Headlines & leaders - (Bloomberg) China’s Stocks Rise, Capping Best
Quarterly Gain in Year on Bank Earnings // European Governments Limit New
Lending to $666 Billion in Crisis Firewall // U.K. Consumer Confidence Fell
in March Amid Government Squeeze // Ireland Buys More Time on Bond Market
Return after Debt Accord // India and China Skirt Iran Sanctions With ‘Junk
for Oil’ // Spain Will Lower Spending While Raising Corporate Taxes
to Reduce Deficit // Stocks in Europe Climb as Finance Ministers Agree on
Bigger Bailout Fund // The Era of Big Box Retail Dominance Is Coming to an
End // Republicans Tampered With Court Audio in Obama Attack Ad // Consumer
Spending in U.S. Tops Forecast Amid Improved Job Outlook: Economy // Stocks,
Euro Rise as Officials Set Bailout Aid Limit, U.S. Spending Gains
The Euro is now trading 3/10 of 1% higher against the US Dollar. NYMEX crude
is nearly 3/4 of 1% higher and trading at $103.52/barrel. Gold is 1/3 of
1% higher and silver is over 1/2 of 1% higher. Base metals ended the session
mostly higher, with nickel being the day's big gainer. Indicator charts show
nickel jumped early, stabilized for much of the day, and then spiking nearly
$350/tonne late. For the day, week, and month, Dow Jones reports three month
nickel closed at $8.09/lb. Nickel avoids
a second day close below key support. For the quarter, nickel was the London
Metal Exchange's biggest loser, dropping 4.7%. Stockpiles of nickel stored
in LME licensed warehouses fell slightly on Thursday and now total just under
98,900 tonnes. For the week, stockpiles rose by 2,142 tonnes. Markets are
higher today as Europe strengthened its firewall against further spread
of the sovereign-debt crisis. And in the US, consumer spending rose in February,
consumer sentiment is running at its best in a year, and the Chicago PMI,
while recording its fifth straight decline, remained well in positive growth
territory.
Is Mega Millions’ $540 Million Jackpot a Good Bet? -
more
Low Rates Put U.S. Company Pension Deficits at Record -
more
Jobless Claims Trend Lower, Even With Revisions -
more
GDI: An Alternate Measure Showing Stronger U.S. Growth -
more
Four Numbers Add Up to an American Debt Disaster -
more
Austenitic stainless
steel prices reductions are imminent: MEPS - The vagaries of the LME nickel
market have once again exaggerated the stop-start nature of stainless steel
supply chains. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 6:50 am CST show 3 month nickel trading around $.17/lb
higher, with other
London traded base metals trading higher a swell. The Euro is trading
1/3 of 1% higher against the US Dollar. NYMEX crude futures are up nearly
6/10 of 1% higher and trading at $103.37/barrel. Gold is up over 1/3 of 1%
while silver is nearly 9/1-0 of 1% higher. In overnight trading, Asian markets
ended lower, with China up nearly 1/2 of 1%. European markets are trading
higher this morning, while US futures show a higher opening as well. Nickel
stockpiles fell slightly overnight.
Reuters morning - Copper up, on track for 11 pct quarterly gain -
more
LME Morning - Base metals gain on book-squaring as end of Q1 nears -
more
Copper prices reversed impressively yesterday after a decent-sized decline
set in over much of the Asian and European sessions. We did not see anything
behind the abrupt about-face other than a slight strengthening in the Euro
and likely short-covering. Despite the higher close, other metals struggled,
with aluminum looking particularly weak, especially after key support at
$2150 was taken out. Most other commodities finished sharply lower yesterday,
with energy prices shedding between $2-$3 a barrel and nudging the CRB index
towards its biggest daily decline in 3-1/2 months. Looking back over the
first quarter, copper has had a very good run and is on track to finish with
a 10% increase, this despite the significant demand headwinds emanating from
China. Tin leads the group in terms of being the best performing metal, up
17% on the quarter, followed by zinc and aluminum at 8% and 6%, respectively.
The biggest losers were lead (down 3%) and nickel (down 6%). Right now, metals
are higher across the board, with copper back over $8400. There are decent
advances in lead and nickel as well, both of which hit multi-month lows earlier
this week. Energy prices are up by about $.80 a barrel, while the Euro is
firmer, now trading at $1.3360. US stocks are expected to open higher after
losing ground for three straight sessions, but are nevertheless on track
to close out a stellar first quarter. .... Out of China, official PMI numbers
are expected to be released on Sunday, and should set the trading tone for
early next week. The indicator is expected to decline to 50.8 in March from
a four-month high of 51.0 in February. ..... Nickel is at $17,505, up $355.
Support at $17,300 was taken out yesterday, but prices seem to be back over
this level today, thus preventing two days of closes below support, an indication
of a more serious technical breach. (complete report
here)
Commodity/Economic Comments
(Yieh) Yieh United Steel Corp. (Yusco), one of the largest stainless steelmaker
in Taiwan announced its April list prices on March 29th. The company decided
to cut the domestic prices of 300 grade stainless steel products by NT$5,000/ton;
while it remained the domestic prices of 400 grade stainless steel products
unchanged for April deliveries.
(Interfax) Brazil's rainy season along with freight difficulties dampened
China's iron ore imports from the South American country in February, while
shipments from Australia and India saw increases.
(WSJ) Philippine Finance Minister Cesar Purisima said new rules governing
mining in the country—home to some of world's richest deposits of copper,
gold, zinc and nickel—are likely this summer, but that the government
won't block contracts from going forward in the interim.
Besides, Yusco also cut the export prices of 300 grade stainless steel products
by US$150~US$170/ton for April shipments; while it kept the export prices
of 400 grade prices unchanged.
Copper Traders Most Bearish in Two Months on China: Commodities -
more
Analysis: Brazil commodity exporters under friendly fire in "currency war"
-
more
Norilsk sees average
nickel prices near $20,000/t in 2012 - Global average nickel prices this
year will be slightly less than $20,000 per metric ton, which is almost equal
to the average level for the first quarter, Norilsk Nickel's head of marketing
Viktor Sprogis said at the Reuters Mining and Metals Summit. -
more
Doomsday Is
the Theme as Nickel Miners Meet in Bali - While students and unions protested
a proposed fuel subsidy cut in the capital and other cities across the country
on Thursday, a small group of nickel miners gathered on Bali to voice their
own concerns. -
more
Stainless steel
business in Baosteel - Baosteel Co Ltd held the temporary shareholders' meeting
on March 15th, reviewed and passed The Bill on selling the relevant assets
of the Stainless steel bar division. -
more
Struggling Mirabela
takes hit on nickel price - Mirabela Nickel shares slid to fresh seven-and-a-half
year lows yesterday, with investors waiting for signs the nickel miner's
aggressive cost-cutting plans are bearing fruit. -
more
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
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) Chinese Stocks Slump to 10-Week Low
as Sany, Zijin Fuel Earnings Concern // Asia Stocks Fall Second Day on U.S.
Factory Orders, China Earnings Concern // Euro-Region Economic Confidence
Unexpectedly Declines as Economy Struggles // Euro Compromise to Raise Aid
Ceiling Seen as Political Cover for Germany // Stocks in Europe Fall a Third
Day as S&P Sees Further Greek Restructuring // Global Takeovers Drop
for Third Straight Quarter as Bankers See Revival // Best Buy Plans to Close
50 Stores After Sales Trail Estimates; Shares Fall // First-Time Jobless
Claims in U.S. Fall to Lowest Level Since 2008: Economy // Stocks in U.S.
Decline as Unemployment Claims Exceed Economists’ Estimates
The Euro is now down 1/3 of 1% in trading against the US Dollar. NYMEX crude
is down nearly 2% and trading at $103.36/barrel. Gold is off 2/3 of 1% while
silver is 2/10 of 1% lower. Base metals ended the session mixed, with most
quiet, and tin a big winner, and nickel spending another day in the big loss
column. Indicator charts show tried to rally early, fell, steadied, then
fell again late. For the day, Dow Jones reports three month nickel closed
at $7.78/lb. Stockpiles of nickel
stored in LME approved warehouses fell slightly on Wednesday and now total
just over 99,900 tonnes. Keep in mind, this is the lowest nickel has traded
since late November last year, when it bottomed at $7.60/lb on December 1st.
That was the lowest level we had seen nickel trade since December 2009, and
the market only closed under $8/lb for eight sessions before rebounding.
In our opinion, this really shouldn't be happening in March. December, maybe,
but not during spring. Nickel's highest official cash price ever was on May
16th, five years ago, when it hit $24.58/lb. While that was the extreme,
it does reflect the general optimistic nature with which traders typically
greet spring nickel traders. This year, however, world markets are starting
to get the springtime jitters, and nickel prices are getting hit especially
hard. Where this is going is anyone's guess.
Reports
Damstahl Stainless Steel Report March 2012 -
pdf here
Treasury to Cut Costs by Remaking Coins, Replacing Paper -
more
J.P. Morgan: Sustained Job-Market Recovery Is Here -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:00 am CST show 3 month nickel trading around $.04/lb
lower with other
London traded base metals lower as well. The Euro is trading 1/4 of 1% lower
against the US Dollar. NYMEX crude futures are down nearly 1/2 of 1% and
trading at $104.93/barrel. Gold and silver are both down over 2/10 of 1%.
In overnight trading,Asian markets ended lower, with China down over 1-1/4%.
European markets are trading lower this morning, with US futures lower as
well. Nickel stockpiles fell slightly overnight.
Reuters morning - Copper on track for 10 pct quarterly rise -
more
LME Morning - Base metals soften, investors adopt risk-off attitude -
more
Copper fell more than 2% yesterday, dragging the rest of the metals down
with it. Other markets were caught up in the retreat as well, typical of
a “risk-off” type of trading day that left bulls with few places
to hide. For a change, crude oil was lower, as the complex was pressured
by growing talk of an imminent massive release from western inventories.
.... We are seeing more selling hit metals today, with aluminum being
particularly weak, and now crashing through support at $2150. Copper is hovering
around $8300, but still in a trading range, although we think it is a matter
of days at most before the bottom end of the range is seriously tested and
possibly taken out. Oil prices are off by about $.50 right now, and despite
yesterday’s wobble, the complex has yet to undergo a major correction.
High energy prices in our view still have the capacity to retard future growth
prospects, while boosting inflation (and possibly interest rates), particularly
in emerging market economies. ..... In other news, Bank of China
International Global Commodities, a unit of Bank of China, has applied for
membership to the LME, the exchange said. If approved for a category 2
membership, it could trade in the electronic LMESelect and telephone markets,
but not in the ring. This will mark the first time a bank from China has
become a member of the exchange. The bank expects to receive approval by
the end of the first quarter. .... Nickel is at $17,488, down $87. Next support
is at $17,300 (see red line in our attachment), with $16,500 below that.
(complete report
here)
Commodity/Economic Comments
(NAS) North American Stainless will increase the fuel surcharge to 36% for
stainless flat and long products shipping in the month of April 2012. The
surcharge rate is considered a maximum level for April and will be reviewed
monthly.
(Yieh) According to report of China Iron and Steel Association (CISA), the
medium-large -size steel enterprises in China realized margin losses of RMB548
million in this February, slumping by 106.62% from that in the same period
of a year earlier.
(MBN) Full output expected at Lockerby nickel -copper mine in 2012
(Interfax) Northwest China's Shaanxi Province has published a five-year
development plan for metals and new materials in the period up to 2015 which
aims to further develop local iron ore resources and create a leading nonferrous
firm to oversee the expansion of its flagship titanium and molybdenum industries.
Analysis: Commodities shunned as investors take on more risk -
more
CEOs Expects Marked Economic Improvement This Year -
more
Filipino rebels
threaten new attacks on mine firms - Philippine communist guerrillas warned
three mining companies Wednesday that they may be attacked again if they
continue to use methods the rebels say harm the environment. -
more
Vale construction
drives Long Harbour real estate market - The influx of thousands of workers
helping build Vale’s new nickel processing plant in Long Harbour is
having a big impact on the small town's economy — especially the housing
market. -
more
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China’s Stocks Fall Most in 4
Months as SocGen Sees No 2012 Profit Growth // S&P Says Ratings Aren’t
Foolproof in ‘Can’t Sue Me’ Defense of AAA Notes // Asian
Stocks Fall, Led by Gome, Amid Concern China Earnings Growth to Slow // Libor
Review Panel Includes Banks That Are Being Probed for Manipulation // Italy
Sells Treasury Bills at Lowest Rate in Year After Progress on Crisis // Rio,
BHP Lose Faith in Diamonds Even as Prices Rise: Commodities // Europe Rescue
Funds to Be Raised to $1.3 Trillion for a Year, Draft Shows // Italy Sells
Treasury Bills at Lowest Rate in Year After Progress on Crisis // European
Stocks Decline for Second Day; Total, Popolare di Milano Drop // Pentair
Will Merge With Tyco Flow Control Division Valued at $4.53 Billion // Climbing
U.S. Durable-Goods Orders Signal Manufacturing Strength: Economy // Unemployment
in U.S. May Drop to 6% by Mid-2013, New York Fed Study Finds // Stocks Fall
as Oil Decline Drags on Energy Shares; Treasuries Erase Drop
The Euro is now trading nearly 1/10 of 1% lower against the US Dollar. NYMEX
crude is down nearly 2.2% and trading at $105.01/barrel. Gold is down 1.3%
and silver is off 1.9%. Base metals ended the session lower as well, as part
of a much larger sell off. Indicator chart show nickel opened in positive
territory, but spent the last 2/3 of the day in a slide. For the day, Dow
Jones reports three month nickel closed below $8/lb for the first time since
Dec 1, 2011 and at $7.97/lb. For a second day,
stockpiles of nickel stored in LME approved warehouses jumped and now total
just 40 tonnes shy of the 100,000 tonne level. Levels have not been this
high since they fell below the 100,000 tonne mark on September 8th, 2011.
Markets are in a bad mood today. Commodities took a hard hit, with equities
around the world faring little better. The Dow is presently trading just
shy of 100 points lower. Nickel fell below $8/lb today, which it did last
November for a few weeks. It never closed below $7.69/lb though in that cyclical
bottom, so it is doubtful we will see much more downside potential. Then
again, we have been wrong before. We are in the territory now where pig nickel
production in China starts, or already has become, unprofitable. Lot of
speculation on where the break even point actually is, but no one seems to
know for sure. At these price levels we could see cancelled warrants start
moving back up - unless demand just isn't there. Stay tuned. April suddenly
looks interesting.
(PR) The Ramu Nico project, Papua New Guinea (a project in which MCC-JJJ
Mining Development Company Limited, a 61%-owned subsidiary of MCC, holds
85% equity interest) invested, designed and owned by Metallurgical Corporation
of China Ltd. ("MCC") has formally kicked off the single-series feeding trial
run, which produced nickel cobalt mixed hydroxides on 19 March 2012.
(Dow Jones) It's "hard to justify" a significant rally in nickel prices from
current levels, says Standard Bank, given high levels of both reported and
unreported stocks and the unlikelihood of an Indonesian ore ban coming into
force.
Bernanke Tells ABC Economic Recovery Has ‘Long Way To Go’ -
more
Consumer Concerns Shift From Jobs to Gas Prices -
more
Power cuts
threaten SA mining - Electricity supply constraints and the effect of strikes
would erode mining output this year, adding to the factors that would curb
growth in the economy, analysts said on Tuesday. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:00 am CST show 3 month nickel trading around no change
with other London
traded base metals mostly lower. The Euro is trading 2/10 of 1% higher against
the US Dollar. NYMEX crude futures are down nearly 9/10 of1% and trading
at $106.41/barrel. Gold is down 1/4 of 1% and silver is off 3/10 of 1%. In
overnight trading, Asian markets ended lower, with China down over 2.8%.
European markets are trading lower this morning, while US futures are higher.
NIckel stockpiles saw a second day of large gains.
Reuters morning - Copper falls ahead of U.S. manufacturing data -
more
LME Morning - Metals unsettled in thin trading conditions and economic
uncertainty -
more
Reports
US Imports of Stainless Steel Mill Products -
more
Copper prices finished with a modest gain yesterday in very quiet trading,
failing to build on the prior day's 2% rally, as a slight uptick in the dollar
and growing concern about macro issues helped keep the buying in check. We
also suspect that investors are perhaps having second thoughts about the
trigger behind Monday’s move, concluding that should Ben Bernanke follow
through with another quantitative easing program, that this could mean the
economy is indeed in worse shape than it actually is. “It’s far
too early to declare victory,” Bernanke told ABC News yesterday. “The
recent news has been good. But I think we need to be cautious and make sure
this is sustainable. And -- we haven’t quite yet got to the point where
we can be completely confident that we’re on a track to full
recovery.” Asked if another round of quantitative easing remains “on
the table,” the Fed chief said, “we don’t take any options
off the table”, adding that “We have to be prepared to respond
to however the economy evolves.” .... Right now, metal markets
are generally lower, with copper giving back about half of its recent gains.
Energy prices are also down, as is the precious metals group. Although the
dollar is practically unchanged against the Euro, we have to suspect that
some of Monday’s Bernanke-induced move is being reexamined in light
of sluggish demand prospects, particularly out of China. In this regard,
Reuters ran a story yesterday saying that commercial copper stocks in the
country could now be as high as one million tons (inclusive of the 223,000
tons held in Shanghai), levels not seen since 2009. All in all, it very much
feels that the “Sell in May and go away” mantra may indeed hold
true this year, especially if the spiral in energy prices is not broken and
we continue to see growing signs of slow-down emanating from China. .....
