different spin. Whichever makes you feel better, the fact
remains the report came in much lower than analysts had expected. The BDI,
on the other hand, came in higher at plus 32 and day 9 of consecutive gains.
Wall Street is fairly docile at the moment as the durable goods report threw
bullish traders a curve ball.
FACTBOX-Iron
ore swap contracts: Who's doing what? - Iron ore swap contracts have become
increasingly popular since late 2008, as a bid by miners to create a more
market-based pricing scheme has gained momentum after they abandoned the
decades-old annual benchmark system. -
more
Russia's Severstal
suspends steel production at U.S. plant - Severstal, Russia's largest steelmaker,
has suspended production at its Sparrows Point plant in the United States
due to falling prices and low demand for steel in the U.S., the company said
on Wednesday. -
more
UAE emerging as the
main hub for supply to MENA with base metal products - The Gulf has the largest
concentration of energy resources in the world with oil producing countries
in the region estimated to have spent approximately AED 182.5 billion (US$50
billion) to increase their current oil field production capacities or to
develop new discoveries by the year-end. -
more
The day a 3/8"
stainless steel liner saved a US noclear power plant from disaster - 2002
article
here problem back in 2010
here local article
here
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $.02/lb
, with other base
metals trading mostly higher. The Euro is trading only slightly lower against
the US Dollar at the moment. NYMEX crude oil is down 2/10 of 1% and trading
at $77.35/barrel. Gold is trading only slightly higher, while silver
is down over 2/10 of 1%. In overnight trading, Asian markets ended higher,
with China up nearly 2-1/2%. European markets are slightly higher this morning,
and US futures are quiet and have yet to give a signal on what direction
Wall Street might open. Nickel inventories rose overnight, for the first
time in 7 weeks.
Edward Meir of MF Global Morning Comments - Metals lost ground on Tuesday,
as after six days of uninterrupted gains, copper's failure to close above
$7050 resistance may have prompted some selling. In addition, reports that
US consumer confidence fell to its lowest level in five months may have also
sapped some buying enthusiasm. Despite the drop in confidence readings, we
should note that July levels were only slightly below estimates, and certainly
did not approach the plunge we had in the June reading a few weeks ago. More
importantly, weaker confidence numbers do not necessarily translate into
decreasing consumption. We wrote in yesterday’s note that while metals
were in store for a pullback, the declines were expected to be short-lived,
and that seems to be playing out today, as the group has recovered all of
Wednesday's losses-- and then some. Once again, it is the firmer tone in
the equity markets that is behind the turnaround, as Asian and European stock
markets hit 10 and 12-week highs, respectively, earlier in the day. (Even
China's battered Shanghai Composite Index rose to a two-month closing high).
The stronger Euro also helped metals, as it pushed to an 11-week high of
$1.3042 against the dollar, while also hitting a two-month high against the
yen. ... We are $20,500 on nickel, down $45. Despite nickel’s
sluggish performance over the last few days, we did manage to close above
$20,500 resistance for two days in a row, setting up the complex for further
gains. Our next upside target is now at $21,900. (read Ed Meir's
complete morning base metals report
here)
(Interfax) Shanghai Stock Exchange-listed Jinduicheng Molybdenum Co. Ltd.
announced on July 27 that production at its molybdenum ore deposit and two
processing plants in Hua County, Shaanxi Province has been suspended since
July 24 due to heavy rainfall.
(MF) According to sources, China produced 362,800 tons of pig iron nickel
in June of 2010, equaling to 17,700 tons of pure nickel. Pig iron nickel
output of June increased by 32.89% y-o-y, down 3.76% m-o-m. Pure nickel output
of June increased by 77.36% y-o-y, down 5.85% m-o-m.
(Interfax) Jinchuan Group Ltd. has again raised its ex-works refined nickel
price, pushing it up RMB 2,000 ($295) to RMB 158,000 ($23,305) per ton and
bringing it in line with international refined nickel prices, according to
a Jinchuan Group Web site announcement.
(PR) The American Trucking Associations' advance seasonally adjusted (SA)
For-Hire Truck Tonnage Index decreased 1.4 percent in June, although May's
reduction was revised from 0.6 percent to just 0.1 percent. May and June
marked the first back-to-back contractions since March and April 2009. The
latest reduction lowered the SA index from 110.1 (2000=100) in May to 108.5
in June.
Universal Stainless Reports Strong 2010 Second Quarter Results -
more
Allegheny Technologies Announces Second Quarter 2010 Results -
more
Capital goods makers up against anti dumping duty on stainless steel -
more
Nippon Steel gives cautious outlook, eyeing China -
more
(China) Regulator sees no risks from local govt loans -
more
Shipping Bottoming as China Steel Price Rebound Lifts Iron Ore -
more
£100,000
reward to catch Liverpool dock metal thieves - A £100,000 reward was
today offered to catch a gang of crooks behind an audacious metal heist worth
millions. -
more
Acerinox H1 net
misses forecast on nickel provision - Acerinox, the world's largest stainless
steel maker, swung to a first-half net profit thanks to a recovery in demand,
though a provision to mark stock down to volatile nickel prices pulled it
below forecasts. -
more
ArcelorMittal Plans Stainless Steel Spin-Off - World's largest steelmaker
ArcelorMittal (MT) said Wednesday it's seeking board approval to spin its
stainless steel business off as a separately listed company, a move many
said could spur the much needed consolidation in a market suffering from
oversupply. -
more
Nickel miner
moves into Chinese market - Goldfields' miner Western Areas has shipped its
first load of containerized nickel to China. -
more
Xstrata to restart
Sinclair nickel mine - Xstrata expects to start production from the Sinclair
underground nickel mine near Leonora before the end of this year after resuming
development work in light of improved market conditions. -
more
South African
Government Strengthens Regulations For Safety At Platinum And Chrome Mines
= Regulations Cause To Raise Costs And To Shorten Operations, This Measure
Is Creating Stir In Mining Industry - The Government of South Africa has
determined to strengthen the regulations for safety in operations at platinum
mines and chrome mines, which have been concentrated on North West Province,
and this measure is creating a stir in the mining industry of South Africa.
-
more
ThyssenKrupp AG says
no decision yet on stainless melt shop schedule - Some equipment's here,
but that doesn't mean ThyssenKrupp AG's stainless steel melt shop has returned
to the front burner. -
more
Courtesy AISI - Based
on preliminary Census Bureau data, the American Iron and Steel Institute
(AISI) reported today that the U.S. imported a total of 1,982,000 net tons
(NT) of steel in June, including 1,543,000 NT of finished steel (down 14%
each vs. May final data).
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 Regulators, Officials Aim to
Ease Local Finance Vehicle Loan Concern // Reserve Bank of India to Hold
Meetings Every Six Weeks to Manage Inflation // India Raises Benchmark Rate
More Than Forecast in Battle to Rein in Prices // Thai Earnings Growth to
Help Stocks Withstand Turmoil, Aberdeen Asset Says // Asian Stocks Climb
on U.S. Home Sales; James Hardie, Seiko Epson Advance // Russia's Drought
Raises Bondholder Risk on Prices // BP Replaces Hayward, Quickens Asset Sales
on Record Loss // Deutsche Bank Profit Rises 6.4%, Helped by Consumer Banking
// Danone Profit Margins Weaken on Commodity Costs // European Stocks Up
for Sixth Day; UBS, Deutsche Bank Gain // FedEx, UPS Signal Export-Led
U.S. Growth Momentum // Dow Erasing `10 Loss as S&P 500 Tops Moving Average
Fuels Bulls // DuPont Reports Higher-Than-Estimated Profit, Increases Full-Year
Forecast // Oil Supplies Falling to Four-Month Low in Survey on Storm: Energy
Markets // Consumer Confidence in U.S. Fell in July to a Five-Month Low //
High-Yield Debt's Best Rally Since March Entices Borrowers: Credit Markets
// Apartment Rentals Surge in U.S. on Home Foreclosures, Job Gains
// U.S. Stocks Fluctuate on Earnings, Drop in Consumer Confidence
The Euro is presently trading nearly 1/10 of 1% lower against the US Dollar.
NYMEX crude oil is trading lower by over 1-1/2% and at $77.73/barrel. Gold
is off nearly 2% and silver is lower by over 3%. Base metals also ended the
day mostly lower, after US consumer confidence numbers zapped the market.
Indicator charts show three month nickel was trading slightly higher for
much of the morning until the confidence numbers hit and nickel fell, where
it did not start recovering until late in the session. DOw Jones reports
three month nickel ended the day at
$9.32/lb. So far this year,
our highest close was on April 15th at $12.58/lb and the lowest was $7.72/lb
on February 5th. Stockpiles of nickel stored in LME warehouses fell yet again,
and sit just under the 116,000 tonne level. While outbound shipments were
higher, we did see at least two more inbound shipments recorded overnight.
Sucden's day old chart shows nickel traders attempting to break out of rangebound
trading
(chart here). Note the RSI and SStoch numbers reflect
a market not yet in the overbought range, leaving the bulls some technical
room to run. The Baltic Dry Index rose for the eighth straight session ,
gaining another 28 points. That does this tell us? Depends on who you believe.
Some analysts say it is because shipping companies have taken ships out of
service due to a glut, thus driving the market higher. Others will tell you
it implies more commodities are shipping around the world. One is a false
signal, one is positive. Pick your poison.In the US, home prices rose slightly
in May, while consumer confidence fell to its lowest level since February
(Bloomberg) Merafe Resources Ltd. said ferrochrome production from its venture
with Xstrata Plc during the six months through June rose 149 percent from
a year earlier.
Oleg Deripaska
Ordered By Kremlin To Sell Out of Norilsk Nickel - Yury Humber and the Bloomberg
bureau in Moscow run by Bradley Cook have a special relationship with United
Company Rusal. -
more
80 Chinese
miners detained - Philippine police said on Tuesday they had detained 80
Chinese nationals illegally working at a mine site north of Manila. -
more
Interesting set
of articles this past week in Chinese press about the problem of "fake" stainless
steel. Here are a few articles speaking about the problem, including
fake stainless steel chopsticks. I am posting the links to three Chinese
websites - you will need to use your own translation service to read them
in English.
(article
1 in Chinese)
(article 2 in Chinese)
(article
3 in Chinese)
Deep Underground,
Miles of Hidden Wildfires Rage - Three blistering fires are blazing through
Wyoming's scenic Powder River Basin, but firefighters aren't paying any
attention. -
more
Obama Wants Global
Mining Transparency Standard - Disclosure requirements for mining and energy
companies included in the newly enacted U.S. financial reform law should
become a global standard for corporate transparency, the Obama administration
said on Friday, but an Australian resources company focusing on Africa warned
that it is likely to squeeze tantalum supplies and increase prices. -
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
with most base metals
slightly lower this morning. The Euro is trading 1/3 of 1% higher against
the US Dollar. NYMEX crude oil is trading nearly 2/3 of 1% higher and at
$79.47/barrel. Gold and silver are both slightly lower. In overnight trading,
Asian markets ended mostly higher, with China off over 1/2 of 1%. European
markets are trading is trading higher this morning, and futures show Wall
Street has no intention of ending its bull run. Nickel inventories fell
overnight.
Edward Meir of MF Global Morning Comments - Although somewhat overextended
technically, metals opened the week with another solid gain, with copper
extending its advance to a 10-week high. The complex was boosted by a weaker
dollar, as well as by the stronger tone in the US equity markets, where stocks
pushed higher on account of both new home sales coming in better than expected,
as well as a spate of decent earnings reports from the likes of Federal Express.
The company beat earnings and moved its guidance higher, strongly implying
that the US economic recovery remains on track, at least viewed through the
prism of shipments. More broadly, out of the 175 S&P 500 companies that
have reported through last Friday, 78% have beaten estimates, with leadership
coming from technology, financials, and the industrial sectors. Metals
are mixed right now, erasing earlier losses in Asian trading. We still expect
the complex to retrace slightly over the next day or two, but any decline
should be used a buying opportunity, particularly if the macro numbers out
of the US come in better than expected. Later today, we get July consumer
confidence readings, which could be important, as last time around, an unexpected
plunge in one of these readings helped send a number of markets sharply lower.
We do not expect a repeat this time around, and so we will likely see relatively
stable markets in place for a little while longer, with any expected retracement
proving short-lived. The big item this week will be the second quarter GDP
report on Friday, which likely will influence the tone going into next week
as well. ... We are $20,758 on nickel, down $42. Surprisingly, we did close
above $20,500 resistance yesterday, and another close above this mark today
could set up the complex for further gains. (read Ed Meir's complete
morning base metals report
here)
(MFG) Reuters ran an interesting piece today saying that reduced demand for
nickel in China is prompting owners of refined nickel stored in bonded warehouses
to re-export the metal. One analyst at research group Antaike estimates that
nickel exports could be 60,000 tons this year after the country has exported
33,000 tons over the first half. In addition, abundant supplies of stainless
steel in China is weighing on domestic prices, as is increased use of nickel
pig iron, where production is expected to come in at 150,000 tons this year,
about 50% higher than previous Antaike estimates. However, NPI production
may fall in the second half, partly due to higher costs for electricity and
coal, a producer in southern China told Reuters.
(Bloomberg) Wuhan Iron & Steel Group, China's third-biggest steelmaker,
said it will buy iron ore from Corp. Venezolana de Guayana at a lower price
than what Vale SA , the world's largest supplier, is charging.
(AMM) Melting-grade nickel premiums have fallen as smaller traders offer
material at discounts amid fears of further pressure ahead of the restart
at Vale’s Sudbury, Ontario, operations.
(DJ) China's Jinchuan Raises Refined Nickel Price 1.3% To CNY158,000/Ton
(Yieh) Taiwan’s Yieh United Steel Corp. (Yusco) considers increasing
its August prices if LME nickel prices can keep above US$20,000/ton in the
rest of July.
(DJ) Xstrata: 1H Refined Nickel Output 45,458 Tons, +8.3% On Year
(Yieh) According to related statistics of the Custom, China’s import
and export of stainless steel coils reached 56,931 tons and 99,889 tons
respectively in June.
Synalloy Corporation Announces Second Quarter Results -
more
Horizonte buys Brazil nickel project, shares jump -
more
Jim Rogers: The Stress Tests Were A Huge PR Gimmick And Now More Problems
Are Coming -
more
22 Statistics That Prove The Middle Class Is Being Systematically Wiped Out
Of Existence In America -
more
Posco To Maintain
July Stainless Steel Prices In August - Posco will maintain stainless steel
product prices at July's levels in August, in a signal to the market that
prices have bottomed, the company said Tuesday. -
more
London Metal Exchange
Trading in First Half Climbs Almost 8% to a Record - London Metal Exchange
trading was a record in the first six months this year, led by gains in lead.
-
more
Price Of FeCr For
Shipments To Japan In Q3 / 10 Is Reduced By 6 US-Cents Per Lb. Of Cr = New
Benchmark Price Is 138 US-Cents Per Lb. Of Cr CIF - It was known on the 21st
of July from Nippon Steel & Sumikin Stainless Steel that the benchmark
price of South African charge chrome for shipments to Japan in the third
quarter (July - September) of 2010 has been settled between major producers
in South Africa and leading stainless steel companies in Japan by a reduction
of 6 US-Cents per lb. of Cr. -
more
Taiwan`s Steel
Firms Slash Output to Weather Downtrend -To weather the volatile steel-market,
Taiwan`s listed steel firms, including Chien Shing Stainless Steel Co., Yieh
United Steel Corp., Tang Eng Iron Works Ltd. and China Steel Corp., are cutting
production or suspending operations. -
more
The Inco men are
back - The Inco name may have disappeared from the Canadian mining scene,
but the team behind the once iconic firm is back with ambitious plans to
build one of the biggest single nickel mine operations in the world. -
more
No cigars: embargo
lift wouldn't do much for Cuba's paralyzed economy - While a chorus of voices
in the U.S. increasingly demand that the Obama administration completely
drop its economic embargo and 'normalize' relations with Cuba, such an event
would not necessarily positively impact the Communist island – at least
not in the near-term. -
more
China's largest
nickel producer Jinchuan Group Co. plans to use Albidon Ltd. to acquire overseas
nickel assets, Dow Jones Newswires quoted the Australian miner as saying
on Monday. -
more
Deripaska, Potanin
Hurt Norilsk Value in Battle for $14 Billion - OAO GMK Norilsk Nickel’s
billionaire owners, split over use of a $14.3 billion cash pile, are damaging
the value of Russia’s biggest mining company as their quarrel distracts
from growth. -
more
Karnataka bans iron
ore exports from 10 ports - Karnataka, the country's second largest producer
of iron ore, has banned exports of the steelmaking ingredient from 10 of
its ports, government sources said on Tuesday. -
more
Courtesy AISI - In
the week ending July 24, 2010, domestic raw steel production was 1,742,000
net tons while the capability utilization rate was 72.0 percent. Production
was 1,255,000 tons in the week ending July 24, 2009, while the capability
utilization then was 52.4 percent. The current week production represents
a 38.8 percent increase from the same period in the previous year. Production
for the week ending July 24, 2010 is up 1.0 percent from the previous week
ending July 17, 2010 when production was 1,726,000 tons and the rate of
capability utilization was 71.4 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) Euro Rises Versus the Dollar as Most
Banks Pass Stress Tests // Global Economy Slowing to 3.25% From 4.7% Recent
Average // Asia Stocks Hit One-Month High on Bank Stress Test Results //
EU Stress Tests May Be `Missed Opportunity' to Fortify Banks // BP Said to
Prepare Dudley as CEO as Board Looks for Recovery // European Stocks Decline
as Drugmakers Retreat // Deficits Don't Matter as Geithner Growth Gets Lowest
Yield // Utility Companies `Just Exhausted' After Defeat on Cap-and-Trade
Measure // June Sales of U.S. New Homes Climb More Than Forecast // U.S.
Small-Business Aid May Create $300 Billion of `Junk' Loans // U.S. Stocks,
Oil Advance While Treasuries Fall on Housing Data
The Euro is trading 2/3 of 1% higher against the US Dollar, and at a 3 month
high. NYMEX crude is trading nearly 2/10 of 1% lower, but gaining on a stronger
Euro. Gold is down nearly 1/2 of 1% as traders take profits, while silver
is trading 1/3 of 1% higher. Base metals ended the session all higher. Indicator
charts show nickel bounced early but was slowly losing ground, when the US
new home sales drove the US Dollar lower, and nickel spiked upwards. Dow
Jones reports three month nickel ended the day at
$9.43/lb, its highest close
since June 28th. Stockpiles of nickel stored in LME approved warehouses continue
to fall, and now sit just under the 116,300 tonne level. Sucden's day old
nickel chart shows traders latest attempt at a bull run
(chart here). The Baltic Dry index gained 15 points but
one of the three sub indexes (Cape index) read negative. US reported new
home sales bounced off a record low in June - to their second lowest reading.
But the bounce was higher than economists had expected. This came a few hours
after the Chicago Fed reported economic activity slowed in June. The stainless
steel index we follow in China crawled back over the 104 point level for
the first time since June 4th, but we fell this is being caused by the increase
in the price of nickel and is too early to be seen a possible pick up in
demand. World markets are generally in a bullish mood today.
(Dow Jones) Steel prices may have hit bottom for now and should pick up on
a global basis in the coming weeks, says Steel Market Intelligence.
Notable quote - Lourenço Gonçalves, president and chief executive
of Metals USA Inc., Fort Lauderdale, Fla - “We always keep our stainless
inventories close to the vest, even in boom times, because we know that anything
affected by commodities that trade on the London Metal Exchange is unpredictable
and doesn’t necessarily follow true life. You never know what speculators
are thinking.”
(MB) Outokumpu plans ferrochrome self-sufficiency from 2013
(AMM) China ferrochrome imports plummet to 17-month low
Chicago Fed: Economic activity declined in June -
more
World steel
scrap use seen rebounding this year - World steel scrap usage is set to rebound
in 2010, after a fall last year, as global crude steel production bounces
on the back of improved demand, a leading industry official told Reuters
on Friday. -
more
Russia to keep
protectionist measures in steel - Russia's Economy Ministry said on Friday
it saw no need to lift protectionist measures in the steel industry despite
such calls from other sectors, including the country's pipeline monopoly.
-
more
China Jinchuan plans
IPO in H1 2011 -paper - China's top nickel producer Jinchuan Group Ltd plans
to launch an IPO in the first half of next year, the China Securities Journal
said on Monday. -
more
China to limit
nonferrous metals production by '15 - China will limit production of 10 kinds
of non-ferrous metals to a combined annual output of about 41 million tons
by 2015, the China Securities Journal reported, citing Shang Fushan, vice
chairman of the China Nonferrous Metals Industry Association. -
more
For our fastener
industry readers out there, came across a rather interesting tidbit of
information this weekend. According to this article, the average employee
in the screw making business in China makes between $73 and $118 - a MONTH.
(source)
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.05/lb
but fading from earlier
highs, with other base metals mixed and mostly higher. The Euro is trading
nearly 2/10 of 1% higher against the US Dollar. NYMEX crude is off 3/4 of
1% and trading at $78.38/barrel. Gold is down over 2/10 of 1% and silver
is off over 4/10 of 1%. In overnight trading, Asian markets ended higher,
with China up nearly 2/3 of 1%. European markets are trading slightly lower
this morning, and US futures have yet to determine an opening direction.
Nickel inventories continue to fall.
Edward Meir of MF Global Morning Comments - Metals were higher again on Friday,
with copper up for a fifth straight day, and racking up its biggest weekly
gain since February. Tin was also very strong, hitting its highest level
since September 2008, while aluminum, lead and zinc rose to two-month highs.
