Indicator charts show nickel rose early, but as US economic reports began
to be released, it fell, recovering some late. For the day, Dow Jones reports
three month nickel closed at $7.36/lb
. Nickel
stockpiles rose on Wednesday and now total just over the 107,100 tonne level.
(Dow Jones) Russian billionaire Vladimir Potanin, the owner of just below
30% stake in the mining giant OAO Norilsk Nickel, said Thursday he isn't
seeking control of the company.
Indicators at 7:00 am CST show 3 month nickel trading around $.06/lb
higher, with other
London traded base metals mostly higher. Nickel stockpiles rose overnight.
Reuters morning - Copper gains, but on track for third monthly fall -
more
LME Morning - Base metals edge higher, track currency movements -
more
After yesterday’s implosion, markets are breathing a bit easier today,
but we are not seeing any kind of a notable snap-back. Base metals are modestly
higher, as are precious metals and energy, but trading remains extremely
thin as markets wait for US macro numbers out later today and key unemployment
data out tomorrow. Things are slightly better in the European credit markets
today, where the cost of insuring Spanish government debt retreated from
a record high, while the Euro has inched back, reclaiming the $1.24 mark.
Ireland votes on the EU’s austerity package later today and polls show
that supporters of the "Fiscal Stability Treaty" will come out ahead. Moreover,
a Greek poll shows the pro-bailout New Democracy part is edging ahead of
other parties in the upcoming June 17 election. Out of China, stories of
more government spending continue to makes the rounds. The New York Times
reported today that projects worth $150 billion or more are being approved
or fast-tracked, among them hydropower stations, four new airports, and three
renovations or expansions of steel mills. In addition, there are accelerated
approvals for at least two airports and a subway in Nanjing. .....
Heading into Friday, key employment data awaits us out of the US, but we
suspect that the markets obsession will continue to be with Spain. The country
still has the capacity to further undermine sentiment, especially if Spanish
10-year yields approach the 7% mark, at which point the country could conceivably
be frozen out of the credit markets. Moreover, although policy deliberations
must be taking place at the highest levels over what to do, we are concerned
that the scope of the response will be too limited. In fact, one analysis
we came across, reproduced here, makes the case that Spain will likely exit
the Euro before Greece. We’ll see, but certainly, a crowd seems to be
forming at the door. ..... Nickel is at $16,425, up $125; we have taken out
support at $16,500 yesterday and are watching to see whether this will be
confirmed on a two-day closing basis. Despite all the talk about reduced
ore exports coming out of Indonesia, the market does not seem to be too alarmed.
(complete report
here)
Commodity/Economic Comments
(Yieh) It’s reported that Yieh United Steel Corp. (Yusco), one of the
major stainless steel producers in Taiwan announced its price policy for
June on May 30th. The company decided to cut the domestic prices for 300
grade stainless steel products by NT$1,500/ton, considering to current market
situation, in spite of higher input costs.
(Yieh) Reportedly, South Korean Posco Specialty Steel (Posco SS) announced
to cut the domestic prices of its austenitic stainless wire rod and bar for
June contracts in response to lower nickel prices.
(Reuters) South Korea bought 200 tonnes of nickel from Glencore International
AG at a premium of $750 per tonne over London Metal Exchange (LME) prices,
the state-run Public Procurement Service said on its website
Nickel Slump Seen
Ending as China Faces Ore Import Curbs - After slumping more than any other
industrial metal, analysts and traders say the worst may be over for nickel
as restrictions on shipments from Indonesia, the biggest producer, diminish
a worldwide glut. -
more
Japan Nickel Metal
Consumption; Q1-2012 = 10,430 tons, down 10.8% from the same quarter of 2011
= According to the data released by Ministry of Economy, Trade and Industry,
consumption of nickel metal during the Q1 (January - March) of 2012 was as
per the table attached hereto. -
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
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Indicator charts show nickel slid most of the trading session, recovering
a little late. For the day, Dow Jones reports three month nickel closed at
$7.39/lb
. Technical
warning - this is the second close for nickel below a key support level.
Stockpiles of nickel rose sharply on Tuesday and now sit just over the 106,750
tonne level.
Reports
A presentation from Port Jackson Partners on 'The threat rising costs pose
to Australia’s mining boom' -
more
(Dow Jones) State-controlled miner PT Aneka Tambang said in a statement Wednesday
that it has received approval from the government to export 2.275 million
wet metric tons of nickel ore and 50,000 tons of bauxite ore over the next
three months to customers in Japan, Europe and China.
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 6:55 am CST show 3 month nickel trading around $.03/lb
lower, with other
London traded base metals lower as well. Nickel stockpiles rose sharply on
Tuesday.
Reuters morning - Copper falls on weak euro, China stimulus in focus -
more
LME Morning - Base metals sell off, Spanish banking crisis in spotlight -
more
Copper ended with a minimal gain yesterday after giving up a much sharper
advance, while the rest of the group finished mixed. There were more pronounced
reversal in precious metals, with gold losing about $22/ounce by the end
of the COMEX session after being up $13/ounce at one point in the day. US
stocks held on to close higher despite another 10% drop in Facebook shares--
now quickly losing their novelty factor. (Reuters calculates that since its
market debut on May 18, the company has shed approximately $25 billion in
value -- roughly equivalent to the market capitalization of Morgan Stanley).
Given the about-face that took place on Tuesday, it is perhaps no surprise
that the selling has accelerated going into the current session. We are now
sharply lower across the board in practically all markets, except for gold,
which seems to be donning its “safe-haven” mantle today. Copper
got to a low of $7520 at one point earlier, while aluminum has now breached
the $2,000 mark. There are sharp losses evident in lead and zinc as well.
In the energy space, WTI has taken out the $90 mark and we suspect that it
is only a matter of time before Brent similarly takes out the $100 level.
US stocks are expected to open sharply lower, with Dow futures indicating
a 100-point opening decline. ..... We do not see much change in the
negative sentiment in the markets at least until European policy makers band
together and send some reassuring signal to the markets. In the least, we
should see another summit meeting sometime soon, at least at the finance
minister level. In the meantime, there are signs of more aggressive policy
being proposed; the European Commission said today that the proposed European
stabilization fund (incredibly, still not in operation) should be allowed
to lend to banks and not just to governments, a proposition that will likely
rankle the Germans to no end. However, in situations like this where this
is no clear policy direction, it will be market forces that ultimately will
drive the politicians towards consensus, and so in this regard, we could
be heading towards a selling climax which, in turn, could pave the way forward
towards some major policy initiatives. .... Nickel is at $16,380, down $170;
we have taken out support at $16,500 and are watching to see what happens
here on a two-day closing basis. (complete report
here)
Commodity/Economic Comments
(Yieh) According to statistics released by China’s customs, the
country’s exports of stainless steel flat products totaled 128,184 tons
in April, decreasing by 14% from 148,988 tons in a month earlier.
(Yieh) Reportedly, South Korean Posco Specialty Steel (Posco SS) announced
to cut the domestic prices of its austenitic stainless wire rod and bar for
June contracts in response to lower nickel prices.
China Ferroalloy
Exports Up 7%; April 2012 = Exports in a steady recovery to 57,164 tons,
imports sharply dropped to 138,052 tons = According to China's Customs
Statistics, exports and imports of ferroalloys in April 2012 as well as during
the first four months of 2012 were as per the tables attached hereto. -
more
Voestalpine sees
waning demand and steel price wars - Austrian steelmaker Voestalpine said
prospects for a European sector upturn were fading as demand wanes in the
car and energy sectors and excess capacity triggers "destructive price wars".
-
more
Vale looks for
some help - Vale Ltd. is embarking on an aggressive campaign to hire
more than 40 engineers and hundreds of other employees by "selling" the quality
of life in the Nickel City and the opportunities for advancement with the
giant miner. -
more
Courtesy AISI - In
the week ending May 26, 2012, domestic raw steel production was 1,961,000
net tons while the capability utilization rate was 79.4 percent. Production
was 1,778,000 tons in the week ending May 26, 2011, while the capability
utilization then was 72.7 percent. The current week production represents
a 10.3 percent increase from the same period in the previous year. Production
for the week ending May 26, 2012 is down 1.4 percent from the previous week
ending May 19, 2012 when production was 1,976,000 tons and the rate of capability
utilization was 80.0 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
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us
Indicator charts show nickel was doing very little until late in the session
when the Euro began to drop, and then the price of nickel dived. For the
day, Dow Jones reports three month nickel closed at
$7.48/lb, it's first close
below the $7.50/lb level since December 2009. Stockpiles of nickel fell slightly
on Monday and now total just over 106,100 tonnes.
Indicators at 6:55 am CST show 3 month nickel trading unchanged
, with other London
traded base metals mixed. Stockpiles of nickel fell slightly on Monday.
Reuters morning - Copper higher on dollar, Europe worries cap gains -
more
LME Morning - Base metals little changed despite Chinese stimulus speculation
-
more
Reports
ThyssenKrupp Nirosta June Stainless Steel Surcharges -
more
Markets continued to sell off over the course of last week, with copper
approaching a 4-1/2-month trough and not far off the 2012 low of $7445 hit
on January 9th. Other metals were also on the defensive, with aluminum giving
up earlier gains and closing just above the $2000 mark. Precious metals lost
ground as well, as did US equities, but the Euro was the biggest casualty
of the week, collapsing to a two-year low of $1.2496 at one point on Friday.
Most markets stabilized a touch on Monday, but trading was quiet in light
of the US Memorial Day holiday. Right now, markets have opened the new week
in very quiet fashion, with both base and precious metals mixed. The Euro
is not doing much, now trading at $1.2530. US stocks are called to open higher
following a steadier tone in Europe. In the energy markets, the Iranian talks
with the "P5 plus 1” ended inconclusively in Baghdad last week, but
the various sides agree to meet yet again in Moscow in mid-June. This must
be seen as a sign of progress, although markets are not as convinced, with
the recent slide in oil leveling off over the course of the last week. ....
Despite this gloomy backdrop, we think a number of markets could potentially
move higher as we approach the Greek elections on June 17th. We say this
in view of our expectation that the Greek electorate will likely return the
pro-bailout parties to power, giving them enough seats so that they could
form a government without enlisting the help of more left-of center-parties.
Indeed, the latest polls show that the two mainstream parties pulling slightly
ahead in the polls and potentially delivering the outcome investors prefer.
Although a pro-bailout victory will go a long way in reassuring the market
and boost the Euro in the process, the initial gains may prove transitory,
as investors may conclude that returning Greece to the euro fold will only
buy more time for the Europeans to plug the various leaks in the Euro boat.
..... Nickel is at $16,950, down $50 and still looking quite weak on the
charts. ..... China’s 2012 stainless steel demand is expected
to grow at the slowest rate since 2001, the assistant general manager of
Baosteel Stainless tells Bloomberg. (complete report
here)
Commodity/Economic Comments
(Yieh) According to statistics, the inventory of stainless steel totaled
130,008 tons in Chinese Foshan market in the second 10 days of May, increasing
by 5.63% from 10 days earlier.