Nickel is at $17,785, up $5. The $17,800 level will be vulnerable on a two-day
closing basis if we finish below it again today. (complete report
here)
Commodity/Economic Comments
(SC) Toledo Mining has turned down a bid for its Ipilan nickel operation
in the Philippines. The firm said that together with its joint venture partners
it had concluded an offer by Chinese group Jinchuan was "wholly unacceptable".
(Yieh) According to Metals Service Center Institute’s (MSCI’s)
specialty metals, though the global stainless demand is weak since this year,
it is still rising slowly. It predicted that the growth rate of the global
stainless steel demand would slow down to 4% in 2012 from 8% in 2011, mainly
from Brazil, Russia, India and China.
(ATA) The American Trucking Associations’ advanced seasonally adjusted
(SA) For-Hire Truck Tonnage Index rose 0.5% in February after falling 4.6%
in January.
Revolving credit: the beating heart of China's metal trade -
more
(China) Biggest profit drop strikes in three years for manufacturing industry
-
more
China HCFeCr Market
- Mills Are Slow = Quotes from stainless steel mills may delay into April
= Producers and users are in a standoff over the price of high-carbon ferrochrome
under the continued pressure blocking it to go up. -
more
Indonesia's
Nickel Export Ban May Spur Local Investment - Indonesia’s ban on exports
of nickel ore may encourage investment in processing facilities in the country,
according to Deutsche Bank AG. -
more
Chinese-driven
resources boom doomed: Dow chief Andrew Liveris - Australia was too reliant
on selling mineral resources to China, Dow Chemical's chief executive,
Australian-born Andrew Liveris, warned yesterday. -
more
Norilsk Challenged
by Ural Mining in Home Region, Interfax Says - OAO Norilsk Nickel, Russia’s
largest mining company, is competing for a license in the Taimyr region,
where it was founded, with billionaire Iskandar Makhmudov’s Ural Mining
& Metallurgical Co., Interfax said. -
more
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
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 to Ban Public Purchases of
‘High-End’ Alcohol // Obama Says Too Many ‘Bad Actors’
Trying to Get Hands on Nuclear Material // China Leadership Acts Against
Bo Xilai Legacy as Chongqing Official Fired // China’s Industrial Company
Profits Decline 5.2% on Slowing Exports, Curbs // Indonesia Set to Exit Junk
as Growth Holds Up Amid China Slowdown: Economy // Asian Stocks Rise as Nikkei
Erases Quake Loss Before Report on U.S. Confidence // French Consumer Confidence
Jumped by Most in Five Years in March: Economy // Russia Planning to Sell
30-Year Eurobonds at Record-Low Yield, Banker Says // European Stocks Decline
After Report Showing U.S. Consumer Confidence Fell // Goldman Sachs Trading
Diaspora Falters as Flamand Hedge Fund Loses Money // MF Global’s Counsel
Resisted Giving JPMorgan Assurances on Fund Transfers // Russia-Sized Mistakes
Driving Corn Prices to Limit: Commodities // Improving U.S. Job Market Keeps
Consumer Confidence at Year High: Economy // Treasuries Strengthen With the
Dollar as U.S. Stocks Trade Little Changed
The Euro continues to trade less than 2/10 of 1% lower against the US Dollar.
NYMEX crude is trading just slightly higher and at $107.05/barrel. Gold and
silver are both trading lower by 3/10 of 1%. Base metals ended the session
mixed and most quietly, All except nickel that is. Indicator charts show
nickel opened higher, but began a decline that paused mid day, then picked
up steam in the latter half. For the day, Dow Jones reports three month nickel
closed at $8.06/lb
, and its
lowest close this year. Stockpiles of nickel stored on LME approved warehouses
rose to a new 2012 high on Monday and now total just over 99,200 tonnes.
This one day increase of over 1500 tonnes hurt nickel prices today, as growing
stockpiles once again bring a potential world surplus into focus. So far
this year, nickel has proven to be the ugly stepchild of base metals trading,
much to the chagrin of nickel miners and stainless steel producers alike.
Prices ended January around the $10/lb range, ended February near the $9/lb
line and it appears the market has the $8/lb mark in view as it ends March.
US consumer confidence slipped in March, most likely due to higher gas prices,
and US housing prices fell again. US equity markets have so far spent the
day in limbo as traders are finding it difficult to capitalize on yesterday's
big rally.
Mining boom in Michigan:
economic boost or environmental nuisance? - Demand for metals on the world
market is prompting a mining boom in Michigan's rural Upper Peninsula, where
jobs are scarce. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 6:55 am CST show 3 month nickel trading around $.02/lb
lower, with other
London traded base metals lower as well. The Euro is trading over 1/10 of
1% lower against the US Dollar. NYMEX crude futures are up 1/10 of 1% and
trading at $107.14/barrel. Gold is down nearly 1/4 of 1% and silver is down
over 1/10 of 1%. In overnight trading, Asian markets ended higher, with China
down 1/3 of 1%. European markets are trading higher this morning, with US
futures flat and giving no clues to an opening direction. Stockpiles of nickel
rose sharply on Monday.
Reuters morning - Copper steadies after rally, dollar weakness helps -
more
LME Morning - Metals slightly higher, look to capitalise on Bernanke boost
-
more
We should have known that Fed Chairman Ben Bernanke was going to be speaking
yesterday -- always a good indication that a relatively large move in either
direction is bound to follow. This time around, Bernanke’s remarks resulted
in a cascade of buying across most markets, with good gains seen in base
and precious metals, the Euro, and US equities. Energy prices sat out of
the rally, as they had already moved quite significantly the week before.
The key phrase in the Bernanke remarks igniting the buying was the following:
“Further significant improvements in the unemployment rate will likely
require a more rapid expansion of production and demand from consumers and
businesses, a process that can be supported by continued accommodative
policies”. The language seemed to suggest that in addition to low rates,
“QE III”, which was perceived to be off the table not too long
ago, was now, if not exactly back on the table, perhaps lingering on its
edge. The notion of another QE program gained further credibility after Bernanke
downplayed the significance of recent employment gains, saying the labor
market was still “far from normal”. Interestingly, the chairman’s
remarks were almost the reverse of what he said on February 29th when he
doused expectations of further easing, sending a number of commodities, notably
precious metals, off a cliff. Despite Monday’s
“reinterpretation” of Bernanke’s remarks, we find the upside
staying power emanating from his speech somewhat limited. For one thing,
Bernanke did not directly refer to an easing program along the lines of QE
III, and even if he did hint at it, the implication of another massive ease
should be cause for concern, not celebration. We should remember that we
already have had four years of easy money, coupled with a massive expansion
in the Fed’s balance sheet. Neither has been successful in pushing the
economy into a higher gear of 4-5% growth, a level that will likely make
more of a dent in the unemployment rate and allow the Fed to finally remove
its monetary crutch from underneath the economy. Instead, growth seems to
be mired between 2-3%, just under the historical norm, and the worry is that
even this relatively modest expansion will be difficult to sustain in light
of soaring energy prices. In fact, recent macro data coming out of the US
over the past week seem to suggest that growth could be “topping out”,
particularly as far as housing is concerned. On Monday, we saw February pending
home sales sliding 0.5% from the prior month (confounding expectations for
a 1% rise), and extending the month-over-month declines also seen in existing
and new home sales. Later today, we will be getting the Case-Schiller housing
price index where another substantial price decline in most metropolitan
cities is expected. March consumer confidence readings (expected at 70) follow
later in the day. Right now, metals are mixed, with both copper and aluminum
showing slight losses, but the rest of the metals are hanging on to modest
gains. Energy prices are lower, while the euro has eased slightly, now trading
at $1.3338. We expect the firmer tone in the commodity complex to remain
in place for at least another day or two, although we eventually do see the
markets rolling back most of the “Bernanke spike”, as focus quickly
reverts to the reality of a slowing world economy. .... Nickel is at
$18,087, down $58. The $17,800 level seems to be next support. (complete
report here)
Commodity/Economic Comments
(Yieh) According to statistics, the inventory of stainless steel in Chinese
Wuxi market in mid-March totaled 212,030 tons, decreasing by 4.6% from a
half month earlier.
India Alters Cr
Ore Export Duty = To 30% of the ore value from the current rate of
Rupee3,000/ton, a big rise based on the prevailing price = The Indian government
announced on March 16 that it altered the export duty of chrome ore to 30%
of the ore value from Rupee3,000 per ton of the ore. -
more
Sumitomo eyes New
Caledonia, Philippines for nickel - Sumitomo Metal Mining Co is looking to
increase nickel supplies from New Caledonia, the Philippines and the Solomon
Islands to make up for a shortage expected to hit Japan once Indonesia bans
unprocessed nickel exports from 2014. -
more
Courtesy AISI - In
the week ending March 24, 2012, domestic raw steel production was 1,947,000
net tons while the capability utilization rate was 78.8 percent. Production
was 1,834,000 tons in the week ending March 24, 2011, while the capability
utilization then was 75.0 percent. The current week production represents
a 6.2 percent increase from the same period in the previous year. Production
for the week ending March 24, 2012 is up 1.8 percent from the previous week
ending March 17, 2012 when production was 1,913,000 tons and the rate of
capability utilization was 77.4 percent.
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China’s Soft Landing Still May
Be Hard for Countries Selling Commodities // Obama Warns North Korea Rocket
Endangers Negotiations // China’s Money Rate Jumps Most in a Month as
Banks Hoard Cash // Merkel Says Germany May Allow European Rescue Funds to
Run Simultaneously // Monti Warns of Spanish Euro Contagion Risk as EU Readies
Stronger Firewall // BOE’s Cohrs Says Bank Risk Culture Needs to Change
for Financial Stability // Greek Bond Traders Overestimate Risk of Second
Restructuring, Cavallo Says // Business Confidence in Germany Unexpectedly
Rises on ECB Stimulus: Economy // European Stocks Gain as German Business
Confidence Unexpectedly Increases //Bernanke Hesitates to Extol Economy Knowing
Consistent Policy Put at Risk // Plosser Says U.S. Economy Doesn’t Need
Additional Stimulus to Fan Recovery // Bernanke Says Accommodative Policy
Is Needed to Reduce U.S. Unemployment // Pending Sales of U.S. Existing Homes
Held Near a Two-Year High in February // Stocks Rise on Euro Bailout Optimism,
Bernanke Speech; Treasuries Retreat
The Euro is now trading over 4/10 of 1% higher against the US Dollar. NYMEX
crude is up slightly and trading at $106.95/barrel. Gold is up 1/35 and silver
is up 1.7%. Base metals ended the session quietly higher for the most part.
Indicator charts show nickel traded around its starting point all day, and
in the end, ended just slightly lower. For the day, Dow Jones reports three
month nickel closed at $8.23./lb. Stockpiles of nickel
stored in LME approved warehouses fell on Friday and now total just shy of
97,700 tonnes. Apparently learning from an earlier mistake, Fed Chairman
Ben Bernanke told the National Association for Business Economics Policy
Conference this morning that the US recovery is far too fragile for the Federal
Reserve to consider dropping its "accommodative monetary policies". To back
this up, he told the audience that the current improvement in the labor market
might not be able to be sustained. The dovish comments by Bernanke hit the
US Dollar, which fell against the Euro, and in turn made base metals more
valuable.
(Dow Jones) Russia's stainless steel products imports in February increased
by 28.47%, compared with February 2011, to 19,476 metric tons, the national
association of special steels producers Spetsstal reported Monday.
Number of the Week: What if Young Adults Don’t Want to Leave Home? -
more
Fed’s Lockhart: Economy Appears to Be Gaining Traction -
more
Facebook says it may sue employers who demand job applicants' passwords -
more
China's moly
export rules expected to stay unchanged in 2012 - China's restrictions on
molybdenum product exports, consisting of an export quota, licensing and
tax, are unlikely to change in 2012, Jia Hongyan, general manager of local
industry publication MolyWorld, said Sunday. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:00 am CST show 3 month nickel trading around $.03/lb
higher, with other
London traded base metals mixed. The Euro is presently trading 2/10 of 1%
lower against the US Dollar. NYMEX crude futures are down 1/10 of 1% and
trading at $106.76/barrel. Gold is down 1/4 of 1% while silver is off 4/10
of 1%. In overnight trading, Asian markets ended lower, while China gained
1/10 of 1%. European markets are trading higher this morning while US futures
show US markets should open higher as well. Nickel stockpiles fell slightly
on Friday.
Reuters morning - Copper dips in cautious trade, China weighs -
more
LME Morning - Metals easier as initial rally falters, sentiment softens -
more
Copper prices rose on Friday, supported mainly by a stronger Euro, which
pushed to a three-week high. COMEX copper volumes remained on the lighter
side, with about 52,000 lots trading, about a quarter below the 30-day average.
However, for the week as a whole, the metals group was lower, unable to shake
off growing concerns about an impending slow-down in China. In this regard,
numbers released last week out of China showed the HSBC flash purchasing
managers index shrinking in March for a fifth successive month to 48.1, with
new orders sinking to a four-month low. Of course, this is the big question
hovering over metals right now, namely just how acute will the looming slowdown
in China be, and will the authorities be able to successfully guide the economy
into a “soft landing”. China optimists argue that the government
has both the fiscal and monetary tools to jump-start growth if needed, but
others counter that these measures will do little to alter expectations that
are now increasingly focused on falling real estate prices just as energy-related
pricing pressures start to impact other sectors of the economy. We are leaning
more towards the second scenario playing out -- it is one thing to ease lending
requirements or “prime the pump”, but quite another to get people
to start spending again, as our own experience here in the US amply demonstrates.
If we are correct in our assessment, we should see more downside pressure
materializing in metals over the next two months, but this will unlikely
take the form of a sharp plunge, but rather of a slow grind lower. ....
Right now, metals are firmer, with copper the best performer in the group
and up more than $100/ton in very quiet trading. Energy prices are slightly
higher as well, building on a solid performance last week after prices moved
up on reports of a noticeable decline in Iranian oil exports in March. ....
Nickel is at $18,225, up $50. Charts look poor, with the short-term downchannel
that first started to take shape in early February still firmly in place.
The $17,800 level seems to be next support (red line). (complete report
here)
Commodity/Economic Comments
(Yieh) It’s reported that the European stainless makers cut the April
alloy surcharges for stainless steel flat products by 6.5% average, due to
declined nickel prices
(Interfax) China's iron ore exchange is expected to open for trading on May
8 after undergoing a test run on March 29, according to Xu Xu, chairman of
Minmetals Group and the China Chamber of Commerce of Metals, Minerals and
Chemicals Importers and Exporters (CCCMC).
China Soft Landing May Be Hard for Commodity Exporters -
more
China Nickel
Market - Weakening = Nickel metal price has been dragging down; ferronickel
price also weakening despite producers' resistance = Reflecting the LME
fluctuations since January, prices of nickel metal and ferronickel in China
went up in steps during January/February, but started decline in March partly
due to the self-adjustment of the market. The resistance of ferronickel producers
to maintain the price does not seem to have been very successful. -
more
Japan's
Sumitomo eyes Philippines for nickel - Sumitomo Metal Mining Co., a major
Japanese nickel producer, is looking to increase nickel supplies from New
Caledonia, the Philippines and the Solomon Islands to make up for a potential
supply shortage after Indonesia implements a ban on exports of unprocessed
nickel from 2014. -
more
Bosowa
secures electricity supply for nickel smelter - PT Bosowa Metal Industri,
a subsidiary of diversified business group Bosowa Corporation, has secured
supplies from state-owned electricity company PT PLN for its nickel smelter
to be built in Jeneponto, South Sulawesi. -
more
Deripaska ready
to buy RUSAL's Norilsk stake-source - Russian tycoon Oleg Deripaska is ready
to buy RUSAL's 25 percent blocking stake in Norilsk Nickel to resolve a
shareholder dispute at the world's largest aluminium producer, a source close
to the RUSAL board said on Monday. -
more
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
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 Banks Said to Underestimate Risk
of Local Government Loan Defaults // Copper Bear Streak Extends as Manufacturing
Shrinks // China’s Stocks Decline, Capping Biggest Weekly Loss in 3
Months on Economy // Bank of Japan’s Stimulus Spat Fueled by Nomination
of BNP’s Kono: Economy // China National Nuclear in Talks With Areva
to Buy Stakes in Uranium Mines // Asian Stocks Post Biggest Weekly Drop This
Year on Global Economic Concern // Putin’s Spending May Cripple Medvedev
as Kudrin Eyes Russian Premiership // French Sentiment Rises as Sarkozy Lifts
Growth Forecast: Economy // European Stocks Are Little Changed; Commodity
Shares Rise, Utilities Fall // Credit Suisse Ends Curb on VIX Note After
Month of Swings Whipsaws Holders // Fed’s Bullard Sees Years of Elevated
Inflation From Mistimed Stimulus Exit // U.S. New-Home Sales Decline for
a Second Month in Uneven Recovery: Economy // Oil Rally Helps Stocks Reverse
Decline as Treasuries Rise for a Fourth Day
The Euro is currently trading over 1/2 of 1% higher against the US Dollar.