A slightly weaker dollar and a firmer tone to the US equity markets helped
metals finish in the black, although crude oil gave up an earlier advance
to finish lower. The focus in most markets on Friday was on the European
stress tests. If anything, the results were less stringent than what the
markets were bracing for-- analysts were expecting up to European 20 banks
as being capital-deficient, with total shortfalls ranging from €30 billion
to €90 billion, but only seven banks flunked the tests, coming up short
by only a combined €3.5 billion. Despite worries about the health of
French, Irish, Italian, and Portuguese banks, no banks from any of these
countries failed the tests. Moreover, two of the seven banks that were flagged
—Germany's Hypo Real Estate Holding AG and Greece's ATEbank—are
institutions that have already been nationalized, making their capital shortfalls
relatively meaningless. Market reaction to the tests was muted on Friday,
telling us that investors did not necessarily view the tests as being
sugarcoated. The Euro gained ground against the dollar after the results
were announced, and the Dow dropped initially only to rally by the close.
(Shares of big European banks traded in the US followed the same path). While
the tests were arguably somewhat “light”, investors were nevertheless
assured by a greater measure of transparency. In this regard, most banks
(with the notable exception of the German ones) revealed their holdings of
European government bonds for the first time. These disclosures were in our
view more important than the tests themselves. Metals are mixed as of this
writing, with several breaching key resistance levels earlier in the day,
but the gains have since been rolled back. We expect that with the stress
tests now likely fully discounted, metals could retrace slightly over the
next day or two, as focus reverts back to macro variables. ... We are $20,545
on nickel, up $190, and although prices are nosing above $20,500 resistance,
we don’t expect to see the complex close above this level for two days
in a row just yet. (read Ed Meir's complete morning base metals report
here)
(MW) As third-quarter steel production may fall 12%, nickel consumption could
drop some 8% to 340kt, according to BMO (BMO Capital Markets Global Mining
Research). "Overall, the uncertainty surrounding global economic growth and
slowing demand for steel products will pressure the nickel price," Melek
advised. "The possibility of a substantial decrease in global steel output
is also supportive of the bearish case for nickel over the near-term horizon."
BMO's nickel price forecast has dropped from $9.78/lb to $9.28/lb for 2010.
China - 'Double dip' recession unlikely in H2 -
more
First Nickel, union
meet - Bargaining teams for First Nickel Inc. and Mine Mill Local 598/CAW
are negotiating to settle a new collective agreement for about 140 production
and maintenance workers -- even though there may currently be no jobs for
them at the junior miner. -
more
Chinese investors
keen on Atlas’ nickel project - A number of Chinese firms have expressed
interest in partnering with Atlas Mining and Development Corp. to develop
its nickel mine in Palawan. Alfredo Ramos, Atlas president, said the company
is negotiating with possible partners for its mine in Berong, Palawan. -
more
Specialty Steel
Outlook - While still not where suppliers would like it to be, the
market for stainless steel and other specialty metals is in a better place
than it was about a year ago. -
more
Nickel Productions
In Japan For May 2010 Decreased Compared To That In April = Total Output
Of Nickels In Jan. - May / 10 Increased Compared With That In Same Period
2009 - The quantities of nickel metal and ferro-nickel produced in Japan
in January - May of 2010 as well as in a single month of May were known on
the end of last week. Namely, in May of 2010, Japan produced <> 3,096
tons of nickel metal and <> 5,819 tons of Ni (27,419 tons on material
base) in ferro-nickel.-
more
Mechel Announces
Launch of a New High Quality and Stainless Steel Production Complex by the
Russian Prime Minister Vladimir Putin at Chelyabinsk Metallurgical Plant
- Mechel OAO, one of the leading Russian mining and metals companies, announces
that Russian Prime Minister Vladimir Putin launched a high quality and stainless
steel production complex in the arc-furnace melting shop #6 of Chelyabinsk
Metallurgical Plant . -
more
Record High Levels
of Iron and Steel Production Forecast for 2010 and 2011 - MEPS remains quite
upbeat about the prospects for global iron and steelmaking this year and
next. -
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) Clinton Signals U.S. Role in China
Territorial Disputes After Asean Talks // North Korea Considers `Physical
Response' to Planned U.S. Naval Maneuvers // GIC Says Risk of Shocks May
Trigger World Recession `Sooner Than Expected' // Japan Says Yen Climb May
Hurt Economy, Increasing Policy-Intervention Risk // Thailand Economy May
Expand Most in 7 Years on Exports, Central Bank Says // Asian Stocks Rise
on Microsoft Earnings, Commodity Prices; Komatsu Climbs // Euro Climbs
as German Sentiment Outweighs Stress-Test Worries // Banks Use Russia Default
Relic for Bonds Amid Stress Tests: Credit Markets // German Business Confidence
Unexpectedly Surges // Bank Stress Test Success Hinges on Data, Not Failure
Count // U.K. Economy Grows Most in Four Years as Recovery Ignites // Seven
EU Banks Fail Stress Test, Face $4.5 Billion Shortfall // Euro Falls as Stress
Test Said to Only Consider Trading Losses // European Stocks Advance as Mining
Stocks Rally // Tropical Storm Bonnie Accelerates Toward Florida Keys //
Ford Posts $2.6 Billion Second-Quarter Profit on Pricier Cars // Senate Passes
U.S. War Bill Without State Aid for Teachers Sought by House // Oil Futures
Exodus Biggest Since Lehman on Recovery Unease: Energy Markets // Euro Pares
Loss, Treasuries Drop, Stocks Gain on Stress Tests
The Euro is trading over 1/2 of 1% lower against the US Dollar, but trading
has been choppy since the European bank stress tests were released. NYMEX
crude is off 8/10 of 1% and trading at $78.66/barrel. Gold is off over 1/2
of 1% and silver is slightly higher. Base metals ended the session mixed
but mostly higher. Indicator charts show nickel traded choppy today, within
a $400 tonne range, ending near the bottom of that range. Dow Jones reports
three month nickel ended the day and week at
$9.23/lb, up from a week ago,
month ago and year ago today. Stockpiles of nickel stored in worldwide LME
approved warehouses now stand just over the 116,800 tone level, after falling
again overnight. Sucden failed to update their day old chart. No warehouse
has registered an inbound shipment since the three that were recorded on
Monday, and one last Wednesday. Outbound's have ben steady with cancelled
warrants running over 4% for the entire month so far. Most outbound shipments
have come from the Rotterdam and Singapore warehouses, although shipments
have been recorded around the globe. The Baltic Dry Index continues
to put out a small beacon of hope, adding another 25 points to read 1,826.
After 35 consecutive daily declines, the string of gainers this week has
come as welcome news and might, we emphasis the word 'might', might imply
commodity shipments are starting to pick back up. With no headlines of its
own today, US markets looked to the European stress tests for news today,
and now that they have been released, analysts and the markets are scrambling
to figure out what it all means.
Brief History of
Ontario Mining - Ontario has become one of the most fortunate and richest
regions of the world primarily for two reasons. It has vast natural resources
including mineral deposits of untold potential. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.07/lb
but sliding, with other
base metals mixed and quiet. The Euro is trading slightly higher against
the US Dollar at the moment and also sliding off earlier highs. NYMEX crude
is down more than 1/2 of 1% and trading at $78.87/barrel. Gold is trading
over 2/3 of 1% higher and silver is up nearly 8/10 of 1%. Asian markets ended
higher overnight, with China up over 4/10 of 1%. European markets are slightly
higher this morning, awaiting bank stress reports, and US futures show Wall
Street would like to add to yesterday's bull charge. Nickel inventories fell
overnight.
Edward Meir of MF Global Morning Comments - Metals extended their gains into
a fourth day on Thursday, with copper rallying to its highest level in more
than two months, as did zinc and lead. However, some of the gains faded by
late in the session as a number of metals ran into key resistance points.
In copper's case, prices backed off after hitting resistance of $7050, while
aluminum had trouble maintaining gains above $2050, both levels capping the
top end of the trading ranges. A number of factors were behind yesterday's
advance including a surprising recovery in the US stock market, weather concerns
in the Gulf of Mexico that fueled the energy complex, and constructive macro
releases out of both Europe and the US. Of the three, the recovery in the
US equity market was perhaps the most dominant variable, as the magnitude
of the rally must have caught shorts flat-footed, particularly after Wednesday's
dramatic sell-off. It seems that equity investors staged an "about-face"
after refocusing on a slew of relatively decent earnings reports. In this
respect, Dow component Caterpillar reported higher sales and earnings due
to better sales of mining and infrastructure equipment, while fellow component
3M also saying that 2010 profits will exceed earlier targets. In addition,
although Fed Chairman Bernanke spoke again at a House hearing, his testimony
was not much different from what he said the day before, thus allowing the
markets to regroup somewhat. .... We expect to see further gains later
in the day in most markets, including metals, as results of the European
bank stress tests get released around 6pm Brussels time. In the meantime,
Swiss regulators are expected to give a clean bill of health to both Credit
Suisse and UBS; Swiss bankers claim their tests are twice as tough as those
being conducted by Brussels. ..... We are $20,465 on nickel, up $210,
and building on yesterday’s decent gains. We are approaching $20,500
resistance, which was breached briefly earlier today, so we could see further
gains if this level is successfully taken out on a two-day closing
basis. (read Ed Meir's complete morning base metals report
here)
(BS) The Ratan Jindal-run JSL Stainless Ltd (formerly JSL Ltd) has reported
a flat bottomline for the quarter ended June 2010.
(Interfax) China's apparent consumption of ten major nonferrous metals is
expected to reach a total of 43.80 million tons in 2015, a senior official
from China Nonferrous Metals Industry Association (CNIA) said at a July 23
conference.
(Dow Jones) Most of the base metals are just below technical resistances,
and could improve their outlook if they rise and close above them, says a
London-based trader.
(Interfax) Shanxi Province-based Taiyuan Iron and Steel (Group) Co. Ltd.
(TISCO) announced on July 22 that it produced approximately 1.41 million
tons of stainless steel and 4.97 million tons of crude steel in the first
half of the year, up 20.61 percent and 5.93 percent year-on-year, respectively.
(DJ) Chinese steelmaker Anshan Iron & Steel Group Corp. said Friday that
it has signed a cooperation framework agreement with Jilin Horoc Nonferrous
Metal Group Co. to secure nickel resources.
(DJ) Russia's flat stainless steel roll imports in June this year fell by
5.1%, compared with May, to 11,502 metric tons, the special steels producers'
association Spetsstal reported Thursday. The amount of flat stainless steel
roll imported in June was 3.4% more than in June 2009, Spetsstal said.
(XC) China Jinchuan raises refined nickel price by 2 pct to 156,000 yuan/t
(JMB) NSSC Launches World First Ferritic Stainless with Sn, FW Series
A new war of words
- From rank-and-file members to the international president, United Steelworkers
are outraged at comments from Vale president and chief executive officer
Roger Agnelli about the year-long strike in Sudbury and Port Colborne. -
more
Output Of Crude
Stainless Steel By Major 7 Companies / Japan In May / 10 Continued To Decrease
= Produced 303,000 Tons In Total On Crude Steel Base, Expansion Was Short
Of Breath
- more
Russia Said to
Consider Buying Norilsk Nickel Stake Amid Ownership Battle - Russia is
considering buying a stake in OAO GMK Norilsk Nickel, the country’s
biggest mining company, amid an ownership battle between major shareholders,
three people familiar with the matter said. -
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) Yen Rises on Concern Over U.S. Slowdown,
Europe's Banks // China's Car Dealers Cut Prices, Hand Out IPods as Sales
Slow // Japanese Officials Step Up Concern About Rising Yen's Threat to Exporters
// China's Stocks Post Longest Stretch of Gains in 5 Months on Policy Outlook
// Japanese Stocks Decline for Fifth Day After Bernanke Testimony; Sony Drops
// Europe's Services, Manufacturing Growth Accelerates // Euro Passes Stress
Test as Debt Panic Ebbs, Bank Exams Loom // U.K.'s Second Quarter Economic
Rebound `as Good as it Gets' Amid Slowdown // Bank of Ireland, Allied Irish
Said to Pass EU's Stress Tests // European Stocks Rise for Third Day on Economy;
Unibail, Vestas Lead Gains // Bernanke Avoids Pledging Action Even as Outlook
`Uncertain' // Credit-Card Reform Succeeds in Ending Many Deceptive Practices,
Pew Finds // Index of U.S. Leading Economic Indicators Fell 0.2% // Jobless
Claims in U.S. Increase More Than Economists Forecast to 464,000 // (MW)
Existing-home sales fall 5.1% as tax credit ends // Geithner Sees Basic
Confidence in Economy Even With `Tight' Credit Market // Stocks, Commodities
Gain on Earnings, Economy
The Euro is trading nearly 1.2% higher against the US Dollar on a positive
manufacturing index released today in Europe. NYMEX crude oil is up nearly
2.8% and trading at $78.69/barrel. Gold is higher by 9/10 of 1% and silver
is 2.6% higher. Base metals all traded solidly in the green as trader euphoria
swept across the continent and ocean. Indicator charts for nickel show a
slow steady climb throughout the entire session. Dow Jones reports three
month nickel ended the day at $9.19/lb, its best close this month but still
shy of June's high point by around $400/tonne. Inventories of nickel stored
in LME approved warehouses fell again overnight, and now sit just over the
117,200 tonne level. Sucden's day old chart shows yesterday's rise and the
start of the bulls trying to force nickel out of a channel
(chart here). The BDI saw day 5 of consecutive gains,
adding another 20 points overnight. By no means setting any records, but
the turnaround has so far proven not to be a fluke. Markets are in
a bullish mood today, after the European PMI came out at a number higher
than expected. News from the US was not so good, with existing home sales
falling, unemployment claims rising, and leading economic indicators showing
a slowdown. But the bulls are firmly entrenched and in charge of trading
today, and at last check the Dow was trading higher by around 200 points.
The Federal Budget Deficit So Far This Year—About $1 Trillion -
more
Canada and Sudbury
are Very Important to Vale – by Vale CEO Roger Agnelli -
more
The Vale Inco Strike
of 2009-2010 Leaves a Bitter Legacy in Sudbury (16 Tons and What do you get?)-
by Michael Atkins -
more
China's Domestic
Iron Ore Production Rises to Record in June, HSBC Says - Iron ore production
in China, the world’s largest consumer of the commodity, rose to a daily
record last month, helping steelmakers cut imports, according to HSBC Holdings
Plc. -
more
China's Commodity
Demand to Be `Very Volatile,' Credit Suisse's Tao Says - Commodity demand
from China, the world’s biggest metals consumer, will be “very
volatile” as the nation’s economy slows, Credit Suisse Group AG
said. -
more
Last chance
for Palawan tribe to stop mining - The Palawan tribe of the Philippines have
one more chance to stop companies from mining on their land. -
more
Dairy
Farmers Can Fight Johne's Disease Threat with Chlorine and Stainless Steel
- Two tips for preventing Johne's disease on dairy farms: Use stainless steel
water troughs and add chlorine to the water. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $.16/lb
higher, with all base
metals trading higher this morning. The Euro is helping commodities today,
up over 8/10 of 1% against the US Dollar. NYMEX crude is trading nearly 1/2
of 1% higher and at $76.92/barrel. Gold is trading slightly higher and silver
is up nearly 7/10 of 1%. In overnight trading, Asian markets ended flat,
with China higher by 1-1/4%. European markets are trading higher this morning,
on news that industrial orders in the 16-nation euro zone rose 3.8% in May
. US futures show Wall Street may open in a very bullish mood, after yesterday's
comment by Fed Chairman Ben Bernanke that the economic outlook was "unusually
uncertain" threw markets for a loop. Nickel inventories continue their fall.
ThyssenKrupp Nirosta August stainless surcharge -
more
Commodity/Economic Comments
Edward Meir of MF Global Morning Comments - Copper hit three-week highs on
Wednesday, taking the rest of the metals up along with it, as reports of
Chinese buying and falling stockpiles helped spark the buying. However, given
the late-day meltdown in several markets (notably crude oil and US equities)
taking place in the aftermath of Chairman Ben Bernanke's congressional testimony,
we were expecting to see metals sell off in Asian trading, which in fact
they did. However, the early losses did not linger around too long, and there
has been a rapid recovery since then, with prices now higher across the board.
Other markets are bouncing back as well; crude oil prices are up by about
$.60 a barrel, recovering more than half of Wednesday's losses, and the US
stock market is called to open higher. The Euro is also higher, now at $1.2855
after sinking to $1.2732 at one point yesterday. ... As we start the US session,
focus will be on June existing home sales out later in the day (expected
at 5.4 mln units) and the June index of leading economic indicators (-.4%).
The US equity markets will remain busy with earnings from the likes of
Caterpillar, the Travelers, UPS, Amazon, AT&T, Eli Lilly, and Microsoft,
all scheduled for release today. .... In macro news out of Europe,
data released today shows that growth in Europe’s services and manufacturing
industries unexpectedly accelerated in July, with a survey of Euro-area
purchasing managers increasing to 56.7 from 56 in June. Economists had projected
a drop to 55.5. .... We are $19,827 on nickel, up $332, with prices on track
to test $20,500 resistance.(read Ed Meir's complete morning base metals
report
here)
(Yieh) Taiwan's small screw sales has declined by about 30 percent from a
month ago. It is expected the fourth quarter of 2010 will be the worst for
the export of small screw.
(Interfax) In the first six months of 2010, China's imports of refined lead,
zinc, tin and nickel all dropped on an annual basis, according to figures
released by the General Administration of Customs (GAC) on July 21.
(VOCM) The leader of the NDP is calling on the Premier to help settle the
Voisey's Bay dispute. Talks between Vale and the United Steelworkers broke
off Tuesday evening. Both sides are blaming the other for the break down
in negotiations.
(CEBM) A Rebound in Steel Sector is Constrained by Oversupply and Uncertain
Outlook: The unprecedented amount of steel inventory will continue to be
a threat to steel market stability. Production cuts pressed by the steel
market and initiated by some mills have been insufficient to reverse the
oversupply situation in the near term, so a steel price rebound is constrained
by excess inventory and limited production cuts.
(MW) Nippon Steel Corp. and JFE Steel Corp. plan to curb domestic crude steel
production due to waning exports to China, which accounts for nearly half
of global steel demand, according to a report Wednesday.
(AMM) U.S. spot nickel premiums are expected to fall gradually and significantly
as new nickel supply from Vale SA’s Sudbury, Ontario, operations hit
the market in a couple of months, market participants warned.
Mass Disturbances in East China over Land Acquisition Spread -
more
Market Tendency
On Imports Of Ferro-Alloys At 15th July 2010 = Spot Price Of Manganese Ore
Is On Basic Tone To Fall - The market tendency by item on imports of ferro-alloys
into Japan at the 15th July of 2010 is as follows -
more
DJ Mincor Plans
To Increase Nickel Production By Up To 16,000 Tons - Australian nickel producer
Mincor Resources NL Thursday outlined plans to increase nickel production
to between 15,000 metric tons and 16,000 tons in the fiscal year ended June
30, 2012. -
more
Russia may introduce
new nickel export duty rate scale in 2011 or earlier - Russia may introduce
a new scale of nickel export duties in 2011 or earlier, head of tax and customs
at the Russian Finance Ministry Ilya Trunin said on Wednesday. -
more
Outokumpu Declines
4.2% After Operating Profit Misses Analysts' Estimates - Outokumpu Oyj, a
stainless-steel producer in Finland, fell the most in more than two months
in Helsinki trading after second-quarter earnings missed analyst estimates.
-
more
Small miners
mull restarting ad campaign against the new mine tax - Small miners have
raised alarm bells over the Greens' views on mining and are assessing whether
to restart the anti-mine tax ad campaign. -
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) Hong Kong Luxury Home Prices Will Increase
in Second Half, Jones Lang Says // Malaysian Inflation Accelerated to 1.7%
in June, Fastest Pace in 13 Months // China Stocks Rise for 3rd Day on New
Energy, Domestic Consumption Policies // Asian Stocks Rise on Apple Profit,
Commodity Prices; Japanese Shares Drop // Germany Fails to Attract Bids for
All Four-Billion Euros of 30-Year Bonds // European Bank Stress Tests Said
to Describe Three Scenarios // Bank of England Considered Expanding Economic
Stimulus // Lack of Sales Leaves Dubai Property Buyers Guessing on Prices
// Clegg Calls 2003 U.S.-Led Invasion of Iraq `Illegal' in Split With Cameron
// European Stocks Rally on Apple, Fiat Earnings // Obama Signs Finance
Bill as Political, Regulatory Battles Await // Apple Climbs as Revenue Forecast
Tops Analysts' Predictions // SEC Proposes More Disclosure, New Rules on
Mutual Fund Fees for Investors // Iraq's Political Impasse Raises Concerns
in Congress About Troop Drawdown // Most U.S. Stocks, Oil Fall; Treasuries
Gain Before Bernanke
The Euro is trading over 1/2 of 1% lower against the US Dollar at the moment.
NYMEX crude oil is down over 1/2 of 1% and trading at $77.17/barrel. Gold
is trading only slightly higher, and losing ground, while silver is up over
1/2 of 1%. Base metals shrugged off a weakening Euro and choppy equity market
to end solidly in the green today, with fresh fund money forcing shorts to
cover. Indicator charts show nickel started off the morning gaining, and
kept up the positive momentum for much of the day. Dow Jones reports three
month nickel ended the day at $8.84/lb. Inventories of nickel
stored in LME approved warehouses continue to fall to levels not seen since
last September, while the WBMS reports only a 5,000 tonne deficit so far
this year. Totals now read just shy of the 117,800 level. Sucden's day old
chart shows rangebound nickel trading
(chart here). China reported imports of refined nickel
rose slightly in June while imports of nickel ore also rose. Refined nickel
imports rose from 10,719 tonnes in May to 12,618 tonnes in June. This is
well off last June's figure of 47,754 tonnes. Nickel ore, used in the production
of the so called pig nickel, June's figure of 2,246,464 tonnes was higher
than May's 2,014,620, and well over last June's total of 1,700,927 tonnes.
The Baltic Dry Index gained 20 points overnight, day four of consecutive
growth.