(TEX) Nippon Steel & Sumikin Stainless Steel and Sumitomo Corp. announced
on 22nd that both companies agreed to establish a joint venture of cold-rolled
stainless steel mill in China together with Sichuan Xinan Stainless Steel
of China. The name of a JV is J S Stainless Steel of which shareholding ratio
is 40% by Xinan, 35% by the Sumitomo Group, and 25% by NSSC.
(ETCN) China imported a total of 714 mt of molybdenum ores and concentrates
in April, down 25.5% year on year, figures released on May 22, 2012 by the
General Administration of Customs showed.
(CT) China imported a total of 714 mt of molybdenum ores and concentrates
in April, down 25.5% year on year, figures released Tuesday by the General
Administration of Customs showed.
(Interfax) Efforts to restructure China's crowded steel industry and ease
a supply deficit in the manufacturing heartland of the south took a step
forward last week after the National Development and Reform Commission (NDRC)
granted long-awaited approvals for two major projects.
The American Forest & Paper Association released its April 2012 U. S.
Containerboard Statistics Report today. Containerboard production lost 1.9%
over the same month last year. Production was down 8% compared to March 2012,
and the month over month average daily production decreased 5%.
Brazil prosecutor
seeks halt of Vale nickel mine - Brazilian federal prosecutors in the country's
state of Para have asked a court to suspend operations at Vale's Onça
Puma nickel project in the Brazilian Amazon, alleging Vale failed to meet
obligations to two native tribes in the region. -
more
World’s
Top Refined Nickel-Producing Countries in 2011 - Following is a table of
the world’s 10 biggest producers of refined nickel in 2011 by country,
compiled by Lisbon-based International Nickel Study Group. -
more
China Cr Ore Imports
Marginally Down - April 2012 = 748,386 tons, down by 1.4% from March; two
major sources South Africa and Turkey both down = According to China's customs
statistics, details of the imports of chrome ore in April 2012 as well as
during the first four months of 2012 were as per the table attached hereto
-
more
Minmetals to
sell nickel mine - Minmetals Resources Ltd, the publicly traded unit of China's
biggest metals trader, is seeking a buyer for the Avebury nickel mine in
Australia, saying it will be better run by another company. -
more
Worldwide
Nickel Output Reached 1.589 Million Tons in 2011 - According to a new research
report published by Reportlinker.com, the global nickel output increased
10% year-on-year (YoY) to 1.589 Mt in 2011 due to the VALE’s Onça
puma and Anglo American’s Barro Alto nickel projects put into production
and an enhanced output of nickel pig iron in China. -
more
Sandvik says
construction weak spot in robust markets - Swedish engineering group Sandvik
said on Tuesday demand was holding up strongly across its businesses in the
second quarter apart from construction where the European market was showing
some impact from the euro zone crisis. -
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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us
Friday, May 25
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:10 am CST show 3 month nickel trading around $.03/lb
lower, with other
London traded base metals mixed and mostly quiet. Stockpiles fell on Thursday
and now total just over 105,150 tonnes.
This is our final report for the week and since Monday is a national holiday
in the US, our next report will be next Tuesday. Have a safe and relaxing
weekend.
Reuters morning - Copper up on euro rebound; seasonal slowdown eyed -
more
LME Morning - Base metals trade sideways, some bargain hunting expected -
more
(Yieh) According to report, the European alloy surcharge for austenitic grade
will increase a slightly in June, after continuous declines in the past few
months.
(Interfax) China's imports of nickel ore and concentrate increased for a
third month in April as smelters stepped up purchases ahead of new export
taxes in Indonesia, China's largest supplier.
Think commodity fundamentals look grim? Check out the charts -
more
Analysis: Deeper metals price falls needed to spark closures -
more
Pacific Metals to
Increase Ferro-nickel Output by 21% This Year - Pacific Metals Co., Japan’s
largest ferro-nickel producer, said it plans to increase output by 21 percent
this year after an earthquake and tsunami disrupted production in 2011.-
more
China Molybdenum
Q1-2012 Trade Balance; Export Surplus = Exports 5.2 million pounds; Imports
3.6 million pounds = Imports of molybdenum during the Q1 (January - March)
of 2012 were 3.63 million pounds, while exports were 5.20 million pounds
in a continued export-surplus trend from the preceding year. -
more
UMMC obtained control
of the nickel deposit in the Voronezh Region - The Ural Mining and Metallurgical
Company obtained control of the copper-and-nickel deposits - Yelanskoye and
Yelkinskoye. -
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
Indicator charts show nickel opened higher and trended higher thru most of
the day. For the day, Dow Jones reports three month nickel closed at
$7.76/lb. Stockpiles of nickel
rose on Wednesday and now total just over 105,500 tonnes.
Indicators at 7:30 am CST show 3 month nickel trading around $.10/lb
higher, with other
London traded base metals trading higher as well. Nickel stockpiles rose
overnight
Bloomberg morning - Copper Rises on China Demand Speculation, Producers’
Struggles -
more
Reuters morning - Copper up from 4-1/2 month low, EU data weighs -
more
LME Morning - Most metals edge higher, investors remain jittery -
more
(Interfax) Leading Japanese steelmakers Nippon Steel & Sumikin Stainless
Steel (NSSC) and Sumitomo Corp. have agreed to form a joint venture (JV)
with Sichuan Southwest Stainless Steel to produce cold-rolled stainless steel,
Japanese newspaper Nihon Keizai Shimbun reported Wednesday.
(Reuters) South Korea bought 500 tonnes of aluminium from LG International
Corp at $188 per tonne over London Metal Exchange (LME) on a cost, insurance
and freight (CIF) basis, the state-run Public Procurement Service said.
(PR) Search Minerals Inc., is pleased to announce that the Company and PT
ANTAM Tbk have signed a Heads of Agreement to cooperate in developing a Starved
Acid Leach Technology plant to apply the Company's SALT technology in processing
low grade saprolite nickel ore from ANTAM's mining permits in one or more
of Halmahera, Pomalaa or other mining projects located within Indonesia.
Subject to satisfactory results of the parties respective due diligence and
evaluation, Search will design, construct and operate the plant in Indonesia
and ANTAM will commit to a long term ore supply capable of supporting a 30
year mine plan for each Indonesian project that ANTAM and the Company mutually
agree on for the implementation of SALT, once proven. Subject to studies,
the initial supply is anticipated to be approximately 2 million dry tonnes
of ore per year.
Norilsk suspends
Arctic shipments for seasonal halt - Russian metals giant Norilsk Nickel
suspended shipments from its Arctic port of Dudinka a few days ago as flooding
prompted a seasonal halt. -
more
Norilsk to Buy
Vietnam Nickel Deposit Operator for $22 Mln - Russia's largest nickel maker,
Norilsk Nickel, plans to acquire Asian Mineral Resources (AMR) Limited, which
is developing the Ban Phuc nickel deposit in Vietnam, for $22 million, the
company said on Thursday. -
more
Indonesia to
regularly review base price for mineral export duties - Indonesia will review
mineral base export prices every three months to calculate duties on ores
subject to new export regulations, the director general of foreign trade
said on Thursday. -
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
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Indicator charts show nickel opened lower but was gaining ground until US
markets opened lower, which drove nickel lower. Dow Jones reports three month
nickel closed at $7.60/lb. Stockpiles of nickel
stored in LME approved warehouses fell on Tuesday and now totals just over
105,150 tonnes.
Indicators at 6:50 am CST show 3 month nickel trading around $.01/lb
lower, with other
London traded base metals lower as well, some down over 1-1/2% at the moment.
Nickel stockpiles fell on Tuesday.
Bloomberg morning - Copper Slumps as Euro-Area Crisis May Threaten Chinese
Growth -
more
Reuters morning - Copper drops to 4-1/2 month low on debt crisis fears -
more
LME Morning - Base metals slump as investors dump risky assets, euro drops
to 21-mth low -
more
Call it a palpable lack of conviction--that seems to be an accurate description
of what seems to be ailing the markets these days, as there simply are too
many short-term imponderables preventing investors from taking a decisive
view in any one of the complexes. We are seeing this play out in today’s
session, where after several days of relatively modest gains in a number
of markets, prices are being rolled back quite significantly. In the case
of base metals, there are sharp losses across the board led mainly by copper.
There is also a sizable retreat in precious metals, along with a more modest
setback in energy prices. Equities are down as well in Europe and Asia, with
technology stocks likely to come under pressure today when the US markets
open in the aftermath of a weak earnings reports coming out of Dell. Mining
stocks are also on the defensive. In the European credit markets, German
yield continue to plunge to record lows, although we are not seeing any kind
of notable spike in Spanish rates. ... Given this gloomy backdrop, we expect
that markets will continue to be on the defensive for much of this week,
at least until we see more specifics coming out from the EU policy meeting.
We also should be watching the energy markets closely, as the “P5+1”
talks get underway in Baghdad this week. If there is progress made, we think
oil prices will have another sharp break lower, ultimately a bullish proposition
for global economies. More importantly, a decline in energy prices, coupled
with a Greek vote that returns a pro-Euro government to power, could combine
to provide a sizable upside boost to the markets by late next month. Sadly
for the bulls, we are not there just yet. (complete report
here) Ed is traveling
the holiday weekend and next report will be filed next Tuesday.
Commodity/Economic Comments
US Imports of Stainless Steel Mill Products -
more
(FAN) It is learnt that current stainless steel prices are lower than production
costs, individual stainless steel producers have expressed to reduce the
outputs and control market supply....
(MB) Chinese nickel pig iron producers may significantly cut production from
June on persistently weak demand from the stainless steel sector and expectations
that nickel prices will slide further, market participants told Metal Bulletin.
(SBB) Chinese nickel pig iron producers have started trimming output but
the cuts are not sufficient to boost nickel prices in the near-term, said
Macquarie Commodities....
Mining Slump Feeds M&A as Projects Overrun Budgets: Commodities -
more
POSCO to up
resources self-sufficiency - POSCO, the world’s third largest steelmaker,
plans to raise its self-sufficiency ratio for iron ore, coal, nickel and
other minerals to 50 percent by 2014 through investments in more overseas
mines. -
more
Talvivaara birds
died of poisoning - A number of birds found dead in a process liquid pool
at the Talvivaara mine in Sotkamo were found to contain abnormally large
amounts of nickel, manganese, zing, and iron. -
more
Environmentalists
Launch Campaign Against Mining - Environmental groups are launching a campaign
ahead of the summer vacation season against plans for copper, nickel and
precious metals mining in northeastern Minnesota. -
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
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us
Indicator charts show nickel traded mostly lower until it made an attempt
to get into the black, which caused the price to collapse late. For the day,
Dow Jones reports three month nickel closed at
$7.67/lb. Stockpiles of nickel
stored in LME licensed warehouses fell on Monday, and now totals just over
105,700 tonnes.
Mergers: Commission
opens in-depth investigation into proposed acquisition of Inoxum by Outokumpu
in stainless steel sector - The European Commission has opened an in-depth
investigation under the EU Merger Regulation into the proposed acquisition
of Inoxum, the stainless steel division of ThyssenKrupp of Germany by the
Finnish stainless steel company Outokumpu. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 6:55 am CST show 3 month nickel trading around $.06/lb
lower, with other
London traded base metals quietly mixed. Stockpiles fell overnight.
