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news covering the period of June 2020
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Tuesday, June 30
Daily Nickel/Stainless Steel Briefing
Nickel closed Monday's trading
session at $5.82/lb ($12,825/tonne). Indicators at 6:25 am CST today show
nickel trading around $.01/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose on
Monday and started the final day of June just under the 233,900 tonne
level. Shanghai markets apparently decided they didn't want to get left
behind in this recent bullish sprint and rose overnight. This morning,
nickel traders are mostly quiet, with a strengthening US Dollar adding
negative pressure. Considering nickel has spent much of the past 5
months trading somewhere in the $5/lb range, the price on the higher
side of that range, shows there is optimism for the market,
irregardless of the pandemic crisis. Three months ago, we were ending
March facing a new and deadly virus, that had taken us by surprise and
unprepared. Now, the newness is gone, our preparedness is much better,
and the surprise has worn off. We ended March with the seven day
average of new daily cases in the US not yet at 20,000. We saw that
same seven day average sneak over the 40,000 level yesterday for the
first time. Less deadly than it was, thanks to medical advances, the
panic we witnessed in March is mostly gone. Some call it covid fatigue.
We are tired of having our lives adversely affected by something we
can't see, and until it actually hospitalizes someone we care about,
it's just another bug. And the confusing signals! In March we were told
masks were useless and actually harmful. Now, we are being told we must
wear them. And yet, as tired as we are of hearing about it, the world
economies are being held hostage by the virus, and it is hard to find
something else to talk about. Quietly, and without fanfare, there is
business humming along out there. Today is the last business day of
June and we want to take the opportunity to thank Taunton Metals, for
their support during the month. It is courtesy Taunton and our other
monthly sponsors, we can bring you this news page. Stay safe and have a
great day!
Average price of LME traded cash nickel
so far this month
- $5.76/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - LME copper set for best quarter in nearly a decade - more
Barchart 304 Stainless Steel Scrap Index - $.2514/lb
SHFE Stainless Steel Futures - 13,300
Scotiabank Virus and Trade Give Commodity Markets Pause - pdf here
Australia's Diggers & Dealers Forum still on - more
USGS Chromium Statistics and Information April - pdf here
USGS Molybdenum Statistics and Information April - pdf here
Virus News and Numbers
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here Coronavirus Recovery Tracker - more
Resurgence - how is your state faring? - more
NAB's Alan Oster Podcast – Coronavirus and the economy - more
China’s military becomes world’s first to use experimental coronavirus vaccine - more
Monday's market review - Copper heads higher as
coronavirus constricts Chilean supply - Supply disruption in top
producer Chile, solid demand in top consumer China and dwindling
stockpiles kept copper prices near five-month highs on Monday. - more
Taiwan’s Yusco raises stainless steel prices for Jul - Yieh United
Steel Corp. (Yusco), a leading stainless steel mill in Taiwan,
announced its new prices for July today (June 29). - more
Journalists uncover ‘Norilsk Nickel’ plant pumping toxic wastewater
into the Russian tundra - The Talnakh Concentrator Plant, which belongs
to industrial giant Norilsk Nickel, has been dumping industrial
wastewater into the tundra in the Russian Arctic, reported the
independent newspaper Novaya Gazeta on June 27. - more
Massive Fire Engulfs Waste Landfill Near Russia's Norilsk - more
Courtesy AISI - In the week ending on June 27, 2020, domestic raw steel
production was 1,240,000 net tons while the capability utilization rate
was 55.4 percent. Production was 1,863,000 net tons in the week ending
June 27, 2019 while the capability utilization then was 80.1 percent.
The current week production represents a 33.4 percent decrease from the
same period in the previous year. Production for the week ending June
27, 2020 is up 1.3 percent from the previous week ending June 20, 2020
when production was 1,224,000 net tons and the rate of capability
utilization was 54.6 percent. - more
Nickel closed Friday's trading
session at $5.78/lb ($12,740/tonne). Indicators at 6:10 am CST today show
nickel trading unchanged.
Stockpiles of nickel stored in LME licensed warehouses fell on Friday
and started the week just under the 233,700 tonne level. Stockpile
numbers for the month are now up just slightly over 150 tonnes, so it
will be interesting to see what happens the next few days. Even though
nickel prices have done a big nothing so far this morning, the US
Dollar is trading lower and adding support. Traders may be a little
taken back by the fact Shanghai reopened their markets today, but did
not follow suit on LME's jump on Friday. As daily watchers of both
markets, we can say with confidence, that for the most part and with
rare exceptions, Chinese nickel traders tend to follow LME's lead. So
when they did not follow Friday's nickel price jump, it has to raise
some eyebrows in London. World traders must be wondering "Do they know
something that we don't yet?". We suspect it had more to do with the
dive in equity markets Friday, that overshadowed any positive
speculation in the nickel market. Two working days left to the first
half of 2020. Stay safe out there and have a great week!
Average price of LME traded cash nickel
so far this month
- $5.76/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Shanghai copper climbs over 5-month peak on Chile supply risks - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here Coronavirus Recovery Tracker - more
Resurgence - how is your state faring? - more
Europe’s pandemic politics: How the virus has changed the public’s worldview - more
Instead of shutting down beaches, pools, parks, etc to residents
suffering from the heat, why not restrict attendance to a daily range
of last names starting within a range - ie Monday's limited to families
with last names starting between A-F, etc. Stagger the weekend's so
everyone has access at least one weekend per month.
Friday's market review - Copper strides to 5-month high on
fears about Chile output - Copper prices touched a five-month peak on
Friday on growing fears that output will be disrupted in top producer
Chile by worsening COVID-19 infections at mines. - more
Russian nickel mining firm admits pollution in Arctic - Russia's
Norilsk Nickel has admitted that fluid waste was pumped into the
tundra, one month after a subsidiary polluted Arctic waterways with
diesel. - more
Zimbabwe Restarting Chrome Export to China - Business Times reported
that Zimbabwean chrome miners will resume exports to China following
revelations that the China has started opening up its chrome market
which was halted due to the Covid-19 pandemic and depressed prices. - more
How the New Wave of Manufacturing Has Changed for the 21st Century -
New Federal Reserve data confirms that the U.S. manufacturing industry
was in a mild recession during 2019. Factory production decreased 1.3%
over the past 12 months, representing the worst year for the sector
since 2015. - more
Nickel closed Thursday's trading
session at $5.65/lb ($12,445/tonne). Indicators at 6:45 am CST today show
nickel trading around $.15/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose on
Thursday and started today just shy of the 234,000 tonne level. The
Dollar is trading slightly lower this morning, but not enough to
justify the increase in nickel trading. Since we are unable to find any
other clues on what might be stimulating traders this morning, it may
be little more than a release of pent up energy and another run for the
$13,000/tonne level. This level was tested twice this month, and held
both times. It could also be nothing more than a bounce off a technical
support level. For those of us who do not necessarily believe in
'technical trading', it is wise to keep in mind that most commodity
trading is performed by computers and computers need algorithms to
function ... and technical levels offer some of those. So once again we
see a move in the market and can offer little more than a shrug for an
explanation. Maybe its because one of the only countries in the world
that has a handle on covid is returning from a holiday break on Monday,
who also just happens to be the worlds largest consumer of nickel.
Seriously, we got nothing. One thing we do know for sure - it's Friday
folks. We hope you stay safe and have a relaxing and enjoyable weekend.
Average price of LME traded cash nickel
so far this month
- $5.76/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper heads for sixth weekly gain as supply fears grow - more
Distributors Link Magazine (Fasteners) - online here
Virus News and Numbers
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here Coronavirus Recovery Tracker - more
Resurgence - how is your state faring? - more
Yesterday's market review - Copper climbs as supply fears
trump weak growth outlook - Copper prices pushed higher on Thursday,
bucking the shift to safe-haven assets in other financial markets, as a
surge in coronavirus cases fueled worries about mine shutdowns and
shortages. - more
UBS is hitching a ride on the copper, nickel bull train - China has
bounced back faster than expected from the COVID-19 lockdown while
commodity prices have proved remarkably resilient in the face of weak
demand during the second quarter of 2020. - more
Analysis:
China's steel market to remain balanced as 2020 output reaches 1 bil mt
- The supply and demand dynamics in China's steel market look set to
remain in balance over the second half of 2020 as its steel capacity
expansion has slowed, while downstream infrastructure and construction
demand is being aided by looser credit policies. - more
How artificial intelligence can improve resilience in mineral
processing during uncertain times - As COVID-19 continues to
affect millions of lives and livelihoods, it is delivering perhaps the
most significant shock to industries - from education to healthcare to
food supply - in almost a century. - more
U.S.: Plug-Ins Account For 5.1% Of New Passenger Cars In January-May
2020 - According to IHS Markit data (via BMW's report), plug-in
electric cars in the U.S. had about 5.1% share in the passenger car
market during the first five months of 2020. That's noticeably less
than the 5.5% reported for the first four months. - more
Nickel closed Wednesday's trading
session at $5.67/lb ($12,510/tonne). Indicators at 6:20 am CST today show
nickel trading around $.03/lb
lower. Stockpiles of nickel stored in LME licensed warehouse rose
slightly on Wednesday and started the day just under the 233,600 tonne
level .... again. China is closed for the remainder of the week for a
national holiday, and things apparently have slowed down in response.