(Reuters) A case in point is nickel, which along with tin was the star performer
in the first part of the year. The median average forecast is now $20,225
per tonne in calendar 2010, down 4.7 percent from an average of $21,213 per
tonne in H1 2010. (see Metals Insider for more)
(Dow Jones) Freeport-McMoRan Copper & Gold Inc. is keeping a close watch
on molybdenum market conditions to determine when to restart its Climax project,
the U.S. producer said Wednesday. Construction was suspended at Climax in
October 2008 in response to market conditions and is still on hold.
(SMR) South Korea has bought a total of 3,000 tonnes of grade A copper cathode
and 300 tonnes of nickel cathode all for Sept. 15 arrivals via tenders closed
today, the state run Public Procurement Service (PPS) said.
CNBC - U.S. mortgage applications jumped last week as demand for loans to
purchase homes rose for the first time in five weeks, the Mortgage Bankers
Association said on Wednesday.
Interest Rate Drops Spur Refinance Applications in Latest MBA Weekly Survey
-
more
Survey: Americans Remain Wary of Stock Market -
more
Deficits Do Matter, But Not the Way You Think -
more
Opinion: America's Unquenchable Defense Spending -
more
Specialty Steel Outlook
- While still not where suppliers would like it to be, the market for stainless
steel and other specialty metals is in a better place than it was about a
year ago. -
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 other
London traded base metals also higher. The Euro is not helping base metal
traders, trading nearly 1/2 of 1% lower against the US Dollar. NYMEX crude
oil is trading 2/3 of 1% higher and at $78.09/barrel. Gold is higher
by nearly 2/10 of 1% and silver is up nearly 7/10 of 1%. In overnight trading
Asian markets ended higher with China up 2/10 of 1% on higher commodity prices
and earnings reports. European markets are higher this morning, and US futures
show Wall Street will make an attempt at extending a two day bull run. Nickel
inventories fell overnight, and markets are preparing for Fed Chairman Ben
Bernanke's testimony before the U.S. Senate Banking Committee today.
Edward Meir of MF Global Morning Comments - Apart from aluminum, metals rallied
impressively yesterday, with copper leading the way after it tacked on almost
2% on the day. Once again, it was the stronger tone seen in the US equity
markets that was behind the rally, as stocks reversed earlier losses to close
higher despite mixed macro data. In this regard, we had housing reports showing
June building permits and housing starts coming in at 586,000 and 549,000,
respectively (vs. forecasts of 560,000 and 570,000). This was no major surprise,
and continues to point to a housing sector that remains fairly weak. Earnings
also continue to pour in, and although many companies have come in light
in one category or another, we sense that investors are concluding that they
are at least reporting year-over-year earnings growth, while sitting on piles
of cash to boot-- not exactly a sign of tougher times ahead. We are sharply
higher once again in metals this morning on no particular news, just the
fact that equity markets seem to be improving in both Asia and Europe, while
a higher opening is expected here in the US as well. Investors are waiting
for stress results out of Europe later this week, and the early word is that
the regulators plan to detail three scenarios on which the tests would be
constructed; banks will publish their estimated Tier 1 capital ratios under
a “benchmark for 2011”, an adverse scenario, and a third test that
includes a “sovereign shock”, this according to a template obtained
by Bloomberg. In the last scenario, banks must write down the value of sovereign
loans only if there is serious doubt about a state’s ability to repay
its debt, but for now, the “sovereign-shock” scenario does not
assume any European nation will default. The banks will also publish how
much they need to raise in terms of capital if their Tier 1 ratio falls below
6% in the event of the third scenario. We will see how all this plays out
in the days ahead, but certainly, the Euro is not doing much today, and holding
steady at $1.28. Nevertheless, we suspect markets will breathe somewhat easier
over the course of the week once these tests are behind us, and expect the
firmer tone we are seeing in most to stay in place at least through Friday.
.... We are $19,380 on nickel, up $255, with prices possibly on track to
test $20,500 resistance (read Ed Meir's complete morning base metals
report
here)
(WBMS) The world refined nickel market was in a 5,000-metric-ton deficit
in the first five months of the year, the World Bureau of Metal Statistics
said Wednesday.
(Yieh) According to data, crude stainless steel output in Europe 12 countries
decreased in the first quarter. The output totaled 1.96 million tons in the
first quarter and 1.97 million tons in the second quarter. It is expected
the output in the third quarter will be further down.
(JMB) Cold-rolled Ni stainless steel/ Distributors' inventory end-June/ Increases
by 5% due to decline in sales
Nickel Institute - “The Nickel Advantage is an essential technical resource
for all users of stainless steel” -
more
Pacific Ocean in early stages of a La Niña event -
more
The manufacturing recovery continues to trend upward and has rebounded from
severely depressed levels in 2009, according to the quarterly Manufacturers
Alliance/MAPI Survey on the Business Outlook -- June 2010. The index rose
to a record high 81% from 78% reported in the March 2010 report. -
more
Steel, Aluminum Shipment
Growth Rate Accelerates – The rate of year-over-year growth of U.S.
and Canadian metals service center steel and aluminum shipments accelerated
in June, while inventory-to-sales ratios declined. -
more
Vale talks break
off in Labrador - Contract talks between Vale and about 130 striking mine
and mill employees represented by the United Steelworkers at the company's
operations in Voisey's Bay, N.L., have broken off without a deal. -
more
Vale Voisey's strike talks break off over bonus - Vale and the union representing
striking workers at its Voisey's Bay nickel mine in eastern Canada have broken
off talks aimed at ending the year-long stoppage, the United Steelworkers
said on Tuesday. -
more
Chien Shing suspends
operation on downturn in stainless steel market - The company did not give
an exact date when operation would resume, reported Central News Agency
yesterday. -
more
POSCO to hike
stainless steel production in Vietnam - South Korea's POSCO said on
Wednesday its Vietnamese unit would expand cold-rolled stainless steel production
capacity through 2014 to enhance its business in Southeast Asian markets.
-
more
BHP cautious
on global growth - BHP Billiton Ltd says its petroleum and iron ore divisions
have both achieved annual production records, but the mining giant continues
to be cautious about the short-term outlook on the global economy. -
more
EU Steel Prices
- So far, there has been a dearth of third quarter orders for the European
flat product producers. Customers are staying out of the market for as long
as possible, citing poor demand and the approach of the summer holiday period
for the lack of buying activity. -
more
Chinese buyers learn
to dig, scoop global mining assets - Buyers from China accounted for 40 per
cent of inbound mining deals in Australia last year, and their global presence
keeps growing. -
more
China's June ore
imports from India drop 21 percent - China's iron ore imports from India
in June stood at 8.29 million tonnes, down 21 percent month on month as a
result of lukewarm demand and supply disruptions brought about by the Indian
monsoon season, customs data showed 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) China Passes U.S. as World's Biggest
Energy Consumer, IEA Says // China's Three Gorges Says Yangtze Flooding Exceeds
1998 Level // Taiwan's Export Orders Advanced More Than Economists Estimated
in June // Australia to Use European Stress Tests, Inflation as Rate Gauge
// Asian Stocks Gain on Outlook for China's Economy; Yen Weakens //
Hungary Debt Risk Soars, Forint Drops Most in Six Weeks as IMF Halts
Talks // U.K., Europe to Have Warmer Temperatures Than Average Next Month,
WSI Says // Cameron Raids Dormant U.K. Accounts as Minister Attacks Banks
// Most European Stocks Drop as Cable & Wireless Plunges; Mining Stocks
Rally // BP Authorized to Keep Well Shut Another 24 Hours as Leak Probed
// Bunning's Pitch to Curb Jobless Benefits Lures Converts Among Republicans
// Treasury Auction Bids Rise 18% to Record as Investors Surpass Bond Dealers
// Halliburton Profit Rises as Onshore Drilling Increases After Gulf Oil
Leak // Payrolls Fall in 27 U.S. States, Led by California // U.S. Housing
Starts Drop to Lowest Level Since October // U.S. Stocks Drop on Earnings
Reports
The Euro is now trading around 1/3 of 1% lower against the US Dollar, and
off session lows. NYMEX crud eis up over 7/10 of 1% and at $77.09/barrel.
Gold is up 2/3 of 1% and silver is up 4/10 of 1%. Base metals ended higher
on the day. Indicator charts show nickel opened higher, then fell as the
Euro fell, but as the Euro began to recover, nickel traders jumped in and
took nickel higher. Dow Jones reports three month nickel ended the day at
$8.66/lb. Stockpiles of nickel
stored in LME approved warehouses around the world slipped again overnight,
and now sit just over the 118,200 tonne level. After 3 inbound shipments
were recorded yesterday, 3X what we have seen since June 15, there were none
today. Sucden's day old chart shows rangebound nickel unable to break free
(chart here). The Baltic Dry Index is finally sending
a positive economic signal, gaining for the third consecutive day, and up
another 29 points. Nothing in the news to account for base metals trading
higher today. Dow Jones noted ""The rise was a bit of mystery to me because
the numbers (economic data) were bad," said a senior trader in London. "I
think it was just some contrarian investors sweeping the markets (higher).""
Whether closing up or down these days, nickel continues to trade within a
narrow band and appears to be rangebound, with the bulls limited by economic
concerns and the bears kept in check by falling inventories. .
Yuzhuralnickel
reduced net losses. - The IIQ net losses of Yuzhuralnickel (RAS) came to
211.5mln rub. which is 10% less prior year figures- 235.66mln rub., the company
informed. -
more
Steel Dynamics' Outlook
Grows Murkier - Steel Dynamics offered a murky view of the fragile U.S. economic
recovery when it reported second-quarter earnings that fell slightly below
analysts' expectations. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.02/lb
higher, off session
highs, with other base metals quiet and mixed. The Euro is trading 2/3 of
1% lower against the US Dollar, adding pressure to commodity trading. NYMEX
crude is off nearly 1/2 of 1% and trading at $76.18/barrel. Gold is off 1/3
of 1% and silver is down nearly 1/2 of 1%. In overnight trading, Asian markets
ended higher, with China up 2.2%. European markets are trading lower this
morning, and futures show Wall Street may open in a bearish mood. Nickel
inventories continued their slide overnight.
Edward Meir of MF Global Morning Comments - Metals ended mixed on Monday
in very quiet trading, following the lead of the US equity markets, which
stabilized a bit after Friday's drubbing. Equities held up despite a barrage
of earnings announcements from the likes of IBM, Texas Instruments, and Steel
Dynamics that all came in with numbers that fell somewhat short of estimates
in some categories. Later today, we get earnings reports from Goldman Sachs,
Bank of New York Mellon, and Apple. We do not have much to add from to what
we wrote in Monday's note. We suspect metals should continue to remain
range-bound in very quiet trading for the time being, as markets work through
earnings and a relatively light week on the US macro front. Later today,
we get June building permits and housing data (expected at 560,000 and 570,000,
respectively), but we are not expecting any major fireworks here given the
sluggish numbers we have seen in a number of related housing indicators.
On Monday, for example, the NAHB/Wells Fargo housing market index fell more
than expected in July to its lowest level since April 2009 after a popular
tax credit for homebuyers expired. .... We are $18,825 on nickel, up
$25, and very quiet, with a $200 trading range in place. (read Ed
Meir's complete morning base metals report
here)
(Yieh) The total output of crude stainless steel in Japanese seven main stainless
steel companies has been down to 303,000 tons in May, declining by 6.8 percent
from April.
(AMM) Brazil’s Vale SA has restarted labor talks at its operations in
Voisey’s Bay, Newfoundland and Labrador, even as the plant ramps up
to full capacity using non-striking unionized staff and replacement workers.
China dismisses IEA analysis of it being world's top energy user -
more
(SM) According to the American Forest & Paper Association's June 2010
U.S. Paperboard Report released today, total boxboard production increased
by 3.0% compared to June 2009, but 2.0% from last month. Year-to-date production
was up 4.1% over 2009.
June 2010 Crude
Steel Production - World crude steel production for the 66 countries reporting
to the World Steel Association was 119 million metric tons (mmt) in June.
This is 18% higher than June 2009. -
more
Because Of Curtailing
Stainless Steel Production, China Faces Turning Point For Ni-Contained Pig
Iron = Being Multiplied By Depressing Nickel Price At LME - The production
of nickel-contained pig iron in China was able to continue on a favorable
tone since the beginning of 2010 but is supposed to be moving to face a turning
point. -
more
Ramu NiCo upset
over court ruling - Ramu NiCo as manager of the Ramu Nickel Joint Venture
has expressed disappointment over the Supreme Court’s decision on Friday
to not to lift the injunction restraining the company from installing and
operating the deep sea tailing disposal facility. -
more
How will the Chinese fight back now? - Three months ago, following the court
injunction that stops the Chinese building a marine waste dumping system
for their Ramu nickel mine, we asked the question where do the Chinese go
next? -
more
Courtesy AISI - In
the week ending July 17, 2010, domestic raw steel production was 1,726,000
net tons while the capability utilization rate was 71.4 percent. Production
was 1,255,000 tons in the week ending July 17, 2009, while the capability
utilization then was 52.4 percent. The current week production represents
a 37.5 percent increase from the same period in the previous year. Production
for the week ending July 17, 2010 is up 0.2 percent from the previous week
ending July 10, 2010 when production was 1,722,000 tons and the rate of
capability utilization was 71.2 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) Wheat Prices Peaking as Two-Year Glut
Overwhelms Best-Performing Commodity // China Should Reduce U.S. Dollar-Reserve
Assets, Former Adviser Yu Writes // China Export Growth May Halve to 16%
on European Debt Crisis, Tax Changes // China's Stocks Advance Most in Week
on Housing Investment, Demand Outlook // Asian Stocks Slump Most in Two Weeks
on Growth Concerns; Aquarius Tumbles // Philips Declines After Forecasting
Revenue Growth Will Slow in Second Half // Hungary Debt Risk Soars, Forint
Drops Most in Six Weeks as IMF Halts Talks // Iceland Foreign Loan Ruling
Likely to Derail Bank Recovery, Fitch Warns // European Stocks Retreat for
Fourth Straight Day; BP, Electrolux Lead Drop // Bunning's Pitch to
Curb Jobless Benefits Lures Converts Among Republicans // Bombardier Says
World Economy Clouds CSeries Jet Order Outlook // New York City Is on Track
to Post Hottest July on Record as Heat Continues // U.S. Stocks Fluctuate
on Earnings Optimism, Homebuilder Report
The Euro is trading 1/5 of 1% higher against the US Dollar, and off session
highs. NYMEX crude oil is up 1/3 of 1% and trading at $76.27/barrel. Gold
is down nearly a full percent while silver is lower by 1.4%. Base metals
had another quiet day, most ending higher. Indicator charts show nickel started
the session higher, but took a sizeable dip mid-day that it was unable to
recover from. Dow Jones reports three month nickel ended the day at
$8.53/lb. Stockpiles of nickel
stored in LME approved warehouses fell again over the weekend with a large
outbound shipment from Europe measuring greater than two inbound shipments
recorded, both in Europe and Asia. We saw the first inbound shipment recorded
last week since June 15th, and the two shipments today, double last weeks
total. Totals now stand just over the 118,500 tonne level. Sucden's day old
chart shows nickel suffering a sell off Friday
(chart here). The Baltic Dry Index gained for a second
consecutive day, albeit weakly, adding another 12 points. In the week ahead,
128 of the S & P 500 report earnings, Federal Reserve Chairman Ben Bernanke
will testify before Congress about the economy, and Europe will release bank
stress test reports. For the most part, earning released in the US so far
have been strong, but Wall Street's bull run got knocked down Friday by a
dismal Consumer Confidence report. Today the National Association of Home
Builders threw a monkey wrench early when it reported "Builder confidence
in the market for newly built, single-family homes declined for a second
consecutive month in July to its lowest level since April of 2009, according
to the National Association of Home Builders/Wells Fargo Housing Market Index
(HMI) released today. The HMI fell two points from a downwardly revised number
in the previous month to 14 for July". Most of the morning's earning reports
have looked positive, however, and Wall Street is higher as we publish.
Calculated Risk - Goldman Sachs lowered their Q2 real annualized GDP growth
estimate to 2%, and put the odds of a technical double-dip recession at 25%-30%.
Companies Step Up Hiring Plans in Latest NABE Survey -
more
Number of the Week: Unemployment Extension Delay -
more
Let Inflation Run Wild? Some Say Bring It On -
more
No plan to curb
India iron ore exports now: Official - India has no plans to curb iron ore
exports, a senior government official said on Monday, easing concerns of
an imminent hike in export duty. -
more
What’s
going on right now in dry bulk shipping? - Is it true that this is the first
time dry bulk carriers have been taken out of the market since the start
of the global recession in late 2008? -
more
Does the new foreign trade record from China support shipping demand? - Strong
export figures from China prove that the global economy is out of the emergency
room and has been moved into the recovery room. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $.09/lb
lower, well off session
highs, and bouncing off the session low. Other London traded base metals
are trading mixed and quiet. The Euro is presently trading nearly 1/4 of
1% higher against the US Dollar. NYMEX crude is up over 4/10 of 1% and trading
at $76.34/barrel. Gold is trading lower by more than 4/10 of 1% and silver
is lower by 1/2 of 1%. In overnight trading, Asian markets ended mostly lower,
with China up over 2-1/2%. European markets are slightly higher this morning,
and US future show Wall Street could open to the positive side after a huge
sell off Friday. Nickel inventories fell.
Edward Meir of MF Global Morning Comments - Metals fell sharply on Friday,
with copper tumbling to its lowest level in about two weeks after a sell-off
in the US equity markets -- the steepest since May -- hit the complex. The
equity decline was surprising in that not only did a number of bank earnings
come in somewhat better than expected, but the markets also seemed to shrug
off the news that Goldman Sachs had at last settled with the government.
Instead, it seems sentiment soured once focus shifted to the significant
revenue misses by the banks, an indication that the lending part of their
business has yet to pick up. On the macro side, a plunge in the latest University
of Michigan survey to 11-month lows in June did not help matters much either,
and neither did a dip in the latest consumer price readings, which fell for
a third straight month and only reinforced perceptions of deflation. The
euro pulled back from a two-month high versus the dollar. ... We are
$18,780 on nickel, down $170, and very quiet, with a $250 trading range in
place for today. Charts continue to show little short-term direction and
more range trading likely to be in store for us. (read Ed Meir's complete
morning base metals report
here)
(Yieh) South Korea’s Posco has opened the second factory of POSCO-VHPC.
POSCO-VHPC will have 150,000 tons of production capability. On 24th, December
2009, Posco announced that they will build the second stainless steel processing
mill in Vietnam.
(Interfax) The Stainless Steel Council of China Special Steel Enterprise
Association (CSSC) announced on July 16 that construction work has begun
as part of Fujian Haihe Industry Co Ltd.'s 200,000-ton high nickel alloy
and 500,000-ton stainless steel project in Fuan City, Fujian Province.
(AP) A nickel smelting and processing plant will soon rise at Leyte Industrial
Estate (Lide), 47 kilometers west of this city. This was revealed by Lide
Management Corp. General Manager Engr. Amos Calda who said the plant will
produce pig-iron raw materials, an ingredient in the manufacture of stainless
steel.
(SO) On July 16, the US Department of Commerce (DOC) announced its decision
to postpone the deadline for its final determination in the 2008-2009 antidumping
(AD) duty review of stainless steel bar from India. The DOC said that the
review deadline has been extended by 45 days from July 13, 2010 to August
27, 2010.
(SM) The American Forest & Paper Association released its June 2010 U.
S.Containerboard Statistics Report today. For the eighth straight month,
containerboard production rose over last year. Total production saw an increase
of 47,100 tons or 1.7% over June 2009. Total production amounts decreased
compared to May 2010, however the average daily production was up 1.6%.
Year-to-date 2010 production has increased 10.6% over 2009. The containerboard
operating rate for June 2010 rose 6.0 points over June 2009 to 96.7%.
Severe overcapacity
in China's stainless steel industry - China's stainless steel industry is
facing severe overcapacity due to sluggish demand and lack of high-end product
manufacturers, the China Business Daily reported Monday. -
more
Billion dollar PNG
nickel mine project under threat after failed court bid - The management
of the huge Chinese financed Ramu nickel mine project in Madang Province
in Papua New Guinea say its viability is under threat. -
more
Copper and Nickel
ETFs: Higher Prices Soon? - If a wave of heists in which robbers steal the
metals in the United Kingdom is any indication, copper and nickel exchange
traded funds (ETFs) are becoming a hot commodity. -
more
Mining returns
to Ravensthorpe - The Western Australian community of Ravensthorpe has cautiously
welcomed the return of mining to the region. -
more
Miners ponder
return to ad war over tax - Mining companies left out of this month's tax
deal with the Government are considering a resumption of hostilities backed
by a new national advertising campaign. -
more
Courtesy AISI - The
American Iron and Steel Institute (AISI) reported today that for the month
of May 2010, U.S. steel mills shipped 7,345,455 net tons, a 4.1 percent increase
from the 7,057,660 net tons shipped in the previous month, April 2010, and
a 71.6 percent increase from the 4,281,986 net tons shipped in May 2009.