NYMEX crude is up 1-1/2% and trading at $106.95/barrel. Gold is up over 1%
while silver is higher by over 1.8%. Base metals ended their week ending
session mostly higher - except for nickel. Indicator charts show nickel
trended lower thru most of the session, and for a change, did not see
a session ending spike. For the day and week, Dow Jones reports three month
nickel closed at $8.24
. Stockpiles
of nickel held in LME licensed warehouses fell slightly overnight and now
totals just under 97,750 tonnes. From a week ago, stockpiles are up 318 tonnes,
but 276 tonnes lower than they were one month ago today. US markets are currently
trading higher on a less than stellar housing report.
Indicators at 6:55 am CST show 3 month nickel trading around $.08/lb
lower, with other
London traded base metals trading higher. The Euro is trading 1/4 of 1% higher
against the US Dollar. NYMEX crude futures are up nearly 1/4 of 1% and trading
at $105.59/barrel. Gold is up 2/10 of 1% while silver is down slightly. In
overnight trading, Asian markets ended lower, with China down 1.2%. European
markets are trading lower this morning, while US futures are lower are well.
Nickel stockpiles fell slightly overnight.
Bloomberg morning - Copper Gains as Recent Drop Seen Excessive Amid Lower
Stockpiles -
more
Reuters morning - Copper up on softer dollar but weekly loss beckons -
more
LME Morning - Base metals bar nickel recoup losses on euro rebound -
more
(Yieh) Reportedly, Indian government announced to change the export duty
rule for chrome ore. The export duty will become 30% of the ore prices instead
of INR3, 000/ton.
(JSC) The stainless steel stocks totaled 165,522 tonnes in Chinese Foshan
market in the first half of March 2012, decreasing by 5.66% from a half month
ago.
(Interfax) China's imports of nickel, lead, zinc and tin all rose in February
on the back of a seasonal recovery in demand following the Chinese New Year
holiday in January, show customs data released Tuesday
Japan 2012/13 steel output seen down 2 pct -industry group -
more
Copper Bear Streak Extends as Manufacturing Shrinks -
more
(China) US probes on Chinese stainless steel sinks -
more
Survey: Optimism Returns to Global Economic Outlook -
more
China mine
hunt turns to Africa, S.America, Asia - Chinese firms are on the prowl for
mining investments in Africa, South America and central Asia as they look
to feed ever expanding domestic demand for key commodities, but are switching
away from Australia and Canada, which are getting too expensive. -
more
Japan Imported
Ferroalloys Market Report; March 16, 2012 = Q2 (April - June) prices of bulk
ferroalloys for EF mills to rise = Market outlook in Japan of the imported
ferroalloys as of March 16, 2012 is as follows: -
more
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
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) AgriBank Posts First Drop in Profit
Since Listing as China’s Economy Slows // China Manufacturing Report
Boosts Case for Easing by Signaling Contraction // Asian Stocks Pare Gains
as China PMI Survey Tempers Surprise Japan Exports // S&P’s Kraemer
Says Italy Risks Are Main Focus for European Policy Makers // European Economy
Gauge Shows Deeper Contraction Than Economists Forecast // European Crops
Damaged by Winter Freeze Now Face Drought // Stocks Drop for Fourth Straight
Day in Europe as Manufacturing Contracts // Days of Big Spending Should End
at Fannie Mae, Freddie Mac, Watchdog Says // Austerity or Stimulus? What
We Need Is Growth // U.S. Leading Indicators Index Climbed More-Than-Forecast
0.7% in February // Stocks in U.S. Decline on Global Economic Concern as
FedEx Shares Retreat
The Euro is trading 3/10 of 1% lower against the US Dollar. NYMEX crude is
down 2.4% and trading at $104.69/barrel. Gold is down nearly 1/2 of 1% while
silver is off 2-1/4%. Base metals ended the session lower as well. Indicator
charts show nickel in a session long downtrend with a near $200/tonne jump
at the end of the session looking the a mere bump in the road, and not a
spike as it has recently. Dow Jones reports three month nickel closed at
$8.37/lb. Stockpiles of nickel
stored in LME approved warehouses fell slightly overnight and now total just
under the 97,800 tonne level. Markets opened to news out of China that
HSBC’s manufacturing purchasing managers’ index for March fell
to 48.1 from 49.6 in February. Any number below 50 signals manufacturing
in contraction. Economic reports out of Europe today have been equally
depressing, showing services and manufacturing output there has fallen more
than economists forecast. US jobless claims fell on a weekly basis, but the
four week average only fell 1,250 to 355,000 claims. Markets around the wrold
were and are sour over the news.
Indicators at 6:55 am CST show 3 month nickel trading around $.12/lb
lower, with other
London traded base metals lower as well. The Euro is trading 7/16 of 1% lower
against the US Dollar. NYMEX crude futures are down 1% and trading at
$106.18/barrel. Gold and silver are both trading around 1% lower. In overnight
trading, Asian markets ended higher, with China over 1/10 of 1% lower. European
markets are trading lower this morning and US futures show Wall Street may
open the morning in a foul mood as well. Nickel stockpiles fell only slightly
on Wednesday.
Reuters morning - Copper falls as China factory data, euro zone PMI weigh
-
more
LME Morning - Base metals easier, hindered by risk-off attitude after poor
global data -
more
Reports
Steel Founders' Society Of America Casteel Reporter -
pdf here
(Yieh) According to statistics, China’s nickel output in February totaled
21,391 tons, down by 2% in comparison of 21,841 tons in January, touching
the lowest level over the past four months.
(YIeh) According to data released by customs, Taiwan imported 83,430 tons
of stainless steel in February, surging by 41% from a month earlier.
(Interfax) China's share of global crude steel output increased to 46.89
percent in February, up from 44.63 percent in January, as production picked
up following the week-long Chinese Lunar New Year holiday, according to data
released Tuesday by the World Steel Association (WSA).
(Australia) Mining boom to shift into overdrive with $60bn export surge -
more
China Manufacturing Contraction May Worsen, Data Show
- more
(China) Domestic consumption takes driver's seat -
more
Chinese traders
reluctant to sell below $14/lb - Chinese traders were reluctant to make spot
sales of molybdenum oxide powder below $14/lb on a CIF/in-warehouse basis
this week, although spot deals have been closing at $13.80-13.90/lb CIF,
sources said Thursday. -
more
China Ferroalloys
February Production Up 21% = From January of low output due to the Holidays
= Reportedly according to the National Bureau of Statistics of China, total
output of ferroalloys in February 2012 was 2.3 million tons, up by some 20%
from 1.9 million ton output in the preceding month. -
more
MSCI: Service
Center Shipments Up Sharply in February - Service center shipments of aluminum
and steel rose sharply in February, compared to the same month in 2011, in
both the United States and Canada, according to the latest Metals Activity
report from the Metals Service Center Institute, Rolling Meadows, Ill -
more
U.S. Steel Industry
Driving the American Manufacturing Renaissance - A recently released study
titled, “Economic Impacts of the American Steel Industry,” conducted
by Dr. Timothy J. Considine, SER Professor of Energy Economics at the University
of Wyoming reveals that the U.S. steel industry is helping lead our
nation’s manufacturing post-recession resurgence by supporting more
than one million U.S. jobs and adding billions of dollars to the economy.
-
more
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China’s Closed-Door Politics Risks
Blindsiding Traders After Bo // U.S. Exempts Japan, 10 EU Nations From Iran
Oil Sanctions // Record Profits at Chinese Banks Set to Be Overshadowed by
Loans Going Bad // China’s Stocks Advance on Pension-Fund Buying
Speculation; Chalco Surges // Outgoing PBOC Adviser Urges More Power for
China’s Central Bank: Economy // U.K. Budget Gap Almost Doubles as Tax
Revenue Declines, Spending Jumps // German Bunds Fall as Greece Wins Bailout
Vote, Traders Prepare for Auction // Icelandic Central Bank Increases Benchmark
Rate to 5% to Contain Inflation // Spain Risking a Default on Debt Now More
Than Ever, Buiter Says: Tom Keene // Most European Stocks Fall on U.S. Data
as Adidas, TeliaSonera Lead Retreat // Buffett Seizes Lead in $1 Million
Bet on Stock Index Beating Hedge Funds // Sales of Previously Owned U.S.
Houses Hold Near a Two-Year High: Economy // Bernanke Says Higher Energy
Prices Constitute a Threat to the U.S. Economy // Stocks in U.S. Little Changed
as Home Sales Report Points to Slow Recovery
The Euro is now trading 2/10 of 1% lower against the US Dollar. NYMEX crude
is up nearly 1% and trading at $107.08/barrel. Gold is down slightly, while
silver is off 1/4 of 1%. Base metals ended the session mostly lower. Indicator
charts show nickel fell early, did little all day until the late session
spike happened. This time the late day jump did not hold. For the day, Dow
Jones reports three month nickel ended the day at
$8.53/lb
. Stockpiles
of nickel rose on Tuesday and now total just shy of 97,850 tonnes. The
International Stainless Steel Forum reported today that stainless steel
production in 2011 grew by 3.3% to a record 32.1 million metric tonnes. This
followed a 25% increase in 2010 and you can find the full report in this
morning's articles below. Base metals markets traded sideways today, following
major equity markets. Federal Reserve Board Chairman Ben Bernanke and Treasury
Secretary Timothy Geithner testified before the House Oversight and Government
Reform Committee and dashed any misbegotten hopes that the European
debt crisis was over. A less than stellar housing report also put US markets
in a weary mood.
The mining
sector is one of Canada's most productive industries and a major contributor
to the country's ongoing economic prosperity. - In 2003, the mining and mineral
processing industries contributed $40.8 billion to the Canadian economy,
an amount equal to 4.0% of the national Gross Domestic Product (GDP) -
more
ENRC eyes fresh
blood for board as costs bite - Kazakh miner ENRC plans to add "fresh blood"
to its board as it seeks to draw a line under governance troubles that have
hit its shares. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:00 am CST show 3 month nickel trading around $.09/lb
lower, with other
London traded base metals mixed and mostly quiet. The Euro is up 1/10 of
1% against the US Dollar at the moment. NYMEX crude futures are over 4/10
of 1% higher and trading at $106.54/barrel. Gold is down nearly 1/10 of 1%
and silver is currently over 1/2 of 1% lower. In overnight trading, Asian
markets ended lower, with China up just over 1/10 of 1%. European markets
are trading flat at the moment, and US futures are slightly higher at the
moment. Nickel stockpiles rose overnight.
LME Morning - Base metals post slight recovery, sentiment still shaky -
more
Ed Meir of INTL
FC Copper prices finished with their sharpest decline in two weeks
yesterday, as the dollar strengthened and concerns about the scale of China's
slowdown exacerbated the selloff. Attention now is focused on just how deep
a slowdown China is going to experience, with the debate centering on whether
this will be a “soft” or “hard” landing. The discussion
prompts us to recall a quote from a business executive who said that in all
his years of seeing business cycles come and go, he never recalled being
in a “soft landing” type of situation. Time will tell what will
happen in China’s case, but we suspect that the slowdown there will
be sharper and last longer than what the consensus view is currently calling
for. Yes, China does have money to throw at the problem or enough in the
way of monetary stimulus to cushion some of the recent deceleration, but
inflation is still a major issue, and as we found out from our experience
here in the US, fiscal and monetary tools can only do so much (or sometimes
nothing at all) to change expectations - the key driver for growth. Having
said that, we find ourselves slightly higher in most markets today. Metals
are enjoying a slight bounce, although all are off their earlier highs. Oil
prices, which lost more than $2/brl yesterday, are up right now, with Brent
at $124.38, while the Euro has bounced back as well, now at $1.3230. US stocks
are called to open slightly higher. ...... Nickel is at $18,850, down $200.
(complete report
here)
Commodity/Economic Comments
(Bloomberg) Nickel Asia Corp., the largest Philippine producer of the metal,
rose 11 percent to 28.30 pesos, the highest close since the stock began trading
in November 2010. The shares climbed on speculation the company will benefit
from Indonesia’s move to implement a ban on nickel-ore sales sooner
than planned to boost output of refined nickel, according to CitisecOnline.com.
“Philippine nickel ore companies will benefit most from this export
ban,” George Ching, analyst at Citisec, said.
(Yieh) Reportedly, the European stainless steelmakers have sought to stabilize
the stainless steel sheet prices, in spite of reduced demand and lower alloy
surcharge for stainless steel products. Traders indicated that the stainless
steel inventory has remained high in European market due to sluggish buying
in the beginning of this year and the April alloy surcharge for stainless
steel products decreased
Murilo Ferreira CEO of Vale SA - "I believe that either this or next year
we'll surpass the largest global [nickel] producer."
(Interfax) U.K.-based Eurasian Natural Resources Corp. Plc (ENRC) has signed
a five-year framework agreement to supply high-carbon ferrochrome to China's
largest stainless steel producer, Shanxi Taigang Stainless Steel Co. Ltd.
(STSS).
PT Aneka Tambang Tbk : Antam's 2011 Audited Net Profit Increases 14.5% To
Rp1.93 Trillion -
more
(China) Business confidence increases, survey says -
more
Stainless
production grows 3.3% in 2011 - The International Stainless Steel Forum (ISSF)
has released preliminary data which indicates that stainless steel production
grew by 3.3% in 2011. -
more
Indonesia's
nickel-ore, bauxite shipments may dive - Nickel-ore and bauxite shipments
from Indonesia, the top supplier to China, may plunge 75 per cent this year
as a ban on metal-ore sales comes into force in May, two years earlier than
scheduled, said an industry group. -
more
Japan Hot-Rolled
SUS January Production Slightly Recovers - According to the data released
by Ministry of Economy, Trade and Industry on March 14, details of the output
of hot-rolled stainless steel during January 2012 were as per the table attached
hereto.
- more
China looks for nickel
assets overseas - CDB International - China is targeting copper, uranium,
iron ore, coking coal and nickel resources overseas, a China Development
Bank International executive said on Wednesday. -
more
Zambales folk
resist mining - Mineral-laden red soil becomes fertile ground to people’s
resistance against destructive mining. -
more
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
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 Increases Fuel Prices for Second
Time in Two Months After Crude Gain // Mercedes Record 25% Discount Leads
Shrinking Luxury Margins in China: Cars // China’s Stocks Drop for First
Time in 3 Days on Fuel Prices, Profit Slump // Thailand May Hold Key Interest
Rate as Asia Gauges Risks from China to Oil // Container-Ship Owners Losing
After $11.4 Billion Battle for Boxes: Freight // U.K. Inflation Slows Less
Than Forecast on Cost of Alcohol, Food: Economy // European Stocks Decline
as BMW, Daimler Retreat on China // Bernanke Stands to Gain Financial Market
Experts in Fed Board Nominees // Mets Owners Settle Madoff Trustee Case for
$162 Million // Fed’s Bond Portfolio Generated $75.4 Billion for U.S.
Treasury Last Year // Stocks Fall With Commodities as China’s Growth
Slows; Treasuries Halt Drop
The Euro is currently trading flat against the US Dollar. NYMEX crude is
down 1-3/4% and trading at $106.21/barrel. Gold is down 2/3 of 1% and silver
is down nearly 2.1%. Base metals ended the session mostly lower... except
nickel. Indictor charts show nickel spent most of the first half of
today's trading in a decline, then stabilized for most of the rest of the
day. That is, until the end, when once again we saw a sudden jump of around
$200 tonne in just a few minutes. For the day, Dow Jones reports three month
nickel closed at $8.64/lb. Stockpiles of nickel
stored in LME approved warehouses fell on Monday and now total just over
97,000 tonnes. Markets appear to be taking some profits today as China raises
it fuel prices for a second time in six weeks and an official with a Chinese
auto group reports the industry will likely miss earlier growth forecasts.
(Dow Jones) Global crude steel production rose 1.9% on year in February,
buoyed by higher output in China which helped more than offset lower steel
output from the European Union.
$5 gas prices would tank consumer: Wilbur Ross -
more
Fannie: Job Market, Income Trends May Help Housing Market Turn Corner -
more
Indicators at 7:00 am CST show 3 month nickel trading around $.09/lb
lower, with other
London traded base metals also trading lower. The Euro is down 3/10 of 1%
against the US Dollar. NYMEX crude futures are down nearly 6/10 of 1% and
trading at $107.47/barrel. Gold is down over 1% and silver is off by 2.2%.
In overnight trading, Asian marekts ended lower, with China off nearly 1-3/4%.
European markets are trading lower this morning and US futures are lower
as well. Nickel stockpiles fell on Monday.
Bloomberg morning - Copper Drops as High Stockpiles in China Signal Weaker
Demand -
more
Reuters morning - Copper falls on China demand concerns, currency -
more
LME Morning - Metals retreat; upside momentum on hold, optimism fades -
more
Metals finished higher in very quiet trading yesterday, as relatively compressed
range-based trading continues to dominate. Volume was light once again, with
a little more than 42,500 lots trading on COMEX, down about 40% from the
30-day average, this according to Reuters estimates. Volatilities have been
dropping as well, something that is particularly evident in the US equity
markets. One market that is experiencing a free-fall of late however, is
the US treasury market, where yields have climbed by a whopping .5% in the
past 10 days alone, as the rally in US equities and evidence of a solid (if
not exactly robust) recovery in the US economy, have both begun to nudge
rates higher. Whatever gains we saw yesterday in metals are being rolled
back today, further evidence of the inconsistent tone that has been in place
for some time now. Copper is now down by more than $170 ton, with the selling
picking up in the last 30 minutes and leading the overall group lower. Energy
prices are off by about $1.50 and the Euro is retreating as well, now trading
at $1.32. US stocks are called to open lower ahead of a sloppier tone in
Asian and European trading. ..... In other news, the Financial Times reported
today that the world of big-bank commodities trading has been "shaken up"
after Barclays Capital suffered one of its worst performances in a decade
last year, apparently hit by a large loss trading copper and aluminum. Goldman
Sachs and Morgan Stanley remain at the top of the rankings, with revenues
of about $2bn and $1.5bn, respectively, while JPMorgan was at $1.3bn-$1.5bn.