First quiet news day of the week. Nickel's traded price continues to
slide, and if you look at the Euro/Dollar trading chart and the LME
cash nickel trading price over the past month, you may noticed some
similarities. With little else to trade on, it appears the value of the
Euro is offering some guidance. The Trump administration threatened
Europe, including Great Britain, with some more tariff's yesterday,
which helped drive US equities lower. This is in reference to a long
term dispute over state subsidization of Airbus, and a break down in
negotiations over that matter. The seven day moving average of new
covid-19 case is now sitting only 22 Americans short of a new all time
record high in the U.S., telling us more people will be catching the
virus on a daily basis in the next week, than at its former peak in
April. The good news, if we can call it that, is deaths per day are
running around 1/3 of what they were in the initial bubble. Four
working days, and one weekend left, to the second quarter and first
half of 2020. Stay safe and have a great day!
Average price of LME traded cash nickel
so far this month
- $5.77/lb
LME nickel chart - here / Euro/US Dollar chart - here
U.S. Imports of Stainless Steel Mill Products - more
Virus News and Numbers
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here Coronavirus Recovery Tracker - more
Resurgence - how is your state faring? - more
Wednesday's market review - Copper choked by rising
coronavirus cases - Copper eased on Wednesday as new coronavirus cases
raised fears over a global economic recovery, offsetting upbeat data
and potential supply disruptions in Chile. - more
Chinese steel market recovery continues, amid global struggles - The
coronavirus pandemic wreaked havoc on steel markets and economies
around the world, during the first six months of 2020. - more
Copper-nickel mining - Antofagasta, the massive international
copper-mining giant behind the proposed Twin Metals project, needs to
start playing straight with Minnesotans, particularly residents here in
the North Country. - more
Group sues to ban copper mining near Boundary Waters under state Environmental Rights Act - more
Is nickel sustainable in electrical vehicle batteries? - Electric
vehicles are becoming more popular and attractive as prices fall and
charging infrastructure becomes more widespread. - more
Capturing Value through the Digital Journey - More than 85% of
industrial manufacturers believe that smart factory initiatives will be
the main driver of manufacturing competitiveness in the next five
years, according to results of a joint study between MAPI and Deloitte.
- more
Nickel closed Tuesday's trading
session at $5.77/lb ($12,715/tonne). Indicators at 6:20 am CST today show
nickel trading around $.03/lb
lower. Stockpiles of nickel stored in LME licensed warehouses went
unchanged on Tuesday - for the sixth time this month. Cancelled
warranted finally moved - up slightly to just into the 24% range.
Nickel ended slightly lower overnight in China and that country is on
holiday break for the remainder of the week. LME nickel trading
continues to flounder, with little enthusiasm seen in either direction.
It remains to be seen how nickel will end the month, and while its
monthly performance is still up for grabs, it appears nickel will
increase for the second quarter of 2020 - after experiencing the
initial covid-19 shock to end the first quarter. Technical signals, for
the believers, are sending mostly negative signals. What will the last
half of 2020 hold? Couple of things to watch closely. First US-China
relations .... again. If they continue to sour, then the upcoming
election will give China little incentive to bend. Second, the covid-19
pandemic. If America is in the process of starting a second wave, or
whatever the scientists want to call it, watch the US Dollar. A
stronger Euro means higher metal prices. The US saw 36,015 new cases
yesterday, the third highest total ever, and first time over 35,000
since May 1st. The highest 7 day moving average registered so far, in
the U.S., was 32,425 on April 10th. The lowest average number was
21,265 on June 9th (2 weeks ago). That seven day average had risen to
30,667 yesterday. In 2018, 36,560 people in the US lost their lives in
car crashes. In the winter of 2017-18, the CDC estimated 80,000
Americans lost their lives to the flu. Sometime this week, the US will see
its 125,000th known death from covid-19.Those are the plain numbers. No politics. Stay safe and have a great day!
Average price of LME traded cash nickel
so far this month
- $5.77/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper rises on supply risks but in choppy trade ahead of holiday in China - more
Barchart 304 Stainless Steel Scrap Index - $.2122/lb
SHFE Stainless Steel Futures - 13,2440
Virus News and Numbers
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here Coronavirus Recovery Tracker - more
Resurgence - how is your state faring? - more
Tuesday's market review - Copper gains as Trump, positive
data bolster demand outlook - Copper prices rose on Tuesday after
U.S. President Donald Trump said a trade deal with China was “fully
intact” and stronger-than-expected European and U.S. data bolstered
hopes of a rapid economic recovery. - more
LME to examine floor reopening after easing of UK lockdown - The London
Metal Exchange (LME) will examine whether the easing of
social-distancing restrictions in England from July 4 will apply to its
open-outcry floor, which has been closed for three months. - more
Indonesia expects delay to 2021 for $3.7 bln smelter investments -
Indonesia expects $3.7 billion in investments for smelter projects to
be delayed to 2021 if the coronavirus outbreak persists until the end
of 2020, a mining official said. - more
India slaps anti-dumping duty on steel from China, Vietnam, Korea - The
duty is applicable on products originating from or exported from China,
Vietnam and Korea and imported into India - more
Poisonous
fuel from major Norilsk diesel leak may ALREADY be in the Arctic Ocean
- Russian ecologist says his undercover trip shows Arctic ecosystem is
irreversibly damaged, as whistleblower in ecological watchdog quits and
leaves town. - more
Rising nickel prices support stainless steel prices, Taiwan’s market to
rebound in H2 2020 - LME nickel prices continued to rebound in June,
and the highest point so far was at above US$13,000/ton. - more
Launch of the new EUROFER website - The European Steel Association
(EUROFER) has launched its new and refreshed website, making finding
out about the European steel industry and the work of its
Brussels-based trade association clearer and more accessible. - more
Deep sea mining could destroy undiscovered species, says Ocean Panel -
Mining on the sea floor should not begin before a full assessment of
likely environmental impacts can be made, a report commissioned by the
High Level Panel for a Sustainable Ocean Economy (Ocean Panel) said on
Wednesday. - more
Nickel closed yesterday's trading
session at $5.74/lb ($12,645/tonne). Indicators at 6:10 am CST today show
nickel trading around $.03/lb
lower. Stockpiles of nickel stored in LME licensed warehouses rose on
Monday and now read just under the 233,600 tonne level. For the month
of June, LME nickel stockpiles have now turned to positive growth. On
the other hand, the priced of traded nickel on the LME continues to
bleed and is testing technical support today. It's impossible on most
days to explain why nickel prices are trading higher, and likewise,
trading lower. While the equity markets continue to be juiced by fresh
injections of money from the Fed, base metals could be a better
reflection of traders deep concern of a resurgence in covid-19
infections. The U.S. saw its third in the last four days, of 30,000+
new infections. We added a link below in the virus news section where
you can check how your state is doing. Other concerns for nickel
include the strained relationship between the Chinese and Trump
administration. Pessimistic comments made by a US trade adviser
yesterday sent a ripple thru markets, and with the 'less than
respectful comments made about the Chinese recently, make it hard to
understand how China would feel compelled to live up to any agreement
it might have made in the past. Another day of sunshine and cow manure.
Stay safe... and have a great day!