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 Interest-Rate Swaps Decline to
One-Year Low on Slower Growth Outlook // Williams Sees China as Next `Fallen
Angel' After Japan, Nasdaq // Most China Stocks Climb, Led by Moutai, Consumer
Companies; Zijin Declines // Thailand's Economy Shows `Resilience,' May Expand
8% This Year, IMF Says // Asian Stocks Retreat as U.S. Factory Output Falls,
Google Misses Estimates // Russia Eurobonds Rebounding to Profit After Worst
Slump on Global Recovery // RBS Said to Reserve Right to Take Action After
Goldman Settlement With SEC // Anglo American's Kumba Demands ArcelorMittal
Prepay for Ore as Talks Stall // BP Advances After Halting Oil Flow From
Gulf of Mexico Well for First Time // European Stocks Extend Losses
as U.S. Consumer Sentiment Misses Forecasts // Goldman Settlement `Victory'
Ushers Change to Wall Street // Toyota Educates Customers as Floor Mat Alert
Ignored // Confidence Slides, Heightening Risk of a Slowdown // Stocks Tumble
on Revenue Concerns, Weak Confidence
The Euro is now trading nearly 2/10 of 1% lower against the US Dollar. NYMEX
crude oil is down 1.2% and at $75.70/barrel. Gold is down 1-1/2% and silver
is lower by over 2-3/4%. Base metals got zapped by the economic news from
the US, and all ended the session in the red. Indicator charts show nickel
was struggling to keep its head above water early on, even with a stronger
Euro, but as US markets opened, everything seemed to head south. Dow Jones
reports three month nickel ended the day and week at
$8.60/lb, down for the day,
week and month, but slightly higher than this date six months ago, and a
full $1.37/lb higher than one year ago today. Stockpiles of nickel stored
in LME warehouses now stand just over the 119,000 tonne level after falling
again overnight. Sucden's day old chart shows LME trading thru yesterday
(chart here). After 35 consecutive losses the Baltic Dry
Index gained 20 points today. US markets were busy digesting numerous earnings
statements published this morning when it was reported consumer prices fell
for a third month. This sent the market lower, but was showing signs of
rebounding when the Reuters and the University of Michigan consumer confidence
index was published, falling to 66.5 in early July from 76 in late June.
This zapped any enthusiasm in the market and the Dow is currently down over
200 points. Ugly day, but we will stay encouraged by that 20 point gain in
the BDI and hope it sticks. Have a safe and relaxing weekend!!
Raids are increasing on farms and private food-supply clubs -
more
Short side of
commodity market becomes crowded -Every successful trade and correlation
contains the seeds of its own destruction. Imitators pile in and the trade
becomes crowded, competing away the gains. -
more
China steel almost
in the red as prices fall -CISA - China's massive steel sector, which has
begun cutting production in the face of falling prices and softening demand,
is nearing the break-even point, the China Iron & Steel Association (CISA)
said on Friday. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $.04/lb
in fairly quiet trading
so far, with other London traded base metals mixed but mostly higher. The
Euro is presently trading over 1/3 of 1% higher against the US Dollar. NYMEX
crude oil is up 1/10 of 1% and trading at $76.70/barrel. Gold is down
more than 1/2 of 1% and silver is 2/3 of 1% lower. In overnight trading,
Asian markets ended mostly lower, with China up nearly 3/10 of 1%. European
markets are currently trading lower, while US futures is digesting a lot
fo big earnings reports this morning, and is slightly higher at the moment.
Edward Meir of MF Global Morning Comments - Metals ended modestly lower yesterday
in quiet trading, as investors presumably sifted through a slew of economic
figures coming out of both China and the US, and likely concluded that there
was not much new to warrant a round of aggressive position taking in either
direction. We already discussed some of the Chinese numbers that came out
in Thursday's note, but out of the US, we had several more readings that
also made the case for slowing growth. In this regard, it was reported that
June industrial production rose yesterday, but the increase was a paltry
.1%, only slightly better than the unchanged reading forecast, and well off
the 1.3% gain seen in May. In addition, regional manufacturing gauges, such
as the New York Fed’s Empire State Index, fell to 5.1 in July, its lowest
level so far this year, while the Philadelphia Fed’s general economic
index dropped to 5.1 in July, its lowest since August of 2009. Other reports
showed initial jobless claims declining, reflecting a smaller number of factory
closings for this time of the year, but producer prices dropped more than
forecast, off .5% vs. the -.1% expected, reviving deflationary concerns in
the process. .... In term's of today's action, metals are mixed, and we do
not expect much to happen for the balance of the day given the lack of any
substantial macro news out of the US or elsewhere. Going somewhat unnoticed
this past week, is the surprising strength in the Euro, now just under $1.30,
and not too far off the levels we were at when the Euro crisis first erupted.
Having said that, its impressive recovery has noticeably failed to spark
any concerted buying in either metals or energy. It will be interesting to
watch what will happen next week when results of the so-called European stress
tests will be released. Out take is that most markets could rally modestly
heading into the date if investors get a sense that the tests are transparent
and credible, and that the problem loans uncovered are deemed manageable.
.... We are $19,286 on nickel, down $114, and very quiet. Charts show
little short-term direction. (read Ed Meir's complete morning base
metals report
here)
(Dow Jones) There are currently no positive impulses for nickel, says
Commerzbank, which adds that it is skeptical about Sumitomo Metal Mining's
predictions of a 40,000 metric ton supply deficit in 2010. It says growth
in China should slow down within the next months. "The first deficit since
2006 is not yet discernible. Quite the opposite is true.... "
(Interfax) China produced 398.68 million tons of steel products in the first
six months of 2010, up 26.1 percent year-on-year, according to figures released
by Shanghai-based Mysteel Information on July 16.
(WP) Baosteel is in talks with PT Aneka Tambang, an Indonesian nickel producer,
to build a ferronickel plant in the country, Xu said, without providing the
possible investment value. Dow Jones reported July 13 that the two partners
will sign a $1.2 billion agreement this month for the project.
(AP) A nickel smelting and processing plant will soon rise at Leyte Industrial
Estate (Lide), 47 kilometers west of this city. This was revealed by Lide
Management Corp. General Manager Engr. Amos Calda who said the plant will
produce pig-iron raw materials, an ingredient in the manufacture of stainless
steel.
(JMB) China's crude steel production in June/ Increases by 9% to over 53,770
thousand tons/ Declines month-on-month by 2,500 thousand tons
Nickel mining
company, Direct Nickel, has received an injection of capital from the CSIRO
Australian Growth Partnership (AGP) program to work with CSIRO’s Minerals
Down Under Flagship towards unlocking Australia’s nickel laterite reserves.
-
more
World Bank,
Ngos Spar Over Indonesian Mine Project - The World Bank's Board of Directors
said studies for a potential mining project in Indonesia could move forward
Tuesday but civil society groups, citing studies that have already been done,
condemned the decision. -
more
Surigao del
Sur town denies permit to mining firm - Mayor Genito Guardo has denied the
application of a mining company to extract nickel ore from this town, citing
the need to protect the environment from possible destruction. -
more
Rusal Says Norilsk
Refuses to Provide Voting Papers - United Co. Rusal, a shareholder in OAO
GMK Norilsk Nickel, said the management of the nickel company violated Russian
federal law by refusing to provide it with voting papers from a June 28 annual
general 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 Bill Yield Declines for First
Time in Six Weeks After Growth Slows // Foreign Investment in China Rises
to Highest Level in More Than Two Years // China Economic Growth Slows
After Credit Cuts // China Stocks Fall Most in 2 Weeks as Growth Slows;
Agricultural Bank Gains // Philippines Keeps Main Interest Rate at Record-Low
4% as Inflation Slows // Asian Stocks Drop as Fed Cuts Forecast, Retail Sales
Fall // Russian Banks Cut Bond Holdings for First Time Since 2008 to Fund
Lending // European Banks May Need $109 Billion in Capital After Tests,
Barclays Says // Euro Rises as Spain Sale Attracts Greater Demand; Yen Gains,
Aussie Falls //European Stocks Drop Most in Two Weeks; Rio Tinto, Gartmore
Lead Retreat // JPMorgan Profit Rises, Beating Estimates // Dollar Declines
to Two-Month Low Versus Euro as Manufacturing Growth Slows // Boeing Says
First 787 Delivery Could Move Into 2011 // U.S. Manufacturing Contracts,
Wholesale Prices Decline //
The Euro is currently trading more than 1% higher against the US Dollar.
NYMEX crude futures are down more than 1/2% and trading at $75.82/barrel.
Gold is trading slightly higher, while silver is up over a third of a percent.
For the most part base metals ended where they started, teh strengthening
Euro unable to offset slowing reports from US and China. Indicator charts
show nickel was choppy within about a $350 range, starting higher, falling
lower, then climbing back. Dow Jones reports three month nickel ended the
day at $8.80/lb, only $5/tonne higher
than yesterday's close. Stockpiles of nickel stored in LME warehouses fell
yet again overnight, and now total just over 119,500 tonnes total. This puts
the total inventory numbers about where they were last September 30th. Sucden's
day old chart shows LME trading of nickel thru yesterday
(chart here). The Baltic Dry Index's drop slowed overnight,
and only fell 9 points to read 1,700. One of the the three sub-indexes, the
Panamax Index read positive, while the Cape and Supramax Index were down
slightly. This implies we could finally see the end of the long drop, or
it could mean no more than another head fake. China reported a GDP
slightly lower than expected, but still at a number that makes the rest of
the world green with envy. They also reported their output of nickel in JUne
was at 17,799 metric tonnes, which is 2.9% higher than May, and 16.1% higher
than June of last year. Overall, nickel output is up 17.4% on the year over
last. This implies the production of pig nickel for the month was higher
than some had forecast. US reports were equally less than encouraging with
three separate reports published by the Fed showing manufacturing is slowing
down. Wall Street is not happy with the results and is lower at the moment.
(MB) Chinese daily nickel output unexpectedly rose 6% in June
(MW) Manufacturing activity grew in the New York region in July, but at a
much weaker pace than in June, according to the Empire state survey released
Thursday by the New York Federal Reserve Bank. The Empire state index fell
to 5.1 in July from 19.6 in June. Readings over zero indicate growth, with
higher numbers indicating more firms were growing.
Inland Empire: Increased Activity at Warehouses From Ports -
more
IFM sees no
fall in ferrochrome Q4 contracts price - An end to de-stocking coupled with
rising demand will ensure ferrochrome contract prices do not fall below current
levels for the fourth quarter, South African producer International Ferro
Metals (IFM) said on Thursday. -
more
URSA Major Minerals
Incorporated is pleased to announce that the Shakespeare Nickel Mine has
achieved the full budgeted output and grade since resuming operations in
June. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading flat
and off session highs,
with other base metals mixed and quiet. The Euro is over 2/3 of 1% higher
against the US Dollar, which typically gives a boost to commodities but the
mixed Chinese data is offsettign any push. NYMEX crude oil is up 2/10 of
1% and at $77.20/barrel. Gold is trading 1/2 of 1% higher, while silver is
over 3/4 of 1% higher. In overnight trading, Asian markets ended lower, with
China off 1.7% after reports show China's growth is slowing. European markets
are trading higher this morning, and US futures show Wall Street should open
higher. Nickel inventories fell overnight.
Edward Meir of MF Global Morning Comments - Metals finished with modest losses
in Wednesday's session in very quiet trading, tracking a slight fade in the
US equity markets that set in after the Federal Reserve's June minutes were
released. The minutes revealed that the Fed is now calling for growth to
fall between 3-3.5% this year, down from earlier forecasts of 3.2%-3.7%,
and bringing its numbers closer in line with private forecasts. The Fed governors
also expect little change in the stubbornly high unemployment rate for the
balance of the year, prompting some members to suggest that the central bank
should be ready to consider additional steps to boost the economy if the
outlook takes a turn for the worse. However, with rates pretty much close
to zero already, it does not leave the Fed with too many options in this
regard. June retail sales also came in worse than expected; sales decreased
by 0.5%, slightly worse than the -0.2% rate forecast, but better than May's
-1.1% drop. However, the core reading -- which excludes the highly volatile
motor vehicle, building materials, and gasoline station sales -- rose 0.2%
in June after falling 0.2% in May. Furthermore, some of the overall sales
decline may have been the result of price decreases (as opposed to quantity
of sales) for things like gasoline, where prices fell by 3.6% in June. In
term's of today's action, markets were eagerly awaiting GDP and other macro
results out of China overnight, but judging from an unchanged metals session
in Shanghai, and generally mixed readings we are seeing in metals right now,
we have to conclude that the numbers contained no major surprises. In this
regard, the Chinese said growth eased to 10.3% in the second quarter from
11.9% in the first, and that industrial production also grew less than forecast
in June, rising to 13.7%, lower than all but one of 27 forecasts in a Bloomberg
survey. The slight leveling off in the growth trajectory could signal a
diminished risk of overheating, and is leading to talk that the government
could loosen quotas on lending. However, with inflation likely to push higher
in light of recently announced wage increases, we think the government will
make few changes to its current policy, allowing the economy too cool off
somewhat further. The implications for metals is that we may not see
substantially higher prices in the months ahead, but by the same token, a
collapse to fresh lows is also unlikely. ... We are $19,380 on nickel, down
$20, and very quiet. (read Ed Meir's complete morning base metals
report
here)
(Yieh) t is reported that China has announced to cut the production of nickel
pig iron due to stagnant nickel price. Meanwhile, Chinese stainless steel
producers will set the equipment maintenance during this period. According
to some of speculators, the production capacity of nickel pig iron is about
180,000 tons in May, down by 6 percent from April. Meanwhile, the total
production of nickel-based pig iron is expected to reach about 80,000 tons
in the first half of 2010.
(TEX) The designed annual capacity at the Doniambo refinery in New Caledonia
is able to produce 65,000 tons of nickel in ferro-nickel at present but Eramet
is scheduled to expand this capacity in the near future. The Doniambo refinery
has planned to produce 55,500 tons of nickel in ferro-nickel in 2010 but
is scheduled to increase the output to 60,000 tons in 2012 and 65,000 tons
in 2014 respectively.
(DJ) Goldman raised its 12-month forecast for nickel by 167% to $20,000/ton.
Rising demand will more than offset the resumption of nickel production at
Vale SA's Ontario operations, where a one-year strike ended last week, it
said.
(AMM) Nickel premiums softened this week due to seasonal factors, but have
not yet been impacted significantly by the end of the Vale strike in Ontario,
market participants told AMM.
(BBC) Chinese nickel project in Papua New Guinea said losing millions daily
(Interfax) China's daily crude steel output reached an average of 1.79 million
tons in June, down 1.1 percent month-on-month, according to a July 15 National
Bureau of Statistics (NBS) report.
(SSY) German steel production fell by 5% from the 23-month high of 4.1 Mt
last month to 3.86 Mt in June, which also represents a 54% increase year-on-year,
according to the German Steel Federation. Steel output in the first half
of this year reached 23.33 Mt, a remarkable 9.5 Mt above the year-ago level.
The Freight Transportation Services Index (TSI) fell 0.4 percent in May from
its April level, declining after two consecutive monthly increases, the U.S.
Department of Transportation's Bureau of Transportation Statistics (BTS)
reported today (Table 1). -
more
Merafe sees
return to profit in first-half - South African ferrochrome producer Merafe
Resources said on Thursday it expects to report a return to black for the
six months to the end of June after it boosted production on the back of
rising demand. -
more
China's June crude
steel output up 9pct on year - China's crude steel output rose 9 per cent
to 53.77 million tonnes in June from a year earlier, but fell 4.2 per cent
on the month after hitting an all-time high in May, the National Bureau of
Statistics said on Thursday. -
more
PNG Landowners Somare
Offered Bribe To Drop Case - The Prime Minister Sir Michael Somare is
alleged to have offered a substantial amount of money to have disgruntled
landowners drop their court challenge which has stopped development of the
deep sea tailing placement project in Basamuk by Ramu NiCo Limited (MCC).
-
more
The following table
lists China’s production of copper and other non-ferrous metals in June
and in the first six months of the year. -
more
Province seeks
mining \’Ring\’ master - The province is still trying to find a
senior bureaucrat to oversee the government‘s role in the big Ring of
Fire chromite project north of Thunder Bay, even though the Cleveland-based
iron-ore giant likely to build the mine appears to be going full-steam ahead
without any help.
-
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) Thailand Raises Interest Rate for First
Time Since 2008 as Risks Subside // China Loans Are `Distorted,' 28% Higher
Than Official Numbers, Fitch Says // Oil Imports Dropping From Record as
China Curbs Refining: Energy Markets // Hebei Iron & Steel Expects First-Half
Net Income to Increase Much as 737% // Asian Stocks Advance; Samsung Climbs
on Intel's Record Revenue // Euro Declines Versus Yen on Evidence of Slowing
Growth, Spain's Borrowing // Ex-IKB CEO Convicted of Misleading Investors
About Bank's Subprime Risks // European Inflation Slows, Industrial Output
Advances Less Than Forecast // Euro Rises to Two-Month High Versus Dollar
as U.S. Equities Erase Losses // Treasury Yield at Highest in Two Weeks After
Intel Reports Record Sales // Intel Tops Analysts' Estimates, Says Recovery
Has Legs // California May Cut Pay, Illinois Holds Bills to Bar Downgrades
// Americans in 70% Majority See More Jobless as Deficit Widens // Sales
at U.S. Retailers Fell for a Second Month in June // U.S. Stocks Advance
as Intel Helps S&P 500 Extend 7-Day Rally //
The Euro is currently trading nearly 1/4 of 1% higher against the US Dollar,
erasing earlier losses. NYMEX crude oil is trading 3/4 of 1% higher and at
$77.73/barrel. Gold is down more than 1/2 of 1% and silver is trading flat.
Base metals ended the session mixed, with not much change on the day for
most. Indicator charts show nickel started off strong, then slowly collapsed
thru much of the session, the stronger Euro offering no help. Dow Jones reports
three month nickel ended the day at $8.80/lb
. Inventories
of nickel stored worldwide in LME approved warehouses fell again overnight,
and now sit just under the 119,800 tonne level. We did note a 270 tonne shipment
arriving into a Korean warehouse, the first in nearly a month. Dow Jones
reported the theft of several hundred metric tonnes of nickel and copper
from a Henry & Bath warehouse in Liverpool. We should hear more on this
in the coming days. Sucden's day old chart shows nickel trading on the LME
exchange thru yesterday
(chart here). The Baltic Dry Index will not let
up in its descent, down another 81 points today to 1,709. We get some important
Chinese trade report numbers overnight, which could give the base metals
market some direction. Traders appear to be nervous and looking for some
positive numbers to negate all the double dip talk. It could be worse. Anyone
with access to the internet these days can claim their five minutes and now
the BP Gulf disaster, could mean the end of the world according to one writer
(more). Makes us
wonder if that $20 billion dollars BP set aside would cover end of the world
claims?
(Fairfax) High-carbon ferrochrome prices have fallen below the $1.30/lb level,
with the Platts price for 60-65% being set on July 7 at $1.25-1.28/lb FOB.
Global stainless steel destocking will mean that uncertainty over where stocks
will end up will reduce purchasing demand as buyers do not want to end up
with excessive stock. .... Nickel - Supply disruptions from resolved labour
disputes and continued demand from China is expected to lead to a widening
deficit. World demand is estimated to exceed supply by 40,000 tons this year.
The price of Nickel has fallen 28% to $19,550/t after touching a two year
high in April. Output in China, the biggest user may increase 7% while
consumption may advance 13%.
(SC) This year continues to “shape up well” for Rio Tinto, though
the mining heavyweight today warned investors to expect further volatility
in commodity prices on fears of a double-dip recession and concerns about
Chinese demand. In a second quarter update, chief executive Tom Albanese
said operations are close to capacity and markets for most products are strong
and the overall long term demand outlook is positive.
Wall Street Fix Seen Ineffectual by Four of Five in U.S. -
more
Norilsk expects lower
Q3 metals demand - Russia's Norilsk Nickel, the world's biggest producer
of nickel and palladium, expects demand for its metals to fall in the third
quarter after a strong first half, but prospects for next year are still
hazy. -
more
Cunico to raise
nickel output to 32,000 T in 2011 - Mining and metal processing company Cunico
Resources plans to raise output to around 32,000 tonnes of nickel in ferro-nickel
at its two Balkan plants next year, company officials in Macedonia and Kosovo
said. -
more
Xstrata Shifts Focus
from M&A to Project Execution - We're paring our fair value estimate
on expectations Australia's mining tax will be implemented as presently conceived
-
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
higher, with other
London traded base metals mostly slightly higher. The Euro is trading nearly
2/10 of 1% lower against the US Dollar at the moment. NYMEX crude oil is
down 3/4 of 1% and at $76.58/barrel. Gold is down 4/10 of 1% and silver is
off by nearly 8/10 of 1%. In overnight trading, Asian markets ended higher,
with China up 7/10 of 1%. European markets are trading lower this morning,
while US futures show Wall Street could open higher. Nickel inventories continued
to fall overnight.
Edward Meir of MF Global Morning Comments - Metals ended higher on Tuesday,
but the gains were not as impressive as the surge we saw in both the US equity
markets and energy. Even the dollar, which weakened against the Euro to trade
just under $1.27 at one point during the day, failed to spark metals that
much. The generally firmer tone in the US stock market was attributable to
a spate of solid US corporate earnings reports. We already wrote about the
better-than-expected Alcoa and CSX numbers in yesterday's note, but this
was soon followed by Intel's blowout numbers posted after the close of trading
on Tuesday. The stock is up almost 7% in pre-market trading, and has boosted
Asian and European equity markets, thus insuring another likely higher opening
today here in the US. Metals are up slightly as of this writing, but just
like yesterday, the gains are fairly modest. This tells us that the markets
are still a little on edge after the release of the Chinese trade data out
earlier in the week. Funds may also be keeping their powder dry ahead of
the Chinese second quarter GDP and industrial production numbers that come
out later in the week. However, our inclination is not to get too short in
metals for the balance of the week, as we would not want to fight the headwinds
of a stronger US equity market and a possible surprise in the Chinese data.
(Incidentally, we have outlined our medium term thoughts on the metals group
and the general macro in the monthly recap on commodities report sent out
to readers yesterday). .... We are $19,700 on nickel, up $150, and
quiet. (read Ed Meir's complete morning base metals report
here)
(Dow Jones) The theft of several hundred metric tons of nickel and copper
from a warehouse in the U.K.'s north west will end up being an expensive
crime for a couple of metals brokers, because they weren't insured against
the burglary, persons familiar with the matter told Dow Jones Newswires.....
The burglary, which took place May 31, was from a shed in Liverpool's Huskisson
Dock owned by warehousing company Henry Bath & Son. Each ton of nickel--used
to make steel and worth around $21,000/ton when it was stolen--would have
cost just $14-$16 a year to insure.
