Headlines & leaders - (Bloomberg) Wen Says Economy Heading in Right
Direction, `Relatively Fast' Growth Seen // China's Communist Party Pledges
More Openness Amid Increasing Labor Unrest // Bond Sales Plunge as Cash Hoards
Allow Debt to Beat Equity: Credit Markets // China Stocks Drop Signals 65%
Rally to Morgan Stanley // Merrill Sees Flaws in `Not-So-Leading' China
Indicator After Stocks Tumble // Japanese Stocks Fall to Seven-Month Low
as U.S. Consumer Confidence Drops // Polish Central Bank Keeps Key
Rate Unchanged at Record Low for 12th Month // Europe Inflation Slows More
Than Economists Forecast as Energy Prices Drop // Dollar Weakens on U.S.
Recovery Doubts; Yen Retreats From Eight-Year High // European Stocks Fall
on Weaker-Than-Forecast U.S. Jobs Report; Rio Slides // Foreclosed Homes
in U.S. Sell at 27% Discount as Distressed Supply Grows // U.S. Two-Year
Note Yields May Soon Mimic Bills, Ira Jersey Says: Tom Keene // Business
Activity in U.S. Expanded for Ninth Month //
The Euro is trading higher by nearly 2/3 of 1% against the US Dollar. NYMEX
crude is trading higher by 3/4 of 1% and at $75.38/barrel. Gold is trading
slightly higher while silver is up nearly 1/4 of 1%. Base metals ended the
session mixed but mostly higher. Indicator charts show nickel started higher,
then fell into the red until it crossed Sucden's resistance line of $19,000
and then after a period of hesitation, nickel was off to the races, with
a jump over around $800 tonne from low to high point. Dow Jones reports three
month nickel ended the day and second quarter of 2010 at
$8.95/lb
. We
put our unofficial average price of cash nickel at around $8.41/lb for June,
down from $9.98/lb in May (our numbers, not official). This would
lead us to believe the stainless steel surcharge for August will be lower
than July's. Stockpiles of nickel stored worldwide in LME approved warehouses
continue to slump overnight, and now sit just over the 124,000 tonne level.
Sucden's day old nickel chart shows yesterday's huge sell-off
(chart here). It is no surprise to see the RSI and SStoch
now in deeply oversold territory. Ed Meir's chart, in his daily report, put
the resistance line of $19,200 tonne, and although it fell thru this
today, it did hold, which would imply 'technically' that this mini-rout is
over, and we could see a bounce (which we saw late today), albeit no more
than a dead cat bounce if the economic news remains negative. Traders and
funds start a new quarter tomorrow so we could see some fresh investment
in nickel. Then again, nickel is coming off a fairly bad quarter, and may
not look as desirable to fund investors. The Baltic Dry Index continues to
tumble, down another 41 points. We understand all the controversy over the
usefulness of the BDI as an effective economic gauge with a surplus of shipping,
but it is hard for us to see returning to a path of consistent and notable
recovery without the BDI laying out some positive numbers. In other words,
twenty three straight drops is no "green shoot". The mediated talks in Canada
between Vale and the striking USW have ended, with the fate of eleven striking
workers the impasse that neither side could agree on. Instead of leaving
the question of the eleven to Canada labor laws and Canadian courts to resolve,
the union leadership has chosen to keep the other 3000 plus members out on
strike to protest their dismissal. At midnight tonight, the first half of
2010 will be history.
Indicators at 7:20 am CST show 3 month nickel trading around $.15/lb
higher, but showing
signs of peaking already, with other base metals mixed. The Euro is trading
6/10 of 1% higher against the US Dollar, with it too showing signs of possibly
peaking earlier. NYMEX crude oil is up 3/4 of 1% and at $76.50/barrel. Gold
and silver are both trading about 1/1 0 of 1% higher this morning. In overnight
trading, Asian markets ended lower, with China off more than 1%. China began
yesterday's rout but so far, other world markets are not following its lead
today. European markets are slightly higher, and US futures show Wall Street
could open higher. Nickel inventories continued to slump overnight and the
talks in Sudbury between Vale and the USW have collapsed over the fate of
eleven fired strikers. It is the final day of the quarter for commodity and
equity traders.
Edward Meir of MF Global Morning Comments - Metals slumped badly on Tuesday,
with copper hitting a one-week low and practically erasing half of this
month’s gain in only one session. The rest of the group was also hit
badly, with the selling being particularly fierce in zinc, lead, and aluminum.
The bearish action also spilled over into the energy markets and US stocks,
where the Dow shed almost 270 points. The weaker tone all emanated in Asia
yesterday after the release of the revised economic index from China, but
the selling was exacerbated later in the day by a report showing US consumer
confidence dropping by almost 10 points in June to 52.9, down from the revised
62.7 in May. Economists had been expecting the reading to dip to 62.8, but
instead, the markets were stunned by the biggest decline in confidence readings
since February. The stronger dollar was also instrumental in triggering some
selling yesterday, as it rallied to $1.2148 against the Euro, its highest
level since mid-June. The greenback was responding to jitters emanating from
Europe, this time having to do with investor unease about the fact that the
ECB was calling in about €442bn in one-year loans made to a number of
banks, all of it due today. Banks would now have to roll over their debt
in three-month installments as opposed to the one-year tranche (now no longer
available to them). This morning’s action in Europe was therefore very
important, as it would give us a sense of how many institutions would be
lining up for three-month money, how many will pay the debt off, and how
many of the weaker banks opt to borrow from each other at the much higher
inter-bank rate. As it turned out, the European Central Bank said it lent
banks €131.9 billion for three months, much less than economists forecast,
and a sign that funding needs were not as pressing as feared. This is has
given the Euro a shot in the arm, with the currency now trading at just under
$1.23, and lifting most other markets up along with it. Along with higher
base metals and energy prices, a firmer tone in European equities is leading
to a higher call for US stocks, and that is indeed welcome news, as our S&P
chart in our attachment shows just how precariously poised the index is,
with prices resting on nine-month support around the 1030-1050 level. .....
We are $19,470 on nickel, up $395. Despite yesterday’s sharp decline,
prices are holding support at $19,000. (read Ed Meir's complete morning
base metals report
here)
(DJ) Talks between Brazilian miner Vale SA. and the United Steelworkers union
to end an 11-month-old strike at Vale's nickel operations in Ontario have
been terminated, as the two sides were deadlocked, the government-appointed
mediator said Tuesday. The two sides reached an impasse over the legal avenues
available to eight of nine employees that were let go during the strike,
mediator Kevin Burkett said in a statement received by Dow Jones Newswires.
(Yieh) Chinese stainless steel mills would probably cut the output in July
because of the slack demand. Some stainless steel mills like Jisco have showed
the intention to cut the output while Tisco still has not showed the attitude.
Besides, nickel pig iron producers have also started to cut production as
prices and demand reduced.
(Yieh) Taiwan’s Yieh United Steel Corp. (Yusco) announced to cut its
July’s domestic stainless steel price by NT$2,000~3,000/ton and its
export price to drop by US$50~80/ton. Yusco has slashed its 300 series domestic
price by NT$2,000/ton and for 400 series price to lower by NT$3,000/ton.
(AP) Indonesia's North Maluku legislative assembly (DPRD) has asked two nickel
mining companies in East Halmahra regency to immediately stop their mining
activities for illegal operations in North Maluku. The two companies respectively
PT Kemakmuran Inti Utama (KIUT) and PT Kemakmuran Pertiwi Tambang (KPT) are
no longer entitled to carry out mining operations in North Maluku.
(JMB) Japanese raw steel demand to meet steel products shipment will decrease
by 4.3% to 26.82 million tonnes in July-September from April-June, which
decreases for the first time in 2 quarters, announced by Ministry of Economy,
Trade and Industry on Tuesday.
Commodity Slump Means Worst Quarter in More Than a Year on Growth Outlook
-
more
China stocks continue downward trend Wednesday -
more
(AP) South Korea's industrial output grew for the 11th straight month in
May, a sign that the economy is rebounding fast from the global downturn,
a government report showed Wednesday. According to the report by Statistics
Korea, production in the mining and manufacturing sectors expanded 21.5 per
cent last month from the same month a year earlier.
Analyst Interviews: Steel Industry Review And Outlook -
more
Russian Bosses Eye Mining Investments in Indonesia -
more
Talvivaara says
production ramp-up on track - Talvivaara Mining Co Plc said on Wednesday
the ramp-up of production at its mine in Finland was on track and it had
agreed credit line to boost financial flexibility. -
more
Truce over Norilsk
Nickel collapses - Moscow is bracing for a clash between two of its richest
men as a Kremlin-brokered ceasefire broke down in spectacular fashion. -
more
Negotiations
With Mining Industry Over Tax Are Constructive, Gillard Says - Australian
Prime Minister Julia Gillard said she’s encouraged by discussions over
the fate of a proposed mining tax amid newspaper reports that a compromise
may be in the works. -
more
EU fines steel
makers 518mln euros for price-fixing - The European Commission fined 17 steel
producers a total of 518 million euros (635 million dollars) on Wednesday
for running a price-fixing cartel, with industry giant ArcelorMittal hit
the hardest. -
more
2nd SAfrica
union rejects Eskom offer, plans strike - Members of the National Union of
Metalworkers of South Africa (Numsa) rejected a new pay offer from state-owned
utility Eskom and plan to strike next week during the World Cup, a union
spokesman said on Wednesday. -
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.
Vale Sudbury strike talks called off by mediator - Mediated talks aimed at
ending a nearly year-long strike at Vale's Sudbury, Ontario, nickel and copper
mining operations have been called off due to a dispute over fired workers,
a mediator said on Tuesday. -
more
Labour Minister to meet Vale and striking Sudbury workers - Ontario Labour
Minister Peter Fonseca said late on Tuesday he will meet with Vale and the
union representing its 3 000-plus striking Sudbury workers by the end of
the week, after the latest round of talks fell apart. -
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) Sri Lanka Plans Biggest
Budget-Deficit Reduction in Eight Years for Growth // China Leading Index
Gain Cut to Smallest in Five Months, Hammering Stocks // Global Markets Face
`Renewed Turbulence' on Deficits, Aberdeen Asset Says // Japan Jobless Rate
Unexpectedly Rises, Spending Drops // China Stocks Decline Most in Six Weeks
on Slowing Economic Growth Concern // Asian Stocks Fall to Two-Week Low on
Chinese Growth Concerns // Greeks Walk Off Job to Protest Overhaul to Pensions,
Labor Laws // Alex to Become Hurricane as Swells Reach Gulf Spill // Ulyukayev
Warns of Ruble Volatility, Says Strengthening Period Is `Over' // Deutsche
Bank, Commerzbank, BayernLB Pass Stress Test // German Bonds Rise as Signs
of Economic Slowdown Boost Demand for Refuge // European Shares Retreat
on China Growth Concern, Slump in U.S. Confidence // Treasuries Rise on Flight
to Safety as Two-Year Yield Falls to Record Low // Consumer Confidence in
U.S. Fell More Than Forecast // S&P 500 Index Sinks Below Year's Low
on China, Consumer Confidence Data // U.S. Stocks Slide on Consumers, China
The Euro is currently trading over 6/10 of 1% lower against the US Dollar.
NYMEX crude oil is down over 3.2% and at $75.73/barrel. Gold is higher by
nearly 4/10 of 1% on safe haven buying, while silver is off more than
9/10 of 1%. Base metals , for the most part, got flogged today, all ending
lower. Indicator charts show nickel started off well lower than yesterday,
and after US markets opened, they fell even further. Dow Jones reports three
day nickel ended the day at $8.64/lb, dropping nearly
$1500/tonne. Stockpiles of nickel stored in LME approved warehouses worldwide
fell to just under the 124, 700 tonne level, after another day of multiple
large withdrawals with no inbound shipments being recorded. Norilsk announced
its first two ships would leave Dudinka the 6th or 7th of July, after a longer
than normal closure due to spring flooding. It will be interesting
to watch inventories when Norilsk resumes shipments of nickel into
Europe. Sucden's day old chart shows nickel trading thru yesterday
(chart here). This is the third chart we have seen that
shows nickel never got as high as the Dow reported it closed yesterday, so
take yesterday's closing price with a grain of salt. The Baltic Dry Index
continues to slump, after doing a head fake at the 2500 level. Unless a trader
was short today, the markets were just plain mean to them. Consumer confidence,
according to the Conference Board, plunged in June. The talk about the
possibility of a double dip recession has moved out of the corner whispers
and off the pages of the doom and gloom papers to mainstream media and normal
conversation. Marketwatch issued an investor alert early on "Street abuzz
with 'double dip' chatter". And for the technical traders, the future isn't
looking all that better
(article).
Today has so far, been pure ugliness.
(MFG) RUSAL boycotted the election of a chairman at Norilsk Nickel yesterday
after winning one fewer seat on the Norilsk board than co-owner Interros.
RUSAL said in a statement that the outcome of the board election was "the
result of manipulation of Norilsk Nickel shares." The boycott may signal
a new battle for control between RUSAL's Oleg Deripaska and Interros's Vladimir
Potanin. Each group controls slightly more than a quarter of Norilsk. RUSAL
said it is seeking to convene an extraordinary general meeting to discuss
the issue.
Vale ramping up
Long Harbour work - Mining giant Vale is preparing to hire hundreds of more
workers to finish a gigantic nickel processing plant in southern Newfoundland.
-
more
Son Ha exports 2,000
tones of stainless steel pipe in first half - Son Ha Group has exported 2,000
tones of stainless steel pipe valued at VND 145 billion during the first
half of this year, according to Harry Lee, International Sale Manager for
Son Ha Products Exports. -
more
EU to fine steel
cartel for price fixing-sources - European Union antitrust regulators will
this week fine steel companies, including world leader ArcelorMittal, for
operating a cartel, two people with knowledge of the matter said on Monday.
-
more
Russian steelmakers
see US demand supporting prices - Russian steelmakers expect U.S. steel demand
to support prices for the rest of the year despite recent weakness in China
and a soft Eurozone economy, the top two Russian producers said on Monday.
-
more
Court to decide limits
on retaliation ban - The Supreme Court will decide whether a company can
legally retaliate against an employee's friends, relatives or spouse for
the employee's filing of a discrimination claim. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.31/lb
lower, with all base
metals following worldwide equity markets lower. The Euro is trading 6/10
of 1% lower against the US Dollar, adding additional pressure on commodity
traders. NYMEX crude is down nearly 2.2% and at $76.54/barrel. Gold is down
1/3 of 1% and silver is off by 2/3 of 1%. In overnight trading, Asian markets
ended lower with Shanghai down a whooping 4.3%. Europe is trading much lower
this morning, and US futures, at the moment, show a 100 plus point drop in
store for Wall Street. Nickel inventories fell hard again overnight.
Markets were apparently taken off guard by the big drop in China overnight,
and traders are scrambling to sell, while analysts struggle to explain it.
With China the prime driving force behind the worldwide recovery, any trading
panic there is sure to spread.
Edward Meir of MF Global Morning Comments - Metal prices ended higher yesterday,
but were off the day's best levels. The positive close nevertheless looked
suspect in light of a stronger dollar and receding energy prices. US equity
markets also failed to inspire, closing mixed, as the macro numbers out yesterday
failed to ignite much buying. In this regard, personal income rose 0.4% in
May, while spending climbed 0.2% (both in line with estimates), but a rise
in the US savings rate to 4% overshadowed these gains, indicating that consumers
are still not spending freely. In addition, some investors were concerned
about a weekend pledge by G20 nations to halve their deficits by 2013 and
stabilize their debt by 2016, implying that the days of freewheeling stimulus
spending may be over. However, when one considers how much of the various
Western budgets are mandated by law, it will take more than a G-20 declaration
to make real progress on this front, and we would therefore not read too
much into this communiqué. Although the bearish bias on display yesterday
did not derail the advance in metals, it is doing so with a vengeance today.
The weakness started in the Asian markets, where another poor showing in
the Chinese equity market (down 4% on the day) spilled over into metals.
Chinese stocks slumped on account of a large IPO and after the release of
a newly unveiled US-based Conference Board economic index that was revised
to show the smallest gain in five months for April. The April index reading
showed an increase of .3%-- less than the 1.7% gain initially reported on
June 15. Although the Conference Board attributed much of this revision to
an error made in the previous calculation, that was of little comfort to
Chinese investors, who proceeded to dump some of their equity holdings on
growing concern about slowing Chinese growth. The dollar is also contributing
to the weaker tone we are seeing in metals, with the greenback now at $1.2190,
and reaching its strongest level against the Euro since mid-June. Crude oil
prices are buckling as well, off by about $1.80. Along with the bearish impact
of the stronger dollar, the recent storm-induced gains in energy are apparently
being rolled back as well. US stocks are expected to open sharply lower.
... We are $20,000 on nickel, down $650. Prices are above the breakout
line we displayed in yesterday's chart, but are likely to break below it.
We look for further erosion to the low $19,000 mark.(read Ed Meir's complete
morning base metals report
here)
(Dow Jones) The first two vessels carrying Norilsk Nickel's export metal
to the world markets will leave the company's Dudinka port on the Yenisey
River between July 3 and 6, opening this year's summer navigation, the port
authority said Tuesday. Winter navigation ended May 21, and the port has
remained idle, waiting for the ice to break and clear into the Arctic Ocean.
(Yieh) Currently, European stainless alloy surcharges are expected to fall
slightly for July with price gap €190/ton from a month ago. Meanwhile,
Outokumpu has announced to cut its based stainless steel for European market
in July due to weak demand as nickel price continues to drop further.
(AP) Indonesian coal firm PT Dayaindo Resources International and South Korean
firm Chungrim Global Co Ltd plan to build a nickel smelter in Sulawesi, worth
$60 million, in which each party will contribute 50 percent, said Dayaindo's
president director Sudiro Andi Wiguna, adding the new smelter is expected
to operate next year.
(LCM) Zhang Xiaogang, general manager of Liaoning-based Chinese steel producer
Anshan Steel (Angang), has stated that in July many Chinese mills may incur
losses, and thus more and more domestic steel producers will choose to cut
or halt production.
(PT) RUSAL accuses Norilsk Nickel mgmt of board vote manipulation
MDM - The Chicago Fed National Activity Index edged lower to +0.21 in May
from +0.25 in April. Production indicators continued to make strong contributions
to the index in May, while weaker contributions from employment- and
housing-related indicators accounted for the slight decrease in the index
from April.
Stainless Steel
Market Becalmed - Seasonal effects on demand have combined with a fall in
nickel prices to bring about a lull in stainless steel sales. Customers are
attempting to control their inventories around the period of subdued activity.
- more
SMM Exclusive: China's
NPI Metal Output in May Reaches 18.8kt - According to data from SMM, China's
NPI physical output in May were 376.9kt, or 18.8kt of metal output after
conversion. China's NPI physical output was up 51% YoY and down 3.8% MoM.
China's metal nickel output, after conversion, was up 103% YoY and down 6%
MoM. - more
Cuba, Venezuela to
build joint ferronickel plant - Cuba and Venezuela began constructing a
US$700-million ferronickel plant in western Cuba, the official weekly
Trabajadores reported on Monday. -
more
China to Keep Minor
Metals Export Limits, Industry Ministry Official Says - China, facing a trade
probe by the World Trade Organization on raw material export constraints,
will continue to curb shipment and production of minor metals to conserve
resources and limit pollution, an official said. -
more
Courtesy AISI - In
the week ending June 26, 2010, domestic raw steel production was 1,763,000
net tons while the capability utilization rate was 72.9 percent. Production
was 1,123,000 tons in the week ending June 26, 2009, while the capability
utilization then was 46.9 percent. The current week production represents
a 57.0 percent increase from the same period in the previous year. Production
for the week ending June 26, 2010 is down 2.5 percent from the previous week
ending June 19, 2010 when production was 1,808,000 tons and the rate of
capability utilization was 74.8 percent.
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) Emerging-Market Stocks Snap Four-Day
Drop, Currencies Rise on Deficit Plan // Tata May Lure Hyundai, Suzuki Buyers
as India Ends Gasoline Price Control // Bond Market Returning 3.4% in Best
Year Since '05 Amid Concern Rally Over // Tackling China's Local-Government
Debt May Hurt Nation's Growth, CICC Says // Gillard Flexibility on Australia
Mine Tax Revives Labor's Election Chance // Toyota, Nissan, Honda Lead Rebound
in Japan Auto Production on U.S. Demand // Most Asian Stocks Decline; Japanese
Banks Drop on Mizuho's Share-Sale Plan // Italian Bond Spread Widens as European
Nations Auction $13 Billion in Debt // Silver Posting Best Streak Since Hunts
No Matter Which Way Economy Turns // Standard Chartered Slides as European
Sovereign Debt Crisis Slows Revenue // Rally in Europe for First Time in
Five Days // Robert Byrd, Longest Serving U.S. Senator, Dies at 92 //
Obama's Budget Office Puts $3 Billion in U.S. Technology Contracts on Hold
// Alex Gains Strength, May Become Hurricane in 48 Hours // Aflac Sells Entire
Holding of Greek Sovereign Debt for a $67 Million Loss // Debt Distress
Rises as Goldman, JPMorgan Vary on Defaults: Credit Markets
The Euro is presently trading nearly 2/3 of 1% lower against the US Dollar.
NYMEX crude is down 1%, gold is 1-1/3%, and silver is off over 1.8%. Base
metal traders disregarded the beat up Euro today and drove most base metal
prices higher. Indicator chart show nickel traded strong thru most of the
day, with the days upward trend holding intact. Dow Jones reports three month
nickel ended the day at $9.37/lb
, while indicator
charts don't show it ever made it quite that high. Stockpiles of nickel stored
in LME approved warehouses continue to slump, now sitting just over the 125,300
tonne level. Sucden's day old chart shows nickel trading thru last week
(chart here). The Sucden analyst put resistance at the
TL2 line and $20,550/tonne, the both of which were breached in today's trading,
according to the closing the Dow Jones is reporting. And even though the
RSI and SStoch show a market that opened this morning in an overbought status,
nickel traders apparently believe the deficit reducing action taken by many
of the G-20 nations, will have a positive action on long term nickel investment.
IE, the speculators are back. The Baltic Dry Index fell for the 21st consecutive
session, and below the 2500 level. This one took us by surprise as the decline
had slowed to a crawl and it looked like the 2500 level could be the turnaround
point. While the Reuters and the University of Michigan. survey reported
Friday that American's consumer sentiment was at its highest level in two
year, but the Commerce Department reported this morning that the US savings
rate rose to an eight month high. MarketWatch reports "The savings rate rose
to 4% from 3.8%. Households are saving three times as much out of their
disposable incomes as they did just before the recession began in late 2007."
While we tend to agree with those who feel American's will soon forget most
lessons learned during this recession, as in living beyond ones means, the
increase in savings does show that at least for now, uncertainty remains
among many. Employment remains one of the biggest concerns, and weekend newspaper
articles questioning "just how bad this week's report might be', do s little
to instill confidence.
(Reuters) A measure of future U.S.economic growth rose slightly in the latest
week, but its annualized growth rate continued to fall, indicating the economy
is about to slow, a research group said on Friday.The Economic Cycle Research
Institute, a New York-based independent forecasting group, said its Weekly
Leading Index rose to 122.9 in the week ended June 18, up from 122.4 the
prior week, originally reported as 122.5.