Average price of LME traded cash nickel
so far this month
- $5.78/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper recovers after Trump says U.S.-China trade deal still intact - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here Coronavirus Business Recovery Tracker - more
Resurgence - how is your state faring? - more
In countries keeping the coronavirus at bay, experts watch U.S. case numbers with alarm - more
Administration to Disclose Businesses that Received Loans - more
Yesterday's market review - Copper rises on inventory draw
and Chinese demand - Copper prices climbed on Monday, reinforced by
lower inventories and robust consumption in top consumer China, though
any further rally is likely to require signs of demand recovery in the
rest of the world, analysts said. - more
May 2020 crude steel production - World crude steel production for the 64
countries reporting to the World Steel Association (worldsteel) was
148.8 million tonnes (Mt) in May 2020, an 8.7% decrease compared to May
2019. - more
European stainless steel prices to remain stable - The stainless steel
demand in Europe has been quiet in the past week. The supply chain
profits have been very tight. - more
Nickel stocks are bullish - The market undoubtedly is showing some
impressive backbone to rally in the face of bad news on both the macro
and stock level, yesterday it was Challenger Group Financial (CGF)
tapping the market for $300m in fresh equity ..... - more
Metals and mining: who gets hit hardest by an economic slump? - Demand
destruction and falling revenues leave some industry players at risk of
financial distress - more
Inalum to acquire 20% of PT Vale - State-owned PT Indonesia Asahan
Aluminium (Persero), also known as Inalum, is set to take a 20% stake
in PT Vale. - more
Pace of industry recovery boosts steel buyers’ sentiment - Steel
producers and distributors were frantic back in March when the
government ordered the shutdown of nonessential businesses to stem the
spread of the coronavirus, slowing orders to a trickle. - more
AISI Applauds Supreme Court Decision to End Importer Challenge to Section 232 - more
Courtesy AISI - In the week ending on June 20, 2020, domestic raw steel
production was 1,224,000 net tons while the capability utilization rate
was 54.6 percent. Production was 1,863,000 net tons in the week ending
June 20, 2019 while the capability utilization then was 80.1 percent.
The current week production represents a 34.3 percent decrease from the
same period in the previous year. Production for the week ending June
20, 2020 is up 1.2 percent from the previous week ending June 13, 2020
when production was 1,210,000 net tons and the rate of capability
utilization was 54.0 percent. - more
Nickel closed Friday's trading
session at $5.79/lb ($12,770/tonne). Indicators at 6:15 am CST today show
nickel trading around $.04/lb
lower. Stockpiles of nickel stored in LME licensed warehouses went
unchanged on Friday and start the week just over the 233,200 tonne
level. As far as LME nickel inventories go, the month of June is the
month that wasn't, as the figures this month have gone no where fast.
Cancelled warrants have remained in the 23% range since April and
except for a few days in May where they fell to 22.99%, they have
stayed in that range consistently during the entire period. We begin
the last week of the first half of 2020 today. It's been a memorable
first half, albeit one most would like to forget. The world is a much
different place today than it was a few months ago. And now there is
strong evidence that the next few may get dicey in the United States.
Watching the seven day average of new cases in the U.S. has turned
north again, with 30,000+ new cases a day once a thing of the past, but
no more. More volatility around the corner. It will be a short week for
China as their Dragon Boat Festival holiday starts Thursday and ends on
Saturday. It's a new week, and we hope it is a good one for you. Stay
safe, and have a great Monday!
Average price of LME traded cash nickel
so far this month
- $5.78/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper mixed on supply worries, demand fears led by virus - more
Friday's market review - Copper heads for fifth weekly
gain on economic recovery hopes - Copper prices were heading for a
fifth consecutive weekly gain on Friday as inventories declined and
stock markets rose while demand improved in top consumer China. -
more
China's sliding metals inventories point to higher prices, V-shaped
recovery: Russell - One of the encouraging aspects for those hoping for
a V-shaped economic recovery from the novel coronavirus in China has
been the increase in the price and demand for many key metals. - more
Glencore faces new corruption probe in Switzerland - Sources
close to Glencore said June 19 they expect "business as usual" at the
Swiss-based international trader and miner even following the opening
of a fourth investigation in less than two years into how the company
runs its business. - more
Optimism slowly returning to the EU steel market? - The mood in the EU
steel market, in June, is one of cautious optimism. - more
Prospects looking bright for Shire of Ravensthorpe post-COVID -
Ravensthorpe is well poised to emerge from the worst of the coronavirus
pandemic on a good footing, says Shire president Keith Dunlop. - more
Putin calls fuel spill unprecedented for Russia, Greenpeace sees $1.4
bln damage - President Vladimir Putin said on Friday the scale of the
clear-up operation after a huge fuel spill in the Arctic was
unprecedented for Russia, with Greenpeace estimating the environmental
damage to waters in the region at $1.4 billion. - more
China opens up chrome market for Zimbabwe - Zimbabwean chrome miners
will resume exports to China following revelations that the Asian
economic giant has started opening up its chrome market which was
halted due to the Covid-19 pandemic and depressed prices. - more
Case AS660 - Stainless steel hot-rolled flat products (SSHR) -
Initial Investigation, Article 10 Countries investigated: Indonesia,
People's Republic of China - more
IRCG: Weekly Pandemic Revenue Index Shows 8.5% Decline - “The swings in
business this week were very large — much larger than what we’ve
typically seen previously," said Mike Emerson, IRCG partner. - more
June 2020 "Business Conditions Report" shows optimism for improved conditions - more
Persistently High Layoffs Suggest Slow Rebound - more
Nickel closed Thursday's trading
session at $5.84/lb ($12,880/tonne). Indicators at 7:00 am CST today show
nickel trading around $.05/lb
higher Stockpiles of nickel stored in LME licensed warehouses fell
slightly on Thursday and started today's session just over the 233,200
tonne level. After ending last week lower, nickel prices appears to
have recovered this week, but have done little more than that. The
$13,000 tonne level was again tested, but successfully kept any bull
penned. The U.S. continues to reopen and return to business, albeit
normalcy is now being redefined on a daily basis. A month after
reopening's began, covid-19 hospitalizations are on the rise again, and
thanks to the politification of the pandemic, it too has become part of
the new normalcy for many. Kind of like speeding in traffic. To many,
it's not really a major concern - until its you in the crash. It's the
weekend. Wear your seatbelt - wear your mask. Stay safe, enjoy your weekend, and we invite you back next
week.
Average price of LME traded cash nickel
so far this month
- $5.78/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper heads for fifth weekly gain on economic recovery hopes - more
The Australian Mining Review - June 2020 - online here
Virus News and Numbers
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here Coronavirus Recovery Tracker - more
Well before face masks became a pawn in the great chess game of
American politics, on this site, we were complaining the 'guidelines'
were being manipulated to protect the limited availability of N95 masks
for the health workers. While we understood the motive for telling
average 'Joe Six Pack' that masks did little to protect the user, the
science, and years of experience, tell us otherwise. One of the ways to
keep people from buying up the limited supply of masks, was to tell
them masks really did little to protect the user, and really only gave
a false sense of security. Now, the chickens have come to roost.
If the CDC and WHO can't understand why few Americans are taking their
advice to wear a mask, and states wonder why 'mandatory' mask
requirements raise the publics ire - we suggest they look in the
mirror first. For those actually interested in the science, here is a
study done after the SARS outbreak - pdf here
Thursday's market review - Copper strengthens on China
stimulus plans - Copper rose on Thursday as top consumer China signaled
plans to maintain liquidity in the financial system for the rest of the
year, raising hopes of improved demand for metals. - more
Nickel, chromium: Chinese conference season returns post-COVID-19 as
Roskill attends Nickel & Chrome Products Summit - The 18th
International Nickel & Chrome Products Summit, held by CNFEOL in
Wuxi, Jiangsu in early-June, marked Roskill’s return to the
post-COVID-19 conference scene. - more
Vale to Restart Nickel Mine in Canada After Covid-19 Pause - Vale SA,
the top commercial nickel producer, will resume operations next month
at its Voisey’s Bay mine in Canada after halting work to monitor the
coronavirus outbreak. - more
BHP Group buys nickel tenements as Norilsk Nickel completes Australian
exit - BHP Group said on Friday it was expanding its exposure to nickel
by purchasing nickel tenements in Western Australia in a deal marking
the exit from the country of Russian mining group Norilsk Nickel. - more
Russian stainless steel product imports increase in May y-o-y -
According to reports, Russia imported around 33,000 tons of stainless
steel products in May, increasing by 9.4% from the same period a year
ago while sliding by 10.9% from 37,000 in the previous month. - more
Zhenshi Group’s ferronickel project in Indonesia’s Weda Bay to see 1st
batch of output in end-June or early July - Yashi nickel smelting
project at Indonesia Weda Bay Industrial Park is expected to see its
first batch of ferronickel output at the end of June or the beginning
of July, after two production lines were ignited in early June. - more
RockTalk - RockTalk is a Stockhead video series featuring a roundtable
of resources experts discussing a new macro topic each week. In this
edition, host Peter Strachan takes a closer look at the nickel market.
