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news covering the period of May 2021
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Friday, May 28
Daily Nickel/Stainless Steel Briefing
Nickel closed Thursday's trading
session at $8.13/lb ($17,915/tonne). Indicators at 7:00 am CST today show
nickel trading around $.04/lb
lower. Stockpiles of nickel stored in LME approved warehouses slipped
on Thursday and ended that session just under the 247,500 tonne level.
We ended 2020 at 246,708 tonnes and after a large gain, we closed
January 4th (the first working day) of this year at 247,980 tonnes. As
you can see, we are very close to going negative for the year. Talks
continue between officials representing Allegheny and USW, and they may
be making some real progress, because the public rhetoric has all but
disappeared in the last week. The United Steel Workers union is working
another big strike in Canada with ArcelorMittal workers. That one has
been going on since May 10th, the Allegheny strike is nearing its third
month. We want to thank Duraloy for sponsoring the month of May.
Companies like Duraloy and ELG Metals make this daily page possible,
and we thank them for that support. The US is honoring its war dead
this coming Monday, in what was once called Decoration Day, but is now
Memorial Day. It is a national holiday and our next update will be on
Tuesday. Have a safe and relaxing weekend and we hope to see you next
week, as we begin a new month.
Average price of LME traded cash nickel
so far this month
- $7.98/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper edges lower on China demand concerns - more
Thursday's market review - Copper rises as strike fears
and Chinese data reassure bulls - Copper and other industrial metals
prices rose sharply on Thursday, helped by strong U.S. data, the threat
of strikes at mines in top copper producer Chile and an easing of fears
that China, the biggest consumer, will tighten monetary policy. - more
Column: The human bottleneck in critical minerals supply chains - The
road to decarbonisation will be paved with copper. As well as lithium,
nickel, cobalt and a host of other minerals, all critical for electric
vehicles (EVs), solar panels and wind farms. - more
Chinese industry association outlines seven proposals to safeguard
domestic steel supply - The China Iron & Steel Association (CISA)
proposed an industry self-review initiative on Wednesday, urging the
iron and steel industry to strengthen market order to further promote
high-quality development of the industry while vowing steel enterprises
will adjust their export strategies to safeguard the domestic supply. -
more
Nornickel has high potential for sustainable development – the Union of
Industrialists - The Russian metal mining giant Norilsk Nickel, which
faced the problem of climate change at its main production sites – in
the Russian Arctic, when a state of emergency was declared in the
Russian Arctic city of Norilsk due to the melting of permafrost, on May
29, 2020 from the fuel tank at the TPP of Norilsk Energy Company No. 3
about 21,000 tons of diesel fuel flowed out into the neighboring river.
- more
POSCO enters battery recycling biz - POSCO will push forward a
lithium-ion battery recycling business together with China's Huayou
Cobalt, as part of the steelmaker's move to strengthen the eco-friendly
business. - more
If you hear your teen mention nickel ore, don't get too excited. It is
doubtful he cares about the nickel ore you care about. Here is why -
Subnautica: Below Zero - Where To Find Nickel Ore - more(if we mention Elon Musk may be looking for sea monkey's, you will know what we mean)
Nickel closed Wednesday's trading
session at $7.83/lb ($17,270/tonne). Indicators at 6:15 am CST today show
nickel trading around $.09/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Wednesday and ended yesterday's session just below the 247,800 tonne
level. With three trading sessions left in the month, we have yet to
record a single day of LME inventory gains this month. Nickel continues
its recovery, with nickel trading above the $8.00/lb level this
morning. China is finding that controlling commodity prices aren't
nearly as easy as they might hope. As the world's largest consumer of
most base metals, including nickel, they feel the pinch caused by
soaring raw materials. But they are also benefiting from a rebounding
world economy and we doubt they are having much difficulty in passing
these cost increases on to their consumers, including those in the
U.S.. Hopefully their reaction is a normal complaint of countries
subject to importing their raw materials, and not more of their little
tit for tat with Australia. We are not one of those who have decided
China is our new enemy, and have immense admiration for the nation and
its history. We tend to base our belief off history, and not bend with
the political winds of the day. That said, this little spat with
Australia is about as impressive to the world, as our country's 60 year
hang-up with Cuba. China - blocking imports of coal, and lobster, and
wine from Australia, will do little more than harden the resolve of
those who might have felt their government was initially wrong.
Australia - elect some politicians with some class. The world may
eventually decide that the coronavirus was in fact, caused by an
accidental release from a Chinese lab. But pointing fingers, while
people are dying and countries should be working together, puts the
accused on the immediate defensive, and nothing like the bite from a
cornered dog. Let's chalk this up to governments were concerned and
angry and with the worst behind us, let;'s work together to insure this
never happens again, or at the very least, we come up with a faster
response mechanism. China has a right to its privacy, but if it wants
to play in the open economy of the world, it must decide to set aside
some of its 'rights' and prepare to be accountable to its people and
those nation it wants to trade with. One thing this whole pandemic
proves conclusively. A virus knows no political borders. Ok - off our
pulpit. Its the day before Friday and the downhill slide is in effect.
Be careful and have a great day!
Average price of LME traded cash nickel
so far this month
- $7.99/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper rises on supply worries in Chile - more
Wednesday's market review - Copper boosted by planned
labour strikes at Chile mines - Copper prices gained on Wednesday as a
planned labor strike at the world’s biggest copper mine in Chile
threatened already low global supplies of the metal. - more
Can metal stocks gain their mojo back? Here's what analysts say - With
the latest overhang on the outlook, and after a sharp run-up, can metal
stocks surprise with more returns? Tune in to learn more - more
Fitch Ratings says raising short-term global metals and mining price assumptions - more
South Korean buyers turn to purchase POSCO’s stainless steel due to
China’s cancellation of export tax rebates - It was reported that the
South Korean stainless steel market has been being unstable since China
canceled its export tax rebates at the end of April. - more
Exclusive: KPMG managers back liquidation of Singapore firms in $1
billion nickel scandal - Singapore firms accused of being involved in a
$1.1-billion bogus nickel trading scheme should be placed in
liquidation as there was no business to be preserved, interim judicial
managers at accounting firm KPMG have said in a document seen by
Reuters. - more
Biden's EV metals import plan unlikely to match climate goals
-executives - The Biden administration's plan to rely on ally nations
for most of the metals needed to build electric vehicles ignores the
complexity of modern mining and could keep the United States from
meeting aggressive climate goals, according to industry executives. - more
Does China’s appetite for steel makes carbon-cutting journey difficult?
- China’s huge appetite for steel, as its economy begins to grow again
after a Covid-19-triggered slowdown last year, is making its efforts to
reduce its carbon footprint difficult. - more
Eurozone nowcast indicator shows clear momentum building - The ING
Weekly Economic Activity Indicator (WAI has returned to levels last
seen in the summer of 2020. - more (probability of shortages expanding will increase)
World Faces Longer Supply Shortage as China’s Factories Squeezed - more
GOP Senators Counter with $1T Infrastructure Bill - President
Biden has dropped his $2.3 trillion opening bid to $1.7 trillion, but
the two sides still can't agree on how to pay for it. - more
NAW Leads Distributor Groups in Opposition to Proposed Tax Hikes - more
Nickel closed Tuesday's trading
session at $7.75/lb ($17,080/tonne). Indicators at 6:00 am CST today show
nickel trading around $.05/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Tuesday and started today's session just under the 248,400 tonne level.
Nickel traded quietly yesterday, and is trading slightly higher this morning.