(Dow Jones) Nickel and gold producer PT Aneka Tambang and Shanghai Baosteel
Group Corp. will soon sign a $1.2 billion agreement to develop a ferronickel
plant in Kalimantan, an official with Indonesia's state agency for investment
told reporters Wednesday.
US Imports of Steel Mill Products FOR All Stainless Products -
more
URSA Major Minerals Achieves Full Budgeted Nickel/Copper Ore Production and
Grade at Its Shakespeare Nickel Mine in Sudbury Area, Ontario -
more
(CCR) China's June power use rose 14.14 percent from a year ago, the government
said on Jul 14, the second-slowest monthly growth rate this year as Beijing
moved to clamp down on power-guzzling heavy industries.
Nickel Supply
Deficit Seen Greater Than Expected This Year, Sumitomo Says - The nickel
market may swing into a greater deficit than expected this year because of
supply disruptions and greater Chinese demand, which could boost prices,
said Sumitomo Metal Mining Co., the biggest producer in Japan. -
more
First Quantum
Hiring Workers for Australia’s Ravensthorpe Mine - First Quantum Minerals
Ltd., the Canadian mining company that bought BHP Billiton Ltd.’s failed
West Australian nickel mine, is hiring 600 workers and plans to restart the
operation ahead of schedule. -
more
US high-carbon ferrochrome
prices may have reached a floor - US high-carbon ferrochrome prices may have
found a floor for now, having eased in recent weeks, although little spot
market or longer-term activity is expected to occur during the summer months
until consumers start buying requirements for the fourth quarter, market
participants said Tuesday. -
more
No respite from
Chinese uncertainty: Rio Tinto - Rio Tinto says it sees no respite from
uncertainty about Europe and China that has been buffeting global markets
recently but, as always, remains optimistic about the long-term outlook for
commodities. -
more
Hyundai Corp.
/ S. Korea Acquires 2% Interest In Ambatovy Nickel Project / Madagascar =
Through KORES / South Korea, Prime Bidder For Indirect Acquisition - It was
known that Hyundai Corporation of South Korea has acquired through Korea
Resources Corporation (KORES) the right for prime bidder, enabling to obtain
2% interest in the Ambatovy nickel project in Madagascar. This is one of
the arrangements to relate with natural resources adopted by the Korea
Government.
- more
EU screw makers
suspend Malaysia, India complaints - European fastener producers have dropped
complaints that rivals in India and Malaysia are receiving illegal state
aid and dumping screws and bolts in the European Union, but said they could
file new allegations. -
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) Posco Plans to Raise $1.7 Billion After
Profit Almost Triples on Prices // Philippine Exports Climbed at Faster Pace
in May, Boosting Economic Growth // Asian Stocks Fall as China Reiterates
Policies to Curb Property Prices // Greek Banks Drive Bill Rates Below EU
Loans in Post-Crisis Sale // BMW Raises Sales, Earnings Forecast as Global
Automobile Market Recovers // IEA Forecasts World Crude Oil Demand Growth
Will Slow to 1.6% Next Year // German Investor Confidence Drops for Third
Month as Bank Stress Tests Loom // Dollar Falls to Two-Month Low as Corporate
View, Greek Debt Sale Buoy Risk // European Stocks Rise for Sixth Day as
BP Surges // Alcoa Profit Surprise Bodes Well for Economy, Stocks // States
Show First Revenue Growth Since 2008, Rockefeller Institute Reports // U.S.
Regulatory Bill Nears Passage With Republican Support // Import Surge Points
to Acceleration in U.S. Spending, Morgan Stanley Says // Americans Are More
Optimistic About Economy Than Own Finances, Survey Says // George Steinbrenner,
Yankees' Win-or-Else Boss, Dies //
The Euro is presently trading over 9/10 of 1% higher against the US Dollar,
seeing a big rebound today. NYMEX crude oil is up 2-3/4% and at $77.00/barrel.
Gold - up nearly 1-1/2%. Silver - up over 2.1%. Base metals - all ending
higher. Indicator charts show nickel was slightly higher when the Dollar
began to drop, and this helped it move higher. Considering the jump in the
Euro and equities today, nickel's increase looked rather unimpressive. Dow
Jones reports three month nickel ended the day at
$8.87/lb. Stockpiles of
nickel stored in LME warehouses fell again overnight, and now sit just under
the 120,000 tonne level. The total has fallen nearly 28% from the Feb 5th
all time record high of 166,386 tonnes. We have not documented a single inbound
shipment since June 15th. Sucden's day old chart shows nickel trading thru
yesterday
(chart here). Today's session began with Stochastic and
Relative Strength Index numbers showing the market was in oversold territory.
The Baltic Dry Index continues to fall, down another 50 points today, and
its 33rd consecutive daily drop. Equity markets are higher on higher
earning reports and commodities await important Chinese data out Thursday.
(Dow Jones) U.S. nickel exports fell 45.8% in May from the previous month,
but was up 128.9% from the previous year, the Commerce Department reported
Tuesday.
(Dow Jones) Russian polar miner OAO Norilsk Nickel's First Deputy General
Director Valeriy Matvienko has tendered his resignation, the company's
spokeswoman told Dow Jones Newswires Tuesday.
(Yesterday) Portugal’s government bond ratings were cut to A1 from Aa2
at Moody’s Investors Service today.
(PR) The Consumer Reports Trouble Tracker Index has shown a decline this
month, pointing to fewer troubles for consumers, dropping to 57.6 in July
from 63.5 in June. The most notable improvement was in the proportion of
Americans that missed a mortgage payment, down to 2.4% from 3.9% the prior
month.
(MW) Consumption of diesel fuel by U.S. trucking companies dropped sharply
during June after having risen in May, but analysts said this reflected a
decline usually seen around the Memorial Day holiday. The Ceridian-UCLA pulse
of commerce index fell 1.9% in June, a reversal from May's 3.1% increase.
The index is designed to measure the daily consumption of diesel by shipping
companies.
China to shut steel
mills with capacity below 1 mln T - China plans to step up consolidation
of its steel sector this year by closing small mills and improving production
standards, the Ministry of Industry and Information Technology said on Tuesday.
-
more
Independent
review points to Weda Bay Nickel plans as cause for major concern - Global
civil society rallies against MIGA endorsement for an Indonesian nickel mine
project due to substantial social and environmental concerns. -
more
Baltic index
hits fresh low, China slowdown bites - The Baltic Exchange's main sea freight
index .BADI, which tracks rates to ship dry commodities, fell to its lowest
level in over 14 months again on Monday as weak Chinese demand put the brakes
on cargo activity. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.06/lb
higher with other base
metals trading mixed and quiet. The Euro is currently trading 2/10 of 1%
lower against the US Dollar. NYMEX crude oil is up 1.2% and trading
at $75.84/barrel. Gold is up more than 1.1% and silver is over 1.2$ higher.
In overnight trading, Asian markets ended lower, with China off more than
1-1/2%. European markets are trading higher this morning, and US futures
show Wall Street likes what it sees so far in earnings reports. Nickel
inventories fell overnight.
Fraud and corruption in mining and metals -
pdf here
Commodity/Economic Comments
Edward Meir of MF Global Morning Comments - Copper ended lower on Monday,
snapping a five-day winning streak and dragging the rest of the group lower,
as the complex never managed to shrug off uninspiring Chinese import data
released earlier in the day. A modest upside reversal in the US equity markets
failed to reverse the declines, and a firmer dollar did not help matters
much either. As we wrote in Monday’s note, most of the focus was on
the 17% decline in June’s unwrought copper import levels, with expectations
calling for a 5-7% increase. Leaving less of an impression, was the fact
that year-to-date import levels were practically unchanged from last year's
blistering pace, while scrap imports also ticked higher. We also think that
with investors aware of the fact that copper stock levels are falling on
both the LME and in Shanghai, heavier selling pressure was fended off. Right
now, we are looking at slightly lower markets once again, but prices are
off their worst levels of the day. Energy prices are up slightly, while the
dollar is holding steady at just under $1.26. The US equity markets are looking
to open higher, likely teeing off on the fact that Alcoa’s earnings
numbers came in better than expected. The company reported late yesterday
that revenues were up 22%, this despite lower aluminum prices. Additionally,
the company’s CEO raised demand readings for both this year and next,
and sees average consumption growth of 6% over the next 10 years. The
company’s stock is up some 3% in pre-market trading. In another good
earnings report, also from the manufacturing side, US railroad CSX Corp posted
a 36% rise in second-quarter profit, citing sharp jumps in shipments of cars
and metals. There are no macro releases out of the US today, although
out of Europe, the German ZEW institute's July headline index came in lower
than expected. In addition, Moody's downgraded the sovereign debt rating
of Portugal by two notches, but this does not seem to be stirring the same
degree of turmoil we had seen in the wake of prior downgrades. Looking further
forward, a major pivot point in most markets will be the upcoming Europeans
stress test results slated for July 23rd. EU regulators are examining the
strength of 91 banks to determine if they can survive potential losses in
an attempt to reassure investors about the health of financial institutions.
For what its worth, equity markets rallied here in the US when stress tests
were being carried out by the Treasury last year, so this should be an
interesting lead-up period to when the actual results are announced. ...
We are $19,349 on nickel, up $150, and not doing very much.
(read Ed Meir's complete morning base metals report
here)
(Yieh) South Korean POSCO has decreased domestic price of 300 series long
products for July. Currently Posco's price of 300 series wire rod has fell
by 180,000 won/ton. In addition, 300 series round bar price has also dropped
by 200,000 won/ton
(Reuters) China Steel, Taiwan's top steel maker, will cut domestic prices
by an average of about 4 percent for September over July-August because of
reduced demand for home construction materials in China, a company executive
said on Tuesday.
(CD) China's steel output in 2010 might hit a new high of 620 to 630 million
tons, a 10 percent increase year-on-year, Minister of Industry and Information
Technology Li Yizhong forecast at a forum Monday. -
more
(DJ) LME: Delisted Inco Nickel Pellets Brand
(MDM) May U.S. manufacturing technology consumption totaled $178.34 million,
according to the American Machine Tool Distributors’ Association and
the Association For Manufacturing Technology. This total, as reported by
companies participating in the USMTC program, was down 22.9% from April but
up 58.6% from the total of $112.42 million reported for May 2009. With a
year-to-date total of $966.63 million, 2010 is up 52.9% compared with 2009.
(AT) Effective with shipments beginning September 1, 2010, a surcharge of
$458 per ton ($22.90/cwt) is being added to grain-oriented electrical steel
invoices. This surcharge is subject to monthly adjustment.
The Ceridian-UCLA Pulse of Commerce Index™ (PCI) by UCLA Anderson School
of Management, adjusted for season and for monthly workdays, fell 1.9% in
June, taking away two-thirds of May’s 3.1% gain. This release comes
in the midst of a string of other disappointing releases that have raised
concerns about future growth and ignited fears of a double-dip recession.
- pdf here
Minara Nickel
Output Drops 15% After Pipeline Failure at Australian Plant - Minara Resources
Ltd., Australia’s second-largest nickel producer, reported second-quarter
production dropped 15 percent after a pipeline failure at the Murrin Murrin
plant in Western Australia -
more
Japan's Exports
Of Stainless Steel Products In May 2010 Increased To 120,000 Tons = Exports
For China Decreased But Shipments To Taiwan, South Korea And Thailand Increased
- Japan Iron and Steel Federation compiled the data on exports of stainless
steel products from Japan in May of 2010 on the basis of the statistics released
by the Ministry of Finance and the contents were as per the table attached
hereto. -
more
PM leads talk on
nickel project settlement - There is every likelihood that an out-of-court
settlement will be reached on the current court case which has stopped the
development of the deep sea tailings placement (DSTP) project in Basamuk
Bay, Madang, by Ramu NiCo. -
more
Baoshan Steel Cuts
Prices for a Second Month as Automobile Demand Weakens - Baoshan Iron &
Steel Co., the biggest publicly traded Chinese steelmaker, cut prices for
a second month amid weakening demand from makers of automobiles and appliances.
-
more
Wuhan, Anshan Steel to Shut Plants for Maintenance on Prices, UC361 Says
- Wuhan Iron & Steel Group, China’s third-biggest steelmaker, and
Anshan Iron & Steel Group may carry out plant maintenance this month
after prices dropped, researcher UC361.com said. -
more
POSCO: net
profit almost tripled in second quarter - South Korea's top steelmaker POSCO
said Tuesday its second-quarter net profit had almost tripled to 1.19 trillion
won (981 million dollars) due to price rises and growing demand as the world
economy improved. -
more
POSCO warns H2 profit to fall as steel prices crumble - POSCO, the world's
No.3 steelmaker, warned its second-half profit would fall by 30 percent after
posting its second-best ever quarterly profit on Tuesday, as steel prices
crumble on weak Chinese demand. -
more
Courtesy AISI - In
the week ending July 10, 2010, domestic raw steel production was 1,722,000
net tons while the capability utilization rate was 71.2 percent. Production
was 1,254,000 tons in the week ending July 10, 2009, while the capability
utilization then was 52.4 percent. The current week production represents
a 37.4 percent increase from the same period in the previous year. Production
for the week ending July 10, 2010 is down 1.8 percent from the previous week
ending July 3, 2010 when production was 1,752,000 tons and the rate of capability
utilization was 72.4 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) Uranium Bottoming as China Boosts
Stockpiles // Yuan Forwards Strengthen After China's Record June Exports
Signal Recovery // Volkswagen's First-Half China Sales Rise 46% After Introducing
New Models // China Wins Higher Debt Rating Than U.S. in First Report by
Chinese Company // China Inflation Threat May Recede on Slower Loan Growth,
Property Prices // Most Asian Stocks Decline After Japanese Election; Mining
Shares Advance // Polanski Won't Be Extradited From Switzerland to U.S. //
Russia to Boost Debt Sales, Considers Eurobond After Falling Behind Target
// Greek Woes Make Italy Yields Irresistible to Baring as Pimco Shuns Europe
// UK Economy Grew 0.3% in First Quarter on Services; Current Account Gap
Widens // EU Under Pressure to Spell Out Stress Tests // European Stocks
Gain for Fifth Day as BP Rallies; Zodiac Aerospace Rises // Alcoa Earnings
Won't Recover for Years, Analysts Say // Treasury Yields Near Two-Week High
as Easing Europe Concerns Damp Demand // Bank Swaps Show Reduced Stress-Test
Fears as Bonds Rally: Credit Markets // Bernanke Says `Creditworthy' Small
Businesses Can't Get Loans // U.S. Stocks Fluctuate Before Alcoa Starts Earnings
Season
The Euro continues to trade lower against the US Dollar, currently
trading more than 4/10 of 1% lower. NYMEX crude oil is down nearly 1.1% and
at $75.27/barrel. Gold is down 1.1% and silver is lower by 1-1/3%. Base metals
ended lower in thin trading, as traders digested Chinese reports. INdicator
charts show was lower but fairly docile until late in the afternoon, when
it took a noticeable dip and was unable to recover much of the lost ground
buy closing. Dow Jones reports three month nickel ended the day at
$8.71/lb. Inventories of nickel
stockpiled in LME approved warehouses fell over the weekend, and now sit
just over the 120,200 tonne level. Sucden's day old chart shows nickel trading
thru last week
(chart here). The Baltic Dry Index continues to fall,
down another 62 points. Markets are coming off a big week and traders will
be watching earnings and government reports closely for direction.
(MW) India's industrial output expanded 11.5% in May from the same month
a year earlier, slowing sharply from April's revised growth of 16.5%, according
to official figures released Monday.
7 Equities Likely to Be Impacted as Steel's Decline Continues -
more
Number of the Week: Euro Zone Debt Is Coming Due -
more
Fed’s Lacker: Economy Is Recovering Despite Weak Data -
more
China shrugs off global fears with export strength -
more
Asia steelmakers'
profits face China slowing threat - China's tightening and a new pricing
scheme for raw materials could lead to Asian steel companies' earnings peaking
this quarter and weakening thereafter. -
more
Geovic says
may start Cameroon cobalt mine in 2010 - Canada-listed Geovic Mining may
launch its Nkamouna cobalt, nickel and manganese project in Cameroon as early
as this year, the firm said on Monday, accelerating a timetable that had
been delayed until 2012. -
more
China’s tax
may hit profits of Asian steel majors - China's tightening and a new pricing
scheme for raw materials could hit Asian steel companies which are already
reeling under pressure to recover from last year's recessionary trends. -
more
Afghan mineral
bonanza is bogus - There's a great deal of chatter in the press and online
about the tremendous US$1-trillion-dollar mineral "discovery" in Afghanistan
headlined by The New York Times recently. -
more
Rural metal thefts
up in Central Valley - After a significant lull in metal theft following
passage of statewide legislation to deter it, rural crime detectives report
that theft of metal and copper wire is on the rise again. -
more
Russia's TMK sees
Q2 EBITDA up, pipe demand strong - TMK, Russia's largest producer of steel
pipes for the oil and gas sector, said on Monday second-quarter core earnings
would be slightly above first-quarter levels thanks to strong market conditions.
-
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.11/lb
lower, with all London
traded base metals lower this morning. The Euro is trading nearly 1/2 of
1% lower against the US Dollar at the moment. NYMEX crude oil is down 1/3
of 1% and trading at $75.85/barrel. Gold is down 3/4 of 1% and silver
is off over 1%. In overnight trading, Asian markets ended flat, with China
up 1%. European markets are slightly higher this morning, and US futures
show Wall Street may open slightly lower. Nickel inventories continue to
fall.
Edward Meir of MF Global Morning Comments - Copper prices rallied to their
highest level in nearly two weeks on Friday, feeding off the stronger tone
seen in the US equity market, which had its best weekly showing in about
a year. Prices were also bid up ahead of the Chinese import data released
over the weekend. As it turned out, the numbers were somewhat of a disappointment
for the bulls. Imports of unwrought copper fell 17.3% from May levels, coming
in the opposite of expectations calling for an increase, although copper
scrap imports were up 7% on the month, and may blunted the negative impact
of the unwrought decline. There was a 21% decline in aluminum imports, but
a much more modest drop (-4.5%) in aluminum scrap imports. Alumina imports
were down sharply, off some 70% from a month ago, and down 73% year-to-date.
Iron ore imports also were down, but surprisingly, crude oil imports hit
a record high, suggesting that we are at least not in complete slowdown mode.
The numbers are tabulated in our attachment, with more precise breakdowns
coming out later in the month. The trade numbers did trigger a modest sell-off
in metals in early Asian trading, and these losses have built somewhat as
we head into the US session. In addition to the slowing growth concerns conveyed
by the numbers, markets are also nervous about US earnings, which start today
after Alcoa kicks things off. In other markets, oil prices are off, and the
dollar is a touch stronger today. Stocks are expected to open lower. Despite
the weaker tone we are seeing now on account of the Chinese numbers, we think
metals are not doing that badly, and maintain our view that the mid-June
lows should hold. The likely slow-down in Chinese growth must be juxtaposed
against the fact that metal prices have already declined sharply this past
quarter, and thus may have discounted a slowing in the Chinese economy.
... We are $19,251 on nickel, down $250, and not doing very much. The
Vale settlements have not had much of an impact on the market, likely because
LME stocks continue to push lower. (read Ed Meir's complete morning
base metals report
here)
(Bloomberg) China’s steel production may reach 630 million metric tons
this year, the official Xinhua News Agency said today citing Li Yizhong,
head of the Ministry of Industry and Information Technology. The government
won’t approve any new steel capacity plans before the end of 2011, it
said.
(Yieh) Chinese domestic demand for steel production has been declining quickly
with ever increasing velocity post announcement of rebate reduction.
(Yieh) According to the statistics from some Austrian metal research institution,
the stainless steel market will probably perform well in 2010. It is estimated
that the global stainless steel demand in 2010 would back to the level before
the global financial crisis. In the past two years, the global stainless
steel demand suffered a drop of 6 percent and 8 percent respectively.
(Min) Big Chinese companies Wuhan Iron & Steel Group and Anshan Steel
stop rolling capacity informs Metallservis
(MT) Rio Tinto CEO Tom Albanese said "resource nationalism" may curb supplies,
with governments seeking to increase their share of mining profits. Albanese
said the approach may spread as governments around the world seek to boost
their share of mining profits, potentially constraining supply.
Roca Mines Inc. is pleased to announce that its wholly owned subsidiary,
FortyTwo Metals Inc., has received an amendment to its operating permit M-226,
approving an increase in production to its planned Phase II, 1,000 tonnes/day
throughput rate from the British Columbia Ministry of Energy, Mines and Petroleum
Resources.
Toledo Mining Corporation PLC is pleased to announce that it has signed a
Memorandum of Understanding with Jinchuan Group Limited, the largest nickel
producer in China, pursuant to which Toledo and Jinchuan intend to form a
strategic alliance for the exploration, mining, processing and sale of nickel
products from Toledo's nickel interests on Palawan Island, Philippines.
Steel Ministry for
banning iron ore exports - The Steel Ministry today voiced for "completely
banning" export of iron ore, saying the mineral is a non-renewable resource
like coal and petroleum products, and should be preserved. -
more
China makes strategic
moves in preparation for downturn - China is cutting back on its commodities
binge through a series of recent investment choices that signal a change
in strategy as its economy slows. -
more
Balance On Molybdenum
Trade By China In May /10 Changed To Country To Export With Net Quantity
= Balance On Moly Trade In Jan. - May / 10 Still Remained On Country To Import
With Net Quantity - According to the customs-statistics released in China,
a balance on exports and imports of molybdenum by China in May of 2010 changed
China to the country to export molybdenum with net quantity as the first
case since last year. -
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 Wholesale Car Demand Grew 19%
in June; Slowest Pace in 15 Months // Asian Swap Rates Rise Most in Three
Months as Central Banks Cool Economies // China Stocks Rise, Capping Biggest
Weekly Advance This Year; Miners Climb // Japanese Stocks Fluctuate; Sony
Advances, Fast Falls // Producer Prices Drop for First Time in 19 Months;
May Trade Deficit Swells // Commodity Shipping Slumps for Longest in Almost
Nine Years on China Steel // European Stocks Climb, Extending Biggest Weekly
Gain in a Year // U.S. Says No Country Manipulates Currency, Yuan `Undervalued'
// Wholesale Inventories in U.S. Increased 0.5% in May // Stocks in U.S.
