Headlines & leaders - (Bloomberg) Buffett Expects `Large Investment
Opportunities' in China // Taiwan Raises Benchmark Interest Rate to 1.5%
After Home Price Increases // China’s Stocks Rise, Capping Quarterly
Gain; Developers Rally // Japan Factory Output Unexpectedly Fell in August,
Adding to Signs of Slump // South Korean Manufacturers' Confidence Falls
to Eight-Month Low in Index // Asian Stocks Slump as Banks Decline on European
Concern; Nintendo Plunges // Spain's Credit Rating Cut One Level by Moody's;
Bonds Rise // Ireland Faces $68 Billion Bank Rescue to Prop Up Allied, Anglo
// Portugal Plans to Cut Wages, Raise Sales Tax to Reduce Budget Deficit
// Russia Sells Nuclear Reactors Decades After Chernobyl Accident // European
Stocks Decline for Fourth Consecutive Day; Allied Irish Tumbles // Fed Presidents
Are Far From Unanimous on Need for Further Monetary Easing // Distressed
Homes Sell at 26% Discount in U.S. as Supply Swells // Whitney Says U.S.
Will Face Bailout of States in Next 12 Months on Revenue // U.S. 30-Year
Mortgage Rate Declines to Record 4.32% // U.S. Postal Service Denied
Rate Increase by Regulator // Business Activity in U.S. Unexpectedly Accelerates
// U.S. Stocks Fall as Technology, Industrial Shares Lead Declines
The Euro is now trading less than 1/10 of 1% lower against the US Dollar.
NYMEX crude is up over 1.8% and trading at $79.29/barrel. Gold is 2/10 of
1% lower and silver is lower by nearly 3/10 of 1%. Base metals ended the
session lower, except for nickel. Indicator charts show nickel opened
lower, gained thru morning trading, fell sharply as US markets tumbled, then
recovered late, only to begin falling again in after market trading. For
the day and month, Dow Jones reports three month nickel ended the day at
$10.61/lb. The price of three
month nickel ended the month of August at $9.39/lb. Stockpiles of nickel
stored in LME authorized warehouses took a breather after six straight gainer's
and slipped yesterday, now totaling just over 102,550 tonnes. For the month,
stockpiles grew by 3,894 tonnes over August's last reading. Cancelled warrants
for the month averaged somewhere in the mid 3% range. Rumors abounded during
the month about who was secretly buying up large stakes of the stockpiles,
and the market has been trading in backwardation for much of the month. Sucden's
day old chart shows nickel trading thru yesterday
(chart here). For a second day, the Baltic Dry Index
slumped, falling another 22 points to 2,446. For the month, the BDI closed
down 267 points from its August ending. Tomorrow begins the final quarter
of 2010.
U.S. Consumers' September Spending Matches 2010 Low -
more
U.S. Economic Confidence Remains Steady at 2010 Low -
more
SAfrica
ferrochrome production seen rising by 2015 - South Africa's production of
ferrochrome, a steel-making ingredient, is forecast to more than double to
4.6 million tonnes by 2015 compared with the output for 2009, a senior industry
official said on Wednesday. -
more
CISA suggests iron
ore prices and steel prices linked - The China Iron & Steel Industry
Association (CISA) suggested that iron ore prices should be linked to steel
prices instead of iron ore indexes. -
more
IMF says Australia
should tax more miners - The International Monetary Fund on Thursday called
for a broader tax on Australia's resources industry, saying it should take
in more producers. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.02/lb
lower, but recovering,
while most other base metals are trading slightly lower as well. The Euro
is trading less than 1/10 of 1% higher against the US Dollar at the moment.
NYMEX crude is up 9/10 of 1% and trading at $78.55/barrel. Gold is up 1/4
of 1% and silver is up 2/3 of 1%. In overnight trading, Asian markets ended
slightly higher, with China up over 2%. European markets are trading lower
this morning, while US futures are slightly lower at the moment. Inventories
of nickel slipped yesterday.
Steel Producers Issues in Today’s Economy presented at the National
Slag Association, by Thomas A. Danjczek, President, Steel Manufacturers
Association -
more
Commodity/Economic Comments
Edward Meir of MF Global Morning Comments - Metals prices finished higher
yesterday, with copper taking out its 2010 high of $8043, and lifting other
metals up along with it. The dollar fell for a fourth straight session, hitting
a five-month low against the euro on growing perceptions that further US
monetary easing could possibly be announced at the Fed’s Nov. 2-3 meeting.
Metals are mixed as of this writing, but well off earlier lows. The earlier
declines in Shanghai were sparked when the government announced new property
rules, this time telling the banks to secure a down payment of at least 30%
from all mortgage applicants as part of a new effort to rein in soaring property
prices. However, metals seem to have regained their footing since then. The
weaker dollar is providing key support in this regard, as it has distinctly
failed to rally for much of this week despite grim headlines coming out of
the European debt markets. In yesterday’s developments, for example,
Moody's downgraded Spain's credit rating by one notch to Aa1, citing the
country's weak growth prospects, low productivity levels, and inflexible
labor rules. Out of Ireland today, the government disclosed a "final" price
tag of nearly 40 billion Euros for bailing out its distressed banks, and
said it would have to make more drastic budget cuts. There was no negative
reaction in either the Spanish or Irish markets to these announcements, as
the news was likely expected and thus discounted. This is best reflected
in the buoyant Euro, which continues to march higher, even getting to a high
of $1.3676 earlier today. In other markets, oil prices are higher again today,
adding to yesterday’s gains, but US stocks are expected to open lower.
Given the solid run we have been seeing of late in metals, we could be in
store for a modest pullback, as some complexes are now technically overbought.
In this regard, RSI readings on copper, ali, and tin are now all in the low
to mid-70’s. Having said that, we do need to see a trigger that could
induce such a sell-off, and although a stronger dollar or a weaker US stock
market could do the trick, we do see another issue that could potentially
inflict damage. In this respect, we refer to the increasing US-Chinese tensions
over the Yuan. Late on Wednesday, the House of Representatives, by a wide
margin, passed legislation to penalize China on its foreign-exchange practices.
Under the measure, the Commerce Department would be directed to consider
whether Chinese currency practices amount to an unfair subsidy, and if it
makes such a determination, it could assess levies on Chinese goods. The
Obama administration did not endorse the measure, but the bill gives it a
tool to pressure the Chinese should it decide to use it. This is certainly
one to watch, and we would not be surprised to see the Chinese take some
retaliatory measures in response. ... Nickel is at $23,325, down $25 and
quiet, although we are in close range of $23,670 resistance. (read
Ed Meir's complete morning base metals report
here)
(Yieh) Taiwan’s Yieh United Steel Corp. (Yusco) has announced to lift
the stainless steel price in October. As expected, the domestic price for
grade 300 series rises by NT$3,000/ton and the export prices is up by
US$100~120/ton. However, the price for grade 400 series remains unchanged
in October.
(Yieh) Posco has announced to hike its stainless steel price by around US$131/ton
for October. The latest price for 300 series HRC is about 370 million won/ton
and 300 series CRC is about 397 million won/ton. However, the price for 400
series remains unchanged for October.
(JMB) Japanese raw steel demand for steel shipment will decrease by 1.5%
to 26.98 million tonnes in October-December from July-September, which is
the first drop in 2 quarters, announced by Ministry of Economy, Trade and
Industry on Wednesday.
(Interfax) Steel product prices fell by an average of 0.7 percent in the
period of Sept. 20 to Sept. 26 when compared to the previous week, the Ministry
of Commerce (MOFCOM) announced Sept. 28.
(Reuters) German steel sector employers and labour unions agreed on Thursday
to a 3.6 percent pay rise from October for 85,000 workers in the sector,
averting further strikes.
China to continue moderately easy monetary policy -
more
Effective with orders
entered on or after October 1, 2010, ATI Allegheny Ludlum is increasing base
prices by 5% to 10% for specialty stainless steels in sheet product forms
including: - pdf here
Nickel developer
in PNG willing to wait before launching tailings construction - lawyer -
The operator of Papua New Guinea’s Ramu nickel project has assured
landowners it won’t construct its marine tailings pipeline until a new
legal application for a injunction on the project is heard. -
more
Ruling pleases Highlands Pacific - Highlands Pacific Limited (HPL) has expressed
relief over the lifting of the interim injunction by the Madang National
Court on the Ramu nickel project, saying it was “a great outcome for
all stakeholders”. -
more
Price Of Low Carbon
FeCr To Import Into Japan For Shipments In Q4 / 10 Is Reduced = To Be Reduced
To 193 - 195 US-Cents Per Lb. / Cr CIF For Carbon 0.1% Material - The
negotiations with regular consumers (special steel companies) in Japan on
price of low carbon ferro-chrome for shipments in October - December quarter
of 2010 are being taken place from last week and are thought as of the end
of last week to be in the direction to reduce the price. -
more
Price Volatility
Has Started To Take Hold In Developing Markets - In the Russian Federation,
shipments to domestic customers have continued to exhibit signs of improvement.
-
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China Manufacturing Accelerates for
Second Straight Month, HSBC PMI Shows // Toyota Forms Task Force on Rare
Earth Metals Amid China Export Ban Report // Yuan Forwards Rise Most in Week
on Signs Gain to Quicken Before U.S. Vote // China's Stocks Fall, Erasing
Gains; Developers Drop, Coal Producers Climb // Japan's Tankan Sentiment
Index Climbs Least in Six Quarters // Asian Stocks Rise to Five-Month High;
Elpida Memory, Shinsei Lead Advance // European Economic Confidence Unexpectedly
Improves // Bond Yield Falls to Three-Week Low on Portugal, Ireland Financial
Concern // Spain Has First General Strike in Decade as Europe Marches //
European Stocks Fall as H&M Misses Earnings Estimate; BP, Beiersdorf
Climb // Lockhart Says Need for More Fed Easing Not Foregone Conclusion //
U.S. Stocks Fluctuate; Hewlett-Packard Climbs as Forecast Beats Estimates
The Euro is now trading 1/3 of 1% higher against the US Dollar. NYMEX crude
is up 1-2/3% and trading at $77.42/barrel. Gold is up slightly and silver
is nearly 1% higher. Base metals ended the session higher on the weaker Dollar.
Indicator charts show nickel was in trouble most of the session, opening
higher but gradually falling until late, when a spike happened that took
the market back positive. For the day, Dow Jones reports three month nickel
ended the day at $10.58/lb. Stockpiles of nickel
stored in LME licensed warehouses rose for a sixth consecutive session yesterday,
and now sit just over the 122,600 tonne level. Of 21 working days so far
this month, inventory gains now exceed inventory loser days by 11 to 10,
and warehouses now hold more inventory than they have had since July 5th.
Sucden's day old chart shows nickel trading thru yesterday
(chart here). The growth in nickel stockpiles this month
must be concerning to traders, who have heard some analysts predict a 'shortage'
of nickel supposedly on the horizon. With pig nickel production slowed in
China, imports of refined nickel into China should be on the increase - but
there is no evidence that those numbers are swelling at a rate the producers
can't easily cover. After two positive readings, the Baltic Dry Index fell
36 points to 2,468. As we still like the BDI as a economic indicator, we
see this as discouraging. It would appear the overall world economy is entering
a state of flux - or stalling out. This has been happening since mid-summer,
and although we never joined the chorus of economists calling for a double
dip recession, we must say the land of limbo is getting tedious. Here in
the States, we don't really expect to see anything happening positive until
after the November election. Never mind who wins or loses, but an end to
the constant barrage of negative campaign adds could potentially have a positive
effect on the spending psyche of the American consumer. The HSBC China
manufacturing purchasing managers’ index rose to 52.9 in September from
51.9 in August, its strongest showing in 5 months, and MarketWatch quoted
HSBC’s chief economist for China, Qu Hongbin as saying "The upbeat reading
... implies that China’s growth slowdown is slowing" What? Even the
Chinese are getting into the 'less bad" reporting style.
Nickel mine mints
$13.3m - Albidon Limited has realized US$13.3 million from the sale of 14,257
tonnes of Nickel concentrates from the Munali Nickel Project in Mazabuka.
-
more
-Vale sees China
steel demand revival by early 2011 - Steel demand growth in China, the world's
biggest steel market, will revive by early 2011, Jose Carlos Martins, executive
director of ferrous metals at the world's top iron ore miner Vale, said on
Wednesday. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around no change
, with other London
traded base metals trading higher. The Euro is trading over 1/10 of 1% higher
against the US Dollar. NYMEX crude oil is up over 2/10 of 1% and trading
at $76.34/barrel. Gold is down slightly and silver is up over 1/3 of 1%.
In overnight trading, Asian markets ended higher, with China lower by 2/10
of 1%. European markets are slightly lower at the moment, and US futures
show Wall Street has yet to decide how it will open today. Nickel inventories
rose again yesterday.
US Imports of Stainless Steel Mill Products -
more
Indian Stainless Steel Sector challenges & Opportunities -
pdf here
Commodity/Economic Comments
Edward Meir of MF Global Morning Comments - Metals pulled back early in the
US session yesterday, but then regrouped to end up with decent gains by the
end of the US session. The main reason for this abrupt turnaround was the
sharp reversal in the euro, which managed to rally from below $1.34 to just
under $1.36 over the course of the day. Copper finished near a five-month
high, and not far off the psychologically important $8000 mark. Right now,
we our building on yesterday’s gains and pushing higher on the back
of constructive Chinese data. This time around, copper has managed to take
out the $8,000 mark, and even got to an intraday high of $8038, only $5 shy
of its 2010 high. The main catalyst for today’s surge was the HSBC China
Purchasing Managers' Index, which rose to a five-month high in September
for its consecutive increase. The weaker dollar is also aiding the advance
in metals, as the Euro is now trading above $1.36, while the yen is also
pushing higher, now at 83.64 and not far off intervention levels that brought
the Bank of Japan in a few weeks ago. All this is fueling another record
rally in the precious metals market, with gold now trading at $1312, its
10th record in 12 sessions, while silver is at a 30-year high. US stocks
are expected to open lower. .... Nickel is at $23,025, down
$150. (read Ed Meir's complete morning base metals report
here)
(Yieh) US stainless steel output fell in Q2 due to weak demand. Even the
output increased substantially and the demand rebounded obviously in Q1,
steel mills noticed that the demand went down in Q2. Therefore, makers aimed
at the market to adjust the productivity.
(JMB) NSSC Lowers Stainless Wire Rod Price for Sep-Nov Contracts
(Interfax) While the China Iron and Steel Association (CISA) has accepted
the introduction of a quarterly pricing system for iron ore, the association's
secretary general, Shan Shanghua, said on Sept. 28 at the 10th China
International Steel & Raw Materials Conference that the pricing index
is unreasonable.
(PR) The Nickel Institute has announced the successful REACH registration
of all 13 substances covered by the Nickel REACH Consortia. -
more
(CIDN) Construction work begins on 100,000-ton nickel alloy project in Fujian
(MB) Police and private investigators are still searching for the remaining
nickel and ferrochrome owned by BHP Billiton that was stolen earlier this
month from a port terminal in Baltimore.
(SMR) Steel demand growth in China, the world's biggest steel market, will
revive by early 2011, Jose Carlos Martins, executive director of ferrous
metals at the world's top iron ore miner Vale, said on Wednesday.
How Fastenal Plans to Drive Operating Margins Higher -
more
La Niña event expected to continue through 2010 -
more
(ATA) The American Trucking Associations’ advance seasonally adjusted
(SA) For-Hire Truck Tonnage Index fell 2.7 percent in August, which was the
largest month-to-month decrease since March 2009. The latest drop lowered
the SA index from 110 (2000=100) in July to 106.9 in August.
Steel mills in Hebei
start to resume production - It is reported that having been suspended for
over 20 days, the steel mills in Wu’an an important steel making town
in South Hebei Province have started to resume operation across the board
since September 27th. -
more
Steel, Aluminum Shipment
Growth Rate Rebounds in August - The rate of growth of steel and aluminum
shipments from North American service centers rebounded in August, according
to the Metals Activity Report from the Metals Service Center Institute, Rolling
Meadows, Ill. Inventories of both metals changed very little during the month
in both the United States and Canada.
- more
Nickel to see correction
on high inventories - Nickel yesterday traded with the positive node and
settled 0.24% up at 1045.4. Some pressure had been seen from the LME stock
also which came up by 1176mt, the total stock at LME is now at 122208mt.
- more
Japan Oct-Dec steel
output seen down 1.5 pct -METI - Japan's crude steel output in the
October-December period is expected to fall for a fourth quarter in a row
as a drop in domestic car sales and a fall in exports will depress steel
demand, the industry ministry said. -
more
The MEPS September
Global Price is Steady But Is Likely To Slip Soon - US flat product transaction
values continued their sharp decline during August but, more recently, the
negative trend has reversed. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) Shanghai's Stocks Decline on Property
Tightening, Interest-Rate Concerns // Asian Stocks Fall on Renewed European-Debt
Concern; Takefuji Plunges 32% // Ireland Leads Surge in Sovereign Default
Swaps on Bailout Costs // Anglo Irish Cost May Exceed 35 Billion Euros, S&P
Says // U.K. Growth Fueled by Jump in Government Spending // U.K. Retail-Sales
Index Increases to Six-Year High, CBI Says // Berlusconi Sees Italian Yields
Rise on Threat of Early Election // Ken Fisher Dubs New Normal `Idiotic,'
Sees `Great' Decade Ahead // Toys 'R' Us to Hire 45,000 Employees for Holidays
// Morgan Stanley Said to Freeze Investment-Bank Hiring for 2010 // Case
Says U.S. Housing Market Will Grow Slowly After Free-Fall: Tom Keene // U.S.
Consumer Confidence Fell More Than Forecast
The Euro is now trading nearly a full percentage higher against the US Dollar,
after consumer confidence numbers out of the latter sank. NYMEX crude oil
is up 210 of 1% and trading at $76.68/barrel. Gold is up over 1.1% and silver
is higher by 1.3%. Base metals ended the session higher, thanks to the stronger
Euro. Indicator charts show nickel was in trouble early, but as soon as the
US consumer confidence numbers were released, nickel began to climb right
alongside the Euro. For the day, Dow Jones reports three month nickel ended
the session at $10.51/lb. Stockpiles of nickel
stored in LME approved warehouses soared over night and now total just over
122,200 tonnes. This is the highest number recorded since July 5th, and well
off the 2010 recorded low of 115,668 tonnes on August 19th. Sucden's day
old chart shows nickel trading thru yesterday
(chart here). The Baltic Dry Index rose 53 points to 2,504,
rebounding sharply after turning positive yesterday.
(PR) Outokumpu implements a major energy saving project in Tornio Works
production site in Finland. A total of 50 separate refrigeration compressors
in the cold rolling plant will be replaced with a new centralized district
cooling system. As a result, the annual electricity consumption is reduced
by 11 GWh. Additionally, the new system decreases carbon dioxide emissions
by 6 700 tonnes.
More Americans Expect Recovery Will Take Years -
more
Chicago Fed: Cars Drag Down Midwest Manufacturing Activity -
more
Forecasting Growth over the Next Year with a Business Cycle Index -
more
Atheists, agnostics most knowledgeable about religion, survey says -
more
Alfa Invests $15M
in Cuban Nickel - Alfa Group's A1 unit said it would invest $15 million in
a 49 percent stake in its venture with Cuba's Commercial Caribbean Nickel.
-
more
Orissa to hire advisor
to restructure Idcol Ferrochrome, Kalinga Iron Works - Even as two Central
PSUs- Steel Authority of India Limited (SAIL) and National Aluminium Company
(Nalco) have evinced interest in picking up stakes in two firms run by Industrial
Development Corporation of Orissa Ltd (Idcol)- Idcol Ferrochrome and Alloys
Ltd (IFAL) and Idcol Kalinga Iron Works Ltd (IKIWL), the Orissa government
has decided to appoint a transaction advisor for restructuring of these two
firms. -
more
Rio says move to
monthly iron ore prices "destabilising" - Changing to a monthly iron ore
pricing system would be destabilising for the steel industry, a senior iron
ore executive at Rio Tinto said on Tuesday. -
more
Russia's RUSAL
sues Norilsk in Russia over AGM - Russia's UC RUSAL has filed a lawsuit against
Norilsk Nickel (GMKN.MM: Quote), the world's largest nickel and palladium
miner, to overturn a disputed board vote, RUSAL said on Tuesday. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $.12/lb
lower, with only
tin trading higher this morning in London. The Euro is currently trading
less than 1/10 of 1% higher against the US Dollar. NYMEX crude is down 8/10
of 1% and trading at $75.90/barrel. Gold is down 1/2 off 1% and silver is
off nearly 1.2%. In overnight trading, Asian markets ended lower, with China
off more than 8/10 of 1%. European markets are trading slightly lower at
the moment, while US futures show Wall Street may open on the bullish side.