The Euro is trading off yesterday's highs, so no help is coming from
that quarter. All eyes are on China and what action their government
might or might not take to calm down commodity pricing. Reuters has
published an article below on "China bars banks from selling
commodities....", which, if that turns out to be the biggest gun they
fire, will do little to keep traders enthusiasm in check. Citi analyst
Max Layton was quoted in a another Reuters
article as calling the current price movement part of "knee-jerk price
corrections" due to concerns over China metals policies. This could
reflect the big debate going on about whether the current price spikes
are part of a larger commodity 'super cycle', or a bullish run with
limited staying power. Only time will tell who, if anyone, is right.
It's hump day and the last full week of May. Stay safe out there and
have a great day!
Average price of LME traded cash nickel
so far this month
- $8.00/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Tuesday's market review - Chinese crackdown subdues
industrial metals - Copper prices slipped on Tuesday as the market
fretted over China’s crackdown on prices of industrial materials, but a
weaker dollar and expectations of robust demand and tight supplies
helped to support sentiment. - more
Indian stainless-steel prices stable despite commodity boom: ISSDA - In
the wake of an appeal made by downstream industry bodies to the
Ministry of Steel to regulate steel prices and impose a temporary ban
on steel export, the Indian Stainless Steel Development Association
(ISSDA) has brought to the fore the price situation of Indian stainless
steel industry, and the need to view the price movements and trade
regulations in a holistic perspective. - more
China bars banks from selling commodities-linked products to retail
buyers - sources - China’s banking regulator has asked lenders to stop
selling investment products linked to commodities futures to
mom-and-pop buyers, three people with knowledge of the matter told
Reuters, to curb investment losses amid volatile commodity prices. - more
Nickel rates plunge 6.03% on China move to control prices; analysts see
further weakness - The International Nickel Study Group data showed
that the metal deficit widened to 16,000 tonnes in March from a modest
600 tonnes deficit in February. - more
“What gets measured gets done”: the importance of life cycle data - We
all know that climate change is the biggest global challenge. We all
need to work towards a reduction of greenhouse gas (GHG) emissions –
and ideally become carbon neutral by 2050. - more
US trade chief calls for modernization of 1962 law used for metals
tariffs - U.S. Trade Representative Katherine Tai called on Congress to
modernize the Cold War-era law that former President Donald Trump used
to impose tariffs on imported steel and aluminum. - more
5 Minutes With ID: Paul Reilly on Selling Through Tough Times - Sales
guru Paul Reilly discusses what it's been like for salespeople to
adjust their tactics during the pandemic, and what he's preaching to
sales pros coming out of it. - more
Nickel closed Monday's trading
session at $7.77/lb ($17,125/tonne). Indicators at 6:05 am CST today show
nickel trading unchanged .
Stockpiles of nickel stored in LME licensed warehouses fell on Monday
and ended that session just under the 249,400 tonne level. Nickel
climbed back above the $17,000.tonne level yesterday, and so far this
morning, has moved very little. The Euro is trading higher again, which
adds positive sentiment, but apparently not enough to move the trading
price. Interesting read below "No commodities super-cycle....".
Apparently the Asian markets are more skeptical of a so-called
commodity super cycle, than some of the western metals analysts have
been. We have spent a lot of time in the last few years, talking about
the on again, off again, nickel export ban out of Indonesia. For years,
Indonesia seemed more like an island chain of 'potential' nickel
mining, but little more. After the so called 'pig nickel' became so
popular, Indonesia played catch up to the Philippines, but in just a
few short years, has become a major player in the nickel industry. And
not just nickel mining. Every day it seems like a foreign investor is
committing to building a mine, a smelter, or manufacturing EV batteries
in that country. If you haven't noticed yet, you soon will. Indonesia
appears to be offering a serious economic challenge to China, so this
could get interesting in the coming years. It's the "well it's no
longer Monday" day. Stay safe out there and have a great day!
Average price of LME traded cash nickel
so far this month
- $8.01/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - China crackdown on prices subdues industrial metals - more
Monday's market review - Copper up, but potential Chinese
price curbs weigh - Copper prices rose on Monday as a softer dollar
spurred modest purchases, but gains were capped by concerns over price
curbs on industrial metals in top consumer China. - more
No commodities 'super-cycle' but copper demand from green economy
bright - Commodities markets are unlikely to experience a “super-cycle”
in the next few years, experts and audience polled at an online metals
seminar on Tuesday said. - more
Taiwan’s Yusco & Tang Eng expected to raise stainless steel prices
for Jun - Yieh United Steel Corp. (Yusco) and Tang Eng Iron Works Co.,
Ltd., two leading stainless steel upstream suppliers in Taiwan, will
successively announce their prices for June next week. - more
Iron Ore Price Caves But Miners Remain Hugely Profitable, For Now -
Chinese Government pressure on steel mills and commodity traders
started to pay off earlier today when the iron price fell below $200 a
ton for the first time in three weeks. - more
Indonesia says building $1.2 bln battery plant with S.Korea's LG -
State-owned Indonesia Battery Corporation (IBC) and South Korea's LG
will build a new battery plant worth $1.2 billion with the capacity of
10 gigawatt hours (GWh), Indonesia's investment minister said on
Monday. - more
Global steel price records continue to be broken - Steel
transaction values are at levels not seen before. The MEPS global
averages, for strip mill products, moved to new record highs in May. - more
Molybdenum Trade Rises - We looked at chrome in the last issue
and cover molybdenum (moly) in this one. Moly is less easy to cover in
that the processing stages vary from other raw materials used in
stainless. - more
Courtesy AISI - In the week ending on May 22, 2021, domestic raw steel
production was 1,793,000 net tons while the capability utilization rate
was 79.0 percent. Production was 1,223,000 net tons in the week ending
May 22, 2020 while the capability utilization then was 54.6 percent.
The current week production represents a 46.6 percent increase from the
same period in the previous year. - more
Nickel closed Friday's trading
session at $7.58/lb ($16,715/tonne). Indicators at 6:00 am CST today show
nickel trading around $.06/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Friday and start the week just under the 249,700 tonne level. Nickel's
tradng price decline on Friday was pretty dramatic, but thanks to a
rising Euro, the price has stabilized this morning. It was the lowest
close this month. The talk is all about China, as it typically is, and
the market's fear that China might take some measure to keep commodity
price hikes in check. It is possible they may try something, as their
effort to curb steel output has so far, proved unsuccessful, and two
birds could be easily hit with one stone here. US stainless steel
surcharges for June are out and it's been many years since they have
been this high (updated here).
Still looking for a June banner sponsor and if you are interested
please contact us. It's the beginning of the final work week of the
fifth month of 2021. Stay safe out there and have a great week.
Average price of LME traded cash nickel
so far this month
- $8.04/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Base metals decline as China's regulatory curbs spook traders - more
Friday's market review - Copper extends retreat on fears
over Chinese price crackdown - Copper prices eroded further on Friday
as some investors took profits and others worried about threats by top
consumer China to curb surging commodity prices. - more
April 2021 crude steel production - World crude steel production for
the 64 countries reporting to the World Steel Association (worldsteel)
was 169.5 million tonnes (Mt) in April 2021, a 23.3% increase compared
to April 2020. - more
Taiwan becomes main stainless steel buyer of Indonesia - According to
the Chinese government policy, the export tax rebate from China of
certain steel products has been canceled from May 1st, which almost
cover all kind of stainless steel products. - more
China's Huayou invests in $2.1 bln Indonesia nickel project - China’s
Zhejiang Huayou Cobalt Co said on Monday it would partner electric
vehicle battery maker EVE Energy and others in a $2.08 billion nickel
and cobalt project in Indonesia. - more
Generalist funds flow back into mining as prices, inflation climb -
Surging prices for commodities, stronger balance sheets and rising
inflation have lured back to mining stocks generalist investors that
for years shunned the sector, data shows. - more
ISM: 2021 US Manufacturing Revenue to Grow 7.2% - The Institute for
Supply Management, perhaps best known for its monthly manufacturing
Purchasing Managers Index (PMI), is forecasting solid industry growth
for 2021. - more
Nickel closed Thursday's trading
session at $7.78/lb ($17,150/tonne). Indicators at 6:30 am CST today show
nickel trading around $.01/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Thursday and started today's session just under the 250,300 tonne
level. Nickel fell in overnight trading, but has recovered most of that
loss in this morning's trade. Yesterday's $200 tonne loss remains in
place. It's been a choppy month, with last week's recovery vaporized in
this week's trading. One day we are teasing the $18,000 tonne level and
a few days later, we are nearer the $17,000/tonne level. And this is
the second time this month we can say that. Volatility implies traders
nerves are getting frayed and only time will tell if the bulls or bears
benefit the most from the uncertainty. China continues to express its
concern over high commodity prices, but we tend to believe most of this
is aimed at iron ore prices, which China is forced to buy much of from
Australia; a country they are having quite a spat with at the moment.