Deutsche Bank closed its best year to date in commodities, with revenues
of around $1bn. .... Nickel is at $18,810, down $240. (complete report
here)
Commodity/Economic Comments
(Yieh) According to statistics, the stainless steel stocks totaled 165,522
tons in Chinese Foshan market in the first half of March, decreasing by 5.66%
from a half month ago. Among them, the inventory of cold rolled stainless
steel products totaled 72,165 tons, down by 2.57%; that of hot rolled stainless
steel products amounted 92,357 tons, declining by 7.95%, both compared to
that in a half month earlier.
Growth Momentum
Increases in February - February service center shipments of aluminum and
steel were up sharply from the same month in 2011 in both the U.S. and Canada.
-
more
Nickel-Ore,
Bauxite Exports From Indonesia to Drop on Ban - Nickel-ore and bauxite shipments
from Indonesia, the top supplier to China, may plunge 75 percent this year
as a ban on metal-ore sales comes into force in May, two years earlier than
scheduled, said an industry group.
- more
Australia's
miners sees China iron ore demand flattening - Australian iron ore miners,
key beneficiaries of China's modern-day industrial revolution, on Tuesday
signaled demand growth was finally slowing in response to Beijing's moves
to cool its economy. -
more
Courtesy AISI
- In the week ending March 17, 2012, domestic raw steel production was 1,913,000
net tons while the capability utilization rate was 77.4 percent. Production
was 1,834,000 tons in the week ending March 17, 2011, while the capability
utilization then was 75.0 percent. The current week production represents
a 4.3 percent increase from the same period in the previous year. Production
for the week ending March 17, 2012 is down 2.3 percent from the previous
week ending March 10, 2012 when production was 1,959,000 tons and the rate
of capability utilization was 79.3 percent.
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
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 Soft Landing Seen by IMF’s
Zhu Even as Property Prices Fall: Economy // China’s Stocks Rise to
Highest in Week on IMF’s Outlook for China Economy // RBA’s Stevens
Sees China’s GDP Surpassing Europe, Matching U.S. in Decade // Echo
Boomers in Japan Signal Economic Lift as Homebuying Climbs: Mortgages //
Greek Debt Insurance Allocated Initial 78.25 Cents per Euro Payout Value
// UPS to Acquire TNT Express for $6.8 Billion to Compete With DHL in Europe
// Monti to Meet Italian Labor Unions Amid Warnings of Continued Euro Crisis
// European Stocks Little Changed Near Eight-Month High; Misys Jumps on Deal
// Bernanke Seen Not Knowing Jobless Rate Falling Faster Than Fed Predictions
// Dollar Bulls Beat Bears in Futures for Longest Stretch Since ’99
on Growth // Volatility Falls Most Since FDR as Valuations Sink Like 1995
// Dudley Says U.S. Economy Not Yet ‘Out of the Woods’ From Housing,
Gasoline // Bank of America Tops $10 for First Time Since August After Fed
Stress Test // U.S. Stocks Gain as Apple Rallies on Dividend While Treasuries
Extend Loss
The Euro is now trading over 1/2 of 1% higher against the US Dollar. NYMEX
crude is also up 1/2 of 1% and trading at $107.58/barrel. Gold is up 3/10
of 1% while silver is 1.3% higher. Base metals ended the session mostly higher
as well, helped in part by a strengthening Euro. Indicator charts show nickel
started higher, fell quickly and traded most of the session in a narrow band,
before jumping higher late. For teh day, Dow Jones reports three month nickel
closed at $8.64/lb. Stockpiles of
nickel stored in LME approved warehouses slipped on Friday and now total
just over 97,300 tonnes. Trading for nickel looked somewhat erratic again
today. Industry news was very quiet.
(Dow Jones) Kazakhstan-focused miner Eurasian Natural Resources Corp. PLC
said Monday it has signed a five-year agreement with China's largest stainless
steel producer, Shanxi Taigang Stainless Steel Co. to supply high-carbon
ferrochrome.
Inside the Chinese Boom in Corporate Espionage -
more
Gas Prices: The Kim Kardashian of Inflation -
more
No easy fix
for ferrochrome conundrum - South Africa exported 4.7 million tonnes/year
(Mtpa) of chrome ore last year to China. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 6:55 am CST show 3 month nickel trading around $.02/lb
lower, with other
London traded base metals mostly higher. The Euro is trading over 1/10 of
1% lower against the US Dollar this morning. NYMEX crude futures are up nearly
1/10 of 1% and trading at $107.15/barrel. Gold is down 1/3 of 1% and silver
is off 7/16 of 1%. In overnight trading, Asian markets ended lower, with
China closing up 1/4 of 1%. European marekts are trading lower this morning
and US futures are slightly lower at the moment. Nickel stockpiles fell on
Friday.
Bloomberg morning - Copper Swings Between Gains, Losses on Chinese Housing,
Stocks -
more
Reuters - Copper steady, U.S. recovery offsets China demand woes -
more
It seems we have not missed much while attending the CRU aluminum conference
last week in Miami, as both copper and aluminum have been very quiet over
the past few days. On Friday, copper sold off from an intraday high of $8690
to finish at $8510 on the back of disappointing macro data out of the US.
Ali hardly did any better, closing modestly higher on Friday, but trapped
within a $20 trading range for much of the day. Volumes were light, with
Reuters reporting that copper COMEX turnover was running at about 20% below
the 30-day average. ..... Right now, metals are slightly higher, coming off
a listless open. Energy prices are off by about $.30/brl on Brent, while
the Euro is trading at $1.3160, where it was on Friday. The yen is stronger,
now trading at about 83, and gaining a full cent since Friday. Precious metals
continue to struggle, with both gold and silver just above key support at
$1650 and $32.50, respectively. .... We do not see expect to see metals do
much over the short-term; although the US recovery seems to be on track,
it is showing tentative signs of topping out. More of a concern is the slowdown
in China, which we suspect is actually worse than the official numbers suggest.
This was the feeling we also got from some of the delegates presenting at
the CRU conference last week; although most are projecting Chinese demand
to remain robust in the longer-term, there was little dispute that they current
slowdown is real and likely intensifying, something that does not make the
bullish case for base metals that convincing over the short-term. ..... Nickel
is at $18,850, down $50, and unlike the rest of the metals, is showing signs
of deterioration on the charts. ..... The global nickel market saw a supply
surplus of 7,100 tons in January 2012, the latest monthly bulletin from INSG
showed. A 70,000 ton surplus is expected for 2012, up from a 19,300 surplus
in 2011, INSG said. ..... Domestic nickel premiums in Brazil remain at around
20 and 30 cents per pound, the lowest level since July 2009, as Vale actively
pursues orders after returning to full capacity, this according to AMM.
Plating-grade premiums are also low, between 55 and 75 cents per pound, a
more than two-and-a-half year low. (complete report
here)
Fitch : Commodity price volatility to persist in 2012 -
more
(Yieh) It’s reported that Taiyuan Iron&Steel Group (Tisco), the
largest stainless producer in China announced to cut the export prices of
its 300 grade stainless products by US$100/ton for May delivery in response
to declined nickel prices and sluggish Asian market. -
more
(JSC) According to statistics, in the end of January 2012, Japan's inventory
of stainless steel products amounted to 125,286 tonnes, increasing by 2.1%
MoM.
(Interfax) Nickel has performed poorly so far this year and analysts maintain
a pessimistic outlook on the metal after weak demand and growing stockpiles
continued to put pressure on prices this month.
Madness This Week: Markets Up, Economy Improving, Recession Still Coming
-
more
Elimination
of import duty on Nickel ore is welcome : Ushdev International - In general,
it is a lack-lustre budget. The budget has anyway given some leeway for Dividend
Distribution Tax at one level when the companies have many upstream
companies/holdings and were taxable at every level. -
more
Rusal’s Norilsk
Writedown Underlines Deripaska Board Tension - United Co. Rusal, the
world’s biggest aluminum producer, recognized a $1.4 billion drop in
the book value of its OAO GMK Norilsk Nickel holding, the subject of a boardroom
spat that led to the chairman quitting last week. -
more
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
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) Chinese Companies Forced to Falsify
Economic Data, Statistics Bureau Says // China Adds Treasuries for First
Time Since July Amid European Debt Crisis // China Stocks Rise, Paring Weekly
Loss, as Consumer Companies Extend Rally // India Increases Tax on Gold Imports
for Second Time; Bullion Price Drops // Japan Debt-Financing Concern Clouds
BOJ’s Bond Buying: Economy // Liikanen Signals European Governments
Shouldn’t Expect Further ECB Action // European Stocks Rise for Fourth
Day as Subsea 7, Insurance Companies Climb // Bank Whistle-Blower Wins $18
Million Payday as Part of Foreclosure Deal // Consumer Sentiment in U.S.
Weakens on Increase in Gasoline Prices: Economy // Best Treasury Forecaster
Chris Low Says 10-Year Yield to Drop From Highs // Treasuries Extend Slump
as S&P 500 Index Poised for Its Best Week of Year
The Euro is trading 3/4 of 1% higher against the US Dollar at the moment.
NYMEX crude is over 1% higher and trading at $106.18/barrel. Gold is now
over 1/10 of 1% lower, while silver is down slightly. Base metals ended the
session mostly lower, after a surprising turn south in the US consumer confidence
spooked the market. Indicator charts show nickel was in trouble early, and
even with a higher Euro, slumped throughout today's session. For the day
and week, Dow Jones reports three month nickel closed at
$8.57/lb
, down
a penny for the week. Stockpiles of nickel stored in LME approved warehouses
rose for second consecutive day and now total just over 97,400 tonnes. Two
things in the last two days is pressuring nickel. Yesterday, it was announced
that Ramu nickel had started load commissioning and today, Goro announced
it would produce 20,000 tonnes of nickel this year. This news came as nickel
stockpiles rose for a second consecutive day as well. February ended with
a string of inventory gains that appeared would take totals over the
psychologically important 100,000 tonne mark fairly easily in March, but
since then the last two days of gains were only the second and third gains
posted. Traders are already nervous about what is, or more importantly, what
isn't happening in China. Today's drop in US consumer confidence took the
market by surprise, and sent another ripple of concern thru the market. US
markets have been encouraging the last few months, but we are approaching
the spring period that last year, took a big bite of last year's early economic
brightness. Equity markets remain vary bullish, but guarded.
Indonesia's
New Mining Policy Does Little to Dent Enthusiasm - Global companies led by
Vale and Newmont Mining plan to invest in Indonesia’s mines, undeterred
by a new regulation cutting foreign ownership, as they hunt for resources
in the world’s biggest exporter of tin and thermal coal. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:00 am CST show 3 month nickel trading around $.07/lb
higher, with other
London traded base metals mostly higher. The Euro is trading only slightly
lower against the US Dollar. NYMEX crude futures are up 1/3 of 1% and trading
at $105.50/barrel. Gold is down 2/3 of 1% and silver is 8/10 of 1% lower.
In overnight trading, Asian markets ended lower, with China up nearly 1-1/2%.
European markets are trading higher this morning and US futures show Wall
Street should open higher as well. Nickel stockpiles rose for a second
consecutive day.
Reuters morning - Copper firms on US data; Shanghai stocks weigh -
more
(Yieh) According to statistics, the inventory of stainless steel products
totaled 222,248 tons in Chinese Wuxi market in the first half of March, up
by 2.31% from a half month ago.
(JSC) POSCO announced to remain the March 2012 list prices of its stainless
steel products unchanged due to volatile nickel prices, aiming to activate
the sluggish market demand.
(Interfax) China's steel product output slipped in the first two months this
year as capacity utilization rates among producers remained low and the week-long
Chinese New Year holiday reduced production in January
Australian iron ore ports shut as cyclone threatens coast -
more
(China) Fourth straight monthly fall in FDI -
more
FeCr Price
Twisted Between Europe And China = Price in Europe rose from likely output
cut in South Africa, while price in China softened = The proposal from ESKOM,
a parastatal power company in South Africa, to buy back power allocated to
ferrochrome smelters in order to urgently cope with the expected power shortage
was accepted by, so far, 6 ferrochrome producers out of 8. -
more
New
Caledonia’s Vale poised to launch nickel plant - New Caledonia’s
Vale nickel company says it expects to produce 20,000 tonnes of nickel this
year after retesting its plant in Goro. -
more
Ramu project gets
under way - Australian nickel developer Highlands Pacific on Wednesday announced
that its A$1.5-billion Ramu nickel project in Papua New Guinea had started
load commissioning and was currently treating material through one of three
autoclave circuits. -
more
Nickel
firm accused of land confiscation - A group of eight villagers representing
66 families from Central Halmahera, North Maluku, aired strong protests on
Thursday against foreign mining company PT Weda Bay Nickel, which they accused
of having confiscated 800 hectares of land through mining activities. -
more
Aussie
carbon tax unconstitutional, says mining magnate - The carbon tax circus
is not yet over. Mining magnate Clive Palmer announced he will challenge
Prime Minister Julia Gillard’s carbon tax to High Court saying it is
unconstitutional. -
more
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
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 Data Show Economy Already in
‘Hard Landing,’ JPMorgan’s Mowat Says // China’s Stocks
Decline After Investment Slump Adds to Economic Concerns // China’s
Foreign Direct Investment Falls for Fourth Month as Economy Slows // Global
Food Prices Set to Drop as Demand Growth Slows, United Nations Says // Spanish
Stocks Left Out of Global Rally on Rajoy Budget Deficit Skepticism // Swiss
National Bank Interim Chairman Thomas Jordan
SNB Keeps Franc-Euro Ceiling as Growth Shows Signs of Stabilizing: Economy
// Greek Restructuring Delay Helps European Banks as Risks Shift to Taxpayers
// Norway Invites Krone Speculation Testing Resolve as Rate Cut Shocks Market
// European Stocks Extend Highest Level Since July; H&M, Aixtron Lead
Advance // Treasuries Extend Longest Decline Since 2006 as Stocks Are Little
Changed // Jobless Claims in U.S. Decrease, Matching Four-Year Low // S&P
500 Index Rises Above 1,400 on Economic Data; Treasuries Pare Decline
The Euro continues to trade higher against the US Dollar, now by more than
1/2 of 1%. NYMEX crude futures are down 1/3 of 1% and trading at $105.05/barrel.
Gold is up over 8/10 of 1% and silver is up over 1.4%. Base metals ended
their session mostly higher, getting a boost from the rising Euro. Indicator
charts show nickel was very choppy today, falling early, then making a near
200 point rise and a over 130 point drop in the matter of 2-1/2 hours. For
the day, Dow Jones reports three month nickel closed at
$8.79/lb. For only the second
time this month, stockpiles of nickel rose overnight, and now total just
over 97,150 tonnes. Traders seem to be playing quite the tug of war with
nickel pricing this week, and erratic and large jumps sometimes reflect
desperation on one side or the other. Did not see a report from Ed Meir today
but he has been pretty consistent on a belief nickel was in a downtrend,
irregardless of this weeks increase. We may be seeing the bulls running out
of gas. As far as industry moving news, there really isn't any, nor has there
been any in awhile. Analyst remain split on what the future will be and while
US economic numbers remain strong, a lot of metal traders are far more concerned
about what is happening in the worlds largest consumer of nickel - China.
Some of the news coming out is not positive and a JP Morgan analyst stated
today that he believed China was already suffering from an economic hard
landing. Hopefully he is wrong, because the one thing China can not afford,
is to give millions of its citizens jobs and a taste of the good life, followed
by unemployment and a sense of desperation.
Sacked Ravensthorpe
nickel manager got three months' salary - The general manager sacked by BHP
Billion Nickel West within days of the Ravensthorpe nickel mine being shut
down was offered three months of his annual $288,000 salary, a move his lawyer
told the Supreme Court in Perth yesterday was designed to discourage legal
action. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:00 am CST show 3 month nickel trading around $.13/lb
lower, with other
base metals trading mostly higher. The Euro is currently trading 2/10 of
1% higher against the US Dollar. NYMEX crude futures are up nearly 1/4 of
1% and trading at $105.67/barrel. Gold is up 3/10 of 1% while silver is higher
by nearly 9/10 of 1%. In overnight trading, Asian markets rose, with China
falling 3/4 of 1%. European markets are slightly higher this morning, and
US futures show Wall Street may make it seven straight gaining days. Nickel
stockpiles rose on Wednesday, for the first time in the last ten sessions.
Bloomberg morning - Copper Swings Between Gains, Losses on China, U.S. Demand
-
more
Reuters morning - Copper flatlines; eyes on dollar, China -
more
LME Morning - Metals range narrowly, lack of incentives stifle interest -
more
Reports
SSINA Releases Market Data for December 2011 -
pdf here
(Yieh) It’s reported that China’s export prices of austenitic stainless
steel products have dropped by US$50~US$100/ton in the middle of March, due
to declined nickel prices and sluggish demand.