Nickel inventories rose sharply yesterday. US traders have the
S&P/Case-Shiller home price index and the Conference Board's consumer
confidence index reports to look forward to this morning.
Edward Meir of MF Global Morning Comments - Metals erased earlier gains in
very quiet trading yesterday, and we saw uneventful sessions in other markets
as well, with crude oil finishing practically unchanged, while the US stock
market ended with a modest loss. The pause we are seeing in metals, particularly
on copper, may be due to the fact that copper is nearing its 2010 high of
$8043, and because a longer-term double top is now evident on the charts,
there is some technical hesitancy to push higher. Of course, a double-top
formation can either signal the sign of an impending move lower, or prices
could push right through it in a breakout formation. Given how strongly the
market has been behaving of late, we have to suspect that after the current
pause is over, prices may yet mount another push higher. However, an upside
spark will be needed, and that could come later in the week in the form of
constructive macro indicators released out of the US or China. In the meantime,
we are seeing another modest sell-off as of this writing, with all metals
down right now with the exception of tin. Oil prices are off as well, but
US stocks are expected to open higher. The dollar is holding steady at $1.3460
against the Euro, this despite further jitters out of Europe that first surfaced
yesterday. In this regard, S&P was reported to have warned that it might
cut Ireland's credit rating due to the rising cost of recapitalizing nationalized
Anglo Irish Bank, and credit-default swaps tied to Irish bonds jumped to
a record high. In addition, there are rumors that Moody’s could cut
Spain’s triple-A rating this week. This has pushed the Spanish/German
bond yield spread to the widest since mid-July. These developments need to
be closely watched, and could be a downside game-changer for commodities
if they continue to deteriorate. So far, the Euro does not seem to be exhibiting
much alarm about the latest developments, as it remains fairly steady. ...
Nickel is at $22,830, down $260, and continuing to retrace away from resistance
at $23,670. (read Ed Meir's complete morning base metals report
here)
(Interfax) Construction has begun on the first phase of Fujian Tonghai Nickel
Industry and Technology Co. Ltd.'s nickel alloy project in Jiangle County,
Fujian Province, according to a Sept. 22 Sanming Daily report
(Interfax) China's refined lead, zinc, tin and nickel imports all dropped
on an annual basis in the first eight months of 2010, according to Sept.
21 figures from the General Administration of Customs
(MB) Asian stainless prices poised to fall in Oct
(JMB) NSSC Lowers Stainless Wire Rod Price for Sep-Nov Contracts
(MBN) Posco hikes 300 series list prices by $130 for Oct
Outokumpu Makes Commitment
to Stainless Plate Production in the U.S. - This Finnish specialty metals
producer recently completed $58 million worth of upgrades at its facility
in Indiana, its only quarto plate operation in the Western Hemisphere. -
more
Regulations For
Productions Of Ferro-Alloys In China See Differential Between Districts =
Regulations Attach Its Importance To Thermoelectric Power Generation By Coal
- In order to reduce exhaust of carbon dioxide, the Central Government of
China has enforced from September of this year the regulations for this purpose
specified by industries and attached the most importance to productions of
ferro-alloys and silicon carbide. -
more
China's big steel
vows to tame iron ore trade - China reopened its war of words with global
iron ore miners on Tuesday as the spokesman for the country's big steel mills
vowed they would not be bullied into accepting unfavorable pricing systems.
-
more
Rusal Takes Norilsk
To Local Court Over Board Voting - Russian aluminum giant United Co. Rusal
PLC filed a lawsuit with a local court Monday seeking to invalidate the election
of the board of miner OAO Norilsk Nickel, in which Rusal owns a 25% stake.
-
more
New Suit Filed Against
PNG Mine Waste Plan - Landowner efforts to halt construction of a pipeline
to dump waste into the sea off Papua New Guinea’s northeast coast will
continue despite last week’s lifting of an injunction on the project.
-
more
Australia mining
tax still far from settled - Australia is set to reignite debate on its mining
tax proposal next month when it consults miners on the controversial plan
for a 30 percent tax on iron ore and coal. -
more
Courtesy AISI - In
the week ending September 25, 2010, domestic raw steel production was 1,712,000
net tons while the capability utilization rate was 70.8 percent. Production
was 1,486,000 tons in the week ending September 25, 2009, while the capability
utilization then was 62.1 percent. The current week production represents
a 15.2 percent increase from the same period in the previous year. Production
for the week ending September 25, 2010 is down 0.2 percent from the previous
week ending September 18, 2010 when production was 1,714,000 tons and the
rate of capability utilization was 70.9 percent.
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) Hong Kong's Exports Unexpectedly Jump
Most in 18 Years on Chinese Demand // Yuan Climbs to Strongest Level Since
1993 Before U.S. Vote // China's Charm Blitz in `Shambles' Over Regional
Spats // China Industrial Firm Profits Climb 55%, Helping Economy Maintain
Momentum // Asian Stocks Rise to Five-Month High on U.S. Capital Goods;
Canon Advances // Roubini Sees High Risk of a U.S. Recession, Says Japan
`Anemic' // Euro Falls From Five-Month High on Concern Over European Banks
// Trichet Sees Moderate Growth in Euro Zone, Signals Interest Rates on Hold
// Fed Model for Treasuries Shows Diminishing Returns // JPMorgan Sees 75%
Chance of More Quantitative Easing By the Fed This Year // Dow `Super Boom'
Will Drive Average to 38,820, Stock Trader's Almanac Says // U.S., European
Stocks Fall as Euro Weakens on Concern Over Irish Bank Debt
The Euro continues to trade lower against the US Dollar, but presently at
less than 1/10 of 1%. NYMEX crude is now lower by over 1/2 of 1% and trading
at $76.06/barrel. Gold is flat, while silver is slightly lower. Base metals
ended the session mostly lower, after a lackluster return to markets by Chinese
buyers, and equity markets under pressure. Indicator charts show nickel traded
choppy early on, then fell in afternoon trading, before recovering much of
that late. Dow Jones reports three month nickel ended the day at
$10.47/lb. Stockpiles of nickel stored in worldwide LME approved
warehouses rose for a fourth consecutive session Friday and now sit just
over the 121,000 tonne level. Of the 19 trading days thus far this month,
days where stockpiles fell outnumber growth days by only 10 to 9. Inventory
totals, however, show a net gain of 2,370 tonnes so far this month,
and are at their highest since early in July. After 10 straight days of declines
and a loss of 551 points, the Baltic Dry Index gained back 7 points overnight.
The Chinese released August import figures for nickel today. In refined nickel
imports, the 18,227 tonnes recorded for this March compared to 14,399 tonnes
in July, and 22,703 tonnes last August. Nickel ores imports came in
at 2,030,080 tonnes, compared to 2,510,246 last month and 1,449,221 tonnes
in August 2009. Ferrochrome prices will remain at $1.30/lb for the 4th quarter.
The third quarter of 2010 ends this Thursday, so traders will be reviewing
their exposures and refining their investments over the next few days.
Drop anti-dumping
probe on stainless steel imports: Utensil cos - Upset over a probe into whether
anti-dumping duty should be imposed on imports of certain types of stainless
steel products, utensils manufacturers today said any tax on the items would
hurt an industry that employs over three lakh people. -
more
China steel cuts,
ore outlook focus at Dalian meet - China's steel production cuts which hurt
iron ore demand and prices at the start of a usually peak season this month
will be in focus at this week's global steel and iron ore conference at the
port city of Dalian. -
more
Zimbabwe: Beijing
Eyes Local Mining Industry - Closer economic and diplomatic ties between
China - the world's second biggest and fastest growing economy - and Zimbabwe
have had wide and far-reaching effects. -
more
IFM loss narrows
on higher volumes, prices - South African ferrochrome producer
International Ferro Metals Ltd (IFM) posted a narrower loss for the full
year on higher volumes and sales prices, but said it was cautious on the
short-term market outlook. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.11/lb
higher, with other
London traded base metals mixed. The Euro is trading slightly over 1/10 of
1% lower against the US Dollar this morning. NYMEX crude is trading 1/3 of
1% higher and at $76.74/barrel. Gold i sup 1/5 of 1% and silver is higher
by more than 6/10 of 1%. In overnight trading, Asian markets returned from
holiday and finished higher, with China up 1-2/3%. European markets are trading
slightly higher at the moment, and US futures hint Wall Street may open on
the positive side as well. Nickel inventories rose again Friday.
Edward Meir of MF Global Morning Comments - Metals pushed higher on Friday,
as copper closed in on the psychologically important $8,000 mark. In fact,
prices in most markets were driven higher by a robust 200-point rally on
Wall Street, which is on track for its best September since 1939. Stocks
took off after US August durable goods reading came out earlier in the day,
and although overall orders were down 1.3%, investors were pleased to note
that they actually rose 2% when the volatile transportation sector was excluded.
We had expected gains in Shanghai metal markets overnight, as the Chinese
markets caught up with the LME after being off for the last three days. However,
LME prices themselves are mixed right now, and so far at least, failing to
build on last week’s strong gains. The dollar has edged up from five-month
lows against the Euro (now trading at $1.3477) but is starting to look wobbly
against the yen, now trading at 84.20, and not far off from the 82.80 level
that sparked a heavy round of intervention by the Bank of Japan earlier in
the month. Asian stocks have soared to their highest level in more than two
years in response to Friday’s US rally, while US stocks are expected
to again open higher later this morning. Oil prices are up slightly again
today and at two-week highs, while gold and silver prices have pushed to
fresh highs as well. .... Nickel is at $23,100, up $200; prices still
need to do more work here, as they have to clear recent resistance at
$23,670. (read Ed Meir's complete morning base metals report
here)
(Merafe) Shareholders of the Company are advised that the European benchmark
ferrochrome price has been settled at $1.30 per pound for the fourth quarter
of 2010, a rollover from the $1.30 per pound price in the third quarter of
2010.
(Yieh) According to statistics, US exported 2,743 tonnes of stainless steel
scrap in July 2010, down by 21.2% MoM. Meanwhile, the average export price
of US stainless steel scrap in July 2010 reached to USD 3,821 per tonne,
up by 25.6% MoM.
(MFG) POSCO confirmed Monday that domestic prices for its key steel products
in the fourth quarter will remain unchanged from the third quarter. POSCO
had delayed its fourth-quarter pricing announcement amid pressure on the
company from the government, which is concerned that small businesses may
be not be able to cope with higher steel prices.
(AP) Indonesian state-owned miner PT Aneka Tambang said it will increase
its stake in PT Weda Bay Nickel to 40 per cent from 10 per cent at present.
(CCR) China's power consumption reached 397.5 terawatt hours in August, up
14.69% year on year or 2% month on month, according to the statistics released
by the National Energy Administration.
(Xinhua) Industrial profit in China rose 55 percent in the first eight months
of 2010, compared with the same period of last year, the National Bureau
of Statistics said on Monday.
Smallest Commodity Moves Since 1996 Signal Gold Gain -
more
Break taken in
Voisey's Bay strike talks - Both sides in a long-running strike at Voisey's
Bay Nickel's mine in northern Labrador have adjourned talks for a week. -
more
Quantities Of Nickels
Produced In Japan In July 2010 Had Increased From Those In 2009 = Increased
By 46% For Nickel Metal And Also Increased By 16% For Ferro-Nickel - The
quantities of nickel metal and ferro-nickel produced in Japan in January
- July of 2010 as well as in a single month of July were released in last
week and the contents were as per the table shown below. -
more
Fresh legal application
to halt waste pipeline from PNG’s Ramu mine - Landowner efforts to halt
construction of a pipeline to dump waste into the sea off Papua New
Guinea’s northeast coast will continue despite last week’s lifting
of an injunction on the project. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) Yen Weakens on Speculation Japan Is
Intervening to Curb Gains // Singapore's Industrial Output Growth Unexpectedly
Cools to Nine-Month Low // Japan Prosecutors to Release Chinese Boat Captain,
End Bilateral Dispute // German Business Confidence Unexpectedly Increases
// Portuguese Bonds Lead Euro Peripheral Debt Declines on Austerity Concern
// French Second-Quarter GDP Growth Revised Up on Domestic Demand // Spain
Raises Taxes on Higher Earners, Cuts Spending to Contain Budget Gap // Texas,
Iowa Attorneys General Probe Foreclosure Actions by Ally's GMAC //
Demand for U.S. Capital Goods Rebounds as Spending Holds Up // New U.S. Home
Sales Hold at Second-Lowest Level Ever // Fed Dissenter Hoenig Wages Lonely
Campaign Against Easy Credit // Stocks Rally, Treasuries, Dollar Drop on
Durable Goods Data
The Euro is now trading over 1.2% higher against the US Dollar. NYMEX crude
oil is up over 1.6% and trading at $76.39/barrel. Gold is up over 1/3 of
1% but under the $1300/ounce mark, which it hit earlier today. Silver is
up nearly 1/3%. Base metals had to increase today, considering the lower
Dollar and positive economic news. Indicator charts show nickel opened higher,
and ended the same way. Dow Jones reports three month nickel ended the day
and week at $10.70/lb
, its highest
close since May 4th. Stockpiles of nickel stored in LME approved warehouses
rose for a third consecutive day and now sit just under the 120,600 tonne
level. Warehouse numbers have grown by over 1700 tonnes in the last three
days. Sucden's day old chart shows nickel trading thru yesterday
(chart here). The Baltic Dry Index's slide slowed again,
dropping 17 points and with one of its three sub-indexes turning positive.
US markets are way up today on the news that durable goods came in better
than expected. Excessive options trading on the VIX tell us some traders
expect next week to be volatile. In the mean time, have a safe and relaxing
weekend!
Inside Job: A Movie Wall Street is Sure to Hate -
more
One tough job
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $.07/lb
higher, with all London
traded base metals higher this morning. The Euro is trading 7/10 of 1% higher
against the US Dollar, at the moment. NYMEX crude is up nearly 1/2 of 1%
and trading at $75.52/barrel. Gold is nearly 4/10 of 1% higher and
in record territory and silver is at a 30 year high and up over 1%. In overnight
trading, those Asian countries trading, ended slightly higher, with Australia
dn New Zealand lower, and India higher. European markets are trading slightly
lower this morning and US futures show Wall Street may open higher. Nickel
inventories rose for a third consecutive day yesterday.
Stainless Steel - Water for the Growing World -
more
Commodity/Economic Comments
Edward Meir of MF Global Morning Comments - Base metals pushed higher yesterday
in quiet trading, as prices ignored a late-day fade on Wall Street. Metals
followed copper's lead, with aluminum, zinc, and lead, all hitting highs
not reached since the spring. In addition, inventories continue to fall,
with declines now spreading more broadly across metal classes. Yesterday,
for example, stocks fell in four of the six metal categories and a similar
ratio is in evidence today. .... We are higher again as of this writing
in metals, as a number of technical breakouts are evident on the charts.
In other markets, oil prices are flat, and have now been trading between
$70-$80 for six weeks running. The euro is stronger today, now trading over
$1.34, after favorable European macro data was released earlier, but the
dollar is holding up against the yen at 84.40. The US stock market is called
to open higher ahead of August durable goods readings out later today (expected
at -1.3% on the overall rate) and August new home sales (expected at 290,000).
However, as far as metals are concerned, investors will likely be more interested
in the reopening of the Shanghai markets next week, where we will have to
see whether copper will be pushed over its 2010 high of $8010. Given the
momentum apparent in the complex, our thinking is that this is likely going
to happen. ..... In other news, Reuters reports that US pension fund Calstrs
is planning to invest $2.5 billion in commodities in the next three years,
one of the largest institutional allocations planned for the sector. Strategists
at the firm are apparently recommending that the pension fund not just put
money into more traditional commodity indexes, but also look into
actively-managed hedge funds and physical commodity investments. Calstrs'
foray into the space is expected to come under its Absolute Return Asset
Class, which is allocated about 5% of the roughly $132 billion the fund has
under management. ...... Nickel is at $22,805, up $55, as prices are
not doing all that much today. (read Ed Meir's complete morning
base metals report
here)
(CMJ) Commercial production levels have been attained at the Shakespeare
nickel mine belonging to Ursa Major Minerals of Toronto. The mine is located
70 km west of Sudbury.
(TN) Tata Steel has decided to purchase a South Africa-based ferrochrome
mine for captive utilization of its ferrochrome processing facility, Tata
Steel KZN in that country. Mr. Nerurkar, company's MD said, "The ferrochrome
unit is currently buying its raw material. We have to acquire some mines
to make it more competitive."
Commodities Outlook Is ‘Constructive,’ Barclays Says -
more
Police arrest 2 in
$3.5M theft - Baltimore City Police have arrested two men in connection with
a $3.5 million theft. Detectives say four shipping containers storing
forty-eight, two metric-ton bags of nickel briquettes and two shipping containers
storing approximately 114,000 pounds of ferrochrome were stolen on September
10 from a business in the 3500 block of E. Biddle Street. -
more
N. America Yawns At
Potential ArcelorMittal, TK Stainless Spinoffs - ArcelorMittal SA and
ThyssenKrupp AG have both expressed interest in spinning off their stainless
steel divisions, although the moves will have little direct impact on the
North American market, industry sources said. -
more
Indonesia's
Antam to up stake in Eramet nickel project - Indonesian state miner PT Aneka
Tambang Tbk will boost its stake to 40 percent in a nickel project run by
Eramet in eastern Indonesia, from 10 percent currently, Antam's president
director said on Friday. -
more
Alfa Group sets up
JV in Cuba to process nickel tailings. - Palmira Resources Limited, a subsidiary
of Russia's Alfa Group financial-industrial conglomerate and Cuba's Commercial
Caribbean Nickel S.A., have set up a joint venture to process nickel tailings
on the island, Alfa Group's Alexei Mikhailovsky said on Monday. -
more
Over 1,000
residents express support to mining proponents in Brooke’s Point, Palawan
- Over a thousand residents of the southern Palawan town of Brooke’s
Point staged a rally Wednesday to express support to three corporate giants
that are proposing to operate nickel mining. -
more
JSL Stainless
expects price hike in 5-7% range by yr-end - In an interview with CNBC-TV18,
NC Mathur of JSL Stainless, spoke about the latest happenings in his company
and sector. -
more
Judge disappointed
over waste of time as plaintiffs in PNG’s Ramu case withdraw - The Judge
presiding over the Papua New Guinea legal case about a marine tailings disposal
system for Madang Province’s Ramu nickel mine has granted the three
plaintiffs leave to withdraw from the case. -
more
Judge ok's Chinese nickel waste dump - A Papua New Guinea judge has lifted
a court injunction that blocked a Chinese nickel mine from dumping waste
into the sea off the country's northeast coast. -
more
Russia plans 10
pct copper, nickel export duty-Ifax- The Russian government sub-committee
for tariff policies on Thursday approved a proposal to raise nickel and copper
export duties to 10 percent, Interfax reported citing Norilsk Nickel's CEO.
-
more
Big celebration
at nickel plant - The Yonga Boys Dance Troupe performed at Nickel West’s
celebrations. The Yonga Boys Dance Troupe performed at Nickel West’s
celebrations.-
more
Regulations For
Carbon Dioxide Adopted By Chinese Government Cause To Continue Confusions
= Inner Mongolia Government Has Stopped Electricity Supply To Enterprises,
Having Exceeded Specified Allocation - In order to maintain the national
prestige, the Central Government of China has been proceeding drastically
to materialize the achievement of the reduction in exhaust of carbon dioxide
(to save energy) but this action is causing to arise many disturbances. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) Wen Says 20% Gain in Yuan Would
Cause Social Upheaval // New Zealand Economic Growth Lags Forecast; Currency
Declines // Asian Mining Stocks Advance After Metal Prices Gained, While
TSMC Declines // European Services, Manufacturing Growth Slows Again // German
Bunds Rise as Debt Target Cut; Irish Bonds Drop on Growth Outlook // French
Unions Protest Pension Reform, Trains Disrupted // Retirees Duped by Derivatives
With Structured Notes Sale Surge // Fed Reduces Counterparty Asset Requirement
by Half for Money Market Funds // Jobless Claims in U.S. Increased 12,000
to 465,000 Last Week // Index of U.S. Leading Economic Indicators Rose
0.3% in August // U.S. Stocks Rise as Technology Rally Overshadows Jobless
Claims
The Euro is now trading 4/10 fo 1% lower against the US Dollar. NYMEX crude
oil has reversed course and is now trading nearly 4/10 of 1% higher and at
$75.00/barrel. Gold is up nearly 1/3 of 1% and silver is up over 4/10 of
1%. Base metals ended the session higher, bucking the pressure from the lower
Euro. Indicator charts show nickel opened higher, slid thru mid afternoon,
and then raced higher during the last hours of trading. Dow Jones reports
three month nickel ended the day at $10.30/lb
.