- more
Will touch full capacity utilisation level by September - Abhyuday
JindalHe said that the stainless steel sector has a direct correlation
with the GDP growth of the country - pdf here
ID Catches Up With Fastener, MROP Distributor Bolts & Nuts - ID
re-connects with Chattanooga, TN-based Bolts & Nuts Corp. to learn
what they've been up to since visiting the distributor in December
2015. - more
Nickel closed Wednesday's trading
session at $5.87/lb ($12,948/tonne). Indicators at 6:10 am CST today show
nickel trading around $.02/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell
slightly on Wednesday and started today just under the 233,300 tonne
level for a second day. The $13,000 tonne level again held Tuesday, and
prices are slowly backing off, trying to build up momentum for another
charge. We have decided to add the Barchart scrap index and SHFE
Stainless Steel Futures to our daily update under the Reports section.
The Futures have closed as high as 13025 and as low 12635 so far this
month. It's provided as offering a possible clue to what is going on in
the Chinese stainless steel market, and potentially, future export
prices. We have a lot of visitors looking for current scrap prices, so
we added it as a service to them. Stay safe - and have a great day!
Average price of LME traded cash nickel
so far this month
- $5.78/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Stocks drift as second wave virus fears mount - more(no metals update found)
Wednesday's market review - Copper claws higher after
positive trial of coronavirus drug - Copper prices rose on Wednesday as
risk appetite gained the upper hand in financial markets after
promising trials of a COVID-19 treatment and strong U.S. economic data.
- more
January to April 2020 Metals Balances - The nickel market was in
surplus during January to April 2020 with production exceeding apparent
demand by 14.4 kt. In the whole of 2019, the calculated deficit was
17.9 kt. - more
BIR Global eForum: Stainless Steel & Special Alloys: Dramatically
altered landscape for stainless steel and nickel - The COVID-19
pandemic had presented the stainless steel scrap industry with “a lot
of difficulties and challenges”, reported BIR Stainless Steel &
Special Alloys Committee Chairman Joost van Kleef of Oryx Stainless BV
in his opening remarks to the body’s eForum on June 10. - more
ID's 2020 Survey of Distributor Operations Report, Part 2 - See what
our readers had to say about their financials, supplier relations,
employment and more. - more
Experts see environmental, social fallout in Indonesia’s infrastructure
boom - The Indonesian government has announced a list of 89 priority
projects, tagged at US$100 billion, to jump-start the economy out of
the current Covid-19-induced slump. - more
Aboriginal group files claims against Australian state over mining
area: report - An Aboriginal group has filed two compensation claims
against the Western Australian state government for cultural losses on
land that it granted to businesses including BHP Group, state
broadcaster the ABC reported on Thursday. - more
Nickel closed Tuesday's trading
session at $5.90/lb ($13,005/tonne). Indicators at 6:10 am CST today show
nickel trading around $.02/lb
lower. Stockpiles of nickel stored in LME licensed warehouses rose on
Tuesday and started today just under the 233,300 tonne level. We are
now only down just under 200 tonnes for the month in LME stockpiles,
with gains or unchanged registered the last seven sessions. Nickel
traders continue their battle over the $13,000 tonne level, with the
bears so far, successfully defending that level. The bulls seem
determined to punch thru the fence, and any news of supply disruption
or increase in demand could prove the weak spot they need to charge. At
the moment, with covid-19 still handcuffing downstream industries, the
$13,000/tonne pen seems to be holding. Another good news and report
day, so we leave you to it. Stay safe and enjoy another hump day!
Average price of LME traded cash nickel
so far this month
- $5.77/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper rises on COVID-19 treatment hopes, strong U.S. retail sales - more
Tuesday's market review - Copper advances as latest Fed
stimulus sparks buying spree - Copper prices climbed on Tuesday
as the Federal Reserve’s latest move to provide further support for the
U.S. economy helped to boost sentiment, but gains were capped by
worries about prospects for demand in top consumer China. - more
China crude steel output soars 8.5% in May record on robust
construction demand - China’s crude steel output jumped 8.5% from a
month earlier in May, hitting the highest ever in records published for
single-month production, lifted by a construction boom amid a Beijing
infrastructure development push and a recovery in manufacturing. - more
3 Japanese major companies to merge 2 stainless steel plants from Oct -
Nippon Steel Stainless Steel Corp., Nippon Steel Trading Corp., and
Sumitomo Corp. signed an agreement on the merger of Japanese domestic
stainless steel plants. - more
New Caledonia nickel ore export bids hit impasse - The government of
New Caledonia is poised to refer the impasse over a new mining code to
the next meeting of the signatories to the Noumea Accord. - more
Governor allows 500 Chinese workers to enter Southeast Sulawesi after
previous refusal - Southeast Sulawesi Governor Ali Mazi has allowed
some 500 Chinese workers to work on nickel smelter projects in the
province's Konawe regency after previously blocking their entry. - more
Russia opens criminal case against Nornickel staff over 2017-2019
pollution - Russia's Investigative Committee on Tuesday opened a
criminal case against employees of Norilsk Nickel over the discharge of
waste water into a river and soil between 2017 and 2019. - more
Minnesota Supreme Court to hear appeal on PolyMet air permit - The
Minnesota Supreme Court today granted review of a Minnesota Court of
Appeals’ ruling regarding the NorthMet Project air permit, according to
Poly Met Mining, Inc., a wholly owned subsidiary of PolyMet Mining
Corp. - more
Nickel closed Monday's trading
session at $5.82/lb ($12,840/tonne). Indicators at 6:00 am CST today show
nickel trading around $.05/lb
higher. Stockpiles of nickel stored in LME licensed warhouses rose on
Monday and started today's session just over the 233,100 tonne level.
Nickel bounced yesterday and is continuing its return to a bullish mood
today, once again nearing the $13,000/tonne level. Lot of reports for
today, but otherwise, rather quiet on the news front. Stay safe and
have a great day!
Average price of LME traded cash nickel
so far this month
- $5.76/lb
LME nickel chart - here / Euro/US Dollar chart - here
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here Coronavirus Recovery Tracker - more
Federal Reserve - Distribution of COVID-19 Incidence by Geography, Race, and Income - more
Beijing battles ‘explosive coronavirus outbreak’ as food market cases mount - more
Science, politics and trolls: How Carl Bergstrom became a voice of clarity on the coronavirus - more
Monday's market review - Copper slides as coronavirus
worries resurface - Copper prices slid on Monday with sentiment hit by
concern about a second wave of the coronavirus and uncertainty about
whether demand would recover swiftly or stay subdued for longer. - more
Global nickel output to decline 19% y-o-y in 2020 — report - In its
latest report, Fitch Solutions revised down most of its 2020 mining
production as well as metals production and consumption forecasts and
said it will keep adjusting estimates in line with the evolution of the
situation and of government and company announcements. - more
Mining industry cushioning impact of pandemic in Sudbury: report - The
mining sector in Sudbury – among the industries declared essential at
the start of the COVID-19 pandemic – has managed to retain most of its
workforce, says a report headed to city council June 23. - more
ID's 2020 Survey of Distributor Operations Report, Part 1 - See what
our readers told us regarding distribution challenges, the economy,
their technology usage and more. - more
Nickel closed Friday's trading
session at $5.74/lb ($12,660/tonne). Indicators at 6:15 am CST today show
nickel trading around $.03/lb
lower. Stockpiles of nickel stored in LME licensed warehouses went
unchanged on Friday and ended the week just under the 232,900 tonne
level. Markets are down this morning on news that China is reporting a
cluster of new cases of covid-19 in Beijing. 79 new cases have been
reported since June 11th, and China is reacting strongly, with new
lockdowns and mass testing in the area. On the other hand, the U.S. saw
20,000 new cases yesterday, with states dropping more restrictions, if
not all, on a near daily basis. Using worldometer's numbers, the world
saw its 8,000,000th confirmed case over the weekend. Nickel is likely
trading lower not so much on the new case numbers in China, but
concerns on China's reaction, and its impact on potential business.