Reuters morning - Copper falls as dollar firms, debt crisis weighs -
more
Metal prices finished mixed on Monday, with copper and nickel closing with
a good gain, but ali and lead both lost substantial ground. A statement out
over the weekend by the Chinese premier calling for extra measures to boost
growth helped stabilize the complex and there are reports out today that
a number of infrastructure projects will now be fast-tracked. Trading remained
on the light side on Monday, with COMEX copper volumes still running at about
a third below the 30-day average. Other markets were generally higher, with
good gains seen in energy, platinum, and palladium, although both gold and
silver lost ground. Right now, we are seeing a slightly lower tone in most
markets, as earlier gains have dissipated. Base metals are lower, as is the
precious metals group. Energy prices are also down slightly on reports that
the U.N. nuclear watchdog chief said he expected to sign a deal with Iran
soon to allow inspectors to resume work on the country’s nuclear program.
The agreement comes on the eve of a Baghdad meeting with the Iranians and
could lay the ground-work for a critical week in the oil markets. .....
We suspect the markets will be in wait and see mode for the next day or two,
as investors seek to assess what policy measures the Europeans will come
up between now and the Greek elections. We are reading that the French are
planning to push hard for a Euro-bond proposal at the next mini-summit leadership
meeting that starts tomorrow. The idea would involve “mutualizing”
European debt by replacing or guaranteeing various local bonds with a
pan-regional issue. The French apparently have the support of the Italy and
Spain, as well as the European Commission, but Germany opposes the idea (along
with Netherlands and Finland) on grounds that there first needs to be better
coordination in terms of fiscal policies between countries so as not to imperil
the fiscal health of the region. .... Nickel is at $17,050, down $135 and
still looking quite weak on the charts despite a decent move higher yesterday.
(complete report
here)
Commodity/Economic Comments
(Dow Jones) The first nickel-cobalt produced from the Ramu mine in Papua
New Guinea will be shipped to China within the next two months, a senior
executive from one of the project's stakeholders said Tuesday.
(Yieh) According to statistics, the inventory of stainless steel totaled
123,082 tons in the Chinese Foshan market in the first 10 days of May, soaring
by 7.06% from 10 days earlier.
(Interfax) China's share of global steel production increased in April on
the back of record daily output during the month amid higher steel prices
and seasonal demand.
Neutral conditions persist in the tropical Pacific
- more
Global, China steel
output growth sluggish - Global and Chinese crude steel production growth
was sluggish in April as steelmakers adjusted their output to weaker demand
and falling prices in what should be the most active period of the year,
data from an industry body showed. -
more
New evidence of
eco-damage from Ramu nickel mine - The controversial Ramu nickel mine near
Madang in Papua New Guinea has come under fire for new claims of environmental
damage. -
more
Courtesy AISI - In
the week ending May 19, 2012, domestic raw steel production was 1,976,000
net tons while the capability utilization rate was 80.0 percent. Production
was 1,778,000 tons in the week ending May 19, 2011, while the capability
utilization then was 72.7 percent. The current week production represents
a 11.1 percent increase from the same period in the previous year. Production
for the week ending May 19, 2012 is down 1.4 percent from the previous week
ending May 12, 2012 when production was 2,005,000 tons and the rate of capability
utilization was 81.1 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
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Indicator chart show nickel opening higher early, rising then falling back
before spiking late. For the day, Dow Jones reports three month nickel closed
at $7.80/lb
. Stockpiles
of nickel stored in LME approved warehouses slipped on Friday and now total
just under 17,200 tonnes.
Competing for
Nickel in Sulawesi - :Environmental damage in the waters off mining areas
has been identified in areas of Sulawesi. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 6:55 am CST show 3 month nickel trading around $.04/lb
higher, with other
London traded base metals mixed. Stockpiles fell slightly on Friday.
Bloomberg morning - Copper Climbs for Second Day as China Pledges to Boost
Growth -
more
Reuters morning - Copper up but Greek contagion fears weigh -
more
LME Morning - Base metals drop back, confidence wanes -
more
Copper finished slightly higher on Friday, but had a dismal week overall,
losing about 4.5% of its value over the period. The rest of the metals were
mixed, with ali, lead, and tin all up on the day, while nickel and lead continued
to lose ground. All six metals, however, (with the exception of ali) finished
the week lower. Other markets were all over the place on Friday; the dollar
lost ground against the Euro, selling off to $1.2780 at one point, and helped
gold achieve its best two-day gain since October. Silver also impressed,
actually outpacing gold on a percentage basis, but the bounces in both palladium
and platinum were far more restrained. ..... We are off to a quiet
start to the new week, with copper up about $70/ton on the day, but the rest
of the metals are mixed, with ali and tin lower. Brent is higher by about
$.70 a barrel, but the markets will likely not do much until there is more
clarity on the Iranian meeting later this week. The dollar is unchanged against
the Euro, now trading at $1.2760, while precious metals are modestly lower.
Chinese stocks finished higher after Premier Wen Jiabao said focus would
now be on bolstering growth. US stocks are expected to open higher, with
the Dow called to open up 80 points. ...... What is more worrisome is the
problem of bank runs we have been seeing take place in varying degrees over
the last few weeks across Europe. Earlier this month, we had bank withdrawals
in the aftermath of the Greek elections, and shortly thereafter, there were
rumors of money leaving the partially nationalized Spanish bank Bankia.
Meanwhile, it seems that British customers withdrew about £200 million
from the U.K. arm of Banco Santander on Friday following a downgrade of the
bank's credit rating. Those that who have not pulled their money could do
so at a moment’s notice; the Wall Street Journal reports today that
30% of Spain’s household and commercial deposits are held on an overnight
basis, while in Italy, about 48% of domestic deposits can be withdrawn quickly,
as can 21% of the deposits in Portugal; this illustrates the danger of pushing
the Greeks out of the Euro without the proper contingency plans being put
in place. We suspect that the largely mixed tone we are seeing right now
could turn to be more sellerish as the day wears on as the European problems
cannot be papered over by well-intentioned communiques. Moreover, given that
the G-8’s “wish-list” was not backed up any explicit policy
prescriptions or financial commitments, investors will realized that they
are basically “on their own” until the Greek elections take place
on June 17th. Prior to that date, it is also quite possible that we could
see the crisis escalate to such a degree that it will force a more explicit
policy response. Either way, we should expect to see more uncertainty and
volatility in the weeks ahead, hardly a bullish backdrop for most markets.
...... Nickel is at $16,850, up $25 and still looking quite weak on the charts,
with prices not far off key support at $16,500. (complete report
here)
Commodity/Economic Comments
(Dow Jones) Global crude steel production rose 1.2% on the year in April,
buoyed by higher output from Asia and North America, which more than offset
declines in the European Union, South America, and the Commonwealth of
Independent States, figures from the World Steel Association showed Monday.
(Yieh) According to the statistics, Japanese stainless steel output totaled
244,792 tons in March, up by 1.6% from a month earlier.
SMM Weekly Forecast on China Nickel Metal Market -
more
The Economy Grows Under The Shadow Of Recession -
more
Chinese Iron Ore
Buyers Defer Imports Cargoes, Mirae Says - Iron ore and coking coal buyers
in China are seeking to defer importing cargoes as domestic steel mills reduced
output amid lower prices, according to Mirae Asset Securities Co. -
more
Chinese buyers default on coal, iron ore shipments-trade - Chinese buyers
are deferring delivery or have defaulted on coal and iron ore deliveries
following a drop in prices, traders said, providing more evidence that a
slowdown in the world's second-largest economy is hitting its appetite for
commodities. -
more
Japan Imported
Ferroalloy Market Report - May 15, 2012 = Mn-group ferroalloy market is tested
by low ore output and ore price rises = Market outlook of the imported
ferroalloys in Japan as of May 15, 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
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us
Indicator charts show nickel opened lower but was able to crawl back slightly
into profitability, until the end of the session, when it collapsed. Dow
Jones reports three month nickel closed at a new low for the year,
$7.62/lb
. That
is a $.18/lb drop on the day and week, and $.38/lb drop from one month ago.
Last year on this date, nickel closed at $11.18/lb. Stockpiles rose overnight
nd now sit just shy of 106,200 tonnes.
China: Does 8% Growth Cause Less Satisfaction? -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 6:50 am CST show 3 month nickel trading around $.01/lb
higher, with other
London traded base metals higher as well. Stockpiles of nickel rose on Thursday.
Reuters morning - Copper bounces; eyes third weekly loss -
more
LME Morning - Metals bounce as covering emerges, euro off four-month lows
-
more
Metals finished mixed yesterday, with copper ending up modestly higher after
four straight days of losses, but lead and zinc remained under pressure.
Other markets seemed to go off in different directions, breaking the synchronized
move lower we have been seeing all week. In precious metals, for example,
we had a sharp short-covering rally set in amid oversold conditions, with
gold having its best one-day advance since January. Brent, however, continued
to lose ground, particularly in the forward contracts, while the Euro remained
steady, hovering on either side of the $1.27. In the equity markets, US stocks
got hammered, with the Dow falling 156 points for its fifth consecutive losing
session. The technology-rich NASDAQ index also retreated despite the hype
surrounding the Facebook IPO which will price later today at the higher end
of its indicated range, giving the company a whopping $100 billion valuation.
Right now, we are seeing more of the same type of differentiated markets.
Both the base and precious metals groups are higher, but Brent is struggling
and hit its lowest level of the year earlier today ($110.41). The Euro also
hit a fresh low of $1.2645 earlier today before recovering somewhat. Equity
markets closed weaker in Asia, and stocks are off slightly in Europe, but
we are expecting a higher open in the US. .... Price-wise, markets
will likely not do very much over the course of today’s session. The
gains we are seeing in metals will likely stay in place, as a round of
short-covering amid oversold conditions plays out for a little while longer.
However, we think the selling may return next week, as Europe will continue
to weigh on the markets and pressure commodities lower by keeping the dollar
well bid. In addition the slowing macro environment will be another negative
metals have to deal with, at least for the next few months. ..... Nickel
is at $17,151, down $44 and the only metal that is in the red today.
(complete report
here)
Commodity/Economic Comments
(Yieh) According to statistics released by the Specialty Steel Industry of
North America (SSINA), North America’s stainless steel consumption totaled
201,672 short tons in February, rising by 7% year on year.
(Yieh) Reportedly, Taigang Stainless Steel, the largest stainless steel producer
in China announced to cut the contract list prices of 300 grade stainless
steel products by RMB300/ton for June deliveries, due to poor demand and
lower nickel prices.
(SO) According to the State Information Center of China, China's industrial
production has indicated reduced growth due to the withdrawal of domestic
economic stimulus policies and the slowdown of economic growth in Europe,
the US, Japan, and other countries. Accordingly, China's industrial production
in the second quarter is expected to grow by just 10.5 percent year on year.