RBS tells clients to prepare for 'monster' money-printing by the Federal
Reserve -
more
Ben Bernanke needs fresh monetary blitz as US recovery falters -
more
BIS Warns Central Banks Against Keeping Rates Low for Too Long -
more
Everything You Ever Wanted To Know About An Israeli Attack On Iran -
more
Will We Have Inflation, Deflation, or Hyperinflation? Part 3 -
more
Blackout on environment
law - Papua New Guinea has banned all reporting and public discussion of
controversial environment law amendments which could allow a Chinese miner
to pump waste out to sea, outraging a civil rights group. -
more
Steel Dynamics sees
fits-and-starts 2nd half growth - U.S. steel demand should continue to grow
at a gradual pace for the foreseeable future, but summertime seasonal factors
will likely cause an industry lull in July, said Steel Dynamics Inc Chief
Executive Keith Busse. -
more
China slaps final
anti-dumping duties on EU steel fasteners - China slapped final anti-dumping
duties on steel fasteners imported from the European Union on Monday in a
tit-for-tat battle over trade in nuts and bolts worth hundreds of millions
of euros. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.23/lb
higher, with other
base metals all trading higher. The Euro is not giving commodities much help
this morning, trading nearly 2/10 of 1% lower against the US Dollar. NYMEX
crude is down nearly 6/10 of 1% and at $78.41/barrel. Gold is down 1/10 of
1% and silver is down slightly less than that. In overnight trading, Asian
markets ended higher, with China down over 7/10 of 1%. European markets are
trading higher this morning , and US futures show Wall Street may open slightly
higher. LME nickel ended last week at $8.96/lb
, up from Thursday's
close. LME nickel inventories continue their decline.
Edward Meir of MF Global Morning Comments - Metals rallied to their highest
levels in nearly one month on Friday, led mainly by copper, which gained
almost $200 on the week, and is now closing in on the $7000 mark. There was
no one reason that was behind Friday’s robust move, but we have to suspect
that the surge in crude oil prices due to weather-related jitters in the
US Gulf must have generated some impact. Gains in the US equity markets also
helped the firmer tone, particularly after a compromise agreement was reached
in Congress on new regulations governing the financial sector. The new bill
is quite complicated, and extends the reach of government into a variety
of sectors, but there was a palpable sense of relief by many in the banking
community that some of the more stringent proposals were left out. The
legislation sparked a decent rally in many of the financial stocks on Friday,
although the broader averages still finished mixed. Highlights of the bill
are summarized in a Bloomberg article that can be highlighted by clicking
on the link in our attachment. We think some of the rally's underpinnings
were also laid out last weekend on news that China will let the renminbi
drop slightly in value against the dollar, something we suggested was a distinct
possibility when writing about the Chinese currency in earlier commentary.
Although the renminbi ultimately fell on the day after the announcement was
made (after rising initially), the authorities were likely intervening to
try to control its potential appreciation and limit expectations for future
gains. Nevertheless, we suspect the Chinese currency is on an upward path,
and that further appreciation is not only in the cards, but will likely provide
a measure of support to imported commodities, including many of the nonferrous
metals and almost all the non-ferrous metals. At the G-20 meeting in Toronto
this weekend, President Obama reiterated the importance of letting the Chinese
currency depreciate further, and welcomed China's recent decision to loosen
its trading band. He did emphasize, however, that further gains are expected,
adding that the US will be "watching very closely in the months ahead.”
In related developments, the G-20 said it has endorsed targets to cut deficits
at least by half by 2013, and will also attempt to stabilize debt-to-output
ratios by 2016. We have been relatively positive about metals in recent
commentary, having expressed the view that much of the recent decline was
somewhat overdone and overly influenced by the obsession with the falling
Euro, whose decline, we think, is necessarily not that bad for European growth
prospects. With the euro now stabilizing, a measure of buying has set onto
the commodity markets, as the emphasis has shifted back towards global growth
prospects. In energy's case, legitimate hurricane-related worries are spurring
prices higher as well. Having said that, US macro numbers released last week
seem to be pointing to signs that US growth seems to be decelerating, and
we are therefore quite interested to see what this week’s macro statistics
will show in this regard. .... We are $20,235 on nickel, up $575. Prices
have bounced around the short-term downchannel (marked in red in our chart)
for several days this month, but last week’s move seems to have definitely
lifted values over the line. We look for further gains, with a move to $21,800
possible. (read Ed Meir's complete morning base metals report
here)
(Yieh) Market participants said that the nickel price will probably not rebound
much in a short time and stainless steel market would remain quiet for some
time.
(MB) EU, UK stainless steel scrap prices stable amid softer nickel and tight
supply
(Interfax) Baoshan Iron and Steel Group (Baosteel Group) announced on June
28 that it aims to expand production capacity to more than 66 million tons
and generate a sale revenue of RMB 440 billion ($64.81 billion) by 2015.
(ATA) The American Trucking Associations' advance seasonally adjusted (SA)
For-Hire Truck Tonnage Index decreased 0.6 percent in May, which was the
first month-to-month drop since February of this year. This followed an upwardly
revised 1 percent increase in April. The latest reduction put the SA index
at 109.6 (2000=100).
POSCO
to lower stainless steel prices for July - South Korea's POSCO , the world's
No.4 steelmaker, said in a statement on Monday that it would lower prices
of major stainless steel products by 300,000 won ($246.9) per tonne for July
to narrow the price gap with imports. -
more
Successful ramp-up
of Norilsk Nickel underground mine - For the first time in the mine’s
history, ore production at Severny-Gluboky mine of OJSC MMC Norilsk Nickel
(«Norilsk Nickel» or «the Company») was brought up to
the rated capacity of 500 ktpm or 6 Mtpa. -
more
Europe feels the
chill of a future built on metal - The European Commission, worried about
supply, has produced a study of the resources it regards as critical. -
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) Taiwan to Sign China Pact, Deepening
Trade Ties as Relations Thaw Under Ma // Yuan Gains on Speculation China
Will Allow Appreciation Before G-20 Meets // Most Asian Stocks Rise; Australian
Mining Stocks Advance // French Strike Over Pensions Reform Starts to Disrupt
Rail, Air Services // European Union Is Said to Delay Vote on Hedge Fund
Rules Until September // European Industrial Orders Increase for Third Month
on Intermediate Goods // Greece Sovereign Bond Risk Rises to Record,
Credit-Default Swaps Indicate // European Stocks Fall for Third Day; Greece,
Portugal, Spain Lead Retreat // Mortgage Bonds Rise to `Insane' Highs as
Refinancing Drops: Credit Markets // US Economy: Orders Show Investment Picking
Up, Claims Drop // US Durables Orders Minus Transportation Rose 0.9% // U.S.
Stocks Fall as Greece Swaps Surge to Record//
The Euro is now trading over 4/10 of 1% higher against the US Dollar, having
bounced higher in the last hour. NYMEX crude oil is down 2/3 of 1% and at
$75.84/barrel. Gold is up nearly 8/10 of 1% on renewed safe haven buying,
while silver is up nearly 1-1/2%. Base metals ended in the green, thanks
in part to a stronger Euro. Indicator charts show nickel trading was choppy
today, albeit within a $400/tonne range. Indicator charts show nickel slumped
early, jumped mid day, fell back and then gained toward the end. Dow Jones
reports three month nickel ended the day at $8.80/lb
, but it
added nearly another $.10/lb gain in after market trading. Inventories of
nickel stored in LME approved warehouses continue to fall, and now sit somewhere
between the 126,200 to 126,600 tonne range depending on the report you believe.
Sucden's day old chart shows nickel trading thru yesterday
(chart here). The SStoch and RSI were reporting an oversold
market, so those who trade technically had a signal to buy early in today's
session. The Baltic Dry Index fell for its twentieth consecutive time overnight,
down 13 points to 2,502. The descent is slowing though and its very possible
we could see this losing streak end in the next few sessions. For those who
follow and still believe in the BDI as an early warning sign to the overall
world economy, this descent has been unnerving and a turnaround in the loss
will be welcomed. The Big Picture addressed the BDI today ion its blog
(here).
The Commerce Department reported durable good orders fell 1.1%, its first
decline in six months and largest decline since August 2009. First time jobless
claims fell last week, but the market has its eyes on European sovereign
debt problems again, and is down as of this posting.
(PR) European Nickel PLC is pleased to advise shareholders that the Turkish
President has ratified the new Mining Law and it has been enacted through
its publication in the Official Gazette today. European Nickel has now commenced
the process for the re-issuance of European Nickel's forestry permit.
Halfway Back to Lehman: New Report Shows Financial Conditions Tightening
Sharply -
more
Reagan Revolution Home To Roost -- In Charts -
more
How Many Taxpayer Dollars Will Fannie Mae Spend Punishing Homeowners? -
more
DOT: Vehicle Miles Driven increase in April -
more
New Home Sales collapse to Record Low in May -
more
A Closer Look at the Second Leg Down in Housing -
more
Against The Super-Asinine, The Gods Themselves Contend in Vain -
more
Sudbury safe from
nickel pig iron 'threat' - The threat that Chinese-produced nickel pig iron
poses to Sudbury's nickel producers is overblown, according to mining analyst
Raymond Goldie. -
more
Expect a deficit
Nickel market for next two years - London Metal Exchange (LME) nickel inventory
levels are down 20% from their peak in February and the latest International
Stainless Steel Forum (ISSF) production data suggests that the nickel market
will remain in deficit for 2010 and 2011. -
more
South African
unions warn of power strike over pay - Unions representing about three-quarters
of workers at South Africa's state-owned power company Eskom threatened on
Thursday to call a strike over pay, potentially disrupting electricity supply
during the World Cup. -
more
In honor of
the new Australian Prime Minister, we share this short video with you
(courtesy an Australian reader)
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.01/lb
higher, and off session
highs, with other base metals mixed. The Euro is trading 1/3 of 1% lower
against the US Dollar, and also off earlier highs. NYMEX crude oil is down
2/3 of 1% and at $75.85/barrel. Gold is down 2/3 of 1% while silver is down
nearly a full percent. In overnight trading, Asian markets ended quiet and
slightly lower, with China much the same. European markets are trading lower
this morning, and US futures show Wall Street may open bearishly. Nickel
inventories fell overnight.
Edward Meir of MF Global Morning Comments - no report this week
(Yieh) Japanese export price of nickel-bearing stainless scrap to China dropped
to US$1,938/ton last weekend, which is the lowest price since August, 2009.
(MB) BHP's Cerro Matoso will adapt FeNi furnace to cope with lower Ni content
(MP) U.S. ferro-chrome prices remain under pressure on slowing demand
(China) Rebate removal to be hard on steel mills -
more
Futures-Trading Curbs May Hurt Commodities, UN Says -
more
Nickel LME
Inventories Fall Sharply, Putting Nickel Miners on Investor Radar - London
Metal Exchange (LME) nickel inventory levels are down 20% from their peak
in February and the latest International Stainless Steel Forum (ISSF) production
data suggests that the nickel market will remain in deficit for 2010 and
2011. -
more
Miner finds
nickel deposit in Surigao - Canadian miner Mindoro Resources Ltd. has found
nickel deposit in its Agata mining project in Surigao del Norte in Mindanao.
-
more
Mining
applications ‘frozen’ after protest in Philippines - Six hundred
indigenous people and farmers took to the streets on Palawan Island in the
Philippines on June 7, to protest against plans to mine nickel on their land.
-
more
Anti-Posco agitators
take out rallies in Paradip - Anti-Posco protesters observed a ''black day''.
-
more
Australia's
first woman PM an old-school Labor leader - Australia's new prime minister,
Julia Gillard, has become the first woman to lead her country, but her leadership
style evokes the past, not the future. -
more
New Australia PM pledges to listen to miners on tax - Critics of Australia's
40 percent mining tax proposed under former Prime Minister Kevin Rudd may
see some of its sting removed after the country's new leader Julia Gillard
signalled a willingness to negotiate a compromise. -
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) Euro Near 1-Week Low Versus Yen on
Speculation Global Recovery Will Stall // Toyota Halts Output at China
Plant After Supplier Hit by Strike // China Won't Increase Interest Rates
This Year, According to Morgan Stanley // Vegas Sands Targets Asia for 90%
of Revenue as Mainlanders Return to Macau // Asia Millionaires Match Europe
for First Time, Merrill Says // Asian Stocks Drop Most in Two Weeks
on U.S. Home Sales // BOE Was Split on Rate as Sentance Made First Push for
Stimulus Withdrawal // European Stocks Drop for Second Day; CRH, HeidelbergCement
Lead Decline // Iceland Cuts Benchmark Interest Rate to 8% as Krona Gains,
Inflation Eases // Emirates Growth Splurge Rattles Long-Haul Rivals // Europe
Manufacturing, Services Expansion Slows, Indicating Recovery Easing // Sales
of U.S. New Houses Plunge to Lowest Level on Record // Junk Bonds Revive
on Bernanke `Sub-par' Economy: Credit Markets
The Euro is trading nearly 2/10 of 1% lower against the US Dollar, after
record low new home sales stunned the market. NYMEX crude oil is down nearly
2-1/2% and just under the $76/barrel level. Gold is down nearly 1/2 of 1%
and silver is off 1.6%. Base metals ended the session mostly lower. Indicator
charts show nickel opened higher but spent much of the day sliding until
it started a slight recovery a few hours before close. Dow Jones reports
three month nickel ended the day at
$8.73/lb, its lowest close
since the 10th. Inventories of nickel stored in LME approved warehouses slipped
again overnight, with no inbound shipments reported yet again. The
overall total now sits just over the 127,400 tonne level. Life has returned
to the research department of Sucden and they have finally updated their
nickel day old nickel chart
(chart here). The chart shows nickel trading doing a big
fat nothing over the past week. The Baltic Dry Index fell for its nineteenth
straight session overnight, down another 32 points. Some economists are worried
by the BDI numbers - see "Freight fright *alert*"
here. The big news for the day was China cutting export
tax rebates on numerous non ferrous items. As far as nickel goes, China is
a net importer, and exports very little nickel, so the impact here should
be minimal. The impact to the industry, however, will come in the Chinese
stainless steel industry and its exports. Already saddled with numerous anti
dumping duties against them, the most recent by Russia just this week, this
could slow stainless steel exports from the country. In light of a worldwide
recovery that is suddenly showing evidence of someone having hit the pause
button, this is not good news for Chinese exporters, but will be welcomed
by worldwide stainless steel producers. Sales of new homes fell 33%
in May after a US government subsidy ended, far worse than economists expected.
Wall Street is waiting on the wording in the Fed statement to be released
later, as no hike in interest rates is expected for quite some time.
(Dow Jones) India's steel imports from China will likely fall as the East
Asian nation is proposing to withdraw an export incentive to its steelmakers,
which would also lead to the metal's price rising, said Atul Chaturvedi,
steel secretary for the South Asian country Wednesday.
Societe Generale - Nickel prices are expected to rebound in the fourth quarter
on a re-acceleration in demand after the seasonal summer slowdown. Nickel
prices are forecast to average $26,385/t in the fourth quarter.
Economists React: ‘Next Few Months Will Be Tough’ for Housing -
more
US Ranks Last among Seven Countries on Health System Performance -
more
Tomgram: Michael Klare, The Coming Era of Energy Disasters
- more
Two Opposing Opinions On The Yuan Depegging -
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
lower, and off session
highs, with other base metals trading mixed and quiet. The Euro is trading
slightly higher against the US Dollar, and off session highs. NYMEX crude
futures are down slightly and at $77.73/barrel. Gold is up 1/3 of 1% and
silver is up 6/10 o f1%. In overnight trading, Asian markets ended lower,
with China off moran than 9/10 of 1%. European markets are trading slightly
lower this morning, and US futures show Wall Street could open higher. Nickel
inventories fell again overnight.
Edward Meir of MF Global Morning Comments - no report this week
(Dow Jones) Standard Bank - "The background of steadily declining LME stocks
have helped support prices, with nickel appearing to have now built a solid
base around $19,500 following the selloff seen in early June."
(Yieh) Japanese seven major stainless steel mills have produced around 325,000
tons in April, compared with last month's 333,000 tons.
(Interfax) The Chinese government has decided to cancel export tax rebates
on certain steel and nonferrous metals products, effective from July 15,
according to a June 22 announcement from China's Ministry of Finance.
(SC) Following the US, Russia has started cracking down on the steel export
from China. The Russian Industry and Trade Ministry decides to collect a
29.9% anti-dumping duty from Mainland China's biggest stainless steelmaker,
Taiyuan Iron and Steel (Group) Co., Ltd. (TISCO).
Productions Of Nickels
In Japan For Jan. - Apr. 2010 Increased Considerably Compared To That In
2009 = Output Of Ferro-Nickel Increased by 21%, That Of Nickel Metal Also
Increased By 29% - The quantities of nickels produced in Japan in the first
4 months (January - April) of 2010 were known in last week. -
more
Solomons' Isabel
Gets Nickel Advisory Board - The Minister of Mines, Energy and Rural Electricity,
David Day Pacha has appointed members of an Isabel Nickel International Tender
committee. -
more
Zapolyarny mine
at full capacity - The new underground mine ”North deep” has reached
its planned production of 500,000 tons of ore per month. -
more
Bulk ferroalloys may
see fourth-quarter spike if demand rebounds - While bulk ferroalloys are
under downward pressure in the US amid some evidence that US steel production
will experience a seasonal slowdown in the third quarter, prices could be
set for a major rebound when consumers start buying fourth-quarter requirements,
market participants said Tuesday. -
more
US Steel sees industry
comeback, costs crimp growth - United States Steel Corp, one of the largest
U.S. steel producers, thinks the worst of the steel industry's downturn is
over, but sees the high cost of raw materials used to produce the metal as
having an inhibiting impact on profitability. -
more
ThyssenKrupp Ramps
Up for Production in Alabama - July will mark the start-up of steel production
at ThyssenKrupp's 3,500-acre site near Mobile, Ala. -
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.
Vale, Sudbury union making progress -mediator - Mediated talks aimed at ending
a nearly year-long strike at Vale's Sudbury operations have made significant
progress and will continue, the mediator said on Tuesday. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) As Chinese Wages Rise, Machines Replace
Migrant Workers // Recovery Work Resumes in Congo After Sundance Plane Wreck
Found // Yen Strengthens Most in Two Weeks on Concern Over European Banks'
Funding // Yuan Falls Most Since December 2008 // Lowest Ship Rates Since
2005 Boost LNG Stored in Tankers: Energy Markets // Asian Stocks Fall for
First Time in Nine Days on Europe Concern // German Business Confidence
Unexpectedly Increases // Oil Declines as Optimism Fades Over Boost to Global
Economy From Yuan Plan // Osborne Intends to Eliminate Britain's `Structural'
Budget Deficit by 2015 // U.K. 2010 Economic-Growth Forecast Cut to 1.2%
This Year, 2.3% Next Year // Merrill Lynch Says Markets `Overreacted' on
European Sovereign Debt Crisis // Central Banks Show Euro Losing Reserve
Status as Loonie Gains // European Stocks Drop, Ending Nine-Day Rally
// S&P 500's Retreat After 50% Recovery Signals Caution to Technical
Analysts // Bank Failures Through 2014 Projected to Drain $60 Billion
From FDIC Fund // Geithner Says Credit Access Improving, May Aid Growth //
The Euro has erased many of its earlier losses and is now trading less than
1/10 of 1% lower against the US Dollar. NYMEX crude oil is trading flat at
$77.81/barrel. Gold is up 2/3 of 1% while silver is higher by over 1/1%.
Base metals ended the session mixed. Indicator charts show nickel opened
lower, climbed into the green late, before falling back. Dow Jones reports
three month nickel ended the day at $8.89/lb, but we feel it was more like
$8.94/lb
. Either
way it was a lower close. Inventories of nickel continued to slide overnight,
with stockpiles of nickel stored in LME approved warehouses now standing
at just under the 128,200 tonne level. For a fifth straight session, no inbound
shipments of nickel were recorded. We reported yesterday that refined nickel
imports into China were down for the year, but imports of laterite nickel
ore, used in the production of pig nickel, continues to rise. In May China
imported 2,014,620 kt of nickel ore, primarily from Indonesia and the
Philippines. This compares to 1,847,443 kt last month and only 1,073,383
kt in May of last year. It appears Russia is about to slap a pretty healthy
anti-dumping tariff on Chinese and South Korean stainless steel. China has
become the target of a multitude of anti-dumping claims, some enacted and
some still in an investigative status, from countries around the world including
the US, Europe, and India among others. Speaking if Russia, we expect to
hear Norilsk will resume shipping nickel from their Dudinka port any day
now, after annual flooding shut the port down on the 26th of May. The mediator
between Vale and USW Local 6200 reports a lot of progress was made in
negotiations over the past four days, which means the 11 month old strike
there may be nearing an end. Chances are good that if the Sudbury USW settles,
the Voisey's Bay unit will follow.
(Dow Jones) Talks between Brazilian miner Vale SA (VALE) and the United
Steelworkers union to end an 11-month-old strike at Vale's nickel operations
in Ontario have stretched into a fourth day and will continue Tuesday, the
government-appointed mediator said Tuesday.
G20 Still Challenged By Global Imbalances, Courtesy Of Europe -
more
China to scrap export
rebates despite yuan rise - China will scrap tax rebates to exporters of
dozens of commodities including key steel products, corn starch, rubber products
and ethanol, the finance ministry said, while they also face a rise in the
yuan. -
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
, with most base metals
trading lower this morning. The Euro is trading 4/10 of 1% lower against
the US Dollar, as the yuan jump yesterday wears off. NYMEX crude oil is down
1% and at $76.78/barrel. Gold is up nearly 2/10 of 1% and silver is slightly
higher. In overnight trading, Asian markets ended lower with China up 1/10%.
European markets are trading lower this morning, for the first time in nine
sessions, and US futures show Wall Street may open lower after ending slightly
lower yesterday. Nickel inventories continue their slide.
Edward Meir of MF Global Morning Comments - MF Global reports no daily reports
this week
(Interfax) In the first five 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 June 21.
(Interfax) The Russian Industry and Trade Ministry is proposing anti-dumping
duties of 39.1% on Chinese and 62.8% on South Korean stainless steel, the
ministry says on its website in the results of an anti-dumping investigation.
(Dow Jones) The Russian Industry and Trade Ministry said Tuesday it has put
a proposal to the government that a five-year, anti-dumping import tax on
nickel-containing steel roll imported from China, South Korea, Brazil and
South Africa be imposed..... The Industry and Trade Ministry is proposing
a five-year 39.1% import tax on nickel-containing steel roll from China,
except for that produced by Shanxi Taigang Stainless Steel Co, which will
incur an import tax at 29.9%.
(Dow Jones) Australia's production of base metals has fallen during 2010
due to the after-effects of the financial crisis and project problems but
will recover in the year to June 2011, the Australian Bureau of Agricultural
and Resource Economics said Tuesday. Abare saw aluminum production down 3%
in 2010, nickel down 11%, copper falling 10%, and zinc down 6%.