AK Steel said today that it will increase current spot market base prices
for all carbon flat-rolled steel products by $50 per ton, effective immediately
with new orders. -
more
New Caledonia
Mine Strike Called For Safety Issues - The main union at New Caledonia’s
Societe Le Nickel (SLN) nickel company has issued a strike notice. -
more
Chan says mining
meet an eye-opener - Mining Minister Byron Chan said the mining resource
convention in Toronto last week was an “eye-opener” for him. -
more
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
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) Rusal Declines as Russian Billionaire
Shareholders Clash: Hong Kong Mover // Wen Says Restrictions Still Needed
to Avoid Housing-Market Chaos: Economy // China Stocks Fall Most in Three
Months as Wen Says Housing Curbs to Remain // India Inflation Accelerates
to 6.95%, Reducing Scope for Interest-Rate Cut // Merkel Says Europe Making
Good Progress on Crisis, Not Over Mountain Yet // U.K. Joblessness Rises
More Than Forecast to Belie Recovery Signs: Economy // Italy’s Three-Year
Borrowing Costs Fall to Lowest Since 2010 at Bond Sale // Europe Stocks Climb
a Second Day on U.S. Outlook; Eon Rises, Arkema Slips // Stress Tests Show
How Fed Drove U.S. Banks to Bolster Their Balance Sheets // Bernanke Signals
Easing Still an Option While Upgrading Economic Outlook // Growth in U.S.
Will Strengthen as Jobs Boost Consumer Sentiment: Economy // El-Erian Says
Results of Fed’s Bank Stress Tests Are Good Sign for Economy // Treasuries
Drop on Economic Outlook as Dollar Gains; Stocks Little Changed
The Euro is now trading 1/3 of 1% lower against the US Dollar. NYMEX crude
is down 1/5 of 1% and trading at $106.48/barrel. Gold is down 1.6% while
silver is off 3-1/4%. Base metals ended the session mostly lower. Indicator
charts show nickel traded within a $250/tonne range today, in very choppy
trading. Near the end of the session, nickel bounced nearly $200 tonne within
just a few minutes after hitting a daily low point. For the day, Dow Jones
reports three month nickel ended the session at
$8.88/lb, to claim the sole
gainer for the day. Stockpiles of nickel stored in LME approved warehouses
fell slightly on Tuesday and now totals just under 96,750 tonnes. Nickel
may have gotten a boost from news that miners on New Caledonia are preparing
to strike. Other metals seem to be more concerned with rumors of slowing
production in China.
Vital Signs: Italy’s Falling Borrowing Costs -
more
How the Depression Made Keynesians of Capitalists: Echoes -
more
Outlook
Unclear Amid Risk Appetite Trends - Commodity prices produced mixed results
in the aftermath of yesterday’s FOMC policy announcement. Ben Bernanke
and company upgraded their outlook for the US economy while maintaining a
pledge to keep rates low at least through late 2014. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:00 am CST show 3 month nickel trading around $.03/lb
higher, with other
London traded base metals lower. The Euro is currently trading over 1/10
of 1% lower against the US Dollar. NYMEX crude is down nearly 2/10 of 1%
and trading at $106.52/barrel. Gold is nearly 1.3% lower and silver nearly
1-1/2% lower. In overnight trading, Asian markets ended higher, with China
down over 2.8%. European markets are trading higher this morning, and US
futures show Wall Street should open higher as well. Nickel stockpiles fell
slightly overnight.
Reuters morning - Copper slips on China concerns, stronger dollar -
more
LME Morning - Base metals trade lower on strong dollar and Chinese demand
concerns -
more
Commodity markets diverged yesterday, with base metals and energy moving
higher, while precious metals limped to a modest loss. However, volume was
very light and things only started to move when the Fed policy statement
came out late in the day. .... Overnight, we had reports that the Shanghai
Composite finished 2.6% lower, it sharpest one-day decline in almost 4 months,
led by a sharp selloff in property stocks, this after Premier Wen reiterated
the government's commitment to cool the nation's housing market, and warned
of problems if controls were relaxed prematurely. Although the rhetoric was
not particularly new, it did reinforce perceptions that easier lending conditions
in the red-hot property market were likely not going to materialize anytime
soon. More important as far as base metals are concerned, is what is happening
on the ground, and in particular on the factory floors. In this regard, we
hear from f our sources in China that the largest appliance maker in Guangdong
province is running at 50% of capacity, and reportedly will be laying off
some 32,000 people! Other tube processors we are in touch with report that
demand is off some 40% since Christmas alone. With a backdrop like this,
it is hard to get too excited about copper’s upside prospects, the recent
uptick notwithstanding. We suspect that were it not for consistently eroding
levels of LME stocks, we likely would be much lower in copper, and so the
market is setting itself up for a retracement if in fact the declining trend
in LME inventories is perceived to be ending. Right now, base metals are
lower, losing roughly half of yesterday's gains. In other markets, there
is a sharp selloff going on in the precious metals group, with gold shedding
a whopping $42, and now nearing critical support at $1650. If US growth starts
to falter, the precious metals group will certainly revive as hopes for more
easing emerge, but for the moment, the complex is clearly on the defensive,
as the strengthening US recovery and the surge in the dollar (particularly
against the yen), seems to be throwing the gold bugs off balance. In other
markets, the Euro is weaker right now, trading at $1.3060, while energy prices
are off a touch. US stocks are expected to open mixed. ..... Nickel
is at $19,440, down $10. (complete report
here)
Commodity/Economic Comments
(MNP) The Chinese built $US1.5 billion ($A1.4 billion) Ramu nickel cobalt
mine in Papua New Guinea has started load commissioning with the ramp up
to full production expected to take place in 12 to 18 months.
(Yieh) According to statistics, the US exported 1.422 million tons of scrap
in this January, surging by 16.2% year on year while decreasing by 14.6%
from a month earlier.
(PI) Toledo Mining said today this year's first shipment of nickel from its
Berong mine in the Philippines had departed for China.
(Interfax) China's crude steel production in the first two months this year
saw a double-digit increase from the preceding two months, due largely to
steelmakers delaying output reports from 2011 as they tried to meet emission
reduction targets.
Taiwan fastener exports hit record high in 2011 -
more
Strike threatened
at New Caledonia nickel plant - The main union at New Caledonia’s SLN
nickel company has issued a strike notice. -
more
Fly in, fly out
and hope for work - Tradespeople told unions, employer committed to local
then national hires at Long Harbour -
more
Tough call:
Showcasing high-art stainless steel on its 100th anniversary - The down-to-earth
stainless steel has travelled a long way into its 100th year as an industrial
metal for manufacturing everything from kitchenware to surgical equipment
to aircraft and also serving as a medium for sculpture and niche designs.
-
more
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
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 Money Rate Rises Most in Two
Weeks as Central Bank Boost Repo Sales // Rusal Chairman Quits, Sees ‘Deep
Crisis’ at Deripaska’s Aluminum Producer // China Stocks Gain,
Erasing Losses, on Optimism Over Policy Support Outlook // Australia’s
Weaker Housing, Business Confidence May Slow Hiring: Economy // Japan Sets
up $12 Billion Program for Dollar Loans, Increases Growth Fund // German
Investor Confidence Surges on Signs Debt Is Crisis Easing: Economy // Spain
Faces Call for Deeper Deficit Cuts as Juncker Calls Rajoy Plan Dead // French
Inflation Unexpectedly Declines for Second Month as Economy Slows // Greece
Has Ratings Upgraded by Fitch on Distressed Debt Exchange // Europe Stocks
Gain as German Investor Confidence Rises More Than Forecast // Obama Takes
Aim at China With Plan for WTO Case on Rare-Earth Export Caps // Retail Sales
in U.S. Climb the Most in Five Months Amid Recovery: Economy // Dow Average
Advances to Its Highest Level Since 2007 on Retail Sales Rise
The Euro continues to trade 1/3 of 1% lower against the US Dollar. NYMEX
crude is up 4/10 of 1% and trading at $106.78/barrel. Gold is down 6/10 of
1% while silver is down slightly at the moment. Base metals ended their session
higher. Indicator charts show nickel opened higher, slumped, then rebounded
and gained ground going into its close. For the day, Dow Jones reports three
month nickle closed at $8.82/lb. Stockpiles of nickel
stored in LME approved warehouses fell for the eighth straight session and
now totals 96,750 tonnes. US markets are over triple digit points higher
at the moment.
Small-Business Optimism Hits New Four-Year High -
more
Fed to Release Stress Test Results Thursday Afternoon -
more
Fighting for Answers From China’s Central Banker -
more
Courtesy AISI - In
the week ending March 10, 2012, domestic raw steel production was 1,959,000
net tons while the capability utilization rate was 79.3 percent. Production
was 1,834,000 tons in the week ending March 10, 2011, while the capability
utilization then was 75.0 percent. The current week production represents
a 6.8 percent increase from the same period in the previous year. Production
for the week ending March 10, 2012 is up 0.6 percent from the previous week
ending March 3, 2012 when production was 1,947,000 tons and the rate of
capability utilization was 78.8 percent.
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:00 am CST show 3 month nickel trading around $.09/lb
higher, with other
London traded base metals higher as well. The Euro is trading 1/3 of 1% lower
against the US Dollar. NYMEX crude is 4/10 of 1% and trading at $106.77/barrel.
Gold is down 3/10 of 1% while silver is close to 4/10 of 1% lower. In overnight
trading, Asian marekts ended higher, with China up 1%. European markets are
trading higher this morning, with US futures higher as well. Nickel stockpiles
fell overnight.
Reuters morning - Copper up ahead of Fed meet on macro optimism -
more
LME Morning - Base metals rangebound, FOMC meeting eyed -
more
Reports
U.S. Exports of Stainless Steel Mill Products -
more
Copper fell slightly yesterday, it first decline in four days, as the complex
was pressured by a sharp rise in the dollar and renewed focus on deteriorating
macro readings, particularly out of the emerging market economies. The Chinese
trade figures -- out yesterday -- was the main macro headline that troubled
the markets in this respect, this after the government reported its highest
trade deficit in some 10 years due to a surge in imports. One may ask what
exactly is the problem with this kind of trend, since the Chinese finally
seem to be buying more, just as the West has been asking them to do all along.
We would argue that while the rise in imports is indeed welcome, the export
sector plays a more important role in driving the economy. In this regard,
Chinese local consumption as a percentage of GDP is actually lower now (around
35%) than it was some 10 years ago (about 50%). This is because government
spending has increased its share of the economic pie dramatically, elbowing
out domestic consumption in the process. The contribution of exports to total
GDP, on the other hand, has remained relatively constant over the same period.
Right now, we seem to have snapped back across the board in metals, with
copper once again above the $8500 mark; the rest of the metals do not look
as perky and are up by far more modest amounts. Energy prices are modestly
higher right now, but the Euro continues to struggle, now trading at a shade
above $1.31. US stocks are expected to open higher. .... Finally, it was
reported yesterday that the US scrap recycling industry grew by around 30%
in 2011 from the year before, reaching $100 billion, this according to
preliminary data gathered by the Institute of Scrap Recycling Industries.
The total amount of scrap processed in 2011 included 51.7 million tons of
commodity-grade material that was exported to nearly 160 countries, a 14%
increase from 2010, ISRI said. US scrap exports totaled brought in a record
$39.2 billion last year, up 32% from 2010. China received $11.5 billion worth
of the scrap exports, followed by the European Union at $4.5 billion, Canada
at $3.7 billion, Turkey at $2.4 billion, South Korea at $2.1 billion and
Taiwan $1.9 billion, the data showed. ..... More Chinese stainless steel
mills are deciding to reduce output in March due to the sluggish domestic
market. Baosteel Stainless will cut its crude stainless steel production
by nearly 10% over the month, according to Metal Bulletin sources. In addition,
Tsingshan Group has scheduled a 10-day maintenance stoppage at its plant
in Qingyuan City, Guangdong province which will reduce its production by
one-third or nearly 10,000 tons of its monthly capacity of 25,000-30,000
tons. Xinan Stainless has also chosen to carry out maintenance which will
cut its production by 12,000 tons for the month. ..... Nickel is at $19,395,
up $135, with the downchannel remaining in place. (complete report
here)
Commodity/Economic Comments
(Yieh) Reportedly, the Taiwanese stainless steel market remained sluggish
last week, affected by dropped nickel prices and soft demand.
(Interfax) Baosteel's prices for major steel products will remain unchanged
in April, the leading Chinese steelmaker said Monday, indicating an optimistic
outlook for demand as the peak consumption season arrives.
Zimbabwe: We Declare All Minerals to Govt, Says Zimplats -
more
Rusal Chairman Quits After Disagreement With Board, Clashes With Deripaska
-
more
Miner plans
to boost nickel stake - Western Areas says it plans to spend $1.5 million
to increase its stake in the Forrestainia nickel project -
more
Spot interests
pick up on ferromoly buy tenders - Spot buying interests for molybdenum oxide
powder picked up during Asian trading hours on Tuesday after two steelmakers
issued buy tenders for a total of 150 mt of ferromolybdenum for April, sources
said. -
more
Eskom power
tariff hike cut down - The energy regulator said on Friday it has cut the
increase in electricity rates for power utility Eskom to 16% for the 2012/13
financial year from a previously approved hike of 25.9%. -
more
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
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 Slowdown Bolsters Case for Monetary
Easing as Yuan Slides: Economy // China Yuan Reference Rate Falls Most Since
August 2010 After Trade Deficit // Easiest Credit Worldwide Shows No Signs
of Abating as Fear Index Plummets // Asian Stocks, Commodities Decline on
Chinese Export Slowdown; Yuan Weakens // Euro Weakness Waning as Draghi Cash
Prompts Forecasters to Drop Bear Views // Sovereign Bond Risk Climbs to
Eight-Week High After Greek Swaps Triggered // Greece’s College Students
Fighting Stray Dogs as Austerity Deepens Despair // Monti Targets Italy Labor
Law Revamp as Jobless Youth Join Trapped Firemen // Stocks Fall in Europe
on China Exports Report; Monte Paschi, Temenos Drop // Banks Buying Treasuries
at Seven Times 2011 Pace as Deposits Beat Lending // Outlook for U.S. Consumer
Spending Brightens on Employment Gains: Economy //
At noon CST, the Euro is trading 2/10 of 1% higher against the US Dollar.
NYMEX crude is down over 9/10 of 1% and trading at $106.40/barrel. Gold is
down nearly 9/10 of 1% as well, while silver is off over 2.1%. Base metals
ended the session mixed and for the most part, quietly. Indicator charts
show nickel traded in a V cycle today, lower in the morning, recovering in
the afternoon. For the day, Dow Jones reports three month nickel closed at
$8.74/lb
, down
a penny. Stockpiles of nickel stored in LME approved warehouses fell for
a seventh consecutive sessions and now total just over 96,850 tonnes. For
the next few weeks London markets are trading an hour later than US market
typically see, as US markets saw Daylight Savings Time begin this past weekend,
where London won't change their time until the 25th. traders don't appear
to know how to react to China's release of base metals import/export data
on Sunday. As we stated earlier, January and February numbers are seriously
skewed as the weeklong New Years holiday was held in February of last year,
and January of this year. Thus trying to compare either of these two months
to the same month of last year, is futile. Adding the two together - or waiting
for March, will give us a better idea of what is going on in China. Two reported
developments today that don't quite add up. First Vale announced it would
produce 50,000 more tonnes this year than last, at its Indonesia mine. Then
Societe Generale cautioned that the nickel surplus most everyone expects
this year, may not be as big as some had feared. You can read both stories
below - and pick your won poison. US markets are trading higher today, still
bolstered by last Friday's positive employment numbers. People with jobs
spend money. Neighbors with jobs builds confidence. Neighborhoods with jobs
spread hope. Let's all hope we are seeing the start of a domino effect that
is too strong to be stopped again like last spring.
Jobs Data Improve, but Growth Picture Darkens -
more
One Measure Puts February Job Creation at 879,000 -
more
Crisis, Response, Improvement, Complacency, Repeat -
more
Nickel
supply rise in 2012 to be lower than expected: Societe Generale - The potential
increase in nickel supply for 2012 will be lower than previously forecast,
Societe Generale said Monday. -
more
Minding the
Gaps - The unmistakable slowdown in China’s economy once again prompted
some fairly heavy selling in the commodities’ space overnight and this
morning on the heels of the largest cut in bullish positions by speculators
since the summer of 2008. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:00 am CST show 3 month nickel trading around $.09/lb
lower, with other
London traded base metals mostly lower. The Euro is trading slightly lower
against the US Dollar at the moment. NYMEX crude futures are 1% lower and
trading at $106.29/barrel. Gold is down nearly 9/10 of 1% while silver is
1.3% lower. In overnight trading, Asian markets ended lower, with China off
1/3 of 1%. European markets are trading slightly lower this morning and US
futures are flat. Nickel inventories fell on Friday.
Reuters morning - Copper snaps 3-day rally; China concern weighs -
more
LME Morning - Most base metals drift lower as Chinese demand concerns weigh
-
more
The release of generally mixed Chinese macro data earlier in the day on Friday
did not seem to impress the metals markets and the US nonfarm payroll number
that followed, while very decent, didn’t cause much of a stir either.