However, any action they might take against iron ore, could and likely
would, have a direct impact on nickel as well. Thus, nickel prices are
being affected by geo political spats once again. It's Friday and while
our world leaders can't seem to play well together in the sandbox, they
can all agree that it's Friday. As the most interesting man in the
world might say, "Stay well my friend" and have a great weekend!
Average price of LME traded cash nickel
so far this month
- $8.07/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - LME copper eyes worst week since Sept 2020 on China price curb fears - more
Thursday's market review - Copper up on dollar, strike
possibility in Chile - Copper prices rose on Thursday as a softer
dollar and worries about a strike in Chile spurred purchases, but plans
by top consumer China to manage the supply, demand and prices of
commodities capped gains. - more
Has the bull market in commodities ended after the "pause button" was
pressed? - Has the commodities bull market ended after the "pause
button" was pressed? Only a week apart, the country will once again
strike a heavy blow at commodity prices, which has been very rare in
the past few years. - more
Great commodities boom of 2021 hits ‘healthy pause’ amid wider selloff - more
Allegheny Technologies to Cut 250 Jobs - Pittsburgh specialty metals
producer Allegheny Technologies (ATI) announced this week that it will
cut 250 jobs--more than a third of its workforce. - more
ATI plans to return to the bargaining table on Friday - more
Record opportunities, risks in record-high steel prices - Prices for
flat-rolled steel products have been on a relentless uptrend for the
past nine months, reaching their highest levels in contemporary
history. - more
EU long product prices surge as financial problems grow - more
Rumors about duty increase in China’s steel exports bring uncertainties
to Taiwan’s stainless steel market - It was heard from China’s industry
that the State Council of China may impose additional steel export
tariffs on July 1, especially products whose 13% export tax rebate was
canceled previously, including stainless steel, hot-rolled coils,
cold-rolled coils, and wire rods. - more
Philippine mines bureau boss sees end to open-pit mining ban soon - The
head of the Philippines’ Mines and Geosciences Bureau (MGB) on Thursday
told Reuters he expected a ban on open-pit mining to be lifted soon,
following a government decision to welcome new mining agreements after
a long moratorium. - more
BASF, Canada in early talks on EV battery production - source - Several
companies, including Germany's BASF SE, are in preliminary talks about
tapping a federal clean tech fund to set up production for electric
vehicle batteries in Canada, a government official with knowledge of
the discussions said. - more
5 things you need to know about inflation - Prices are rising. Is it a
temporary response to pandemic recovery -- or cause for serious
concern? - more
The Challenges Ahead for Outside Salespeople - more
Nickel closed Wednesday's trading
session at $7.99/lb ($17,350/tonne). Indicators at 6:05 am CST today show
nickel trading around $.02/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Wednesday and started today's session just under the 250,500 tonne
level. Stockpiles are now below where they ended on March 1st, a day
before stockpiles reported a huge gain of over 8,200 tonnes. The
$18,000/tonne level once again put up a wall that the nickel bulls
could not break thru, and nickel has been in a slide since. For those
who remain skeptical of technical trading, worldwide markets soured on
inflationary concerns just about the time nickel was able to get back
to the $18,000/tonne level, and have followed the market's negative
sentiment since. So far this morning, nickel is trading subdued, with
tin the only base metal trading in the green at the moment. Posco
bought a 30% stake in the Ravensthorpe nickel mine from First Quantum
for $240 million dollars. To give you an idea of what kind of bargain
this is, this mine cost BHP $2.2 billion dollars to build, and when
they closed it in January 2009, less than a year after its opening,
they took at $3,6 billion dollar write off. So for a "mega mine" that
has never lived up to its full potential, the price of $240 million
dollars is, in our opinion, quite a bargain. It's Thursday and the
downhill slide is in full swing. Stay safe out there and have a great
day!
Average price of LME traded cash nickel
so far this month
- $8.08/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper up on dollar, strike possibility in Chile - more
Wednesday's market review - Copper sinks as inflation
fears eclipse South American political risk - Copper prices fell on
Wednesday as rising inflation pushed investors into a risk-off
sentiment, offsetting the impact of potential supply disruptions in the
top producing region of South America. - more
January to March 2021 Metals Balances - The nickel market was in
deficit during January to March 2021 with apparent demand exceeding
production by 18.5 kt. In the whole of 2020, the calculated surplus was
95.4 kt. - more
Canada's First Quantum sells Australia nickel mine stake to POSCO for
$240 mln - Canadian copper miner First Quantum Minerals on Wednesday
said it agreed to sell a 30% stake in its Ravensthorpe nickel mine in
Western Australia to South Korean steel maker POSCO for $240 million. -
more
BHP : Q&A transcript - Thanks for those opening remarks. So now we
have our fireside chat, and just to remind everyone that audience
members can ask questions via the broadcast panel, and James and I will
try to work those in. - more
Who’s looking out for the metal fabricators? - Domestic metal
manufacturing companies appear to be paying the tab in the current
trade war - more
9,700 tons of nickel at Paducah DOE site could bring millions into the community - more
Why U.S. Hiring Slowed - Employers
added a comparatively paltry 266,000 jobs in April, down drastically
from March. Is there a labor shortage? Are higher unemployment benefits
to blame? - more
A Strange Interstellar Comet Discovery Hints at a Solar System Like Our Own - The
"unexpected finding" of nickel gas around interstellar comet 21/Borisov
lines up with "astonishing" new observations of local comets,
scientists say. - more
Nickel closed Tuesday's trading
session at $8.16/lb ($17,980/tonne). Indicators at 6:05 am CST today show
nickel trading around $.09/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Tuesday and ended that session just below the 252,100 tonne level.
Yesterday, stockpiles fell by over 1,000 tonnes for the third
consecutive session. Cancelled warrants, which nearly hit 29% a few
weeks ago, settled below the 27% level yesterday. The commodity board
is a sea of red this morning, with cattle, hogs, and rice the only
items trading in the green at the moment. Worldwide equity markets are
trading in the red as well, with investor concerns about the threat of
inflation apparently muffling otherwise positive economic news. In the
mean time, we had another reader confirm demand in the U.S. exceeds
supply in some areas of stainless steel product, and the 'concern' for
future supply is forcing end users to order in excess to protect
themselves. Thus like the toilet paper crisis in the early days of the
pandemic, end users are taking measures they feel necessary to keep
their establishment up and running. No one really blames them.
Purchasing agents are paid to do just that - protect production with
product on hand when needed at a competitive price. And when supply is
limited, that protection typically comes at the cost of the
'competitive ' price. We do not have a top banner sponsor for the
month of June. If anyone is interested, please contact us at info at
estainlesssteel.com and please put "stainless steel" in the subject
line so we don't delete you along with the multitude of spam loaded
with Lord knows what we get daily. It's hump day - stay safe and have a
great day!