Fluctuate as Investors Await Earnings Season
The Euro is trading over 4/10 of 1% lower against the US Dollar. NYMEX crude
oil is up slightly and trading at $75.58/barrel. Gold is up 1% and silver
is up over 8/10 of 1%. Base metals shrugged off the lower Euro and looked
to rising equity markets for motivation today, all ending quietly higher.
Indicator chart show nickel opened higher, fell thru much of the morning,
then reversed themselves and climbed back to the higher opening. Dow Jones
reports three month nickel ended the day at
$8.84/lb. Stockpiles of nickel
stored in LME warehouses fell yet again overnight. Fastmarkets reports
"Inventories fell for the 23rd successive day, dropping 666 tonnes to 120,660
tonnes, a fresh low since the end of September last year, although cancelled
warrants dropped 540 tonnes." Sucden's day old chart shows nickel trading
thru yesterday
(chart here). Fundamentals seem to be driven by a 'feel
good' or 'feel bad' factor about the future of the worldwide economic recovery,
while the end of the Vale strike and resumption of Norilsk shipments will
add more nickel to the supply equation. The BDI reading continues to slide,
although its rate of descent is slowing again. Are we about to see a bottom,
or are we seeing another head fake like two weeks ago? Equity markets, and
for the most part, commodity markets turned bullish this week, after a
disappointing second quarter. There really was no 'news' per se, to cause
the turnaround and it appears it was more of a shift in attitude and a tiring
of all the double dip talk. Whether it lasts or not is anyone's guess. US
markets start seeing a flood of earnings report next week, and traders are
betting they will look good. Have a safe and restful weekend.
Steel seals the
deal - Picket lines that went up July 13 last year at Vale Ltd. Ontario
operations were to be dismantled last night after a five-year collective
agreement was ratified by 75.5% of members who voted in Sudbury and 74% in
Port Colborne. -
more
United States,
chromium and silicon manganese alloy market outlook gloomy. - According to
market participants of said ferroalloy prices further loosening of the United
States, traders worried about their summer vacation season, the market will
be more depressed than expected. -
more
Moly Price Action:
Summer Slowdown Or Market Reaction To China? - As the old market cliche goes,
‘sell in May, and go away,' may be indicative of many metals markets
performance as of recently. -
more
Asia iron ore prices
dip 7% in a week - Prices have fallen 33 per cent since the end of April
as demand from China weakened. Iron ore prices in Asia fell 7 per cent from
a week ago, and traders said a further decline could be expected, with Chinese
steel mills indicating a cut in production. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.07/lb
, while other London
traded base metals are slightly higher. The Euro is trading 4/10 of 1% lower
against the US Dollar at the moment. NYMEX crude is up slightly and trading
at $75.56/barrel. Gold is trading nearly 4/10 of 1% higher, while silver
is trading nearly 2/10 of 1% higher. In overnight trading, Asian markets
ended their week higher, with China up over 2-3/4%. European markets are
slightly higher this morning, while US futures show Wall Street might open
slightly lower, with the MSCI World Index looking like it will have its biggest
weekly rally in a year. Nickel inventories continued their fall overnight,
and the big news of the day, is the Sudbury and Port Colborne nearly year
long strike is over.
Edward Meir of MF Global Morning Comments - Metals finished the day with
modest gains yesterday, although prices were off their best levels. A slightly
weaker dollar and a steady US stock market, (which importantly did not give
up Wednesday's robust gain), helped keep the advance on track.
Better-than-expected weekly claims data helped the market early on, and even
though two other US macro indicators came in mixed, they did not throw things
off that much; June sales at the 30 largest US chains rose 3.1% after a 2.7%
gain in May, and although this was the 10th consecutive increase in monthly
sales, it came in a little shy of the 3.5%-3.8% gain expected. More of a
negative, was a report showing that US consumer borrowing dropped more than
forecast in May, slipping by $9.1 billion following a $14.9 billion slump
in April-- itself revised from a $1 billion increase. Consumer credit has
now declined 11 of the last 13 months. Metals are higher again right now
ahead of Chinese trade data coming out over the weekend, where June copper
exports are expected to have risen for the first time in three months. Also
helping the tone across most markets, but going rather unnoticed, was a rather
significant announcement out of the US yesterday (and not the one made by
LeBron James) that the Treasury Department will not fault China for manipulating
its currency. This was significant for the markets in that it avoids-- at
least for now-- a potentially destabilizing escalation with the Chinese over
the issue. The Treasury did say, however, that China’s yuan “remains
undervalued”, and that it needs to rise some more, but acknowledged
that China took a “significant step” in moving in the right direction
by loosening their band. .... We are $19,281 on nickel, down
$199, and likely lower on news that Vale’s Sudbury strike has been settled
late yesterday. The question now hanging over the nickel market is whether
prices can easily absorb the resumption of production from the various Vale
facilities. Reuters estimates that potentially another 140,000 tons of annual
production could eventually come onto the market under normal operating
conditions from the various mines that were all on strike up to
now. (read Ed Meir's complete morning base metals report
here)
(Yieh) According to statistics, Japan's stainless steel exports in May hit
around 120,000 tons, compared with April's 108,200 tons, up by 11 percent
and up by 85.5 percent year on year.
(Interfax) China Nonferrous Metal Mining (Group) Co. Ltd. announced on July
9 that it signed an agreement with the Guangxi Zhuang Autonomous Regional
government the previous day to develop the nonferrous metals industry in
the region.
(SG) SMS Siemag, Germany, has received an order from TNK Kazchrome JSC,
Kazakhstan, to build a new ferrochrome works in that country. The works Meltshop
No 4 will be erected at the Aktobe location.
(SP) It is seen that this round of steel price decline in China has lasted
for 11 weeks, far exceeding the previous prediction.
(Reuters) Technicals-LME nickel may rise to $21,279/T over next 4 weeks
China reduces rare earth export quota by 72% -
more
Vale workers in
Ontario vote to approve new contract at former Inco operations - Workers
at international mining giant Vale in Ontario have approved a new labour
agreement, ending a year-long strike. -
more
USW members ratify new five-year contract with Vale - One of the longest
and most acrimonious labor disputes in Canada's mining history ended on Thursday,
after a majority of unionized workers at two of Vale's operations in Ontario
voted to ratify a new five-year contract. -
more
Steelworkers Ratify Five-Year Collective Agreement With Vale - United
Steelworkers (USW) members in Sudbury and Port Colborne, Ont., voted today
to end their year-long strike against mining giant Vale, approving a new
collective agreement.-
more
Nickel
prices—heading up or down? - Slower global growth—and to a lesser
degree, the resolution of a year-long strike by Vale workers—will keep
nickel prices on a downward trend until the fourth quarter, according to
Patricia Mohr, vice-president of economics and commodity markets specialist
at the Scotiabank Group. -
more
Showcase projects
in the USA: ThyssenKrupp Nirosta and Christian Pohl GmbH fit out three high-rises
with stainless steel elements - Three major projects were recently completed
in the USA in which stainless steel played an important part: they involved
a tower in Portland and two skyscrapers in Chicago. Construction on all three
began in 2008. -
more
Material Matters:
Nickel No Target, Gold Finding Support, BHP Meets Brokers - With base metal
prices well down from the highs of three months ago, GSJB Were has taken
a look at the nickel market not from an investor perspective but from a corporate
point of view. -
more
Commodities
Demand in Asia is `Structural,' According to LME Chief Abbott - Growth in
demand for commodities including metals in Asia is surging as nations ramp
up infrastructure spending, according to the head of the London Metal Exchange,
the biggest marketplace for industrial metals. -
more
Bad tax lesson
for world leaders: Rio Tinto CEO - Rio Tinto has warned other countries looking
to introduce a new mining tax to learn from the mistakes made by the Australian
government. -
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) Malaysia Raises Interest Rate a Third
Time This Year as Growth Accelerates // China to Extend Resources Tax to
Entire Nation to Fund Government Spending // Asian Currencies Advance, Led
by Won, as U.S. Sales Data Spurs Risk-Taking // China Stocks Fall For First
Time in Three Days; Industrial Companies Drop // China Buys Japan Bonds
at Record Pace, Helps Yield Drop to Seven-Year Low // Asian Stocks Rally
as Growth in U.S. Retail Eases Concern // Euro Advances Third Day Versus
Yen, Dollar on Stock Gains, Recovery Signs // Bank of England Keeps Rate,
Bond Holdings Steady as Inflation Debate Grows // U.K. House Prices Declined
0.6% in June on Increased Supply, Halifax Says // German Industrial Production
Increased 2.6% in May, Exceeding Forecasts // Trichet Faces Market Rate Threat
as Debt Crisis Hurts Growth // ECB Keeps Rate at 1% as Crisis Threatens
to Derail Recovery // European Stocks Gain for Third Day as IMF Raises Growth
Outlook // IMF Raises 2010 Growth Estimate, Sees Greater Risks //
Apartment Vacancies in U.S. Drop From 30-Year High, Reis Says // Record Cash
Weighing on U.S. Stock Market Returns: Roben Farzad // Retail Sales Rise
in June as Warm Weather, Bargains Spur Buying // U.S. 30-Year Mortgage Rates
Decline to 4.57%, Third Straight Weekly Drop // U.S. Stocks Erase Early Rally
as Financial, Energy Companies Turn Lower
The Euro is currently trading nearly 2/10 of 1% higher against the US Dollar.
NYMEX crude is higher by nearly 1.3% and over $75/barrel. Gold is down nearly
3/4 of 1% and silver is off more than 1%. Except for tin, base metals ended
the session slightly higher. Indicator charts show nickel traded choppy today,
albeit within a $250/tonne spread. Dow Jones reports three month nickel ended
the day at $8.80/lb. Stockpiles of nickel
stored in LME approved warehouses now sit just over the 121,300 tonne level
after registering another decline overnight. Sucden's day old chart shows
LME nickel trading thru yesterday
(chart here). Nickel appears to have little momentum
behind it besides the Dollar.Euro ratio and the suddenly bullish, equity
market. The Baltic Dry Index for its 30th consecutive session, down
79 and under the 2000 level. USW Local 6500 workers in Sudbury and USW Local
6200 workers in Port Colborne should be wrapping up voting on a new five
year contract with Vale shortly, and with only 5 days remaining to make this
officially a one year strike, it is expected to pass. A positive conclusion
to this strike would leave only the Voisey's Bay strikers on the picket lines.
While Vale may see one of its headaches end, yesterday's $36 million judgment
against them, by Port Colburne, Canada residents, who had claimed 60 years
of emissions had lowered their property values, could now enter the appeal
stage. And media reports from Russia say Oleg Deripaska does not have the
support of the Kremlin in his dispute over the loss he suffered on the Norilsk
Nickel board.
(PR) The total value of minor metals traded at the London Metal Exchange
has passed the USD$100m mark. This milestone has been reached in just under
3 months following the Exchange's launch of the world's first exchange-traded
futures contracts for cobalt and molybdenum on 22 nd February
Barry Ritzhold, author of macroeconomics blog The Big Picture - (yesterday)
"As an aside, we updated our ECRI logit model and it is suggesting that
we have 52% odds of an outright recession, up from 48% last week."
Fed’s Fisher: Confusion Leading to Slower Growth -
more
Cutting Off Unemployment Benefits Could Worsen Deficit -
more
Bankers Group Reports Fewer Loan Delinquencies -
more
Global Economy: Continuing Recovery But Clouds on the Horizon -
more
Striking Vale workers
asked to approve watered-down version of original proposal - Workers at Vale's
mining operations in Sudbury, Ont., are voting today on a watered-down version
of the company proposal that prompted a year-long strike. -
more
Oleg Deripaska
Fails to Win Support of the Kremlin in Norilsk Nickel Dispute - According
to RUXX Report, Russian and international investors follow the dispute of
the two main stakeholders of the world's largest nickel producer MMC Norilsk
Nickel -- Rusal, controlled by Oleg Deripaska, and Interros, controlled by
Vladimir Potanin, over the company's new Board election. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.11/lb
higher, with most base
metals trading higher this morning. The Euro is trading over 1/10 of 1% higher
against teh US Dollar at the moment. NYMEX crude oil is trading 3/4
of 1% higher and at $74.64/barrel. Gold is down 1/3 of 1% and silver is down
1/10 of 1%. In overnight trading, Asian markets ended higher, with China
off nearly 2/10 of 1%. European markets are trading higher this morning,
while US futures are slightly lower at the moment. Nickel inventories slipped
overnight. USW Sudbury workers continue voting on a proposed contract from
Vale and we could see the official end of a strike that would have lasted
a full year, come next Tuesday.
Edward Meir of MF Global Morning Comments - Metals prices were modestly higher
yesterday, but what was more interesting about Wednesday's session, was that
we saw synchronized advances in a host of other markets, (something of a
rarity in recent weeks), including sharp advances in energy, US equities,
and grains. The dollar also weakened yesterday, adding to the overall gains,
but we believe the US equity market was the main driver, especially after
the Dow Jones Industrial Average surged by more than 270 points, while the
S&P 500 reclaimed broken support at the 1050 mark. The rise in the US
stock market was partly in anticipation of strong third-quarter earnings
reports scheduled to start next week. Investors got an early glimpse of what
may lie ahead, particularly for the financial sector, when State Street announced
that it handily beat earnings forecasts. In today's action, metals are pushing
higher once again, and although the advances are modest, we expect the firmer
tone to stay in place at least through the balance of the week. Over the
weekend, the Chinese release latest metals import data for June, expected
to show an increase over May levels, likely in the order of about 7%. Channel
checks with our Chinese customers seem to support this likely increase, as
some of our fabricator accounts tell us that they have seen no real slowdown
in their order flow over the last month. .... Out of Japan, it was
reported that machinery orders fell the most since August 2008, a sign that
the rebound in Japanese business investment may be flagging. Orders slid
9.1% in May from April levels, the first decline in three months and exceeded
the 3% drop forecast. In other news, the International Monetary Fund raised
its 2010 global growth forecast on Thursday, citing an expansion in Asia
and in US demand. The IMF upgraded its 2010 global growth forecast to 4.6%
from 4.2% after a fall of 0.6% in 2009. The Fund sees the likelihood of a
double-dip recession as being unlikely. .... We are $19,420 on nickel,
up $270. The short-term downchannel on the charts is showing signs of fraying,
as we seem to be pushing slightly higher, but we would prefer to remain on
the sidelines for the time being. (read Ed Meir's complete morning
base metals report
here)
(Dow Jones) China's Jinchuan Group Co. has started operating a nickel-sulfate
production line with expected annual capacity of 30,000 metric tons, China
Nonferrous Metals Network reported Thursday. This will raise Jinchuan's nickel
sulfate output capacity to 45,000 tons a year, making it the world's largest
producer, according to the report.
(Yieh) Japanese nickel-based stainless scrap price is likely to fall by
¥170,000~175,000/ton in July, though the price in late June was slightly
up to respond to rise in raw material cost. Meanwhile, stainless steel price
may keep soft as stainless steel production is expected to reduce in July
and August and nickel price is predicted to drop.
Raw Materials Weigh Against Double-Dip: Chart of the Day -
more
(EP) ECB policy makers left interest rate at its historical low of 1.00%
in July, in line with the previous and median estimates.
Vale's Sudbury
nickel workers to vote on proposed contract - After an acrimonious year-long
strike, nickel workers in Ontario employed by Brazilian mining giant Vale
SA will vote on a proposed labour deal, but terms of the pact suggest neither
side is a clear winner in the dispute. -
more
Inco case: legal
fees in the ‘millions’ - Vale SA’s Inco Ltd. must pay $36-million
to Ontario residents near a former refinery, the biggest award in Canadian
history in an environmental damages case, according to a lawyer. -
more
Vale to appeal Canada's biggest environmental fine - Brazilian mining giant
Vale said Wednesday it is appealing an Ontario Superior Court decision that
awarded $36-million to residents in the town of Port Colborne, Ont., who
claimed discharge from a Vale nickel refinery contaminated their land and
devalued their properties. -
more
Price Of FeCr
For Shipments To Europe In Q3 / 10 Is Reduced By 6 US-Cents Per Lb. / Cr
= A Sudden Change Of Market Situation In Europe Hastens To Settle The Price
By A Reduction - The negotiations with major stainless steel companies in
Europe on price of South African charge chrome for shipments in July - September
quarter of 2010 were taken place by the end of last week and finally settled
by a reduction of 6 US-Cents per lb. of Cr, resulting in new benchmark price
of 130 US-Cents per lb. of Cr -
more
Steel prices seen
dipping further as demand stalls - Too much production and not enough demand
is driving U.S. steel prices down again, while there is concern over rising
Chinese imports, analysts and industry experts say. -
more
London Metal
Exchange Opens Asia Office, Discusses Singapore Cooperation - The London
Metal Exchange has entered discussions with Singapore Exchange Ltd. on the
possibility of cooperation, the U.K. bourse said today, as it opened its
first overseas office. -
more
Mining the deep:
China seeks sulfides in international seas - Last month, the International
Seabed Authority adopted regulations for mining international sea bottoms
for polymetalic sulfides. -
more
Norilsk shareholder
Interros opposes new board vote - Interros, owner of a quarter of shares
Norilsk Nickel, said on Thursday it will not support another election for
the Russian metals giant's board as called for by the owner of an equal stake,
UC RUSAL. -
more
Steel Import Permits
Decline 15% - 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 June totaled 1,955,000 net tons (NT). -
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) Bajaj Seeks 70% of Sales Outside India,
Challenging Honda in Latin America // Gold Demand in China Jumps on Stock
Slump, Cooling Measures, Exchange Says // Singapore Wealth Fund Set to Reclaim
Peak as Asia Bets Win // Nissan's Waiting List Swells in Bangkok as Car Demand
Surges // China Stocks Gain for Second Day; Consumer Companies Climb, Banks
Decline // Most Asian Stocks Drop as U.S. Services Report Fuels Concern
// EU Parliament Approves Law to Limit Bankers' Cash Payout to 30% of Bonus
// Iceland's EU Entry Talks Urged by European Parliament Amid Bank Standoff
// German Factory Orders Unexpectedly Fell 0.5% in May; April Growth Revised
// European Exports, State Spending Lead Growth; Household Consumption Drops
// Cabinet Approves German Budget Cuts as Euro Governments Struggle With
Debt // European Stress Tests May Include 17% Haircut on Greek Bonds //
European Stocks Advance as Spanish Banks Rally; Santander, Popular Climb
// Treasury Yields Hold Near 2010 Lows on Signs of Slowing Economic Growth
// Allstate CEO Says U.S. State, Local Borrowing `Out of Control' // U.S.
Shopping Center Vacancies Near Record as Consumer Confidence Weakens //
Talon's Diamond Says Pessimism Creating a `Stock Picker's Market' in
2010 // Fed's Hoenig Says Central Bank Should Increase Target Interest Rate
to 1% // U.S., European Stocks Rally on Shopping Optimism
The Euro is trading nearly 2/10 of 1% lower against the US Dollar and off
earlier highs. NYMEX crude is up 2.2% and trading at $73.56/barrel. Gold
is up 1/3 of 1% and silver is higher by nearly 1./2%. Base metals ended mixed
and for the most part, quietly. Indicator charts show nickel spent much of
the day in a slow gradual climb, only taking a hit toward the end of the
session. Dow Jones reports three month nickel ended the session at
$8.68/lb
. Stockpiles
of nickel continue to fall and now sit just over the 121,700 tonne level.
With Vale's Sudbury strikers voting today and tomorrow on a new proposal,
and Norilsk resuming shipments, and stainless steel production slipping in
a seasonal slowdown, it will be interesting to see if this slide continues.
Sucden's day old chart shows London nickel trading thru yesterday
(chart here). The Baltic Dry Index continues to also fall,
and shows no sign of stopping, losing 109 points. It has now lost over 50%
of its May 25th reading. While we constantly have to constantly remind ourselves
why the 'experts' say this once well used economic barometer is seriously
skewed these days, we can not help but wonder if even tainted bad news,
is still bad news for the overall worldwide economic recovery. There is a
lot of negative statistics floating around out there, but this is one of
the few that have us deeply concerned. Until the BDI adding points, we feel
much of the recovery momentum has stalled. Norilsk announced it has
resumed shipments of nickel from its Dudinka port and media reports the shipment
is bound for Europe, so we will see if any nickel shows up in Rotterdam in
the next few weeks. USW workers in Sudbury are voting on a contract proposal
by Vale and should be back to work next week. The USW Voisey's Bay striking
union is expected to follow Sudbury's lead and agree to a proposal soon.
And the Norilsk power struggle is offering the industry a little comic relief.
(TBP) The June ISM services index fell to 53.8 from 55.4, was below the estimate
of 55 and is at the lowest since Feb. The overall level though still remains
a touch above the 10 yr average of 53.0 and still implies expansion. Business
Activity fell 3 pts to a still high 58.1. New Orders dropped to 54.4 from
57.1 while Backlogs fell .5 pt to 55.5.