(SBB) Ferro-chrome market slows as European holidays approach
Commodity Gains on Yuan May Be ‘Knee-Jerk’ Move, StanChart Says
-
more
Stainless steel
remains weak on volatile nickel and soft demand - From insiders, stainless
steel in Nanhai is unlikely to rise sharply in the short run, despite the
ever rally in the past one week. -
more
Nickle pig
iron - What has a pig got to do with nickel and iron? -
more
Eti Krom / Turkey
Enters Into Reduction In Production Of Ferro-Chrome = Exports Of Chrome Ore
From Turkey Will Come To Standstill For Regulations By Turkish Government
- Mr. Robert Yuksel Yildirim, who is President & CEO of Eti Krom Inc.
as a leading producer of chrome ore and ferro-chrome in Turkey, announced
on the 15th of June that, following ferro-chrome producers in South Africa
(Xstrata and Samancor Chrome), the Company has decided to reduce from the
1st of July its production of ferro-chrome at plants in Turkey and Sweden.
-
more
S.Korea POSCO
raises steel prices 6 pct from July - South Korea's POSCO said it would raise
prices of its benchmark steel products by a less-than-expected 6 percent
from July, but the increase would not be enough to cover higher raw materials
prices. -
more
Rosspetsplav plans
to raise chrome, alloy output - Rosspetsplav, a Russian minor metals and
alloys producer, said it aimed to raise output after a drastic decline caused
by the economic slump and was considering expansion in the Democratic Republic
of Congo. -
more
Goldman Cuts Three-Month
Copper, Aluminum, Zinc Target on Europe, China - Goldman Sachs Group Inc.
lowered its near-term price forecasts for copper, aluminum and zinc as markets
remain “fragile” on concerns that the Europe debt crisis may hamper
growth and as China moves to cool its economy. -
more
Australia revises
up most metals export forecasts - Australia on Tuesday pushed up forecasts
for key commodity exports next year, citing rising world demand for iron
ore, copper, nickel and other industrial staples as more economies outside
Asia shake off remnants of the global financial crisis. -
more
Mining industry
mourns Sundance deaths - The mining industry is mourning the loss of respected
industry veterans, who were killed in the Sundance plane crash in West Africa.
-
more
Courtesy AISI - In
the week ending June 19, 2010, domestic raw steel production was 1,808,000
net tons while the capability utilization rate was 74.8 percent. Production
was 1,123,000 tons in the week ending June 19, 2009, while the capability
utilization then was 46.9 percent. The current week production represents
a 61.0 percent increase from the same period in the previous year. Production
for the week ending June 19, 2010 is up 0.3 percent from the previous week
ending June 12, 2010 when production was 1,803,000 tons and the rate of
capability utilization was 74.6 percent.
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) Yuan Climbs Most in 20 Months
as China Signals End to Peg; Forwards Jump // South Korea Sees Risks in China
Yuan Move Hailed by Thailand, Philippines // China's Hu Buys Time at G-20
With Yuan Announcement // Asian Stocks Climb on Speculation Yuan Policy Change
Will Bolster Growth // Gilt Sales to Decline 28% Next Year as Osborne Tames
Deficit, Dealers Say // Trichet Says Deficit Offenders May Lose Voting Rights
// Lehman Appeal Over Segregated Funds May Cut Some Creditor Payouts in Half
// Gold Gains to a Record on Buying From Investors Seeking to Protect Wealth
// European Stocks Climb for Ninth Straight Day After China Relaxes Yuan
Peg // China Backs Obama as Treasury Holdings Rise to $900 Billion // NBC
Stations Agree to Back Comcast Deal After NFL, Olympics Vow // Fed Says Review
Finds `Deficient' Pay Practices at Many Banks // Stocks, Commodities Climb,
Treasuries Fall on China Yuan Move
The Euro is currently trading over 4/10 of 1% lower against the US Dollar,
after opening higher. NYMEX crude oil is now trading just a trace higher,
and at $77.25/barrel. Gold is down nearly 1-1/4% and silver is off nearly
2%. Base metals ended the session higher, but well off session highs. INdicator
charts show nickel opened higher early, but spent the day in a slow gradual
decline. For the day, Dow Jones reports three month nickel ended at
$9.00/lb
. Stockpiles
of nickel stored in LME warehouses took another 4 digit hit over the weekend
and now sit just under the 128,800 tonne level. No inbound shipments were
recorded, and multiple large outbound were made. This either shows nickel
users are building up inventories due to an increase in demand, or are
stockpiling due to a lack of faith that nickel prices will stay low much
longer and a belief they most likely will not fall much lower. The Baltic
Dry Index continues to tumble, down another 93 points. Nickel opened high
early on, but spent most of the trading session in a gradual decline, as
the falling Euro overrode the news that China was unpegging the yuan. The
decision, when and if it ever actually affects the value of the yuan, should
help exports into China by making them less expensive to Chinese buyers.
This helps commodities as China is already the single largest buyer of many
base metals already. It will also make exports out of China more expensive.
Thus, the export driven economy of China could cool a little because of this
decision. Imports of refined nickel is already cooling, with figures released
by Chinese Customs today showing imports into China slumped over 57% in May
compared to May 2009. For the year, they are down 4.78%. The World Steel
Association reported worldwide steel production ran nearly 10% higher this
May over last. Dow Jones is reporting that the plane carrying Australian
Ken Talbot and five other Australian mining executive among 11 passengers
on west Africa, has been found, with no survivors. Today is the summer solstice
north of the equator, making today the longest day of 2010. For those 'down
south', today marks the shortest day of the year.
(Dow Jones) Global crude steel production rose 29.1% on the year in May to
124 million metric tons, surpassing levels seen in May 2007 when demand was
robust and untouched by the financial crisis, the World Steel Association
said Monday. World crude steel production in May 2010 was 9.9% higher than
in May 2007, the association said in a statement.
(Dow Jones) Rescuers have found the wreckage of a missing plane carrying
an Australian mining tycoon and 10 other foreigners, Cameroon's information
minister told AFP Monday, adding that there were no survivors.
(SMM) Base metal price trend has a close correlation with RMB movement. Ever
since the RMB exchange rate reform in July 2005, RMB versus the US dollar
fell below significant level of 1:8 and 1:7 consecutively. From the 2H 2008
till now, RMB exchange rate had moved stably at 1:6.8. During those RMB exchange
rate fluctuation periods, Base metal prices also experienced violent movements.
It can be seen that Shanghai metals had gradually entered bull market since
July 2005, which was mainly attributed to influx of large amount of hot money,
causing ample liquid enter into equity and commodity markets and causing
an enormous economic bubble in 2007 in China. In contrast, when RMB ceased
to appreciate in August 2008, base market prices plummeted and didn’t
bottom out until the government adopted an extremely loose monetary policy.
In this context, if RMB continues to appreciate, a similar ripple effect
like the case from 2005 will be triggered again, and the impact from hot
money on Chinese economy will undoubtedly pass on to base metal markets.
(YH) POSCO, South Korea's leading steelmaker, said Monday that it has suspended
negotiations to take over Thainox Stainless Plc. due to political unrest
in Thailand. "Due to political situations, negotiations have been suspended,"
POSCO said in a regulatory filing.
Further Reform the RMB Exchange Rate Regime and Enhance the RMB Exchange
Rate Flexibility -
more
Number of the Week: Americans Defaulting on Foreigners -
more
Global steel output
surges 29%: trade body - Global steel production surged 29 percent in May
from the level in May 2009, as output exceeded levels before the economic
crisis depressed demand, the World Steel Association said on Monday. -
more
Churches rejoice
at ban on open pit mining in Philippine province - Leaders of the local Catholic
Church hierarchy in the Philippine province of South Cotabato have joined
with environmental and human rights groups in welcoming a ban on open pit
mining. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.22/lb
higher, with all London
traded base metals trading higher. The Euro and US Dollar are trading nearly
even at the moment, with the Euro having a slight edge but slipping. NYMEX
crude oil is up over 1-1/2% and at $78.40/barrel. Gold is up 1/4 of 1% and
silver is 1.2% higher. In overnight trading, Asian markets ended higher,
with China up over 3% on the China Central Bank's yuan currency flexibility
decision. European markets are trading higher, and US futures show Wall Street
welcomes the Chinese decision. Nickel inventories fell over the weekend.
Edward Meir of MF Global Morning Comments - No MF Global report this week
(Yieh) Affected by slack demand for stainless steel, Posco has decided to
cut its production for July and August roughly by 10%. For Taiwanese stainless
steel mills, Yusco is going to reduce in line with Posco by around 15~20%
if orders are deficient. However, Tang Eng said they don’t consider
declining output recently because their capacity utilization has reached
about 80%.
(MB) Sharp falls in LME nickel prices saw China’s imports of refined
nickel fall for a second month in May.
(JMB) Ni stainless steel bar/ Kanto market prices rise by 30 thousand yen
Vale appears
untouched over acid spill in New Caledonia lagoon - Time appears to have
run out for legal action against the Vale New Caledonia nickel company in
New Caledonia. -
more
Market Tendency On
Imports Of Ferro-Alloys At 15th June 2010 = Reduction In Production Of Stainless
Steel Will Influence On International Prices Of Special Ferro-Alloys - The
market tendency by item on imports of ferro-alloys into Japan at the 15th
June of 2019 is as follows -
more
POSCO says talks
over Thainox temporarily halted - South Korea's POSCO, the world's No.4
steelmaker, said on Monday that its talks to acquire Thainox Stainless Pcl
are temporarily on hold, with no decisions made. -
more
Crews comb area
for missing plane with Australian executives - Air and ground crews scoured
through harsh terrain in west Africa on Monday after a plane carrying Australian
mining executives went missing over the weekend. -
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) Yuan Forwards Advance as Appreciation
Calls Mount Ahead of G-20 Meeting // Toyota China Supplier Workers Strike
as Labor Unrest Spreads Beyond Honda // Bank of Japan's Shirakawa Sees Chinese
Bubble Risk as Economy Strengthens // Stocks Advance in Europe, Asia as Recovery
Gathers Pace; Yen Strengthens // Gold Climbs to Record on Concern Debt-Cutting
Measures Will Stifle Growth // MasterCard Tale of Two Europe's Echoed in
Stocks as Consumers Keep Spending // U.K. Budget Deficit Narrower Than Forecast
as Growth Improves Tax Revenue // HSBC Said to Raise $3.4 Billion in Biggest
Perpetual Bond Sale Since 2008 // European Stocks Gain for Eighth Straight
Day; BBVA, Santander Lead Advance // Citigroup Looking Past Volcker Seeks
$3 Billion for Hedge Fund, LBO Unit // Greenspan Says U.S. Debt Near Limit,
Is at Risk of Rise in Long-Term Rates // BP Credit Rating Cut Three Levels
by Moody's to A2, Remains Under Review // Treasury, Geithner to Be Given
Expanded Powers in U.S. Financial Overhaul // Bank of America, JPMorgan Debt
Sales Show Contagion Ebbing: Credit Markets // Stocks Fluctuate on Options
Expirations, S&P 500's Quarterly Rebalancing
The Euro is trading 2/10 of 1% lower against the US dollar at the moment
and has been fairly docile today. NYMEX crude oil is now trading 1/4 of 1%
higher and near $77/barrel. Gold is up 1/2% and at a new record high, while
silver is nearly 2-1/2% higher. Base metals ended the session lower. Indicator
charts show nickel traded in about a $500 tonne range today, with the high
coming first, then the days low, followed by some recovery and choppy stagnation.
Dow Jones reports three month nickel ended the day at
$8.88/lb. For the week ,nickel
ended up $.29/lb, and considering the last 4 sessions have been losers, you
can tell when the weeks gains came. Inventories of nickel stockpiled in LME
approved warehouses took a big hit overnight, and now sit just under the
129,800 tonne level. For the third straight day, all movement amongst the
warehouses were limited to outbound shipments, with no receipts arriving.
The Baltic Dry Index continues to slide as well, down another 90 points.
This week of 4 losing sessions follows a week with four gainers. For the
moment at least, nickel appears to have stalled. Have a restful and safe
weekend!!
Norilsk Nickel May
Fall on Metal Outlook - Despite a supply deficit during the first four months
of 2010, we anticipate nickel prices to decline during 2010 on demand concerns
and supply additions. -
more
P474-M nickel
ore mining project gets gov’t perks - The Board of Investments (BoI)
had approved the application of Marcventures Mining and Development Corp.
for incentives on its proposed P474-million project to mine nickel ore in
Cantilan, Surigao del Sur with projected capacities of up to 800,000 wet
metric tons per year. -
more
'People left powerless'
by new resources laws - The Papua New Guinean government has passed controversial
legislation to protect resource projects from delays caused by environmental
challenges. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.18/lb
lower, with all London
traded base metals lower. The Euro is trading less than 1/10 of 1% lower
against the US Dollar, adding some pressure to commodities. NYMEX crude oil
is down 1.4% and at $75.71/barrel. Gold is up 1% on safe haven buying
and in record high territory, while silver is over 1-1/2% higher. In overnight
trading, Asian markets ended slightly higher, with China closing down 1.7%.
European markets are just slightly higher this morning and futures show an
uncertain opening for Wall Street. Nickel inventories took a big hit overnight.
Edward Meir of MF Global Morning Comments - Metals slumped to a one-week
low yesterday, shrugging off a surging Euro, and focusing instead on mixed
US macro data. In this regard, latest US weekly initial claims numbers rose
to 472,000, coming in well above estimates of 450,000, while continuing claims
increased to 4.571 mln from 4.483 mln. The numbers clearly indicate that
firms still remain uneasy about hiring in the face of a tepid demand outlook.
In addition, the Federal Reserve Bank of Philadelphia's June index of business
activity in the Mid-Atlantic area plunged to 8.0, from 21.4 in May, far below
the 21 reading expected. Even inflation data caused some concern after a
CPI report showed May prices falling by 0.2%, double what was expected, and
clearly a sign of possible deflation lying ahead. Lastly, the index of leading
economic indicators came in at .4%, continuing a string of monthly increases
(14 in a row) but nevertheless falling slightly short of forecasts.
Interestingly, the Euro remained strong all day yesterday, even pushing past
$1.24 at one stage after the successful Spanish debt auction, but in what
was obviously different from recent action, the stronger tone in the Euro
failed to spark either the metals or the US equity markets. Investors are
obviously now less focused on currency and more on the US growth picture,
where manufacturing seems to be doing relatively well, but the labor and
housing sectors are still struggling. Metal prices are lower again as of
this writing, again ignoring the Euro, which is holding steady at $1.2365.
We do not expect to see anything new today given that metals have had a good
run higher over the past week, and are likely going to remain confined with
their trading ranges for the time being. Moreover, with nothing in terms
of US macro data out today, we likely will get more direction next week when
more numbers come out. .... We are $19,400 on nickel, down $400, and quiet.
(read Ed Meir's complete morning base metals report
here)
(Yieh) Because of the difficulty in stainless steel export, South Korea’s
Posco decided to cut the output in July and August this year. Yusco is
considering cutting the stainless steel output as well and will probably
cut the production by 15 percent.
(Interfax) In a bid to reduce emissions, China's State Council announced
on June 17 that the government will not allow the construction of any new
steel-making facilities before the end of 2011.
(CK) Last month, China's average daily crude steel output was 1.81 million
tons, down 1.95% from 1.85 million tons in April, yet still standing at the
second place in history. Based on the monthly growth, China's annual steel
output may hit 656 million tons in 2010.
(SSY) Europe’s second largest steel maker ThyssenKrupp Stahl has announced
it will reduce 10% of finished steel (hot strip) production in the 3q10 to
allow maintenance in Bochum and Duisburg, Bloomberg reported. In 2009, TKS
produced 11 Mt of crude steel.
(AL) Japan's crude steel output surged 50.2 percent in May from a year earlier
to 9.73 million tonnes, the highest since October 2008, powered by robust
exports to other Asian countries.
(CCR) China's National Energy Bureau said that China's power consumption
in May was 348 billion kWh, up 20.8% year on year, down 2.3 percentage points
month on month. According to statistics released by the authority, China
consumed 1.66 trillion kWh of electricity in the first five months of 2010,
up 23.3% from the same period of last year.
(TCB) The Conference Board Leading Economic Index®(LEI) for the United
States increased 0.4 percent in May, following no change in April, and a
1.4 percent rise in March. -
more
WB predicts 9.5% growth for Chinese economy -
more
Elliot Wave predicts triple-digit Dow in 2016 -
more
Japan Produced 265,881
Tons Of Stainless Steel Products In April 2010 = Decreased By 2% From That
In March, Both Quantities Of Cr And Ni Based Products Had A Decline - According
to the steel statistics released on the 14th of June by the Ministry of Economy,
Trade and Industry, the quantities of stainless steel products (hot-rolled
products) produced in Japan in April of 2010 and broken down by kinds of
stainless steel were as per the table shown below. -
more
Stainless Steel Wire
Rod from Italy, Japan, the Republic of Korea, Spain, and Taiwan:
Continuation of Antidumping Duty Orders -
more
Russia's Norilsk
looking to sell Australian assets - Russia's Norilsk Nickel, the world's
largest palladium and nickel miner said it had received an offer for some
of its Australian assets, and that it planned to proceed with plans to divest
them. -
more
High Indian coking
coal bids discarded; Australian spot slips - Spot Australian coking coal
slipped Thursday, after high bids by Indian users reported to Platts Wednesday
were dismissed by other market participants as unrealistic and above market
value. -
more
Mining Deals
Plunge in Australia After Rudd Tax Plan - Mining takeovers in Australia,
the biggest shipper of iron ore and coal, are set to fall to a five- year
low after government plans to increase tax on the industry kicked up a hail
of protest from the world’s biggest producers. -
more
Northern Europe
Steel Prices Have Peaked - Prices for third quarter flat products contracts
in Northern Europe will be considerably higher than those set for the April-June
period. -
more
S.Africa union
delays power strike threat - South African electricity workers gave mediators
three more days on Friday to resolve a pay dispute with employers and avert
power cuts during the World Cup. -
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) Japanese Companies Join U.S. in Stockpiling
Cash as European Crisis Brews // BP's Gulf Spill Fuels Australian Opponents
to Deepwater Drilling for Oil // Macquarie Loses Head of U.S. Equity
Capital Markets Rossman, Four Analysts // Asian Stocks, Metals Drop on U.S.
Housing Data; Yen Strengthens on Spain // BP Rebounds After Scrapping Dividend
in Deal to Pay for Spill; Swaps Slide // BP Bonds Escape Distressed List,
Trade as Junk; Gross Buys: Credit Markets // Putin Deputy Shuvalov Says Easy
Money Should Stay Away From Russian Stocks // Spain Sells Maximum Target
at Government Debt Auction; Bonds Rise on Sale // U.K. Retail Sales
Rose More Than Estimated in May on Wide-Screen TV Demand // EU Vows to Disclose
Bank Stress Test Details, Rebuffing Industry Concern // European Stocks Advance
for Seventh Day as Spain Sells Bonds, BP Rallies // Swiss Parliament Approves
UBS Tax Agreement With U.S., Avoiding Referendum // U.S. Economy's Expansion
Creates Little Job Growth as Inflation Controlled // Jobless Claims
in U.S. Unexpectedly Increased 12,000 Last Week to 472,000 // Stocks in U.S.
Halt Global Rally; Treasuries, Gold Gain on Economy Concern
The Euro continues to trade higher against the US Dollar, up 1/3 of 1% and
off earlier highs. NYMEX crude is down 1-3/4% and at $76.33/barrel. Gold
is up 1-1/4% and silver is higher by more than 1.6%. Base metals all ended
the session. Indicator charts show nickel started much lower, climbed for
much of the morning, then fell on the Philly Fed report. Dow Jones reports
three month nickel ended the day at
$8.98/lb, its first close
below $9 this week. Stockpiles of nickel stored in LME approved warehouses
fell overnight and now sit just over the 131,000 tonne level. For a second
consecutive day, warehouse registered no inbound shipments, and only outbound.
Outbound shipments slowed in yesterday's report, but picked back up in today's.
Cancelled warrants have remained above the 6% level all week. The Baltic
Dry Index continues to sink, down another 109 points overnight and down 1,425
points from its May 26 recent high of 4,209. US markets got hit with a couple
of pieces of bad news early this morning. New jobless claims unexpectedly
rose and the Philly Fed manufacturing index took a dive in June. While the
gauge still reflects expansion, the reading of plus 8 was far less than expected
and well off May's 21.4. A similar report for the New York area was more
positive, earlier in the week, showing expansion increased from 19.11 in
May to 19.57 this month. In Europe, the Spanish bond sale sent a sigh
of relief thru the markets.
Interactive Map: Where Americans Are Moving -
more
Deep Global Recession, Only Moderate Recovery -
more
Saving industry
needn't pit sentiment against machismo - There's something sensual about
steel. The other day I went to see smoke, sparks and sweat: industry as it
ought to be, raw metal pounded and sliced. -
more
Merger of
Rusina Mining, European Nickel all set - Australia's Rusina Mining NL said
in a disclosure that court orders had formalized a merger that would pour
huge capital and a world-class processing technology into the Acoje nickel
project in Zambales. -
more
Rio Still
Complaining - Rio Tinto has stepped up its attacks against the proposed new
Federal mining tax. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.13/lb
lower, with all London
traded base metals lower this morning. Nickel is trading off morning lows
and stalled. The Euro is trading nearly 1/2 of 1% higher against the US Dollar.
NYMEX crude oil is down nearly 2/3 of 1% and at $77.19/barrel. Gold is up
8/10 of 1% and silver is higher by 6/10 of 1%. In overnight trading, Asian
markets ended slightly higher, with China down nearly 6/10 of 1% its first
day back from a three day holiday. European markets are trading higher this
morning after Spain sold 3.5 billion euros ($4.3 billion) of bonds easing
debt payment concerns. Futures show a higher opening for Wall Street.
Nickel inventories continued their slide overnight.
ISSF Stainless Crude Steel Production 2010 -
pdf here
Commodity/Economic Comments
Edward Meir of MF Global Morning Comments - LME metals lost modest ground
yesterday in rather listless trading after mixed US macro data. In this regard,
May US industrial production rose more than expected, up 1.2% on the month,
and coming in well ahead of the .8% increase forecast. On the negative side,
housing starts fell by 10% month-over-month, substantially lower than estimated.
Building permits also declined to a one-year low, with single-family home
starts suffering their biggest drop since 1991. However, it was hard to know
how bad the housing numbers actually were, since some of the decline was
attributable to the termination of the homebuyers' tax credit. The weaker
tone in metals is picking up pace in today's action, where we are seeing
modest declines across the board. The Euro is surging once again, now trading
at just under $1.24, but obviously failing to spark any buying interest in
either metals or energy for that matter, where prices are also lower on the
day. Despite the softer tone, we maintain our view that most commodity markets
are still on track to push slightly higher, with the Euro and the US equities
likely providing leadership in this regard. .... We are $19,750 on
nickel, down $290. (read Ed Meir's complete morning base metals report
here)
(Yieh) Because of the difficulty in stainless steel export, South Korea’s
Posco decided to cut the output in July and August this year. Yusco is
considering cutting the stainless steel output as well and will probably
cut the production by 15 percent.
(Yieh) Taiwan’s Yieh United Steel Corp. (Yusco) announced its new price
for the second half of June. The domestic price dropped by NT$5,500/ton due
to the falling prices of nickel.
(Interfax) China produced 326.29 million tons of steel products in the first
five months of 2010, up 27.5 percent year-on-year, according to figures released
by Shanghai-based Mysteel Information on June 14.