Stockpiles of nickel stored in LME approved warehouses rose yesterday, and
now sit just over the 120,000 tonne mark. This is the fourth time levels
have fallen below, or risen above the 120,000 tonne level since July, with
three of those moves coming this month alone. Sucden's day old chart shows
nickel trading over the past week thru yesterday
(chart here). The Baltic Dry Index slipped for a ninth
consecutive day, down 25 points, and may be losing its downward momentum.
US markets opened lower this morning but have recovered thanks to rising
home sales and an increase in the leading economic indicators. Employment,
remains the fly in the ointment, and first time claims rose gain last week.
(PR) AK Steel reached a new milestone this month, marking 100 years of innovation
at its research facility in Middleton, Ohio. The company's predecessor, Armco,
announced the creation of a research department on September 22, 1910.
American Bankruptcy Institute Interactive Charts -
more
Fed May Get Some Help From Weakening Dollar -
more
Renewed Asset Purchases a Fraught Endeavor for Fed -
more
Man's home sold out from under him in foreclosure mistake -
more
After The Recession: What Next For the Fed? -
more
Lehman Black Hole Update: It’s Gotten Bigger! -
more
What makes the US health care system so expensive – Introduction -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.04/lb
higher, but off session
highs, with other London traded base metals mostly marginally higher. The
Euro is down over 1/2 of 1% lower against the US Dollar, adding pressure
to commodity traders. NYMEX crude oil is down over 9/10 of 1% and trading
at $74.03/barrel. Gold is trading 1/4 of 1% lower while silver is dow over
1%. In overnight trading, most Asian markets were closed for holiday, but
Australia closed slightly higher, while India closed lower. European markets
are trading lower this morning after a report showed European manufacturing
is slowing. US futures show Wall Street may open lower, as well. Nickel
inventories rose yesterday.
Edward Meir of MF Global Morning Comments - Metals pushed higher yesterday,
with copper soaring to its highest level in some five months and pulling
the rest of the group up along with it. Once again, we observed a rather
uneven performance in the various markets. Crude oil prices were down, as
was the US stock market, but metals were going their separate ways, teeing
off instead against the weaker dollar. It remains to be seen what metals
will do once Chinese participants come back next week, but if history is
any guide, the Shanghai markets usually tend to reinforce the existing trend,
so we very likely could see copper prices take a shot at the $8000 mark by
then. More broadly, we suspect that metal bulls are feeling somewhat more
comfortable with the state of affairs these days-- Chinese metal import demand
is picking up as per the latest data, while the government there seems to
be slowing the economy down a notch with without adversely impacting metal
consumption. In the West, macro readings clearly have decelerated from what
was evident earlier in the year, but investors have nonetheless moved away
from the recessionary fears that were so prevalent back in August. Right
now, metals are up, but off earlier highs. A rebound in the dollar on the
back of Eurozone readings showing services and manufacturing activity slowing
down more than expected this month, is pressuring the Euro, which is now
trading at 1.3340, well off the $1.3440 high it got to at one point yesterday.
.Nickel is at $22,600, up $25, but has yet to take a stab at taking
out key resistance at $23,670... (read Ed Meir's complete morning
base metals report
here)
(Yieh) Because LME nickel stands on high level and furthermore Typhoon hit
southern Taiwan seriously, Taiwna’s Yieh United Steel Corp. (Yusco)
announced to stop production temporarily. At the same time, Yieh Hsing also
announced temporary production suspension because the equipment of stainless
steel wire rod was broken by flood.
(Reuters) Stainless steel maker JSL Stainless Ltd's new 800,000 tonne per
annum plant in Orissa will become operational three-six months ahead of the
schedule of March 2012, a top company official said.
(SO) Taiwan's industrial production index in August this year climbed by
23.4 percent as compared to August 2009, after rising by a revised 20.93
percent year on year to a record level in July, and was down 0.5 percent
month on month, according to the country's Ministry of Economic Affairs (MOEA).
China denies blocking metal exports to Japan -
more
Euro Zone Manufacturing and Services Expansion Ease, Raising Concerns Recovery
is Losing Momentum -
more
China's Industrial Power Gobblers Get the Ax -
more
Vale Completing
Commissioning of Nova Caledonia, Onca Puma - Vale SA said it is concluding
the commissioning of its Nova Caledonia and Onca Puma mining projects, and
Onca Puma should be commercially operable by January. -
more
PNG Judge To Decide
Future of Murky Mine Lawsuit – The three plaintiffs who disappeared
in Papua New Guinea before pulling out of a court battle to stop a mine dumping
waste into the sea have reappeared. -
more
Court to rule on new Ramu NiCo plaintiff - The National Court in Madang is
expected to make a decision this morning as to whether it will allow another
plaintiff to join the proceedings which have been filed against Ramu NiCo
(MCC) Limited. -
more
Tensions boil over in PNG mine row - There have been ugly scenes outside
a court in Papua New Guinea during a case that could decide the future of
a $1.9 billion nickel mine. -
more
Russian miner
buys stake in Mindoro project - Russian steelmaker OAO Severstal has
acquired a 21.7-percent stake in Norwegian miner Intex Resources ASA, a company
whose main project is a nickel mine in Mindoro. -
more
Russia's government
avoids Norilsk Nickel battle - Russia's government and entrepreneurs have
taken steps to improve the country's global image as a reliable business
partner, but some recent events must have given them a headache. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China's Wen Threatens Japan With More
Action Over Jailed Captain // Asian Stocks Rise to Five-Month High on Growth
Outlook; Sun Hung Kai Gains // BOE Signals Moving Closer to More Stimulus
as Growth Slows // Solar Doubling, Gas Glut Drive Down German Power Prices:
Energy Markets // U.K. Government Bonds Soar on Speculation Central Bank
May Ease With Fed // European Stocks Retreat for Second Day; Santander, Daimler
Slide // Fed's Concern Over Inflation Broadens Rationale for More Easing
// Mortgage Applications Index in U.S. Declines for a Third Week // U.S.
Home Prices Fell 3.3% in July From Year Earlier // Bonds, Gold Gain as Dollar
Declines on Speculation Fed to Buy More Assets //
The Euro continues to trade over 8/10 of 1% higher against the US Dollar.
NYMEX crude oil is down nearly 9/10 of 1% and trading at $74.30/barrel. Gold
is up nearly 2/10 of 1% after setting another record high earlier. Silver
is up 3/10 of 1%. Base metals ended the session higher. Indicator charts
show nickel slumped early, but rose steadily thru the afternoon. Dow Jones
reports three month nickel ended the day at $10.24/lb
. Stockpiles
of nickel rose yesterday, and now sit just shy of the 119,600 tonne level.
Sucden's day old chart show rangebound nickel's slump yesterday
(chart here). Nickel is benefitting in part by a rebounding
Euro, which makes the purchase of the metal less expensive. Commodity markets
are still trying to decide how to take yesterday's Fed report. The Baltic
Dry Index fell 76 points, and another day of acceleration in the declining
number. China is on holiday for the remainder of the week for the Mid-Autumn
Day Festival.
Jinchuan prepares
US$2 billion to build nickel plant - Jinchuan Group Ltd, the largest mining
company in China, plans to spend US$2 billion on a nickel plant in Halmahera,
North Maluku. -
more
The manipulation
of iron ore prices - Who does fix the prices of iron ore? Steelmakers across
the globe, but particularly the ones in China hold the triumvirate of Vale,
BHP Billiton and Rio Tinto responsible for manipulating ore prices to its
advantage. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $.04/lb
lower, with most other
London traded base metals higher. The Euro is trading over 8/10 of 1% higher
against the US Dollar. NYMEX crud eis up 3/4 of 1% and trading at $75.54/barrel.
Gold is trading over 1/2 of 1% higher while silver is up the same. In overnight
trading, Asian markets ended slightly higher, with China markets closed for
the remainder of the week for a holiday. European markets are lower this
morning, while US futures show Wall Street could open lower. Nickel inventories
rose overnight.
SSINA Releases Market Data for June 2010 -
pdf here
Outokumpu October Stainless Steel Surcharges -
pdf here
Commodity/Economic Comments
Edward Meir of MF Global Morning Comments - The various markets digested
quite a bit of news yesterday, and then ended up doing mostly… nothing.
Metals ended slightly lower on the day, with the start of the Chinese holidays
likely adding to the lackluster tone. The US stock market finished narrowly
mixed as well, after the long-awaited Fed statement came out showing the
central bank not doing anything -- pretty much in line with consensus thinking.
What the central bank did say, was that it was prepared to take new steps
to bolster the recovery if necessary, as it still characterized growth as
being “modest". However, officials deferred any action for now, apparently
still debating whether to restart a program of securities purchases aimed
at driving interest rates even lower. Inflation was referenced as being below
the Fed's long-run comfort level of between 1.5-2%, with prices up just 0.9%
in August vs. a year ago. .... Short-term, we suspect that many metals are
somewhat toppy at these levels given that they are trading on the higher
end of their ranges, and need something to trigger a further breakout. The
crumbling dollar may provide the fodder for such a move higher, but working
against that, is the continued unease about growth prospects going forward,
particularly here in the US. Nevertheless, longer term and into 2011, we
are generally friendly towards most of the metals group, and see a higher
trading range set in over the group as outlined in our longer-term piece
released yesterday. .... Nickel is at $22,435, up $80, and ticking over into
positive territory just in the last thirty minutes after being down all day.
The $23,670 mark remains key resistance. (read Ed Meir's complete
morning base metals report
here)
Global nickel market
seen in deficit of around 85,000t this year - The global nickel market will
be deficit of about 85,000 tonnes this year and will return to a demand/supply
balance from next year due to new capacity coming on stream, a leading analyst
said earlier this month. -
more
Arcelormittal
Announces Appointment of New Chief Executive of Its Stainless Division -
ArcelorMittal today announces that Mr Bernard Fontana has been appointed
Chief Executive of its Stainless Division, which is currently being assessed
for a potential spin-off. -
more
Market Tendency
On Imports Of Ferro-Alloys At 15th September 2010 = Panic Of Ferro-Silicon
Arisen In China - The market tendency by item on imports of ferro-alloys
into Japan at the 15th September of 2010 is as follows -
more
PNG landowners summoned
to court to explain apparent backdown on tailings disposal - Reports from
Madang in Papua New Guinea indicate that legal action to stop the Chinese
owned nickel producer, Ramu NiCo, from building an offshore tailings disposal
system is being dropped. -
more
Three Papua New Guinean villagers have been summoned to appear before
Madang’s National Court tomorrow when the legal case over the validity
of the planned Ramu nickel mine marine tailings system could be decided.
-
more
Nickel mining
firm adopts a mountain in Palawan - Berong Nickel Corporation (BNC), a nickel
mining conglomerate in southern Palawan engaged in the exploration, development,
and mining of nickel laterite deposits, has adopted a mountain in the town
of Quezon for a tree planting project as part of its commitment to the
environment. -
more
BHP Billiton
chairman Jac Nasser concerned for fragile recovery - BHP Billiton believes
its key Asian market remains robust, but it is concerned about the fragile
state of the global economy. -
more
BHP Billiton chief given 9% pay rise - BHP Billiton Ltd chief executive Marius
Kloppers was handed a nine per cent rise on his pay package last year, to
$US11.3 million ($A11.86 million). -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China May Unveil Property Tax Measures
Around October to Cool Home Prices // Yuan Climbs to Strongest Since 1993
as Obama Criticizes China // China Says Calls to Strengthen Yuan `Unwise'
in Response to Obama Remarks // China to Boost Minimum Wage 20% Annually
for Five Years, Morning Post Says // U.S. Loses No. 1 to Brazil-China-India
Market in Investor Poll // Bridgestone, Goodyear Face Worst Rubber Shortage
in Four Years // Most Asian Stocks Dip as Copper Falls, Yen Rises; Technology
Shares Gain // Ireland Sells Bonds, Calms Concern That Bailout Needed //
Greece Aims for Return to Bond Market as Budget Deficit Shrinks // European
Stocks Decline as Nokia, Deutsche Bank Retreat; Wellstream Surges // Fed
Under Pressure Amid Confusion Over New Easing // Durbin Wants Focus on Jobs,
Not Deficit, Until U.S. Jobless Rate Under 9% // Housing Starts in U.S. Increased
More Than Forecast in August // Payrolls Decrease in 36 U.S. States in Sign
Labor Recovery Will Take Time //
The Euro is now trading slightly over 1/2 of 1% higher against the US Dollar.
NYMEX crude oil is down over 2.4% and trading at $73.05/barrel. Gold is off
more than 4/10 of 1% and silver is lower by nearly 9/10 of 1%. Base metals
ended the session mostly lower and quiet. Indicator charts show nickel spent
the session in slow and gradual decline. Dow Jones reports three month
nickel ended the day at $10.14/lb. Stockpiles of nickel
stored in LME approved warehouses fell under the 118,900 tonne level overnight,
but the total remains within the 116-120,000 tonne range it has been in since
mid July. Sucden has not updated their nickel trading chart since the 16th.
China Customs released numbers today showing exports of refined nickel
from China were down 30.06% in August compared to August 2009, while year
to date numbers show a 406.05% increase. Imports of refined nickel into China
during August fell 20.35% compared to the same month in 2009, and for the
year, imports are down 36.84%. The World Steel Association reported world
crude steel production for August was up 4.2% compared to August 2009,
while China's production was 1.1% lower during the same period. The Baltic
Dry Index slipped by 66 points and reversed its slowing momentum. World markets
are on hold today in anticipation of what actions the US Fed may or may not
take.
MF Global LME Metals Market Outlook for 2011 -
pdf here
Commodity/Economic Articles and Comments
(Reuters) Barclays Capital declined on Monday to comment on market talk that
it has a significant long position on the London Metal Exchange's nickel
contracts for October delivery. Latest LME data showed there is a long position
holding more than 40 percent of nickel futures contracts for delivery on
the third Wednesday of October.
(Kitco) Base metals should rise as the last quarter of the year starts soon,
as industrial activity traditionally picks up. These metals had a
“surprisingly resilient” summer and the fall should be even more
robust, says Credit Agricole.
Guest Post: Is America Today In Worse Shape Than Japan During Its Lost Decade?
-
more
Cuba Fires Industries
Minister for Inefficiency, Failure to Lure Investment - Cuban President Raul
Castro replaced the island’s minister of basic industries, citing
mismanagement and a failure to attract investment. -
more
Severstal Buys
Stake In Nickel Miner - Russian miner and steelmaker Severstal is diversifying
into nickel, and has bought a 21.7% stake in Norwegian mining and development
company Intex, via its subsidiary firm, Lybica Holding. The deal is estimated
at $12.5m (€9.55m). -
more
A standard solution
to corrosion resistance - In nuclear, medical, food and pharmaceutical
engineering, corrosion resistant linear motion is a major requirement. .....
If you are seeking maximum corrosion resistance in a linear motion system,
stainless steel is clearly the best option. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $.10/lb
lower and declining,
while other London traded base metals are mostly lower. The Euro is trading
1/2 of 1% higher against the US Dollar. NYMEX crude oil is down more than
1-1/4% and trading at $73.91/barrel. Gold is trading lower by 3/10 of 1%
and silver is off nearly 1/2 of 1%. In overnight trading, Asian markets ended
slightly higher , with China up over 1/4 of 1%. European markets are slightly
higher this morning, and US futures show Wall Street has yet to determine
an opening direction. All eyes are on the Fed today and traders wait word
if the Fed will take anymore action to stimulate the recovery. Nickel inventories
fell yesterday.
Edward Meir of MF Global Morning Comments - Metals had a strange day yesterday
in that earlier advances were rolled back just as other markets picked up
steam. Crude oil, for example, snapped a four-day losing streak to finish
higher, while the US stock market hit 4 1/2 month highs, partly on news that
the National Bureau of Economic Research, (the official arbiter when it comes
to judging when recessions start and end), declared the US recession to have
officially ended in June of last year. This makes the 18-month downturn that
started in December 2007 the longest contraction since the Great Depression.
The NBER also acknowledged the risk of double-dip setback in its statement,
but said "The committee decided that any future downturn of the economy would
be a new recession and not a continuation of the recession that began in
December 2007. The basis for this decision was the length and strength of
the recovery to date”. Markets are not doing very much as of this writing,
with metals mixed on account of a three-day Chinese holiday that already
started, while crude oil prices are slightly lower after yesterday's good
run. US equity markets are called to open lower as well. Investors are waiting
for August housing starts and building permit data out of the US later today
(expected around 545,000 annualized) as well as the more important Fed policy
statement that comes out in the afternoon. The statement will give investors
a chance to see whether the central bank is contemplating any new action
in an effort to kick-start the economy. The consensus view, according to
one "Fed-watching" website we access, is that the Fed will lower its economic
growth projections, but will hold off expanding its balance sheet for the
time being. Fed-watchers will also want to see whether Kansas City Fed President
Hoenig remains the lone dissenter on easier money. ... We present highlights
of the Chinese data in the table contained in our attachment (see pdf report).
.... Nickel is at $22,925, down $150, with prices having trouble breaking
above $23,670 resistance. If they do, we could have another technical breakout
on our hands. (read Ed Meir's complete morning base metals report
here)
(Yieh) Taigang Stainless Steel Co. Ltd announced its new prices of stainless
steel. The prices of 304 grade and 430 increased by RMB300/ton and RMB200/ton
respectively.
(MB) Chinese nickel imports up 27% in Aug on better demand
Defaults Account for Most of Pared Down Debt -
more
August 2010 Crude
Steel Production - World crude steel production for the 66 countries reporting
to the World Steel Association (worldsteel) was 113 million metric tons (mmt)
in August. This is 4.2% higher than August 2009.
- more
Australia's
Nickel Production To Rise 15% In 2011 - Abare - Australia's nickel production
will rise 15% to 188,000 tons over the coming year due to the ramp-up of
Western Areas N.L.'s (WSA.AU) Flying Fox and Spotted Quoll mines, a government
forecast said Tuesday.
- more
Villagers’
withdrawal from court could decide PNG’s Ramu nickel case - Three Papua
New Guinean villagers have been summoned to appear before Madang’s National
Court tomorrow when the legal case over the validity of the planned Ramu
nickel mine marine tailings system could be decided. -
more
NG villagers fear after court no-show - Three Papua New Guinean villagers
are missing after informing a court via fax they want to drop their legal
challenge against the construction of a controversial nickel mine near Madang.
-
more
Hebei Iron to cut
steel output by 1.5 mln tons for Sep-Dec - Sep. 21, 2010 (China Knowledge)
- Hebei Iron and Steel Co Ltd, formerly known as Tangshan Iron & Steel
Co Ltd, on Sep. 15 announced that it plans to reduce raw steel output by
around 1.5 million tons in the period from September to December, and the
amount will account for 6% of sales goal for 2010. -
more
Courtesy AISI - In
the week ending September 18, 2010, domestic raw steel production was 1,714,000
net tons while the capability utilization rate was 70.9 percent. Production
was 1,486,000 tons in the week ending September 18, 2009, while the capability
utilization then was 62.1 percent. The current week production represents
a 15.4 percent increase from the same period in the previous year. Production
for the week ending September 18, 2010 is down 1.8 percent from the previous
week ending September 11, 2010 when production was 1,744,000 tons and the
rate of capability utilization was 72.1 percent.