In fact, most markets were drifting for much of the day on Friday, and it
was not only until late in the day did an unexpected surge set in, with copper
finishing with one of its largest one-day gain in nearly three weeks. Metals
are slightly lower right now, apparently unimpressed by weekend numbers out
of China showing that February imports of a number of key commodities posted
a surprising rise versus last month. February iron ore imports rose 9.5%
to nearly 65 million tons, a third higher than the month prior, with this
increase likely due to the uptick we saw in Chinese crude steel runs this
past month. Crude oil imports also hit a new record, perhaps on account of
refiners buying more oil than they need given the growing tensions with Iran.
Imports of copper climbed to 484,569 tons, 17% higher than January and also
an impressive advance considering the rise in Shanghai inventories and depressed
physical premiums. One of two explanations lies behind the increase; either
the Chinese are already building up more stocks ahead of the expected seasonal
demand uptick expected over the next two to three months, or higher imports
are being made in an attempt to circumvent tight bank lending requirements.
Another reason the markets are not reacting more positively to the Chinese
commodity import data, is that the overall trade picture looks grim. In this
regard, China's trade balance was $31.5 billion in the red during February,
as exports were off sharply, posting one of their lowest month-on-month growth
rates since the mid 1990s. Import growth, on the other hand, was almost 40%
higher than last year. Having said all this, we may not want to read much
into this month’s data given that the Chinese Lunar New Year holiday
may have skewed the statistics. .... Short-term, we don’t
suspect to see metals doing much over the next few days, as the fact that
we are not building on last Friday’s gains is considered disappointing.
Moreover, most charts suggest that the sideways mode will remain intact for
a little while longer. .... Nickel is at $19,041, down $259, and has crept
back slightly from last week’s lows, but the downchannel still remains
very much in place. (complete report
here)
Commodity/Economic Comments
(Reuters) China's refined copper production rose 1 percent during the shorter
month of February after the Lunar New Year holiday lowered output in January,
reflecting producers' expectations that domestic demand would pick up after
the seasonal slowdown. ..... Weak domestic demand slowed production of nickel
to 21,391 tonnes in February compared with 21,841 tonnes in January and 26,552
tonnes in December.
(ID) Mining firms plan to develop 40 nickel smelters in Sulawesi, Kalimantan
and Maluku in the next one or two years with a total investment of around
$500 million, said Shelby Ihsan Saleh, chairman of the Indonesian Nickel
Association (ANI). He said all smelters would have a total capacity of up
to 10 million tonnes per year. (Investor Daily p.8)
(TA) China's soft landing could have a bruising impact on Australia, bringing
a much sharper fall in bulk commodity prices than anyone is expecting.
US Imports of Stainless Steel Mill Products -
more
Global Mining 2011 Deals Review & 2012 Outlook -
pdf here
Vale Indonesia
to Boost Nickel Output, Undeterred by New Law - PT Vale Indonesia, a unit
of the world’s second-biggest nickel producer, said it plans to boost
output by 64 percent in eight years and won’t be deterred by a new law
that may reduce its hold over domestic mines. -
more
2011
Molybdenum Market Trends and 2012 Market Outlook - The molybdenum market
of 2011 was the very definition of tumultuous, with prices slowly increasing
in the first quarter of 2011 but decreasing for the remainder of the year;
with the average price slightly higher than that of
2010. -
more
Rusal's action
against Norilsk Nickel won't be reconsidered - The Supreme Commercial Court
held against Rusal's appeal to reconsider the Krasnoyarsk Territory Commercial
Court's ruling on a transaction between Norilsk Nickel and the Third Generation
Company of the Wholesale Electricity Market. -
more
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China’s Slowing Inflation, Factory
Output Aids Case for Stimulus: Economy // India’s Central Bank Cuts
Reserve Ratio as Cash Squeeze Threatens Economy // Asian Stocks, Copper Rise
on Greece Debt, Chinese Inflation // Euro Weakens as Stocks Pare Gains After
Debt Swap; Italian Bonds Advance // Greece Pushes Bondholders Into Record
Swap to Forgive $132 Billion of Debt // European Stocks Post Weekly Drop;
Enel, Peugeot, Salzgitter Lead Decline // Rich-Poor Division Widest in
Republican-Leaning States, U.S. Census Shows // Trade Deficit in U.S. Widens
to Largest Since October 2008 on Import Gains // U.S. Payroll Gain Caps Best
Six-Month Job Growth Streak Since ’06: Economy // Stocks Advance With
Dollar as Treasuries Retreat on U.S. Employment Growth
The Euro is now trading nearly 1.2% lower against the US Dollar. NYMEX crude
is up over 8/10 of 1% and trading at $107.48/barrel. Gold is up nearly 8/10
of 1% while silver is up nearly 1-1/2%. Base metals ended their session mostly
higher as well, as the US payroll report trumped a lower Euro in traders
eyes. Indictor charts show nickel was mostly quiet until the US report came
out, and shortly thereafter, the price spiked over $500/tonne. For the day
and week, Dow Jones reports three month nickle closed at
$8.75/lb. Stockpiles of nickel
stored in LME approved warehouses fell for a sixth consecutive session on
Thursday and now total just under 97,150 tonnes. After a +$550 tonne gain
recorded on March 1st, stores have now fallen by nearly 1900 tonnes since.
Considering the beating the Euro took, the nickel chart looked impressive
today, but maybe a little too impressive. China reported their inflation
fell to 3.2% in February, down from 4.5% in January. With trade balance data
from China being released tomorrow, and Greece's sovereign debt rating being
downgraded to restricted default by Fitch Ratings today, traders may
be gambling that China may be forced to add even more stimulus to their economy.
The stainless steel news from China isn't all that inspiring either, as the
Chinese stainless steel index we follow daily, slipped under the 100 point
threshold today for the first time since one day in late January, and mid
December before that. Some of this is being caused by the retreat in nickel
prices, but demand is playing a part. How much is difficult to determine.
(Dow Jones) U.S. nickel imports rose 41.4% in January from last month,
and was up 6.5% from the previous year, the Commerce Department reported
Friday.
(Dow Jones) U.S. nickel exports fell 19.7% in January from the previous month,
and was down 54.2% from the previous year, the Commerce Department reported
Friday.
(SMM) The Baltic Exchange's main sea freight index tracking rates for ships
carrying dry commodities rose for the eleventh straight day on Thursday,
on steady gains for panamaxes due to fresh grain and coal cargoes in the
Atlantic.
Some Problem Banks May Never Exit Federal Bailout -
more
Consumer Most Upbeat Since Fall 2008, RBC Survey Says -
more
Foreclosures will probably rise in 2012 — and that could be a good sign
-
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:00 am CST show 3 month nickel trading around $.05/lb
higher, with other
London traded base metals mixed and mostly quiet. The Euro is trading over
4/10 of 1% lower against the US Dollar. NYMEX crude futures are up 1/4 of
1% and trading at $106.84/barrel. Gold and silver are both trading just slightly
higher at the moment. In overnight trading, Asian markets ended higher, with
China up nearly 1.1%. European markets are trading slightly higher this morning,
and US futures are flat, awaiting a February job numbers report. Nickel
inventories fell on Thursday.
Reuters morning - Copper gains on China easing hopes, Greek bond deal -
more
LME Morning - Base metals cautiously up, market quiet ahead of US jobs data
-
more
Metals finished higher yesterday, although off earlier highs, as a perverse
euphoria of sorts set in, this having to do with the successful culmination
of the Greek bond swap deal. Other markets also pushed up, with good gains
seen in precious metals, the Euro, and US equities. .... In other news, latest
metals production data out of China on Friday showed copper output in February
rising to 437,000 tons, up slightly from 433,000 tons in January. Reuters
reports that copper output should rise in March, although the scale would
depend on scrap supply and prices. We present the data in our report: ....
Nickel is at $18,801, up $1. (complete report
here)
Commodity/Economic Comments
CPM Group forecasts molybdenum to average $15/lb in 2012
(FAN) European stainless steel melt production will remain relatively flat
in 2012, but global stainless output will grow by 6%, according to South
African ferro-chrome producer Merafe Resources.
(FAN) Eskom is turning off energy-thirsty [ferrochrome] smelters as it struggles
to keep the lights on. But the power utility is paying companies handsomely
to shut down smelters for periods of up to three months....
Xstrata's CEO Discusses Preliminary 2011 Earnings and All-Share Merger of
Equals of Glencore International PLC and Xstrata PLC Conference Call Transcript
-
more
(China) China's consumer confidence drops in Feb -
more
(China) China's CPI growth falls to 3.2% in Feb -
more
Indonesia
to renegotiate all mine deals, include divestment - Indonesia's new
rule requiring foreign firms to divest majority ownership of mines applies
to every miner and will form part of a planned renegotiation of all existing
contracts, senior government officials said on Friday. -
more
2011 Mo
Production By 9 Western World Majors Up 6.56% Y-O-Y = Up 7.1% in North America,
and up 6.0% in South America = Total production of molybdenum in concentrates
in 2011 (calendar year) by 9 major miners in the western world, excluding
China, was 287.31 million pounds, up by 6.56% from 296.6 million pounds in
2010. -
more
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
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) Boeing Expects About 200 Orders From
China for 737 MAX Airplane This Year // China’s Output Gains Probably
Neared Two-Year Low in Case for Wen Stimulus // China’s Stocks Advance
for First Time in Four Days Before Economic Data // Asia’s Expansion
Faces Headwinds as Greece Debt Deal Moves Closer: Economy // Asian Stocks,
Commodities Advance on Japan Economy, Greece; Yen Declines // German Industrial
Output Rises More Than Forecast on Construction: Economy // Greece Readies
Record Debt Swap With At Least 60% of Investors Committed // Draghi Lays
Groundwork for ECB Stimulus Exit as Inflation Takes Spotlight // U.S. to
Sell $6 Billion of AIG Shares at $29 Each to Reduce Bailout Stake // Hedge
Funds Poised for 20% Tax Deduction in Republican Small-Business Bill // Initial
Jobless Claims in U.S. Rise to 362,000 as Labor Market Recovering // Stocks
Advance With Commodities Before Greek Debt Swap; Euro Strengthens
The Euro is trading over 8/10 of 15 higher against the US Dollar. NYMEX crude
is up 6/10 of 1% and trading at $106.80/barrel. Gold is up 8/10 of 1% while
silver is 1% higher. Base metals ended their session mostly higher. Except
for nickel. Indicator charts show nickel opened higher early, but spent the
day in a steady decline. For the day Dow Jones reports three month nickel
closed at $8.53/lb
. Stockpiles
of nickel stored in LME approved warehouses fell on Wednesday and now total
just over 97,900 tonnes. Today's nickel trading was ugly, when one considers
the Euro strengthened during the session. Cancelled warrants jumped over
5% yesterday, and remains there today. We still aren't ready to say yesterday
was a dead cat bounce, but it does appear now that Tuesday's $8.50/lb close
may not prove to be the floor we thought it could become. Once the whole
Greece bond swap is over later today, traders will most likely turn their
attention to labor figures coming out of the US tomorrow. Have bulls
established a new floor, or will the bears continue to drag the market lower?
Stay tuned.
Indicators at 6:55 am CST show 3 month nickel trading around $.06/lb
higher, with other
London traded base metals higher as well. The Euro is trading 3/4 of 1% higher
against the US Dollar at the moment. NYMEX crude futures are up 2/3 of 1%
and trading at $106.86/barrel. In overnight trading, Asian markets ended
higher, with China up 1-1/4%. European markets are trading much higher this
morning as the market stops worrying about the Greek debt swap, and US futures
are higher as well. Nickel stockpiles fell for a fifth straight session on
Wednesday.
Reuters morning - Copper rises on Greek deal hopes, weaker dlr -
more
LME Morning - Base metals gain ground; developments in Greece, China, US
in focus -
more
Copper finished slightly higher yesterday, but other metals struggled, with
aluminum being particularly weak. The group is up more impressively today
on growing optimism that a Greek debt-restructuring deal is going to pass.
We are seeing good advances in energy and precious metals as well, and equities
are also trading higher. The Euro is up, now trading at $1.3250, and up more
than a full cent from yesterday’s levels. We wrote in yesterday’s
commentary that the issue with the Greek bond swap was something of a red
herring in that most bond-holders will likely tender their bonds. A few are
holding out, hoping to collect the full amount from credit default swaps,
which, in turn, will be triggered only if collective action clauses are enacted
by the Greeks. However, there is immense pressure on everyone to participate;
funds going it alone have to navigate through potentially unfriendly Greek
courts, not to mention the pariah-like status they will assume if they decide
to stand aside. .... The next key inflection point for the markets
will come tomorrow when weekly US nonfarm payroll numbers are released; a
decent number (expectations are at 220,000) could give commodity complexes
further momentum, while a worse-than-expected figure will generate fears
that the slowdown evident in much of the rest of the world is possibly starting
to spread to the US. .... Nickel is at $19,040, up $140, but the short-term
down channel remains intact. (complete report
here)
Commodity/Economic Comments
(Yieh) According to report, Nippon Steel & Sumikin Stainless (NSSC) said
yesterday and it will increase the domestic prices of austenitic cold rolled
coil (CRC) for March orders by ¥5,000/ton to reflect higher nickel prices.
(Interfax) Fujian Haihe Industry Co. Ltd. plans to bring on-stream the first
phase of a RMB 3 billion ($474.68 million) nickel alloy and stainless steel
project at the end of this month in Fu'an City, Fujian Province, Interfax
learned on Monday.
Indonesia says mine rules not just aimed at Freeport -
more
(China) Consumption 'set for driving role' in growth -
more
Antam
reopens Maniang nickel mine - State-owned mining company PT Antam has reopened
its nickel mine and processing facility on Maniang Island, Southeast Sulawesi,
after substandard ore led the company to halt operations in 2009. -
more
Korean firm opens
second stainless steel plant in Vietnam - The Korean Posco Vietnam Stainless
Steel (Posco VST) company opened its second stainless steel cold rolling
mill on March 7. -
more
Metals plant
coming to Chester - Rolled Alloys, a Michigan-based specialty metals company,
is opening a new plant in Chester. -
more
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China’s Stocks Fall for Third
Day on Concern Over Global Economic Slowdown // World’s Richest Lose
$11.3 Billion as Lakshmi Mittal Falls Out of Top 20 // Australia GDP Grows
at Half the Pace Economists Forecast; Bond Yields Drop // German Factory
Orders Unexpectedly Fall on Slump in Export Demand: Economy // SocGen Joins
UniCredit Among Banks Signing Up to $270 Billion Greek Swap // German Banks
Are Likely to Join Insurers in Taking Part in Greek Debt Swap // Europe Stocks
Advance on U.S. Hiring Report, Greek Debt Swap; Cobham Jumps // Bernanke
Seen Accepting Faster Inflation as Fed Seeks to Boost Employment // Finance
Chiefs See Pickup in U.S. Hiring as Confidence in Economy Improves //
Productivity in U.S. Cools as Labor Costs Jump // Stocks Rise as Treasuries
Retreat on Increase in U.S. Hiring, Greek Swap
The Euro is now trading just over 2/10 of 1% higher against the US Dollar.
NYMEX crude is up 1.1% and trading at $105.87/barrel. Gold is up 1/2 of 1%
and silver is 1.4% higher. Base metals ended the session mixed, mostly higher,
and mostly quiet. Indicator charts show nickel spent the day bouncing within
a $300/tonne range, spiking late. For the day, Dow Jones reports three month
nickel closed at $8.57/lb. Stockpiles of nickel
stored in LME approved warehouses fell for a fourth consecutive day on Tuesday
and now total just over 98,000 tonnes. European and US markets traded, and
are trading higher today, as fears of a Greek default recede. US markets
got an extra bump mid morning after "the Wall Street Journal reported
Federal Reserve officials were considering a new type of bond-buying program
to subdue worries about future inflation". Is this QE3? Will be interesting
to see if nickel prices saw a dead cat bounce today, or if traders have found
a new bottom.
2011
Molybdenum Market Trends and 2012 Market Outlook - The molybdenum market
of 2011 was the very definition of tumultuous, with prices slowly increasing
in the first quarter of 2011 but decreasing for the remainder of the year;
with the average price slightly higher than that of 2010. -
more
Kagara sacks
130 workers - Copper, Zinc, and Nickel producer Kagara says it will cut 130
workers from its permanent workforce in Perth and North Queensland to stay
profitable. -
more
Sacked boss
sues BHP for $2 million - The former manager of BHP Billiton's Ravensthorpe
Nickel West Project is suing the company for $2 million over unfair dismissal
claims. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:00 am CST show 3 month nickel trading unchanged
at the moment, but
has been trading higher most of the morning. Most other London traded base
metals are slightly lower. The Euro is trading up nearly 1/10 of 1% at the
moment. NYMEX crude futures are up almost 4/10 of 1% and trading at
$105.10/barrel. Gold and silver are both trading 3/10 of 1% higher. In overnight
trading, Asian markets ended lower, with China down 7/10 of 1%. European
markets are trading higher this morning, and US futures are higher at the
moment. Nickel stockpiles fell again on Tuesday.