(AP) A Papua New Guinea government member has quit in protest over environmental
law changes that protect a controversial Chinese-run nickel mine. MP Ken
Fairweather left government ranks on Wednesday and criticised the recent
amendments that prevent land owners challenging approved resource projects,
saying it will cause irreversible damage to his electorate.
(JC) Molybdenum mines in north China's Liaoning province, a key moly mining
and processing region, were facing losses on the back of declining concentrate
prices, market sources said last week. In addition, a few small mines have
been forced to suspend operations due to the weakness, the sources said.
(AP) The Philippine Board of Investments (BOI) recently approved the application
of Marcventures Mining and Development Corporation to mine nickel ore in
Cantilan, Surigao del Sur with capacities of up to 800,000 wet metric tons
(WMT) per year. Under the 2009 Investments Priorities Program (IPP), Surigao
del Sur is categorized as one of the country's 30 poorest provinces.
(WSS) The Russian Special Steel and Alloys Consumers and Suppliers Association
(Spetsstal), has reported that the Russian stainless steel market is actively
rebounding, with the country's consumption of the main stainless steel products
increasing in Q1 2010 by 63.7% year on year to more than 58,300mt.
(AISI) The American Iron and Steel Institute (AISI) reported today that for
the month of April 2010, U.S. steel mills shipped 7,057,660 net tons, a 7.7
percent decrease from the 7,646,938 net tons shipped in the previous month,
March 2010, and a 74.6 percent increase from the 4,042,457 net tons shipped
in April 2009.
Zambia foreign miners seek stable mining laws -
more
Yuan is overvalued, not undervalued: report
- more
China may see 'severe' job losses next year, CICC says -
more
US - Industrial production advanced 1.2 percent in May after having risen
0.7 percent in April. Manufacturing output climbed 0.9 percent last month,
its third consecutive monthly gain of about 1 percent, and was 7.9 percent
above its year-earlier level.
May 2010 Metals Volume
Continues Recent Trend – U.S. and Canadian metals service center shipments
of steel and aluminum products rose in May at double-digit rates from depressed
year-ago levels, the Metals Activity Report from the Metals Service Center
Institute shows. Inventories were flat or rose during the month. -
more
Chinese Nickel Mine
Threatens to Leave PNG - Concerns have intensified over the possible
closure of the Ramu nickel project and attempts have been made to get the
people who have taken out the injunction on developers to withdraw their
case. -
more
Outokumpu to invest
EUR100 mln in Degerfors to increase capacity of stainless steel plate production
- Outokumpu invests EUR 104 mln to increase capability and capacity
of stainless steel quarto plate production in Degerfors(Sweden). -
more
Price Of Ni-Based
Stainless Scrap In Japan Has Fallen To Lowest Since August Last Year = Stainless
Steel Mills Enter Into A Considerable Reduction In Production Of Stainless
Steel From July - The domestic price of nickel-based stainless steel scrap
(new clippings) in Japan has still continued to fall. -
more
EU Steel Coil Producers
Face Higher Input Costs As Demand Collapses -Market sentiment has been knocked
by the recent economic turmoil and sovereign debt issues in the eurozone.
- more
Explorer’s
faith in nickel shored up by Tanzanian estimates - African Eagle Resources
MD Mark Parker on Tuesday defended a continuing focus on nickel mining, despite
the soaring prices of other metals, after the AIM- and JSE-listed exploration
company said a key deposit in Tanzania had a resource almost double the size
previously estimated. -
more
Baosteel Agrees
to 23% Iron Ore Price Increase - Baosteel Group Corp., China’s
second-biggest steelmaker, agreed to accept a 23 percent increase in iron
ore prices from Rio Tinto Group and BHP Billiton Ltd., said research company
UC361.com. -
more
China sets consolidation
target for top 10 steel mills - China aims to put more than 60 percent of
its total steel capacity in the hands of its top ten steel mills by 2015,
up from 44 percent in 2009, the country's cabinet, the State Council, said
on Thursday. -
more
Never been better
for miners: Ferguson - Resources Minister Martin Ferguson has claimed in
question time that the outlook for the Australian mining sector has never
been better. -
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) Record Hong Kong Home Sale Collapses
as Buyers Pull Out of Henderson Deal // Russia Preparing to Buy Canadian,
Australian Dollars to Diversify Reserves // Bank Indonesia Unveils Steps
to Manage Capital Flows, Currency Volatility // Mongolia to Offer Some of
World's Richest Resources Through Overseas IPOs // Asia Stocks Gain for Fifth
Day; Dollar, Metals Rise on U.S. Growth Outlook // BP Swaps Imply 39% Chance
of Default as Bonds Extend Slide: Credit Markets // Spanish-German 10-Year
Bond Yield Spread Rises to Highest Since Euro Debut // BP Said to Agree $20
Billion Payment Into Fund for Oil Spill Compensation // European Stocks Close
Little Changed; Irish Life Advances, Nokia Declines // FedEx's Annual Earnings
Forecast Trails Estimates Amid Sluggish Recovery // Fed Officials May Trim
Forecasts for U.S. Growth on European Debt Crisis // Manufacturing Powers
U.S. Economic Recovery as Housing Is Mired in Slump //
The Euro continues to trade lower against the US Dollar, but only by
1/4 of 1% currently. NYMEX crude is up over 1% and at $77.76/barrel. Gold
is down 3/10 fo 1% while silver is off more than 4/10 of 1%. Base metals
ended the session mostly lower, but off session lows. Indicator chart show
nickel bottomed out about the same time we published our morning briefing
and spent the remainder fo the day in a sluggish recovery. Dow Jones reports
three month nickel ended the day at
$9.09/lb. Inventories of nickel
stored in LME approved warehouses fell yet again overnight, although the
activity was much lighter than it has been the last few days. Inventories
now total just over the 131,700 tonne level. Sucden is not updating its nickel
chart again, so we will resume linking to it when it is updated. The Baltic
Dry Index slipped under the 3000 point threshold, dropping another 127 points
to 2,893. Since May 26, when the BDI peaked out at 4,209, it has fallen by
nearly 32% in 14 sessions. You can read more about the BDI and what is going
on in Cotzias Friday report
here. Barclays Capital
analyst Nicholas Snowdon noted "With market fundamentals still in a constructive
positioning for the majority of base metals, further price gains are likely
in the short term given the apparent increasing resilience of sentiment to
previous weighty macro uncertainties." Ed Meir at MF Global added in his
morning report about nickel "we are still laboring to take out the short-term
downchannel". China re-opens for business tomorrow, so we will see if this
shakes some life back into the market, although European sovereign debt problems
just won't seem to take a back burner.
(Reuters) China's Minmetals is working with its Australian arm, MMG, to identify
merger and acquisition targets this year, the company said on Wednesday,
adding it was confident in the long-term outlook for global base metals markets.
The firm said it would look internationally as well in Australia for growth
opportunities, using MMG as its international growth platform.
(WSJ) Assets on the Fed’s balance sheet contracted a bit in the latest
week, falling to $2.314 trillion from $2.318 trillion. The bulk of the decline
came from a reduction in liquidity swaps to allow foreign central banks access
to dollars.
Double Dip Recession Talk Bustin’ Out All Over -
more
Mining firm
bullish about exporting nickel this year - A Filipino mining company is bullish
about producing nickel ore for export this year, noting an almost 900-percent
increase in the metal’s price. -
more
Marcventures
allots P470-M for nickel mine ops - Marcventures Mining and Development Corp.
is investing P474 million for a nickel mining project in Cantilan, Surigao
del Sur. -
more
Can ThyssenKrupp
pass on costs to clients? - ThyssenKrupp, Germany's biggest steelmaker, is
seeking price increases for third-quarter deliveries amidst a declining price
trend in China, the world's top steel producer. -
more
Steel going strong
- Valbruna Nordic operates as a wholly owned subsidiary of Acciaierie
Valbruna based in Italy. Delivering the widest portfolio of stainless steel
bar products in the industry, the company is one of the most recognised suppliers
in the Nordic and Baltic regions. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.22/lb
lower, with most
London traded base metals lower this morning. The Euro is trading 1/2 of
1% lower against the US Dollar, adding pressure to commodity trading. NYMEX
crude futures are down more than 6/10 of 1% and just under $76.50/barrel.
Gold is trading flat in what has been very choppy trading, and silver is
also trading flat, off earlier highs. Asian markets ended higher overnight,
with China re-opening after a three day holiday tomorrow. European markets
are slightly lower this morning on speculation Spain may need a bail-out,
and US futures show Wall Street may take back some of yesterday's gains.
Inventories of nickel fell overnight and it appears a base metals relief
rally is losing steam.
MF Global June 2010 Commodity Review -
pdf here(large file)
Commodity/Economic Comments
Edward Meir of MF Global Morning Comments - Copper prices rallied for a sixth
straight day yesterday, as concerns about European debt problems eased after
successful debt auctions took place in Spain, Belgium, and Ireland, boosting
the Euro and offsetting the negative impact of the plunge in German investor
confidence readings reported earlier by the ZEW Center. In yesterday’s
note, we suggested that some of the recent gains in metals could be rolled
back on account of possible equity weakness related to BP developments. We
obviously were wrong on this score, as judging from Tuesday's US robust session,
investors felt otherwise, looking past BP's problems and President Obama’s
speech, and pushing values higher on upbeat earnings expectations for Q3.
There were no particular surprises coming out of the President’s speech
last night either, and certainly no colossal figures thrown at BP (at least
not yet) in terms of a dollar allocation they would need to put into an escrow
account. The equity markets are called to open slightly lower today, but
stocks may very well regroup later in the day, perhaps pulling metals up
along with it. Right now, metals are lower in very quiet trading, but despite
the impressive gains of the last few days, none of are technically overbought,
with the highest RSI reading we see in our table being at a relatively neutral
43. Lots of US macro data is on tap for today, including May building and
housing starts (expected at 655,000 and 631,000 respectively), May PPI (expected
at -.5%), and May industrial production (expected at .8%). Of the three,
the latter will prove to be the most consequential for metals. Oil markets
are down by about $.60 after several days of good gains, and the Euro is
holding steady at $1.2270 ..... We are $19,700 on nickel, down $525; we are
still laboring to take out the short-term downchannel, (see chart in our
attachment), which if we do, could set up a test of next resistance at $22,000.
(read Ed Meir's complete morning base metals report
here)
(Dow Jones) Global nickel supply was 16,000 metric tons short of demand during
the first four months of the year, the World Bureau of Metal Statistics said
Wednesday. This compared with a surplus of 16,100 tons for all of 2009.
Castillian Resources to sell Kagera nickel project to Innovance
- more
(Yieh) According to Taiwanese screw mills, many customers are adopting a
wait-and-see attitude and reluctant to place orders recently because China
Steel Corp. increased the bar and wire rod prices for July/August shipments.
(SM) The American Forest & Paper Association released its May 2010 U.
S.Containerboard Statistics Report today. For the seventh straight month,
containerboard paper production has risen sharply when compared to last year.
Total production saw an increase of 238,100 tons or 9.1% over May 2009. Total
production amounts increased compared to April 2010, with average daily
production up 0.3%. Year-to-date 2010 production has increased 12.6% over
2009. The containerboard operating rate for May 2010 rose 12.2 points over
May 2009 to 95.2%.
China leading indicator rises the most in 14 mths: Conference Board -
more
Freight Rates Ready
to Spike - A recovering economy and a trucking industry scarred by bankruptcies
and fleet cutbacks will soon lead to a shortage of trucks and a substantial
price increase for shippers. -
more
Mincor says
finds more nickel at Miitel mine - Australia's Miitel nickel mine could be
bigger than previously estimated, owner Mincor Resources Ltd said on Wednesday,
citing new exploration data which has revealed a possible second nickel deposit.
-
more
Australia’s
Resource Tax Will Be 40%, Ferguson Says - Australia’s resource
tax rate will be 40 percent and won’t be set at different levels for
various commodities, Resources Minister Martin Ferguson said as companies
look for a compromise on how the levy will be applied. -
more
Mining giants push demands on Rudd over resources super-profits tax - Mining
giants have complained after a meeting in Canberra today that their demands
on tax are still not being acknowledged by the government - even as Kevin
Rudd confirms he is considering requests for special treatment from different
resources sectors. -
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) BOJ Initiates $33 Billion Program Even
as Shirakawa Hails Japan Recovery // China's Bank Regulator Warns Risks Growing
From Real Estate `Chain Effect' // India Clears Plan to Sell Coal India,
Hindustan Copper Stakes; Shares Jump // Singapore's Employers Added More
Jobs Than Estimated as Economy Rebounded // South Korea's Yoon Signals Shift
in Stance on Rates as Rebound Accelerates // Spain, Portugal Need More Cuts,
Debt May `Snowball,' EU Draft Report Says // Murdoch's $11.5 Billion Offer
for Rest of BSkyB Is Rejected by Broadcaster // German Investor Confidence
Drops More Than Forecast on Europe Debt Crisis // Greek Bonds Drop After
Moody's Downgrade to Junk; Irish, Spanish Debt Fall // Euro Turmoil Drives
Borrowers to Issue in Loonies, Francs: Credit Markets // European Stocks
Rise for Fifth Day; BSkyB Paces Gains on News Corp. Offer // New York
Fed's Enhanced Power May Come at Expense of Reduced Independence // Best
Buy's First-Quarter EPS of 36 Cents Misses Estimates; Shares Retreat // Fed
Sells $1.15 Billion of Term Deposits in Test of Credit-Tightening Tool //
Manufacturing in U.S. Sustains Recovery as Homebuilder Confidence Declines
// Stocks, Oil Advance on New York Manufacturing Growth; Greek Bonds Decline
The Euro is now trading nearly 9/10 of 1% higher against the US Dollar. NYMEX
crude oil is up nearly 2% and over $76.50/barrel. Gold is up over 1% and
silver is higher by 2.2%. Base metals ended the session mostly higher, but
subdued. Indicator charts show nickel opened lower this morning, spiked higher,
then drifted. Dow Jones reports three month nickel ended the day at
$9.17/lb
. Stockpiles
of nickel stored in LME approved warehouses were reported by a couple of
different news sources as completely different, but our best guess is that
inventories remain over the 132,000 tonne level, but by how much, we can
not report. With cancelled warrants over 7% yesterday, outbound activity
remains very high. Stainless steel producers are apparently betting the market
has seen the bottom of the dip. And unless equity markets take another strong
dive, we see no reason to believe the odds are working against them. Some
are now predicting the price of nickel could work sideways for the rest of
the year. This, in our opinion, is about as likely as the sun imploding.
Traders don't make money unless nickel goes up and down, and unless nickel
suddenly takes a back seat to all other investments, it is highly unlikely
we will see nickel trade sideways for any extended period of time, especially
for a six month period.
DJ Rio Tinto To Invest
$469M In Developing Kennecott Eagle Mine - Rio Tinto PLC , an international
mining group, said Tuesday it will invest $469 million in constructing the
Kennecott Eagle nickel and copper mine in Michigan's Upper Peninsula following
receipt of final environmental approvals. -
more
Miners
consulted on super-profits tax since '08: PM - Kevin Rudd fought back today
against charges that the mining industry had not been properly consulted
over the proposed super profits tax, arguing the tax had been on the table
since August 2008. -
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
lower, with other
base metals mixed and very quiet. The Euro is currently trading nearly 1/4
of 1% higher against the US Dollar. NYMEX crude oil futures are trading 2/3
of 1% higher and at $75.62/barrel. Gold is trading 1/3 of 1% higher, while
silver is up nearly 1-1/4%. In overnight trading, Asian markets ended flat
with China markets closed until Thursday. European markets are trading slightly
higher this morning, while US futures show Wall Street will try to shrug
off yesterday's loss that came after Moody's Investor Service cut Greece's
government-bond ratings by four notches to a junk-grade rating. and should
open this morning.
Edward Meir of MF Global Morning Comments - Copper rose to one-week highs
yesterday on renewed optimism about growth prospects. The European industrial
production number we referenced in yesterday’s note was particularly
important in pushing prices higher, as it was the largest year-over-year
gain in some 20 years. There were solid gains in the rest of the metals as
well, with nickel hitting a two-week high. Some of these gains were rolled
back after more news came out of Europe, this time having to do with Moody's
downgrading Greece's debt by several notches to junk status. In addition,
the chairman of Spain's second largest bank had to publicly deny German newspaper
reports that Madrid was negotiating a Greek-style financial rescue with Brussels.
Spanish paper sold off sharply on the news, as well as on reports that Spanish
companies were having difficulties raising funds. The stories took their
heaviest toll on the US equity markets, which gave up earlier gains to close
modestly lower. Metals started the Asian session on a weaker note overnight,
as we suspect the latest European jitters impacted sentiment, but the complex
has since regrouped, with copper and aluminum practically unchanged on the
day. There is not much in terms of fresh news, but we could see rather turbulent
trading conditions over the next day or two ahead of President Obama's speech
on BP and the Gulf crisis scheduled for later tonight. The administration's
plan is to now ask the oil giant for a massive allocation to be placed in
escrow (a figure of $20 billion is being bandied about) so that claims and/or
damages can be paid expeditiously without having to check with the company.
We suspect that BP will have little choice but to go along, but depending
on the amount and other details, we could see US equity markets back off
somewhat over the next two sessions, perhaps trimming some of the recent
gains we have been seeing in commodities as well. .... We are $20,144
on nickel, down $156, and fairly quiet. (read Ed Meir's complete
morning base metals report
here)
(Yieh) It is reported that ArcelorMittal has restarted a stainless
cold rolling mill in Northern France at its Isbergues plant. However, it
will not be operated by full capacity as it has been planned for reduced
three working shifts.
(JMB) Tokyo Steel Cuts All Steel Items by 7,000-9,000 yen/t
(MDM) April U.S. manufacturing technology consumption totaled $222.36 million,
according to the Association For Manufacturing Technology and the American
Machine Tool Distributors' Association. This total, as reported by companies
participating in the USMTC program, was down 15.6 percent from March but
up 102.7 percent from the total of $109.69 million reported for April 2009.
With a year-to-date total of $783.03 million, 2010 is up 50.6 percent compared
with 2009.
China's bank regulator sees growing real estate risks -
more
'Doomsday Capitalism:' Local virus? Global pandemic? -
more
Outokumpu Oyj:
Outokumpu opens new stainless bar and rebar plant in Sheffield, UK - A new
stainless steel bar and rebar facility is being officially opened today in
Sheffield, UK. -
more
African Eagle
doubles resource at Tanzania project - African Eagle Resources Plc
has more than doubled the size of the resource estimate at its Dutwa nickel
project in Tanzania, the firm said on Tuesday. -
more
BIR Stainless Steel
& Special Alloys Committee Was Held In Istanbul / Turkey = ELG, World
Production Of Stainless Steel In 2010 Will Be 30 Million Tons - BIR Stainless
Steel & Special Alloys Committee was held last week at Istanbul of Turkey
and guest speakers commented on their outlook for production of stainless
steel in 2010 and in the future. The main points are summarized as follows
- more
Buoyant outlook for
commodity prices: Credit Suisse analysts - Credit Suisse's New York team
says the shocker month for commodities in May is likely to have created a
buying opportunity. -
more
Courtesy AISI - In
the week ending June 12, 2010, domestic raw steel production was 1,803,000
net tons while the capability utilization rate was 74.6 percent. Production
was 1,123,000 tons in the week ending June 12, 2009, while the capability
utilization then was 46.9 percent. The current week production represents
a 60.6 percent increase from the same period in the previous year. Production
for the week ending June 12, 2010 is up 1.0 percent from the previous week
ending June 5, 2010 when production was 1,785,000 tons and the rate of capability
utilization was 73.8 percent.
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) India Inflation Unexpectedly Quickens,
Adding Pressure for Rate Increases // South Korea's Won Advances on Tighter
Forwards Curbs, Risk of Intervention // Yen Weakens for Third Day on Global
Economic Recovery Signs; Euro Advances // Asian Stocks, Commodities Rise
on Improving Economic Outlook; Yen Weakens // Currency Collapse May Stimulate
a Resumption of Economic Growth, BIS Says // Emergency Powers to Ban Naked
CDS Trades Proposed by European Commission // AIG Rescue Spared European
Banks From Raising $16 Billion, U.S. Panel Says // U.K. Deficit Narrower
Than Forecast; Budget Office Predicts Weaker Growth // U.K. Has Bigger Fiscal
Gap to Fill Than Labour Forecast, Watchdog Reports // Euro Volatility Signaling
Weakness as Traders Lose Confidence in Currency // European Stocks Gain for
Fourth Day; BHP Billiton, Weir, Axa Lead Advance // Believing in Free Markets
Shows U.S. More Than Compensates Bond Vigilantes // U.S. Housing Market Recovery
Depends on Job Growth, Harvard Says in Report // Stocks Beating Bonds in
Relative Value After S&P 500 Earnings Yields Surge // Stocks, Oil Rally
on Economic Optimism; Yen Weakens, U.S. Treasuries Fall
The Euro continues to trade higher against the US Dollar, and at present,
up 1-1/3%. NYMEX crude oil is up nearly 2-1/2% and at $75.57/barrel. Gold
is off 6/10 of 1% while silver is higher by nearly a full percent. Base metals
all ended solidly in the green today, most up in the 2-3% range. Indicator
charts show nickel opened higher this morning, hovered for much of the morning,
then spent the afternoon gaining ground. Dow Jones reports three month nickel
ended the day at $9.21/lb and climbed back
well over the $20,000 tonne level. Stockpiles of nickel stored in LME warehouses
experienced another heavy day Friday with outbound's leading inflows, and
inventories now sit just over the 133,300 tonne level. Considering the number
of outbound shipments, it appears some stainless steel producers are betting
the price of nickel has bottomed and are grabbing cheaper nickel while they
can. Sucden's day old price graph shows nickel trading thru Friday
(chart here). Cancelled warrants were over 5% the last
three days of last week and outflows from LME warehouses are higher. If you
skip all the articles today, make sure you read "A breakthrough in China,
another blow for Sudbury". It answers a lot of questions about the pig nickel
mystery. And Antaike's report that some pig nickel producers were shutting
down because of nickel's lower price, helped push nickel higher today. China
is on holiday celebrating the Dragon Boat Festival and will re-open on Thursday.
Chinese team
tagging copper, nickel-rich areas - A team of Chinese geochemical surveyors
will start mapping out copper and nickel-rich zones which is expected to
further stir interest in Philippine mining. -
more
Tokyo Steel Cuts
Prices for First Time in Six Months - Tokyo Steel Manufacturing Co.,
Japan’s largest electric-furnace mill, cut prices by as much as 12 percent
for July contracts, the first reduction in six months, as price competition
with Asian mills intensified and costs fell. -
more
Tax cut on Brazil
steel imports to hurt sector-Vale - Brazil's government must think carefully
before reducing taxes on imported steel to avert leaving local steelmakers
vulnerable to foreign competition, Vale Chief Executive Roger Agnelli said
on Friday. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.16/lb
higher with all base
metals trading higher. The Euro is trading over 1.1% higher against the US
Dollar, boosting commodity prices. NYMEX crude futures are up 2-1/4% and
near $75.50/barrel. Gold is down 1/3 of 1% while silver is nearly 8/10
of 1% higher. In overnight trading, Asian markets ended higher. European
markets are trading higher and futures show Wall Street will open higher.
Nickel inventories fell over the weekend. First two articles below
have to do with nickel pig iron and worth reading.