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) Nissan Plans to Almost Double China
Capacity by 2012, Ghosn Says // Yuan Advances to Strongest Level Since 1993
on U.S. Pressure on Currency // Typhoon Fanapi Makes Landfall in South China's
Fujian Province // China Stocks Drop to Five-Week Low on Economic Growth,
Loan Curbs Concern // Thailand Exports Rise for 10th Consecutive Month,
Weathering Baht Strength // Singapore, Malaysia Will Change Land-Swap Agreement
to Improve Relations // China Suspends Ministerial-Level Talks With Japan
Over Boat Clash // Asian Stocks Rise on Profit Speculation; Taiwan Semiconductor,
BYD Climb // Europe Debt Crisis Abates as Traders See Yield Spreads Narrow
// Escaping Double Dip to Growth Recession Means No Job Relief // Pimco Buys
Bank Debt as Default Protection Costs Slump // Six Banks Fail, Community
& Southern Acquires Three // Homebuilder Confidence Holds at Lowest Level
in a Year as Tax Credit Ends // Treasury Yield Curve Flattens on Speculation
Fed to Be More Accommodative // U.S. Stocks Advance on Lennar, IBM; Irish,
Portugal Yields Jump
The Euro is trading nearly 2/10 of 1% higher against the US Dollar. NYMEX
crude oil is up 1-2/3% and trading at $74.90/barrel. Gold is up nearly 4./10
of 1% and silver is trading flat. Base metals ended the session mostly lower
as traders took profits ahead of the Fed meeting in the US tomorrow. Indicator
charts show nickel slid thru most of the day. Dow Jones reports three month
nickel ended the day at $10.46/lb. Stockpiles
of nickel stored in LME approved warehouses feel Friday, and now sit just
over the 119,200 tonne level. While days reporting more declines than gains
are ahead 2 to 1 this month, LME warehouses still are stockpiling more nickel
than they have had since mid-July. The Baltic Dry Index slipped for
its 6th consecutive session, down 48 points, but the rate of decline is
decelerating. It's official. The Great Recession, has it is now being called,
only lasted from December 2007 till June of 2009, which means we have been
out of it for nearly 15 months now. As Rex Nutting from MarketWatch noted
"There’s a lot of misunderstanding about what the words
“recession” and “expansion” mean. To an economist, the
meaning is technical: A recession is a period of declining economic activity
and an expansion is a period of increasing activity. To be in an expansion
does not mean that everyone is employed, nor does it mean that milk and honey
flow endlessly from the Big Rock Candy Mountain." The International Stainless
Steel Forum reported this morning that "stainless steel crude steel
production has increased in the first half of 2010 by 44.3% compared to the
same period of 2009." Prety impressive figure!
(Natasha Boyden) We suggest that the trend of smaller Chinese steel mills
closing to meet energy efficiency goals is continuing to put negative pressure
on iron ore import volumes. However, we note that iron ore inventory stocks
at Chinese ports have fallen dramatically in recent weeks, which could be
a source of marginal demand if Chinese mills decide to restock.
(Scott Burk) China produced 99.6M tons of iron ore in August, according to
data from the Chinese General Administrations of Customs. Domestic ore output
reached a record of 101.6M tons in June and output over the January-August
period stood at 685M tons, up 28.4% compared with the first eight months
of 2009. Steel output in August was largely unchanged compared to July at
51.6M tons, but iron ore imports fell 13% on a monthly basis to 44.6M tons.
China has been ramping up domestic production to help reduce its reliance
on imports from the three major miners. However despite rising prices, large
steelmakers such as Baosteel have indicated that they will continue to use
higher quality imported iron ore for the foreseeable future.
The battle for
Russia's metal giant - In the escalating battle for control of Norilsk Nickel,
Russia’s biggest mining company, the scales may have temporarily tipped
in the direction of Oleg Deripaska – after prosecutors found
“procedural violations” in the elections for its board of directors.
-
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $.06/lb
higher but fading,
with all base metals trading slightly higher this morning. The Euro is trading
1/3 of 1% higher against the US Dollar at the moment. NYMEX crude oil is
down 1/10 of 1% and trading at $73.59/barrel. Gold is trading higher by 1/2
of 1% and silver is up 2/3 of 1%. In overnight trading, Asian markets ended
slightly higher, with China off 4/10 of 1%. European markets are trading
higher this morning, and US futures show Wall Street should open in a bullish
mood. Nickel inventories fell Friday.
Edward Meir of MF Global Morning Comments - Copper finished higher again
on Friday, hitting nearly five-month highs and pulling the rest of the metals
up along with it. (COMEX copper notched up its best weekly gain in seven).
US data showing consumer sentiment unexpectedly worsening in early September
to its weakest level in more than a year did not seem to affect the complex
much, although it did help trim gains in the US stock market, while sending
crude oil prices lower for their fourth consecutive loss. Right now, we are
higher in metals on very little news apart from continued dollar weakness.
US equity markets are called to open higher, while commodities, in general,
seem to be back in vogue, with gold and silver marching to record highs each
day. Not to be outdone, the grains complex is also on a tear, with corn at
a two-year high and soybeans at a fourteen-month high. .... Trading in metals
may be slow this week due to a market holiday in Japan on Monday and Chinese
holidays from Wednesday to Friday. (China will also be off for a week starting
on October 1st ). In the meantime, the mood remains quite “buyerish”
as a weak dollar, steadily declining stock levels, and more encouraging macro
growth readings that are moving us away from recessionary possibilities,
all helping the fairly buoyant tone. ..... Nickel is at $23,350, up $150,
as prices close in on next resistance at $23,670 (red line). Should we take
that level out, the upside looks wide opened on the charts, and we could
climb to $25,800. (read Ed Meir's complete morning base metals report
here)
(MSN) Analysts said besides strong demand at spot markets from alloy makers,
firming trend in copper and other base metals at the London Metal Exchange
after a weak dollar boosted demand for the raw materials as an investment
option, raised the nickel futures prices here.
(AP) Indonesian state mining company PT Aneka Tambang said it wants to team
up with Jinchuan Group Ltd from China to develop a nickel mine on the island
of Gag off Papua.
(FA) Tsinghai Tianyi Smelting Co., Ltd was required to shut two ferrochrome
furnaces with 200,000-ton annual capacity, which badly polluted the surrounding
air environment in test operation period.
(JMB) Japan Iron and Steel Federation's chairman Eiji Hayashida said at the
monthly press conference on Thursday Japanese raw steel output could decrease
several percent in October-December compared with April-September level.
(SMM) A SMM survey of output at NPI producers in August reveals that
China’s physical output of NPI was 334,391 mt in August, up by 1.95%
MoM or equaling 18,261 mt of metal output after conversion, up by 30.9% MoM.
Almost 59% of metal output is from (10-15%) NPI, 28% is from (4-6%) NPI,
and 13% of metal output is from (1.7-1.8%) NPI.
(SM) According to the American Forest & Paper Association's August 2010
U.S. Paperboard Report released today, total boxboard production increased
by 3.9% compared to August 2009, and but dropped 0.8% from previous month.
(MP) Vale-union talks to resume in hopes of ending Voisey’s Bay nickel
strike
Stainless
steel production for first half of 2010: More than 40% increase - Preliminary
figures released by the International Stainless Steel Forum (ISSF) show that
stainless steel crude steel production has tremendously increased in the
first half of 2010 by 44.3% compared to the same period of 2009. -
more
AK Steel Announces
Price Increases for Certain Stainless Steel Products - AK Steel said today
that it will increase transaction prices for specialty flat-rolled stainless
steel products in the 200, 300 and 400 series, as well as duplex and
precipitation hardening grades, effective with shipments on November 1, 2010.
-
more
‘Mining’
Stainless Steel - Stainless steel is first a product; and, after a useful
life, often measured in decades, it becomes a resource. This is true of all
types of stainless steels but especially the nickel-containing grades which
make up 55-60% of all stainless steel. -
more
Steel, Aluminum Shipment
Growth Rate Rebounds - The rate of growth of steel and aluminum shipments
from North American metals service centers rebounded in August, the Metals
Activity Report from the Metals Service Center Institute shows. Inventories
of both metals changed very little during the month in both the United States
and Canada.
-
more
OMC not to supply
ore to new projects in Orissa - At a time when the demand for iron ore and
chrome ore in Orissa is growing significantly due to the rush of investment
proposals in the steel and mines sector, the state government owned Orissa
Mining Corporation (OMC) has categorically stated that it would not be able
to supply these two ores to any new MoU (Memorandum of Understanding) signed
player in the near future. -
more
Delay in PNG Ramu
trial as landowners sued for security over costs - The trial in a Papua New
Guinea court case which has halted the Ramu Nickel project in Madang province
has been delayed a day due to last minute motions filed by the Government
and the mine operator. -
more
Alfa Group sets up
JV in Cuba to process nickel tailings - Palmira Resources Limited, a subsidiary
of Russia's Alfa Group financial-industrial conglomerate and Cuba's Commercial
Caribbean Nickel S.A., have set up a joint venture to process nickel tailings
on the island, Alfa Group's Alexei Mikhailovsky said on Monday. -
more
Cuba fires minister
in charge of oil and nickel - Cuba fired Basic Industry Minister Yadira Garcia,
in charge of the oil and nickel industries, on Sunday and said the first
vice minister would stand in until a replacement was named. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
The Euro is currently trading nearly 3/10 of 1% lower against the US Dollar.
NYMEX crude oil is down 1-1/2% and trading at $73.46/barrel. Fold is up over
1/10 of 1%, having set a new record high today, and silver is up 3/10 of
1%. Base metals ended the day quietly, coming off earlier highs to end mostly
higher. Indicator charts show nickel rose early and fell late. By the end
of the session, Dow Jones reports three month nickel ended the day and week
at $10.52/lb, down $.02/lb on
the day, but $.31/lb higher for the week. Sucden's day old chart shows
trading thru yesterday
(chart here). Have a safe and relaxing weekend!!
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.08/lb
higher, with all London
traded base metals higher this morning. The Euro is presently trading slightly
lower against the US Dollar. NYMEX crude oil is down over 2% and trading
at $74.45/barrel. Gold is up slightly and silver is trading nearly 3/10 of
1% higher. In overnight trading, Asian markets ended higher, with China
up over 1/10 of 1%. European markets are trading higher at the moment,
and US futures imply Wall Street will open on the positive side. Nickel
inventories fell overnight. Our afternoon update may be delayed today.
Edward Meir of MF Global Morning Comments - Metals continued to push higher
yesterday in a session that was quite unusual in that the various markets
all went their separate ways. Oil, for example, continued to tumble, falling
for a third straight day. Gold remained steady, while US equity markets made
up earlier losses and closed slightly in the black. The dollar was mixed,
weakening against the euro, but holding firm against the yen, as traders
remained wary about intervention by the Bank of Japan. Macro data out of
the US was also mixed, and did not help sentiment one way or another either.
Weekly initial claims were better than expected, but a Midwest manufacturing
gauge issued by the Philadelphia Fed came in on the weaker side. This morning,
we are higher once again, with copper trading at just under $7800 resistance,
a four-month high. Continued erosion in LME stockpiles, coupled with further
weakness in the dollar, particularly against the euro, are both combining
to provide underlying support. Oil prices are also participating on the upside
today, up about $.60/barrel, while gold has hit a new record high of $1280.
.... Nickel is at $23,430, up $190, as prices continue to gain ground;
we are looking for two closes above $23,000 resistance level to justify another
leg higher (read Ed Meir's complete morning base metals report
here)
(Bloomberg) Nickel rose 1.1 percent to $23,495 a ton after reaching $23,570,
the highest intraday price since May 10. The market moved into a so-called
backwardation for the first time in more than a year on Sept. 14 as
immediate-delivery nickel traded at a premium to three-month metal. Cash
nickel traded at a premium of $7 a ton to the three- month contract yesterday,
widening from $5 in the prior session, according to the latest LME figures.
Cash metal was at a discount of $6 on Sept. 13.
(MF) Affected by macro-economic control and power rationing, the output of
Chinese crude steel and imported iron ore appeared the recession in August.
According to National Bureau of Statistics of China, the production of crude
steel in August cut down by 595,000 tons from a year ago to 51.64 million
tons.
(Yieh) According to statistics, Japan's stainless steel output in July decreased
to 259,859 tons, down by 6.4 percent compared to June.
(Yieh) The Korean Trade Commission has initiated an investigation of antidumping
on stainless steel plate from Japan.
(JMB) Japan Iron and Steel Federation's chairman Eiji Hayashida said at the
monthly press conference on Thursday Japanese raw steel output could decrease
several percent in October-December compared with April-September level.
He said steel demand slows in Asia while the domestic demand decreases for
automobile due to finished subsidiary for eco-friendly vehicle and the demand
recovers for shipbuilding and construction machinery slightly.
(AP) Two nickel mining companies in Bunta and Masama subdistricts, Banggai
regency of Indonesia's Central Sulawesi, have started exploiting the mineral
this year. Head of geological and human resources control of the Banggai
mining and energy agency Mahmud said in Luwuk Thursday one of the companies
in Bunta will even start exporting nickel in the middle of next year.
(Interfax) The price of iron ore has been cited as the most important factor
in determining the profitability of China's steel mills. As pricing negotiations
between China's steel mills and the three global iron ore giants remain at
an impasse, China has embraced consolidation of the steel industry as a means
of strengthening its bargaining position.
Christopher Burton, senior portfolio manager for the Credit Suisse Total
Commodity Return Strategy - "In this type of environment, the potential that
inflation will rise at greater than expected levels could pose a significant
concern for investors. We believe investors will continue to seek the
diversification benefits provided by commodities, along with their potential
inflation hedging abilities."
(Dow Jones) The dollar is under pressure, as the market fears more quantitative
easing is on the way, making the dollar-denominated metals cheaper for other
currency holders.
Commodities ETFs “easy target” for criticism -
more
Doomsday warnings of US apocalypse gain ground -
more
U.S. Economy "Gradually Deteriorating," Levy Says: Recession Likely in 2011
- more
Stainless steel demand
to bounce back - Chief executive of Finland’s Outokumpu expects stainless
steel demand in Europe to fall 10-20 percent in the third quarter from the
previous quarter and pick up later this year. -
more
Palawan gov
dismayed over DENR-issued ECC to nickel mine - Palawan Governor Abraham Kahlil
Mitra has expressed dismay over the issuance of an environmental compliance
certificate (ECC) by the Department of Environment and Natural Resources
(DENR) to MacroAsia Corporation which operates the Infanta nickel project
in Brooke's Point, Palawan. -
more
Groups seek repeal of mining policies - Various groups have called on the
government to ban mining activities in the country due to supposed missed
targets in the areas of employment, environmental protection, and indigenous
peoples’ rights. -
more
Japan Aug crude
steel output down 3rd straight month - Japan's crude steel output fell for
a third straight month in August as growth in exports slowed and mills cut
back, hit by price corrections in China. -
more
China's imported
iron ore prices drop in Q4 - The world's three largest iron ore mining giants
BHP Billiton Ltd, Rio Tinto PLC and Vale S.A. cut the contracted prices of
iron ore for Chinese steel makers in the fourth quarter, and the prices were
10% to 13% lower than that of third quarter, sources reported. -
more
Should iron ore
be a state asset? - The Karnataka High Court on Thursday ordered issuance
of notices to both state and central governments and mining companies with
regard to a Public Interest Litigation seeking a declaration that iron ore
in the state be declared as a state / national asset. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China's Stricter Capital Rules Will
Curb Loans, Goldman Says // Geithner Says U.S. Examining Ways to Push China
on Yuan Rise // Hong Kong's Jobless Rate Slides to 20-Month Low of 4.2%,
Aiding Recovery // Container Lines Show `Strong Interest' in Using Derivatives,
Group Says // China Stocks Drop Most in Three Weeks Amid Bank Loan Restriction
Concerns // BOJ Becomes `Wild Card' as Kan May Push for More Japan Stimulus
// India Raises Interest Rates a Fifth Time to Contain Inflation // Zimbabwe
Says Posco Is in Mining Talks as South Korea Seeks Raw Materials // Asian
Stocks Fall, led by Banks, Mining Shares; Japanese Exporters Advance // Gold
Rises to Record on Increased Demand for Wealth Protection // Inflation
Expectations Climb to Highest Since August 2008, Beating Target // European
Exports Declined in July on Global Economic Slowdown // Global Economy Is
Poised to Skirt Second Recession, Fidelity's Bolton Says // FedEx Reports
Profit That Trails Estimates, Announces Job Cuts // U.S. Home Seizures Reach
Record for Third Time in Five Months // Dow May Advance 23% by June on Economic
Rebound, Acampora Says // Small Business Can't Get Loans From Bailed-Out
Banks in U.S. // Kraft CEO Rosenfeld Says U.S. Recovery Progressing Slower
Than Expected // Jobless Claims in U.S. Unexpectedly Fell Last Week to 450,000
// Manufacturing in Philadelphia Area Shrank This Month // U.S. Poverty Rate
Climbed to 15-Year High in 2009 as Recession Took Toll // Stocks Retreat
on FedEx Forecast, U.K. Sales; Gold Advances
The Euro is trading just shy of 1/2 of 1% higher against the US Dollar. NYMEX
crude oil is down over 2.1% and trading at $74.40/barrel. Gold is up nearly
4/10 of 1% and silver is up over 2/3 of 1%. Base metals ended the day mostly
higher, although it was not a smooth drive for most. Indicator charts show
nickel was very choppy today, with the stronger Euro offsetting less than
encouraging economic news. Dow Jones reports three month nickel ended the
day at $10.54/lb.
Stockpiles of nickel stored in LME warehouses slipped overnight and now stand
just over the 119,750 tonne level. Sucden's day old chart shows nickel trading
thru yesterday and an uptrend that remains intact
(chart here). The International Nickel Study Group reported
this morning that refined nickel production exceeded demand by 6,500 tons
in July. This came a day after the WBMS reported nickel stood at a
51,000-metric-ton deficit from January thru July of this year. This chart,
posted by a foreign newspaper, shows the INSG stats since 2005
(chart here). The
Baltic Dry Index fell another 103 points overnight, but based on yesterday's
100 point drop, the fall rate slowed, at least for today.
(Dow Jones) Nearby spreads in nickel continue to tighten, with the Oct/Nov
spread moving further into backwardation, says Standard Bank. .... Says it
sees the market tightening up more in 4Q compared to 3Q.
Now There Are 11 Signs That We Won't Have A Double Dip Recession -
more
Lower nickel prices
on the way - Consumption of refined nickel is likely to outpace production
in 2010, leading to a small supply deficit with new supply side production
eventually oversupplying the market in 2011. -
more
Downstream
jobs hostage to high steel price in SA - Approximately 60 percent of downstream
steel firms said they would increase employment by more than 10 percent if
steel prices were 30 percent lower, the portfolio committee on trade and
industry was told yesterday. -
more
Osborn wins crusher
orders for Russian ferrochrome - Reflecting the inroads it is making into
the Russian market, Johannesburg-based bulk materials handling and minerals
processing specialist, Osborn (part of Astec Industries), has won an export
order for three of its Hadfields double-toggle jaw crushers for at a ferrochrome
crushing plant at Chelyabinsk. -
more
U.S. steelmakers warn
economy still slow - Three top U.S. steelmakers are warning of depressed
third-quarter results, signaling that the economy may not be rebounding from
the recession as quickly as originally believed. -
more
Asia Steel-China
prices unmoved by supply cuts - Steel prices on the Chinese spot market dipped
slightly this week, with traders unmoved by claims that a nationwide
energy-saving campaign would reduce supply. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $.03/lb
higher, with other
base metals trading mostly higher. The Euro is trading nearly 6/10 of 1%
higher against the US Dollar. NYMEX crude oil is trading 1% lower and at
$$75.26/barrel. Gold is up over 1/2 of 1% and at new record highs. Silver
is up 1/2 of 1%. In overnight trading, Asian markets ended lower, with China
off nearly 2%. European markets are lower this morning, and US futures show
Wall Street may open lower . Nickel inventories slipped overnight.
Edward Meir of MF Global Morning Comments -Metals ended with modest losses
on Wednesday in a very quiet session, as dollar steadiness against the yen,
concern about tightening in China, and lukewarm macro reports out of the
US, all held the complex somewhat in check. On the US macro side of things,
August industrial production numbers came out at .2%, only slightly below
the .3% consensus, but the markets were likely more troubled by the revision
to the previous month's reading, where a solid 1% gain was trimmed to .6%.
This is yet another indication that the US economy is indeed decelerating.
In addition to the IP numbers, the New York Empire manufacturing index came
out at 4.1, slightly below the 6.4 reading expected. This morning, we are
modestly higher in metals, except in lead, where we see a slight loss. Energy
markets are lower for a third straight session, while the dollar is mixed
-- down against the euro, but higher against the yen, as currency traders
remain wary about yen selling by the Bank of Japan. A few headlines out today
arguably make the case for short-term sloppiness in a number of markets.
The main one, in our view, is the ratcheting up of pressure on China by the
Obama administration to revalue its currency more aggressively, and the potential
steps the US may take to prod the Chinese to move along. Treasury Secretary
Geithner, in separate hearings before the House and Senate, plans to acknowledge
on Thursday that China has kept the value of the renminbi artificially low,
and has largely failed to improve things as it promised to do so in June.
(In fact, the Chinese currency has appreciated only 1% since that time).