Analysis: China's
towering metal stockpiles cast economic shadow - When metals warehouses in
top consumer China are so full that workers start stockpiling iron ore in
granaries and copper in car parks, you know the global economy could be in
trouble. -
more
ENRC Q1-2012
Ore/Ferroalloy Production = 755,000 tons of Chrome Ore and 176,000 tons of
Manganese Ore = Results of production by ENRC (Eurasian Natural Resources
Corporation PLC) during the Q1 (January - March) of 2012 were released last
week. -
more
LME CEO Abbott
may gain millions in sale deal - London Metal Exchange Chief Executive Martin
Abbott may pocket millions from a sale of the 135-year-old institution, possibly
a big chunk from as much as 21 million pounds. -
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
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us
Indicator charts show nickel opened lower but rose during the latter half
of its trading session. For the day, Dow Jones reports three month nickel
closed at $7.80/lb ,
with other base metals trading mixed and quiet. Stockpiles of nickel slipped
overnight and now total just over 105,550 tonnes.
Indicators at 7:00 am CST show 3 month nickel trading around $.03/lb
lower, with only
copper trading slightly higher on the London Metal Exchange. Stockpiles of
nickel fell slightly on Wednesday.
Reuters morning - Copper rebounds from four-month lows, Greek worries caps
gains -
more
LME Morning - Metals drift as early run-up stalls, euro situation dominates
-
more
Metal prices continued to weaken yesterday, with lead and zinc suffering
particularly badly. There were declines in precious metals, energy, and US
equities as well, while the euro hovered at $1.27, close to a four-month
low. Trading volume was light, with just over 67,000 lots changing hands
in late afternoon Comex trading in New York, well below the 30-day average.
There was not much new out of Europe yesterday except for more of the same
dreary headlines. Although French President Hollande and German Chancellor
Merkel pledged to forge a joint approach ahead of an EU summit next month,
we are still not seeing any kind of policy initiatives that could reassure
markets. Instead, the authorities seem to be in “wait-and see”
mode, resigned to the outcome of the Greek elections, which, according to
the polls, could now be even more inconclusive than the first time around.
In the meantime, the Greeks continue to pull money out of their bank accounts;
the Financial Times reported yesterday that $800 million was yanked out on
Monday alone. In addition, the ECB said it has stopped funding operations
for some Greek banks because they had not been adequately recapitalized.
.... At this stage, many commodity complexes are severely oversold (and
nowhere is this more evident than in silver, which has now dropped for eight
straight days and has an RSI reading of 19). However, markets need a
headline to tee off on, and so far, there has not been much in the way of
encouraging news out of Europe that could provide the necessary short-covering
trigger. ...... Nickel is at $16,975, down $30. (complete report
here)
Commodity/Economic Comments
(Yieh) According to data released by the Department of Commerce, the US imported
100,853 tons of stainless steel in April, up by 7% from 93,892 tons in March,
reaching 12-month high.
(AIST) U.S. steel mills shipped 8,512,825 net tons for the month of March
2012, a 1.3% increase from the 8,407,343 net tons shipped in the previous
month according to the latest release from AISI.
Experts see crude & nickel as safe haven, expect weak gold -
more
(SBB) Major Chinese mills cut stainless export prices by $50-100/t
(JMB) Jindal Stainless to Double Production Capacity Soon
No tarnish on prospects
for stainless steel - The stainless steel industry in China will continue
to expand during the country's 12th Five-Year-Plan (2011-15) as a result
of incentives stemming from ongoing urbanization and construction, experts
said on Wednesday. -
more
Nickel Prices
Move to the Lowest Level of 2012 on Oversupply - Nickel prices have suffered
from the same downward drift that afflicted the majority of the complex over
the past month. -
more
Some Chinese steel
mills defer iron ore shipments: sources - Some Chinese steel mills have postponed
delivery of iron ore from miners including top supplier Vale as a slow steel
market cuts demand for the raw material and producers expect a further drop
in prices, sources at mills and traders said on Thursday. -
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
Indicator charts show nickel opened lower, but rose on positive US economic
reports. Then news of a possible Greece bank run surfaced, and the Euro fell,
dragging nickel with it. For the day, Dow Jones reports three month nickel
closed at $7.71/lb
, down
a whole $5/tonne. Stockpiles of nickel stored in LME approved warehouses
fell on Tuesday and now total just over 105,600 tonnes.
(Dow Jones) The global nickel market was in surplus by 6,200 metric tons
in January to March, the World Bureau of Metal Statistics said Wednesday.
This compares with a 8,600-ton surplus over the whole of 2011.
(Dow Jones) PT Aneka Tambang, or Antam, intends to pass to customers extra
costs arising from a government plan to slap a 20% export tax for several
unprocessed minerals, the company said Wednesday.
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:00 am CST show 3 month nickel trading around $.03/lb
lower, with most
London traded base metals lower as well. Stockpiles fell on Tuesday.
Reuters morning - Copper hits 4-month low on Greece turmoil, dollar -
more
LME Morning - Metals fall to fresh multi-month lows, eurozone uncertainty
rages -
more
We suggested yesterday that in view of oversold market conditions and the
fact that the Greeks were in serious discussions with regard to forming a
new government, that investors close out short positions, or in the least,
watch things from the sidelines. Shortly after our commentary came out, news
broke that the Greek talks had in fact collapsed, sending the country towards
fresh elections, now set for June 17.
The failure to reach an agreement reversed the relatively modest gains we
were seeing, sending fresh shorts out in full force. Although metals did
not sell off dramatically, there were substantial reversals in precious metals,
energy, and US equities. The most significant decline occurred in the European
debt markets, where both Spanish and Italian yields soared; Spanish 10-year
rates, for example, pushed to 6.42%, and are now inching towards the critical
7% barrier, at which point local debt markets tend to seize up as investors
begin to discount the possibility of an imminent default. We are seeing more
of the same downside pressures forming today. Copper is off by about $100
a ton, but the rest of the group is holding up fairly better after working
earlier lows. Gold and silver, however, are off sharply, as are energy prices,
while the Euro remains under pressure, now trading at $1.2740 after breaking
down to $1.2681 earlier in the day. Bloomberg reports that investor George
Soros has started nibbling in gold by increasing his holdings in the SPDR
Gold Trust. The same article suggests that John Paulson has maintained his
gold positions, likely meaning that his funds will report big losses once
again. As the European turmoil starts to spread, we are hearing surprisingly
little from the Europeans themselves, who again seemed to have gone AWOL.
There is, for example, very little in terms of coordinated actions and nothing
being announced in the way of an emergency summit or any kind of preemptive
measures that could be taken by either the ECB or the IMF. What we are getting
instead are conflicting statements from various officials as to what the
Greeks should or should not do, and whether the Euro regime will survive
a Greek exit from the common currency. .... At this point, the nervous
tone still evident in the markets are telling us that the Europeans need
to embark on a series of stabilization initiatives, including ones that could
buffet the systems from the shock of a likely Greek exit from the Euro. Simply
waiting for the results of the June 17th Greek elections may be too late
and risks widening the contagion into Spain and Italy. In the meantime, one
thing that at least is going right is that the Euro is selling off; this
will make exports out of Europe – and those idyllic Greek island vacations
– both more attractive. In corporate news, Reuters reports that BHP
Billiton said it expects commodity markets to cool down in the years ahead
and in this regard, has put the brakes on a plan announced by Chief Executive
Marius Kloppers in 2011 to spend $80 billion over five years to expand its
iron ore, coal, energy and base metal operations. “It is all about
appropriate allocation of capital. When Marius (Kloppers) talked about the
$80 billion, the environment was different," Chairman Jacques Nasser told
Reuters. .... Nickel is at $17,030, up $35, but charts suggest a push down
to the mid-$16,000 mark. (complete report
here)
Commodity/Economic Comments
(Yieh) According to statistics, the inventory of stainless steel in Chinese
Wuxi market totaled 199,454 tons in the first 10 days of May, falling by
4.17% from 10 days ago.
(FAN) Taigang Stainless has cut its 300-series stainless export offers for
July deliveries by $50 per tonne, tracking falling nickel prices and a weak
Asian market.
Oryx Stainless - Nickel is not always centre of the universe -
more
(Interfax) China's steel product output edged down on a monthly basis in
April but daily production was at a record high on stronger steel prices
and seasonal demand.
Steel Founders' Society Of America Casteel Reporter -
pdf here
Bank of America Merrill Lynch 2012 Global Metals and Mining & Steel
Conference - Xstrata presentation -
pdf here
Bank of America Merrill Lynch 2012 Global Metals and Mining & Steel
Conference - BHP presentation -
more here
Indonesia extends
export duty to 21 metal ores - Indonesia will apply an export duty of 20
percent to 21 metal ores and concentrates, the finance minister said on
Wednesday, extending a list of 14 metals proposed earlier this month to be
subject to the duty. -
more
Shipments Show Small
Bounce Back in April - April shipments of aluminum and steel were up
slightly in both the U.S. and Canada, an improvement from the year over year
declines seen in March. -
more
Indonesia Nickel-Ore
Ban Sends Sumitomo Looking for Supply - Restrictions on nickel-ore exports
by Indonesia may force Japan, the world’s third-largest producer of
refined metal, to source raw material from other suppliers or reduce output,
Sumitomo Metal Mining Co. said. -
more
Japan Ni-Alloyed
SUS Scrap May Price Down Yen5,000/Ton = NSSC presented the price cut based
on the lower nickel price = NSSC cut its purchasing price for nickel-alloyed
stainless steel scraps (new clippings) for May deliveries by Yen5,000/ton
from the price for April, effective May 8. -
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
Indicator charts show nickel was trading above the $17,000/tonne level, when
Greece announced it was unable to form a coalition government and would need
new elections. This announced whacked the Euro and nickel struggled in the
latter half of the day, looking strong in spite of the heavy drop in the
Euro. For the day, Dow Jones reports three month nickel closed at
$7.71/lb
, with most
other base metals ending lower. Stockpiles of nickel held in LME approved
warehouses fell on Monday and now total just over 105,750 tonnes.
German Steelmakers
Give Grim Outlooks After Difficult Quarter - Germany's two largest steelmakers
Tuesday forecast sharp drops in full-year operating profits as a fragile
economy continues to weigh on demand and prices for their products. -
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
higher, with other
London traded base metal mixed and mostly quiet. Nickel stockpiles fell on
Monday.
Reuters morning - Copper hits 4-month low as EU concerns mount -
more
LME Morning - Base metals flat, market unconvinced on eurozone stability
-
more
Metal prices continued to sink yesterday, as did many other commodity prices.