Edward Meir of MF Global Morning Comments - Copper retreated from one-week
highs on Friday, but still managed to close the week on a positive note.
Macro data was mixed, but not enough to derail the advance. May US retail
sales, for example, unexpectedly dropped by 1.2%, reviving concerns about
the US economy, but consumer sentiment improved in early June to its strongest
level in nearly 2 1/2 years. Numbers out of China showed industrial output
rising 16.5% from a year ago, coming in slightly short of expectations. Urban
fixed asset investment in the January-May period was up 25.6% from a year
earlier, while May producer price inflation was at 7.1%, a 19 month high.
All in all, Chinese growth still remains very strong, and the government's
efforts to rein in the economy are still a long way off from achieving any
credible results. We are sharply higher in today's trading in metals, as
there is widespread weakness seen in the dollar against most currencies.
The Euro is now at $1.2240, while sterling is at $1.4740. There are good
gains in energy prices as well, and US stocks are expected to open sharply
higher on the back of solid gains in Europe and Asia. Chinese markets are
closed today for a holiday. After weeks of steady price falls, we suspect
most markets are stabilizing here, and we could be in store for a relatively
good run to the upside over the June/July period. Our upcoming monthly report
on the various commodities (due out shortly) outlines our reasoning on the
issue in greater detail, but generally, we believe the recent stabilization
in the Euro and the modest deceleration evident so far in China, is allowing
the commodity markets to decouple from currency and concentrate instead on
the global growth picture, which despite its patchy nature, remains largely
on track. ..... We are $19,914 on nickel, up $369, and prices
have salvaged the earlier breach of the trend line marked in red. Two days
of closes above this mark (likely) could result in further gains.
(read Ed Meir's complete morning base metals report
here)
(AMM) More than 100 tonnes of nickel and copper has been stolen from a Henry
Bath & Son Ltd. warehouse in the northern England port city of Liverpool,
according to market sources.
(Dow Jones) Jinchuan Group Co., the world's fourth largest nickel producer,
expects the ongoing overhaul of its nickel flash smelter to be completed
in mid-October, the company said in a notice on its website Saturday. "We
plan to resume output [sometime during] October 10-20," it said.
(Bloomberg) Posco may this week tentatively agree to a price increase of
25 percent to 30 percent for iron ore for the third quarter, the Korea Economic
Daily reported today, without citing anyone.
(JC) Most Chinese ferromolybdenum smelters have suspended production due
to the rapid decline in prices and downstream demand, against the backdrop
of a weak European market. The shutdowns are particularly in the key production
base of Liaoning province, where at least 60-70% of ferromolybdenum producers
in Huludao have suspended their smelters.
(Dow Jones) cHina Jinchuan Raises Refined Nickel Price To CNY153,000/Ton
(SG) According to an appraisal by Spetsstal Association, stainless steel
output in Russia rose 108.3% YoY to 26139 tonnes in the first quarter of
2010 as compared to the same period last year.
(SO) According to the latest data issued by China's National Bureau of
Statistics, in May this year China's crude steel production increased by
20.7 percent year on year to 56.14 million mt. The average daily output in
May was 1.811 million mt.
(Nikkei) Orders for ordinary steel products rose for the seventh straight
month in April, up 39.8% year on year to 6.352 million tons, the Japan Iron
and Steel Federation said Monday.
(China Daily) China's May electricity consumption growth slowed from April
despite a year-on-year increase of 20.8 percent, indicated statistics released
by National Energy Administration (NEA) Sunday.
3 Key Drivers for Stocks, Commodities, Forex, June 13 - 18, 2010: Outlook
Remains Bearish -
more
Stock Market Internals Are Pre Crash Unhealthy, Sitting on a Precipice -
more
Saudi Arabia gives Israel clear skies to attack Iranian nuclear sites -
more
A breakthrough
in China, another blow for Sudbury - No longer just a low-wage workshop,
China is reshaping world markets through innovation - including a revolutionary
alloy that takes aim at Canada’s nickel belt -
more
China’s nickel
pig iron makers curb output - Nickel pig iron producers in China, the
world’s largest consumer of nickel, have started to idle capacity as
prices slump and demand weakens, according to Beijing Antaike Information
Development Co. -
more
Supply And Demand
Of Main Ferro-Alloys In Japan In Jan. - Mar. 2010 = Consumption Was Considerably
Improved From That In Q1 / 09 But Still Unable To Reach Scale In 2008 - The
actual quantities of main 8 ferro-alloys supplied and consumed in Japan in
the first quarter (January - March) of 2010 were traced and the contents
were as per the tables (1) and (2) shown below. -
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
Dow Jones reports three month nickel ended the day at and week at
$8.86/lb
, with indicators
showing all of the day's gains coming early in the session.
Copper ends
up, has biggest weekly gain in 2 mths - Copper retreated from one-week highs
on Friday, but still managed to score its largest weekly gain since early
April, as demand expectations rose on generally positive macro readings in
the United States and China -- the world's top 2 consumers. -
more
Nickel’s
nice but oil is the China card - The Chinese economy is developing at a
blistering pace, and the country is acquiring a talent for producing things
it once needed to import. From cars to telecommunications equipment to steel
products, China has arrived on the world stage. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $.20/lb
higher, with all base
metals trading higher this morning. Nickel is showing signs of possibly peaking
for the day, having spent the last 2-1/2 hours of trading flatlined. The
Euro is trading a little over 1/10 of 1% higher against the US Dollar, and
climbing, which could give nickel another boost if it continues to climb.
NYMEX crude futures are down 1/3 of 1% and at $75.21/barrel. Gold is up 1/2
of 1% and silver is up 1/3 of 1%. In overnight trading, Asian markets ended
higher, with China up 1/3 of 1%. European markets are trading slightly higher
this morning, with US futures showing a slightly higher opening for Wall
Street. Nickel inventories fell again overnight and now sit just under the
133,800 tonne level. Sucden's day old chart shows nickel attempting to establish
a bullish turnaround
(chart here). Traders get a look at the ECRI U.S. Long
Leading Index today around 10:30 EST. This report has a good track record
of forecasting future economic strength and with the worries of a potential
double dip resurfacing, this report will likely be scrutinized. You can find
the update here when it is posted
(here).
We will be on the road this afternoon so our afternoon update will be delayed
till this evening. We hope each of you has a safe and enjoyable weekend!
Edward Meir of MF Global Morning Comments - no report today (read
Ed Meir's complete morning base metals report
here)
(Dow Jones) U.S. nickel exports rose 10.5% in April from the previous month,
and was up 857.6% from the previous year, the Commerce Department reported
Thursday.
(Dow Jones) U.S. nickel imports fell 11.5% in April from last month, but
was up 26.8% from the previous year, the Commerce Department reported Thursday.
(PR) Talvivaara Mining Company Plc is pleased to announce that the second
production line at its metals recovery plant was successfully commissioned
on 9 June with zinc sulphide precipitation, followed by nickel sulphide
precipitation on 10 June. The production line is currently operating well
and will be ramping up towards its full capacity during the upcoming months.
(MA) Following in Australia’s footsteps, China is now considering increasing
its resources taxes. China has taken steps towards imposing the tax, which
the country sees as a way to slow the depletion of resources and the damage
to the environment while rebalancing the nation’s economy.
(Interfax) Shanghai-listed Jilin Ji'en Nickel Industry Co. Ltd. has commenced
operations of its 5,000-ton refined nickel facility, the company announced
on June 9.
(Yieh) Outokumpu has announced to invest about €104 million to increase
its stainless steel quarto plate production capacity in Degerfors plant.
(JC) Western World Q1 Molybdenum Output Up by 21.8% YOY compared to the first
quarter of 2009.
(TSI) The Freight Transportation Services Index rose for the third straight
month, with a 0.3 percent boost in April over March, according to data released
by the U.S. Department of Transportation's Bureau of Transportation Statistics.
The index increased 4.8 percent from April 2009.
(China) CPI hits 19-month high but not all see tighter policy -
more
(EC) UK Manufacturing Drops While Producer-Price Pressure Eases .... But
manufacturing data released today pointed to a decline to -0.4% from the
revised 2.2%, and industrial production plummeted to -0.4% from 2.0%. Details
revealed that seven of the 13 categories components constituting manufacturing,
slumped, where the sharpest decline was seen in cars, food, drink and tobacco,
and electrical and optical equipment.
Nickel May Fall Almost
29%, Stellakis Says: Technical Analysis - Nickel may drop to $13,600 a metric
ton, implying a 29 percent slide from current prices, after falling through
a trend line, according to technical analysis by independent analyst Jim
Stellakis. -
more
New wave of gains seen for commodities - Copper and oil prices could leap
on strong industrial demand in coming months and gold may rise further on
inflation-linked buying, suggesting a new wave of gains for commodities.
-
more
Commods may surprise to upside: Goldman's Cohen - The recent sell-off in
industrial commodities may have been sharper than investors expected but
they could stage an equally surprising rebound if emerging nations continue
to rapidly build infrastructure, a strategist for top commodities trader
Goldman Sachs said on Wednesday. -
more
Metallica Says
May Scrap Nickel Mine on Planned Tax - Metallica Minerals Ltd., studying
a A$700 million ($592 million) nickel project in Australia’s Queensland
state, may scrap the mine because of the proposed resource super profits
tax. -
more
Minara to resume
normal nickel output next week - Australia's second biggest nickel miner,
Minara Resources, will resume normal nickel production next week following
repairs to its Murrin Murrin mine, it said on Friday. -
more
First Quantum
says new projects may double revenue - First Quantum Minerals' revenue could
double once new production from recently acquired copper and nickel projects
comes on line in the next three years, the company's president said on Wednesday.
-
more
China May steel
output hits record 56 mln T - China's crude steel output reached a monthly
record of 56.14 million tonnes in May, rising 1.3 percent from April and
20.7 percent year on year despite industry concerns about narrowing margins
and uncertain demand. -
more
Xstrata Says
Mine-Tax ‘Tinkering’ Won’t Curb Damage - Xstrata Plc, which
halted investment in A$6.6 billion ($5.6 billion) of Australian mining projects
after the government proposed a new tax, said “tinkering” with
the levy won’t be sufficient to prevent damage to the industry. -
more
Australian PM, BHP knock down quick mine tax deal - Australian Prime Minister
Kevin Rudd denied on Friday talk of a swift deal with miners over his
controversial mining tax, as global miner BHP Billiton rejected a rumoured
compromise affecting the nation's top export sector.
-
more
Sulfuric Acid,
Copper Byproduct, Peaks on Demand View, CRU Says - Prices for sulfuric acid,
used to dissolve metal ore and produce fertilizer, have peaked amid expectations
of weaker demand, researcher CRU said. -
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 Exports Jump 48.5%, Property
Prices Surge as Overheating Risk Grows // Japan's First-Quarter Growth Revised
Higher on Consumer Spending, Housing // Goldman Sued for $1 Billion by Australian
Hedge Fund Over Timberwolf CDO // Asia Weathers Europe Crisis as China Exports,
Korean Jobs Exceed Forecasts // Asia Stocks Rise on Japan GDP, Australia
Jobs; Kiwi Gains on Rate Increase // Trichet Says Interest Rates Are
`Appropriate' as ECB Combats Debt Crisis // BP Trades as Junk Bond Amid
Credit-Default Swap Inversion: Credit Markets // Van Rompuy Says EU Will
Expand $905 Billion Rescue Package If More Needed // `Liquidity Seizure'
May Drag World Into Recession, Nomura's Schulte Says // Bank of England Keeps
Stimulus Program as Cameron Prepares to Cut Spending // European Stocks Rise
on Global Growth; BHP Billiton Gains, BP Pares Losses // Trade Deficit in
U.S. Widens to Highest Level in a Year as Exports Decline // U.S. Home Seizures
Jump 44% to Record as Foreclosures Climb in All States // Brazil's Meirelles
Repeats `Aggressive' Rate Increase to Contain Inflation // Revalue Renminbi
or Congress Will Unleash Dogs, Patterson Says: Tom Keene // SEC Approves
Circuit-Breaker Rules for 10% Movements in Individual Stocks // Stocks Rally
on Economic Outlook; Alcoa, Caterpillar, Bank of America Gain
The Euro continues to trade higher against the US Dollar, by nearly a full
percent. NYMEX crude oil is up nearly 1.2% and at $75.25/barrel. Gold is
down 2/3 of 1% as safe haven buying quiets, and silver, is up nearly 1.3%.
Base metals ended the day mixed. Indicator charts show nickel floundered
early, suddenly got some strength and bounced by nearly $650/tonne, then
just as quickly, nose dived. Dow Jones reports three month nickel ended the
day at $8.59/lb, giving up about
1/2 of yesterday's gains. Inventories of nickel stored in LME approved warehouses
fell overnight and now sit just over the 134,600 tonne level. Sucden's day
old chart shows nickel trading thru yesterday
(chart here). Nickel went back to looking weak today,
after showing some teeth the last two. Technically speaking, the day started
with teh RSI and SStoch readings showing the market was over bought. This
added selling pressure even in light of the increased trading value that
nickel was gaining with the days rising Euro. Fundamentally nothing
really changed from yesterday. The market had been tipped off exports from
China had nearly doubled from the prior year, and this was officially confirmed
today. Imports fell in CHina, reflecting an attempt to cool things down there
and a big drop in iron ore imports. Other reports from Australia and Japan
are helping equity markets bounce back today, which typically is a plus for
nickel trading as well. But the great unknown remains. Our US economy, like
an old car, initially jumped into motion as the recession came to an end.
As it moved faster, the engine needed to shift. And in our opinion, that
is where we are at economically right now. In the middle of a shift. The
sudden drop in rpm's has many spooked, but history shows, an experienced
driver rarely stalls the engine. Not all the news is good to be sure, and
our start hasn't broken any records. In some observer's eyes, a turtle could
act as our pace car. And there are suddenly a lot of new faces in the crowd
betting against us. But so far, the good news is out-weighing the bad, and
if this ratio stays intact, our old car/economy will continue to move forward.
That is, as long as European debt problems don't put us into the wall, or
the Chinese tires we are running on don't burst, or we run our of gas, or....
well, like we said. It's an old car.
(Dow Jones) Steel company OAO Severstal , which has recently been relying
on profits from its core Russian business, Thursday warned that there could
be "serious change" in the steel industry as buyers favor cheaper imported
steel over its local production. Severstal's U.S. and European mills have
been operating at a loss - the company has already put Italy-based Lucchini
SpA up for sale, and said in its annual report that it will seek to profit
from "further market consolidation" in North America.
Rising Global Imbalances Likely to Precipitate New Crises -
more
Bernanke Takes Cautious Tone in Congressional Testimony -
more
RealtyTrac Reports Foreclosure Activity Over 300,000 For 15th Straight Month
As REOs Set New Monthly Record -
more
AIG's problems far greater than Bush officials told public -
more
Jobless benefit rolls drop sharply; new claims dip -
more
Nickel producer
to scale back under mining tax - Mid-tier nickel producer Western Areas believes
Kevin Rudd's proposed mining tax will stifle any development of the next
phase of its high-grade Forrestania project in Western Australia. -
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 and choppy,
with other London traded base metals mixed and quiet. The Euro is trading
nearly 1/2 of 1% higher against the US Dollar at the moment, but weakening.
NYMEX crude futures are up nearly 1% and over $75/barrel. Gold is trading
nearly 6/10 of 1% lower, while silver is down nearly 9/10 of 1%. In overnight
trading Asian markets ended slightly higher, with China off more than 1%.
European markets are trading higher this morning thanks to strong economic
reports from China and Australia. US futures imply Wall Street should open
in a good mood. Stockpiles of nickel fell overnight.
Edward Meir of MF Global Morning Comments - Copper prices rallied on Wednesday,
building on the gains coming from the Far East in the wake of constructive
Chinese export data, coupled with relatively upbeat comments by Federal Reserve
Chairman Ben Bernanke that the US recovery remains on track. Most other
commodities rallied as well, with the Reuters-Jefferies CRB index posting
its biggest daily gain in two weeks. The Euro also continued to gain ground,
breaking above the $1.20 level, where it is right now. We are seeing a quiet
day so far today, with trading ranges relatively tight despite a plethora
of news. On the macro front, we had a slew of Chinese indicators out overnight
that investors will be digesting over the course of the day. In this regard,
it was reported that Chinese industrial output rose 16.5% in May from a year
earlier, but fell slightly short of expectations calling for 17.1% growth.
Urban fixed asset investment in the January-May period was up 25.6% from
a year earlier, while producer price inflation ran at 7.1% in May. From all
accounts, the Chinese economy is still very strong, and signs of a slow-down
are incremental at best, even when considering the latest metals trade data,
which was also released. In this respect, it was reported that May copper
imports came in at around 397,000 tons, slightly below forecasts, but this
level is still pretty high compared to March and April numbers, which were
the second-highest and third-highest on record, respectively. On an aggregate
basis, copper imports in the first four months of this year are now at 1.61
million tons, up from 1.34 million tons in the same 2009 period. More
importantly, the relative high level of imports is not being picked up in
visible inventories in that stocks on the Shanghai Futures Exchange have
actually fallen over the last month, dovetailing a similar decline on the
LME. All this tells us that barring imported metal going into hidden stocks
or private stashes, actual demand for copper in China remains quite healthy.
.... We are $19,081 on nickel, down $189. Charts suggest an eventual
push towards $19,500, previous support, and now resistance. (read Ed Meir's
complete morning base metals report
here)
(CM) According to market sources, the market price is not optimistic, Sichuan
Chongzhou Shu Ye Xing Electrical Co., Ltd. has recently suspended sales of
nickel iron, but the production continues. According to reports, Shu Ye Xing
Electrical Co., high-nickel-iron output each month of 1000 tons, due to lower
procurement of active, approaching the cost of the purchase price line, in
view of its limited inventory, so now is the fence.
(CM) Kinds of steel giant Tate Ltd has announced that its wholly owned subsidiary
- Si Xin Metallurgy, Inner Mongolia Chemical Co., Ltd. officially announced
the opening of the company annual output of 40,000 tons of nickel iron.
(SMM) Jilin Ji En Nickel Industry Co. is conducting trial production at a
refined nickel project, the China Business News reported on its website
Thursday..... The company is expected to start ferronickel production this
month.
(Yieh) China's Wisco and Angang Steel slashed their HRC prices for July by
RMB300/ton and RMB350/ton respectively after Baosteel announced to cut July
price.
(Interfax) China's steel product exports increased to 4.94 million tons in
May, up 14.62 percent month-on-month, according to preliminary statistics
released by the General Administration of Customs (GAC) on June 10.
(J) Eramet SA, operator of the world’s largest ferronickel plant, plans
to raise nickel output at its Doniambo smelter by 7.5 percent this year.
(Yieh) Nippon Steel & Sumikin Stainless Steel Corp. which is largest
stainless steel producer in Japan has announced to increase its price of
SUS304 stainless steel wire rod by $714/ton for June to August. Due to strong
demand, Japanese JFE has temporarily stopped exporting its SUS400 series
at this moment.
(BNA) The production of Venezuelan state steelmaker Sidor is down 80% to
May this year, compared to the same period in 2009
(Reuters) South Africa's manufacturing output rose by a higher-than-expected
8.7 percent year-on-year in volume terms in April compared with a revised
6.6 percent expansion in March, Statistics South Africa said on Thursday.
Compared with March, factory production in volume terms fell by a
seasonally-adjusted 1.0 percent in April. Output was up 0.8 percent in the
three months to April compared with the previous three months, also on a
seasonally-adjusted basis.
China exports surge but Europe debt crisis looms -
more
Is the Plunge in Commodities a Bear Market Signal for Stocks? -
more
Hussman: Markets Aren't Worried About Greece Or Hungary, But Rather The Next
US Mortgage Crisis -
more
Commods may surprise
to upside: Goldman's Cohen - The recent sell-off in industrial commodities
may have been sharper than investors expected but they could stage an equally
surprising rebound if emerging nations continue to rapidly build infrastructure,
a strategist for top commodities trader Goldman Sachs said on Wednesday.
-
more
Western Areas
officially opens new mine - Nickel miner Western Areas NL has officially
opened the Tim King open-pit mine and the Stage 2 expansion of its Cosmic
Boy nickel concentrator in Forrestania, Western Australia. -
more
Asian Stainless
Steel Market Conditions Marking Time - Stainless steel market conditions
in Asia are caught in a continued wait-and-see sentiment on the whole. -
more
Moly Oxide Price
Rebounds At LME But Falls On Physical Trade = Oxide Price On Physical Trade
Has Broken Level Of US$15 Per Lb. / Mo And Continued On Basic tone To Fall
- The price of molybdenum oxide quoted at LME on the end of last week has
considerably differed from that transacted on physical trade. -
more
Kalgoorlie makes
dreaded property list - It's an unusual way to measure the state of the property
market, but it's also the list no one wants to be on.
- more
ANZ issue new
China Commodity Trade Report - China: Cooling demand appears to be confirmed:A
softer import report for May, with talk of government cooling initiatives
potentially having an impact. -
more
European Nickel
slashes interim losses, set to complete financing for Caldag nickel project
- Laterite nickel specialist European Nickel said H1 marked “progress
on all fronts” after completing a merger with Rusina Mining to secure
enough funds to complete project financing of the Caldag nickel project in
Turkey and recommence work on the feasibility study at the Acoje nickel project
in the Philippines. -
more
POSCO CEO sees
domestic market oversupply in H2 - South Korea's POSCO expects a difficult
business environment in the second half because of oversupply in the domestic
market and increasing steel imports, its chief executive said. -
more
Steel usage goes
up 12% in May - India’s steel consumption rose 12% in May, the fastest
in at least one year, backed by strong demand from automobile, consumer durable
and infrastructure sectors, as per the provisional data of the steel ministry.
-
more
DENR hit for
giving ‘midnight’ contract to Canadian mining firm - Antimining
groups expressed concern that the Department of Environment and Natural Resources
(DENR) is fast-tracking the awarding of a mining contract to a big company
in the province of Palawan. -
more
A better
way to extract metals? - Pulling precious metals out of the earth has always
seemed a crude and destructive process. -
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) IMF Says Global Risks Are Rising, Policy
Makers Have Limited Room to Act // South Korea to Tighten Capital Controls
`Soon,' Not Ready to Raise Rates // Morgan Stanley's Asia M&A Chief Edward
King Said to Leave to Join Barclay // China's Exports Jump 50%, Inflation
Accelerates to 3.1%, Reuters Reports // Asian Stocks Fall, Yen Strengthens
on Concern Europe Crisis to Curb Growth // BP Slumps to 20-Month Low as Obama,
Congress Raise Pressure Over Oil Spill // Greek Default Seen by Almost
75% in Poll of Investors Doubtful on Trichet // Volkswagen Will Build Plant
in Foshan Amid Plan to Double Chinese Capacity // Bunds Fall as Record
Low Yields Pare Demand for Europe's Safest Securities // European Stocks
Climb After China Exports Report; Inditex, STMicro Advance // Fed Rate Increase
Pushed to 2011 as Inflation Ebbs, Bloomberg Survey Shows // Limit-Down
Alternative to Stock Halts Proposed in SEC Letters for Selloffs //
Bernanke Says Federal Reserve Will Take `Necessary' Steps to Aid Recovery
// Stocks in U.S. Advance on Bernanke Comments, Report China's Exports
Surged
The Euro continues to trade higher against the US Dollar, up 6/10 of
1%. NYMEX crude oil is up 4% and nearing $75/barrel. Gold is down over 1/2
of 1% and silver is off the same. Base metals liked the stronger Euro and
the export news from China, albeit an unofficial report. Indicator charts
show nickel climbed most of the day only taking a break late. Dow Jones reports
thre emonth nickel ended the day at $8.74/lb
. Stockpiles
of nickel stored in LME approved warehouses fell overnight and now sit just
under the 135,200 tonne level. Sucden's day old chart shows nickel attempting
to find its footing
(chart here). Commodities got a nudge from not only a
stronger Euro today, but also a Reuters report that a senior government official
has stated China exports rose 50% in May from the prior month. The official
report from China is to be released tomorrow. News on the metals front
was light today, but traders jumped on the China export news and drove commodity
prices and equities higher, with a little extra Bernanke bounce hellping
US equities.