“We are concerned, as are many of China’s trading partners, that
the pace of appreciation has been too slow and the extent of appreciation
too limited,” Mr. Geithner plans to say, according to excerpts of his
statement released Wednesday night. In addition, Mr. Geithner is not expected
to rule out declaring China a currency manipulator, a finding that could
lead to retaliatory trade measures. In the meantime, the US has stepped up
taking up other trade actions, and just yesterday, brought two more cases
to the World Trade Organization accusing China of improperly blocking imports
of a specialty steel product and denying credit card companies access to
its markets. Should we continue to see an escalation over this matter, it
is only a matter of time before sentiment in the US equity markets will turn
negative and potentially impact metals, as trade issues form a critical
underpinning in most markets, particularly those having to do with China.
... nickel is at $23,216, up $11; another close above $23,000 later today
could set the stage for a further advance on the charts. (read Ed
Meir's complete morning base metals report
here)
(MFG) Refined nickel production was 116,500 metric tons in July, exceeding
demand of 110,000 tons, the International Nickel Study Group said today.
This is the fourth month of surplus in a row.
(Dow Jones) Yesterday - The world nickel market was in a 51,000-metric-ton
deficit between January and July, the World Bureau of Metal Statistics said
Wednesday.
(Yieh) In spite of the fact that nickel price hit the new level, Taiwan’s
Yieh United Steel Corp. (Yusco), Tang Eng and Walsin will remain their prices
unchanged for the second half of September.
(Interfax) China's central government is unlikely to issue policies in the
near future that could further curb steel product exports, an official with
the General Administration of Customs (GAC) said at a Sept. 15 conference
in Shanghai.
(AP) Japan's Mitsui & Co. said Wednesday that it will participate in
the Taganito nickel smeltering project being developed by Sumitomo Metal
Mining Co. in the Philippines. ... Mitsui will buy a 15 per cent interest
in Taganito HPAL Nickel Corp., a wholly owned Sumitomo Metal Mining subsidiary
undertaking the project, for an undisclosed amount via a private placement
of shares. Nickel Asia Corp. -- a Philippine nickel mining company in which
Sumitomo Metal Mining has a 25 per cent interest -- will take a 22.5 per
cent stake.
(SM) The American Forest & Paper Association released the August 2010
U. S. Containerboard Statistics Report today. For the tenth straight month,
containerboard production rose over same month a year ago and posted the
highest production amount since August 2008. Total production saw an increase
of 195,400 tons or 7.0% when compared to August 2009 and rose slightly 0.9%
over July 2010. The month over month average daily production reflected a
similar change. Year-to-date 2010 production has increased 9.4% over 2009.
The containerboard operating rate for August 2010 rose 10.8 points over August
2009 to 98.9%.
Job outlook worsens according to Consumer Reports Index
- more
Back to the Future: U.S. Consumers Returning to "Normal" Habits -
more
Banks take over record number of US homes in August -
more
ThyssenKrupp stainless
revamp may precede spin-off - ThyssenKrupp is headed for a major overhaul
of its weak stainless steel business, clearing the way for a possible spin-off
that could stimulate long-awaited sector consolidation in Europe. -
more
Norilsk-Nickel
sails to Asia via Arctic - The first shipment sailed from Murmansk on Wednesday
and will follow the Northern Sea Route to Shanghai. - OAO GMK Norilsk Nickel,
Russia’s largest mining company, sent its first metals shipment to Southeast
Asia via the Arctic.
- more
AK Steel braces for
red ink in 3Q - AK Steel Holding Corp. is projecting a key profitability
measure to slide to the red in the third quarter on higher raw material costs
and a fast-tracked plan to idle one of the company’s furnaces. -
more
Russia mulls 10
pct nickel, copper duty from Nov-IFAX - Russia could introduce a 10 percent
export duty on copper from November and raise the duty on nickel to 10 percent
from 5 percent, Interfax reported on Thursday citing an Economy Ministry
official.-
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China Said to Consider 15% Capital
Ratio for Biggest Lenders // Foreign Investment in China Climbs for 13th
Straight Month to $7.6 Billion // China Stocks Fall Most in a Week as Government
Curbs Fuel Profit Concerns // China Yuan Jumps to Record High Since 1993
on Inflation, Foreign Pressure // Steel Output Cut in China Spurs Prices,
Has `Big' Impact, Tokyo Steel Says // Yen Weakens as Japan Intervenes for
the First Time Since 2004 // Naked Short-Sellers, Derivatives Traders Face
EU Restrictions // U.K. Jobless Claims Increase for the First Time Since
January // European Inflation Eases, Led by Energy; Payrolls Stagnate //
German Financial Workers Most Pessimistic on Finding New Jobs, Survey Says
// European Stocks Fluctuate Near Four-Month High; Peugeot Rallies // Pimco
Makes $8.1 Billion Bet Against `Lost Decade' of Deflation // U.S. Home Prices
Face Three-Year Drop as Inventory Surge Looms // Production in U.S. Cooled
in August as Automakers Scaled Back // Greenspan Says Fiscal Stimulus Has
Been Less Effective Than Anticipated // Manufacturing in New York Expanded
at Slower Pace //
The Euro is trading slightly higher against the US Dollar at the moment.
NYMEX crude oil continues to trade 1-1/2% lower and at $75.66/barrel. Gold
is down more than 1/10 of 1% and silver is 1/3 of 1% higher. Base metals
ended the mid week session mostly lower, except for tin. Indicator charts
show nickel traded quietly lower in the morning, but rose after US markets
opened, only to turn choppy late. Dow Jones reports three month nickel ended
the day at $10.52/lb
. Stockpiles
of nickel rose over night and now stand just shy of the 119,900 tonne level.
Sucden's day old chart shows nickel trading thru yesterday
(chart here). The Baltic Dry Index turned south three
days ago, and instead of resembling a slight correction, the pullback has
picked up steam with each passing day. Overnight, it registered another
100 point drop. Nickel inventories have stalled now for two months, with
today's figures resembling those of July 16th. Yesterday's close was nickel's
best showing since May 4th. Bloomberg has a piece, posted below, that reports
nickel has moved into backwardation on the fears of a shortage in nickel.
This is being caused by some unknown trader owning over 1/3 of the LME inventory.
In other words, its called a huge gamble - or in laymen's terms, manipulation
of the market. Totally legal, but we will see how it works out for them.
In the mean time, stainless steel producers nd users get to pay for this
little experiment.
(Dow Jones) WBMS: World Nickel Market In 51,000-Ton Deficit Jan-Jul
(ADP) Steel output in Spain jumped by 32% year-on-year to 8.95 million tonnes
in the first half of 2010, data of the Spanish steelmakers association Unesid
showed yesterday.
(Fairfax) Bindura Nickel Corporation: finance options being worked through.
Loan funds for a substantial portion of the funding are said to be available
probably as part of an offtake agreement. Work has started at the Trojan
nickel mine at the smelter site.
(Nordea Weekly) Chinese steel mills to close down and Vale financing. The
Chinese government has told 30 steel mills in the Hebei province to reduce
output of steel, potentially for the remainder of the year. Further, another
18 mills were told to close down production for up to a month. Several other
provinces have introduced similar schemes. The effect is two-fold: reduce
steel output and conserve energy following recent energy outages.
(AP) Japan's Toyota Tsusho Corp. (TSE:8015) on Monday announced that it has
taken a stake in India's Kuma Stainless Tubes Ltd. The Japanese trading firm
purchased 30 per cent of the Indian manufacturer's outstanding stock from
leading shareholder Maruichi Steel Tube Ltd. (TSE:5463), which had held a
95 per cent stake in the Indian firm.
(MBA) he Mortgage Bankers Association (MBA) today released its Weekly Mortgage
Applications Survey for the week ending September 10, 2010. The Market Composite
Index, a measure of mortgage loan application volume, decreased 8.9 percent
on a seasonally adjusted basis from one week earlier. This week's results
include an adjustment to account for the Labor Day holiday. On an unadjusted
basis, the Index decreased 27.4 percent compared with the previous week.
Report Blames Big Banks for Payday Loan Growth -
more
U.S. Home Prices Face Three-Year Drop as Inventory Surge Looms -
more
Steel Output Cut
in China Spurs Prices, Has `Big' Impact, Tokyo Steel Says - Steel production
cuts by China, the largest maker of the metal, is having a “big”
impact on the market and is boosting prices, said Tokyo Steel Manufacturing
Co. -
more
Chromite opponents
question air safety - Most people at an air-quality hearing for Oregon Resources
Corp.'s Bunker Hill plant in Coos Bay remained skeptical after hearing a
state Department of Environmental Quality regulator describe dust-control
measures. -
more
Norilsk Nickel
gives 8.5 pct of shares to pension fund ahead of EGM - Norilsk Nickel, the
world's top nickel producer, is giving 8.5 percent of its shares to its pension
fund ahead of the company's extraordinary general meeting on October 21,
Norilsk Nickel General Director Vladimir Strzhalkovsky said on Wednesday.
-
more
Pensions could
use clout with miners in people issues - Pension funds should use the clout
they have to persuade miners to consider environmental concerns and local
people, as that could help boost investment returns from the sector, F&C
Asset Management said on Wednesday. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.07/lb
lower, with most
London traded base metals lower. The Euro is trading over 1/10 of 1% lower
against the US Dollar. NYMEX crude oil is down 1-1/2% and trading at
$75.66/barrel. Gold is down just slightly and silver is off nearly 3/10 of
1%. In overnight trading, Asian markets ended higher, with China 1-3/4% lower.
European markets are lower this morning and US futures show Wall Street could
open lower. Nickel inventories rose overnight.
Edward Meir of MF Global Morning Comments - Base metals finished slightly
higher yesterday, erasing a good portion of their earlier losses. Sentiment
was boosted by a sinking dollar, which got to $1.30 at one stage against
the euro, while the yen also gained ground, pushing to 83 at one stage, a
15-year high. (In fact, the Japanese government intervened in the currency
markets this morning for the first time in six years in an effort to stem
the yen’s rise). With the dollar crumbling, gold prices took off yesterday,
and hit a record high of $1274-- its biggest one-day gain in four months.
The final piece of constructive news came out of the US, where August retail
sales increased more than expected, registering their best monthly gain in
some five months. This morning, we are seeing a slight pullback in metals,
as the steadier dollar has led to some selling in commodities. Oil prices
are off by about $1.20 after putting in a surprisingly weak performance
yesterday. Talk out of China from the country’s banking regulator that
it may consider raising capital adequacy ratios at banks deemed "systemically
important" could be behind the more restrained tone we are seeing today.
.... Nickel is at $23,200, down $150, but has been relatively firm
this week. In fact, prices closed at a four-month high yesterday, while the
cash to three’s spread tipped into a slight backwardation of $2/ton
earlier today. (read Ed Meir's complete morning base metals report
here)
(Yieh) Last week, the stainless steel price increased on the Chinese domestic
market. Market participant said that with the recovery of demand recently,
the Chinese stainless steel market would probably turn better.
(MNP) Nickel rose above a four-month high on the London Metal Exchange overnight,
surging $US500 to reach a price of $23,350 a tonne.
(CD) Baoshan Iron & Steel Co (Baosteel), China's biggest publicly traded
steelmaker, announced on Tuesday it would raise the prices of its major products
by 100 to 380 yuan per ton for October bookings.
(Xinhua) China's power consumption in August reached 397.5 billion kilowatt-hours
(kWh), up 14.69 percent year-on-year, the National Energy Administration
(NEA) announced Tuesday.
Reuters Survey - Highlights -Asia Q3 business sentiment by sector -
more
Kobe Steel publishes factbook and sustainability report online -
more
(MF) Taiwan’s wire rod imports surged by around 3.8 times to 230,000
tons during January to July. Due to the good performance for screw industry
since early of this year, the imports of wire rod increased sharply.
Nickel Market
Moves Into Backwardation for First Time in a Year in London - Nickel for
immediate delivery traded at a premium to three-month metal in London for
the first time in more than a year, potentially signaling concern about scarcity.
-
more
New Caledonia
court gives suspended jail terms to 32 Rheebu Nuu members - The criminal
court in New Caledonia has sentenced 32 members of the environmentalist Rheebu
Nuu group to suspended jail terms for their role in clashes with police near
the construction site of the Vale nickel plant in 2006. -
more
Chinese to
pursue RP nickel project - China's Jinchuan Group Ltd. has renewed its interest
to pursue a proposal to invest as much as $1.5 billion in the rehabilitation
of the Nonoc nickel mines in Surigao province, according to an industry official.
-
more
Mitsui joins
Sumitomo Metal Mining nickel project - Japanese trading house Mitsui &
Co said on Wednesday it will join a $1.3 billion nickel project that Sumitomo
Metal Mining Co Ltd is developing in the Philippines. -
more
BHP boss warns
government not to alter mining tax - BHP boss Marius Kloppers sent
a clear signal to Julia Gillard to resist calls to change the structure of
the mineral resources rent tax. -
more
Norilsk shareholders
meeting made procedural violations says prosecutor - Norilsk Nickel, the
world's largest nickel producer made violations in corporate governance
regulations during its annual shareholders meeting in June, Russia's Prosecutor
General Yuri Chaika said on Wednesday.-
more
Anshan Steel Proceeds
With China's First Steel Mill Project in the U.S. - Anshan Iron & Steel
Group signed an agreement with Steel Development Co. to jointly build a plant
in the U.S., the first by a Chinese steelmaker in the nation -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) Wen Says China's Economy in `Good Shape,'
Cautions on Property // Yuan Surges to Highest Level Since 1993 Before U.S.
Hearing // Conference Board's Leading Economic Index Rises for Third Month
to 147.6 // China Plans to Introduce Credit-Default Swaps by Year-End, Official
Says // China's NDRC Expects Production Materials Prices to Be Stable to
October // Most China Stocks Drop After Wen Comments; Developers Retreat,
SAIC Gains // Japanese Yen Advances to 15-Year High Against Dollar as Kan
Wins DPJ Vote // Japan Premier Kan Defeats Ozawa, Re-Elected Ruling Party
Head // German Investor Confidence Fell to 19-Month Low in September // U.K.
Inflation Unexpectedly Exceeds 3% on Air Fares, Food // Citigroup Tumbles
in European Rankings as Dealmakers Depart // European Stocks Drop; Philips,
E.ON Shares Lead Stoxx 600 Lower // U.S. Small-Business Index Increases for
First Time Since May, Survey Shows // Bernanke 2011 Outlook May Swing Fed
Decision on Bond Purchases // Veterans Agency Made Secret Deal With Prudential
Over Benefits // Retail Sales in U.S. Increase for a Second Month // Stocks,
Treasuries, Gold Gain on Fed Bond-Purchase Speculation
The Euro reversed coarse today and is now trading over 1% higher against
the US Dollar. NYMEX crude oil is up nearly 1/2 of 1% and trading at
$77.57/barrel. Gold is up 2% and hit a record high earlier, while silver
is up 1.9% and trading near record highs. Base metals ended the day mostly
higher, thanks to the higher Euro. Indicator charts show nickel was struggling
early in the day, but after US retail sales rose and the Euro began to rise,
nickel was off to the races again. Dow Jones reports three month nickel ended
the day at $10.59/lb
. Stockpiles
of nickel stored in worldwide LME approved warehouses rose overnight and
now stand just over the 119,000 tonne level. Sucden's day old chart reflects
nickel's recent uptrend
(chart here). The Baltic Dry Index fell for a second
consecutive day, down 36 points to 2,940. Based on the daily official cash
price of nickel, we show cash has averaged $10.05/lb during the first ten
business days of September, compared to $9.71/lb for August. Reuters has
a nice chart showing the last few months of nickel trading
here. So far, the uptrend in the price of nickel remains
intact.
Who Chooses to Work? Who Doesn’t? Who Can’t? -
more
Market Still Deluding Itself That It Can Escape The Inevitable Dénouement
-
more
Goldman's Kostin Turns Bearisher, Suggests More Defensive Mix Of Stocks -
more
Global Economic Crisis: Impacts, Transmission, and Recovery Papers -
more
The US economy: why it matters what sort of crisis we're in -
more
Japan’s
Sumitomo to pursue $1.3B Taganito nickel mine in Surigao Norte - Japan’s
Sumitomo Metal Mining Co. Ltd. is pushing through with the $1.3-billion Taganito
nickel mining project in Surigao del Norte, which it targets to complete
within three years’ time. -
more
Premier visits
Aksu Ferroalloy Plant in Pavlodar region - Within the framework of a working
trip to Pavlodar region Kazakh Prime Minister Karim Massimov has visited
the Aksu Ferroalloy Plant - branch of "TNC "Kazchrome" JSC. -
more
Higher world
prices boost 1st half mineral output value - Mineral production value went
up by over 50% to P49.83 billion in the first half due to higher prices and
demand, a development which government and industry officials said should
encourage miners to hike output and investments. -
more
Garnaut can
be proud of his record in PNG - Everyone enjoys pouring scorn on hypocrites.
Ross Garnaut, who has built an enviable reputation as one of Australia's
leading public intellectuals, might seem a natural target. The higher the
profile, the further the fall. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.01/lb
with other base metals
mixed and quiet. The Euro is trading nearly 3/10 of 1% lower against the
US Dollar. NYMEX crude oil is down over 4/10 of 1% and trading at $76.85/barrel.
Gold is trading over 1% higher, while silver is nearly 1-1/2% higher. In
overnight trading, Asian markets ended slightly higher with China up nearly
1/10 of 1%. European markets are trading lower this morning, and US futures
reflect Wall Street may open slightly lower. Nickel inventories gained
overnight.
Edward Meir of MF Global Morning Comments - This morning, we are mixed, as
an earlier round of losses has reversed itself. Copper is down on the day,
as is lead, but the rest of the metals are slightly higher. The dollar has
bounced back after falling yesterday by its sharpest amount against the Euro
in over two months, and may be behind the more restrained tone we are seeing.
Pressure on the Euro is coming from reports out earlier in the day that German
investor confidence fell to a 19-month low in September. In addition, we
also had reports that European industrial production unexpectedly stagnated
in July after rising in June. In other news, Bloomberg reports that China
will introduce credit-default swaps by year-end, but will restrict their
use to avoid the problems the US credit markets experienced. For one thing,
it will limit the amount of leverage used, and will not permit contracts
to be written on high-risk assets. Investors in the derivatives will also
be required to own the underlying security. The derivatives are being introduced
to help manage risk in the nation's growing domestic bond market, where volume
has grown sharply over the past several years. Speaking of derivatives, Reuters
reported yesterday that UK-based ETF Securities has established an account
with the LME's electronic transfer system for stock warrants, leading to
talk that physically backed base metal ETFs were likely to be introduced
fairly shortly. .... Nickel is at $22,875, up $25, and very quiet.
(read Ed Meir's complete morning base metals report
here)
(Yieh) China’s Taiyuan Iron & Steel (Tisco) has announced to remain
its new prices unchanged for 38th week (September 14th – 20th).
(FF) Falling production in China has lead Baoshan Iron and Steel, China’s
largest publically traded steelmaker to raise prices for the first time in
5 months. Output had fallen to a six month low as companies sought to reduce
over production. Pressure on companies to reduce power usage as the government
tries to hit emissions targets will likely continue to impact output in China
for the rest of the year. Benchmark Chinese steel prices gained 5.6% on average
in August from July
(Interfax) Baoshan Iron and Steel Co. Ltd. (Baosteel), the Shanghai Stock
Exchange-listed subsidiary of Baosteel Group, announced Sept. 14 it will
raise its October ex-works prices for several steel products by between RMB
150 ($22.26) and RMB 300 ($44.52) per ton, an analyst told Interfax the same
day.
(JMB) Chinese raw steel output decreased by 0.2% to 51.64 million tonnes
in August from July, which decreased for 3 months in a row, announced by
Chinese government on Saturday. Chinese major steel makers reduced the production
while smaller makers apparently increased the production.
(Dow Jones) China's Jinchuan Group Ltd. has revived negotiations to develop
the Nonoc nickel mines in the southern Philippines region of Mindanao and
construct a refinery at the mine site, a senior industry official said Tuesday.
(Dow Jones) Sumitomo Metal Mining Co. has begun developing a $1.3 billion
nickel refinery in the southern Philippines, an executive at the Japanese
company's local unit said Tuesday.
(Yieh) Although the price of wire rod in China has surged slightly, it still
cannot attract more orders for Taiwanese screw industry. So far, the decreasing
price of iron ore by 10~14 percent and soft market demand are the main reasons
to determine the performance of screw industry in Taiwan.
(Allegheny) Effective with shipments beginning November 1, 2010, a surcharge
of $409 per ton ($20.45/cwt) is being added to grain-oriented electrical
steel invoices. This surcharge is subject to monthly adjustment.