In fact, the Thomson Reuters-Jefferies CRB index fell more than 1% to below
290 -- its lowest level since October 2010. Equity markets were also under
pressure yesterday, with US stocks still unable to shake off the lingering
aftershocks of the JP Morgan trading loss. Needless to say, the Greek situation
remains front and center in terms of investor worry right now, as the politicians
there have yet to make the necessary progress to form a government. Late
in the day yesterday, the country’s president said he would continue
talks with all the parties through to Thursday, at which point if no agreement
is reached, fresh elections would be called. The president is attempting
to cobble together a coalition comprising mostly of technocrats from the
various parties, thus hoping to sidestep the politically charged atmosphere
and the power of personalities. ..... As we wait for the results of the talks,
there is a welcome pause in the selling. Metals are mixed right now; although
copper is down slightly, most of the rest are showing modest gains. Precious
metals are flat, while energy prices are higher, as is the Euro, now trading
at $1.2850, US equity markets are also called to open higher..... Very
short-term, we would probably want to lighten up on short positions here,
as many markets are extremely oversold and prone for a rather sizable
short-covering rally should the Greeks surprise us and emerge with a coalition
deal. As we noted above, if the fourth and smaller party joins up with the
other two pro-bailout parties, Greece would have a government and the tone
in the markets could undergo a dramatic shift. The Europeans are also trying
to help, with Bloomberg reporting that the EU has hinted it would allow Greece
extra time to meet budget-cut targets, as long as the its politicians put
together a ruling coalition committed to austerity. Of course, should the
talks fail, we could see yet another leg lower set in, at which point the
European authorities will likely fast-track exit strategies to get Greece
out of the Euro altogether. .... Nickel is at $17,080, up $205. Another
close below $17,125 will confirm the downside breach of the trading range.
(complete report
here)
Commodity/Economic Comments
(Yieh) According to report of Macquarie Commodities Research, the statistics
of China’s stainless steel output in the Q1 released by the country’s
Stainless Steel Council (SSC) was under-reported. Macquarie estimated that
China’s Q1 stainless steel output totaled 3.7 million tons, rising by
6% year on year, in comparison of SSC’s report of 3.443 million tons,
soaring by 11.6% year on year.
Hefty duties on Chinese imports to aid SA firms - Imports of screws from
China have been slapped with a hefty antidumping duty this month after an
investigation by a South African trade authority found they were causing
local manufacturers "material injury". -
more
The Global Stainless
Steel Prices Are Rising - Chinese ferrochrome producers have raised offer
prices since last week on steady May 2012 purchase prices from major stainless
steel bar mills. -
more
Courtesy AISI - In
the week ending May 12, 2012, domestic raw steel production was 2,005,000
net tons while the capability utilization rate was 81.1 percent. Production
was 1,778,000 tons in the week ending May 12, 2011, while the capability
utilization then was 72.7 percent. The current week production represents
a 12.8 percent increase from the same period in the previous year. Production
for the week ending May 12, 2012 is up 2.1 percent from the previous week
ending May 5, 2012 when production was 1,963,000 tons and the rate of capability
utilization was 79.4 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
Indicator charts show three month nickel fell below the $17,00/tonne threshold
early and fought for much of the day to stay above it, only to loose that
battle late. For the day, Dow Jones reports three month nickel closed at
$7.64/lb. This is nickel's
lowest close since December 2009. Stockpiles of nickel stored in LME approved
warehouses fell on Friday and now total just over 106,200 tonnes.
(Dow Jones) The current weakness in base metals prices is likely to continue
in the short term, but is creating an opportunity to position for second
half strength, says Barclays.
(Dow Jones) LME base metals are softer, taking their cue from slowing growth
in China as weaker demand there dampens, particularly for copper, says RBC
Capital Markets.
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:00 am CST show 3 month nickel trading around $.05/lb
lower, with other
London traded base metals lower as well. Nickel stockpiles fell slightly
on Friday.
Reuters morning - Copper hits 4-month low on China, euro zone worries -
more
LME Morning - Copper drags base metals lower, dollar commodities hit by sell-off
-
more
(Writer’s note: The table we carried in Friday’s report was incorrect
and pertained to data from earlier in the week.) Metals fell on Friday, with
copper losing ground for a second week in a row, as apart from tight LME
copper stock positions and lingering backwardations, there was little in
the way of bullish news that could justify a sustained advance. Continued
unease about Greece, concern about Spanish long-term yields, and data showing
decelerating macro trends out of China (and elsewhere), all combined to pressure
the complex lower. In addition to the weaker tone seen in metals, energy,
precious metals, and ags, all lost ground as well. In fact, the latest CFTC
data shows that hedge funds and money managers slashed their bullish bets
on commodities by 20%, or nearly $18 billion, last week. Crude accounted
for the lion’s share of the drop, losing about $7 billion of length,
while gold had the second largest outflow, dropping nearly $4 billion to
around $14. ..... Needless to say, markets are sharply lower right now and
even left unimpressed with weekend news out of China that the country’s
central bank lowered reserve requirements by 0.5%, its third cut in the last
seven months. The government also said it will cut taxes for small firms
in order to help them cope with a credit squeeze and weaker exports. Neither
item is doing much for metals, as investors are concluding that easier money
is not necessarily going to reverse the slowing trend in the Chinese economy,
nor will it do much to change the fact that the EU - China’s biggest
export market - is mired in recession. ...... Nickel premiums have dropped
to multiyear lows as extensive supply continues to over-shadow demand, this
according to AMM. "The nickel ore price is falling in conjunction with the
LME price, which is lowering their (NPI producers’) costs," one trader
said. ..... Nickel is at $16,975, down $220, and we could see a further retreat
to the mid-$16,000 level (red line) if previous support at $17,125 (shorter
red line) gives way on a two day closing basis. (complete report
here)
Commodity/Economic Comments
(Yieh) Germany-based Heinz Pariser Alloy Metals & Steel Market Research
said that the global stainless steel production was expected to continue
to rise to 36 million tons in 2012, driven by the growth in China and India.
It predicted that the global stainless steel output would rise by 6% in 2012.
Among them, China’s stainless steel production would surge to 15.5 million
tons, surging by 8.5%; India’s would increase to 2.6 million tons, jumping
by 15%, both compared to that in a year earlier.
(Interfax) China's daily crude steel production hit a record high in April
on higher steel prices and seasonal demand, though consumption is likely
to weaken this month after prices started dropping and as the summer weather
arrives.
(RI) Global: Global apparent steel use will increase by 3.6% to 1.422 billion
tonnes this year and a further 4.5% to around 1.486 billion tonnes in 2013,
the World Steel Association (WSA) has predicted in its latest short-term
outlook.
Bullish Wagers Plunge Most in 2012 on Greek Impasse: Commodities -
more
U.S. Exports of Stainless Steel Mill Products -
more
Vale New
Caledonia unable to meet supply contract - The Vale New Caledonia nickel
company has declared force majeure after revealing that production has been
halted because of an incident at its acid plant last Tuesday. -
more
Cliffs may export
40 per cent of chromite from Ont. Ring of Fire for processing - The Liberals
are rejecting an NDP demand that Ontario force Cliffs Natural Resources to
process all the chromite it takes from the Ring of Fire inside the province.
- more
Japan SUS Products
March Imports Sharply Up = Up by 36%; large increases from major origins
= The Japan Iron and Steel Federation compiled the import statistics released
by the Ministry of Finance into the table attached hereto with regard to
the imports of stainless steel products in March 2012 as well as during the
first three months of 2012. -
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
Indicator charts show nickel opened lower but got a boost from US consumer
confidence numbers and after a day of fairly choppy trading within a $200/tonne
range, Dow Jones reports three month nickel closed at
$7.80/lb
. Stockpiles
of nickel stored in LME approved warehouses fell slightly on Thursday and
now total just over 106,30 tonnes.
(Dow Jones) Nickel prices could be at risk of substantial volatility in 2012
as the impact of Indonesia's new mining regulations is felt, particularly
on major consumer China, says Natixis Metals.
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:05 am CST show 3 month nickel trading around $.04/lb
lower, with other
London traded base metals lower as well. Nickel stockpiles fell on Thursday.
Reuters morning - Copper eases as China data, EU debt weigh -
more
LME Morning - Metals retreat as Chinese data underwhelms, nickel and tin
set multi-month lows -
more
Copper finished higher for the first time in six sessions yesterday, and
most other markets did better as well. A stronger session in the Spanish
equity markets and a slight easing in the number of weekly US initial claims
both helped sentiment, as did a likely round of mild short-covering from
relatively oversold conditions. It’s a far different story today, with
the bears back in charge. Copper is now back below the $8,000 mark and there
are sharp declines in lead and zinc in particular. Precious metals are also
getting hammered, with gold off another $16/ounce, but oil prices are down
by only about $1/brl. The Euro has escaped so far, holding relatively steady
at $1.2920, although equities are lower across the board. Today’s downside
catalysts can be traced not only to the usual suspects, but to JP Morgan’s
stunning admission late yesterday that it incurred a $2 billion trading loss
this past quarter after what apparently were hedging mismatches and other
“errors, sloppiness and bad judgment”. JP Morgan’s stock is
down some 7% in pre-market trading, contributing to the expected 56 point
opening decline in the Dow. ..... We are expecting a relatively sloppy session
today, but many markets are quite oversold and due for a bounce. Unfortunately
for the bulls, there are no headlines that could make the case for a sustained
run higher. (complete report
here)
Commodity/Economic Comments
(Dow Jones) China's production of key metals in April fell from a month ago,
in line with broad weakness in the country's industrial complex, as policy
curbs on the property sector, high inventories and monetary tightness weighed
steelmaking and copper smelters, National Bureau of Statistics data showed
Friday...... Crude steel output fell 1.6% to 60.58 million tons. Downstream
steel product production also fell 2.7% to 81.1 million tons.
(Yieh) Reportedly, Nippon Steel and Sumikin Stainless Steel Corp. (NSSC),
the largest stainless steel producer in Japan announced to hike the base
prices for austenitic sheet and plate by ?5,000/ton for June deliveries in
response to higher energy costs. Also, this is the first time that the company
raises the base prices for austenitic sheet and plates over the past eight
months. However, NSSC cut its alloy surcharge for austenitic sheet and plate
slightly by ?5,000/ton for June due to lower nickel prices.
(Reuters) South Korea purchased 6,000 tonnes of aluminium and 200 tonnes
of nickel via tenders, the state-run Public Procurement Service said.
(SBB) China's Shanxi Taigang Stainless Steel increased its bid price for
high carbon ferro-chrome for May deliveries to RMB 7600/tonne ($1204/t) with
VAT on Thursday.
Vale Declares
Force Majeure At New Caledonia Nickel Plant - Brazilian mining company Vale
SA said it declared force majeure, effective Thursday, on some nickel sales
from its Vale New Caledonia nickel operation. -
more
20% Export Tax
Levied On Indonesian Ni Ore = Effective May 6, on 14 mineral products exported
from Indonesia, causing increase in costs for China/Japan = The Indonesian
government enforced an export tax system effective May 6, 2012 in which a
20% export tax is levied on 14 mineral products of Indonesian origin including
nickel ore. -
more
Indonesia plans
to limit miners' exports at 2009-10 volume - The Indonesian Trade Ministry
on Friday announced plans to set a new quota for mineral exports, limiting
mining companies to their 2009 or 2010 export volumes. -
more
Dodworth residents'
joy after nickel site plan withdrawn - Plans for a nickel recycling factory
in South Yorkshire have been withdrawn following a campaign by residents
who feared it could impact on health. -
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
Indicator charts show nickel opened slightly higher, but fell at the opening,
rose as US equity markets opened higher, and then fell again late. For the
day, Dow Jones reports three month nickel closed at
$7.79/lb, down $25/tonne on
the day. Stockpiles of nickel stored in LME approved warehouses rose on Wednesday
and now total just over 106,350 tonnes.