Unemployment Extension Could Boost Jobless Rate -
more
Liquidate, liquidate, liquidate - Commentary: Some inconvenient facts about
fiscal austerity -
more
Can the Crowd Forecast a Double Dip Recession? -
more
North american
Stainless Steel Prices - Latest Forecast - As predicted, MEPS –
North American stainless steel transaction values moved up considerably in
early June. These rises were due to hikes in alloy surcharges of $US380 per
tonne and $US475 for grades 304 and 316 respectively. -
more
Inco case: legal
fees in the ‘millions’ - Vale SA’s Inco Ltd. must pay $36-million
to Ontario residents near a former refinery, the biggest award in Canadian
history in an environmental damages case, according to a lawyer. -
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
higher, with other
London traded base metals trading lower. The Euro is trading 1/3 of 1% lower
against the US Dollar at the moment. NYMEX crude oil is trading nearly 1/2
of 1% higher, and at $72.31/barrel. Gold is lower by 4/10 of 1% and silver
is down 1%. In overnight trading, Asian markets ended lower, with China up
nearly 7/10 of 1%. European markets are trading lower this morning, with
US futures showing Wall Street may open lower as well. Nickel inventories
fell again overnight.
Edward Meir of MF Global Morning Comments - no report received
today (read Ed Meir's complete morning base metals report
here)
(Dow Jones) Russia exported in January-May 92,600 metric tons of nickel,
1.54% more than in the same months of 2009, when 91,200 tons were exported,
the federal customs service reported Wednesday.
(Interfax) Falling steel prices on China's market are expected to force some
large-sized steel mills to reduce production, analysts told Interfax on July
6
(Yieh) According to report, Nippon Steel & Sumikin Stainless (NSSC) would
cut domestic prices of austenitic CRC by about ¥25,000/ton. However,
it raised its ferritic CRC by ¥10,000/ton for July deliveries due to
the higher costs of raw material including iron ore and coal.
(LG - China) The high concentration in upstream industries and the stable
price of iron ore material have always been identified as the main supporting
factors of Chinese steel price. However, since the late April, following
the sharp fall of steel price, the upstream iron ore price has also begun
to loosen. According to analysis, that steel price and iron ore steel price
falling in succession is a signal of the market’s downward trend to
the bottom.
(MPA) Chinese steel mills prepared for further cutbacks
(AMM) U.S. nickel market participants are anticipating lower premiums after
Vale SA and union leaders reached an agreement Sunday that could end a year-long
strike at nickel operations in Sudbury and Port Colborne, Ontario.
Sponsored by Team Stainless and produced by SCI, four new case studies (5
through 8) present different applications of structural stainless steel -
more
Striking Vale employees
begin contract vote - Roughly 3,000 Vale employees begin voting Wednesday
on a proposed collective agreement that could end a strike that's dragged
on for almost a year. -
more
Norilsk resumes
shipments after a seasonal halt - Russian metals giant Norilsk Nickel said
on Wednesday the first ship with a cargo bound for Europe had left the Arctic
port of Dudinka, its main export outlet, after a seasonal halt caused by
flooding. -
more
Vale's Inco Ordered
by Judge to Pay for Environmental Damage in Ontario - Vale SA’s
Inco Ltd. must pay C$36 million ($34 million) to Ontario residents near a
former refinery, the biggest award in Canadian history in an environmental
damages case, according to a lawyer. -
more
Oleg Deripaska
vows to fight Vladamir Potanin 'to the death' over Norilsk Nickel - Oleg
Deripaska, the Russian metals billionaire, has declared he will "fight to
the death" to prevent any candidate nominated by rival oligarch Vladamir
Potanin taking over at the world's largest nickel company. -
more
Quantities Of Molybdenum
Produced by Divisions Of Codelco / Chile In CY 2009 = El Teniente Mine Increased
Moly Output By 13%, Codelco Increased Whole Moly Production By 5% - According
to the annual report for the business activities in the calender year (January
- December) of 2009 released by Codelco of Chile, the quantities (on content
base) of molybdenum in concentrates produced by divisions of Codelco in 2009
were as per the table attached hereto. -
more
ACCC suspends
date for finding on Pilbara JV between BHP, Rio Tinto - The competition regulator
has again suspended the date for a ruling on the planned iron ore joint venture
between BHP and Rio Tinto. -
more
US steel firm defends
Chinese investment - A US venture capital steel company that received an
investment from a Chinese State-owned firm fought back on Tuesday against
national security concerns raised by US lawmakers. -
more
Courtesy AISI - In
the week ending July 3, 2010, domestic raw steel production was 1,752,000
net tons while the capability utilization rate was 72.4 percent. Production
was 1,279,000 tons in the week ending July 3, 2009, while the capability
utilization then was 49.3 percent. The current week production represents
a 37.0 percent increase from the same period in the previous year. Production
for the week ending July 3, 2010 is down 0.7 percent from the previous week
ending June 26, 2010 when production was 1,763,000 tons and the rate of
capability utilization was 72.9 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) IMF Raises South Korea's Economic Growth
Forecast, Calls for Rate Increase // Malaysia's Growth May Slow in Second
Half Amid External Risks, Najib Says // China Property Market Beginning Collapse
That May Hit Banks, Rogoff Says // Australia Lifts Bar for Further Rate Increases
as World Economy Moderates // China Stocks Lead Asian Markets Higher; AgBank
to Price $20.1 Billion IPO // Asian Stocks Rise Most in Two Weeks on Valuations;
Taiwan Semi, HTC Climb // European Banks' Hidden Losses May Threaten EU Stress
Tests // Russia Credit Swaps Surpassing Turkey Keep Kudrin Waiting for Debt
Upgrade // Sovereign Default Risk Rose 30% as European Debt Crisis Deepened,
CMA Says // Yen, Dollar Fall Versus Euro as Rally in Stocks Reduces Demand
for Refuge // Spain's ACS, CVC Said to Be in Talks to Borrow $8.8 Billion
for Abertis // European Shares Advance Most in Five Weeks; BHP Billiton,
Santander Climb // Treasuries Show 12% Chance of Double Dip to Fed as Yields
Near Record Lows // U.S. Banks Risk `Untold Problem' as Muni Holdings Advance
to 25-Year High // Copper Shortage Looms in 2011 for Macquarie as Freeport
Sees Supply Limits // Novartis Salespeople Covered by Wage Laws, Deserve
Overtime, Court Rules // U.S. Stocks Rise on Speculation Earnings Will
Trigger Rebound
The Euro is now trading nearly a full percentage point higher against the
US Dollar. NYMEX crude oil is trading 1/2 of 1% higher and at $72.51/barrel.
Gold is down 1-1/4% and silver is up nearly 4/10 of 1%. Base metals ended
the session all higher. Indicator chart show nickel opened higher and spent
the rest of the session trading a $200/tonne band. Dow Jones reports three
month nickel ended the day at $8.53/lb, putting us back to
where we ended last week. Inventories of nickel stored in worldwide warehouse
approved by the LME continue to slide, and you have to go back to June 8th
to find the last day of gains. We don't show any inbound shipment of nickel
into a LME warehouses has been recorded since June 15th. Stockpiles now total
just under the 122,200 tonne level. Sucden's day old chart shows London trading
was quiet yesterday
(chart here), but the market opened with a SStoch reading
in the heavily oversold position. After dropping 64 points yesterday, the
Baltic Dry Index lost another 89 points overnight, and now sits at 2,127.
On May 26, the BDI read 4,209, and if we see another 23 point loss, the BDI
will have lost 50% of its value from just six weeks ago.
(Dow Jones) Russian aluminum giant United Co. Rusal PLC said Tuesday it is
confident it can restore its position on the board of OAO Norilsk Nickel
following a power struggle that saw the chairman ousted. "We believe we can
restore the Rusal position on the board of Norilsk and most importantly,
we have a government request to restore Alexander Voloshin as the chairman
of the company... Voloshin will be elected at the next shareholder meeting,"
Chief Executive Oleg Deripaska said in London.
Number of the Week: Could Walk Away Stimulus Be Waning? -
more
June Sees Big Drop in Bankruptcy Filing Rate -
more
Economists React: Is Economy Deer in Headlights or Roadkill?-
more
Bernanke Created Half of 234 Years’ Worth of Money Supply -
more
Slouching Toward a Double Dip or a Lousy Recovery at Best -
more
Union official
hopeful deal also close for Voisey's Bay - Steelworkers District 6 director
Wayne Fraser said he hopes a strike at Vale's Voisey's Bay mine in northern
Labrador will end now that workers in Sudbury and Port Colborne, Ont. have
a collective agreement, according to media reports. -
more
Cliffs Natural
Resources wins majority control of Ontario chromite deposit - The U.S.-owned
Cliffs Natural Resources Inc. Monday won the battle for majority control
of the Big Daddy chromite deposit in Northwestern Ontario, though the precise
extent of its ownership may not be known till tomorrow or even later. -
more
China sentences
U.S. geologist to 8 years - American officials reacted with dismay and puzzlement
Monday to the eight-year prison sentence imposed on an American geologist
because he bought a database on China's oil industry. -
more
Kloeckner: Cut
steel output to meet lower H2 demand - European steelmakers should cut output
to stabilise prices during a likely slowdown in demand in the second half,
Europe's biggest independent steel trader, Kloeckner & Co, said. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.12/lb
higher, with other
London traded base metals all higher this morning. The Euro is trading 3/10
of 1% higher against the US Dollar at the moment. NYMEX crude oil is trading
nearly 1% higher and at $72.85/barrel. Gold is trading down 3/10 of 1% and
silver is down 1/10 of 1%. In overnight trading, Asian markets ended higher
with China up 2%. European markets are trading higher this morning and US
futures show Wall Street could begin the trading week taking their cue from
other markets and open higher. Nickel inventories continue to drop and USW
local 6500 will vote on the Vale offer tomorrow and Thursday.
Edward Meir of MF Global Morning Comments - Metals prices edged higher on
both Friday and Monday in very quiet trading, helped by general dollar weakness
and somewhat steadier equity markets. Of the two, the dollar has likely been
the more instrumental in contributing to the firmer tone, as it is now at
a near two-month low against a currency basket. Its fall against the Euro
has been particularly noteworthy, as it sank to just over $1.26 on Friday
after hitting a 2010 high of $1.1877 only one month ago. We do not have much
to add to what we have been writing in previous commentary-- we still are
of the opinion that metals will likely defend their early June lows going
into the July/August time period. Although growth prospects both in the US
and around the world clearly seem to have downshifted a notch or two, we
are not looking for a double-dip contraction. More importantly, metals have
discounted a deceleration in growth by falling already over the past few
months, with some in the group dropping so much, that it is leading to talk
of production cuts. LME stock levels are also trending lower in a number
of complexes, while the percentage of cancelled warrants is fairly high.
This tells us that the level of demand is still high enough to prevent surpluses
from accumulating on exchange. Having said that, the ongoing macro uncertainties
should limit the upside, and we therefore will likely be in a trading range
type of market for some weeks to come. .... We are $18,990 on nickel, up
$315, and relatively quiet, but unlike some of the other metals, charts show
that nickel’s short-term trend seems to be lower still. The fact that
$19,000 support has also given way suggests that we could sell off to $18,000
as the likely next stop. (read Ed Meir's complete morning base metals
report
here)
(Yieh) South Korea's Posco will cut stainless steel products prices by 300,000
won/ton (about US$245) to narrow the price gap between imported products
in July.
(Bloomberg) Taiyuan Iron & Steel Group, China’s biggest stainless
steelmaker, is in talks to buy Zhongyu Iron & Steel Group, China Daily
reported, citing Guo Juncai, vice director of development and planning at
Taiyuan Steel.
(JMB) NSSC Lowers Ni Series Flat Stainless Steel Prices in July
Local 6500
to vote on contract from Vale July 7-8 - Both Vale and Steelworkers Local
6500 are tight-lipped about details of a five-year tentative deal reached
between the two parties July 4. -
more
Yieh United Cuts
Stainless Steel Output by 20% - Due to sagging nickel prices and purchase
of stainless steel, Yieh United Steel Corp., Taiwan`s leading manufacturer
of stainless steel, has cut production by 20%. -
more
MEPS latest
forecast Asian average stainless steel prices - Asian Average stainless steel
transaction values dropped in June. This was the first reduction since October
2009 and occurred slightly earlier than we had anticipated. -
more
Chinese steel mills
may cut production on continuous price fall - According to Mr Wang Dayong
secretary general of Hebei Association of Metallurgical Industry, the domestic
steel price has fallen for ten weeks in a row, with the average loss posted
at some CNY 400 per tonne and the deepest drop for certain products exceeding
CNY 1000 per tonne. -
more
Market Tendency
On Imports Of Ferro-Alloys At 30th June 2010 = Prices Of Steel Products In
China Have Weakened, Throwing Its Shadow On Prices Of Ferro-Alloys - The
market tendency by item on imports of ferro-alloys into Japan at the 30th
June of 2010 is as follows -
more
Tata Steel says
India sales flat in June quarter - India's Tata Steel , the world's
eighth-largest steelmaker, said on Tuesday sales from its Indian operations
stood at 1.4 million tonnes in the April-June quarter, nearly flat compared
with the same period last year. -
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
Monday, July 5
Daily
Nickel/Stainless Steel Wrap-up
Dow Jones reports three month nickel ended the day at $8.47/lb
.
Morning
Briefing(8:00 AM CST
is 1PM in London)
This is a revised morning briefing as it is a holiday here in the States.
The big news of the morning is the tentative agreement that will end the
strike between the USW and Vale in Sudbury and Port Colborne Canada. We
suspected this might happen after we read an article earlier in the weekend
that reported the Ontario Labour Minister had demanded the two return to
the table immediately and finalize the sole remaining issue - the fate of
the nine fired employees. Obviously the Canadian government was upset the
two could not find common ground, and the tone of the 'request' was understood
by the negotiators. No details of the agreement have been released as of
yet, but it would appear the USW finally relented on the matter of the nine
and is leaving it to the courts to decide their fate. At 7 pm CST nickel
was trading just slightly lower, off session highs, and for the moment, showing
a possible recovery attempt, with other base metals mostly higher but quiet.
With support being broken late last week, technicals now add downward pressure
on the price of nickel, and with the strike coming to an end, fundamentals
will also add some negative pressure on nickel traders. The Euro is down
1/3 of 1% against the US Dollar.
Metals steady
as stocks fall across the board; wider markets drift - Metals continued to
tread water on Monday morning after an LME stocks report that showed declines
for all major contracts but macroeconomic worries dragged on sentiment in
wider markets, which is expected to contain upside attempts for now. -
more
Vale reaches tentative
deal with Sudbury miners to end historic strike - Year-long strike by former
Inco workers has cost $4-million a week in lost payroll and raised questions
about foreign ownership of Canadian resources -
more
Agreement on Terms of Bad Faith Complaint, Ratification Votes Set - The USW
is pleased to announce that it has come to an agreement with Vale on the
terms of a bad faith bargaining complaint that will be heard by the OLRB.
- more
Commodity/Economic Articles and Comments
(Yieh) It is reported that the output of stainless steel in China in May
dropped by 1.06% MoM to 663,750 tonnes from April. Due to the impacts on
European debt crisis and housing policy in China, the price of nickel and
chrome is difficult to climb, swaying with the stainless steel market.
(Interfax) Huifu Stainless Steel Co. Ltd. and Jinhai Stainless Steel Co.
Ltd. have signed contracts with the Changzhou district government in Wuzhou,
Guangxi Province to invest amounts of RMB 70 million ($10.34 million) and
RMB 100 million ($14.77 million) respectively in two cold-rolled stainless
steel sheet production facilities, state media reported on July 3.
(Dow Jones) A South Korean consortium led by Hyundai Corp., a local trading
company, was picked as the prime bidder for a 2 per cent stake in a nickel
mine in Madagascar, Hyundai said Monday. The consortium, which was formed
with Hyundai Heavy Industries Co., will buy the stake in the mine in Ambatovy,
Madagascar, from the state-run Korea Resources Corp. (KORES), Hyundai said.
Reuters - Technicals -LME nickel may drop to $15,000/T over next 4 weeks
Report - Robry Sunday Night Economic Assessment -
pdf here
China June power demand growth slows sharply -
more
Commodity prices
could correct: JP Morgan - In an interview with ET Now, Adrian Mowat, Chief
Asian and Emerging Market Strategist, JP Morgan says that there could be
further downside in emerging market equities due to the correction in
commodities. Once the correction has occurred, this is going to be a historic
buying opportunity. -
more
US lawmakers urge
probe of Chinese steel investment - A bipartisan group of 50 U.S. lawmakers
called on Friday for an investigation into whether a Chinese investment in
the U.S. steel sector should be blocked on national security grounds. -
more
Headlines & leaders - (Bloomberg) BHP, Xstrata, Rio's Australian Tax
Win May Revive Mining // China's Stock Index Advances, Trimming Biggest Weekly
Decline in 16 Months // Hong Kong Retail Sales Increased 19.7% by Value in
May From a Year Earlier // Malaysia Exports Rise at Slowest Pace Since February
as Asia Rebound Cools // Most Asian Stocks Fall on Chinese Growth Concerns
// Hedge Funds Shutting in Europe as Energy Slide Accelerates Investor Exodus
// Mercedes, BMW Sales Rise as Luxury Automakers Target Middle-Class Shoppers
// Europe Risks Renewed Recession on Spending Reductions, Pimco's Mather
Says // European Unemployment Holds at 12-Year High of 10% Amid Reluctance
to Hire // Commodity Funds Change Strategy to Challenge Index Money, Man
Group Says // European Stocks Rebound From Five-Week Low; BHP, Dana Petroleum
Advance // U.S. Economy: Private Payrolls Grew Less Than Forecast in June
// Gross, Rosenberg Say Employment Growth for June Is an Illusion: Tom Keene
// Treasuries Fluctuate After U.S. Loses Fewer Jobs Last Month Than Forecast
// Orders to US Factories Declined in May More Than Forecast
The Euro is trading nearly 1/10 of 1% higher against the US Dollar, and well
off earlier highs. NYMEX crude oil is down 1-1/3% and trading under $72/barrel.
Gold is trading over 9/10 of 1% higher and silver is trading flat. Base
metals ended mostly higher but well off session highs. Indicator chart show
nickel was the sole loser today, opening higher, but spending most of the
session in a downward trend, only bouncing off the bottom at the end of the
day. Dow Jones reports three month nickel ended the day and week at
$8.53/lb. Inventories of nickel
stockpiled in LME approved warehouses fell again overnight, and now sit just
over the 123,400 tonne level. Sucden's day old chart shows nickel closing
just over the resistance line yesterday
(chart here). Nickel got a boost opening higher this morning
on a stronger Euro, but saw all of these gains evaporate during the day as
the Euro lost ground. The Baltic Dry Index continues to concern, falling
another 71 points. AK Steel announced stainless steel surcharges for August,
showing $8.7946/lb as the average price of nickel for June. This is higher
than our estimate, primarily due to US premium charges on nickel. AK also
shows chrome averaging $1.319/lb in June, molybdenum at $14.163/lb, and iron
at $450/GT. AK shows their surcharges on 304 stainless steel 28 gauge or
thicker will fall $.1698/lb in August, and $.3753/lb on 316 stainless steel.
The jobless report for June came in about where economists expected, although
a few indicators raised eyebrows. The average workweek for all employees
on private NFP decreased by 0.1 hour to 34.1 hours while the workweek for
manufacturing employees decreased by 0.5 hour to 40.0 hours. New factory
orders fell 1.4% in May, much more than expected, and following a 1% gain
in April. US markets will be closed Monday as part of the Independence Day
holiday weekend. Have a safe and restful weekend!
Ferrochrome
price falls 4 percent in Q3 settlement - Ferrochrome producers in South Africa,
the world's largest producing nation, agreed to a less-than-expected fall
of 4 percent in the third-quarter contract price, boosting share prices on
Friday. -
more
Finnish
Steelmaker Invests €544 Million to Expand Production - Outokumpu Oyj
(Espoo, Finland), a leading Finnish steelmaker, has decided to invest €544
million ($669.45 million) on the expansion of the company's steel production
and ferrochrome manufacturing facilities. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.02/lb
higher, but well off
session highs, with other base metals also trading higher but sagging. The
Euro is trading a little over 1/4 of 1% higher but declining, thus accounting
for the session declines in base metals. NYMEX crude oil is trading flat
at $72.97/barrel. Gold is trading nearly 3/10 of 1% higher, while silver
is up over 1/10 of 1%. In overnight trading, Asian markets ended lower, with
China up 1/3 of 1%. European markets are trading slightly higher this morning,
and US futures show Wall Street may open in a better mood. Nickel inventories
continue to slide. US markets are awaiting the jobs report for June and begin
a three day weekend tomorrow, with markets closed on the 5th for Independence
Day.
AK Steel August Stainless Steel Surcharges -
pdf here
Commodity/Economic Comments
Edward Meir of MF Global Morning Comments - Metal prices fell sharply to
kick off the third quarter, with copper selling off to two-week lows. A barrage
of weak macro data hit the markets throughout the day, not allowing most
markets to regain their footing. We discussed some of the soft Asian macro
numbers in yesterday's note, but weak numbers also followed from the US,
where the Institute for Supply Management reported its manufacturing index
for June fell to 56.2 from 59.7, coming in well below estimates of 59.0.
However, the ISM cautioned against reading too much into the report. "We
are now 11 months into the manufacturing recovery, and given the robust nature
of recent growth, it is not surprising that we would see a slower rate of
growth at this time," the director of the survey said. The ISM said its new
orders index hit 58.5, from 65.7 in May, while the production index fell
to 61.4 from 66.6. Inventories contracted, but hiring continued to grow.