LME Morning - Base metals post modest recovery but market remains cautious
-
more
Markets got crushed yesterday, as a long-overdue round of profit-taking that
first surfaced on Monday in light of Premier Wen Jiabao downgrading China's
2012 growth outlook to 7.5%, picked up steam. By the close of the session,
LME copper was off a stunning $215/ton, dragging the rest of the group down
with it. Precious metals were also off by anywhere between 1.86% (on gold)
to almost 5% (on palladium), with the rest somewhere in between. .... Right
now, metal markets are lower (except for tin and nickel) as an earlier more
broadly based advance faded over the last hour. Precious metals are up, as
is energy, while the Euro is pretty much unchanged on the day, trading at
$1.3120. However, the tone still feels very tentative and we would not be
surprised to see the markets remain on the defensive for the balance of the
week, at least until Friday’s nonfarm payroll number provides more
direction. .... Nickel is at $18,853, up $108; there is not much in terms
of downside support at least until $18,430 (red line). ..... (complete report
here)
Commodity/Economic Comments
(Yieh) Even though the major stainless steel producers in Asia mostly remained
or cut the prices for March, Asian stainless steel buyers have taken wait-and-see
attitude due to volatile nickel prices.
(MF) Japan’s stainless steel exports dip by 14% m-o-m in January
(China) China, US trade imbalance questionable -
more
Rejigged
Ravensthorpe nickel mine set for 33,000-36,000/T yield - Australia's Ravensthorpe
nickel mine, shut down in 2009 because of low metals prices, will yield between
33,000 and 36,000 tonnes of nickel in 2012 after resuming commercial production,
First Quantum Minerals Ltd said on Wednesday. -
more
Indonesia law
to generate more funds from mining sector -min - Indonesia's new mining law
is aimed at generating more funds for government from the mining sector,
the energy and minerals minister said on Wednesday. -
more
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
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info, or become available to subscriber's only. We encourage our readers
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Headlines & leaders - (Bloomberg) China May Expand Property-Tax Trials
Beyond Cities of Shanghai, Chongqing // Australia Holds Key Rate as Shock
Potential From Europe Lingers: Economy // Asia Stocks Drop for Third Day
on Slowing Economy; Copper, Spanish Bonds Fall // Syria’s Assad May
Lose Key Backers as McCain Calls for U.S.-Led Airstrikes // Billionaires
Buying Gasoline Tankers as Fuel Demand Accelerates: Freight // Private Investors
Holding About 20% of Greek Debt to Participate in Swap // U.K. Retail Sales
Decline for Second Month as Demand for Clothing Weakens // Private Investors
Holding About 20% of Greek Debt to Participate in Swap // European Stocks
Decline Most Since November; Banks Retreat With Carmakers // U.S. Insurers
Face $2 Billion in Claims From Tornadoes, Risk Modeler Says // S&P Blocked
by Banks in CMBS Market After Derailed Goldman Deal: Mortgages // FHA Plans
to Lower Mortgage Insurance Premiums for Borrowers Who Refinance // S&P
500 Poised for Worst Drop of Year; Commodities Fall, Treasuries Climb
The Euro is now trading 8/10 of 1% lower against the US Dollar. NYMEX crude
is over 1-3/4% lower and trading at $104.83/barrel. Gold is down 2-1/3% and
silver is off 4.1%. Base metals ended the session lower as well. Indicator
charts show nickel opened lower, and trended lower throughout the session.
A second close below support signals that further weakness is a strong
possibility. For the day, Dow Jones reports three month nickel closed at
$8.50/lb
. It was
a 1.65% drop for nickel but compared to some other base metals, nickel held
its own. Copper was down 2.5%, and aluminum 2.3%. Tin was hit with a 3.2%
drop today. Stockpiles of nickel held in LME approved warehouses fell for
a third consecutive day and now total just over 98,300 tonnes. Metals traders
are still trying to grasp yesterdays surprise announcement that China was
lowering its official growth forecast. These new concerns are compounded
by the nagging European problem, that just won't go away. US markets are
becoming increasingly nervous about fuel price increases, and the impact
they will have on the economic recovery. Based on history, this is a legitimate
concern. Thursday's Greek bond swap and the uncertainty of what might happen
has markets talking about a Greek default again, just weeks after nearly
everyone was convinced the new bail-out would fix that problem - at least
for the time being. Apparently the 'time being' has ended - or at least been
moved to the back burner temporarily. The Dow is presently trading over 200
points lower. Ugly trading day.
As Many as 1 in 5 Consumers Shop at Store, but Buy Online -
more
Economists Expect More Than 200,000 Jobs Created Last Month -
more
The Evolution of Top Incomes in the United States -
pdf
here
Consumer Reports Index: Consumer Sentiment Drops After Three Straight Months
of Improvement -
more
PDAC2012 Coverage by Kitco
China's Economy Should See 'Soft-Landing'; Supportive For Base Metals –
Scotiabank - China's government should be able to engineer a "soft-landing"
for its economy and that should support base metals prices as the country
looks to make its economic growth more sustainable, an economist at a leading
Canadian bank said Monday. -
more
Interview: U.S., Europe Debt Loads More Worrisome Than Chinese Slowdown –
S. Australian Mining Official - China's growth slowdown does not concern
South Australia but the high sovereign debt loads of the European Union and
the U.S. are worrisome and could cause economic problems, an official with
the South Australian government said Monday. -
more
Lower output
weighs on Merafe - Lower attributable production of ferrochrome weighed on
Merafe Resources' earnings for the year ended December 2011. -
more
Russian vote thrusts
tycoon Prokhorov into spotlight - Billionaire Mikhail Prokhorov can claim
a victory of sorts in Russia's presidential election, he may have done enough
to win a permanent role in Russian politics despite finishing third with
less than 8 percent of the vote. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 6:55 am CST show 3 month nickel trading around $.10/lb
lower, with other
London traded base metals mostly lower. The Euro is trading 1/2 of 1% lower
against the US Dollar at the moment. NYMEX crude futures are down 1/2 of
1% and trading at $106.20/barrel. Gold is down 1% and silver is off 1.8%.
In overnight trading, Asian markets ended lower, with China off more than
1-1/2%. European markets are trading sharply lower this morning, and US futures
show Wall Street could open much lower as well. Nickel stockpiles fell on
Monday.
Reuters morning - Copper falls for third day on dollar, China demand -
more
LME Morning - Metals retreat again, downside momentum accelerates as sentiment
sours -
more
Metals lost ground yesterday, never really recovering from the official
pronouncement out of China downgrading the country's growth prospects for
this year. While 7.5% growth is certainly nothing to sneeze at, we did read
an account of the Chinese economy sometime back saying that a minimum growth
rate of at least 8% would be needed in order to generate enough jobs for
the country's booming work force. We have not seen that study resurface in
recent days, so we are not sure if that thesis still applies. Nevertheless,
the problem is that a 7.5% growth rate, low as it is on a relative basis,
is not guaranteed either just because it is targeted; business cycles frequently
take their own course and do not necessarily conform to the path that economists
or Chinese central planners expect them to follow. .... Nickel is at
$18,880, down $195; there is not much in terms of downside support at least
until $18,430. (complete report
here)
Commodity/Economic Comments
(Dow Jones) LME nickel trades at its lowest level since early January, having
fallen through its 100-day moving average amid signs of easing on the global
nickel market, says Commerzbank.
(Yieh) According to Beatrix Nowak, the analyst of Heinz H. Pariser Alloy
Metals & Steel Market Research said in the stainless steel conference
in Moscow, the global stainless steel output is expected to continue to rise
by 6% to reach 36 million tons in 2012, contributed by China and India.
PDAC-Rising
costs expect to support metal prices - Rising costs may prove a blessing,
not a curse, for the global mining industry, threatening fresh supply and
all but assuring that metal prices will keep climbing even as companies scramble
to protect profit margins. -
more
Japan Imported
Ferroalloy Market Report; February 29, 2012 = Indian silico-manganese price
jumped = Market outlook in Japan of the imported ferroalloys as of February
29, 2012 is as follows: -
more
SNC-Lavalin to
manage emission-control project at Vale's Sudbury nickel operation - Construction
and engineering giant SNC-Lavalin Group Inc. (TSX:SNC) has been chosen to
manage a $2-billion environmental upgrade in northern Ontario for Brazilian
mining giant Vale SA. -
more
Courtesy AISI - In
the week ending March 3, 2012, domestic raw steel production was 1,947,000
net tons while the capability utilization rate was 78.8 percent. Production
was 1,803,000 tons in the week ending March 3, 2011, while the capability
utilization then was 75.2 percent. The current week production represents
a 8.0 percent increase from the same period in the previous year. Production
for the week ending March 3, 2012 is up 0.9 percent from the previous week
ending February 25, 2012 when production was 1,930,000 tons and the rate
of capability utilization was 78.1 percent.
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
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 Cuts Growth Target to 7.5% as
Wen Seeks Sustainable Growth: Economy // China’s Second-Richest Man
Says ‘Monopoly’ State Needs More Entrepreneurs // China Auto Sales
Seen to Have Worst Start in Seven Years as Economy Cools // Stocks Drop as
China Seeks Slower Growth; Italian Bonds, Commodities Fall // China Raising
2012 Defense Spending to Cope With Unfriendly ‘Neighborhood’ //
Greek Debt Swap Deadline Will Test Europe Efforts to Close Crisis Chapter
// BlackRock Sees World’s Best Bond Rally at Risk After Orban’s
EU Defiance // Putin Denounces Rivals Who Claim Fraud Helped Him Win Presidential
Polls // European Services Output Declines More Than Initially Estimated:
Economy // Coelho Won’t Follow Spain in Seeking More Room for Portuguese
Deficit Goal // Stocks Drop in Europe as China Cuts Forecast for Growth;
Rio Tinto Falls // Angry Birds Boom Spurs U.S. Employment Revival on Mobile
Software Demand // U.S. Service Industries Unexpectedly Expand to a One-Year
High: Economy // Stocks Cheaper Than Any Peak in 23 Years in U.S. as Puts
Highest Since ’07 // U.S. Stocks Fall on Concern About Slow Growth
The Euro is currently trading 1/4 of 1% higher against the Euro. NYMEX crude
is down slightly and trading at $106.65/barrel. Gold is down over 2/3 of
1% while silver is off 3%. Base metals ended the session lower as well. Indicator
charts show nickel opened lower, and trended lower throughout the session.
For the day, Dow Jones reports three month nickel closed at
$8.64/lb
. Stockpiles
of nickel held in LME approved warehouses fell slightly on Friday and now
total just over 98,600 tonnes. China put world markets on edge early today,
when its leader dropped the country's growth forecast for 2012. MarketWatch
carrying articles titled "China super cycle is over" isn't helping the mood
(article
here). The enthusiasm that started 2011 began to fizzle
in April of that year, and traders have to be questioning whether the positive
economic news coming from the US is the real deal, or another flash in the
pan. The unemployment numbers for February will get a lot of attention
later this week. Nickel fell thru Ed Meir's support line today, and if holds
below it tomorrow, it would signal nickel could see further weakness in the
days ahead.
Fed Shrugged Off Warnings, Let Banks Pay Shareholders Billions -
more
Taiwan Fastener Ind. Sees Exports Hit New High of NT$31B. in Q3, 2011 -
more
PDAC 2012: Nickel
price slide likely to continue, research firm says - The five-year losing
streak for nickel prices is likely to continue for at least one more year,
as several major long-delayed projects come online potentially flooding the
market with excess supply, research firm Wood Mackenzie said at PDAC Monday.
-
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:00 am CST show 3 month nickel trading around $.08/lb
lower, with other
London traded base metals mostly lower as well. The Euro is trading nearly
1/10 of 1% higher against the US Dollar this morning. NYMEX crude futures
are nearly 1/10 of 1% lower and trading at $106.63/barrel. Gold is down 4/10
of 1% and silver is down nearly 9/10 of 1%. In overnight trading, Asian markets
ended lower, with China down nearly 6/10 of 1%. European markets are trading
lower this morning,a dn US futures imply a lower opening for Wall Street
as well. Nickel inventories fell slightly on Friday.
Bloomberg morning - Copper Falls for Second Day as China Lowers Target for
Growth -
more
Reuters morning - Copper falls as China shaves growth forecast -
more
LME Morning - Metals retreat as short-sentiment turns sour, China growth
downgrade weighs
- more
Most metals fell slightly on Friday, pressured by weakness in the Euro and
lackluster showing's in the US equity markets. In addition, copper in particular,
has been looking quite toppy on the charts for much of last week, unable
to decisively punch through to fresh highs. However, what we think is troubling
all the markets right now, is the fact that investors have spent most of
January and February discounting the improving situation in Europe, which
included both the recently concluded Greek debt accords and two rounds of
massive ECB lending programs. However, with both these factors now out of
the way, markets are refocusing their attention to other things, and in this
regard, China is again moving to the front and center. Here, however, the
story is not as bullish. Metals demand in China is decelerating, best evidenced
by the goings-on in the copper market, where Shanghai inventories have been
rising steadily, now at 10 year highs. In addition, physical premiums have
shriveled, with Reuters reporting that cathode premiums are now at +$60 in
bonded warehouse Shanghai, although some traders have put the number as low
as $35 a ton, or even $20/ton. In the meantime, the arbitrage remains locked,
and copper imports are likely going to drop again in February following
January’s dip. ... Right now, metal markets are lower dragged by the
Chinese growth revisions and the soggy numbers out of Europe. The Euro is
off slightly higher, now at $1.3210, but the looming Greek bond decision
could keep the currency somewhat on the defensive at least through to Thursday.
Oil prices are off, but only a tad, as tensions with Iran dominate the headlines.
US stocks are expected to open slightly lower, with Dow futures pointing
to a 48-point opening drop. Precious metals are down as well.... Nickel is
at $19,280, down $195, and remains on the defensive. Nickel has the dubious
distinction of being the worst performing metal so far in 2102. Prices remains
below their 200-day moving average, lending further resistance. - complete
report here
Commodity/Economic Comments
Dacapo Stainless - Price stability in sight -
more
(Yieh) According to statistics, the inventory of stainless steel totaled
217,238 tons in Chinese Wuxi market in the end of February, up by 0.74% from
a half month earlier.
(JMD) LME/ Nickel inventories increase by 20% in 3 months
Tiny "bugs" may bring bonanza to Canadian miner -
more
(RITA) The amount of freight carried by the for-hire transportation industry
rose 3.9 percent in December from November, the largest monthly rise in 17
years, which brought the level of freight shipments to an all-time high,
according to the U.S. Department of Transportation’s Bureau of
Transportation Statistics’ (BTS) Freight Transportation Services Index
(TSI) released today (Table 1).
Job Creation Breaks Even in February, But Hiring Plans Look Grim -
more
Effective with
shipments beginning April 2, 2012, ATI Allegheny Ludlum is increasing prices
for all ATI 300 series cold-rolled sheet and strip products and cold-rolled
tubular-quality sheet and strip products, excluding ATI 301™ stainless.
This price increase is achieved by reducing the functional discount by two
percentage points. In addition, base prices for ATI 316™ stainless and
ATI 316L™ stainless are increasing to $1.98/lb. as shown on the tubular
quality and cold-rolled stainless sheet price schedules ...
World’s 10 Biggest Refined-Nickel Producers in 2011 - Following is a
table of the world’s 10 biggest producers of refined nickel in 2011
by output, compiled by London-based metals consultancy CRU. -
more
Glencore 2011
nickel production 30,000 mt, up 6% - Switzerland-based commodities trader
Glencore has reported a 6% increase in nickel production, the company said
in its 2011 preliminary results Monday. -
more
Glencore sticks
to its guns on Xstrata merger terms - Commodities trader Glencore brushed
aside Xstrata investors asking it to improve an agreed $37 billion bid for
the miner, saying its existing offer was fair to all shareholders and emphasising
its own growth pipeline. -
more
Sherritt pursues
Cuban nickel - Canadian mining company Sherritt International is turning
its attention to expanding its nickel joint venture with the Cuban government
as a $5.5-billion mine in Madagascar nears startup.
- more
Kagara
sells Lounge Lizard for $68m - Kagara has confirmed the sale of its Lounge
Lizard nickel mine 400km east of Perth to Western Areas for $68 million in
cash. -
more
Anti-mining crusade
mushes through Duluth - Frank Moe, a former Minnesota legislator turned courier
with a cause, will leave Duluth today behind a team of panting dogs pulling
for the state Capitol. -
more
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
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 Stocks Rise, Head for Longest
Weekly Winning Streak Since July 2009 // BRIC Investors Losing as State Companies
Forgo Earnings Amid Slower Growth // BOJ Openings Give Noda Chance to Push
Japan Stimulus as Deflation Persists // Asian Job Growth Withstanding Europe
Seen Limiting Policy Easing: Economy // German Bonds Rise on Surprise Drop
in Retail Sales; U.S. Futures, Oil Fall // EU Leaders Declare Crisis Turning
Point as Focus Starts Shifting to Growth // Italian Deficit Narrows More
Than Forecast on Spending Cuts, Tax: Economy // Stocks Rise in Europe as
Benchmark Stoxx 600 Index Wraps Up a Weekly Gain // Buffett’s Insurance
Engine Set to Stall After 45 Years of Berkshire Growth // BofA’s Clash
With Fannie Intensifies as Insurers Reject More Loan Claims // Best U.S.