(Dow Jones) U.S. nickel imports fell 15.3% in March from last month, and
was down 21.9% from the previous year, the Commerce Department reported Thursday.
(Dow Jones) The countdown has started to find a buyer for the commodities
brokerage business of Natixis now the French bank has publicly stated the
division is for sale.
(Chinese media) Jinchang City is located in northwestern Gansu Province at
the north foot of the Qilian Mountains and known for its vast land, natural
resources, dry climate, and rich sunshine. The city is also the home to China's
largest nickel deposits. Proven reserves of nickel in Jinchang are around
5.5 million tons which is 90% of China's nickel reserves and the third largest
in the world.
(Bloomberg) New supply of nickel from current projects and the availability
of nickel pig iron, an alternative to the refined metal, should hold prices
below $20,000 a metric ton until 2016, according to Paul Dewison, a director
at Intierra.
China cancels tours to Philippines over South China Sea dispute -
more
Ironworkers locked
out - Ironworkers who were locked out of their work site at the Vale nickel
processing facility construction site in Long Harbour on Tuesday were told
to be back on the job Wednesday, according to business manager for the
Ironworkers Local 764, Tom Woodford. -
more
New Legal Challenge
Filed Against UP Nickel Mine - A private club in Michigan's Upper Peninsula
has filed a federal lawsuit to halt construction of a nickel and copper mine,
saying Kennecott Eagle Minerals Co. did not obtain necessary federal permits.
-
more
Aperam suffers
in Q1 as nickel falls - Results from Aperam fell short of consensus in the
first quarter, the Luxembourg-based stainless steel maker said on Wednesday,
as it suffered from the low cost of nickel, and forecast that profit would
remain flat for the next few months. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 6:55 am CST show 3 month nickel trading unchanged
with other London
traded base metals mixed, but quiet. Nickel stockpiles rose on Wednesday.
Reuters morning - Copper pressured by weak China data, Eurozone debt -
more
LME Morning - Metals turn lower, early corrective bounce stalls -
more
Metals fell again on Wednesday, led by copper, which fell to its lowest level
in three week. However, just like the decline on Tuesday, prices managed
to pick up off their lows, and in copper's case, reclaim the $8000 mark.
Most other markets also lost ground, although the extent of the selloff was
not as pronounced as what was seen earlier in the week. The Euro fell for
an eighth straight day, closing well below $1.30, but Brent bucked the trend,
finishing higher. ..... Metals are mixed right now, erasing earlier losses
brought on by disappointing Chinese trade data. In this regard, the government
reported that copper imports by China declined for a second month in April,
coming in at 375,258 metric tons,19% lower than in March, but still higher
than the 262,676 tons from a year ago. Scrap copper imports totaled 370,000
tons in April, compared to 430,000 tons in March. ..... In the broader trade
category, Reuters reports that the annual growth rate in Chinese imports
during April was just 0.3%, far below an expected 11% increase, while exports
were up 4.9% vs. expectations for an 8.55% increase. Exports to emerging
economies fell alongside those to Europe, but it is the stall in imports
that is more worrying, as it suggests that consumer demand is not picking
enough to offset the softness in exports. ..... We don’t have much to
add to what we have written in recent commentary and still expect prices
to drift lower in the days ahead. Having said that, many complexes, particularly
the precious metals group and equities, are getting quite oversold, with
RSI’s in the low 30s. Therefore, there is the possibility of some sort
of short-covering rally setting in, but we would need to see a headline
triggering it. One possibility could be if the PASOK party in Greece him
surprises the markets and stitches together a governing coalition. However,
we would not want to bank on such an outcome too much, as the more likely
scenario is one where the whole process grinds on towards yet another election,
meaning more uncertainty for the Euro and the markets at large. ..... Nickel
is at $17,211, up $16, but we did get to a low of $17,054 at one point in
the day. (complete report
here)
Commodity/Economic Comments
(Yieh) According to data released by the Japan Iron & Steel Federation
(JISF), Japan imported 17,971 tons of stainless steel in March, surging by
35.7% from a month earlier and increasing by 20.9% year on year.
(Interfax) Chaoyang Haotian Nonferrous Metal Co. Ltd. (Haotian Nonferrous)
has signed an agreement with authorities in Liaoning Province's Beipiao City
to invest RMB 2.50 billion ($396.22 million) in expanding refined nickel
capacity, the firm's parent, Jilin HOROC Nonferrous Metal Group (HOROC),
said Wednesday.
(JSC) In April 2012, Baosteel Stainless produced around 105,000 tonnes of
crude stainless steel, decreasing by 5,000 tonnes from a month earlier. It
is reported that Chinese Baosteel Stainless has announced to cut the domestic
prices of 304 and 430 grade stainless steel coils by CNY 200 to CNY 400 per
tonne respectively for May 2012 deliveries, affected by weak market prices
in the domestic market.
(MW) While in recent years the nickel market has grown at a healthy rate,
virtually all of this growth has been taken by nickel pig iron, leaving the
main suppliers with what is, in effect, a flat market. In the near term,
according to Intierra Resource Intelligence, the nickel industry faces an
era of relatively low prices, certainly in relation to the cost of new
production. Against this background, the upsurge in production from new projects
raises fears that available supply cannot be absorbed by the market.
(PR) AK Steel said today that it will increase current spot market base prices
for all carbon flat-rolled steel products by $40 per ton, effective immediately
with new orders.
Japan SUS Product
Exports On Fast Recovery - March 2012 = Up by 20% from February; quick recovery
in exports to Taiwan and Thailand = Japan Iron and Steel Federation compiled
the Trade Statistics released from the Ministry of Finance into the table
as attached hereto with regard to Japan's exports of stainless steel products
during March 2012. -
more
Brighter metals
prospects for PNG - A series of significant mineral finds in Papua New Guinea
have highlighted the role exports are set to play in the nation’s economic
future. -
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
Indicator charts show nickel fell sharply early on but recovered some of
its losses late. For the day, Dow Jones reports three month nickel closed
at $7.80/lb
. Stockpiles
of nickel stored in LME approved warehouses rose on Tuesday and now total
just under the 105,800 tonne level. The potential implications of what happened
in last weekend's elections are still sending shock waves thru world markets.
Commodity traders have not escaped.
The Nickel Institute is again publishing its Nickel Magazine. If you would
like to see if you qualify for a free subscription, sign up here -
Nickel Magazine
Indonesia To
Tax Some Raw Mineral Exports At 20% - Indonesia will impose a flat 20% tax
on the export of 14 mineral ores by some miners, a Finance Ministry official
confirmed Tuesday, adding some clarity to a policy change that has kept mining
companies and regional importers in the dark for months. -
more
Sudbury wins prized
smelter - Greater Sudbury has been formally selected as the site of Cliffs
Natural Resources' prized $1.8-billion ferrochrome smelter, QMI Agency has
learned. -
more
MEPS Predicts Record
High Stainless Steel Output In 2012 - Worldwide stainless steel output is
forecast to grow by almost 6 percent, year-on-year, in 2012, to give another
new record total of 34 million tonnes, despite global economic gloom. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:00 am CST show 3 month nickel trading around $.12/lb
lower, with other
London traded base metals lower as well. Stockpiles rose on Tuesday.
Dow Jones reports three month nickel closed Tuesday's trading day at $7.84/lb
, with a growth in
nickel stockpiles to just under 105,650 tonnes.
Reuters morning - Copper drops to 2-week low on weak euro, Greek worries
-
more
LME Morning - Base metals slump, eurozone concerns knock sentiment -
more
The "Sell in May and go away" season is upon us, and it seems to have started
right on cue. The selling picked up with a vengeance on Monday after the
results of the Greek and French elections came out. Markets plunged across
the board on Monday, and although some buying lifted them off their worst
levels by the close, the mood remained very tenuous. Indeed, we are back
in the red once again as we start Wednesday's trading session here in the
US. As we noted in the introduction to our latest monthly report, which came
out late Monday night (readers can email this writer if they did not get
it) the French election results, while significant, were not unexpected,
but the Greek elections were a total surprise and managed to derail the markets
in a way that the French results did not. .... If the troubles in Greece
were not enough, Spain is causing the markets fresh worries today; the yield
on Spanish 10-year bond climbed to 6% for the first time since late April,
driving its premium to the benchmark German bunds to its highest level since
late November. In addition, credit-default swaps on Spanish paper rose to
506, not far off the record closing price of 510.5 reached on April 16. In
the meantime, the Spanish government is asking banks to set aside another
$45 billion against real estate loans. Earlier in the week, the country’s
third largest lender was bailed out. ..... For the moment, markets are clearly
being driven by the fallout from the Greek elections. We expect big surges
(both up and down) in the days ahead, as waves of selling could be interrupted
by significant short-covering rallies, especially on signs of perceived progress
from Europe, short-lived as this may turn out to be. For the moment, the
name of the game is to sell into the rallies; the twin combination of uncertainty
in Europe, coupled with the specter of slowing global growth (the recent
data from Germany notwithstanding) makes this a formidable bearish combination
to confront. .... Nickel is at $17,112, down $243, and about to take out
the bottom end of the trading range at $17,125, which could set up a further
retreat to the mid-$16,000’s. (complete report
here)
Commodity/Economic Comments
(Yieh) According to statistics, the stainless steel stocks totaled 208,143
tons in Chinese Wuxi market in the last 10 days of April, up by 1.37% in
comparison of that in 10 days ago.
(TEX) Sherritt International says in its quarterly report for the Q1 (January
- March) of 2012 that output of first metal at Ambatovy Nickel Project in
Madagascar has been delayed from the Q1 to the Q2 (April - June)
(MBN) Baosteel cuts May nickel pig iron offers by 5%
(NFIB) The Small Business Optimism Index gained 2 points to 94.5 in April,
a nice gain on an absolute basis. This month's Index is the highest reading
since December 2007, the peak of the last expansion
Tropical Pacific ENSO-neutral, but warming slowly -
more
The following
speakers made presentations at the INSG Meetings, which were held in Lisbon,
Portugal in 23 and 24 April 2012: -
more
DJ Taiyuan: Loss
Of Indonesian Nickel Ore Not Necessarily Bad For China Stainless Steel Industry
- The loss of nickel ore exports from Indonesia may not necessarily hurt
China's stainless steel industry, as it may turn to other substitutes, Li
Xiaobo, chairman of China's largest stainless steel producer Taiyuan Iron
& Steel Group, said Tuesday. -
more
Japan Imported
Ferroalloy Market Report - April 27, 2012 = Return of cheerful growth in
China's crude steel production = Market outlook of the imported ferroalloys
in Japan as of April 27, 2012 is as follows: -
more
BHP merges
hard-pressed nickel,aluminium units - BHP Billiton on Wednesday said it was
merging its nickel and aluminium units into a single group in the hopes of
improving their efficiency. -
more
Courtesy AISI - In
the week ending May 5, 2012, domestic raw steel production was 1,963,000
net tons while the capability utilization rate was 79.4 percent. Production
was 1,788,000 tons in the week ending May 5, 2011, while the capability
utilization then was 73.1 percent. The current week production represents
a 9.8 percent increase from the same period in the previous year. Production
for the week ending May 5, 2012 is down 1.7 percent from the previous week
ending April 28, 2012 when production was 1,997,000 tons and the rate of
capability utilization was 80.8 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
Indicator charts show nickel started higher, then slumped, but bounced toward
the end of the session. For the day, Dow Jones reports three month nickel
closed at $7.96/lb
, up $.12/lb
on the day, but down $.35/lb on the week. Stockpiles of nickel stored in
LME approved warehouses rose on Thursday and now total just under 104,300
tonnes. The London Metal Exchange is closed on Monday for Early May Bank
Holiday and your author will be traveling on Tuesday. Our next update will
be Wednesday, May 9th.