Average price of LME traded cash nickel
so far this month
- $8.09/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper falls on inflation fears, Glencore's African mine restart plan - more
Tuesday's market review - Slumping dollar boosts base
metals, zinc hits 3-year high - Most industrial metals prices rose on
Tuesday as investors betting on a long period of low interest rates
bought riskier assets, pushing global stock markets higher and dragging
the dollar to its weakest since February. - more
Take it to the limit - Credit
limits and financing within the steel industry are becoming the major
topic of the day, even ahead of material availability. - more
DMCI expects strong recovery this year - DMCI Holdings Inc., the
diversified conglomerate controlled by the Consunjis, expects a strong
recovery this year due although a return to its pre-pandemic
performance is not seen until 2023. - more
Vladimir Potanin Confirms Major Cuts to Sulphur Dioxide Emissions in Norilsk - Vladimir
Potanin, CEO of Nornickel, the world’s largest producer of palladium
and high-grade nickel, has confirmed that the company is on track to
drastically reduce sulphur dioxide emissions in Norilsk. - more
China's Lygend starts production at Indonesian nickel-cobalt HPAL plant
- China's Lygend Mining said on Wednesday its $1.05-billion nickel and
cobalt smelting project in Indonesia had churned out its first batch of
mixed hydroxide precipitate (MHP). - more
China-Australia relations: is this the start of ‘mining boom 2.0’ as
Canberra rakes in cash from iron ore rally? - China is making Australia
rich as record-breaking iron ore prices lift revenues for both miners
and the Australian government, despite a long-standing bilateral
political conflict, but Australia is unlikely to enjoy another
decade-long mining “boom”, according to analysts and economists. - more
Canadian miner Sherritt names industry veteran Leon Binedell as new CEO
- Canadian miner Sherritt International Corp on Tuesday named industry
veteran Leon Binedell as its new chief executive officer, replacing
David Pathe who had announced in November his decision to step down
from the role. - more(unless things have changed recently, Mr Binedell is now barred from entry into the US as part of the Helms-Burton Act)
Nickel closed Monday's trading
session at $8.13/lb ($17,930/tonne). Indicators at 6:00 am CST today show
nickel trading around $.12/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Monday and ended that session just below the 253,400 tonne level. The
last time we saw nickel stockpiles grow was April 21st, and we started
the year just shy of the 248,000 tonne level. Price wise, nickel
remains bullish and the 'correction' of last week is over, with prices
back where they were before the drop. We will have to see if the
$18,000 level puts up the same level of resistance it did earlier this
month, but so far this morning, nickel is trading nearly $200/tonne
over that level and has stalled, but has yet to show signs of retreat.
The Euro continues to climb against the US Dollar and adding positive
momentum to traders looking for a reason to remain bullish. Your
average cost of 300 series stainless steel primary ingredients for
April 2021 and their change from March are 1) Nickel - $7.48/lb 2) Molybdenum - $11.26/lb 3) Chromium - $3.53/lb 4) Iron - $1.04/lb .
Based on those numbers, one might think stainless steel prices were
pretty stable during the month, but we haven't heard many reports of
that. Stay safe and enjoy your Tuesday!
Average price of LME traded cash nickel
so far this month
- $8.08/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Slumping dollar boosts base metals, zinc hits 3-year high - more
Monday's market review - Copper turns higher as strike
risk offsets weak China data - Copper rose back towards last week’s
record high on Monday as the threat of strikes at mines in Chile and a
belief among investors that prices will rally further offset weak
factory data from top metals consumer China. - more
Russia's stainless steel imports slide in Q1 2021 y-o-y - According to
statistics released by the Russian Special Steel and Alloys Consumers
and Suppliers Association (SpetsStal Association), compared to the
figure in the first quarter of 2020, Russia's stainless steel imports
reduced by 7%, amounting to 91,555 tons in the first quarter of this
year; however, the figure was up by 37.7% compared to the same period
in 2019. - more
Chinese Steel Export Ban Could Cut The Iron Ore Price And Hurt
Australia - A ban on steel exports is one way China might achieve it’s
aim of reducing the price of iron ore and delivering a fresh blow to
its trade-war target, Australia. - more
China April crude steel output hits record despite production controls - more
The commodity boom and Sault Ste. Marie - Suddenly, commodities are
popular again. Just before Christmas, Goldman Sachs Group released a
market outlook that predicted the onset of a new commodity bull market.
- more
BHP CEO Lays Out How World’s Number-Two Miner Is Adapting to ESG
Pressure - To environmentalists, the idea of investing in a metals and
oils producing conglomerate might seem beyond the pale. - more
Courtesy AISI - In the week ending on May 15, 2021, domestic raw steel
production was 1,799,000 net tons while the capability utilization rate
was 79.2 percent. Production was 1,223,000 net tons in the week ending
May 15, 2020 while the capability utilization then was 54.6 percent.
The current week production represents a 47.1 percent increase from the
same period in the previous year. - more
EU, US Temporarily Suspending Tariffs in Steel Dispute - The European
Union and the United States on Monday decided to temporarily suspend
measures at the heart of a steel tariff dispute that is seen as one of
the major trade issues dividing the two sides. - more
Nickel closed Friday's trading
session at $7.96/lb ($17,540/tonne). Indicators at 6:00 am CST today show
nickel trading around $.04/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Friday and started the week just under the 255,000 tonne level. Nickel
is trading higher this morning, but off earlier highs. Friday's rebound
was helped by a resurgent Euro, which continues to gain this morning.
Year to date nickel prices are up 5.6%, and amongst base metals, trails
the pack. Copper is up nearly 32% and aluminum is up 24%+, but tin
takes the prize with a YTD gain of over 45%. Zinc and lead are both up
under 10%, but have increased more than nickel. That said, it is a
reminder that as bad as nickel price increases are, they could be much
worse. And before things settle down again, they might. Some of the
stainless steel price increases we are seeing coming out of China are
mind numbing, and appear to reflect more of a resurgence in demand,
than mirroring any price instability in nickel. It's a new week, and we
are not only half way thru the month, but also half way thru the second
quarter of 2021. Stay safe out there and have a great week!
Average price of LME traded cash nickel
so far this month
- $8.08/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - London copper edges up on Chilean supply worries - more
Friday's market review - Copper heads for weekly loss,
retreating from record high - Copper prices were on course for their
first weekly decline since the start of April on Friday as rising
inflation fears and a dip in demand from China dragged prices down. - more
COVID-19 Impact & Recovery: Metals and Mining Outlook for H2 2021 -
The last 12 months have been a dynamic time for the metals and mining
industry, with the sector facing sharply lower prices early in the
COVID-19 pandemic only to see many commodities hit multiyear highs in
recent months. Here are three big trends to watch for the rest of 2021
and beyond. - more
Supply squeeze and demand upturn will keep base metal prices up -
Rebound in demand from two big countries, China and the US, as they
spend more on on infrastructure development has led the rise in demand
- more
Jim Rogers is bearishly bullish on commodities - Jim Rogers, the
investment guru and author of the best seller Investment Biker, who got
started in business at the age of five selling peanuts, is cautiously
betting on what he knows intrinsically from childhood—commodities. - more
Iron ore and steel prices reach record highs this week globally - more
Steel prices: How we got here and what could happen - more
Rocketing Chinese steel prices prompt regulator to warn mills -more
Sanjeev Gupta-owned GFG's steel and aluminium assets - Britain's
Serious Fraud Office (SFO) is investigating Gupta Family Group Alliance
over suspected fraud, fraudulent trading and money laundering,
including its financing arrangements with collapsed Greensill Capital,
it said on Friday. - more
Metal Shipments Up Sharply From A Year Ago - In April steel and
aluminum shipments in The United States and Canada have finally
recovered to pre-covid levels. April monthly shipment rates in both
countries for either metal again exceeded the monthly rates for any
month in 2020-2021. - more
Judge delivers new blow to foes of Twin Metals mine - A
federal judge on Thursday rejected a second attempt by opponents of the
proposed Twin Metals copper-nickel mine in northeastern Minnesota to
invalidate the mineral rights leases needed for the project. - more
April US Industrial Output Up a Modest 0.7% - U.S. industrial
production increased for a second straight month in April as more
factories came online after being shutdown by winter ice storms. - more
Average Inflation over the Pandemic Avoids 'Base-Effect' Distortions - more
Nickel closed Thursday's trading
session at $7.81/lb ($17,216/tonne). Indicators at 6:55 am CST today show
nickel trading around $.10/lb
higher. Stockpiles of nickel stored in LME licensed warehouses went
unchanged on Thursday and remain just over the 256,100 tonne level.