FeCr Demand Is
Expected To Revive In Q4 / 10 And Its Prices Are Anticipated To Improve =
A View By Yildirim CEO Of Eti Krom / Turkey, Who Came To Japan In Last Week
- Mr. Robert Yuksel Yildirim, President and CEO of Eti Krom Inc. as a major
chrome producer in Turkey, came to Japan and had an interview with our pressman
(Mr. Hideo Saitoh) on the 3rd of September at The Imperial Hotel in Tokyo.
-
more
Nomura Lowers 2010
Copper Price Forecast, Raises Gold, Nickel, Palladium - Nomura Holdings Inc.
lowered its 2010 copper estimates and raised them for gold, nickel and palladium.
-
more
Gold, base metals
and iron ore prospects under microscope - Physical demand looks set to push
gold prices higher in the view of Barclays Capital, as the group suggests
consumers are now realigning their price expectations for the metal. -
more
Courtesy AISI - In
the week ending September 11, 2010, domestic raw steel production was 1,744,000
net tons while the capability utilization rate was 72.1 percent. Production
was 1,486,000 tons in the week ending September 11, 2009, while the capability
utilization then was 62.1 percent. The current week production represents
a 17.4 percent increase from the same period in the previous year. Production
for the week ending September 11, 2010 is up 2.1 percent from the previous
week ending September 4, 2010 when production was 1,708,000 tons and the
rate of capability utilization was 70.6 percent.
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China's `Solid' Demand May Weaken Case
for Holding Back Yuan // Yuan Gains to Highest Since 1993 After Manufacturing,
Inflation Accelerate // China Stocks Rise Most in a Week on Signs of
Strengthening Domestic Demand // Taiwan to Increase Minimum Wage First Time
Since 2007 to Narrow Income Gap // China Swap Rates Rise to 1-Month High
as Economic Slowdown Concerns Ease // Asian Stocks, Oil Rise as China Output
Boosts Economic Optimism; Yen Falls // EU Lifts Europe Growth Forecast, Sees
Moderate Second Half // Recovery May Not Create Job Growth, IMF's Strauss-Kahn
Says // Bank Stocks Climb as Basel Gives Firms Eight Years to Comply // European
Stocks, U.S. Futures Rise; Banks, Mining Shares Gain // U.S. Accelerates
in 2011 as Demise of Consumer Is Exaggerated // Hurricane Igor Becomes Atlantic
Season's Most Powerful Storm // Boehner Says He Won't Vote Against U.S.
Middle-Class Tax Cuts // Crude Futures Form `Golden Cross' of Moving Averages:
Technical Analysis
The Euro is now trading nearly 1-1/2% higher against the US Dollar. NYMEX
crude oil is nearly 9/10 of 1% higher and trading at $77.11/barrel. Gold
is trading flat, while silver is over 1.3% higher. Base metals ended the
session higher, with good reports from China driving traders to take on more
risk. Indicator charts show nickel leapt early, then calmed thru the afternoon.
Dow Jones reports three month nickel ended the day at
$10.36/lb. Stockpiles of nickel
stored in LME approved warehouses fell over the weekend, after a surprise
increase on Friday. Totals not sit just over the 118,800 tonne level. Sucden's
day old chart shows nickel trading thru last week
(chart here). The Baltic Dry Index slipped 19 points.
Base metals got a bounce from a sharply rising Euro and news that China’s
industrial production rose 13.9 percent in August from a year earlier. With
China making efforts to shut down heavy energy users like pig nickel producers,
traders are speculating that China will need to import a lot more refined
nickel.
(Reuters) Another plus for base metals was news that UK-based ETF Securities
has established an account with LME's word, the LME's electronic transfer
system for stock warrants. This has reignited talk over the potential launch
of physically-backed base metal ETFs. Traders said talk over a nickel-backed
ETF was supported by the backwardation or premium for material to be delivered
in october compared with material to be delivered in November, given that
demand from stainless steel mills is lacklustre.
(ASFR) Some 600 workers are being recruited by First Quantum, which has reopened
the Ravensthorpe nickel mine from which BHP Billiton withdrew in January
2009.
Number of the Week: Hiding Europe’s Unpleasant Details -
more
Think Small Business Is Job Engine? Think Again -
more
Bullard: Fed Ready for Further Action if Necessary -
more
Why the Eurozone Bomb Has Not Been Disarmed Yet -
more
Material management
– why it’s hard to be in stainless - Flagging? As the stainless
community gathered in Rome, raw materials topped the agenda. The formula
for stainless steel prices is simple: just look at raw materials. -
more
Stainless Steel
Demand to Witness Astounding Growth in India - The construction and
transportation industries in India will trigger stainless steel demand to
grow at a CAGR of around 8.1% during FY 2011–FY 2013, says RNCOS. -
more
The European Crisis
in 3 minutes
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.27/lb
higher, with other
London traded base metals also trading higher. The Euro is trading over 1%
higher against the US Dollar. NYMEX crude oil is up 2/3 of 1% and trading
at $76.95/barrel. Gold is down 2/10 of 1% and silver is up 1/4 of 1%. In
overnight trading, Asian markets ended higher, with China up over 1%. European
markets are trading higher this morning and US futures show Wall Street
should open bullishly. Inventories of nickel fell overnight. Dow Jones reports
LME nickel ended last week at $10.21/lb.
U.S. Exports of Stainless Steel Mill Products -
more
US Imports of Stainless Steel Mill Products -
more
Commodity/Economic Comments
Edward Meir of MF Global Morning Comments - After having had rather uneventful
sessions over the past few days, metals have opened the week sharply higher.
This is likely due to the constructive macro readings out of China over the
weekend, suggesting that the economy remains strong enough to generate a
continued demand-side pull on commodities. In this regard, the authorities
reported that August industrial production was up 13.9% from a year earlier,
and was also up from July levels. Other reports show banks extending about
$80.5 billion in new loans in August, up from July, while money supply also
increased -- up by 19.2% from a year earlier. Urban fixed-asset investment,
a good indicator of capital spending, beat expectations as well, up 24.8%
from a year earlier for the January-August period. Somewhat of a negative,
was the inflation picture; August consumer prices rose 3.5% from a year earlier,
and in fact, inflation is now higher than what the Chinese banks are paying
on deposits, meaning that real savings are stagnating. At some point, the
authorities will have to address this mismatch, but so far, they have been
reluctant to move on the rate front. Another source of support for the metals
this morning is coming from the currency side, where the dollar is down by
a full Euro on reports of a tentative global banking agreement that would
raise capital requirements across G-20 banks, but which markets perceive
will benefit the European banks the most. ... China also reported its
latest local production output levels for August summarized in our attachment.
We note that refined copper production inched down 0.3% in August, a second
straight fall from the June peak, but for the first eight months of the year,
output was up 17.5% from a year earlier. Aluminum output was also down month
over month, but is running at about 37% higher on a year-over-year basis.
... Nickel is at $23,000, up $500; two consecutive closes above $23,000
resistance could lead to a decent breakout on the charts. (read
Ed Meir's complete morning base metals report
here)
(Yieh) The stainless steel mills in Taiwan are expected to adjust up their
list prices by NT$3,000~4,000/ton for the second half of September.
(MF) According to a market analyst organization, shortage of nickel supply
will rise to 85,000 tons this year, but the nickel supply and demand will
return to balance after new productions start operation within 5 years. This
year, the nickel production was estimated to reach 1.4 million tons, according
to Mr. Jim Lennon, the analyst in Macquarie Securities. He also predicted
that nickel price would keep high at above US$20,000 through 2010 but
subsequently slide to US$15,000~20,000/ton in next 5 years after new nickel
productions start to put into operation.
(JMB) Orders for stainless steel plates/sheets/ In July, declined by 27%
to 142,300 tons/ Ni steel sheet exports decline steeply
(SC) Stainless steel production appears to have stabilised and this has helped
push nickel inventories lower, while Deutsche notes the marginal cost of
production at present is around 33% below spot prices. Near-term the broker
expects a deficit in the nickel market but the longer-term view remains one
of a surplus, meaning nickel's fundamentals are not as positive as for copper.
As with nickel, zinc's current fundamentals are supporting the price as stocks
are declining and smelting margins are coming under pressure in Deutsche's
view.
(AMM) Nickel premiums in the United States are holding steady even after
the emergence of a backwardation on the nearby spread on the London Metal
Exchange, market participants told AMM.
(MF) According to the Japanese Iron and Steel Institute, Japan's stainless
steel exports in July was 109,860 tons, down by 7.7 percent compared with
that of last month, but sliding by 0.5 percent year-on-year.
Output Of
Nickel-Contained Pig Iron In China For July 2010 Decreased = Produced 13,400
Tons On Ni Content Base As Decreased By About 10% From That In June - According
to an information from China, the quantity of nickel-contained pig iron
(including low grade ferro-nickel) produced in China in July of 2010 came
down to 328,000 tons on material base, corresponding to 13,450 tons on Ni
content base, which decreased by 9.6% on material base and by 21% on Ni content
base in comparison with those in the previous month of June. -
more
China Aug iron ore
output 2nd biggest, steel steady - China's iron ore output rose 2 percent
in August to the second highest on record and steel production stagnated,
but this might not be enough to stop iron ore imports recovering in coming
months. -
more
Miner hikes
nickel resource estimate for Surigao project - Canadian miner Mindoro Resources
Ltd. has increased the mineral resource estimate for its Agata nickel project
in Surigao del Norte. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Thursday, September 9
We are
on the road tomorrow and Friday so we are unable to advise when, or even
if, we will be able to update the site Thursday or Friday. We apologize for
the inconvenience and will make every effort to update if time and conditions
permit.
Commodity/Economic Articles and Comments
(Dow Jones) U.S. nickel imports rose 25.2% in July from last month, and was
up 194.4% from the previous year, the Commerce Department reported Thursday.
(Dow Jones) U.S. nickel exports rose 6.1% in July from the previous month,
and was up 160.7% from the previous year, the Commerce Department reported
Thursday.
BDI gained 13 points to 2,988
Nickel stored in LME approved warehouses lipped overnight and now stand just
under 119,000 tonnes.
Dow Jones reports three month nickel ended the day at $10.31/lb after a late
day rally was unable to cover early session declines.
MF Global is not publishing a daily update until Monday Sept 13
LME Morning - Metals bounce off earlier lows as equities turn positive -
more
(TTN) The Freight Transportation Services Index (TSI) rose 0.4 percent in
July from its June level, rising for the second consecutive month, the U.S.
Department of Transportation’s Bureau of Transportation Statistics (BTS)
reported today.
We are
on the road tomorrow and Friday so we are unable to advise when, or even
if, we will be able to update the site Thursday or Friday. We apologize for
the inconvenience and will make every effort to update if time and conditions
permit.
Headlines & leaders - (Bloomberg) China `Tightening' Speculation Follows
Property Surge // Mexico Beats China as Cessna Shows Low Wages Converge With
Easier Shipping // Maersk Line Says Box Shippers May Cut Capacity as Demand
Growth Declines // China's Stocks Decline on Property Tightening, Bank
Profitability Concerns // Japan Machine Orders Gain, Backing BOJ Pause on
Adding Stimulus // China Supplants U.S. at Top of Ernst & Young Ranking
for Renewable Energy // Malaysia Challenging U.K. as Finance Hub for Shariah
Law: Islamic Finance // German Industrial Production Rises Less Than Forecast
// Most European Stocks Fall, Led by Banks; Ericsson Shares Rally // Homebuilders
Revive Stalled U.S. Projects as Banks Unload Lots // Record-Low Rates Should
Prompt Debt Sales to Pay for Buybacks, Tilson Says // Job Openings in U.S.
Rose in July by 178,000 to 3.04 Million // U.S. Stocks Rise as Concern Eases
Over Europe Debt Crisis; JPMorgan Gains
The Euro is trading over 1/2 of 1% higher against the US Dollar. Nymex crude
is higher by 1-1/2% and trading at $75.21/barrel. Gold is up slightly and
silver is up 2/3 of 1%. Base metals ended mostly higher, with only aluminum
lagging. Indicator charts show nickel spent the day on the incline and except
for a couple of pauses during the session, it never looked back. Dow Jones
reports three month nickel ended the day at $10.39/lb
, it's highest
close since May 10th. Stockpiles of nickel stored in LME approved warehouse
slumped for a 4th consecutive day and now sit just under the 119,300 tonne
level. While the lowest for the month, this total remains higher than anytime
in August or since July 15th. Sucden's day old charts shows nickel's most
recent bull run
(chart here) thru yesterday's trading. September trading
is starting to look like August's, when traders took nickel to $10.34/lb
on the 9th, when it began to slide. This slide ended on August 25th, and
we have been on the upswing ever since.
(MB) Stainless steel end users expressed their concerns about the current
volatility in nickel prices to delegates at the MB stainless and special
steel conference in Rome. They also told delegates that stainless steel
substitution is a serious possibility.
(MFG) Chinese steel production remained high in August, but could slow down
in the months ahead after several provinces ordered steel mills to limit
production. China produced 1.7 million tons of crude steel in August, higher
than an average 1.66 million tons produced in July.
Summer Rerun: Why the Happy Talk About the Credit Crisis? -
more
Wall Street Firms to Cut 80,000 Jobs in 18 Months, Whitney Says -
more
Outokumpu sees
Q3 Europe stainless steel demand down - Stainless steel demand in Europe
is expected to fall 10-20 percent in the third quarter from the previous
quarter and pick up later this year, the chief executive of Finland's Outokumpu
said on Tuesday. -
more
What's mine(d)
is mine... - As a result of a “Beneficiation Policy” existing pre-1994,
South Africa moved from being a primary Chrome Ore exporter in the 70’s
to the world’s biggest Ferrochrome producer in the 80’s with output
of ferrochrome reaching a peak in 2004, never realising the full revenue
potential of the resource boon that ended towards middle 2008. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $.14/lb
higher, with other
London traded base mixed and mostly higher. The Euro is trading nearly 2/10
of 1% higher against the US Dollar. NYMEX crude oil is lower by 1/4 of 1%
and trading at $73.91/barrel. Gold is nearly 1/10 of 1% higher and silver
is up nearly 2/10 of 1%. In overnight trading, Asian markets ended lower,
with China off slightly. European markets are trading higher this morning,
while US futures show Wall Street may open higher. Nickel inventories fell
overnight.
Edward Meir of MF Global Morning Comments - Metal prices fell yesterday,
as there was a general retreat across most markets in light of renewed suspicions
about the integrity of the European stress tests and questions about an adequate
capital cushion for the German banks. The concerns led to the dollar pushing
higher against the Euro, another source of downward pressure for commodities.
Moreover, many metals were approaching the top end of their trading ranges
already, and so the stage was set for a pullback of sorts to set in. In terms
of today’s trading, we are seeing metals moving into positive territory
after erasing earlier declines. Oil markets are also slightly higher, and
US equity markets are called to open up as well after a disappointing session
yesterday. The dollar is slightly weaker, but European worries have not
dissipated; Irish bond spreads hit fresh peaks today as the country extended
its guarantees for short-term bank liabilities. .... Nickel is at $22,400,
up $205, but nearing resistance at $23,000. (read Ed Meir's complete
morning base metals report
here)
(Interfax) General Manager of Chinese nickel producer Jinchuan Group Ltd.,
Wang Haizhou, said on Sept. 6 that the company is actively seeking overseas
mineral resource acquisitions in order to increase its nickel and copper
output, state media reported the next day
(CD) "Jinchuan is looking for overseas nickel resources in Indonesia,
Philippines, Vietnam, South Africa, Canada, Cuba and Australia and also investing
in copper projects in Chile, Peru, Kazakhstan, Congo and the Philippines,
to secure raw materials and cash in on the growing demand," he said.
(AP) Chinese nickel producer Jinchuan Group Ltd plans to expand its nickel
and copper output through overseas acquisitions, Wang Haizhou, president
of Jinchuan Group, told China Daily on Tuesday. The company will increase
its nickel output from 130,000 tons last year to 200,000 tons by 2015 and
boost its copper production by 45 per cent to 600,000 tons in two years.
(SSC) On 28 August Chengwei Stainless Steel Inc. signed an agreement with
Wuxi Industrial Park in Luxi County, Hunan Province regarding the construction
of a new 350,000tn annual capacity stainless steel mill.
(MB) MB Stainless Steel Conf:Outokumpu unhappy with nickel volatility will
introduce more ferritic stainless steel grades- Rantanen
Jinchuan hits
acquisition trail - Nickel producer Jinchuan Group Ltd plans to expand its
nickel and copper output through overseas acquisitions, Wang Haizhou, president
of Jinchuan Group, told China Daily on Tuesday. -
more
Italy 2010 stainless
steel demand seen up 20 pct - Stainless steel demand in Italy, Europe's
second-biggest market after Germany by consumption, is expected to rise about
20 percent this year, recovering after a drop in 2009, a leading product
distributor said on Tuesday. -
more
Courtesy AISI - In
the week ending September 4, 2010, domestic raw steel production was 1,708,000
net tons while the capability utilization rate was 70.6 percent. Production
was 1,441,000 tons in the week ending September 4, 2009, while the capability
utilization then was 60.2 percent. The current week production represents
a 18.5 percent increase from the same period in the previous year. Production
for the week ending September 4, 2010 is up 0.6 percent from the previous
week ending August 28, 2010 when production was 1,698,000 tons and the rate
of capability utilization was 70.2 percent.
Rusal Launches
'Save Norilsk Nickel' Website to Promote its Action Plan to Enhance Value
for all Shareholders -
more(and
the website)
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) U.S. Outlook Prompts Warnings by Japan,
Australia Central Banks // China Industrial Output Slowdown Will Deepen in
Second Half, Ministry Says // Buffett-Backed BYD Falls After August Vehicle
Sales Decline // China Stocks Rise to 4-Month High as Material Producers
Rally; Banks Drop // Asian Stocks Fall for First Time in Five Days; Japanese
Automakers Decline // German Factory Orders Unexpectedly Declined in July
on Exports // Europe's Banks Stressed By Sovereign Debts Regulators Ducked
// French Unions to Strike as Sarkozy Pension Bill Debate Starts // European
Stocks Fall as Banks, Basic-Resources Shares Decline // Unemployment in U.S.
May Rise Toward 10% on `Feeble' Growth // Wall Street Needs `Off-the-Charts'
September to Rescue Quarter // Gold's Most-Accurate Forecaster Hitzfeld Raises
2011's Estimate to $1,400 // Burry, Predictor of Mortgage Collapse, Bets
on Farmland, Gold // U.S. Stocks Decline on Concern European Debt Crisis
May Worsen
The Euro is now trading 1.15% lower against the US Dollar. NYMEX crude is
down 1.14% and trading at $73.75/barrel. Gold is up over 8/10 of 1% and flirting
with a new record high, while silver is up just over 1/10 of 1%. Base metals
ended the session mixed and mostly lower, as most metals were unable to beat
the higher valued Dollar. Indicator charts show nickel was in trouble early
on, but as US markets opened, it began a climb that only lost steam late
in the session. For the day, Dow Jones reports three month nickel ended the
day at $10.07/lb. Stockpiles of nickel
stored in LME approved warehouses lipped overnight and now total just under
119,500 tonnes. Sucden did not update their day old nickel chart today. Nickel
traders are apparently betting that the news that pig nickel producers being
shut down in China will more than offset the news that steel producers in
China are also being shut down, due to power restraints. The former news
will tend to lead one to believe China will be forced to import more refined
nickel. The latter would much of the former, but traders apparently are betting
not very much. The China stainless steel price index we follow is at 107.10
today, compared to 105.73 last Tuesday. Deciding whether that is demand driven
or a reaction to higher nickel, is not immediately clear.
Acerinox sees stainless
steel demand recovery in Q4 - Currently sluggish global demand for stainless
steel is expected to recover in the last quarter of 2010, the chief executive
of Acerinox, the world's largest stainless steel maker, said on Tuesday.
-
more
Nickel contango
at LME declines - In the month of August, nickel prices on LME fell by 2.13%
to $20700/Mt but gained by 1.68% to Rs.970/Kg on MCX, owing to weaker rupee.
-
more
Demand for
Steel Supports South Africa's Ferrochrome and Manganese Mining Industry -
The ferrochrome and manganese mining industry is primarily driven by the
global demand for steel, which is the largest end-user sector for the alloy.