Open Briefing MD on Ramu Production and Outlook -
pdf here
Analysis: LME
draws the line on metal warehouse shenanigans - The London Metal Exchange
(LME), while appearing to tolerate storage strategies that have distorted
the aluminum market, is unlikely to permit banks and trading houses to manipulate
its warehousing rules to create distortions in other metals. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 6:50 am CST show 3 month nickel trading around $.10/lb
higher, with other
London traded base metal mixed and mostly quiet. Stockpiles of nickel rose
on Thursday.
Reuters morning - Copper steady ahead of U.S. non-farm payroll data -
more
LME Morning - Metals mostly retreat, bears take control ahead of US jobs
report -
more
We had a very strange day to say the least yesterday, as practically everything
was down. Even the dollar -- traditionally a safe haven during market declines
--did not do much, finishing pretty much unchanged against the Euro. In the
case of base metals, markets recouped earlier losses after US initial claims
readings came in well below last week’s figure, but by the time the
ISM-services report came out an hour and a half later, these gains were reversed.
In this regard, the April services fell to 53.5 from 56.0 in March, a five-month
low. Turnover was light, with COMEX copper volume at around 50,000 lots,
more than a third below the 30-day average. We are likely going to see very
little action until the non-farm payroll numbers comes out in a few minutes.
Current estimates have job growth at +167,000, but we suspect the number
could be on the light side, in which case we could see base metals under
more pressure heading into next week. ... The Euro is lower now, trading
at $1.3120, and precious metals are also off after yesterday’s drubbing.
US stocks are expected to open lower. ...... Nickel is at $17,440, up $155,
and about where we were at this time yesterday; charts continue to look weak.
(complete report
here)
Commodity/Economic Comments
Insight: The market squeeze, metals traders beat regulators -
more
(Yieh) Taiwanese Tang Eng has announced to decline its stainless steel 300
series flat product domestic prices by nearly US$60/ton for May, but still
keeps unchanged for export prices.
(Yieh) According to statistics released by the Japan Iron & Steel Federation
(JISF), Japan’s stainless steel exports totaled 127,550 tons in March,
rising by 20.2% from a month ago.
(CO) The bauxite and nickel markets are the most likely to face some supply
disruptions if Indonesia proceeds with a planned ban on exports of raw materials,
with exemptions only for miners that plan to build local processing facilities,
said Barclays Capital in a daily commodity research note.
(Interfax) A raft of new policies designed to support small and micro-sized
enterprises (SME) could benefit China's fragmented nonferrous processing
sector, an analyst told Interfax Friday.
(China) Index suggests less purchasing activity in April -
more
The Ceridian-UCLA Pulse of Commerce Index® (PCI®) issued by the UCLA
Anderson School of Management and Ceridian Corporation rose 0.1 percent in
April following the 0.3 percent increase in March and the 0.7 percent increase
in February -
pdf here
Indonesia to
impose 20 pct export duty on metal ores - Indonesia will impose a 20 percent
export duty on all metal ores under new regulations to be applied from May
6 and will work on export policy plans for its coal industry in the next
month, senior government officials said on Friday. -
more
Indonesia tax
on metals risks China shipments - New Indonesian taxes on metals and curbs
on raw mineral shipments are likely to hit exports of nickel and bauxite
to China, an industry source said on Friday, highlighting concerns over the
impact of the policy changes by Southeast Asia's biggest economy. -
more
Australian
billionaire says to build nickel freight fleet - Australian businessman Clive
Palmer on Friday said he plans to build and operate a fleet of four freighters
to import nickel ore to a nickel refining plant purchased from BHP Billiton.
-
more
LME Wants Warehouses
in China as Asia Growth Lifts Demand - The London Metal Exchange expects
to receive multiple takeover offers when a deadline closes on May 7, and
shareholders may assess the bids on price as well as the advantages a potential
buyer may bring, the chief executive 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
Base metals ended lower after a disappointing ISM services index fell. Indicator
charts show nickel traded choppy thru most of the session, but fizzled out
upon the ISM report. For the day Dow Jones reports three month nickel closed
at $7.84/lb, a fall of $5/tonne.
Stockpiles of nickel stored in LME licensed warehouses fell on Wednesday
and now total just over 103,750 tonnes.
Indicators at 6:55 am CST show 3 month nickel trading around $.09/lb
higher, with other
London traded base metals mostly trading lower. Nickel is getting a nudge
this morning on news that indonesia will proceed with a ban on exports of
nickel ore on Saturday. Stockpiles fell on Wednesday.
Reuters morning - Copper at one-week low as global growth worries weigh -
more
LME Morning - Metals buckle as bearish mood deepens, worries over economies
-
more
Copper prices fell to their lowest level in a week yesterday as ongoing concerns
about slowing EU, Chinese, and to a lesser extent, US growth, all weighed
on the market. In fact, for some time now, metals have been trading in lackluster
fashion, unable to get anything meaningful going on the upside given the
increasingly dour set of macro statistics that have been coming through.
However, we are not seeing a price collapse either, as the US economy is
still chugging along, while Chinese demand, while reduced, is still a force
to be reckoned with. In copper’s case, severe supply constraints and
declining inventories are helping prop up prices, providing ballast for the
rest of the metals. The exception seems to be nickel, which although up today,
is looking extremely poor on the charts and close to breaking down to fresh
lows. ..... Right now, metal prices are off slightly, and we are seeing modest
declines in both energy and precious metals as well. US stocks are expected
to open higher on account of a steadier tone in Europe and an impressive
recovery in the Chinese stock market, which managed to close at a 7-week
high partly on hopes of further easing. The Euro is weaker, trading at $1.3140
after the ECB left rates unchanged, but ECB head Mario Draghi warned that
the Eurozone outlook still has downside risks..... Nickel is at $17,505,
up $220, and about where we were at this time yesterday; charts continue
to look weak. (complete report
here)
Commodity/Economic Comments
(First Quantum) Nickel production from the Ravensthorpe nickel operation
exceeded plan with steady state operation of the complete circuit and lower
C1 costs as a result of the steady state operation of the sulphuric acid
plant and lower input costs.
(Yieh) According to the report released by Finnish Outokumpu, the company’s
shipments of stainless steel products totaled 399,000 tons in the first quarter
of this year, surging significantly by 23.5% in comparison of 323,000 tons
in a quarter earlier and rising by 5% from 380,000 tons in the same period
of a year earlier.
(China) Non-manufacturing sector fell in April -
more
Indonesia Ban
on Unprocessed-Metal Exports to Proceed as Planned - Indonesia will proceed
with a ban on exports of raw minerals, with some exemptions for miners that
plan to build local processing facilities, and will publish details of the
rule May 6. -
more
Ambatovy mining
project begins nickel production - The Korea Resources Corporation, South
Korea’s state-run resources explorer, said Thursday it successfully
launched nickel production in a mine in Madagascar. -
more
Guidelines for
Use of Stainless Steel in the Ground - Stainless steel can provide excellent
service underground. It is stronger than polymers and copper and its resistance
to chlorides and acidic acids is significantly better than carbon or galvanised
steels. -
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
Base metals ended lower today and indicator charts show nickel was in a fairly
steady downtrend for most of its trading session. Dow Jones reports three
month nickel closed at $7.84/lb. Stockpiles of nickel
stored in LME approved warehouses fell slightly and now total just under
103,900 tonnes.
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 6:55 am CST show 3 month nickel trading around $.11/lb
lower, with other
London traded base metals lower as well. Stockpiles of nickel fell slightly
on Tuesday.
Reuters morning - Copper slips on weak euro, China demand concerns -
more
LME Morning - Metals mostly retreat, sluggish European data undermines mood
-
more
Copper pushed higher in light trading yesterday, buoyed mainly by the April
ISM number out of the US, which was a total upside surprise given the spate
of weaker regional readings released over the past week. The number came
in at 54.8, about 1.8 points above estimates and clocking in at its fastest
pace in almost a year. Stronger auto production was a key factor behind the
increase. Last quarter for example, cars sold at their fastest pace in four
years, and although the pace moderated somewhat going into April, sales were
decent enough to persuade at least GM to lift its full-year 2012 car and
truck sales outlook to between 14-14.5 million, up from its previous range
of 13.5-14 million. Right now, metals are lower across the board, with copper
in particular having a substantial decline on account of a noticeable easing
of the backwardations and more poor data out of Europe. More importantly,
we suspect that the markets are still troubled by what is going on in China.
Although yesterday's Chinese PMI showed a modest uptick, there were issues
within the readings, as discussed in yesterday’s report. In addition,
the release of the HSBC purchasing managers index out earlier today (which
focuses on smaller firms) came in at 49.3 in April, and although it was up
from 48.3 in March, the number remains mired in contraction territory......
Nickel is at $17,470, down $235, and looking quite weak. (complete report
here)
Commodity/Economic Comments
(Yieh) According to Acerinox, the parent company of North America Stainless
(NAS), the US stainless steel consumption rose by 8% year on year in the
first quarter of this year, helping the company to raise the base prices
in January and April.
(Merafe) Shareholders of the Company are advised that ferrochrome production
volumes in the first quarter of 2012 were 21% lower than the 2011 comparative
period, mainly due to the re-scheduling of maintenance programmes and power
buy-back deals with Eskom, the South African national electricity supplier,
in a rather soft market.
(FAN) Ferro-chrome production at Xstrata Alloys fell 20% year-on-year in
the first quarter, as a result of maintenance rescheduling and power buyback
deals with South Africa's state power group Eskom.
China Manufacturing Improvement Signals Growth Rebound -
more
South African
ChCr Q2 Benchmark For Japan Also Up US$ 0.2/lb = To US$ 1.43/lb Cr based
on tightening supply due to continued low output from South Africa = The
benchmark for South African charge chrome shipped to Japan during the Q2
(April - June) of 2012 was agreed to increase it by US$0.2/lb Cr to US$1.43/lb
Cr. -
more
A Tale of Two
of Indonesia's State-Owned Base Metal Producers - Earnings results at Aneka
Tambang and Timah, two of Indonesia’s state-controlled base metal producers,
provide what might seem a contradictory picture. -
more
Nickel Ore
Miner Tripling Production - Nickel ore miner Oriental Peninsula Resources
Group recorded a net income of R498 million during its first year of commercial
operations, a turnaround from the loss of R7.04 million it incurred in 2010.