Having fallen below $17,100 tonne early this morning, nickel appears to
have returned to its bullish ways - at least for now. The Euro has
reclaimed most of what it lost against the US Dollar on Tuesday, so
that might be helping motivate the buyers. Nickel, for all practical
purposes, has seen all its May gains evaporate, but is holding on to
the big jump it made the last week of April. Busy news and report day
so we leave you with it. Stay safe out there, and have a great weekend!
Average price of LME traded cash nickel
so far this month
- $8.10/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper heads for weekly loss, retreating from record high - more
Thursday's market review - Firm dollar, slowing China loan
data weigh on copper - Copper prices slipped on Thursday as a higher
dollar, weak loan data from top consumer China and worries that Chinese
authorities could cap commodity prices triggered a selloff. - more
Russia's Nornickel resumes full operations at one of its flooded mines
- Russian metals producer Nornickel has resumed full operations at one
of its two mines hit by flooding this year, it said on Thursday. - more
Russian businessman faces £5bn divorce battle after UK court ruling - more
World's biggest steel producer sees order book fills as China rebounds
- Tsingshan Holding Group, the world's biggest stainless steel
producer, has sold the entire output of its Chinese plants through
June, said two sources familiar with its sales, a sign of potentially
strong domestic demand for the metal. - more
China iron ore futures fall over 7% after record-setting spree - more
Acerinox predicts optimistic market for H2 2021 - Acerinox, a Spanish
stainless steel group, indicated that it was optimistic about the
second half of 2021, with 80% more orders than in March 2020, 40% more
than in March 2019. - more
Tesla in talks with Chinese company for low-cost battery supply deal -
Tesla is in talks with Chinese battery maker EVE Energy to add the firm
to its Shanghai factory supply chain, sources said, as it seeks to
boost procurement of lower cost batteries. - more
Analysis: Japan Inc squeezed by surging costs and frugal consumer fears
- At his factory in Tokyo, Shigeki Kato has a grim strategy to deal
with rising costs that threaten profit margins: grin and bear it. - more
Crazy metal prices inflate miners’ capex conundrum - Soaring commodity
prices should be a green light for global miners. At $10,000 and $200 a
tonne, copper and iron ore are both way above the levels at which it
makes commercial sense for BHP, Rio Tinto and others to start digging
new holes. - more
Commercial freight tonnage slumped in March, DOT stats show - As
supply chain issues crimped truck freight, index fell to lowest level
since June 2020 even while nation’s economy continued to soar, BTS
says. - more
Nickel closed Wednesday's trading
session at $8.14/lb ($17,942/tonne). Indicators at 6:00 am CST today show
nickel trading around $.33/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Wednesday and ended that session just over the 256,100 tonne level.
Nickel is dropping like a rock this morning, down just over 3% at the
moment. Shanghai nickel ended from 2-1/2 to 3-1/2% lower overnight,
depending on what contract was being traded. Reuters gives a bucket
list of reasons in their morning briefing below, so we let them give
the reasons 'why'. We tend to think the big traders felt the market was
over extended and it was time to take some profits off the table; the
profits being mostly at the expense of the fund investors, who don't
typically make trading decisions on a daily basis. In other words, what
might be helping you today, in lower nickel prices, could easily be at
the expense of your retirement fund later on. Base metals are notorious
for attracting the 'get rich quick' small trader, who see the
exaggerated spikes as opportunity, only to wake up and find a rout is
the rule of the day. Stainless steel users are less concerned with the
degree of the up and down movements, all they see is the dreaded price
volatility. It's 'almost Friday'. Stay safe and have a great day!
Average price of LME traded cash nickel
so far this month
- $8.15/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Firm dollar, slowing China loan data weigh on copper - more
Wednesday's market review - Copper clings to gains near
record high on demand hopes - Copper climbed on Wednesday as
expectations of strong demand in a lower carbon economy and a recovery
from the pandemic in Western nations lured in funds. - more
Taiwan’s stainless steel export prices boosted by China's cancellation
of export tax rebates - China started to implement a new export tax
rebate policy on May 1, including the cancellation of a 13% export tax
rebate on stainless steel products, which blocked China’s stainless
steel exports. - more
The infrastructure war between China and the United States is fuelling
the commodities rally - There are all sorts of wars, a shorthand term
beloved by politicians, economists and journalists. There is the trade
war, the diplomatic war, the new Cold War, the war against the
pandemic. - more
U.S. Job Openings Soar to Highest Level on Record - U.S. employers
posted a record number of available jobs in March, illustrating starkly
the desperation of businesses trying to find new workers as the country
emerges from the pandemic and the economy expands. - more
Nickel closed Tuesday's trading
session at $8.16/lb ($17,995/tonne). Indicators at 6:00 am CST today show
nickel trading around
unchanged. Stockpiles of nickel stored in LME licensed warehouses fell
on Monday and now totals just under the 256,500 tonne level. Nickel is
unchanged this morning, a rarity even when markets are quiet, but the
second time we've reported it this month already. What was the
$16,000/tonne level offering support a few weeks ago, is now the
$18,000/tonne level offering some resistance. We've seen nickel trade
over the $20,000/tonne earlier this year, so we have some room before
we start testing highs. Stainless steel prices around the world
continue to rise. Considering equities took another bath yesterday,
nickel, and the base metals sector as a group, held up defiantly. Asian
equity markets continued their slide overnight, European markets are
rebounding this morning, and US futures remain questionable. So some
hesitancy in nickel this morning, is not entirely unexpected. It's hump
day and day twelve of May. Stay safe out there and have a wonderful
day.
Average price of LME traded cash nickel
so far this month
- $8.15/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper holds near record high on inflation worries, demand hopes - more
Tuesday's market review - Copper bounces back as bullish
investors bet on shortages - Copper prices rebounded on Tuesday as
investors renewed their buying spree, hoping that supply constraints
and buoyant demand would push the market to new peaks. - more
Yusco’s fire accident brings uncertainties to stainless steel prices -
Nickel prices have rebounded strongly since the end of April. The base
price of 304 2B cold-rolled stainless steel in Asia hiked by US$50 in
total last week. - more
What does the China ‘trilemma’ mean for metals? - China may want
commodity prices to stabilise but its environmental and economic goals
suggest demand will remain strong. - more
China steel futures extend gains on production curb worries, peak season demand - more
Pacific Nickel Mines acquires 80pc of Kolosori Nickel Project - Pacific
Nickel Mines (PNM) has officially acquired an 80-per-cent interest in
Kolosori Nickel (KNL). - more
How Distributors Can Sustain Growth in the New Normal - Blind spots can
undercut even the best-laid plans for growth. Here's how distributors
can keep potential pitfalls in sight. - more
Critical US infrastructure can be hacked by anyone - The rise of the
Internet of Things (IoT) has ushered in a new niche of widespread
security vulnerabilities. (dated July 2020) - more
How to protect our critical infrastructure from attack (dated March) - more
Colonial pipeline hack claimed by Russian group DarkSide spurs emergency order from White House - more
Nickel closed Monday's trading
session at $8.05/lb ($17,745/tonne). Indicators at 6:00 am CST today show
nickel trading around $.11/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Monday and ended that session just below the 258,300 tonne level.