China has shown it is willing to sacrifice the economy to stop the
spread, so if this 'cluster' spreads outside of the containment area,
the country is willing to take extreme measures. As we have said
before, when it comes to nickel, what happens in China, matters - a
lot. Nickel is trading near June lows today. We are half way done with
June and just a few weeks away from the half way point to 2020. Its
been, to say the least, a memorable few months, but every day we are
one step closer to a vaccine. Stay safe and have a wonderful week!
Average price of LME traded cash nickel
so far this month
- $5.77/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Base metals ease on worries over second virus wave in China - more
Friday's market review - Copper heads for 4th weekly gain
as stockpiles fall - Copper prices rose on Friday and were set
for a fourth consecutive weekly gain as falling stockpiles pointed to a
pickup in demand and traders anticipated healthy buying from top
consumer China. - more
Knives out for nickel market as restaurants close: Andy Home - The
knives may be out for the nickel market. Stainless steel knives
specifically, together with stainless steel forks and spoons. - more
China crude steel output soars 8.5% in May record on robust
construction demand - China’s crude steel output jumped 8.5% from a
month earlier in May, hitting the highest ever in records published for
single-month production, lifted by a construction boom amid a Beijing
infrastructure development push and a recovery in manufacturing. - more
Vale renews bid for nickel ore exports from New Caledonia - The Vale
nickel company is lobbying for the export of low grade nickel ore from
New Caledonia as it finalises the sale of its assets to New Century
Resources of Australia. - more
Metal Shipments Continue to Decline in May - Metal shipments in both
the U.S. and Canada declined at substantial rates again in May due to
the effects of the COVID-19 pandemic. - more
Brighter times ahead for nickel, experts say - A recovery in the nickel
market in the wake of the coronavirus pandemic is being forecast by
analysts, but they caution it could take until 2022 for a return to
2019 price levels. - more
Battle of the batteries - Cost versus Performance - The last three
months have been unprecedented. But amidst the chaos and despite the
drop in global GDP, there has still been a considerable amount of
activity in the electric vehicle (EV) and battery world. - more
April’s Freight Transportation Services Index largest drop since Great
Recession - The Freight Transportation Services Index, which measures
freight movement in tons and ton-miles, experienced the largest decline
since the 2009 Great Recession. - more
Nickel closed Thursday's trading
session at $5.74/lb ($12,645/tonne). Indicators at 6:50 am CST today show
nickel trading around $.06/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose on
Thursday and started today just under the 232,900 tonne level. Nickel
got whacked yesterday, as part of a general thumping traders took
across the board. The warnings of a potential second covid-19 wave sent
a chill thru markets worldwide. Coronavirus is the new reality, and the
elephant in the room that is hard to ignore. Until a vaccine starts
caging this monster, the world is trying to find a way to live with it.
While some may feel pretending its harmless is the best strategy,
hospital cases are starting to spike again in some areas of the U.S. It
is much easier to ignore when it stays quiet. Another week is in the
history books. We hope you have a safe and enjoyable weekend and invite
you to join us next week as we follow the nickel and stainless
industries.
Average price of LME traded cash nickel
so far this month
- $5.77/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - London copper flat; set for fourth weekly gain on hopes of stimulus boost - more
Thursday's market review - Base metals fall on gloomy U.S. economic
outlook, new COVID-19 cases - Copper and other metals fell on Thursday
after a gloomy outlook for the U.S economy and fresh concerns over a
second wave of COVID-19 infections cast doubt over demand. - more
Tharisa PLC now operating chrome and PGM mines at full capacity, and
enjoying renewed commodity price strength - No one could doubt that the
world now is a very different place to the world as it seemed at the
beginning of this year. - pdf here
New bid for Vale assets in New Caledonia - Reports from New Caledonia
say a rival bid involving South Korean interests has been mounted to
buy the Vale nickel plant which is being sold to an Australian company.
- more
Criminal case opened against Norilsk mayor following massive Siberian
oil spill that threatens Arctic Ocean - Nearly two weeks after an
ecological disaster that has shocked environmental activists both in
Russia and abroad, the top local official in Norilsk is to be
prosecuted for ‘negligence.’ - more
Metal miner Antam to set $105m capex, pay out $4.78m in dividends -
Publicly listed state-owned metal miner PT Aneka Tambang (Antam) plans
to set around Rp 1.5 trillion (US$105 million) in capital expenditure
(capex) this year, mostly to build two smelter megaprojects. - more
Producer Price Index by Commodity for Pulp, Paper, and Allied Products:
Corrugated Paperboard in Sheets and Rolls, Lined and Unlined - more(some
of us old timers operate on the theory most manufacturers need two
things - fasteners and corrugated boxes - so watching their pricing
gives an idea of the health of manufacturing)
Nickel closed Wednesday's trading
session at $5.90/lb ($13,010/tonne). Indicators at 6:15 am CST today show
nickel trading around $.14/lb
lower. Stockpiles of nickel stored in LME licensed warehouses for the
third time this week, went unchanged and once again, start the day just
over the 232,400 tonne level. For the month of June so far, stockpile
numbers are down a smidgen over 1000 tonnes. A follower of technical
trading is content this morning that his theory worked, with nickel
falling sharply after being unable to hold above resistance for two
consecutive sessions. In this particular case, the $13,000 tonne
psychological resistance proved to be the level to beat, and it
appears, at least in the short term, that level has held. The rest of
us, who once believed fundamentals actually meant something, really
don't have a clue why nickel traders do what they do, so we blame
technical traders for mucking up the works. Stay safe and have a
wonderful Thursday!
Average price of LME traded cash nickel
so far this month
- $5.78/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - London copper slips from January high but seen rebounding on stimulus - more
Wednesday's market review - Copper glides to highest since
January on technicals, demand uplift - Copper prices rose for a fifth
straight session on Wednesday to their highest since January, supported
by firm demand and an improved technical picture. - more
Stainless steel prices forecast to commence gradual recovery - The
coronavirus outbreak has severely affected the global stainless steel
sector. Although end-user manufacturing facilities are gradually
resuming operations, activity levels continue to be considerably below
those witnessed pre-Covid-19. - more
About 20 liters of sulphuric acid leaks during incident in Sudbury -
About 20 liters of sulphuric acid leaked at three spots along the route
a tanker truck traveled as it departed the Glencore smelter in
Falconbridge late last Friday afternoon before the leak was discovered
in Lively, the Ministry of Environment, Conservation and Parks
investigation has determined. - more
Russia detains three as wind complicates the clean-up of an Arctic fuel
spill - Russian investigators on Wednesday detained three
managers of an Arctic power station in connection with a huge fuel
spill last month, as wind, rain and cold complicated the clean-up. - more
Metals tycoon Gupta's GFG to cut jobs as forecasts further weak demand
- British-based commodities tycoon Sanjeev Gupta’s global metals
businesses said on Thursday it will cut costs and shed jobs due to a
sharp slide in demand that could last up to 18 months. - more
Nickel closed Tuesday's trading
session at $5.81/lb ($12,815/tonne). Indicators at 6:00 am CST today show
nickel trading around $.04/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose on
Tuesday and began the day just over the 232,400 tonne level. With
yesterday's gain identical to it's Friday loss, numbers are unchanged
from last Thursday. Nickel spent one night over the $13,000/tonne level
and yesterday fell back below. This morning, nickel is pushing up
against the old resistance level again, which has already been beat
twice in the last three days. Light news day. Stay safe out there and
have a great hump day!
Average price of LME traded cash nickel
so far this month
- $5.77/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Chinese demand drives Shanghai copper to 20-week high - more
Tuesday's market review - Aluminium and zinc hit by
inventory gains and demand uncertainty - Aluminum and zinc prices
retreated on Tuesday after inventories climbed, reminding investors
that weak demand because of the coronavirus pandemic is likely to
result in large surpluses. - more
Chinese nickel market under pressure due to Indonesian ferronickel
growth - The pandemic of this year truly caused huge pressure on the
global economy. - more
Chinese media Mysteel reports stainless steel crude steel output for May was (in
10,000 tons) - 200 series SS - 81.69 - 300 series - 117.75 - 400 series
- 35.43
Losses mount for New Caledonia's SLN - New Caledonia's loss-making SLN
nickel company says $US75 million is left of the loan it had taken out
after another year of losses. - more
Fuel from Russian Arctic spill reaches large lake, says governor -
Diesel fuel from a major spill in Russia’s Arctic has reached a
pristine lake which is the basin for a river flowing into the Arctic
Ocean, a regional official said on Tuesday, but the mining giant
embroiled in the scandal rejected his allegation. - more
Nickel closed Monday's trading
session at $5.91/lb ($13,025/tonne). Indicators at 6:10 am CST today show
nickel trading around $.05/lb
lower. Stockpiles of nickel stored in LME licensed warehouse went
unchanged on Monday and started the day just over the 232,100 tonne
level. Nickel closed above the $13,000/tonne level yesterday for the
first time since mid February. It is trading lower today as part of a
general pull back in world markets, commodities included. It is rather
to see the Dow turn profitable for the year again. While there were
fears back in January that there might be a recession in 2020, there is
no question about it now, with the pandemic turning the possible into a
much worse inevitability than was previously feared. And yet, the Dow
moves higher, now above where we started the year. For anyone who needs
further proof of the disconnect between the stock market and the
reality of the economy, look no further. Stay safe and have a great day!