(BW) The Internaitonal Finance Corp. (IFC) of the World Bank group plans
to invest up to $1.98 million on a Surigao del Norte nickel mine, operator
Mindoro Resources Ltd. of Canada announced yesterday.
Economists Strive For Better Forecasting Regime -
more
Fed’s Evans: European Troubles Likely to Lower U.S. Growth -
more
Social Security's defenders wary of deficit reduction commission -
more
Stimulus Talk Yields to Calls to Cut Deficits -
more
Teck CEO says metal
demand steady despite selloff - Base metals demand has remained steady despite
a recent dive in prices, the chief executive of Teck Resources, Canada's
biggest base-metals miner, said on Tuesday. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.20/lb
higher, with all base
metals trading higher this morning. The Euro is trading 4/10 of 1% higher
against the US Dollar at the moment. NYMEX crude futures are up 1-1/2% and
over $73/barrel. Gold opened slightly lower while silver is up nearly 3/10
of 1%. In overnight trading Asian markets ended lower, while China ended
over 3% higher. European markets are trading higher this morning, while US
futures show a higher opening for Wall Street. Nickel inventories resumed
their falling trend overnight.
Edward Meir of MF Global Morning Comments - Copper ended up higher for the
first time in seven sessions on Tuesday, pulling the rest of the metals up
along with it. Zinc was particularly strong, as it was among the most oversold
in the group. The group was lifted by both a bounce in the Euro and a late-day
rally on Wall Street, where stocks finally broke a string of depressing fade-outs
heading into the close. Equities rose primarily on comments made by Fed Chairman
Bernanke that the US economic recovery is still on track. Furthermore, the
National Federation of Independent Business said confidence among US small
businesses rose in May to its highest level since September 2008, while jobs
advertised in April jumped by 300,000 to 3.1 million, the most since December
of 2008. Still, job openings are well below pre-recession levels, with 5
jobless people per opening, well above the pre-recession level of 1.8. We
are sharply higher again in today's metals session, as the bounce off oversold
levels continues. Strength emanated out of the Far East, when markets jumped
on leaked Chinese trade figures showing a surge in exports -- up by some
50% from a year ago. The news was enough to trigger a sharp advance in the
Chinese equity markets, which, in turn spilled over into commodities. It
remains to be see how much further the current advance could take us given
that the Euro is still holding steady right now at just under $1.20 and has
not added much to yesterday’s gains. Much will ride on what the US equity
markets do today; right now stocks are called to open slightly higher, but
there will not be much in the way of macro news until Friday when we get
May retail sales data (expected at +.2%). Oil prices are higher as well,
participating in the general rebound we seem to have on hand. ..... We
are $18,940 on nickel, up $470. Charts suggest an eventual push towards $19,500,
previous support, and now resistance. (read Ed Meir's complete morning
base metals report
here)
(Yieh) According to the statistics from SPETSSTAL Association, Russia imported
14,240 tons of stainless steel products in April, down by 6.3 percent
month-on-month. The total stainless steel export during Jan-Apr was 49,166
tons, increasing by about 65 percent year-on-year.
Afnat Resources, Rio Tinto Team Up For Mozambique Exploration -
more
NFIB - The National Federation of Independent Business Index of Small Business
Optimism gained 1.6 points in May with a reading of 92.2. Although not a
strong sign of recovery, it is headed in the right direction.
ENSO Wrap-Up: Tropical Pacific Remains Neutral. Increased chance of La Niña
in 2010. -
more
Outokumpu to spend
over $725 mln to hike output - Stainless steel maker Outokumpu Oyj said it
would spend over 540 million euros ($725 million) to hike ferrochrome and
stainless steel plate output, thawing plans previously frozen by the economic
downturn. -
more
Outokumpu Oyj: Outokumpu to double ferrochrome production - Outokumpu has
decided to restart the project to double the Group's ferrochrome production
capacity in Finland. -
more
Minara to finish
nickel repairs by weekend - Australia's No. 2 nickel miner, Minara Resources
, will complete repairs at its Murrin Murrin mine by the weekend, with a
return to normal production rates shortly afterwards, Chief Executive Peter
Johnston said on Wednesday. -
more
Ramu nickel a must
- PM - Papua New Guinea will be liable to repay the Chinese Metallurgical
Construction Company (MCC) and its partners if the Ramu nickel/cobalt project
does not proceed as scheduled. -
more
Steelmakers may
cut production on weak demand - Slower demand may prompt smaller makers to
default on iron ore contracts in the third quarter, Baosteel Group Corp Chairman
Xu Lejiang said on Tuesday at the Bloomberg Businessweek Green Business Summit
in Shanghai. -
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.
Vale, Steelworkers make 'some progress' in talks to resolve 11-month-long
strike - Striking Vale workers in Sudbury, Ont., say they have made "some
progress" in negotiations with the nickel mining giant. -
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) Sun Hung Kai's $1.4 Billion Bid Sets
13-Year Peak for Hong Kong Land Sale // China Hiring Plans Rise to Six-Year
High on Economic Recovery, World Expo // New Zealand's Bollard May Increase
Rates for the First Time in Three Years // Foxconn's Gou Says Personal Issues,
Not Salaries, Drove Workers to Suicide // Noda May Bring Spending Discipline
as Ninth Japan Finance Chief Since 2006 // Asian Stocks Advance as the Fed's
Bernanke Eases Economic Growth Concerns // JPMorgan May Pay More Than RBS
to Sell $716 Million CMBS: Credit Markets // Estonia to Adopt the Euro as
EU Finance Ministers Override ECB's Concerns // U.K. Retailers Say Sales
Increase on Items for Warmer Weather, World Cup // Cameron Must Deepen Cuts
in Formidable Debt Task, Fitch Says; Pound Drops // European Stocks Drop
on Debt Crisis; German Utilities, Tesco Lead Retreat // Goldman Sachs Deserves
Scrutiny by Regulators in Bloomberg Subscriber Poll // Bernanke Says
Fed Likely to Increase Rates Before Full Employment in U.S. // McDonald's
May Same-Store Sales Increase of 4.8% Beats Analysts' Estimates // Small-Business
Confidence in U.S. Hits 20-Month High as Recovery Quickens // Bernanke Says
Unemployment Rate in U.S. Likely to Stay High `for a While' //
The Euro is currently trading over 4/10 of 1% higher against the US Dollar.NYMEX
crude oil is up over 1% and over $71/barrel. Gold i sup 1/3 of 1% and
off all time record highs set earlier in the morning. Silver is up nearly
1.4%. Thanks to a stronger Euro showing today, base metals all ended the
session higher today. Indicator charts show nickel was in trouble early,
the only base metals trading lower against a higher trading Euro. The first
half of the day was spent on the slide, while the latter half of the session
was on the rise thanks to an increasingly stronger Euro. Dow Jones reports
three month nickel ended the day at
$8.38/lb. Inventories of nickel
stored in LME approved warehouses rose slightly overnight and now rest just
under the 135,500 tonne level. It was the first gain recorded this month.
Cancelled warrants took a big jump - to over 5% today. The Baltic Dry Index
fell 154 points to 3,579. After a rising from 3,707 on May 10th to 4,209
on May 26th, the BDI has now slipped back to under 3,600. While the BDI has
always been a rather reliable gauge of world trade activity, it has become
somewhat skewed due to excess container ships. So is the recent falter a
reaction to a general drop in world equity markets - or is the gauge showing
us evidence of a general worldwide slowdown in shipping? While it managed
to squeeze out a gainer today, nickel trading did not appear to be as healthy
as yesterday.
(Dow Jones) Brazilian miner Vale SA (VALE) and the union representing striking
workers at Vale's nickel operations in Ontario have adjourned strike talks
and will reconvene Jun. 19. Progress was made in the talks over the weekend
but the two sides couldn't negotiate a new collective agreement in the allotted
time set for talks, said Kevin Burkett, the government-appointed mediator
for the talks in a statement.
(quote) As China swiftly expands its reach across Latin America, Mexico is
experiencing a flurry of new Chinese investments in traditional targets like
nickel mines and in newer areas like car-part factories and electronics.
-
more
Chinese Steelmakers
to Cut Output, Baosteel Says - Chinese steelmakers are likely to cut production
in the third quarter because of “weak” demand from auto and appliance
makers, according to the nation’s second- biggest mill. -
more
Asian steel
winces as miners prepare for Q3 pain - Months after sowing the seeds of a
more flexible iron ore pricing system, Asia's steel giants are preparing
to reap the whirlwind in the form of big cost rises, just as steel product
prices show signs of flagging. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.08/lb
lower, with other
base metals trading higher this morning. The Euro is trading 2/10 of 1% higher
against the US Dollar at the moment. NYMEX crude futures are down 1/10 of
1% and at $71.37/barrel. Gold opened 2/10 of 1% higher while silver is 8/10
of 1% higher. In overnight trading, Asian markets ended slightly higher with
China up 1/10 of 1%. European markets are trading lower this morning, while
US futures show Wall Street may open to the positive. Nickel inventories
gained ever so slightly overnight, and in spite of a higher Euro this morning,
looks weak in LME trading this morning.
Edward Meir of MF Global Morning Comments - Metals tumbled once again to
fresh lows yesterday, unable to mount any sort of technical bounce despite
being quite oversold. Other markets did not help out much either. The Euro,
for example, hit fresh four-year lows earlier, but recovered on the back
of news that German factory orders unexpectedly jumped for a second month
in April. However, this about-face did little to turn sentiment around in
metals, as the bounce was perceived to be yet another ill-fated rally in
what remains a bear market for the Euro. In other developments, news out
of the Gulf that BP was finally collaring the spill by soaking up to 11,000
bpd of oil into its dome steadied the company's stock and had a stabilizing
effect on the US stock market early on, but a bout of selling nevertheless
hit stocks hard going into the final hour. In other news, European authorities
announced that they have started putting the finishing touches on their
previously announced stabilization fund by setting up a "special purpose
vehicle" that will, in effect, be a "go-to" facility enabling countries to
borrow up to E526 billion. Member countries are formalizing the necessary
debt guarantees to fund the vehicle and the fund should be ready for use
later this month. (Another E60 billion managed by the EU's executive commission
"is available to cover urgent financial needs were it to arise", while the
IMF will provide another E250 billion). In the meantime, German Chancellor
Merkel vowed to "set an example" by laying out plans to save E80 billion
through 2014 by instituting budget cuts, including cutting 15,000 government
jobs and delaying construction projects. The EU's Economy Commissioner also
urged other European countries to prepare more budget reductions, while the
IMF also urged Eurozone countries to shun "delayed or half-hearted" budget
cuts and work towards achieving current deficit targets. In other markets,
things to be rather quiet today. Oil prices are slightly lower, but gold
is in record territory, now at $1250. European stocks fell for a third straight
day although Asian shares advanced. US stocks are called to open slightly
higher, and the Euro is holding steady, now trading at $1.1930. .... We are
$18,010 on nickel, down $190, and the only metal in the group that is lower
today, a mirror image of what we saw yesterday. Charts suggest an eventual
push towards $17,000.(read Ed Meir's complete morning base metals report
here)
Calyon metals analyst Robin Bhar - "Investors are just so nervous they'll
continue to focus on any bad news and ignore all the good news. They're convinced
the financial system is at its weakest, liquidity is drying up and the banks
are in danger."
(Yieh) According to the Bureau of International Recycling (BIR), the global
stainless steel production output is expected to increase by 25 percent compared
to the same period last year.
(Yieh) According to the statistics, Japan’s stainless steel exports
totaled 108,000 tons in April, up by 5.8 percent on last year. The export
volume of Japanese stainless steel product saw an increase of 45 percent
in April compared to the previous month, marking the recovery of Japanese
export on stainless steel product.
(MB) Taigang cuts stainless prices for a second week
China - Developers Cut Prices, Edging Toward a Cliff -
more
Economic atmosphere
still not clear - Markets are continuing to “react dramatically”
to an economic atmosphere which is still “not overly clear”. -
more
Japan's Exports
Of Nickel-Contained Raw Materials For China, Keeping Level Of Fe-Ni Shipments
= Exports Of Ni-Based Stainless Scrap Decreased To 1/5 Of Peak As Retreated
Considerably - According to the statistics released by the Ministry of Finance,
the quantities of ferro-nickel exported from Japan to the four countries
in Asia in the first 4 months (January - April) of 2010 were as per the tables
(1) and (2) attached hereto. Japan has succeeded in having developed the
market for ferro-nickel in China and, as a matter of fact, Japan exported
approximately 31,500 tons of nickel in ferro-nickel in the calender year
(January - December) of 2009.
- more
Tough times ahead
for China steel companies - Chinese steel mills are facing a precarious situation
in the third quarter due to falling product prices and rising raw material
costs, forcing many of them to scale back output or opt for maintenance
shutdowns, leading industry experts said on Monday. -
more
Russia's Severstal
to idle operations at US plant - Severstal, Russia's largest steel maker,
said it planned to idle the primary steelmaking facilities at its Sparrows
Point, Maryland plant for 30 days later this month because of weak demand.
-
more
Courtesy AISI - In
the week ending June 5, 2010, domestic raw steel production was 1,785,000
net tons while the capability utilization rate was 73.8 percent. Production
was 1,095,000 tons in the week ending June 5, 2009, while the capability
utilization then was 45.7 percent. The current week production represents
a 63.1 percent increase from the same period in the previous year. Production
for the week ending June 5, 2010 is up 1.1 percent from the previous week
ending May 29, 2010 when production was 1,766,000 tons and the rate of capability
utilization was 73.0 percent.
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) Agricultural, Communications Share
Sales May Miss Target on Market Slump // Hon Hai Falls as Foxconn Unit Doubles
Workers' Wages After China Suicides // Hong Kong Land Auction Estimates Cut
as Caution Grows on Home Sales Drop // Bangkok Protests, Ash Cloud May Lead
to Thai Airways Loss, Piyasvasti Says // Asian Stocks, Euro Tumble on U.S.
Jobs Report, Hungary Debt; Bonds Rally // Merkel Seeks `Decisive' German
Budget Cuts, Putting Her at Odds With U.S. // Euro Stronger Than Deutsche
Mark Proves Trichet Currency Remains Credible // German Bond Yield Falls
to Low as Risk Aversion Increases on Debt Crisis // G-20 Policy Coordination
Fails as World Faces `Sub-Potential' Growth Rate // German Manufacturing
Orders Unexpectedly Jump by 2.8% for a Second Month // European Stocks Decline
as Basic-Resources Companies Retreat; Adidas Rises // Economic Rebound in
U.S. Seen Slowing Most Since 2002 on Europe Debt Woes // Hoarding Treasuries
Helps Bond Dealers Sleep as Europe Debt Woes Increase // Spreading European
Fiscal Deficit Crisis Hurts Bank Swaps: Credit Markets // Goldman Sachs
Documents Subpoenaed by U.S. Financial-Crisis Investigators // Bear Market
Options at Record as Wien Insists U.S. Stocks Poised to Rally
The Euro is presently trading only slightly lower against the US Dollar.
NYMEX crud eis trading 2/3 of 1% higher and near $72/barrel. Gold i sup
over 1-1/2% on safe haven buying and silver is up nearly 4%. Except for nickel,
base metals ended the day lower. Indicator charts show nickel started higher,
then turned volatile but held its ground as the Euro strengthened, then lost
some steam. For the day, Dow Jones reports three month nickel ended the day
at $8.26/lb
, its first
daily increase in six sessions. Inventories of stockpiled nickel stored in
LME approved warehouses continue to fall and now sit just over the 135,400
tonne level. Sucden's day old chart shows nickel trading thru last week
(chart here). We feel nickel prices have the chance this
week to show a little technical bounce potential for a couple of reasons.
First, the SStoch and RSI show nickel is showing nickel technically oversold.
For those who trade by charts alone, this gives them a purchase alert, although
as .Ed Meir noted this morning "Nevertheless, with key support at $19,500
taken out last week, effectively bringing to an end the last upchannel evident
on the charts, we are now looking at an eventual push towards $17,000". Secondly,
as we hover just over the $8/lb mark, we are trading dangerously close to
the break even point for many China pig nickel producers. The possibility
that a few of the majors may close or shift their production to another metal,
could encourage traders. The negative pressures on nickel are however, more
obvious, which makes our bounce idea more of a guess than anything else.
China demand is dropping with the China stainless steel price index we follow
still declining and now at 102.47, a new low for the year (see below for
last 12 months). The sovereign debt problems in Europe and the pressure
on the Euro is adding downward pressure to base metal trading. Nickel didn't
seem to be held as hostage to the Euro's up and down swings today. The economic
recovery in the US has never been as strong as we have been led to believe,
with forward momentum spotty and sector driven. Now we are being warned the
fiasco in Europe will most likely have a negative and spreading impact
on world recovery. At the very least it has shaken confidence worldwide,
and confidence will drive the worldwide recovery more than any single factor.
A reader brought something to our attention and while we have yet to speak
with anyone at AK Steel about it, it would appear they have changed their
stainless steel surcharge program. The listed surcharges for July show two
separate surcharges depending on the thickness of the stainless. The stainless
steel surcharge for 28 gauge and thicker stainless steel did in fact fall
from the flat surcharge in June. BUT the new surcharge lists a separate price
for stainless 29 gauge and thinner, and that surcharge actually increased
from June surcharges. June's 304 SS surcharge was $1.2748/lb. July surcharge
for 28 gauge and thicker 304 shows the July surcharge dropping to $1.131/lb,
but the 29 gauge and thinner surcharge rising to $1.3007/lb. The very frustrated
stainless steel enduser who brought this to our attention also asked, will
Allegheny and North America follow suit? We are unable to advise because
we were unable to contact a spokesperson for any of the three companies this
morning. But stay tuned. Like the airline industry and their "fees", the
steel companies tend to follow each others footsteps in new pricing structures.
Diminishing Marginal productivity of Debt in the US Economy -
image here
China Stainless
Steel Index (last 12 months)
Asia's steel demand
seen up 8-9 pct - Tata Steel - Strong economic growth could boost steel demand
in Asia by 9 percent annually in the coming years, an executive with Tata
Steel said on Monday. -
more
Forum of steel firms
calls for stricter anti-dumping norms - The Indian Stainless Steel Development
Association, whose member companies have had to lower prices by as much as
Rs 10,000 per tonne in the last couple of months, has called for more stringent
anti-dumping measures and a higher excise levy on import of stainless
strips by China by an additional 5 per cent. -
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
higher, with other
base metals trading lower this morning. The Euro is trading 1/10 of 1% lower
against the US Dollar at the moment. NYMEX crude futures are down 1/3 of
1% and at $71.28/barrel. Gold opened lower by 6/10 of 1% and silver is off
nearly 2/10 of 1%. In overnight trading, Asian markets ended lower with China
off 1-3/4%. European markets are trading only slightly higher this morning,
while US futures are showing no change at the moment. Nickel inventories
fell over the weekend, and Morgan Stanley stated in a morning report "Base
metals continued to be influenced by broader market sentiment that remained
negative last week courtesy of fresh concerns from Europe and a poor reading
from the U.S. jobs report..... We believe the complex will remain hostage
to global macroeconomic themes in the coming weeks and may also struggle
against the onset of the seasonal slowdown."
Good Safety Practice in Stainless Steel -
pdf here
Commodity/Economic Comments
Edward Meir of MF Global Morning Comments - A weaker-than-forecast US jobs
report pummeled the metals markets on Friday. Copper hit a four-month low,
zinc dipped to a 10-month low, nickel and tin both sank to four-month lows,
aluminum slipped to an eight-month low, while lead fared the worst, down
to its lowest level in almost a year. On the equity side of things, things
were just as ugly, with Friday's 300-plus point plunge on the Dow constituting
the biggest drop on a monthly jobs report since 1998. The report showed jobs
increasing by 431,000, but this was well below estimates, and more alarmingly,
all but 20,000 of the additional hires were attributable to the government's
temporary hiring of census workers. Markets also buckled under the weight
of renewed weakness in the euro, which took out key psychological support
at $1.20 on rumors that Hungary could be in trouble. The jitters came about
when a government minister in the newly installed administration compared
the country's financial profile to Greece, while also implying that the previous
government had lied about the country's finances. The comments triggered
a 4.8%, two-day drop in the forint, and although the Hungarians quickly
backtracked on the statement, this did little to undo the damage. As we start
the new week, indications are that the bears are picking up from where they
left off on Friday. Metals are down once again, feeding off a limit down
session in Shanghai, although they have staged a modest bounce off much lower
levels. Moreover, the Euro is once again under siege, now trading at $1.1950,
although it did get to $1.1877 at an earlier point in the day. Asian equity
markets ended the day lower as well, as Friday's sloppy close in the US left
them little choice. We expect synchronized selling to continue in practically
all the markets going into Monday's session, with the exception of the US
dollar and treasuries, which will revert to their role as safe havens. However,
things are getting quite oversold in a number of metal complexes, with four
of the six metals we cover showing RSI’ running in the 20’s, possibly
indicative that a technical bounce is imminent. ..... We are $18,145
on nickel, up $195, and the only metal that is higher today. Nevertheless,
with key support at $19,500 taken out last week, effectively bringing to
an end the last upchannel evident on the charts, we are now looking at an
eventual push towards $17,000. (read Ed Meir's complete morning
base metals report
here)
(Yieh) Tata Steel forecasted the steel consumption in Asia may grow by 9
percent based on the inference that steel consumption growth rate is estimated
at 1.3 times GDP growth in developing countries.
(SS) Albidon Zambia Ltd, Zambia's Chinese majority owned Munali Nickel Mine
produced more than 78,000 tons of ore with 81% nickel quality during the
first 3 months of 2010, barely 3 months after it resumed production.
(Yieh) China Steel Corp. (CSC) said that its allocation in July and August
for domestic customers has been fully booked and so has July’s allocation
for export. Now only export allocation for August is available but it may
be running out soon after the company announce new price later this month.
(Interfax) A molybdenum deposit with proven resources of 300,000 tons has
been discovered in the city of Hami in the Xinjiang Uyghur Autonomous Region,
state media reported on June 5.
(AP) Trust Bearing Investment Pte Ltd of Singapore has acquired 35% of PT
Asia Natural Resources which has nickel mining concession in Bombana, Southeast
Sulawesi.
(JC) Molybdenum prices have continued to fall in recent days as traders liquidate
long positions, June stainless steel mills order books look tepid and the
Chinese have moved from being buyers to sellers.