Nickel lost around $400/tonne during a two hour correction yesterday
afternoon. This morning the commodity board has far less red showing
and nickel has gained back around $200 of that late day loss. Not
really sure what caused the market to have a mini correction yesterday,
but commodities, as well as equities, got a case of the late day
nerves. Equities around the world are still showing the jitters this
morning, but base metals are all trading in the green. Media coverage
seems to be pointing the finger everywhere, but inflation concerns get
a majority of the blame. Inflation can sometimes be good for those who
trade in rocks. It's Tuesday and day two begins. Stay safe out there
and have a great day!
Average price of LME traded cash nickel
so far this month
- $8.15/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper bounces back as bullish investors bet on shortages - more
Monday's market review - Copper slips amid investor
jitters after rallying to peak - Copper slipped on Monday after
touching a new record peak as bullish investors who recently entered
the surging market became nervous about a possible correction. - more
Fire accident occurred in Taiwan’s Yusco on May 9 - Yieh United Steel
Corp. (Yusco), a leading stainless steel mill in Taiwan, faced a fire
accident in its mill in Kaohsiung last night (May 9). - more
Charges laid over New Caledonia's Vale unrest - Charges have been laid
against six Kanak leaders in connection with last December's violence
at the Vale nickel plant in New Caledonia. - more
Courtesy AISI - In the week ending on May 8, 2021, domestic raw steel
production was 1,774,000 net tons while the capability utilization rate
was 78.1 percent. Production was 1,223,000 net tons in the week ending
May 8, 2020 while the capability utilization then was 55.4 percent. The
current week production represents a 45.1 percent increase from the
same period in the previous year. - more
Transforming the Distribution Supply Chain With a Connected Network - To
compete with the leaders in the industry, distributors need total
supply visibility that allows them to achieve better planning,
procurement, storage, customer experience and delivery practices. - more
March Metalworking Machinery Orders Accelerate 16% From February - more
Stainless steel: everything you need to know - Stainless steel is known
for its excellent resistance to corrosion. It is used in many aspects
of our day-to-day life such as heavy industry, architecture, real
estate, automobile manufacturing, surgery and dentistry and the list
goes on. - more
Nickel closed Friday's trading
session at $8.19/lb ($18,053/tonne). Indicators at 6:05 am CST today show
nickel trading unchanged .
Stockpiles of nickel stored in LME licensed warehouses fell on Friday -
it's twelfth straight session - and start this week just under the
259,100 tonne level. The $18,000 tonne level continues to put up some
psychological resistance, although the bullish sentiment appears to be
very strong. If you want to know where the term 'hot commodity' comes
from, look at any commodity trading board and you'll get an idea.
Everyone wants to own some rocks with something inside of them, and
those who already do, are reaping the reward of earlier buys.
Downstream users, like the stainless steel industry have been here
before, and will be here again. It's been far worse than this for them,
so the experienced, old timers just accept it and move on. This may be
new for the EV industry, so we say welcome to the cart, being pulled
behind the bull. It's not the most scenic ride you'll ever take, and it
has some odourous disadvantages, but you can still say you are along
for the ride. It's Monday and the second week of the fifth months
begun. Stay safe out there and have a great day!
Average price of LME traded cash nickel
so far this month
- $8.14/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper hits record high on higher demand hopes, tighter supply - more
Friday's market review - Copper scales record high on
industry and speculative buying - Copper burst higher on Friday to a
record peak, fueled by speculators and industrial buyers on the back of
rosy economic data as Western economies recover from the pandemic. - more
Tsingshan & Hongwang jointly invest in Indonesian stainless steel -
A project kickoff of Tsingshan Group and Hongwang Group’s joint
investment of building a stainless steel cold rolling project in
Indonesia was held from April 27 to 28, 2021. - more
Low carbon world needs $1.7 trillion in mining investment - Mining
companies need to invest nearly $1.7 trillion in the next 15 years to
help supply enough copper, cobalt, nickel and other metals needed for
the shift to a low carbon world, according to consultancy Wood
Mackenzie. - more
One Worker Dead In New Caledonia Power Plant Blast - An explosion
rocked a power plant supplying electricity for a metals processing site
in France's Pacific territory of New Caledonia Monday, killing one
employee, its operator said. - more
Door open for Twin Metals? - Biden’s
AG Secretary says administration looking to find balance between
preservation and economic growth in country’s rural areas - more
Nickel closed Thursday's trading
session at $8.12/lb ($17,900/tonne). Indicators at 6:05 am CST today show
nickel trading around $.07/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Thursday and ended that session just under the 260,000 tonne level.
Showing some hesitation at the $18,000/tonne level, nickel is trading
just north of that level this morning. Interesting article below titled
"A Tale of Two Hemispheres". While it was a full week in the US. it was
shorter by a day in much of the rest, and much shorter for the Chinese.
We hope it was a good one for you and that your weekend proves better.
Stay safe out there, Happy Mother's Day to those of you qualified, and
have a great weekend!
Average price of LME traded cash nickel
so far this month
- $8.13/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper hits record high on industry and speculative buying - more
Thursday's market review - Aluminium extends rally as
China-Australia spat deepens - Aluminum on Thursday approached levels
not achieved since 2018, closing in on $2,500 a tonne as positive
economic data and rising tensions between top producer China and major
raw materials supplier Australia added momentum to the rally. - more
US' stainless steel shortage expected to continue in short term - In
the US, the imbalance between the supply and demand of stainless steel
flat products caused by the epidemic will intensify in the coming
months. In this market, severe shortages are unlikely to be resolved in
the short term. - more
ISRI2021: A tale of two hemispheres - Two stainless steel and nickel
industry analysts who spoke at the ISRI2021 Nickel and Stainless
Spotlight session described a stainless steel market with a very
different production method in China versus most of the rest of the
world. - more
Full year 2020 data show gradual return to growth as EU COVID measures
recede - EU28 apparent steel consumption fell (-11.1%) in 2020. It is
set to rebound (+11.7%) in 2021. - more
Updated EU industrial policy strategy shows
firm EU support for steel sector’s decarbonisation efforts in
post-COVID era – Steel industry sees urgency for EU Steel Action Plan -
more
Hundreds of US manufacturing companies ask President Biden to terminate
Section 232 steel & aluminum tariffs - A group of over 300
businesses manufacturing in the U.S. - from family-owned metalforming
shops to nationally branded companies - sent a letter to President Joe
Biden today requesting the immediate termination of the Section 232
steel and aluminum tariffs that were initiated three years ago under
the Trump administration. - more
Fastenal Sees Narrow April Sales Growth as Fasteners Far Outperform Safety - more
Nickel closed Wednesday's trading
session at $8.17/lb ($18,013/tonne). Indicators at 6:00 am CST today show
nickel trading around $.05/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Wednesday and started today's session just over the 266,500 tonne
level. Nickel fell as much as $500/tonne early this morning, but has
bounced back. Canceled warrants for LME nickel have jumped over the
past few days. After spending April in the 23-24% range, that number
jumped to 27% yesterday and near 29% today. This means someone is
reserving nickel, and it remains to be seen if this is a reflection of
an increase in actual demand - or merely a way for the largest of the
traders to make demand look higher than it actually is, with the nickel
being quietly moved out of LME warehouses but not actually being used.