Average price of LME traded cash nickel
so far this month
- $5.76/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Shanghai aluminum hits 4-1/2-month peak on China demand - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here Coronavirus Recovery Tracker - more
Remember when (May 3rd) the President predicted 75 to 100,000 deaths by June? (here)
We crossed the 100,000 level on May 27th and now it appears the gloomy
125,000 forecast by the end of August made by the University of
Washington’s Institute for Health Metrics and Evaluation at the same
time will be hit earlier than forecast. We rolled over 112,000 this
past weekend.
Remember way back (last month) when death tolls and forecasts were apparently important?
Monday's market review - Copper hits three-month peak on
economic stimulus - Copper prices climbed to three-month highs on
Monday as economic stimulus from central banks, expected stronger
demand in top consumer China and falling inventories in Shanghai
triggered fresh buying. - more
Vladimir Potanin to President Putin: The Fuel Spill in Norilsk is
Localized and the Company Will Cover the Clean Up Expenses - In a frank
conversation over a televised videoconference, Vladimir Potanin,
Russia's leading metal and mining industrialist, updated Russia's
president Putin on the vast scale of the clean-up effort he is putting
forward to minimize the consequences of the diesel fuel spill. - more
Europe jump-starts faltering electric vehicle revolution: Andy Home -
The electric vehicle revolution has been stalled by COVID-19. - more
The Just-in-Time Tribe - The COVID-19 mess has exposed some serious
flaws in the system, as evidenced by the horrors of the toilet paper
production shortage (thankfully, some companies are still printing
catalogs). - more
U.S. exports of Nickel decreased 20.02 percent from $100.32 million to
$80.23 million through the first four months of 2020 when compared to
the same period the previous year, according to WorldCity analysis of
the latest U.S. Census Bureau data. - more
U.S. exports of Stainless steel, not less than 600mm wide
decreased 20.00 percent from $265.22 million to $212.18 million through
the first four months of 2020 when compared to the same period the
previous year, according to WorldCity analysis of the latest U.S.
Census Bureau data. - more
U.S. imports of Stainless steel, not less than 600mm wide
decreased 12.92 percent from $220.69 million to $192.18 million through
the first four months of 2020 when compared to the same period the
previous year, according to WorldCity analysis of the latest U.S.
Census Bureau data. - more
U.S. imports of Stainless steel wire decreased 29.01 percent from
$77.15 million to $54.77 million through the first four months of 2020
when compared to the same period the previous year, according to
WorldCity analysis of the latest U.S. Census Bureau data. - more
U.S. exports of Stainless steel wire increased 0.68 percent from
$44.89 million to $45.2 million through the first four months of 2020
when compared to the same period the previous year, according to
WorldCity analysis of the latest U.S. Census Bureau data. - more
Courtesy AISI - In the week ending on June 6, 2020, domestic raw steel
production was 1,195,000 net tons while the capability utilization rate
was 53.3 percent. Production was 1,866,000 net tons in the week ending
June 6, 2019 while the capability utilization then was 80.2 percent.
The current week production represents a 36.0 percent decrease from the
same period in the previous year. Production for the week ending June
6, 2020 is down 0.9 percent from the previous week ending May 30, 2020
when production was 1,206,000 net tons and the rate of capability
utilization was 53.8 percent. - more
Nickel closed Friday's trading
session at $5.89/lb ($12,995/tonne). Indicators at 6:10 am CST today show
nickel trading around $.02/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Friday and start the week just over the 232,100 tonne level. Nickel
closed above technical resistance on Friday, but just shy of a
psychological level of resistance at $13,000/tonne. Next technical
level should be around $6.00-$6.02/lb, which is the highest nickel has
traded since it's sharp drop in late January. The overall trend for
nickel has been a tempered bull market since late March, but nickel
started 2020 trading well over the $14,000 tonne mark, so there is
still ground to make up before the year turns positive. Over the
weekend, the world saw its 7,000,000th diagnosed case of covid-19,
while the U.S. saw its death toll creep over 110,000. Sometime this
week, the U.S. will see its 2,000,000th diagnosed case, still averaging
around 20,000 new cases a day. Germany reported industrial production
in that country dropped by 25% in April 2020 when compared to the same
month last year. Production of automobiles there was down nearly 75%.
It's the second week of the sixth month of the beginning year of the
third decade of the 21st century. Now, don't you feel historic? Here is
to a safe and successful week for you!
Average price of LME traded cash nickel
so far this month
- $5.74/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - London copper slips from 3-month high; markets expect quick rebound - more
Friday's market review - Copper on track for its biggest
weekly gain since September 2018 - Copper prices surged on Friday to
the highest in 13 weeks as an unexpected increase in U.S. employment in
May fuelled hopes of a revival of global economic activity. - more
Nickel Rush Restarts As Steel And Battery Demand Rises - China’s rapid
exit from its Covid-19 lockdown has triggered the restart of a rush for
nickel, an old-fashioned metal mainly used in making stainless steel,
but also a key ingredient in the batteries of electric vehicles. - more
Supply chain reports look at the state of manufacturing during COVID-19
crisis - To get an idea of how manufacturing managed during the peak of
the COVID-19 crisis in April and May, just take look down the
industry’s supply chains. - more
You Prepared for Disruption, Now Prepare for Change - more
US offers help with Nornickel’s Arctic fuel spill, Russia thankful -
Russia’s Vice-minister for Emergencies, Alexandr Chupriyan, expressed
gratitude to the countries that have offered to help with the fuel
spill in Siberia in which 20,000 tons of diesel leaked from a reservoir
owned by MMC Norilsk Nickel PJSC. - more
Nickel closed Thursday's trading
session at $5.79/lb ($12,765/tonne). Indicators at 7:00 am CST today show
nickel trading around $.06/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Thursday and started today just over the 232,400 tonne level. Nickel is
knocking on resistance's door again this morning, but with little
momentum - so far. Good news week, as first weeks of the month
typically are. On a somber note, the US is expected to see its
2,000,000th diagnosed case of covid-19 this weekend. It's the weekend
gang, and we hope you have a safe, healthy and relaxing one.
Average price of LME traded cash nickel
so far this month
- $5.73/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper heads for its biggest weekly gain in more than a year - more
Thursday's market review - Copper inches higher as Europe
redoubles stimulus - Copper prices rose on Thursday towards 2-1/2 month
highs reached in the previous session as the European Central Bank and
German government announced big stimulus packages and U.S. data showed
unemployment growth slowing sharply. - more
US' stainless steel keeps stable amid pandemic - At this moment, the US
buyers of stainless steel were still scarce. Companies were reluctant
to place new forward orders because of the uncertain economic
environment caused by the COVID-19. - more
COLUMN-LME storage capacity rises as metals glut looms in the shadows:
Andy Home - Where’s the metal? Global manufacturing activity is
experiencing the most severe contraction since the Financial Crisis of
2008-2009 but signs of surplus metal are conspicuous by their absence.