(XECI) Jinchuan cuts refined nickel price by 7 pct to RMB156,000 /t
Cass - May's freight expenditures and shipments both increased from the previous
month's activity. This is the fourth month in a row that both indices have
increased over the previous month's activity. This is also the first time
shipments are above 1.0 since November of 2008.
50 Statistics About The U.S. Economy That Are Almost Too Crazy To Believe
-
more
Stainless
Steel & Special Alloys Committee: Markets still fragile - Global production
of stainless steel is likely to exceed 30m tonnes this year compared to less
than 24m tonnes in 2009, with 50% of this output likely to be from emerging
markets such as China, India, the Middle East and South America, the BIR
Stainless Steel & Special Alloys Committee meeting in Istanbul was informed
by its Chairman Michael Wright of ELG Haniel GmbH. -
more
Colombia's Cerro
Matoso sees fall in nickel output in Q1 - Nickel production at BHP Billiton's
Cerro Matoso mine in Colombia fell 11.5 percent in the first quarter due
to lower ore extraction and the repair of a transport system, the company
said. -
more
Molybdenum
Production In Western World Is Moving To Increase, Output In Q1/10 Increased
By 22% = Reflecting Recovered Moly Consumption At Steel Mills And Substantially
Improved Profitability - When we traced the production activities of molybdenum
in the western countries in the first quarter (January - March) of 2010,
it was known that the total quantity of molybdenum produced by the western
countries in January - March quarter of 2010 had a considerable increase
of 21.8% compared with that in the same quarter of 2009. -
more
Tan firm starts
Palawan nickel mine rehab project - Macroasia Corp., a listed aviation support
company led by tycoon Lucio Tan, has started pre development activities in
line with a plan to revive a nickel mine in Southern Palawan.
- more
Lawmakers Support
Revision for Inco South Sulawesi Mining Contract - Regional representatives
(senate) supported the regional administration of South Sulawesi to evaluate
mining contract of Brazilian Vale-Inco unit in the province in a meeting
between the representatives and regional administration in the provincial
seat of Makassar Makassar today (7/6). -
more
Steel exports may
falter after policy change - Chinese steel exporters may see hurdles later
this year, as the country is set to limit exports in high polluting, high
energy-consuming, and resource sectors, according to media reports Monday.
-
more
BRIC Nations
driving steel market - During a two-day meet in Moscow between President
Dmitry Medvedev of Russia and President Luiz Inacio Lula da Silva of Brazil,
the two nations signed a ‘strategic partnership plan’ that includes
cooperation programs on agriculture, humanitarian issues, military matters,
international information and communication security, and protection of
intellectual property copyright. -
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) Dollar Trades Near Four-Year High Against
Euro; Won Falls on War Concern // Japan's Recovery to Slow as Politics Takes
Pressure Off BOJ, Feldman Says // Morgan Stanley to Double Private Bankers
in Asia in 3 Years to Tap Wealth // Mukherjee Says Spread of Europe's Credit
Crisis Would Hurt Indian Economy // Indonesia, Philippines Leave Rates at
Record Lows as Asia Watches Europe // Hungarian Economy Is in `Grave Situation,'
Prime Minister's Spokesman Says // Euro Weakens to Less Than $1.21, Trading
at Lowest Level Since April 2006 // EU-Backed Rival to Moody's, S&P Faces
`Uphill Struggle' to Win Credibility // Caja Credit Squeeze Spells More Pain
Ahead for Spanish Companies, Workers // G-20 Officials Indicate They'll Delay
Forcing Banks to Meet Capital Rules // European Stocks Drop as Debt
Concern Mounts, U.S. Payrolls Trail Forecast // Payrolls in U.S. Climb Less
Than Estimated as Confidence in Recovery Wanes // Gross Says Treasuries Are
`Least Dirty Shirt' in World of Debt: Tom Keene // Fisher Says Fed Policy
Tightening May be `Getting Closer' as Economy Grows // Obama's Drilling Ban
May Trigger Job Losses, Slow U.S. Employment Gains // Stocks, Commodities
Drop; Euro Falls Below $1.20 for First Time Since 2006
Another very ugly day so far, after US payrolls disappoint traders. The Euro
is currently trading nearly 1.3% lower against the US Dollar. NYMEX crude
oil is down more than 3-1/2% and under $72/barrel. Gold is up 2/3 of 1% on
safe haven buying, while silver is down over 2.6%. Base metals got whacked
again today, with tin getting hit the worst, nearly 10%. Indicator charts
show nickel was a stair step downward day, with four attempts of recovery,
met with four stronger declines. Dow Jones reports three month nickel ended
the first week of May at $8.14/lb
. The year
began with nickel closing at $8.62/lb the first day of January, with a decline
to a low close of $7.72/lb on February 5th, when prices began to gain again.
Today's price puts up back to February 10th levels. Inventories of nickel
stockpiled in LME warehouses fell again overnight, and now sit just under
the 136,000 tonne level. Sucden's day old chart shows trading thru yesterday
(chart here). We have never tried to hide our cynicism
at the price increase we witnessed in nickel over the last few months. We
felt it was unjustified and mere speculation by funds and large investors.
But, having said that, we are quite surprised at the pace the price of nickel
has declined this week. Technical watchers will tell us that it was too be
expected with major lines of support being broken. And while this is true,
we would like to think there is a little more involved with the price of
nickel than a bunch of charts and indicator lines on a computer screen. Support,
resistance, trend lines - they all have been around for while and some trade
off them exclusively. Do fundamentals, or at least our individual interpretation
of them, mean nothing anymore? We were scorned by a few readers for reminding
them that while inventories were falling, in April, they were still near
all time record high levels. Did this justify the price of $12/lb+ for nickel?
If it did, I remind them we have a lot less nickel stockpiled today than
we did then. And Norilsk is not shipping this month. And Vale workers are
still on strike. Downstream, stainless steel users don't know whether to
laugh or cry. These constant and sharp up and down swings have huge repercussions
on their bottom line and they have no idea what tomorrow will bring. Without
some degree of certainty, the last few years have taught them that the risk
takers usually get holding the short end of the straw - or the over priced
inventory. End users, who get tired of the same uncertainty and week to week
shifts in price, begin to consider other options. Unemployment numbers out
today in the US were flat horrible. We told you yesterday we didn't see the
big gains everyone was hoping for, but this was ugly. One sentence from a
MarketWatch article sums up how bad. "Excluding 411,000 temporary Census
workers, payrolls rose by 20,000 in May." That number was even depressing
to the "told you so" doomsayers. Let's hope it is a very "long" census.
The Dow is currently trading down in the negative 250 range.
Have a safe and relaxing weekend. You survived another week.
No deal yet, but
some progress at Vale strikes - Strikes that have crippled production at
Vale's Canadian mining operations appear to be finally edging towards a
resolution, although lingering disputes over pensions and a prized "nickel
bonus" mean the already 10-month-long dispute could stretch into summer.
-
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:25 am CST show 3 month nickel trading around $.10/lb
lower, with other
base metals trading mixed and subdued. The Euro is trading 8/10 of 1% lower
against the US Dollar at the moment. NYMEX crude futures are down more than
1/2 of 1% and at $74.20/barrel. Gold is down nearly 1/2 of 1% while silver
is off by nearly 1-1/4%. In overnight trading, Asian markets ended slightly
lower, while China ended up nearly 1/3 of 1%. European markets are trading
slightly lower while US futures are showing Wall Street may open in a bearish
mood. Nickel inventories fell overnight. We delayed our morning update to
show the all important employment report release this morning, which will
give all open markets a direction to trade in for the rest of the day.
Posted
here (not as good as expected)
Stainless steel and CO2: Facts and scientific observations -
pdf here
Commodity/Economic Comments
Edward Meir of MF Global Morning Comments - LME metals fell sharply on Thursday;
copper was off by some 3%, falling to its lowest level in two weeks, while
lead and zinc got pummeled as well. The decline surprised us, as it occurred
despite steady US equity markets, another sharp advance in oil prices, and
relatively decent macro numbers out of the US. Although the Euro did fade
over the course of yesterday's session and could have been partly responsible
for the weakness, we should note that even when the Euro was higher earlier
in the day, metals failed to respond. The fact that the group has decoupled
from relatively constructive exogenous markets so far this week, suggests
that that the metals complex is focused more on China than anything else.
In this regard, the lower-than-expected purchasing index out earlier in the
week seems to be casting a long shadow. We are not sure how much credence
to place into this one particular number, as seasonal influences may have
depressed the reading somewhat, and so we would rather wait for further readings
before having a better sense on whether China’s economy is slowing.
However, the fact that the authorities continue to tighten conditions certainly
seems to be making the case for a slowdown, as are the bevy of reports on
residential and commercial office space sitting empty. Metal markets are
down again as of this writing, but the declines are not as extensive as they
were yesterday. Having said that, both copper and aluminum are approaching
support levels at $6400 and $1950 respectively, but lead and zinc look in
far worse shape on the charts, having broken through short-term congestion
bands earlier in the week. Nickel has also finally taken out key tend line
support at $19,500, so the deteriorating technical picture in many complexes
is only reinforcing the legitimate worries about China. Later today, markets
will be bracing for the key non-farm May payroll readings, estimated at 500,000
jobs (including census workers). MF Global’s chief economist, Jim Sullivan,
is forecasting a 515,000 rise in total payrolls, including a 415,000 boost
from hiring for the decennial census. We also should note that Goldman Sachs
has raised its forecast yesterday to around 600,000. Expect a lot of volatility
around this release. ..... We are $18,360 on nickel, down $315. Nickel took
out support at $19,500 yesterday, effectively bringing to an end the last
upchannel evident on the charts. (See below). We are now looking at a push
towards $17,000. (read Ed Meir's complete morning base metals report
here)
(Yieh) The Bureau of Geology and Mineral Exploration of Anhui Province of
China announced the discovery of a molybdenum deposit with more than 500,000
tons of proven reserves in Jinzhai County.
(Yieh) Mr. Yu-Lon Chiao, Chairman and President of Taiwan’s Walsin Lihwa
said today that it will build up a new stainless steel hot rolled pickling
plant in Taichung Harbor which is estimated to complete within three years.
(Interfax) aoshan Iron and Steel Co. Ltd. (Baosteel), the Shanghai Stock
Exchange-listed subsidiary of China's leading steelmaker, Baosteel Group,
will cut its July ex-works prices for major steel products by between RMB
200 ($29.29) and RMB 500 ($73.23) per ton, Baosteel announced on June 4.
(JMB) NSSC to Increase Ni Stainless Steel Wire Rod by 65,000 yen/t
(MB) Europe's stainless long product mills urgently need to consolidate but
it's unlikely to happen because most of them are privately owned, said Markus
Moll
(SBB) Stainless market grinds to a halt as buyers await price cut
(BR) Steel merchant group Argent Industrial expected headline earnings and
earnings a share to fall by between 85 percent and 95 percent for the year
to March, the group said in a statement to the JSE yesterday.
(CM) China's apparent consumption of stainless steel, the main driver of
the country's nickel demand, is expected to rise by five percent in 2010,
Lou Dingbo, president of Shanghai-based steelmaker Baosteel stainless steel
Business Unit, said on May 25.
(MP) Stainless cutbacks weigh heavily on Chinese ferro-chrome prices
(PR) Xstrata Nickel is pleased to announce that it has presented a cheque
in the amount of Cdn$7.7 million to the Makivik Corporation, representing
its share of the profits generated in 2009 by the Raglan nickel mine operation,
located in the Nunavik Territory of Northern Quebec.
Minara slumps as fault prompts production query -
more
Chinese exporters ditch wounded euro for dollars -
more
MEPS North American
Composite Stainless Steel Pries Doubles Year on Year - The MEPS North American
composite stainless steel selling figure has climbed significantly since
the beginning of 2010. -
more
Market Tendency
On Imports Of Ferro-Alloys At 31st May 2010 = Reflecting Weakened Rupee Ex.
Rate, Indian Si-Mn Has Taken Offensive To Sell At Discounted Price The market
tendency by item on imports of ferro-alloys into Japan at the 31st May of
2010 is as follows -
more
N.L. mine will
replace strikers: Vale - Brazilian mining giant Vale says it will continue
to use replacement workers at its Voisey's Bay nickel mine in northern Labrador.
-
more
'Several flaws'
in Rudd super-profits tax, says Future Fund chairman David Murray - The Rudd
government refused to back down on its proposed resource super-profits tax
today despite the chairman of its $68 billion Future Fund joining calls for
the tax to be changed or scrapped. -
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) Xstrata Suspends $495 Million of Spending
in Australia on Government Tax // Kiwi Favorite of Speculators With Bollard
Under Pressure to Increase Rates // Indonesian Central Bank Leaves Benchmark
Interest Rate Unchanged at 6.5% // Kan Learns Fiscal Discipline From Debt
Crisis as Japan Leadership Beckons // Asian Stocks Rise, Default Risk Falls
on U.S. Home, Car Sales; Yen Weakens // BP's Alaskan Crown Jewel May Be Sold
to Finance Cleanup of Gulf Oil Spill // JPMorgan Fined Record $49 Million
by U.K.'s FSA Over Client Money Failure // Insurers Raise Deep-Water Oil
Rig Prices 50% After BP Spill, Moody's Says // Covered Bond Sales Surge,
Transocean Falls, GE Buys CMBS: Credit Markets // G-20 Central Banks Delay
Stimulus Exit as Euro Debt Concerns Rattle Market // European Stocks Rise
for Fourth Day on Speculation Recovery Is Broadening // Fed's Lockhart Says
Interest Rates May Rise With Unemployment Still High // U.S. Service Industries,
Factory Orders Expand as Recovery Generates Jobs // Unemployment Rate May
Fall Below 8% in a Year, First Trust's Wesbury Says // Target, Discount Stores
Report Sales Gains as U.S. Shoppers Seek Bargains // Stocks in U.S. Drop
as Europe, China Concerns Overshadow Economic Optimism
The Euro is now trading 2/3 of 1% lower against the US Dollar. NYMEX crude
is down 1/3 of 1% but still over $72.50/barrel. Gold - down 1/4%. Silver
- down 2-1/3%. Base metals - got whacked today. Indicator charts show nickel
spent most of the day in a near free fall, only finding its footing in the
last hours. Dow Jones reports three month nickel ended $1000/tonne lower
than yesterday, at $8.46/lb
. For those
who still believe commodity pricing is a precursor to the economy at large,
we hope you are wrong because this is ugly. Inventories of nickel stockpiled
in LME approved warehouses continue to slide, and now register just over
the 136,800 tonne level. Sucden's day old chart shows nickel trading thru
yesterday
(chart here). The price of nickel is now 2/3 of what it
was just 7 weeks ago, when it ended the 15th of April at $12.58/lb. The China
stainless steel index that we refer to periodically, fell to its lowest level
this year overnight, at 104.11 after starting the year at 105.95. Wall Street
is lower at the moment after US data implied the economic growth in the US
was showing signs of slowing. US factory orders rose 1.2% in April, lower
than expected, but take out transportation goods and new orders fell .05%.
Last weeks new jobless claims fell 10,000, but the 4 week average rose for
the third consecutive week. Retail sales rose 2.6% in May, with discounters
and high end stores faring the best. The market is very nervous about the
big report tomorrow - the May unemployment number. After a surprising rise
in April, economists are betting on a 100,000+ increase in new jobs in May.
The ADP report out today states 55,000 new jobs were created, while the
unemployment roles and Challenger, Gray & Christmas, Inc. layoffs report
imply a virtual dead heat from April numbers.
(TS) The global nickel market will be in a slight deficit this year, metal
consultant Metalytics Ltd reported Wednesday. Primary nickel consumption
is likely to climb 9.5 percent in 2010 to 1.435 million tons, while primary
nickel supply is only expected to rise 5.3 percent to 1.4 million tons, resulting
in a deficit of 35,000 tons. ..... But even with economies picking up, Barkas
said,"the world is relying on China for the next stage of large (nickel)
growth."
Monster Employment Index Points to Further Jobs Gains -
more
Econophysicist Accurately Forecasts Gold Price Collapse -
more
Metals volatility
sparks opportunity - When iron ore pricing moved in March from its historic
benchmark pricing structure to the spot market, users warned that prices
could double. -
more
Asia Steel-China
prices dip 2 pct on demand fears - China steel prices slumped this week in
a torpid market, with traders still fretting about long-term demand after
a number of medium-sized steel mills decided to make production cuts going
into June. -
more
Asian average
carbon steel prices - Latest forecasts from MEPS - An increase of approximately
$US40 per tonne was recorded in the MEPS – Asian All Products Composite
steel price in May. Advances were noted in both flat and long categories
this month. -
more
Australia plays
down prison transfer for Rio Tinto's Hu - Canberra on Wednesday downplayed
the prospect of a prison transfer from China to allow former Rio Tinto executive
Stern Hu to serve out his bribery and trade secrets sentence in Australia.
-
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.17/lb
, with other base
metals mixed and mostly quiet. The Euro is trading slightly higher against
the US Dollar at the moment, and off earlier highs. NYMEX crude futures are
trading 1/2 of 1% higher and over $73.25/barrel. Gold opened over 1/2 of
1% lower, and silver is down more than 4/10 of 1%. In overnight trading,
Asian markets ended higher, with China 3/4 of 1% lower. European markets
are trading higher this morning and US futures show Wall Street should open
higher. Nickel inventories continued their decline overnight.
Edward Meir of MF Global Morning Comments - Copper hit a two-week low at
one point yesterday, while the rest of the metals struggled as well-- zinc
tumbled to its lowest since September 2009, nickel fell by more than 5% to
hit a near four-month low, while lead sank to a 10-month low. Although the
group did manage to regain some ground by the close, the failure to recover
more decisively was surprising given the sharp rebound in US equity markets
and the modest rebound we had in crude. This morning's performance also looks
disappointing, with the metals complex largely mixed, this despite a follow-up
rally in Asian and European stock markets and a slight recovery in the Euro.
Even news out overnight that that Xstrata is suspending almost $1 billion
in coal and copper mining projects in Australia largely on account of Canberra's
onerous new mining tax, has failed to rally copper, now only mildly in positive
territory, and off its intraday high of $6774. Given another expected strong
open on Wall Street, coupled with the fact that the Euro is holding steady
at $1.2247, we have to suspect that metals will regroup and attempt to push
slightly higher over the course of the day and leading into tomorrow's key
nonfarm payroll number. If they do not, they will be in effect reacting poorly
to a relatively constructive exogenous atmosphere, and this could bode poorly
for the complex heading into next week. However, we suspect that with the
short-term pendulum now swinging upwards, metals should follow, the current
disconnect notwithstanding. .... We are $19,625 on nickel, down
$25. Nickel did breach key trend line support at $19,500 yesterday, but managed
to close above it. This point is being closely watched, as a convincing break
below it will effectively end the last upchannel evident on the
charts. (read Ed Meir's complete morning base metals report
here)
(Interfax) Tongling Nonferrous Metals Group, a major copper smelter, plans
to develop a large-sized molybdenum deposit in Anhui Province, domestic media
reported on June 2.
(Interfax) China's stainless steel output is expected to increase by 10 percent
year-on-year in 2010 to nearly 10 million tons, a senior official from the
Stainless Steel Council of China Special Steel Enterprises Association (CSSC)
told Interfax at a June 1 conference in Tianjin.
(Dow Jones) Mincor CEO: Miitel Mine May Produce First Nickel This Month
(JMB) NSSC Reduces Ni Stainless Steel Sheet, Plate by 40,000 yen/t
(SBB) Tang Eng cuts stainless output, drops export prices $300/t
(AISI) 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 May totaled 2,148,000 net tons (NT).
Russia April Stainless
Steel Products Imports -6.3% On Month - Russian imports of stainless steel
products in April fell by 6.3%, compared with March, to 14,240 metric tons,
the special steels producers' association Spetsstal reported Thursday. -
more
Increased Exports
Of Chinese Molybdenum Are Causing To Improve Rapidly Trade Balance In China
= Transformed The Balance To Export : 1 Against Import : 1.8 - The exports
of molybdenum from China are suddenly increasing from the beginning of 2010.
Consequently, the trade balance on molybdenum in China for January - April
of 2010 has transformed its composition to export of 1 against import of
1.83. -
more
Industry to seek
restrictive duty on steel alloy imports from China - Stainless steel makers
on Wednesday said they will approach the Commerce Ministry for imposition
of anti-dumping duty on certain grades of the alloy from China to protect
the domestic mills from cheap imports. -
more
Merafe to
close furnaces for maintenance,cut output - South Africa's Merafe Resources
said on Monday it will close 10 furnaces for routine maintenance in the next
three months, which will see the company reducing its operation capacity.
-
more
Firm pushes
Palawan nickel project - Toledo Mining Corp Plc, a London-registered mining
company with nickel projects in Palawan, said the development of its prospect
in Barangay Ipilan, Brookes Point in Palawan, could start as early as 2011.
-
more
No room for
compromise in Rudd's super-profit tax, says Ian Smith - The Australian
government's handling of its proposed resource super-profits tax leaves no
room for compromise with industry, Newcrest chief executive Ian Smith said
today. -
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) Prudential's Failed AIA Bid May Cost
Company $660 Million, Thiam His Job // Thailand Leaves Interest Rates Unchanged
as Political Unrest Hurts Growth // Honda Aims to Resume China Operations
Today After Strikes Shut Production // Japan Stocks Fall, Yen Weakens as
Hatoyama Quits After Popularity Plunge // Asian Stocks Drop, Yen Weakens
as Hatoyama Quits in Japan; Metals Decline // BP's Future at Risk as Oil
Spill, Share Plunge Prompt Takeover Speculation // Spanish Consumer Confidence
Plunges Most on Record Amid Austerity Measures // Iran Selling 45 Billion
Euros of Reserves for Dollars as Currency Weakens // European Stocks Close
Little Changed; Food Companies Gain, Banks Decline // Announced U.S. Job
Cuts Tumbled 65% From a Year Earlier, Challenger Says // Chrysler's U.S.
Vehicle Sales Increase 33%, Beating Forecast for 21% Gain // New-Issue Market
Remains Shut as Bank Default Swaps Rise: Credit Markets // Pending Sales
of Existing U.S. Homes Rose 6% in Last Month of Tax Credit
The Euro is presently trading 2/10 of 1% higher against the US Dollar. NYMEX
crude is up 1-1/2% and over $73.50/barrel. Gold is down 1/3 of 1% and
silver is off more than 9/10 of 1%. Base metals ended the session lower,
but off earlier lows. Indicator charts show nickel opened lower, collapsed
around lunch time, and then crawled back to about where it started by the
end of the session. Dow Jones reports three month nickel ended the day at
$8.91/lb, its lowest close
since Feb 16th, which came only a week after the year's lowest close of the
year at $7.72/lb and the all time record high for LME stockpiles of nickel,
at 166,476 tonnes. Stockpiles of nickel stored in LME warehouses fell sharply
overnight, and now show totaling just over the 137,400 tonne level. Sucden's
day old chart shows LME nickel trading thru yesterday
(chart here). Cancelled warrants continue to hover around
the 4% level. Nickel appeared to have little life to it today, getting a
so-so push in late afternoon trading from a rising Euro and played follow
the equity markets. The daily stainless steel index we follow in China continues
to fall, down to 104.78 compared to 118.92 on April 21st, and we are receiving
reports that chrome and moly prices are declining in China. AK Steel announced
July surcharges today and they are linked to below. All in all - a quiet
day. (so far)
Munali mine in
$6m nickel output - Munali Nickel Mine has mined 78,200 tonnes of nickel
ore with 0.81 per cent nickel quality during the first quarter of this year,
recording a cash position of more than US$6 million, company secretary Daniel
Davis has said. -
more
Gerdau to Buy Out
Ameristeel Shares for $1.7 Billion - Gerdau SA, the largest Brazilian steelmaker,
said it plans to buy the shares it doesn’t already own of U.S. unit
Gerdau Ameristeel Corp. for about $1.7 billion to gain greater control over
its North American operations. -
more
Vale CEO: Quarterly
Iron Ore Pricing System Is Best - The quarterly pricing model is the best
method for iron ore, Roger Agnelli, president and chief executive officer
of Brazilian miner Vale S.A. (VALE), said Tuesday. -
more
Vale says iron ore prices set by market, not miners - Brazilian mining giant
Vale has already set contract iron ore prices for the third quarter of this
year and offered them to its customers, the company's ferrous metals director,
Jose Carlos Martins, said. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.28/lb
lower, with all base
metals trading lower, The Euro is trading less than 1/10 of 1% lower against
the US Dollar at the moment. NYMEX crude futures are up 1/10 of 1% and at
$72.66/barrel. Gold has opened nearly 6/10 of 1% lower, while silver is down
nearly 1/2 of 1%. In overnight trading, Asian markets ended lower, with China
ending 1/2 of 1% higher. European markets are trading lower this morning,
with US futures showing Wall Street may start in the positive. Nickel inventories
fell overnight.