-
more
Court asked:
Stop annulment of mining permit - A Palawan-based mining consortium has asked
the Court of Appeals (CA) to stop Malacañang from annulling permit
granted by the Arroyo administration to operate a large-scale nickel mining
exploration together with its Canadian partner in three mining sites. -
more
Priest cited
for advocacy vs nickel mining in Philippines - A Roman Catholic priest’s
advocacy against nickel mining has earned for him an international recognition.
-
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
Base metals needed trading today mixed, after a positive US PMI helped steer
most higher. Indicator charts show nickel lagged early on news that the Chinese
PMI was less than optimistic and never recovered. For the day, Dow Jones
reports three month nickel closed at
$8.03/lb. Stockpiles recorded
no change on Monday, possibly due to early May Day holiday's.
Xstrata earnings report - Nickel output rose 8% on the first quarter of 2011,
to 26,381 tons due to the start up higher output from its Integrated Nickel
Operations and the ramp up of its Falcondo ferronickel operation in the Dominican
Republic. Production of nickel and zinc metal accounted for 11% and 10% of
last year's operating Ebitda.
Mikhail Prokhorov: Putin's Controversial Adversary -
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. Stockpiles recorded no change no
Monday.
Bloomberg morning - Copper Extends Decline as Chinese Data Reduce Easing
Speculation -
more
Reuters morning - Copper dips on economy concerns, China data supports -
more
LME Morning - Metals modestly higher, May Day closures crimp interest -
more
Metals finished modestly lower yesterday in very quiet trading, with copper
breaking a five-day winning streak. We did not have much going on in terms
of news except for a number of macro releases out of the US that came in
mixed. On the negative side, business activity in the US as measured by the
Chicago purchasing managers’ index decreased to 56.2, its slowest pace
since November 2009 and coming in much lower than the 60 level expected.
On the positive side, both US consumer spending and incomes climbed in March;
spending was up .3% after a revised .9% gain in the prior month, while incomes
advanced 0.4%, the most in three months. Right now, metals are mixed in
uneventful trading as a number of markets, including that of China's, are
closed on account of the May 1st holidays. However, we did get China's official
purchasing managers' index released overnight, which came in at 53.3, up
from 53.1, although it did fall short of the 53.6 forecast. The manufacturing
output sub-index component rose as well, but many individual sectors that
make up the reading remain weak, among them chemicals, equipment, autos and
oil refining. New export orders edged up to 52.2 from 51.9, but the sub-index
for all new orders slipped to 54.5 from 55.1. Not surprisingly, the
cross-currents evident in the report did not do much to boost the markets.
..... Nickel is at $17,646, down $249, and not participating in the stronger
tone we have seen in most metals over the past week. (complete report
here)
Commodity/Economic Comments
Mining company Kagara has been placed in voluntary administration after
reportedly failing to reach a new finance agreement, leaving more than 300
jobs at risk. -
more
North American Stainless
will maintain the fuel surcharge at 36% for stainless flat and long products
shipping in the month of May 2012. The surcharge rate is considered a maximum
level for May and will be reviewed monthly. -
source
Power tariff hike
hits ferro alloys units - The recent power tariff hike announced by the
government is showing its impact on ferro alloys units in the State as they
have slashed their production by almost 40 per cent.
- more
3 mining firms
question Aquino cancellation of FTAA in Palawan - Amid the debate over mining,
three firms have petitioned the Court of Appeals to reverse its resolution,
which upheld President Benigno Aquino III’s authority to cancel the
“midnight deal” they entered into with the Arroyo administration
that allowed them to conduct large-scale mineral exploration in Palawan.
-
more
Courtesy AISI - In
the week ending April 28, 2012, domestic raw steel production was 1,997,000
net tons while the capability utilization rate was 80.8 percent. Production
was 1,814,000 tons in the week ending April 28, 2011, while the capability
utilization then was 74.2 percent. The current week production represents
a 10.1 percent increase from the same period in the previous year. Production
for the week ending April 28, 2012 is down 0.3 percent from the previous
week ending April 21, 2012 when production was 2,003,000 tons and the rate
of capability utilization was 81.1 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
"A Guide To LME
Trading"...pdf here(all ton listings are metric
tons = 2204.622 pounds ) Updated twice daily - before 8 am CST and before
1 pm CST weekdays -
DisclaimerOriginal content and opinions copyright
www.estainlesssteel.com. All prices shown on this page
are indications only. Note - For real time and official LME prices, LME requires
a user subscribe to an authorized LME vendor.
Daily
Nickel/Stainless Steel Wrap-up
(
Reports
Commodity/Economic Articles and Comments
higher, with other
London traded base metals mostly higher. Nickel stockpiles rose overnight.
Nickel Slump Seen
Ending as China Faces Ore Import Curbs - After slumping more than any other
industrial metal, analysts and traders say the worst may be over for nickel
as restrictions on shipments from Indonesia, the biggest producer, diminish
a worldwide glut. -
Japan Nickel Metal
Consumption; Q1-2012 = 10,430 tons, down 10.8% from the same quarter of 2011
= According to the data released by Ministry of Economy, Trade and Industry,
consumption of nickel metal during the Q1 (January - March) of 2012 was as
per the table attached hereto. -
Morning Nickel
Inventory and Price Statistics & Figures
Voestalpine sees
waning demand and steel price wars - Austrian steelmaker Voestalpine said
prospects for a European sector upturn were fading as demand wanes in the
car and energy sectors and excess capacity triggers "destructive price wars".
-
Vale looks for
some help - Vale Ltd. is embarking on an aggressive campaign to hire
more than 40 engineers and hundreds of other employees by "selling" the quality
of life in the Nickel City and the opportunities for advancement with the
giant miner. -
Courtesy AISI - In
the week ending May 26, 2012, domestic raw steel production was 1,961,000
net tons while the capability utilization rate was 79.4 percent. Production
was 1,778,000 tons in the week ending May 26, 2011, while the capability
utilization then was 72.7 percent. The current week production represents
a 10.3 percent increase from the same period in the previous year. Production
for the week ending May 26, 2012 is down 1.4 percent from the previous week
ending May 19, 2012 when production was 1,976,000 tons and the rate of capability
utilization was 80.0 percent.
, with other London
traded base metals mixed. Stockpiles of nickel fell slightly on Monday.
Brazil prosecutor
seeks halt of Vale nickel mine - Brazilian federal prosecutors in the country's
state of Para have asked a court to suspend operations at Vale's Onça
Puma nickel project in the Brazilian Amazon, alleging Vale failed to meet
obligations to two native tribes in the region. -
World’s
Top Refined Nickel-Producing Countries in 2011 - Following is a table of
the world’s 10 biggest producers of refined nickel in 2011 by country,
compiled by Lisbon-based International Nickel Study Group. -
Minmetals to
sell nickel mine - Minmetals Resources Ltd, the publicly traded unit of China's
biggest metals trader, is seeking a buyer for the Avebury nickel mine in
Australia, saying it will be better run by another company. -
Sandvik says
construction weak spot in robust markets - Swedish engineering group Sandvik
said on Tuesday demand was holding up strongly across its businesses in the
second quarter apart from construction where the European market was showing
some impact from the euro zone crisis. -
UMMC obtained control
of the nickel deposit in the Voronezh Region - The Ural Mining and Metallurgical
Company obtained control of the copper-and-nickel deposits - Yelanskoye and
Yelkinskoye. -
Norilsk to Buy
Vietnam Nickel Deposit Operator for $22 Mln - Russia's largest nickel maker,
Norilsk Nickel, plans to acquire Asian Mineral Resources (AMR) Limited, which
is developing the Ban Phuc nickel deposit in Vietnam, for $22 million, the
company said on Thursday. -
Indonesia to
regularly review base price for mineral export duties - Indonesia will review
mineral base export prices every three months to calculate duties on ores
subject to new export regulations, the director general of foreign trade
said on Thursday. -
POSCO to up
resources self-sufficiency - POSCO, the world’s third largest steelmaker,
plans to raise its self-sufficiency ratio for iron ore, coal, nickel and
other minerals to 50 percent by 2014 through investments in more overseas
mines. -
Talvivaara birds
died of poisoning - A number of birds found dead in a process liquid pool
at the Talvivaara mine in Sotkamo were found to contain abnormally large
amounts of nickel, manganese, zing, and iron. -
Mergers: Commission
opens in-depth investigation into proposed acquisition of Inoxum by Outokumpu
in stainless steel sector - The European Commission has opened an in-depth
investigation under the EU Merger Regulation into the proposed acquisition
of Inoxum, the stainless steel division of ThyssenKrupp of Germany by the
Finnish stainless steel company Outokumpu. -
Global, China steel
output growth sluggish - Global and Chinese crude steel production growth
was sluggish in April as steelmakers adjusted their output to weaker demand
and falling prices in what should be the most active period of the year,
data from an industry body showed. -
New evidence of
eco-damage from Ramu nickel mine - The controversial Ramu nickel mine near
Madang in Papua New Guinea has come under fire for new claims of environmental
damage. -
Analysis: China's
towering metal stockpiles cast economic shadow - When metals warehouses in
top consumer China are so full that workers start stockpiling iron ore in
granaries and copper in car parks, you know the global economy could be in
trouble. -
ENRC Q1-2012
Ore/Ferroalloy Production = 755,000 tons of Chrome Ore and 176,000 tons of
Manganese Ore = Results of production by ENRC (Eurasian Natural Resources
Corporation PLC) during the Q1 (January - March) of 2012 were released last
week. -
German Steelmakers
Give Grim Outlooks After Difficult Quarter - Germany's two largest steelmakers
Tuesday forecast sharp drops in full-year operating profits as a fragile
economy continues to weigh on demand and prices for their products. -
Vale New
Caledonia unable to meet supply contract - The Vale New Caledonia nickel
company has declared force majeure after revealing that production has been
halted because of an incident at its acid plant last Tuesday. -
Aperam suffers
in Q1 as nickel falls - Results from Aperam fell short of consensus in the
first quarter, the Luxembourg-based stainless steel maker said on Wednesday,
as it suffered from the low cost of nickel, and forecast that profit would
remain flat for the next few months. -
MEPS Predicts Record
High Stainless Steel Output In 2012 - Worldwide stainless steel output is
forecast to grow by almost 6 percent, year-on-year, in 2012, to give another
new record total of 34 million tonnes, despite global economic gloom. -
Ambatovy mining
project begins nickel production - The Korea Resources Corporation, South
Korea’s state-run resources explorer, said Thursday it successfully
launched nickel production in a mine in Madagascar. -
South African
ChCr Q2 Benchmark For Japan Also Up US$ 0.2/lb = To US$ 1.43/lb Cr based
on tightening supply due to continued low output from South Africa = The
benchmark for South African charge chrome shipped to Japan during the Q2
(April - June) of 2012 was agreed to increase it by US$0.2/lb Cr to US$1.43/lb
Cr. -
Nickel Ore
Miner Tripling Production - Nickel ore miner Oriental Peninsula Resources
Group recorded a net income of R498 million during its first year of commercial
operations, a turnaround from the loss of R7.04 million it incurred in 2010.
-
Power tariff hike
hits ferro alloys units - The recent power tariff hike announced by the
government is showing its impact on ferro alloys units in the State as they
have slashed their production by almost 40 per cent.
-