-
more
Tata Steel
in Talks to Sell South African Unit KZN, Managing Director Says - Tata Steel
Ltd. is looking for a buyer for its South African unit after agreeing to
sell its Teesside operations in the U.K., as India’s largest steelmaker
seeks to reduce debt. -
more
Allegheny Ludlum shuts
down Natrona melt shop - Allegheny Ludlum's 8-7 Department -- better known
as the Natrona melt shop -- now exists only in the company's history. -
more
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $.21/lb
lower, with all London
traded base metals lower this morning. The Euro is trading nearly 1% lower
against the US Dollar, adding pressure to commodity trading. NYMEX crude
oil is down nearly 1.9% and trading at $73.21/barrel. Gold is trading over
1/10 of 1% higher while silver is down over 3/4 of 1%. In overnight trading,
Asian markets ended slightly higher, with China up nearly 3/10 of 1%. European
markets are trading lower this morning as renewed banking worries drive the
Euro lower. US markets, closed yesterday, may have missed out on yesterday's
gains, and presently show in futures trading that they will open lower. Nickel
inventories fell overnight.
Edward Meir of MF Global Morning Comments - Metals finished with slight gains
on Monday following a modestly positive close on Friday when the US nonfarm
payroll report came out showing August private payrolls climbing by 67,000.
The July gain was revised to +107,000, also more than initially estimated.
Although the bullish impact of these releases were blunted by the
worse-than-expected ISM-services reading, which dipped to 51.5 in August
and is now getting uncomfortably close to the contraction point below 50,
most markets still managed to hang on to decent gains. US stocks, in particular,
had a particularly impressive finish on Friday. Last week’s euphoria
seems to be fading today, as we are sharply lower against the board, mainly
as a result of the stronger dollar, now at $1.2760 against the Euro. The
greenback is soaring on account of reports casting some doubt about the viability
of the European stress tests and required capital cushions. In this regard,
the Wall Street Journal reported that the recently conducted tests understated
some bank holdings of potentially risky government debt, as some institutions
did not provide a comprehensive picture of their holdings. Some banks excluded
certain government bonds, while others reduced the sums held to account for
short positions —-facts that neither regulators nor the banks disclosed
when the test results were published in late July. "Because of the limited
nature of most banks' disclosures, it is impossible to gauge the number of
banks that excluded portions of their sovereign portfolios from their
disclosures, or the overall effect of that practice", the article says. Also
causing some nervousness, is a report by Germany's banking association that
the country's 10 biggest banks may need 105 billion Euros of additional capital
under revamped “Basel II” rules. Although both these news items
came out yesterday, they seem to be doing the most damage today, pulling
equity markets in Asia and Europe lower, and delivering the sharp losses
we are seeing in both metals and energy. US equity markets are expected to
open lower as well after four days of gains. .... Nickel is
at $21680, down $470, and had a good run higher last week, taking out the
short-term down channel that was in place, (red line), but we seem to be
coming back for another test. (read Ed Meir's complete morning
base metals report
here)
(Yieh) China’s Taiyuan Iron & Steel (Tisco) has announced new price
for the 37th week (September 7 – September 13). The ex-work price of
304 hot rolled and cold rolled stainless steel coils was up by RMB400/ton.
(SBB) China stainless prices stable, market cautious - European stainless
sheet prices roll over, volumes firming
(AP) China's top nickel producer the Jinchuan Group has raised the price
of refined nickel by 2,000 yuan (US$294.69) metric ton (tonne) to 169,000
yuan/tonne starting from Monday, according to information from its website.
The company lowered the refined nickel price by 4,000 yuan tonne to 167,000
yuan/tonne on August 23, the first price cut since early June.
(Interfax) China's central government on Sept. 6 released guidelines on mergers
and acquisitions (M&A) within several industries, including the steel,
aluminum and rare earth industries.
Potential for Double-Dip Recession Seems Small -
more
China orders steel
output cut, steelmakers surge - Asian steelmaker shares soared as China
intensified a curb on mill output, though analysts warn more work is needed
to trim oversupply in the world's top producer. -
more
Posco / South
Korea Moves To Produce Stainless Steel At Full Capacity From September =
Commenced To Increase Purchases Of Stainless Steel Scrap - Posco of South
Korea has moved to produce crude stainless steel at full capacity from September.
- more
Market Tendency
On Imports Of Ferro-Alloys At 31st August 2010 = Indian Silico-Manganese
Has Taken Offensive To Reduce Its Price - The market tendency by item on
imports of ferro-alloys into Japan at the 31st August of 2010 is as follows
-
more
Australia's
Government Committed to Mining Tax, Swan Says - Julia Gillard’s government
is “determined” to press ahead with its election promise to introduce
a mine profit tax in Australia, Treasurer Wayne Swan said after the Labor
party won support to form government. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Monday, September 6
Dow Jones reports three month nickel
ended the day at $10.02/lb
World Steel Consumption
Forecast to be over 1470 million tonnes in 2014 - Global consumption of finished
steel in 2010 is expected to be approaching 1260 million tonnes. -
more
North China steelmakers
told to close for a month - Eighteen steel mills in Wuan district of Hebei
province in north China have been ordered to shut down operations for up
to one month, the China Securities Journal reported on Monday. -
more
Edward Meir of MF Global Morning Comments
- Metals finished with slight gains on Friday, but closed off their best
levels of the day. Initial bullish enthusiasm was generated by the nonfarm
payroll report showing private payrolls climbing by 67,000 in August, while
the July gain was revised to +107,000, also more than initially estimated.
Overall employment fell 54,000 for a second month, (much less than the 120,000
decline expected), but the unemployment rate ticked higher to 9.6%, as more
people entered the labor force. However, this bullish release lost some of
its steam after the ISM-services reading came out showing the index slipping
to 51.5 in August from 54.3 in July, and getting uncomfortably close to the
contraction point below 50. We are slightly higher today in metals in very
quiet trading. A solid close in Shanghai has led to the firmer tone we are
seeing, as are gains seen in Asian and European stock markets. The dollar
is holding steady at $1.29 against the Euro, although energy prices are down
by about $.30.
The Baltic
Dry Index - +5 to 2,881
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:10 am CST show 3 month nickel trading around $.18/lb
higher, with other
base metals all trading higher. The Euro is trading over 1/10 of 1% lower
against the US Dollar, which is typically negative for base metals trading,
but not during a bull run. NYMEX crude oil is lower by nearly 1/2 of 1% and
trading at $74.26/barrel. Gold is up 4/10 of 1% and silver is down slightly.
In overnight trading, Asian markets ended higher, with China up nearly 1.9%.
European markets are higher this morning, while Wall Street is closed for
Labor Day. Nickel inventories fell over the weekend, and now sit just under
the 118,900 tonne level. Sucden's day old chart shows nickel trading thru
Friday and the big up and down day on Friday
(chart here). The afternoon collapse in Friday's earlier
gains did help push the RSI and SStoch out of overbought territory and
technically speaking, the bulls have room to run again. It is a holiday here
in the States so we will give periodic updates thru the morning.
(Yieh) Regardless of low inventory, Taiwan’s stainless steel market
remained depressed this week amid unstable nickel price and weak demands
from end users. Currently, buyers only purchased small quantities for urgent
usage, so stockiest don’t want to take risk to buy large quantities
for replenishment.
(DJ) China Jinchuan Ups Refined Nickel Prices By 1.2% To CNY169,000/Ton
European nickel
business returns, but premiums hold steady - Physical nickel premiums in
Europe held steady in the first week of September despite an increase in
demand for the alloy metal as most participants returned to the market. -
more
New Caledonia’s
Koniambo nickel project moves into new phase - The first four Chinese-built
modules have been shipped to New Caledonia’s north as plans for the
new multi-billion dollar Koniambo nickel smelter project appear to be on
track. -
more
Mining promotion
to focus - In the midst of controversies over the ban on open pit mining,
the Board of Investments (BOI) is revising the list of mining projects that
it will sell to investors, focusing only on those which do not face problems,
especially community opposition. -
more
Friday evening
- Dow Jones reports three month nickel ended the day and week at
$9.79/lb
, down
$.01 from Thursday after the knee jerk reaction to the US payroll report
fails to hold.
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Friday, September 3
Next
update Monday morning - have a safe and restful weekend!
Nickel trading
over the $10/lb mark on 'not as bad as expected' US employment data. Baltic
Dry Index up 41 points to 2,876.
(US) Nonfarm payroll
employment changed little (-54,000) in August, and the unemployment rate
was about unchanged at 9.6 percent, the U.S. Bureau of Labor Statistics reported
today. Government employment fell, as 114,000 temporary workers hired for
the decennial census completed their work. Private-sector payroll employment
continued to trend up modestly (+67,000). The number of unemployed persons
(14.9 million) and the unemployment rate (9.6 percent) were little changed
in August. From May through August, the jobless rate remained in the range
of 9.5 to 9.7 percent. Among the major worker groups, the unemployment rate
for adult men (9.8 per-cent), adult women (8.0 percent), teenagers (26.3
percent), whites (8.7 per-cent), blacks (16.3 percent), and Hispanics (12.0
percent) showed little change in August. The jobless rate for Asians was
7.2 percent, not season-ally adjusted. The number of long-term unemployed
(those jobless for 27 weeks and over) declined by 323,000 over the month
to 6.2 million. In August, 42.0 percent of unemployed persons had been jobless
for 27 weeks or more. -
more(Euro and nickel spike higher on the news)
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:20 am CST show 3 month nickel trading around $.11/lb
higher, with other
London traded base metals mixes and quiet, as the world nervously awaits
August payroll numbers from the US. The Euro is trading over 1/10 of 1% higher
against the US Dollar. NYMEX crude oil is lower by 3/4 of 1% and trading
at $74.46/barrel. Gold is slightly lower, while silver is also slightly lower.
In overnight trading, Asian markets ended the session higher, while China
fell slightly. European markets are higher this morning, and US futures are
quiet ahead of the payroll report. Nickel inventories fell overnight and
now sit just over the 120,350 tonne level. Sucden's day old chart shows nickel's
bull run this week
(chart here). We will be on the road this afternoon, so
will be unable to offer an afternoon update. We will add a note in a few
minutes on the payroll report and its apparent effect on metals trading,
and update the BDI number. At the moment, nickel is off earlier high's and
its trend over the last few hours has been stalled to just slightly lower.
Edward Meir of MF Global Morning Comments - Metals prices finished higher
yesterday, rising on the back of a weaker dollar and retaining a more sure-footed
tone after a string of data out this week dispelled doubts that the US economy
might be tipping back into a recession. In addition to the better-than expected
ISM readings out Wednesday, yesterday’s reports did surprise as much,
but nevertheless came in on the respectable side. In this regard, although
July factory orders came in less than forecast, rising by only .1%, this
was still the first increase since April. In addition, sales of existing
houses unexpectedly climbed by 5.2% in July from a record low, and came in
well ahead of estimates. Lastly, the number of first-time filers for unemployment
insurance fell for a second straight week last week to 472,000, down 6,000
on the period, and coming in a little less than forecast. Claims have been
stuck in the mid- to upper-400,000 range for about nine months now, spiking
above 500,000 for the first time since November recently, but have since
been falling back. Metals are modestly higher right now, but conditions
are very quiet, as markets brace for today’s key nonfarm payroll report
out in the next half an hour. About 42,000 jobs were expected to have been
created in the private sector this past month, while the overall reading
(including government jobs) is expected to show a loss of 120,000. ISM services
readings also come out later in the day (expected at 53.2). .... We remain
cautious about the short-term outlook in metals, since many complexes are
at the top end of their trading ranges, and could get knocked back in the
event that the nonfarm payroll number disappoints. However, it is likely
we will have to wait until next week before a clearer picture emerges. ......
We are at $21,900 on nickel, up $250, with prices working methodically higher,
but there are chart resistance points close by that could make further advances
somewhat more difficult. (read Ed Meir's complete morning base metals
report
here)
(TAA) JSW Steel and Ispat Industries have raised prices this month citing
firm global rates and rising input costs.
(MNP) Two of the five plaintiffs involved in an injunction to stop the
construction and operation of a deepsea tailings placement system at the
$US1.4 billion ($A1.5 billion) Ramu nickel development in Papua New Guinea,
have pulled out of the court action.
(Interfax) Iron ore stockpiles at China's 22 major ports fell 1.04 percent
from Aug. 27 to 71.05 million tons on Sep. 3, including 15.59 million tons
of Indian iron ore stockpiles that fell 1.52 percent, according to Shanghai-based
Mysteel Information's Sep. 3 figures
(MF) According to newest sources, Linyi Sanhui Fuel Co., Ltd, located in
Shandong province, is a renowned ferronickel producer, specializing in 6-8%
ferronickel. Its daily output is 60-70 tons and monthly output is 2,000 tons
around. It current production has been already ordered and inventory is very
limited. When nickel alloys market is on uptrend, its capacity could be 6,000
tons around. As Linyi government implements backward capacity elimination
policy, local pig iron nickel producers would be badly affected. In early
Sept, Sanhui Fuel would turn one furnace to produce pig iron nickel to relieve
tight supply.
(Macquarie Research) Chinese production and net trade in commodities for
July suggest that while China's influence on global demand has clearly diminished
compared with last year, net trade and production have remained at steady
levels over the past few months. With destocking in the first half of this
year appearing to have come to an end, the fall in Chinese apparent demand
is likely to have stabilised and should be rising in Q4.
(JMB) NSSC Increases Ni Stainless Sheet, Plate by 10,000 yen
(SBB)
(Dow Jones) The Russian Economy Ministry will insist on a formula to calculate
nickel export duty which would effectively remove extra profit margin earned
by exporters, especially when prices go above $15,000-$17,000 per metric
ton, Deputy Economy Minister Alexey Likhachev said at a briefing in Moscow
Thursday, as quoted by the ministry's press service.
NGO researcher says
PNG Mining Minister trying to intimidate - A researcher with the newly-formed
State Crime Initiative says Papua New Guinea’s Mining Minister has made
a poorly veiled effort to intimidate NGOs battling the Ramu nickel mine’s
deep sea tailings disposal system. -
more
Ruukki studies
250 MW plant to supply Mogale Alloys - Finnish company Ruukki plans to start
a feasibility study for a proposed 250-MW power plant to provide its Mogale
Alloys venture in South Africa with reliable electricity supply, by the fourth
quarter of this year. -
more
Solidarity
accepts wage offer - Trade union Solidarity on Thursday accepted a
5.5 percent wage increase offer from the Columbus Stainless Steel plant in
Middelburg, Mpumalanga, the company said. -
more
Deripaska on US
mission - Oleg Deripaska, chief executive of Rusal, the Russian aluminum
monopoly, is preparing a series of presentations to institutional investors
next week in Boston and New York, chaperoned by one of his largest creditor
banks, BNP Paribas. -
more
How Stainless
Steel Is Made
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China Doesn't Face Inflation Risk This
Year, Former PBOC Advisor Fan Says // Yuan Rises Most in Two Weeks on Reference
Rate Reflecting Dollar Declines // China's Property Market in `Very Big Bubble,'
StarRock's Jiang Hui Say // Asian Stocks Rise to Two-Week High on U.S.
Manufacturing; Ping An Climbs // ECB Keeps Key Interest Rate at 1%, May Maintain
Crisis Mode Into Next Year // U.K. House Prices Decline Most in Six Months,
Nationwide Says // European Exports, Investments Spur Economy's Recovery
// EU May Limit Naked Shorts of Stocks, Government Debt // European Stocks
Decline; Pernod Ricard, Yara International Fall // Hurricane Earl Strengthens,
Bears Down on North Carolina Coast // Economy Avoids Recession Relapse as
Data Can't Get Much Worse // Pending Sales of Existing Homes Unexpectedly
Increase in July // Bernanke Says Federal Reserve, Regulators Could Have
Tackled Risks Better // Most Stocks Gain, Treasuries, Dollar Drop
The Euro continues to trade 1/10 of 1% higher against the US Dollar. NYMEX
crude oil is up over 4/10 of 1% and trading at $74.23/barrel. Gold is up
over 1/2 of 1% and silver is higher by more than 1.1%. Base metals ended
the second trading day of September higher, on speculation the economy is
doing better than many reports show. Indicator charts show nickel opened
higher and spent the session in a gradual climb. Dow Jones reports three
month nickel ended the day at
$9.81/lb. Stockpiles of nickel stored
in LME approved warehouses rose again overnight, and now sit just over the
120,510 tonne level. Sucden's day old chart show nickel trading thru yesterday
(chart here). The SStoch reading showed nickel in overbought
territory this morning, while the RSI number showed traders still had technical
room to rise. Nickel got an additional boost from a Reuters report that China
is cracking down on heavy energy users and polluters, including pig nickel
producers. The Baltic Dry Index continues to climb, up another 94 points.
We posted a link to AK Steel's October surcharge's this morning, and have
added North American Stainless and Universal Stainless this afternoon. Allegheny
has yet to post.
North American October Stainless Steel surcharge -
here
Universal Stainless October Stainless Steel surcharge -
pdf here
Morning
Briefing(8:00 AM CST
is 1PM in London)
Indicators at 7:15 am CST show 3 month nickel trading around $.17/lb
higher, with other
London traded base metals also trading higher, albeit more reserved. The
Euro is trading nearly 1/10 of 1% higher against the US Dollar. NYMEX crude
oil is lower by nearly 9/10 of 1% and at $73.26/barrel. Gold is trading nearly
1/2 of 1% higher, while silver is up more than 7/10 of 1%. In overnight trading,
Asian markets ended higher, with China up 1.3%. European markets are slightly
lower at the moment, and US futures show Wall Street has yet to decide a
direction. Nickel inventories rose again overnight. According to the AK Steel
October 2010 stainless steel surcharge form, linked to below, the average
price of nickel rose from $8.853/lb in July to $9.7194/lb in August, molybdenum
from $14.075/lb to $15.44/lb, and chrome fell from $1.235/lb to $1.2058/lb.
Edward Meir of MF Global Morning Comments - Metal prices soared on Wednesday,
teeing off a strong ISM manufacturing figure out of the US that followed
the relatively strong Chinese purchasing managers’ release from earlier
in the day. The dual reports sparked the broader CRB index to its best
single-session gain (+1.6%) in more than a month, while the US stock market
staged its biggest one-day rally in eight weeks. Moreover, with participants
showing a willingness to hold riskier assets, the dollar had its worst daily
showing in a month, while US treasury yields pushed markedly higher. ....
As of this writing, we are higher once again in a number of metal complexes,
with the weaker dollar (now at $1.2830 against the Euro) the likely factor
behind today’s push. However, energy markets are off slightly after
a good run yesterday, while US equities are called to open flat, so metals
are somewhat on their own at this stage. Despite yesterday’s sharp move
and the current bounce higher, we remain cautious about the short-term outlook.
Technically, many metals have pushed near the top or outside of their trading
ranges, arguing for caution going forward. Moreover, the positive ISM number
that sparked yesterday’s move reminds us of the better-than-expected
industrial production figure released a few weeks ago that similarly triggered
a sizable rally in a number of markets only for the gains to fizzle out in
the weeks ahead on a lack of follow-through. Therefore, a lot will ride on
what happens with the US macro numbers rolled out over the balance of the
week, with Friday's key nonfarm payroll figures being especially critical.
Early indications are that the number could disappoint given that the private
sector ADP payroll report (out yesterday as well) came in on the negative
side, showing 10,000 jobs being lost versus the 13,000 gain expected. ....
In other news, trading volumes on the London Metal Exchange's steel
futures contract hit a record high in August for the sixth month in a row,
exceeding 1.6 million tons for the first time ever, the exchange said on
Wednesday. August was the first full month that the exchange merged its two
regional steel futures contracts. The August figures bring the total volume
generated on steel since the start of 2010 to just over 100,000 lots equivalent
to about 1.1% of the global billet market. ..... We are at $21,460 on nickel,
up $410, and fairly quiet within the trading range. (read Ed Meir's
complete morning base metals report
here)
(Reuters) Reuters reports that output of nickel pig iron is set to
drop in China as the government steps up efforts to cut energy consumption.
NPI plants consume quite a bit of energy as they use low-grade laterite ores.
Apparently, some 11-12 tons of laterite ores are smelted to produce one ton
of NPI with 12-14% nickel content.
(MB) Nickel pig iron (NPI) smelters in China's Shanxi province have been
ordered to close for at least a month to save energy and meet Beijing's emission
targets
Manufacturing figures ease fears of slowdown -
more
(MF) Shaanxi Head-Moly Industry Co., Ltd. has stopped production for more
than 10 days. We don’t know the concrete reason, but we think that it
is related to current weak market on moly.
(MB) NSSC raises 300-series price on higher nickel, stronger yen
(Yieh) Although the global economy is slack recovery, Taiwan's fastener export
volume still grew to about 655,000 tons in the first seven months of 2010,
sharply increasing by 64 percent from a year ago.