It's been done before and there is nothing illegal about it, so a
question mark now resides over the cancelled warrant number. It's
Thursday and we are on the downhill slide. Stay safe out there and have
a great day!
Average price of LME traded cash nickel
so far this month
- $8.13/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Aluminium extends rally as China-Australia tensions add to supply fears - more
Wednesday's market review - Copper hits 10-year high on
hopes for demand - Copper hit a fresh 10-year high on Wednesday as some
of the world’s largest economies showed signs recovery from the
COVID-19 impact, boosting expectations of increased demand. - more
Strong demand, savings help steelmaker Outokumpu beat forecasts -
Finnish stainless steel maker Outokumpu on Thursday posted stronger
than expected first-quarter earnings, aided by cost-cuts, increased
demand and lower raw material costs. - more
AISI Releases April SIMA Imports Data - Based
on the Commerce Department’s most recent Steel Import Monitoring and
Analysis (SIMA) data, the American Iron and Steel Institute (AISI)
reported today that steel import permit applications for the month of
April totaled 2,452,000 net tons (NT)*. This was a 9.9% decrease from
the 2,722,000 permit tons recorded in March and a 6.3% increase from
the March final imports total of 2,308,000. - more
Fastener Distributor Index Slows Considerably in April; Outlook Remains High - Sales
eased from sky-high levels in March to still strong performance last
month, while supply chain and freight concerns persist. - more
Nickel closed Tuesday's trading
session at $8.00/lb ($17,635/tonne). Indicators at 6:00 am CST today show
nickel trading around $.16/lb
higher. Stockpiles of nickel stored in LME licensed warehouses have
fallen the last few sessions and started today just over the 261,200
tonne level. Remember way back, eight working days ago, when nickel was
trading at $16,000/tonne. This morning, it has already peaked at
$18,000/tonne. You are welcome to make up whatever reason you like for
this bullish turn. 2020 was forecast to be the year the world ran out
of nickel, but so far nickel stockpiles have gained consistently. So
either the bulls think they know something you don't, or they hope they
know something you don't, or they are merely trying to take as much
money from the late rally arrivals as they can. We will give them one
thing. You can't turn on the news anymore without there being a story
on something the world is short on - from semi conductors to cars to
chickens to chlorine tablets. Nickel, of course, does not start with
the letter "c" and thus, we are not running out of it, yet. It is
however, increasing in price along with nearly everything else. More
reports than news stories today. China returns to work tonight
(tomorrow) and it will be interesting to see how quickly they can play
catch up to this London rally. One thing that certainly comes with
higher nickel prices - higher stainless steel prices. Have a safe and
great hump day!
Average price of LME traded cash nickel
so far this month
- $8.10/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning -Copper hits 10-year high, eyes record levels on demand hopes - more
Tuesday's market review - Copper prices resume climb
towards $10,000/t - Copper prices climbed back towards $10,000
per tonne on Tuesday, supported by prospects for higher demand while
inventories dwindle. - more
China’s metal imports from Myanmar show mixed trends post the coup -
Chinese trade data gave a mixed snapshot of neighbor Myanmar’s ability
to keep up metal shipments in March amid unrest after February’s coup,
with flows of nickel pig iron (NPI) dwindling to almost nothing but
those of copper doubling month-on-month. - more
South African market reels from steel shortages - South Africa has not
been spared the global trend of steel shortages created by the
coronavirus pandemic. - more
Nickel closed Friday's trading
session at $8.01/lb ($17,665/tonne). Indicators at 6:05 am CST today show
nickel trading around $.13/lb
higher. LME stockpile numbers are delayed this morning and will be
updated tomorrow. For the month of April they rose 1800 tonnes. The
bull continues to run amongst all LME traded base metals, with nickel's
+2% increase this morning, once again leading the pack. LME cash nickel
averaged $20/tonne more in April than it did in March, and now you know
why we used the term 'channel' so often. Technicals are flashing nickel
is overbought, but continue to tip to the bullish side. Chinese markets
remain closed until Thursday for Labour Day. Ton of news and reports
below. We asked last Thursday what ever happened to all the dire
forecasts of peak nickel. On Friday, Andy Home of Reuters asked a
similar question and his article can be found below. We want to welcome
back Duraloy Technologies as
our May banner sponsor. It is thanks to Duraloy, and our side banner
sponsor, ELG Metals, that this page is updated daily and kept current.
Please visit their web sites and see if they offer a service you might
benefit from. It's Tuesday, and the fourth day of the fifth month of
2021. Stay safe out there and have a great day!
Average price of LME traded cash nickel
so far this month
-
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper prices resume climb towards $10,000 - more
Friday's market review - Copper deflates below $10,000
ahead of holiday in China - Copper drifted lower on Friday, hovering
below the $10,000 level it briefly broke through a day earlier as the
dollar strengthened and some speculators locked in profits. - more
Indonesia, the puzzle of nickel's competing narratives: Andy Home - The
global nickel market recorded a supply-demand surplus of 108,000 tonnes
last year and is on track to record another 45,000-tonne surplus this
year, the International Nickel Study Group (INSG) found. - more
Industry worries about prospects of stainless steel exports after China
adjusts tax rebate - Recently, China canceled the export tax rebate on
steel products, covering almost all of the stainless steel products.
The industry has expressed concerns about China's stainless steel
exports in the future. - more
Indonesia's
Antam Q1 nickel ore output up more than four-fold y/y - Indonesian
state miner Aneka Tambang (Antam) said on Monday its nickel ore output
rose more than four-fold in the first three months of 2021 compared to
the same period a year ago. - more
EU imposes provisional AD duties on stainless steel cold-rolled flat
products from India & Indonesia - The European Commission announced
on April 30 that a provisional anti-dumping (AD) duty will be imposed
on stainless steel cold-rolled flat products originating in India and
Indonesia, which will be implemented after the full announcement in the
official gazette. - more
High steel prices not eroding demand across industry - yet - Steel
prices just keep moving higher and higher. At some point, prices will
get too high, and fabricators and manufacturers will stop buying.
Demand will stall. Or so goes the conventional wisdom. But it hasn’t
happened yet, and it may not this year. - more
The rise and fall of metals tycoon Sanjeev Gupta - British
industrialist of the Liberty House group, Sanjeev Gupta’s companies
seemed to be prospering until his main lender, Greensill Capital,
imploded last month. - more
KPMG to oversee companies caught up in alleged nickel fraud - more
Supply Chain Issues Slow April US Manufacturing Growth - Growth in U.S.
manufacturing slowed slightly in April partly due to a snarled global
supply chain after hitting a 37-year high in March. - more
Courtesy AISI - In the week ending on May 1, 2021, domestic raw steel
production was 1,788,000 net tons while the capability utilization rate
was 78.7 percent. Production was 1,238,000 net tons in the week ending
May 1, 2020 while the capability utilization then was 55.2 percent. The
current week production represents a 44.4 percent increase from the
same period in the previous year. - more
(all
ton listings are metric tons = 2204.622 pounds ) Updated Monday thru
Thursday before 7 am CST, Friday version before 8 am CST - DisclaimerOriginal content and opinions copyright
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Daily Nickel/Stainless Steel Briefing 
($17,915/tonne). Indicators at 7:00 am CST today show
nickel trading around $.04/lb 
lower. Stockpiles of nickel stored in LME approved warehouses slipped
on Thursday and ended that session just under the 247,500 tonne level.