- more
worldsteel Short Range Outlook June 2020 - The World Steel Association
(worldsteel) today released its Short Range Outlook (SRO) for 2020 and
2021. In 2020 worldsteel forecasts that steel demand will contract by
6.4%, dropping to 1,654 Mt due to the COVID-19 crisis. - more
Government extends anti-dumping duty on certain steel items - The
government has extended anti-dumping duty on certain variety of steel
products ... - more
Norilsk Nickel under pressure over Russia diesel spill - Around 21,000
tonnes of diesel leaked into the Ambarnaya river after the fuel spill
at a power plant operated by a subsidiary of the Russian miner - more
Unease grows in New Caledonia over Vale nickel plant sale - Access to
New Caledonia's Vale nickel plant has been restricted by
sub-contractors worried about the plant's sale. - more
Fastenal Trims 400 Sales Staff in May as Safety Line Surges 136% -
Fastenal reported its May sales figures on Thursday, showing that
safety products continued to show massive growth amid the COVID-19
pandemic — more than offsetting considerable declines in the company's
other product segments. - more
Nickel closed Wednesday's trading
session at $5.81/lb ($12,800/tonne). Indicators at 6:05 am CST today show
nickel trading around $.07/lb
lower. Stockpiles of nickel stored in LME licensed warehouses went
unchanged on Wednesday and for the third consecutive day, start just
over the 232,800 tonne level. If you are a believer in technical
trading, then yesterday worked out for you. For the second consecutive
day, nickel was unable to punch thru resistance, and today is backing
off. For those of us who don't necessarily believe in the technical
trading theory, we might suggest that having been unable to build the
momentum to beat a recent high, nickel traders have backed off a tad to
try to build up the momentum for another try. Kind of like punching
thru a bank of snow. Its easier to do by charging at it, and punching
thru, rather than trying to push it from a near stop. We suspect that
since computers do most of the trading anyhow, the technical theory has
more truth behind it, but our theory sounds better. We reported about
the huge spill in the Arctic yesterday and if it weren't for the
protests and the pandemic, it would likely be leading some news shows.
Regardless, the word is getting out and much more than environmental
sites are now reporting on it. Putin has issued a state of emergency
today. Another newsy day, so we leave you with it. Oh and one other
thing. If you .. or your loved one .... start to feel any discomfort
down in the family jewels region .... that is now a potential symptom
of coronavirus, according to a Chinese report. Oh the jokes that come
to mind. Stay safe, stay healthy, and have a great day.
Average price of LME traded cash nickel
so far this month
- $5.73/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper falls on renewed U.S.-China tensions, stronger dollar - more
Wednesday's market review - Copper touches March high on
recovery in top consumer China - Copper hit its highest since
March on Thursday, buoyed by the prospect of higher demand from top
consumer China after data showed a strong performance in its services
sector. - more
Indonesia nickel ore export ban to remain -mining ministry director -
Indonesia will keep in place a ban on the export of nickel ore even as
it relaxes exports of some other minerals under revisions to its mining
law, the director of minerals at the country's energy and minerals
ministry said on Thursday. - more
Shrinking demand - Stainless Commodity Focus - Stainless steel demand
has been shrinking, and there’s little appetite for raw materials. - more
US dollar safe haven loss may spell more metals price volatility - The
US dollar, typically used for pricing metals, is no longer considered a
safe haven for investors and this could mean more price volatility in
metals, including scrap, moving forward, a commodities analyst told a
scrap metals forum June 3. - more
The shift to high nickel batteries is happening right now - Meaningful
efforts to increase nickel content in batteries will support an
anticipated +560 per cent increase in battery related nickel demand
over the next five years. - more
Putin backs state of emergency in Arctic region over fuel spill in
river - 20,000 tonnes of oil products spilled out of a power station in
the industrial city of Norilsk last week - more
Indonesia Processing Requests for Deep-sea Mining Waste Disposal -
Indonesian authorities are considering two companies’ requests to
dispose mining waste into the ocean, a senior government official said
on Sunday, at a time of heightened sensitivity about the environmental
impact of mining. - more
Distributor Pandemic Index Swings Back to Growth After 9 Weeks of Major
Losses - The index surged to just above break-even last week - a
substantial turnaround since late March. - more
Nickel closed Tuesday's trading
session at $5.82/lb ($12,840/tonne). Indicators at 6:10 am CST today show
nickel trading around $.03/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell by
one lot on Tuesday and started today just over the 232,800 tonne level
again. Nickel is testing resistance again this morning, which was
established on May 21st, the highest nickel had traded last month and
highest since March. This is the second day resistance is being tested
and some analysts will tell you another unsuccessful attempt today
could send a negative signal. We will see. So called technical analysis
appears to us to share a win loss record with flipping a coin. It's
hump day. Stay safe and have a great day!
Average price of LME traded cash nickel
so far this month
- $5.69/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - London copper falls from 2-1/2-month high as demand risk lingers - more
Tuesday's market review - Copper and aluminium touch
highest since March on China recovery - Copper and aluminium prices
climbed to their highest in more than two months on Tuesday as more
signs emerged that the Chinese economy is extending its recovery from
the coronavirus outbreak. - more
ThyssenKrupp intends to sell Italy's 130-year-old stainless steel plant
- The two major Italian steel producers Marcegaglia and Arvedi Group
were still considering further business expansion even under the
epidemic of Covid-19. - more
Hedge funds still giving industrial metals a wide berth: Andy Home -
Industrial metals such as copper have clawed their way back from
coronavirus crisis lows, with the London Metal Exchange (LME) index of
leading base metals contracts 12% off its March trough. - more
Arctic declares state of emergency after thousands of tons of diesel
leak into river - The exact reason of the leak is under investigation
but a statement from Norilsk Nickel company that operates the site
suggests subsidence caused by collapsing permafrost was to blame. - more
European Commission proposes alterations to steel safeguard measures
- Following the conclusion of the second review period, the
European Commission has notified the World Trade Organisation of its
proposed amendments to existing steel safeguard measures. - more
Court finds Clive Palmer’s Queensland Nickel was insolvent - Clive
Palmer’s failed Queensland Nickel refinery was insolvent in the days
before administrators were called in, a judge has found. - more
Nickel closed Monday's trading
session at $5.73/lb ($12,635/tonne). Indicators at 6:15 am CST today show
nickel trading around $.09/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Monday and started today just over the 232,800 tonne level. Last year,
the largest bull run started on May 1st and peaked on August 1st. This
year the started with the market in a slide that had started in 2019,
and one that bottomed on March 23rd. The market has been in what we
would call a sneaky bull market since, with back and forth rushes
seeing the overall average gradually moving higher. So far, June's new
bull run looks impressive, but it still has yet to beat the May 21st
high, which is offering some technical resistance. Nickel may be
trading higher on the Chinese manufacturing PMI turning positive again (see here),
but the other three we record monthly, remain negative. Newsy Tuesday
so we leave you with it. Stay safe and have a great day.
Average price of LME traded cash nickel
so far this month
- $5.63/lb
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Shanghai copper hits 3-month high as demand recovers - more
Monday's market review - Copper scales March highs on
improving demand prospects - Copper prices climbed to three-month highs
on Monday as stronger manufacturing data from top consumer China and
the loosening of lockdowns imposed to contain the coronavirus stoked
expectations of healthier demand. - more
Nickel in a Pickle! - The ability of the nickel market to excite
investors and developers – only to then shoot itself in the foot – is
second-to-none in the metal industry. - more
Russia’s stainless steel output drops, imports rise in April - The
Federal Service for State Statistics (Rosstat) data showed that
Russia’s production of stainless steel decreased in April. - more
Global Plug-In Electric Car Sales In April 2020 Down 30% - The decline
of plug-in electric car sales in April was significant, but compared to
the overall market, it was actually better than average. - more
Merafe Resources shares leap 9% on acquisition of Unicorn Chrome stake -
Merafe Resources closed 9.09 percent higher to close at 60c a share on
Friday following news that it had acquired a 20.5 percent
stake in Unicorn Chrome from Glencore for R32.2 million. - more
Courtesy AISI - In the week ending on May 30, 2020, domestic raw steel
production was 1,206,000 net tons while the capability utilization rate
was 53.8 percent. Production was 1,880,000 net tons in the week ending
May 30, 2019 while the capability utilization then was 80.8 percent.
The current week production represents a 35.9 percent decrease from the
same period in the previous year. Production for the week ending May
30, 2020 is up 1.3 percent from the previous week ending May 23, 2020
when production was 1,191,000 net tons and the rate of capability
utilization was 53.2 percent. - more
Nickel closed Friday's trading
session at $5.53/lb ($12,200/tonne). Indicators at 6:15 am CST today show
nickel trading around $.13/lb
higher. Stockpiles of nickel stored in LME licensed warehouses ended
the month of May just under the 233,500 tonne level. For the month of
May, nickel stockpiles in, LME warehouses rose by 2,784 tonnes. While
the month saw prices see saw in a fairly wide band, nickel ended the
last day of May $25/tonne lower than it ended the month of April. While
history will show the month was a big yawner, those of us living it,
know it was anything but. Nickel is trading higher this morning on
positive Chinese PMI numbers. The markets, as well as the world, are
being held hostage to a nearly invisible, yet deadly enemy, in the form
of a microscopic virus. Pandemic was a word we rarely heard just a few
months ago, and now, it guides our daily lives. The last month saw
America, as well as other parts of the world, start to re-open, after
being shut down for the past month to six weeks, in an attempt to slow
the spread of covid-19, by putting parts of the world in seclusion.