Wage Gains in Almost Five Years Signal Higher Consumer Spending // Euro Weakens,
German Bunds Advance on Spain Target as S&P 500 Index Drops
The Euro is presently trading 3/4 of 1% lower against the US Dollar. NYMEX
crude is down 2.1% and trading at $106.53/barrel. Gold is down nearly 1/2
of 1% and silver is off 2.2%. Base metals ended their session mostly lower
on the weaker Euro. Indicator chart shows nickel was trading higher for most
of today's trading session but fell below the breakeven point late. For the
day and week, Dow Jones reports three month nickel closed at $8.83/lb
, down a penny on
the day, down $.32 for the week, and $.64/lb lower than a month ago today.
Stockpiles of nickel stored in LME approved warehouses fell on Thursday and
now total just over 98,600 tonnes. Considering the beating the Euro took
today, nickel looked fairly strong. Traders do not like being below the $9/lb
mark so expect to see more attempts next week to recover that level.
Bernanke: Money Market Funds Still at Risk of Runs -
more
Group
slams critics, says mining eases poverty - The Chamber of Mines has debunked
the “disinformation” campaign of anti-mining groups and claimed
large-scale mining companies are in fact helping alleviate poverty in the
countryside. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 6:55 am CST show 3 month nickel trading around $.01/lb
higher, in choppy trading,
with other London traded base metals mixed. The Euro is trading 2/3 of 1%
lower against the US Dollar. NYMEX crude is down nearly 1% and trading at
$107.79/barrel. Gold is down nearly 1/2 of 1% and silver is down 1-2/3%.
In overnight trading, Asian markets ended higher, with China up 1-3/4%. European
markets are trading lower this morning, and US futures imply Wall Street
may open lower as well. Nickel stockpiles fell on Thursday.
Bloomberg morning - Copper steadies, focus on Chinese demand -
more
LME Morning - Metals settle back, seen ranging narrowly in short term -
more
Ed Meir of INTL
FC - Copper prices recovered strongly yesterday, more than recouping
some of the previous day's losses and leading most of the rest of the group
higher. Stability in precious metals and relatively calm conditions in the
European debt markets ushered in the buying. Later in the day, there was
another burst of buying on the back of higher energy prices after reports
surfaced from Iranian media of a large explosion at a Saudi oil pipeline.
The Saudis were slow to respond, contributing to a $5 spike in Brent at one
point, but when they finally did deny the story, prices gave back about one
third of their earlier gains. ... Right now, metal markets are mixed,
having erased earlier losses, but the tone remains tentative. Energy prices
are down by about $1.5, as they continue to roll back some of the Saudi-induced
spike that set in yesterday, while the Euro is struggling, now at $1.32.
Reports out of Germany that retail sales declined 1.6% in January from December
levels may be weighing on the currency, as estimates were calling for a 0.5%
increase. Furthermore, we suspect that it will be harder for the Euro to
rally much beyond the mid $1.30 level –and thus act as a potential source
of support for commodities – especially now as the Greek issue starts
to fade and as investors focus on other potential problem countries, like
Spain and Italy. .... Nickel is at $19,510, up $15, but hovering close to
support at $19,250. Nickel has generally sat out the copper-induced bounce
that has pulled most of the metals higher over the past two weeks. (complete
report here)
Commodity/Economic Comments
(Yieh) According to statistics released by the Stainless Steel Council of
China Special Steel Enterprise Association (CSSC), China’s output of
crude stainless steel totaled 12.591 million tons in 2011, rising by 11.86%
year on year. However, the growth rate of stainless steel output slid obviously
in 2011. It’s known that China’s crude stainless steel output increased
by 27.84% year on year to reach 11.256 million tons in 2010.
Copper Bull Streak Extends to Longest Since October on Demand: Commodities
-
more
S.Korea buys aluminium, lead, nickel; seeks copper -
more
Philippines
miners see red on higher taxes - The Philippines will release this month
a new mining policy that would raise tax revenues and overhaul rules but
which miners said on Friday will drive away investors in the largely untapped
$1 trillion resource base. -
more
(Customs
Statistics) Japan's Imports Of Nickel In January 2012 -
more
Stainless
steel consolidation pushing Aperam to act - Pressure is mounting on Aperam
to restructure or seek a partner, as a proposed tie-up between two rivals,
Outokumpu and Inoxum, could soon make the Luxembourg-based company Europe's
least competitive major stainless steel producer. -
more
Investment
in 4th Kazchrome high-carbon ferrochrome plant to exceed $ 1 bln - Investment
in the fourth high-carbon ferrochrome plant of JSC Transnational Company
Kazchrome will exceed the planned amount of USD 700 million, -
more
Putin’s
Biggest Threat: Billionaire Playboy Mikhail Prokhorov - Playboy billionaire
Mikhail Prokhorov may not win in Sunday’s election, but his threat to
Putin’s power is real and growing. -
more
Morning Nickel
Inventory and Price Statistics & Figures
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here
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, India Manufacturing Gains Show
Asia Maintaining Momentum: Economy // China’s February Home Prices Fall
Most in 19 Months on Curbs, SouFun Says // North Korea Pledges Nuclear-Test
Halt as U.S. Lauds ‘Modest Step’ Forward // China Posts First Annual
Decline in Holdings of U.S. Treasuries on Record // Asian Stocks Enter Bull
Market as Central Banks Pumping Cash Spur Recovery // Euro Finance Ministers
Set to Approve Greek Rescue Plan as Leaders Gather // Europe Factory Report
Shows Region Trailing as Joblessness Rises: Economy // ECB Bolsters Demand
as France Joins Spain Selling $16.7 Billion of Bonds // Swaps Committee Rules
No Greece Credit Event on ECB Debt Swap Agreement // European Stocks Rise
as Spanish, French Borrowing Costs Drop; Veolia Jumps // Bernanke Quells
Talk of Fresh Fed Stimulus to Tackle Elevated Jobless Rate // Manufacturing
in U.S. Unexpectedly Expands at a Slower Pace as Orders Cool // GM Reports
Surprise U.S. Sales Gain as Automakers Beat Monthly Estimates // Stocks Rise
as Treasuries Drop for Third Day; Metals Pace Commodity Gains // Global
Manufacturing Sees Uneven Recovery
The Euro continues to trade lower against the US Dollar, but less than 1/10
of 1%. NYMEX crude is up 9/10 of 1% and trading at $108.03/barrel. Gold is
1/2% higher and silver is trading 1-3/4% higher. Base metals ended the session
mostly higher, bolstered by a China PMI that moved into positive growth territory
in February. Indicator charts show nickel rose sharply at the opening, settled
into a flat trend for much of the day, then fell back at the close. For the
day, Dow Jones reports three month nickel closed at
$8.84/lb
. LME approved
warehouses saw stockpiles of nickel increase on Wednesday and now total over
99,000 tonnes. Nickel rose today primarily on news that the Chinese PMI had
moved into positive growth territory. This number is somewhat skewed from
the fact the Chinese New Year was held in January of this year, and in February
last. March should give us a more reliable number. US manufacturing slipped
a little but remains in a growth mode. Nickel stockpiles are at a six month
high and could roll over the 100,00 tonne level for the first time since
September of last year. The number carries a psychological importance, but
does reflect a growth of 15,870 tonnes from a low in November.
(Dow Jones) The emerging reality of a 2014 Indonesian ore export ban "has
the makings of a game-changing constraint" on the nickel pig iron sector,
says Barclays Capital. The ban, signed into law in February, is slated to
ban the export of unprocessed ores from the country. Since Indonesian ore
supplies 50% of China's nickel pig iron sector, genuine constraints in Indonesia
would significantly impact Chinese stainless steel producers, it says.
Income Revisions Suggest Consumers Have More Cash -
more
Global nickel
surplus may constrain stainless steel pricing - The global stainless steel
market is exhibiting the positive signs that are customary at this time of
year. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 6:55 am CST show 3 month nickel trading around $.24/lb
higher, with other
London traded base metals mostly higher. The Euro is trading around 1/10
of 1% lower against the US Dollar. NYMEX crude futures are currently flat
and trading at $107.07/barrel. Gold is up 1% while silver is 1/4 of 1% higher.
In overnight trading, Asian markets ended lower, with China down slightly.
European markets are trading higher this morning and US futures show Wall
Street should open higher as well. Nickel stockpiles rose on Wednesday.
Reuters morning - Copper up on signs of China economy resilience -
more
LME Morning - Metals rebound after Bernanke-fuelled sell-off, cautious optimism
seen -
more
Copper finished lower for the first time in four days yesterday, as an unexpected
rout in gold and silver unhinged the stronger tone evident early on. In fact,
gold was holding steady for the initial part of the day yesterday, and it
was not until Fed Chairman Ben Bernanke started to speak around mid-morning
that the complex started to reverse course with a vengeance. The sell-off
was exaggerated by technical selling, with COMEX gold seeing a total turnover
of 240,000 lots, on track for one of its busiest sessions in six months.
Moreover, a whopping 30,000 lots of April gold traded in a five-minute span
just before 11 a.m. Silver also got crushed, giving up more than 7% at one
point. .... Thanks to the relatively positive Chinese manufacturing
reading, coupled with a somewhat steadier tone evident in precious metals,
base metals are steady right now, with the exception of zinc, which is slightly
lower on the day. Energy prices are slightly higher, while the euro is steady,
now trading at $1.3320. Short-term, our feeling is that we could start to
move a little higher from here in base metals, as the precious metals sell-off
that triggered a round of weakness in most markets yesterday happened too
quickly and with too little in the way of news to justify the full extent
of the decline. As precious metals begin to recover, we could see some of
the other complexes falling into line as well. .... Nickel is at $19,842,
up $587 and looking a bit perkier today. (complete report
here)
Commodity/Economic Comments
(Interfax) China's Ministry of Industry and Information Technology (MIIT)
released the 12th Five-Year Plan (2010-2015) for industrial energy efficiency
on Wednesday which sets targets for energy-intensive industries including
steel and nonferrous metals.
EU, China Agree on Fastener Tariff Timeline -
more
North American
Stainless will increase the fuel surcharge to 35% for stainless flat and
long products shipping in the month of March 2012. The surcharge rate is
considered a maximum level for March and will be reviewed monthly.
Effective with shipments April 1, 2012; North American Stainless is increasing
prices for all 300 grade cold rolled products, with the exception of 301
grades. The increase will be achieved by reducing the functional discount
by (2) discount points. -
more
Outokumpu
shareholders approve Thyssen deal - Finnish group Outokumpu's shareholders
approved a 2.7 billion euro ($3.6 billion) acquisition of ThyssenKrupp's
stainless steel business on Thursday, a deal aimed at boosting profitability
and fending off Asian rivals. -
more
Negotiations On
Ni-series Cold Stainless Sheets For Asia/Europe = They are installed in a
wait-and-see situation for Asia while in good shape for Europe - Negotiations
on cold-rolled Ni-series stainless steel sheets look more hopeful after a
long interval for the Japanese mills. -
more
Posco
Eyeing New Ventures in Indonesia - South Korea's steel giant Pohang Iron
and Steel Company wants to invest in nickel smelter industry in Indonesia.
-
more
Steelworkers
union says fallen miner warned Vale in email - A report following an eight-month
investigation by Steelworkers Local 6500 alleges nickel mining giant Vale
failed to take all reasonable steps to prevent the deaths of two miners last
June in Sudbury, Ont. -
more
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Daily
Nickel/Stainless Steel Wrap-up
(
Reports
Commodity/Economic Articles and Comments
Austenitic stainless
steel prices reductions are imminent: MEPS - The vagaries of the LME nickel
market have once again exaggerated the stop-start nature of stainless steel
supply chains. -
Norilsk sees average
nickel prices near $20,000/t in 2012 - Global average nickel prices this
year will be slightly less than $20,000 per metric ton, which is almost equal
to the average level for the first quarter, Norilsk Nickel's head of marketing
Viktor Sprogis said at the Reuters Mining and Metals Summit. -
Doomsday Is
the Theme as Nickel Miners Meet in Bali - While students and unions protested
a proposed fuel subsidy cut in the capital and other cities across the country
on Thursday, a small group of nickel miners gathered on Bali to voice their
own concerns. -
Stainless steel
business in Baosteel - Baosteel Co Ltd held the temporary shareholders' meeting
on March 15th, reviewed and passed The Bill on selling the relevant assets
of the Stainless steel bar division. -
Struggling Mirabela
takes hit on nickel price - Mirabela Nickel shares slid to fresh seven-and-a-half
year lows yesterday, with investors waiting for signs the nickel miner's
aggressive cost-cutting plans are bearing fruit. -
Morning Nickel
Inventory and Price Statistics & Figures
. Stockpiles of nickel
stored in LME approved warehouses fell slightly on Wednesday and now total
just over 99,900 tonnes. Keep in mind, this is the lowest nickel has traded
since late November last year, when it bottomed at $7.60/lb on December 1st.
That was the lowest level we had seen nickel trade since December 2009, and
the market only closed under $8/lb for eight sessions before rebounding.
In our opinion, this really shouldn't be happening in March. December, maybe,
but not during spring. Nickel's highest official cash price ever was on May
16th, five years ago, when it hit $24.58/lb. While that was the extreme,
it does reflect the general optimistic nature with which traders typically
greet spring nickel traders. This year, however, world markets are starting
to get the springtime jitters, and nickel prices are getting hit especially
hard. Where this is going is anyone's guess.
Filipino rebels
threaten new attacks on mine firms - Philippine communist guerrillas warned
three mining companies Wednesday that they may be attacked again if they
continue to use methods the rebels say harm the environment. -
Vale construction
drives Long Harbour real estate market - The influx of thousands of workers
helping build Vale’s new nickel processing plant in Long Harbour is
having a big impact on the small town's economy — especially the housing
market. -
Power cuts
threaten SA mining - Electricity supply constraints and the effect of strikes
would erode mining output this year, adding to the factors that would curb
growth in the economy, analysts said on Tuesday. -
with other London
traded base metals mostly lower. The Euro is trading 2/10 of 1% higher against
the US Dollar. NYMEX crude futures are down nearly 9/10 of1% and trading
at $106.41/barrel. Gold is down 1/4 of 1% and silver is off 3/10 of 1%. In
overnight trading, Asian markets ended lower, with China down over 2.8%.
European markets are trading lower this morning, while US futures are higher.
NIckel stockpiles saw a second day of large gains.
Norilsk Challenged
by Ural Mining in Home Region, Interfax Says - OAO Norilsk Nickel, Russia’s
largest mining company, is competing for a license in the Taimyr region,
where it was founded, with billionaire Iskandar Makhmudov’s Ural Mining
& Metallurgical Co., Interfax said. -
Mining boom in Michigan:
economic boost or environmental nuisance? - Demand for metals on the world
market is prompting a mining boom in Michigan's rural Upper Peninsula, where
jobs are scarce. -
India Alters Cr
Ore Export Duty = To 30% of the ore value from the current rate of
Rupee3,000/ton, a big rise based on the prevailing price = The Indian government
announced on March 16 that it altered the export duty of chrome ore to 30%
of the ore value from Rupee3,000 per ton of the ore. -
Sumitomo eyes New
Caledonia, Philippines for nickel - Sumitomo Metal Mining Co is looking to
increase nickel supplies from New Caledonia, the Philippines and the Solomon
Islands to make up for a shortage expected to hit Japan once Indonesia bans
unprocessed nickel exports from 2014. -
ENRC eyes fresh
blood for board as costs bite - Kazakh miner ENRC plans to add "fresh blood"
to its board as it seeks to draw a line under governance troubles that have
hit its shares. -
Stainless
production grows 3.3% in 2011 - The International Stainless Steel Forum (ISSF)
has released preliminary data which indicates that stainless steel production
grew by 3.3% in 2011. -
FeCr Price
Twisted Between Europe And China = Price in Europe rose from likely output
cut in South Africa, while price in China softened = The proposal from ESKOM,
a parastatal power company in South Africa, to buy back power allocated to
ferrochrome smelters in order to urgently cope with the expected power shortage
was accepted by, so far, 6 ferrochrome producers out of 8. -
New
Caledonia’s Vale poised to launch nickel plant - New Caledonia’s
Vale nickel company says it expects to produce 20,000 tonnes of nickel this
year after retesting its plant in Goro. -
Ramu project gets
under way - Australian nickel developer Highlands Pacific on Wednesday announced
that its A$1.5-billion Ramu nickel project in Papua New Guinea had started
load commissioning and was currently treating material through one of three
autoclave circuits. -
Spot interests
pick up on ferromoly buy tenders - Spot buying interests for molybdenum oxide
powder picked up during Asian trading hours on Tuesday after two steelmakers
issued buy tenders for a total of 150 mt of ferromolybdenum for April, sources
said. -
Korean firm opens
second stainless steel plant in Vietnam - The Korean Posco Vietnam Stainless
Steel (Posco VST) company opened its second stainless steel cold rolling
mill on March 7. -
Glencore 2011
nickel production 30,000 mt, up 6% - Switzerland-based commodities trader
Glencore has reported a 6% increase in nickel production, the company said
in its 2011 preliminary results Monday. -
Sherritt pursues
Cuban nickel - Canadian mining company Sherritt International is turning
its attention to expanding its nickel joint venture with the Cuban government
as a $5.5-billion mine in Madagascar nears startup.
-
Outokumpu
shareholders approve Thyssen deal - Finnish group Outokumpu's shareholders
approved a 2.7 billion euro ($3.6 billion) acquisition of ThyssenKrupp's
stainless steel business on Thursday, a deal aimed at boosting profitability
and fending off Asian rivals. -