We ended 2020 at 246,708 tonnes and after a large gain, we closed
January 4th (the first working day) of this year at 247,980 tonnes. As
you can see, we are very close to going negative for the year. Talks
continue between officials representing Allegheny and USW, and they may
be making some real progress, because the public rhetoric has all but
disappeared in the last week. The United Steel Workers union is working
another big strike in Canada with ArcelorMittal workers. That one has
been going on since May 10th, the Allegheny strike is nearing its third
month. We want to thank Duraloy for sponsoring the month of May.
Companies like Duraloy and ELG Metals make this daily page possible,
and we thank them for that support. The US is honoring its war dead
this coming Monday, in what was once called Decoration Day, but is now
Memorial Day. It is a national holiday and our next update will be on
Tuesday. Have a safe and relaxing weekend and we hope to see you next
week, as we begin a new month. 
Reports
Why Stainless Steel 
Thursday's market review - Copper rises as strike fears
and Chinese data reassure bulls - Copper and other industrial metals
prices rose sharply on Thursday, helped by strong U.S. data, the threat
of strikes at mines in top copper producer Chile and an easing of fears
that China, the biggest consumer, will tighten monetary policy. - 
Column: The human bottleneck in critical minerals supply chains - The
road to decarbonisation will be paved with copper. As well as lithium,
nickel, cobalt and a host of other minerals, all critical for electric
vehicles (EVs), solar panels and wind farms. - 
Chinese industry association outlines seven proposals to safeguard
domestic steel supply - The China Iron & Steel Association (CISA)
proposed an industry self-review initiative on Wednesday, urging the
iron and steel industry to strengthen market order to further promote
high-quality development of the industry while vowing steel enterprises
will adjust their export strategies to safeguard the domestic supply. -
Nornickel has high potential for sustainable development – the Union of
Industrialists - The Russian metal mining giant Norilsk Nickel, which
faced the problem of climate change at its main production sites – in
the Russian Arctic, when a state of emergency was declared in the
Russian Arctic city of Norilsk due to the melting of permafrost, on May
29, 2020 from the fuel tank at the TPP of Norilsk Energy Company No. 3
about 21,000 tons of diesel fuel flowed out into the neighboring river.
- 
POSCO enters battery recycling biz - POSCO will push forward a
lithium-ion battery recycling business together with China's Huayou
Cobalt, as part of the steelmaker's move to strengthen the eco-friendly
business. - 
If you hear your teen mention nickel ore, don't get too excited. It is
doubtful he cares about the nickel ore you care about. Here is why -
Subnautica: Below Zero - Where To Find Nickel Ore - 
Can metal stocks gain their mojo back? Here's what analysts say - With
the latest overhang on the outlook, and after a sharp run-up, can metal
stocks surprise with more returns? Tune in to learn more - 
Exclusive: KPMG managers back liquidation of Singapore firms in $1
billion nickel scandal - Singapore firms accused of being involved in a
$1.1-billion bogus nickel trading scheme should be placed in
liquidation as there was no business to be preserved, interim judicial
managers at accounting firm KPMG have said in a document seen by
Reuters. - 
Biden's EV metals import plan unlikely to match climate goals
-executives - The Biden administration's plan to rely on ally nations
for most of the metals needed to build electric vehicles ignores the
complexity of modern mining and could keep the United States from
meeting aggressive climate goals, according to industry executives. - 
Indian stainless-steel prices stable despite commodity boom: ISSDA - In
the wake of an appeal made by downstream industry bodies to the
Ministry of Steel to regulate steel prices and impose a temporary ban
on steel export, the Indian Stainless Steel Development Association
(ISSDA) has brought to the fore the price situation of Indian stainless
steel industry, and the need to view the price movements and trade
regulations in a holistic perspective. - 
“What gets measured gets done”: the importance of life cycle data - We
all know that climate change is the biggest global challenge. We all
need to work towards a reduction of greenhouse gas (GHG) emissions –
and ideally become carbon neutral by 2050. - 
Taiwan’s Yusco & Tang Eng expected to raise stainless steel prices
for Jun - Yieh United Steel Corp. (Yusco) and Tang Eng Iron Works Co.,
Ltd., two leading stainless steel upstream suppliers in Taiwan, will
successively announce their prices for June next week. - 
Indonesia says building $1.2 bln battery plant with S.Korea's LG -
State-owned Indonesia Battery Corporation (IBC) and South Korea's LG
will build a new battery plant worth $1.2 billion with the capacity of
10 gigawatt hours (GWh), Indonesia's investment minister said on
Monday. -
Global steel price records continue to be broken - Steel
transaction values are at levels not seen before. The MEPS global
averages, for strip mill products, moved to new record highs in May. - 
Philippine mines bureau boss sees end to open-pit mining ban soon - The
head of the Philippines’ Mines and Geosciences Bureau (MGB) on Thursday
told Reuters he expected a ban on open-pit mining to be lifted soon,
following a government decision to welcome new mining agreements after
a long moratorium. - 
BASF, Canada in early talks on EV battery production - source - Several
companies, including Germany's BASF SE, are in preliminary talks about
tapping a federal clean tech fund to set up production for electric
vehicle batteries in Canada, a government official with knowledge of
the discussions said. - 
Canada's First Quantum sells Australia nickel mine stake to POSCO for
$240 mln - Canadian copper miner First Quantum Minerals on Wednesday
said it agreed to sell a 30% stake in its Ravensthorpe nickel mine in
Western Australia to South Korean steel maker POSCO for $240 million. -
Take it to the limit - Credit
limits and financing within the steel industry are becoming the major
topic of the day, even ahead of material availability. - 
Canadian miner Sherritt names industry veteran Leon Binedell as new CEO
- Canadian miner Sherritt International Corp on Tuesday named industry
veteran Leon Binedell as its new chief executive officer, replacing
David Pathe who had announced in November his decision to step down
from the role. - 
Acerinox predicts optimistic market for H2 2021 - Acerinox, a Spanish
stainless steel group, indicated that it was optimistic about the
second half of 2021, with 80% more orders than in March 2020, 40% more
than in March 2019. - 
Analysis: Japan Inc squeezed by surging costs and frugal consumer fears
- At his factory in Tokyo, Shigeki Kato has a grim strategy to deal
with rising costs that threaten profit margins: grin and bear it. - 
Pacific Nickel Mines acquires 80pc of Kolosori Nickel Project - Pacific
Nickel Mines (PNM) has officially acquired an 80-per-cent interest in
Kolosori Nickel (KNL). - 
Charges laid over New Caledonia's Vale unrest - Charges have been laid
against six Kanak leaders in connection with last December's violence
at the Vale nickel plant in New Caledonia. - 
Stainless steel: everything you need to know - Stainless steel is known
for its excellent resistance to corrosion. It is used in many aspects
of our day-to-day life such as heavy industry, architecture, real
estate, automobile manufacturing, surgery and dentistry and the list
goes on. - 
Strong demand, savings help steelmaker Outokumpu beat forecasts -
Finnish stainless steel maker Outokumpu on Thursday posted stronger
than expected first-quarter earnings, aided by cost-cuts, increased
demand and lower raw material costs. - 
Fastener Distributor Index Slows Considerably in April; Outlook Remains High - Sales
eased from sky-high levels in March to still strong performance last
month, while supply chain and freight concerns persist. - 
China’s metal imports from Myanmar show mixed trends post the coup -
Chinese trade data gave a mixed snapshot of neighbor Myanmar’s ability
to keep up metal shipments in March amid unrest after February’s coup,
with flows of nickel pig iron (NPI) dwindling to almost nothing but
those of copper doubling month-on-month. - 
South African market reels from steel shortages - South Africa has not
been spared the global trend of steel shortages created by the
coronavirus pandemic. - 