Here in the US, we ended the month of May averaging closer to 20,000
new cases a day, compared to 30,000 the two months prior. Things are
slowly getting better, and the phrase of the month is likely to be
'cautious optimism'. If we may steal a toast from Colonel Potter, yet
change it to reflect our situation, " Here's to the month of June. May
she be a damn sight better than May, and may we all still be healthy
when she's over."It's a new month and we welcome back Taunton
Metals of Florida as our June sponsor. We invite you to visit their web
site by clicking on their banner, and we thank them for their multi
month sponsorship. Stay safe, and have a great week!
Average price of LME traded cash nickel
so far this month
- $5.50/lb (May average)
LME nickel chart - here / Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper up on improving demand prospects - more
Friday's market review - Copper climbs on demand hope,
U.S.-China tensions weigh - Copper rose on Friday, on track for its
second straight month of gains, as expectations of economic stimulus
from top consumer China spurred buying, while mounting U.S-China
tensions capped the upside. - more
Stainless Steel Order Volumes Remain Low, amid Ongoing Pandemic - In
the United States, buyers of stainless steel are purchasing minimal
quantities, at present. - more
Global Stainless Steel Market Faces Protracted Recovery from Covid-19 - more
Taiwan’s Walsin Lihwa & Yieh Hsing raise stainless steel wire rod
prices for Jun - After Yieh United Steel Corp. (Yusco) hiked its
stainless steel prices yesterday (May 28th), Walsin Lihwa and Yieh
Hsing Enterprise Co., Ltd., two leading stainless steel wire rod
producers in Taiwan, also announced to raise their prices for June,
which have been hiked for two consecutive months. - more
(all
ton listings are metric tons = 2204.622 pounds ) Updated Monday thru
Thursday before 7 am CST, Friday version before 8 am CST - DisclaimerOriginal content and opinions copyright
www.estainlesssteel.com. All prices shown on
this page are indications only. Please note - for real time and
official LME
prices, LME requires a user subscribe to an authorized LME vendor.
Daily Nickel/Stainless Steel Briefing 
($12,825/tonne). Indicators at 6:25 am CST today show
nickel trading around $.01/lb 
Reports
Why Stainless Steel 
Monday's market review - Copper heads higher as
coronavirus constricts Chilean supply - Supply disruption in top
producer Chile, solid demand in top consumer China and dwindling
stockpiles kept copper prices near five-month highs on Monday. -
Taiwan’s Yusco raises stainless steel prices for Jul - Yieh United
Steel Corp. (Yusco), a leading stainless steel mill in Taiwan,
announced its new prices for July today (June 29). - 
Journalists uncover ‘Norilsk Nickel’ plant pumping toxic wastewater
into the Russian tundra - The Talnakh Concentrator Plant, which belongs
to industrial giant Norilsk Nickel, has been dumping industrial
wastewater into the tundra in the Russian Arctic, reported the
independent newspaper Novaya Gazeta on June 27. - 
Courtesy AISI - In the week ending on June 27, 2020, domestic raw steel
production was 1,240,000 net tons while the capability utilization rate
was 55.4 percent. Production was 1,863,000 net tons in the week ending
June 27, 2019 while the capability utilization then was 80.1 percent.
The current week production represents a 33.4 percent decrease from the
same period in the previous year. Production for the week ending June
27, 2020 is up 1.3 percent from the previous week ending June 20, 2020
when production was 1,224,000 net tons and the rate of capability
utilization was 54.6 percent. - 
Other News
unchanged.
Stockpiles of nickel stored in LME licensed warehouses fell on Friday
and started the week just under the 233,700 tonne level. Stockpile
numbers for the month are now up just slightly over 150 tonnes, so it
will be interesting to see what happens the next few days. Even though
nickel prices have done a big nothing so far this morning, the US
Dollar is trading lower and adding support. Traders may be a little
taken back by the fact Shanghai reopened their markets today, but did
not follow suit on LME's jump on Friday. As daily watchers of both
markets, we can say with confidence, that for the most part and with
rare exceptions, Chinese nickel traders tend to follow LME's lead. So
when they did not follow Friday's nickel price jump, it has to raise
some eyebrows in London. World traders must be wondering "Do they know
something that we don't yet?". We suspect it had more to do with the
dive in equity markets Friday, that overshadowed any positive
speculation in the nickel market. Two working days left to the first
half of 2020. Stay safe out there and have a great week! 
Zimbabwe Restarting Chrome Export to China - Business Times reported
that Zimbabwean chrome miners will resume exports to China following
revelations that the China has started opening up its chrome market
which was halted due to the Covid-19 pandemic and depressed prices. - 
UBS is hitching a ride on the copper, nickel bull train - China has
bounced back faster than expected from the COVID-19 lockdown while
commodity prices have proved remarkably resilient in the face of weak
demand during the second quarter of 2020. - 
How artificial intelligence can improve resilience in mineral
processing during uncertain times - As COVID-19 continues to
affect millions of lives and livelihoods, it is delivering perhaps the
most significant shock to industries - from education to healthcare to
food supply - in almost a century. - 
U.S.: Plug-Ins Account For 5.1% Of New Passenger Cars In January-May
2020 - According to IHS Markit data (via BMW's report), plug-in
electric cars in the U.S. had about 5.1% share in the passenger car
market during the first five months of 2020. That's noticeably less
than the 5.5% reported for the first four months. - 
Indonesia expects delay to 2021 for $3.7 bln smelter investments -
Indonesia expects $3.7 billion in investments for smelter projects to
be delayed to 2021 if the coronavirus outbreak persists until the end
of 2020, a mining official said. -
India slaps anti-dumping duty on steel from China, Vietnam, Korea - The
duty is applicable on products originating from or exported from China,
Vietnam and Korea and imported into India - 
Launch of the new EUROFER website - The European Steel Association
(EUROFER) has launched its new and refreshed website, making finding
out about the European steel industry and the work of its
Brussels-based trade association clearer and more accessible. - 
Deep sea mining could destroy undiscovered species, says Ocean Panel -
Mining on the sea floor should not begin before a full assessment of
likely environmental impacts can be made, a report commissioned by the
High Level Panel for a Sustainable Ocean Economy (Ocean Panel) said on
Wednesday. - 
Glencore faces new corruption probe in Switzerland - Sources
close to Glencore said June 19 they expect "business as usual" at the
Swiss-based international trader and miner even following the opening
of a fourth investigation in less than two years into how the company
runs its business. - 
Prospects looking bright for Shire of Ravensthorpe post-COVID -
Ravensthorpe is well poised to emerge from the worst of the coronavirus
pandemic on a good footing, says Shire president Keith Dunlop. - 
Vale to Restart Nickel Mine in Canada After Covid-19 Pause - Vale SA,
the top commercial nickel producer, will resume operations next month
at its Voisey’s Bay mine in Canada after halting work to monitor the
coronavirus outbreak. - 
ID Catches Up With Fastener, MROP Distributor Bolts & Nuts - ID
re-connects with Chattanooga, TN-based Bolts & Nuts Corp. to learn
what they've been up to since visiting the distributor in December
2015. - 
January to April 2020 Metals Balances - The nickel market was in
surplus during January to April 2020 with production exceeding apparent
demand by 14.4 kt. In the whole of 2019, the calculated deficit was
17.9 kt. - 
3 Japanese major companies to merge 2 stainless steel plants from Oct -
Nippon Steel Stainless Steel Corp., Nippon Steel Trading Corp., and
Sumitomo Corp. signed an agreement on the merger of Japanese domestic
stainless steel plants. - 
New Caledonia nickel ore export bids hit impasse - The government of
New Caledonia is poised to refer the impasse over a new mining code to
the next meeting of the signatories to the Noumea Accord. - 
Tharisa PLC now operating chrome and PGM mines at full capacity, and
enjoying renewed commodity price strength - No one could doubt that the
world now is a very different place to the world as it seemed at the
beginning of this year. - 
ThyssenKrupp intends to sell Italy's 130-year-old stainless steel plant
- The two major Italian steel producers Marcegaglia and Arvedi Group
were still considering further business expansion even under the
epidemic of Covid-19. - 