Not impressing the markets either, was the weekly US jobless claims reports,
which increased by 13,000 to 472,000 in the week ending June 26th vs.
expectations for a slight decrease. The previous week's level was revised
upward as well. And following three months of solid gains, the National
Association of Realtors reported that US pending home sales plunged 30% in
May, somewhat to be expected given that this was the first month after the
expiration of a tax-credit program. About the only good number released Thursday,
was one showing May US construction spending falling less than expected,
with a decline in private sector building partially offsetting rising public
construction. We are sharply higher in the metals group this morning as we
await the nonfarm payroll number, but crude oil markets are down slightly,
while US equity markets are expected to open flat. Net job losses of some
100,000 is expected in this morning’s report, but the swing into negative
territory is attributable mainly to the fact many census worker have been
terminated. Focus will instead be on how many jobs the private sector has
created, and here, payrolls are expected to have risen by about 125,000 in
June, better than the anemic 41,000 seen in May, and slightly higher than
the monthly average of 100,000 generated so far this year. (Speaking of jobs,
there is a provocative op-ed piece on Bloomberg written by Andy Grove, co-founder
of Intel, about the state of the labor market in the US and what should be
done to preserve the manufacturing base of this country. The piece can be
accessed by clicking on this link in our attachment). In addition to the
jobs report, markets will also take in a reading on factory orders expected
to decrease by 0.6% in May after rising 1.2% in April. ... We are $19,200
on nickel, up $200, and quiet, with only a $300/MT trading range in place.
The $19,000 support level held on a closing basis. (read Ed Meir's
complete morning base metals report
here)
(Dow Jones) China's Shandong province will permanently shut 920,000 metric
tons of ferronickel capacity by the end of the year as part of its effort
to eliminate outdated metal capacity, China Nonferrous Metals Network reported
Friday. The facilities to be shut are mainly ferronickel and nickel pig iron
smelters in the city of Linyi, the report cited the province's economic and
information technology committee as saying.
(PR) Shareholders of Merafe Resources are advised that the European benchmark
ferrochrome price has been settled at $1.30 per pound for the third quarter
of 2010, a decrease of 4% from $1.36 per pound in the second quarter of 2010.
(AMM) U.S. nickel premiums might have peaked amid signs that they will fall
from their record highs as buying volumes drop due to the summer slowdown
and supply improves amid an influx of imports.
(PR) AK Steel has advised its customers that a $385 per ton surcharge will
be added to invoices for electrical steel products shipped in August 2010.
(FM) On June 29, MMC Norilsk Nickel has fully repaid a 3-year collateral-free
syndicated loan of USD 1.5 bn, without use of any extra credit resources.
NorNickel’s debt as of 31 December 2009 totaled USD 5.32 bn. By 30 June
2010, the company to repay USD 1.83 bn out of internal funds.
Euro zone unemployment beats market estimates and inline with downwards revision
-
more
Merafe Says
3Q European Ferrochrome Prices Fall 4% - European prices for ferrochrome,
a key ingredient in stainless steel, have been agreed 4% lower than in the
prior three-months, Merafe Resources said Friday. -
more
China's Stainless
Steel Majors Cutting June Production? - There is speculation that China's
major stainless steel manufacturers may have opted for June production cutbacks
at their works toward a recovery of domestic market conditions for stainless
steel products. -
more
Anshan Steel Buys Stake In Jien Nickel - Anshan Iron and Steel, the parent
company of Angang Steel, subscribed to 157 million yuan worth of shares in
Jien Nickel Industry's (600432) private placement, reports China Securities
Journal, citing an announcement by Jien Nickel. -
more
User industry 'shocked'
over govt anti-dumping probe on steel - Steel users on Wednesday took objection
to the Commerce Ministry's move to review anti-dumping duty on certain stainless
steel products, saying the duty has adversely impacted the domestic industry.
- more
Minor metals
drift lower as summer lull hits prices - Many minor metals mostly drifted
lower over the last week, as persistent uncertainty regarding the economic
outlook weighed, with volumes down ahead of an expected summer lull. -
more
Protesters over
controversial PNG environmental law liable to be prosecuted - The Governor
of Papua New Guinea’s Madang province says organisers of a protest against
the controversial environmental law amendment are liable to be prosecuted
for being in contempt of court. -
more
Environment, a higher calling - I rise today for a simple purpose. I want
to bring a cautionary tale to this debate on environment. I want to bring
a cautionary tale to the Parliament, the country of Papua New Guinea and
our people on rights to live in clean natural environment and in peace. -
more
Australia's
new resource tax vs "super profit" tax - Australia ended a damaging
dispute with global miners on Friday by dumping its proposed "super profits"
tax for a lower resources rent tax backed by big miners, clearing a major
hurdle to call an early election.-
more
Sudbury/Voisey's Bay Nickel Strike Coverage
About 3,050 hourly rated production and maintenance workers, members of United
Steelworkers Local 6500, have been on strike since July 13. Another 130 USW
Local 6200 members in Port Colborne are also on strike. About 450 members
of USW Local 9508 in Voisey's Bay have been on strike since Aug. 1.
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 New `Axis of Power' for Investment
Banking as Europe Income Drops // Food Inflation Drops to 8-Month Low,
Manufacturing Growth Slows in India // Asia's Manufacturing, Export Growth
Slows as Data Signal Peak of Rebound // China Economy's `Soft Landing' Roils
Global Markets // Asian Stocks Fall on China Manufacturing, Spain Rating
// Swedish Riksbank Raises Rate, Forecasts More 2011 Increases Than Predicted
// Europe Naphtha Exports to Asia to Tumble on China Slowdown: Energy Markets
// European Banks Not Out of the Woods Yet After ECB Tender, Investors Say
// Merkel Averts Disaster as Wulff Wins German Presidency Vote // European
Stocks Sink to Five-Week Low; Daimler, BHP Billiton Lead Retreat // Greenspan
Tells CNBC U.S. Economy Undergoing `Typical Pause' in Recovery // Announced
U.S. Job Cuts Decline 47% From a Year Earlier, Challenger Says // Treasury
Yield Curve Flattest Since October on U.S. Jobs, Factory Reports // Lack
of U.S. Stocks at Lows May Be Bullish Market Sign: Technical Analysis //
GM, Ford June Vehicle Sales Trail Estimates; Chrysler Exceeds Expectations
// Mortgage Rates on 30-Year U.S. Loans Fall to Record // Stocks, Commodities,
Dollar Drop on Concern Recovery Is Slowing
The Euro is presently trading 1-2/3% higher against the US Dollar. Typically
commodities would sky rocket on this kind of news - but not today. NYMEX
crude oil is down nearly 3-3/4% and at $72.82/barrel. Gold - down more than
2-3/4%. Silver - down 4.4%. Base metals - all in the red. Indicator charts
show nickel opened lower, fell even lower in afternoon trading, and in after
hours trading, managed to crawl back up over support. Dow Jones reports three
month nickel ended the day, and started the third quarter of 2010, falling
to $8.61/lb
. Stockpiles
of nickel stored in LME approved warehouse now sit just under the 123,800
tonne mark after falling yet again overnight. Sucden's day old chart shows
an erratic market over the last few days
(chart here). Sucden and Ed Meir with MF Global have major
support within $10/tonne of each other, around $19,000/tonne, which was breached
today, and held - but just barely. Tomorrow now becomes more important to
nickel's immediate short term future - in that support must hold again. If
it is breached again, we could see prices tumble again sharply. If it holds
for a second day, we could see prices start to sneak back up. The fundamentals
are pressuring the technicals though - so we will have to wait and see. The
Baltic Dry Index dropped another 55 points and very concerning. New
jobless claims rose last week, here in the States, both the US and China
manufacturing PMI indexes fell in June (we follow four indexes
here), 30 year fixed rate mortgages keep setting record
lows in an attempt to draw in buyers, pending home sales plummeted in May
and tomorrow many are dreading the June unemployment report. And did you
see the cute little redhead that the FBI arrested and accused of spying for
the Russian's? Apparently the Feds arrested the whole gang when they got
reports this little lass was checking out and heading home. Can't help but
wonder if the agents assigned to follow her knew as soon as she skipped town,
they were going to be assigned to following some suspected Mohammed
Blowsomethingup somewhere and wanted to stall that eye sore as long as possible.
Frank Nothaft, Freddie Mac vice president and chief economist - "Interest
rates on fixed-rate mortgages and the 5-year hybrid ARM fell once again to
all-time record lows this week in a period where the economy struggles to
gain momentum and inflation remains very low."
The Conundrum of Commercial Real Estate Stocks -
more
Papua New Guinea
strips communal land rights protections, opening door to big business - On
May 28th the parliament in Papua New Guinea passed a sweeping amendment that
protects resource corporations from any litigation related to environmental
destruction, labor laws, and landowner abuse. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.19/lb
lower, with all base
metals trading lower this morning. The Euro is supporting commodity trading,
up nearly 3/4 of 1% against the US Dollar, but Chinese PMI figures have cast
a bearish shadow over the market this morning. NYMEX crude oil is trading
more than 1.4% lower and at $74.55/barrel. Gold is trading nearly 2/10 of
1% lower, while silver is over 1/2 of 1% lower. In overnight trading, Asian
markets ended lower, with China off more than 1.4%. European markets are
trading lower this morning and US futures show Wall Street could open the
third quarter lower. Nickel inventories fell overnight.
Steel prices fall on concern over global demand -
pdf here
2010 Global Manufacturing Competitiveness Index - Deloitte -
pdf here
Commodity/Economic Comments
Edward Meir of MF Global Morning Comments - Metals managed to eke out a modest
gain yesterday, but closed the second quarter out with a loss. Copper was
off 17% over the period, snapping a string of five consecutive quarterly
gains, while zinc had the dubious distinction of being the worst performer
in both metals and the broader commodity index, losing 25% in Q2 after slipping
by 7.2% in Q1. Despite the single-day gain seen yesterday, the rest of the
markets were not pulling in the same direction, suggesting that the advance
was on shaky ground heading into Thursday. Indeed, we are now lower in all
the LME metals, with Asian stocks and energy markets down as well. News that
China's purchasing managers’ index expanded for the 16th straight month
in June, al beit at a slower pace --52.1 in June from 53.9 in May-- is behind
today's declines, and may be a sign that Beijing's tightening measures are
gaining traction. Of the PMI's 11 categories, only one rose in June compared
with May. Key sub-indexes for new orders, new exports orders, input prices,
and imports all fell. It is surprising to us that with 10 out of the 11
components falling, and declining components being in key categories, that
the index even belongs over 50, which typically signals continued expansion.
Be that as it may, China was not alone in reporting decelerating manufacturing
activity; reports out of India and Taiwan also showed purchasing-manager
indices falling last month, although they remained in expansion mode. In
addition, South Korean exports grew at a slower pace in June, as did
Indonesia’s, where May exports eased for a fourth straight month. Bucking
the largely lower trend we are seeing in a number of markets today, the Euro
is stronger, now trading at $1.2370. The ECB has made another overture to
the banks this morning by agreeing to lend them 111.2 billion euros for six
days in order to tide them over the expiry of their 12-month loans this week.
(Banks asked for 131.9 billion euros in three-month loans yesterday, less
than expected, further steadying the currency in the process). Talk that
Moody's may place Spain's credit rating on review (out yesterday) does not
seem to be troubling the Euro much either. .... We are $19,400
on nickel, down $345, and where we were at this time yesterday. Support is
at $19,000. (read Ed Meir's complete morning base metals report
here)
(Yieh) It is reported that the price of ferro-molybdenum has increased by
US$3/kg. The main reason is that because of Sadaci plant's production problem,
the ferro-molybdenum has supply shortage.
(Yieh) South Korean Posco announced to cut its stainless steel prices by
300000 won/ton (US$247) for July.
(Interfax) Chinese steel mills are unlikely to abandon their quarterly contracts
with global iron ore suppliers despite lower spot iron ore prices at present,
several analysts told Interfax on June 30 after an article quoting a top
Rio Tinto executive caused a flurry of speculation over the pricing system.
(AP) Jinchuan Group Co., China's largest nickel producer, completed 49.9
per cent of its annual nickel output target for 2010 in the first half of
this year, the company said Thursday on its website.
(SO) According to the new data issued by the China Iron and Steel Association
(CISA), in mid-June (June 11-20), Chinese average daily crude steel production
was 1.767 million mt, down 17,000 mt from the early June period and also
registering a decrease of 106,000 mt compared with the late April daily output
of 1.873 million mt, which is the highest level reached so far this year.
China's manufacturing expands at a slower pace -
more
China's Nickel Ore
Inventories Set New High - Up to July 1st, China's total nickel ore inventories
in Lianyungang, Rizhao, Lanshan, and Tianjin ports have reached 10.01million
mt, setting a new record high. -
more
Global Steel
Price Falls 5.1% in June - After climbing steadily for months, US flat product
transaction values have started to decline as the market slows for seasonal
reasons. -
more
Price Of Low Carbon
FeCr For Shipments To Regular Consumers In Q3 / 10 Rises = For Japan,
Following Firm Tone In Europe, To Rise By 13 - 16 US-Cents Per Lb. / Cr -
The negotiations with regular consumers in Japan on price of low carbon
ferro-chrome for shipment in July - September quarter of 2010 are being taken
place on a line to rise from that settled for the preceding quarter of April
- June. -
more
PNG Protest March
Planned Despite Warnings - Despite advice from police and Madang Governor
Sir Arnold Amet against today’s protest in Madang on the amendments
to the environmental law, organizers say the event will go ahead. -
more
Madang residents protest - More than 500 people - including tertiary students
- took to the streets of Madang yesterday to protest the changes to the
environmental law. -
more
State OKs mining -
Oregon Resources Corp. has cleared its last significant regulatory hurdle
and is moving ahead with its chromite mining operations. -
more
Julia Gillard
and miners strike deal to end resources super-profits tax impasse - Miners
and the government will announce tomorrow that they have struck a deal to
end the bitter standoff over the mining tax. -
more
Details on reported deal on Australia mine tax -
more
Sudbury/Voisey's Bay Nickel Strike Coverage
About 3,050 hourly rated production and maintenance workers, members of United
Steelworkers Local 6500, have been on strike since July 13. Another 130 USW
Local 6200 members in Port Colborne are also on strike. About 450 members
of USW Local 9508 in Voisey's Bay have been on strike since Aug. 1.
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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 -
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Daily
Nickel/Stainless Steel Wrap-up
(
Reports
Commodity/Economic Articles and Comments
China Nickel Industry
Report, 2009-2010 - The report starts from the development of nickel industry
all over the world, and focuses upon analysis of nickel resource reserves,
status quo of supply and demand in the market, import & export, price
trend, substitutive product (ferro-nickel) and key enterprises etc in China.
The nickel industry of China is characterized as follows -
A Strategic
Analysis of South Africa's Ferrochrome and Manganese Mining Industry - Research
and Markets has announced the addition of Frost & Sullivan's new report
"A Strategic Analysis of South Africa's Ferrochrome and Manganese Mining
Industry" to their offering. -
lower, with other
base metals mixed but most trading slightly higher. The Euro is trading 4/10
of 1% lower against the US Dollar at the moment. NYMEX crude oil is
down over 1/2 of 1% and trading at $77.93/barrel. Gold is trading 1/3 of
1% higher, while silver is off 4/10 of 1%. In overnight trading, Asian markets
ended lower, with China off 1/3 of 1%. European markets are trading lower
this morning, and futures show US markets may open on the bearish side, as
traders await second quarter GDP numbers. The Nomura/JMMA Japan Manufacturing
Purchasing Managers Index fell to a seasonally adjusted 52.8 in July. Nickel
inventories rose for a third straight day.
While Stainless
Production Is Reducing And Nickel Price Is Rallying, Price Of Stainless Scrap
Remains = Reduction Of Stainless Production In Jul.- Aug. Is Putting A
Substantial Impact On Price Of Stainless Steel Scrap - Although LME nickel
price has rallied to a level of US$20,000 per ton, the parties concerned
are still watching carefully about further movements of nickel price and,
accordingly, domestic price of nickel-based stainless steel scrap (new clippings)
in Japan has remained unchanged at present. -
Norilsk Nickel’s
vessel transports its first million tons of cargo - The Norilsk Nickel flagship
of Norilsk Nickel JSC called and offloaded today at the Port of Rotterdam
its first million ton the vessel has transported since her launch in April
2006, the company press release said. -
China's largest
stainless steel maker invests in Myanmar nickel mine - Taiyuan Iron and Steel
Group (TISCO) signed an agreement with China Nonferrous Metal Mining Group
(CNMC) on July 26 to jointly develop the Tagaung Taung nickel mining project
in Myanmar, according to an announcement on TISCO's Web site on July 29.
-
Indonesian nickel
miner Inco's H1 net profit up sixfold - PT International Nickel Indonesia,
Indonesia's biggest nickel producer, reported on Friday first half 2010 net
profit rose sixfold due to higher sales. -
Esperance nickel
off to China - The first shipment of nickel concentrate from Western Area’s
Forrestania project to be sold into China left Esperance Port on Tuesday
night. -
Steel Prices
Tumble Around The World in July - The MEPS Global Steel Price has fallen
in July for the second consecutive month. Market demand is likely to be flat
in the third quarter.-
Morning Nickel
Inventory and Price Statistics & Figures
Eramet eyes takeovers,
sees volatile markets - Eramet, the world's sixth-largest nickel producer,
is on the lookout for takeovers and expects volatile markets as customers
reduce stocks and steel output slows, the French mining group said on Thursday.
-
Belvedere restarts
Hitura production - Belvedere Resources Ltd. has successfully restarted its
100-per-cent-owned Hitura nickel mine in Finland. First concentrate has been
produced well ahead of the scheduled restart of the mine in August and the
mine and mill are now ramping up to full production. -
Ramu to be next
‘big mine’ - The Ramu nickel/cobalt mine in the Madang is shaping
up to be the “next big mine” in Papua New Guinea with the eventual
scaling down of operations at the Ok Tedi mine. -
Russia's Severstal
suspends steel production at U.S. plant - Severstal, Russia's largest steelmaker,
has suspended production at its Sparrows Point plant in the United States
due to falling prices and low demand for steel in the U.S., the company said
on Wednesday. -
UAE emerging as the
main hub for supply to MENA with base metal products - The Gulf has the largest
concentration of energy resources in the world with oil producing countries
in the region estimated to have spent approximately AED 182.5 billion (US$50
billion) to increase their current oil field production capacities or to
develop new discoveries by the year-end. -
Acerinox H1 net
misses forecast on nickel provision - Acerinox, the world's largest stainless
steel maker, swung to a first-half net profit thanks to a recovery in demand,
though a provision to mark stock down to volatile nickel prices pulled it
below forecasts. -
80 Chinese
miners detained - Philippine police said on Tuesday they had detained 80
Chinese nationals illegally working at a mine site north of Manila. -
Posco To Maintain
July Stainless Steel Prices In August - Posco will maintain stainless steel
product prices at July's levels in August, in a signal to the market that
prices have bottomed, the company said Tuesday. -
Taiwan`s Steel
Firms Slash Output to Weather Downtrend -To weather the volatile steel-market,
Taiwan`s listed steel firms, including Chien Shing Stainless Steel Co., Yieh
United Steel Corp., Tang Eng Iron Works Ltd. and China Steel Corp., are cutting
production or suspending operations. -
The Inco men are
back - The Inco name may have disappeared from the Canadian mining scene,
but the team behind the once iconic firm is back with ambitious plans to
build one of the biggest single nickel mine operations in the world. -
No cigars: embargo
lift wouldn't do much for Cuba's paralyzed economy - While a chorus of voices
in the U.S. increasingly demand that the Obama administration completely
drop its economic embargo and 'normalize' relations with Cuba, such an event
would not necessarily positively impact the Communist island – at least
not in the near-term. -
Karnataka bans iron
ore exports from 10 ports - Karnataka, the country's second largest producer
of iron ore, has banned exports of the steelmaking ingredient from 10 of
its ports, government sources said on Tuesday. -
For our fastener
industry readers out there, came across a rather interesting tidbit of
information this weekend. According to this article, the average employee
in the screw making business in China makes between $73 and $118 - a MONTH.
(
Record High Levels
of Iron and Steel Production Forecast for 2010 and 2011 - MEPS remains quite
upbeat about the prospects for global iron and steelmaking this year and
next. -
Dairy
Farmers Can Fight Johne's Disease Threat with Chlorine and Stainless Steel
- Two tips for preventing Johne's disease on dairy farms: Use stainless steel
water troughs and add chlorine to the water. -
EU Steel Prices
- So far, there has been a dearth of third quarter orders for the European
flat product producers. Customers are staying out of the market for as long
as possible, citing poor demand and the approach of the summer holiday period
for the lack of buying activity. -
June 2010 Crude
Steel Production - World crude steel production for the 66 countries reporting
to the World Steel Association was 119 million metric tons (mmt) in June.
This is 18% higher than June 2009. -
, only $5/tonne higher
than yesterday's close. Stockpiles of nickel stored in LME warehouses fell
yet again overnight, and now total just over 119,500 tonnes total. This puts
the total inventory numbers about where they were last September 30th. Sucden's
day old chart shows LME trading of nickel thru yesterday
(
Cunico to raise
nickel output to 32,000 T in 2011 - Mining and metal processing company Cunico
Resources plans to raise output to around 32,000 tonnes of nickel in ferro-nickel
at its two Balkan plants next year, company officials in Macedonia and Kosovo
said. -
Hyundai Corp.
/ S. Korea Acquires 2% Interest In Ambatovy Nickel Project / Madagascar =
Through KORES / South Korea, Prime Bidder For Indirect Acquisition - It was
known that Hyundai Corporation of South Korea has acquired through Korea
Resources Corporation (KORES) the right for prime bidder, enabling to obtain
2% interest in the Ambatovy nickel project in Madagascar. This is one of
the arrangements to relate with natural resources adopted by the Korea
Government.
-
London Metal
Exchange Opens Asia Office, Discusses Singapore Cooperation - The London
Metal Exchange has entered discussions with Singapore Exchange Ltd. on the
possibility of cooperation, the U.K. bourse said today, as it opened its
first overseas office. -
Quantities Of Molybdenum
Produced by Divisions Of Codelco / Chile In CY 2009 = El Teniente Mine Increased
Moly Output By 13%, Codelco Increased Whole Moly Production By 5% - According
to the annual report for the business activities in the calender year (January
- December) of 2009 released by Codelco of Chile, the quantities (on content
base) of molybdenum in concentrates produced by divisions of Codelco in 2009
were as per the table attached hereto. -
Sudbury/Voisey's Bay Nickel Strike Coverage