Euro Zone Expands One Percent in the Second Quarter
- more
Strategy Of
FeCr Price For 4th Quarter 2010 Has Already Moved = South African Producers
Intend To Rise The Price, Wall Is Cooled Down Market In Europe - Since major
producers in South Africa intend to rise price of charge chrome for shipments
in the fourth quarter (October - December) of 2010, they have already moved
to underpin spot price of high carbon ferro-chrome (charge chrome). -
more
Mining companies
discount as steel output falls - The price of steelmaking commodities iron
ore and coking coal will drop next quarter by 12 per cent and 7 per cent
respectively as reduced steel production prompts mining companies Vale, Rio
Tinto and BHP Billiton to offer discounts. -
more
AK Steel Announces
October 2010 Surcharges for Electrical and Stainless Steels - AK Steel has
advised its customers that a $350 per ton surcharge will be added to invoices
for electrical steel products shipped in October 2010. October 2010 surcharges
for the broad range of stainless steel products that AK Steel produces can
be found on the company's web site at www.aksteel.com. -
more (AK Steel October surcharge -
pdf here)
Mine opponents
have the right to protest - In the past few years, an area on state land
about 20 miles away from Marquette has caught the eye of a mining company
called Kennecott. The area is called Eagle Rock in the Yellow Dog Plains,
and is expected to yield 250 to 300 million pounds of nickel and about 200
million pounds of copper, as well as several other minerals. -
more
Putin opposes
Deripaska's Norilsk dividend plan - Russian Prime Minister Vladimir Putin
said shareholders of Norilsk Nickel had moved forward to resolve a dispute
and called for nickel and copper export duties to be linked to global prices.
-
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
Headlines & leaders - (Bloomberg) China Manufacturing Quickens From Weakest
Since 2009 // China Stocks Drop on Concern Over Property Tightening, Small-Cap
Valuation // China's Commerce Ministry Says U.S. Tariff to Upset International
Trade // Yuan Drops Third Day on Signs China Seeks Stability Versus Currency
Basket // Typhoon Kompasu Strengthens, Forecast to Hit Korean Peninsula //
China, Japan Lead Asia's August Car-Sales Surge on Incentives // Australia
Growth Quickens to Fastest Pace in Three Years // Asian Stocks Rise on China
Manufacturing, Australian GDP Data; BHP Climbs // Europe Manufacturing Growth
Slows as Germany, Italy Ease // German Retail Sales Unexpectedly Fall a Second
Month // European Stocks Gain on China Manufacturing // Fed Minutes Signal
Renewed Large-Scale Asset Purchases May Not Be Imminent // Hurricane Earl
Powers Toward U.S. as Emergency Agencies Prepare // New York Mortgage Agency
Borrowing Costs Fall 30% as Bonds Catch on `Fire' // GM Sales Fall 25% as
Unemployment Wards Off Consumers // Manufacturing Index for U.S. Increased
in August // ADP Estimates Companies in U.S. Unexpectedly Cut Jobs //
Construction Spending in U.S. Declined Twice as Much as Forecast in July
//
Stocks Rise, Treasuries Decline as Manufacturing Reports Boost Confidence
The Euro continues to trade nearly 1% higher against the US Dollar. NYMEX
crude is up 3% and trading at $74.08/barrel. Gold is lower by 1/10 of 1%
and silver is off 3/10 of 1%. Base metals started the month of September
in the winner's circle. Indicator charts show nickel jumped early on
China PMI data, got an extra boost from US PMI numbers, then calmed some
before closing. Dow Jones reports three month nickel ended the day at
$9.54/lb, not quite recovering
all of yesterday's loss. Stockpiles of nickel store in LME approved warehouses
took a big jump overnight, gaining over 1400 tonnes and totals now rest just
shy of the 120,100 tonne level. Inventories now sit about where they did
on July 13th of this year, and this level was last seen prior to that in
September of 2009. Sucden's day old chart shows nickel trading thru yesterday
(chart here). Although nickel jumped today, it appeared
to be a weaker gain than could be expected considering the positive PMI numbers
from both China and the US, and the stronger Euro. Maybe traders are just
a little gun shy to buy into some rare good news, to the inventory gain today
kept any knee jerk reaction in check. The Baltic Dry Index continues to gain,
adding 28 points today. US reports were a mixed bag, containing mostly bad
news, but the trump card was the unexpected improvement in the PMI reading.
We chart PMI numbers for 4 countries
(here). With that, and the early boost from a rising China
PMI number, most world markets went positive, and most remain so. In nickel
and stainless news, if it wasn't for the soap opera in Russia, which itself
took a break today, there wouldn't be much to talk about.
(MB) Nickel pig iron (NPI) smelters in China's Shanxi province have been
ordered to close for at least a month to save energy and meet Beijing's emission
targets
(Platou Markets) Drybulk market tracking Chinese domestic steel prices, weekly
decline continues. Domestic steel prices in China have declined for a second
consecutive week, signaling the market continue to be well supplied. Despite
some Chinese steel mills announcing price hikes of up to CNY 1000 per tonne
from September, price increases have started to normalize and momentum appear
to be stalling. Baosteel which has played a role of Chinese price trend setter
have not announced material price hikes and kept the benchmark HRC price
unchanged. Steel prices are still off from their yearly highs by 10-15% amid
challenges pertaining to Chinese policy matters of tighter curbs on the property
market, restricted exports and high inventories. Latest data from China
Federation of Logistics & Purchasing said this morning that Chinese steel
inventories currently are at 81 mt vs 90 mt at all time high earlier this
year. This equals an inventory turnover of 1.2 months compared to the 25
days said to be a normal level. It is therefore still a risk that the drybulk
market and the Capesize segment in particular may see slow iron ore demand
until steel inventories are drawn down further. Once inventories are drawn
down, we believe steel prices could see a stronger trend and as iron ore
and coking coal prices for Q4 seems to be lowered from Q3 (Vale rumoured
to cut prices iron ore prices 10-11% while BHP is rumoured to offer coking
coal at 4-5% lower prices to Japanese buyers), steel margins may improve
again later this year/ early in 2011 and trigger renewed momentum in steel
output.
Indicators at 7:15 am CST show 3 month nickel trading around $.12/lb
higher, with all London
traded base metals higher on a stronger Euro and positive China PMI data.
The Euro is trading nearly a full percent higher against the US Dollar this
morning. NYMEX crude is up nearly 1% and trading at $72.58/barrel. Gold is
up nearly 1/2 of 1% and silver is slightly higher. In overnight trading,
most Asian markets ended higher, while China fell 2/3 of 1%. European markets
are trading higher this morning, and US futures show Wall Street should pen
bullishly. Nickel inventories rose overnight. In weather, Korea braces for
the arrival of Kompasu
(here) while the US watches Earl
(here), and La Niña strengthens in the Pacific
- more.
Edward Meir of MF Global Morning Comments - Metals lost ground yesterday,
but finished off their worst levels of the day after a spate of US macro
reports came in somewhat on the positive side. The S&P/Case-Shiller
home-price index for June rose more than expected, as did August consumer
confidence readings, with both releases having an almost immediate impact
on US equities and metals. The August Chicago PMI was in line as well.
Considering the misses we had in a number of macro indicators in recent weeks,
Tuesday's batch of statistics has to be viewed as relatively reassuring.
However, the Fed minutes, which were also released yesterday, did raise concerns
about slowing growth, particularly for the second half of the year, keeping
the advances somewhat in check. Commodity markets look very different this
morning, with crude oil prices recouping about one third of yesterday’s
steep plunge, while metals are sharply higher across the board. Copper is
at four-month highs, and we are seeing good gains as well in both zinc and
lead. The dollar is weaker this morning, trading around $1.28 against the
euro, and making up modest ground against the yen. US equity markets are
also expected to open higher. The trigger behind this morning’s rally
is attributable to a decent macro report out of China showing the official
purchasing managers' index rising to 51.7 in August from 51.2 in July, with
the rise in the new order component seen as being especially supportive.
Also helping, is the fact that LME inventories continue to decline, with
copper’s break below the 400,000-ton mark earlier this week on the LME
being especially notable. Later today out of the US, we get the August ADP
employment report, (13,000 jobs expected to have been created), as well as
the August ISM report (expected at 53). ... Despite today’s
China-induced bounce, we think the tone in the metals market will still be
primarily influenced by this week’s US macro data, and given the very
choppy trends of late, we would not jump in on the long side just yet, preferring
to see how the balance of this week’s data plays out. ... We are at
$21,000 on nickel, up $300, and fairly quiet. (read Ed Meir's complete
morning base metals report
here)
(Yieh) According to TISCO’s semi-annual report on stainless steel product
in 2010, the output of stainless steel was about 1.4 million tons in the
first half of this year with net profit around RMB1.8 billion, which increased
by 8.7 percent from a year ago.
(Interfax) Shanghai Stock Exchange-listed Baoshan Iron and Steel Co. Ltd.
(Baosteel) has stated that the prices for iron ore and steel products are
set to fall in the fourth quarter of the year (Q4), according to an Aug.
31 company announcement.
(MF) Currently, ferrochrome price has been steady in Chinese market. ....
There are two main reasons contributing to stable ferrochrome prices. Firstly,
mills have already ended purchasing raw materials and no leading price could
stimulate ferrochrome market; secondly, overseas quotations are more or less
the same with domestic, which can’t give supportive effect on Chinese
market.
Ravensthorpe
nickel still on track - First Quantum's forced abandonment of its $US226
million ($A252.1 million) Frontier copper mine in the Democratic Republic
of Congo should not affect its planned reopening of the Ravensthorpe nickel
mine in Western Australia. -
more
Antofagasta / Chile
Completes Project To Expand Molybdenum Production = To Produce 20 Million
Lbs. Of Moly At Los Pelambres Mine In 2010 - Antofagasta of Chile had been
proceeding the project to expand the capacity at Los Pelambres Mine and,
consequently, completed this project on the end March of 2010 within budget
as scheduled. By this completion of the expansion, Los Pelambres Mine has
planned to produce copper : 400,000 tons and molybdenum : 9,200 tons on Mo
content base in the calender year of 2010. -
more
Mine boss
embarrassed by conviction - A mining industry chief trying to raise $600
million to build Australia's first stainless steel refinery has a criminal
conviction. -
more
Putin confident
over Norilsk's future - Russian Prime Minister Vladimir Putin said on Tuesday
the northern city of Norilsk will not face the recent fate of another
single-industry town, where residents blocked a major highway to draw attention
to difficulties caused by the closure of three plants. -
more
Morning Nickel
Inventory and Price Statistics & Figures
London Metal Exchange inventory figures/changes - (for today's
figures see MF Global report above)
Today's almost official prices
here / Yesterday's actual
LME official prices
here
or
here(chart)
Please let us know if any of these links stop working, stop carrying
info, or become available to subscriber's only. We encourage our readers
to use the services of those companies who supply reports and information
free of charge.Contact
us
All prices shown on this page are indications only. "A Guide To
LME
Trading"...pdf here "The ABCs of a Metals Exchange"
...pdf here(Molybdenum
prices are for molybdenum oxide, an ingredient and major price factor in
316 stainless) (all ton listings are metric tons = 2204.622 pounds ) Updated
daily before 8 am CST and before 1 pm CST weekdays -
DisclaimerCandlestick Pattern Dictionary
here / Intro to Candlesticks
here Original content and opinions copyright
www.estainlesssteel.com. Note - For real time and official
LME prices, LME requires a user subscribe to be an authorized LME vendor.
Daily
Nickel/Stainless Steel Wrap-up
(
. The price of three
month nickel ended the month of August at $9.39/lb. Stockpiles of nickel
stored in LME authorized warehouses took a breather after six straight gainer's
and slipped yesterday, now totaling just over 102,550 tonnes. For the month,
stockpiles grew by 3,894 tonnes over August's last reading. Cancelled warrants
for the month averaged somewhere in the mid 3% range. Rumors abounded during
the month about who was secretly buying up large stakes of the stockpiles,
and the market has been trading in backwardation for much of the month. Sucden's
day old chart shows nickel trading thru yesterday
(
Reports
Commodity/Economic Articles and Comments
SAfrica
ferrochrome production seen rising by 2015 - South Africa's production of
ferrochrome, a steel-making ingredient, is forecast to more than double to
4.6 million tonnes by 2015 compared with the output for 2009, a senior industry
official said on Wednesday. -
CISA suggests iron
ore prices and steel prices linked - The China Iron & Steel Industry
Association (CISA) suggested that iron ore prices should be linked to steel
prices instead of iron ore indexes. -
IMF says Australia
should tax more miners - The International Monetary Fund on Thursday called
for a broader tax on Australia's resources industry, saying it should take
in more producers. -
Effective with orders
entered on or after October 1, 2010, ATI Allegheny Ludlum is increasing base
prices by 5% to 10% for specialty stainless steels in sheet product forms
including: - 
Nickel developer
in PNG willing to wait before launching tailings construction - lawyer -
The operator of Papua New Guinea’s Ramu nickel project has assured
landowners it won’t construct its marine tailings pipeline until a new
legal application for a injunction on the project is heard. -
Price Of Low Carbon
FeCr To Import Into Japan For Shipments In Q4 / 10 Is Reduced = To Be Reduced
To 193 - 195 US-Cents Per Lb. / Cr CIF For Carbon 0.1% Material - The
negotiations with regular consumers (special steel companies) in Japan on
price of low carbon ferro-chrome for shipments in October - December quarter
of 2010 are being taken place from last week and are thought as of the end
of last week to be in the direction to reduce the price. -
Price Volatility
Has Started To Take Hold In Developing Markets - In the Russian Federation,
shipments to domestic customers have continued to exhibit signs of improvement.
-
Morning Nickel
Inventory and Price Statistics & Figures
Nickel mine mints
$13.3m - Albidon Limited has realized US$13.3 million from the sale of 14,257
tonnes of Nickel concentrates from the Munali Nickel Project in Mazabuka.
-
-Vale sees China
steel demand revival by early 2011 - Steel demand growth in China, the world's
biggest steel market, will revive by early 2011, Jose Carlos Martins, executive
director of ferrous metals at the world's top iron ore miner Vale, said on
Wednesday. -
, with other London
traded base metals trading higher. The Euro is trading over 1/10 of 1% higher
against the US Dollar. NYMEX crude oil is up over 2/10 of 1% and trading
at $76.34/barrel. Gold is down slightly and silver is up over 1/3 of 1%.
In overnight trading, Asian markets ended higher, with China lower by 2/10
of 1%. European markets are slightly lower at the moment, and US futures
show Wall Street has yet to decide how it will open today. Nickel inventories
rose again yesterday.
Nickel to see correction
on high inventories - Nickel yesterday traded with the positive node and
settled 0.24% up at 1045.4. Some pressure had been seen from the LME stock
also which came up by 1176mt, the total stock at LME is now at 122208mt.
- 
Alfa Invests $15M
in Cuban Nickel - Alfa Group's A1 unit said it would invest $15 million in
a 49 percent stake in its venture with Cuba's Commercial Caribbean Nickel.
-
Orissa to hire advisor
to restructure Idcol Ferrochrome, Kalinga Iron Works - Even as two Central
PSUs- Steel Authority of India Limited (SAIL) and National Aluminium Company
(Nalco) have evinced interest in picking up stakes in two firms run by Industrial
Development Corporation of Orissa Ltd (Idcol)- Idcol Ferrochrome and Alloys
Ltd (IFAL) and Idcol Kalinga Iron Works Ltd (IKIWL), the Orissa government
has decided to appoint a transaction advisor for restructuring of these two
firms. -
Russia's RUSAL
sues Norilsk in Russia over AGM - Russia's UC RUSAL has filed a lawsuit against
Norilsk Nickel (GMKN.MM: Quote), the world's largest nickel and palladium
miner, to overturn a disputed board vote, RUSAL said on Tuesday. -
Zimbabwe: Beijing
Eyes Local Mining Industry - Closer economic and diplomatic ties between
China - the world's second biggest and fastest growing economy - and Zimbabwe
have had wide and far-reaching effects. -
Break taken in
Voisey's Bay strike talks - Both sides in a long-running strike at Voisey's
Bay Nickel's mine in northern Labrador have adjourned talks for a week. -
One tough job
Indonesia's
Antam to up stake in Eramet nickel project - Indonesian state miner PT Aneka
Tambang Tbk will boost its stake to 40 percent in a nickel project run by
Eramet in eastern Indonesia, from 10 percent currently, Antam's president
director said on Friday. -
Over 1,000
residents express support to mining proponents in Brooke’s Point, Palawan
- Over a thousand residents of the southern Palawan town of Brooke’s
Point staged a rally Wednesday to express support to three corporate giants
that are proposing to operate nickel mining. -
Arcelormittal
Announces Appointment of New Chief Executive of Its Stainless Division -
ArcelorMittal today announces that Mr Bernard Fontana has been appointed
Chief Executive of its Stainless Division, which is currently being assessed
for a potential spin-off. -
Severstal Buys
Stake In Nickel Miner - Russian miner and steelmaker Severstal is diversifying
into nickel, and has bought a 21.7% stake in Norwegian mining and development
company Intex, via its subsidiary firm, Lybica Holding. The deal is estimated
at $12.5m (€9.55m). -
August 2010 Crude
Steel Production - World crude steel production for the 66 countries reporting
to the World Steel Association (worldsteel) was 113 million metric tons (mmt)
in August. This is 4.2% higher than August 2009.
- 
Stainless
steel production for first half of 2010: More than 40% increase - Preliminary
figures released by the International Stainless Steel Forum (ISSF) show that
stainless steel crude steel production has tremendously increased in the
first half of 2010 by 44.3% compared to the same period of 2009. -
ThyssenKrupp stainless
revamp may precede spin-off - ThyssenKrupp is headed for a major overhaul
of its weak stainless steel business, clearing the way for a possible spin-off
that could stimulate long-awaited sector consolidation in Europe. -
New Caledonia
court gives suspended jail terms to 32 Rheebu Nuu members - The criminal
court in New Caledonia has sentenced 32 members of the environmentalist Rheebu
Nuu group to suspended jail terms for their role in clashes with police near
the construction site of the Vale nickel plant in 2006. -
Premier visits
Aksu Ferroalloy Plant in Pavlodar region - Within the framework of a working
trip to Pavlodar region Kazakh Prime Minister Karim Massimov has visited
the Aksu Ferroalloy Plant - branch of "TNC "Kazchrome" JSC. -
FeCr Demand Is
Expected To Revive In Q4 / 10 And Its Prices Are Anticipated To Improve =
A View By Yildirim CEO Of Eti Krom / Turkey, Who Came To Japan In Last Week
- Mr. Robert Yuksel Yildirim, President and CEO of Eti Krom Inc. as a major
chrome producer in Turkey, came to Japan and had an interview with our pressman
(Mr. Hideo Saitoh) on the 3rd of September at The Imperial Hotel in Tokyo.
-
The European Crisis
in 3 minutes
We are
on the road tomorrow and Friday so we are unable to advise when, or even
if, we will be able to update the site Thursday or Friday. We apologize for
the inconvenience and will make every effort to update if time and conditions
permit.
Italy 2010 stainless
steel demand seen up 20 pct - Stainless steel demand in Italy, Europe's
second-biggest market after Germany by consumption, is expected to rise about
20 percent this year, recovering after a drop in 2009, a leading product
distributor said on Tuesday. -
Posco / South
Korea Moves To Produce Stainless Steel At Full Capacity From September =
Commenced To Increase Purchases Of Stainless Steel Scrap - Posco of South
Korea has moved to produce crude stainless steel at full capacity from September.
-
Deripaska on US
mission - Oleg Deripaska, chief executive of Rusal, the Russian aluminum
monopoly, is preparing a series of presentations to institutional investors
next week in Boston and New York, chaperoned by one of his largest creditor
banks, BNP Paribas. -
. Stockpiles of nickel stored
in LME approved warehouses rose again overnight, and now sit just over the
120,510 tonne level. Sucden's day old chart show nickel trading thru yesterday
(
Antofagasta / Chile
Completes Project To Expand Molybdenum Production = To Produce 20 Million
Lbs. Of Moly At Los Pelambres Mine In 2010 - Antofagasta of Chile had been
proceeding the project to expand the capacity at Los Pelambres Mine and,
consequently, completed this project on the end March of 2010 within budget
as scheduled. By this completion of the expansion, Los Pelambres Mine has
planned to produce copper : 400,000 tons and molybdenum : 9,200 tons on Mo
content base in the calender year of 2010. -