Edward Meir of MF Global Morning Comments - Metals lost ground yesterday,
but values finished off their worst levels of the day, as a bounce in the
Euro from a four-year low of 1.2111 alleviated some of the selling pressure.
Constructive macro data out of the US also helped trim the losses. In this
regard, we had reports that US manufacturing grew for a 10th straight month
in May and came in slightly more than expected, while April construction
spending increased by its fastest pace in nearly 10 years. However, the numbers
were not enough to turn the commodity complex around entirely, partly because
of another late-day fade in the US equity markets. Stocks lost ground on
renewed weakness in the energy sector after the Justice Department announced
a criminal probe into the Gulf spill. Although metals ticked slightly higher
in early Asian trading overnight, those gains have since fizzled, and we
are now lower across the board, although not as sharply as of this time
yesterday. The Euro is relatively steady right now, trading at 1.2227. Crude
oil markets are down, off by about $.50 a barrel, but US stocks are called
to open higher, although we would not be surprised to see another fade set
in as the day goes by. At this stage, there are too many headwinds preventing
a number of commodity complexes --including metals-- from mounting a credible
recovery. Chief among them: the fact that the Euro has yet to bottom out,
while the US equity market has been derailed as a positive force in establishing
upward momentum. There are also ongoing concerns about the global recovery
slowing in the wake of the uncertainties in Europe and steadily tightening
credit conditions in China. .... We are $19,950 on nickel, down
$550, and breaking one of two support level identified in yesterday's commentary.
We now expect prices to test $19,500, a point that lies along a key upchannel.
A convincing break below that mark will effectively end the last upchannel
evident on the charts. (read Ed Meir's complete morning base metals
report
here)
(Interfax) JISCO aims to keep production costs down by using nickel pig iron
as the raw material in its production of stainless steel, a senior JISCO
employee said at a June 1 conference.
(BBC) The Ramu nickel cobalt project jointly operated by Metallurgical Corp
of China (MCC), Highlands Pacific Ltd (HPL) and other smaller miners is forecast
to produce 143m tonnes of high-grade minerals over its lifespan of more than
27 years. The reserves boast of 1.01 per cent nickel and 0.1 per cent cobalt,
chief executive John Gooding told an annual general meeting last week in
Port Moresby. He told shareholders the Ramu project was a "world-class project
that will have greater returns".
(RN) Third-quarter charge chrome price negotiations have begun but instead
of starting in Europe, the leading South African smelter is talking with
Asian consumers first.
(MB) Nickel pig iron is increasingly being produced in China via electric
arc furnaces (EAF), which are able to turn a profit at an even lower nickel
price
(JMB) Ni stainless steel scrap/ Market price in Kanto continues to drop by
over 5 thousand yen
Baosteel still in merger talks with Baogang -
more
(MDM) Construction spending in April 2010 was estimated at a seasonally adjusted
annual rate of $869.1 billion, 2.7 percent above the revised March estimate
of $845.9 billion, according to the U.S. Census Bureau of the Department
of Commerce. The April figure is 10.5 percent below the April 2009 estimate
of $971.4 billion.
More workers join
Voisey's Bay strike - More than 50 maintenance workers at the Voisey's Bay
nickel mine in northern Labrador have walked off the job, further complicating
mine owner Vale's efforts to ramp up production. -
more
Record global stainless
steel production forecast in 2010 - Global crude stainless steel production
for 2009 turned out at 24.6 million tonnes, a fall of 5 percent compared
with 2008. -
more
China Apparent
Consumption Of Nickel To Increase In 2010: Baosteel - China's apparent
consumption of stainless steel, the main driver of the country's nickel demand,
is expected to rise by five percent in 2010, Lou Dingbo, president of
Shanghai-based steelmaker Baosteel stainless steel Business Unit, said on
May 25. -
more
Cliffs Natural
Resources makes hostile offer for Spider Resources - In its relentless pursuit
of Canada's “Big Daddy” chromite deposit, Cleveland-based Cliffs
Natural Resources has made good on its threat to attempt a hostile takeover
of Ontario-based Spider Resources, which owns a stake in the deposit that
would give Cliffs control over Big Daddy. -
more
Landowners slam
Papua New Guinea for amending environment law - Papua New Guinea’s
government has upset conservationists, landowners and parliamentarians after
amending environmental laws last Friday that will make it harder to prosecute
mining projects that damage the environment. -
more
Citinickel
wins court battle vs. Platinum Group - The mining unit of Oriental Peninsula
Resources Group Inc. won a court decision that will allow the company to
finally conduct mining operations in its nickel-rich mine sites in southern
Palawan. -
more
IGE AB: IGE enters
strategic partnership for Rönnbäcken nickel project - IGE Resources
AB announced that the Company today has entered into a strategic partnership
with Mitchell River Group (MRG) of Australia for its Rönnbäcken
nickel project in Sweden. MRG has a strong value development track record
in nickel projects. -
more
Tax tipped to
halt new mines - Billions of dollars of new gold, nickel and copper mines
would be scrapped because of the planned resources super profits tax, a report
compiled for the Minerals Council of Australia predicts. -
more
Courtesy AISI - In
the week ending May 29, 2010, domestic raw steel production was 1,766,000
net tons while the capability utilization rate was 73.0 percent. Production
was 1,026,000 tons in the week ending May 29, 2009, while the capability
utilization then was 42.8 percent. The current week production represents
a 72.2 percent increase from the same period in the previous year. Production
for the week ending May 29, 2010 is down 1.2 percent from the previous week
ending May 22, 2010 when production was 1,787,000 tons and the rate of capability
utilization was 73.9 percent.
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 Real Estate Sales Slump in Shanghai,
Beijing on Government's Curbs // Nomura Triples Pay to Top Executives After
Bouncing Back From Record Loss // Russian IPOs Fail to Lure China's
Skeptics as Deripaska Seeks More Sales // Asia Stocks Drop as China Manufacturing
Growth Slows; Euro, Ringgit Weaken // BP Drops Most Since 1992 After Abandoning
Attempt to Plug Leaking Oil Well // Euro Weakens Against Dollar on Speculation
Crisis Hurting Region's Economy // Prudential Fails in Bid to Reduce Price
of AIA Takeover, Jeopardizing Deal // German Unemployment Drops Faster Than
Forecast as Exports Bolster Recovery // Most European Stocks Decline on Slowing
Manufacturing, BP Oil-Leak Failure // Bond Selloff Yields `Gems' for Tepper
as T. Rowe Buys Junk: Credit Markets // Commodities' Biggest Collapse Since
Lehman Fell Signals Bear Market Ahead // Caterpillar Buys EMD for $820 Million
From Berkshire Partners, Greenbriar // Manufacturing in U.S. Expands Faster
Than Forecast as Export Orders Climb // U.S. Stocks Fluctuate as Economic
Reports Offset Slump in Energy Producers
At the moment, the Euro is trading less than 1/4 of 1% lower against the
US Dollar. NYMEX crude is recovering from earlier losses and is now only
down a little over 1/2 of 1%. Gold is nearly 3/4 of 1% higher while silver
is lower by nearly 1/2 of 1%. Base metals all ended lower, but most off earlier
session lows. Indicator charts show nickel had a down day, falling, stabilizing
, slightly gaining, then collapsing late. Dow Jones reports three month nickel
ended the day at $9.28/lb
, its lowest
close since February 25th. Stockpiles of nickel stored in LME approved warehouses
slipped slightly over the weekend, and now rest just under the 138,400 tonne
level. Sucden's day old nickel chart shows nickel trading thru last week
(chart here). Cancelled warrants rose over 4%. Nickel
looked unimpressive today, for a third straight day, as the gain in the Euro
did not appear to help nickel at all. After making two strong runs last week,
that did not hold, nickel bulls seem to have lost their fight momentarily.
Our unofficial estimates put cash nickel at $9.98/lb average last month,
$.60/lb lower than April's average. This would be the first time since February
cash nickel has averaged below the $10/lb level. Allegheny has announced
July stainless steel surcharges
here. 304 stainless
steel surcharges show as falling $.19/lb from June to July. AK Steel has
yet to announce. We have updated our monthly world PMI tracker
here.
Chinese Monetary Official: Housing Risk Greater Than in US, UK Pre-Crisis
-
more
Despite U.S. deficit concerns, investors still pour money into Treasury bonds
-
more
Voestalpine warns
upswing may be short-lived - Austrian steelmaker voestalpine warned robust
demand in the next few months could be short-lived if China's uptrend proves
unsustainable and European debt woes cut short its recovery. -
more
PNG law to shield
resource giants from litigation - The Papua New Guinea parliament has passed
legislation that shelters resource projects from all litigation over the
destruction of the environment, labour abuse or landowner exploitation. -
more
Russia mulls revising
metals duties – Minister - Russia's economy ministry is looking into
revising some base metals export tariffs, but no dates for any changes have
been discussed, Economy Minister Elvira Nabiullina said on Tuesday. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.34/lb
lower, with all base
metals starting the new month trading in the red. The Euro is trading over
1.1% lower against the US Dollar at the moment adding pressure to commodity
trading. NYMEX crude futures are down 2.4% and just over $72/barrel. Gold
is up nearly 1% and silver is down over 1/2 of 1%. In overnight trading,
Asian marekts ended lower, with China off 1%. European markets are trading
lower this morning, and US futures show Wall Street could open in a bad mood.
Nickel inventories fell slightly over the weekend.
Edward Meir of MF Global Morning Comments - Copper prices retraced on Friday,
unable to bust through key $7000 resistance and selling off on the back of
another sloppy session in the US equity markets. Stocks lost ground shortly
after Fitch downgraded Spain's credit rating by one notch, saying that the
country's economic recovery will be "more muted" than government forecasts
due to recently announced austerity measures. On the macro side, US numbers
out Friday were not that inspiring either, with consumer spending turning
unexpectedly flat in April even though real disposable income showed it biggest
increase in nearly a year. In addition, the Institute for Supply
Management-Chicago said its index of Midwest business activity fell in May
vs. the month prior, and also came in slightly lower than forecast. Finally,
although the latest US consumer sentiment readings were up in May from April
levels, they edged out forecasts by only a slight amount, and did not deliver
a significant upside surprise. We are seeing more selling this morning, but
the pace is much stronger than what we saw on Friday, as a barrage of bearish
events are hitting the markets. To start, the Euro has plunged to a fresh
low, hitting $1.2111, and now within easy reach of the key $1.20 level. Investors
were unnerved by a report out of Europe yesterday showing an index of executive
and consumer sentiment falling to 98.4 from 100.6 in April, well below the
unchanged reading forecast. In addition, the ECB said in a bi-annual survey
(also out yesterday) that euro area banks might see another 90 billion Euros
in net write-downs this year. (This figure strikes us as relatively light,
as we have come across other estimates that are much larger than that). However,
perhaps the most important reason behind today’s sharp sell-off is news
out of China that the country’s May manufacturing output expanded at
a slower pace than estimated. A purchasing managers’ index fell to 53.9
from 55.7 in April, less than the median 54.5 estimate, while a separate
index released by HSBC and Markit Economics dipped to 52.7, its lowest level
in a year. Although the size of the first miss is not that great, and both
indices are still in the positive territory given that their readings are
well above 50, the decelerating trend is clearly casting a distinct bearish
shadow on base metals, many of which were being driven higher solely on the
notion that Chinese buying will grow unabated. ... We are $20,640 on
nickel, down $710, with prices perched on key support here (see blue line)
and a level that held up each time over the last few weeks. A decisive break
below $20,500 could set up a quick test of $19,500, nickel’s last bastion
of support, and one that lies along a key upchannel (marked in
red) (read Ed Meir's complete morning base metals report
here)
(Dow Jones) Seasonal lows in Chinese and European base metal demand in the
third quarter could cool demand and prices further, says SEB Commodity Research.
"In the medium term, we would expect more muted growth in European demand
[for base metals] due to reduced growth and austerity measures. The crisis
also threatens Chinese demand for metals as metal intensive exports to Europe
may be affected," SEB says.
(Yieh) Affected by the plummeting nickel price, Yieh United Steel Corp. (Yusco)
announced to cut the stainless steel domestic price and exported price by
NT$1,000-4,500/ton and US$80-150/ton for June, respectively.
The American Trucking Associations' advance seasonally adjusted (SA) For-Hire
Truck Tonnage Index increased for the sixth time in the last seven months,
gaining another 0.9 percent in April. This followed a 0.4 percent increase
in March. The latest improvement put the SA index at 110.2 (2000=100), which
is the highest level since September 2008. Over the last seven months, the
tonnage index grew a total of 6.5 percent.
(AP) Papua New Guinea's parliament has passed laws that will outlaw third
party lawsuits against resource projects in Papua New Guinea. The amendments
to the Environment Bill, which was passed 73-0, meant that the restraining
order preventing the Ramu nickel cobalt (Ramu NiCo) mine project in Madang
from operating would be lifted and operations to resume.
(SSI) The International Stainless Steel Forum (ISSF) has elected two new
members during its fourteenth Annual Conference (ISSF-14) in Rio de Janeiro,
Brazil. ISSF has now 72 members in 27 countries. The new company members
are the United Stainless Steel Company (USCO) from Bahrein and Villares Metals
from Brazil.
China's May manufacturing expands at slower pace -
more
China taps commodities
stockpile in bearish signal - China appears to be eating into some of its
commodities reserves, a potentially worrying near-term trend for producers
and investors, analysts said. -
more
Global Stainless
Steel Cycle Exemplifies China's Rise to Metal Dominance -
pdf report here
Palawan nickel
mine dispute nears ‘resolution’ - A bitter dispute between two
firms over the ownership of several lucrative nickel mines in Palawan is
nearing a resolution, with production and shipment of the commodity set to
begin in the coming months, according to the head of Oriental Peninsula Resources
Group. -
more
3 mining giants
to increase iron ore prices by 30% - BHP Billiton, Rio Tinto and CVRD, the
three mining giants, plan to increase the prices of the raw materials for
making steel, including iron ore and coking coal, according to overseas media
groups. -
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
All prices shown on this page are indications only. "A Guide To
LME
Trading"...pdf here "The ABCs of a Metals Exchange"
...pdf here(Molybdenum
prices are for molybdenum oxide, an ingredient and major price factor in
316 stainless) (all ton listings are metric tons = 2204.622 pounds ) Updated
daily before 8 am CST and before 1 pm CST weekdays -
DisclaimerCandlestick Pattern Dictionary
here / Intro to Candlesticks
here Original content and opinions copyright
www.estainlesssteel.com. Note - For real time and official
LME prices, LME requires a user subscribe to be an authorized LME vendor.
Daily
Nickel/Stainless Steel Wrap-up
(
. We
put our unofficial average price of cash nickel at around $8.41/lb for June,
down from $9.98/lb in May (our numbers, not official). This would
lead us to believe the stainless steel surcharge for August will be lower
than July's. Stockpiles of nickel stored worldwide in LME approved warehouses
continue to slump overnight, and now sit just over the 124,000 tonne level.
Sucden's day old nickel chart shows yesterday's huge sell-off
(
Reports
Commodity/Economic Articles and Comments
Talvivaara says
production ramp-up on track - Talvivaara Mining Co Plc said on Wednesday
the ramp-up of production at its mine in Finland was on track and it had
agreed credit line to boost financial flexibility. -
Truce over Norilsk
Nickel collapses - Moscow is bracing for a clash between two of its richest
men as a Kremlin-brokered ceasefire broke down in spectacular fashion. -
Negotiations
With Mining Industry Over Tax Are Constructive, Gillard Says - Australian
Prime Minister Julia Gillard said she’s encouraged by discussions over
the fate of a proposed mining tax amid newspaper reports that a compromise
may be in the works. -
EU fines steel
makers 518mln euros for price-fixing - The European Commission fined 17 steel
producers a total of 518 million euros (635 million dollars) on Wednesday
for running a price-fixing cartel, with industry giant ArcelorMittal hit
the hardest. -
2nd SAfrica
union rejects Eskom offer, plans strike - Members of the National Union of
Metalworkers of South Africa (Numsa) rejected a new pay offer from state-owned
utility Eskom and plan to strike next week during the World Cup, a union
spokesman said on Wednesday. -
Sudbury/Voisey's Bay Nickel Strike Coverage
Morning Nickel
Inventory and Price Statistics & Figures
Vale ramping up
Long Harbour work - Mining giant Vale is preparing to hire hundreds of more
workers to finish a gigantic nickel processing plant in southern Newfoundland.
-
Son Ha exports 2,000
tones of stainless steel pipe in first half - Son Ha Group has exported 2,000
tones of stainless steel pipe valued at VND 145 billion during the first
half of this year, according to Harry Lee, International Sale Manager for
Son Ha Products Exports. -
Court to decide limits
on retaliation ban - The Supreme Court will decide whether a company can
legally retaliate against an employee's friends, relatives or spouse for
the employee's filing of a discrimination claim. -
Stainless Steel
Market Becalmed - Seasonal effects on demand have combined with a fall in
nickel prices to bring about a lull in stainless steel sales. Customers are
attempting to control their inventories around the period of subdued activity.
- 
Cuba, Venezuela to
build joint ferronickel plant - Cuba and Venezuela began constructing a
US$700-million ferronickel plant in western Cuba, the official weekly
Trabajadores reported on Monday. -
Blackout on environment
law - Papua New Guinea has banned all reporting and public discussion of
controversial environment law amendments which could allow a Chinese miner
to pump waste out to sea, outraging a civil rights group. -
POSCO
to lower stainless steel prices for July - South Korea's POSCO , the world's
No.4 steelmaker, said in a statement on Monday that it would lower prices
of major stainless steel products by 300,000 won ($246.9) per tonne for July
to narrow the price gap with imports. -
Expect a deficit
Nickel market for next two years - London Metal Exchange (LME) nickel inventory
levels are down 20% from their peak in February and the latest International
Stainless Steel Forum (ISSF) production data suggests that the nickel market
will remain in deficit for 2010 and 2011. -
Miner finds
nickel deposit in Surigao - Canadian miner Mindoro Resources Ltd. has found
nickel deposit in its Agata mining project in Surigao del Norte in Mindanao.
-
Anti-Posco agitators
take out rallies in Paradip - Anti-Posco protesters observed a ''black day''.
-
Productions Of Nickels
In Japan For Jan. - Apr. 2010 Increased Considerably Compared To That In
2009 = Output Of Ferro-Nickel Increased by 21%, That Of Nickel Metal Also
Increased By 29% - The quantities of nickels produced in Japan in the first
4 months (January - April) of 2010 were known in last week. -
Solomons' Isabel
Gets Nickel Advisory Board - The Minister of Mines, Energy and Rural Electricity,
David Day Pacha has appointed members of an Isabel Nickel International Tender
committee. -
Eti Krom / Turkey
Enters Into Reduction In Production Of Ferro-Chrome = Exports Of Chrome Ore
From Turkey Will Come To Standstill For Regulations By Turkish Government
- Mr. Robert Yuksel Yildirim, who is President & CEO of Eti Krom Inc.
as a leading producer of chrome ore and ferro-chrome in Turkey, announced
on the 15th of June that, following ferro-chrome producers in South Africa
(Xstrata and Samancor Chrome), the Company has decided to reduce from the
1st of July its production of ferro-chrome at plants in Turkey and Sweden.
-
Global steel output
surges 29%: trade body - Global steel production surged 29 percent in May
from the level in May 2009, as output exceeded levels before the economic
crisis depressed demand, the World Steel Association said on Monday. -
Vale appears
untouched over acid spill in New Caledonia lagoon - Time appears to have
run out for legal action against the Vale New Caledonia nickel company in
New Caledonia. -
POSCO says talks
over Thainox temporarily halted - South Korea's POSCO, the world's No.4
steelmaker, said on Monday that its talks to acquire Thainox Stainless Pcl
are temporarily on hold, with no decisions made. -
Outokumpu to invest
EUR100 mln in Degerfors to increase capacity of stainless steel plate production
- Outokumpu invests EUR 104 mln to increase capability and capacity
of stainless steel quarto plate production in Degerfors(Sweden). -
Explorer’s
faith in nickel shored up by Tanzanian estimates - African Eagle Resources
MD Mark Parker on Tuesday defended a continuing focus on nickel mining, despite
the soaring prices of other metals, after the AIM- and JSE-listed exploration
company said a key deposit in Tanzania had a resource almost double the size
previously estimated. -
Can ThyssenKrupp
pass on costs to clients? - ThyssenKrupp, Germany's biggest steelmaker, is
seeking price increases for third-quarter deliveries amidst a declining price
trend in China, the world's top steel producer. -
Tax cut on Brazil
steel imports to hurt sector-Vale - Brazil's government must think carefully
before reducing taxes on imported steel to avert leaving local steelmakers
vulnerable to foreign competition, Vale Chief Executive Roger Agnelli said
on Friday. -
A better
way to extract metals? - Pulling precious metals out of the earth has always
seemed a crude and destructive process. -
Colombia's Cerro
Matoso sees fall in nickel output in Q1 - Nickel production at BHP Billiton's
Cerro Matoso mine in Colombia fell 11.5 percent in the first quarter due
to lower ore extraction and the repair of a transport system, the company
said. -
Lawmakers Support
Revision for Inco South Sulawesi Mining Contract - Regional representatives
(senate) supported the regional administration of South Sulawesi to evaluate
mining contract of Brazilian Vale-Inco unit in the province in a meeting
between the representatives and regional administration in the provincial
seat of Makassar Makassar today (7/6). -
Munali mine in
$6m nickel output - Munali Nickel Mine has mined 78,200 tonnes of nickel
ore with 0.81 per cent nickel quality during the first quarter of this year,
recording a cash position of more than US$6 million, company secretary Daniel
Davis has said. -
Voestalpine warns
upswing may be short-lived - Austrian steelmaker voestalpine warned robust
demand in the next few months could be short-lived if China's uptrend proves
unsustainable and European debt woes cut short its recovery. -
