mb weekly 20130826
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Monday 26 August 2013/ Number 9317/ World steel and metal news since 1913
SMELTERS SEIZE THEIR MOMENT
Copper concentratesmarket loosens upTC/RCs hit 12-monthhighs as mine output
rises 12%: page 5
The party's
over...
MINAS GERAIS MERCHANDISE
Brazilian pig ironbound for Italy50,000-tonne cargowill be first shipment
in two years: page 11
'Weve got assets we can work on.We feel comfortable going forward'
Ivan Glasenberg: pages 5 & 8
Banks are getting out of the aluminiumfinancing game, fearing the crackdown on warehouse queues.
A massive contango has emerged, but who wants to play it? page 6
Miner sees drop of more than $4bn;expects 2014 capex to be $16.2bn,
down from $22.9bn in 2013: page 4
Glencore Xstrata takes$7.6bn hit on Xstrata acquisition
Handling their own hangoversBHP profits slump 29.5% on
volatility in commodities
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Published by the Metals, Minerals and Miningdivision of Metal Bulletin Ltd.Metal Bulletin Ltd, Nestor House, PlayhouseYard, London EC4V 5EX. UK registration number:00142215.Editorial headquarters: 5-7 Ireland Yard, LondonEC4V 5EX. Tel: +44 20 7827 9977.Fax: +44 20 7928 6892 and +44 20 7827 6495.E-mail: [email protected]: http://www.metalbulletin.com
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Monday 26 August 2013 | Metal Bulletin |3
Monday26August2013/ Number9317/Worldsteeland metalnewssince1913
SMELTERS SEIZETHEIR MOMENT
Copper concentratesmarket loosens upTC/RCs hit 12-monthhighs as mine outputrises 12%: page 5
The party'sover...
MINAS GERAIS MERCHANDISE
Brazilian pig ironbound for Italy50,000-tonne cargowill be first shipmentin two years: page 11
'Weve got assets we can work on.We feel comfortable going forward' Ivan Glasenberg: pages 5 & 8
Banks are getting out of the aluminiumfinancing game, fearing the crackdown on warehouse queues.
A massive contango has emerged, but who wants to play it? page 6
Miner sees drop of more than $4bn;expects 2014 capex to be $16.2bn,down from $22.9bn in 2013: page 4
Glencore Xstrata takes$7.6bn hit on Xstrata acquisition
Handling their own hangoversBHP profits slump 29.5% onvolatility in commodities
7
Roll on thefuture
Metal Bulletins focus is on providing real-timemetal news, price information and marketanalysis from journalists around the globe.
Teams in Singapore, Shanghai, London,New York and So Paulo, as well as reporters inSouth Africa, Mozambique, India, Tokyo, Istanbuland Brussels, all feed Metal Bulletins website andnews and price alert services.
Based on the work of those dedicatedjournalists, editors and newsdesk staff, MetalBulletin will be offering a better service to itssubscribers from next week, Monday September 2.
Weve made some changes...We have been working to enhance our MetalBulletin Daily publication.
From next week, every Metal Bulletin Daily willinclude all our latest prices on a daily basis.
Key base metals, ores and ferro-alloys, minormetals, steel, scrap and iron ore prices will appear
in the news sections to which they are relevant.There will also be a comprehensive list of each
one of our prices at the end of every issue ofMetal Bulletin Daily, enabling subscribers to quicklyreference the prices that they use in their business.
More price information is one importantelement of the enhanced publication, but thenew Metal Bulletin Daily will also contain everystory that Metal Bulletins global teams haveproduced in the preceding 24 hours.
That will mean that whether it is a market-movingstory about cobalt, a report on copper TC/RCs, ourunique aluminium trade log, or a scoop about the
takeover of a ferro-alloys plant, it will be available
in full to our subscribers, both on the web and inthe new daily.
In addition to the way in which we haveenhanced our daily, we are also launching aglossy, monthly magazine.
Metal Bulletin Magazinewill contain ground-breaking interviews with leading executives anddetailed feature articles on a range of markets ina format that we think executives in the businesswill appreciate. Regular pages will look at trendsthroughout the metal supply chains.
Keep your eyes peeled for the first coverinterview, carried out by Metal Bulletin specialcorrespondent Andrea Hotter, which is a cracker.
...and there will be more to followOne consequence of these new developments,though, is that Metal Bulletin will from next weekcease publication of its glorious yellow weeklymagazine, which is a familiar sight on office desks
around the world.Metal Bulletin provides price information and
news for the metal markets, and will continue todo so on the web, in email alerts, in print, inapps, and in its enhanced daily PDF.
The time and utility of a weekly magazine haspassed though, in our opinion.
In successive roles as chief sub-editor, newsdeskeditor and editor, I reckon I have overseen thepublication of more than 700 print copies ofMetal Bulletin. But that was the past.
Roll on the future
Alex Harrison, editor, Metal Bulletin
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Non-ferrous metals
4| Metal Bulletin | Monday 26 August 2013
ALUMINIUMAluminium spreads frozen in alarge contango as financingdeals fade away 6
BASE METALSWestern banks leave a gap asthey back away from physicalcommodities 7
GLENCORE RESULTSGlencore Xstrata relaxedabout writedown Glasenberg 8
MINOR METALSUS recovery not filteringthrough to minors 9
IN THIS SECTION
LONDONBY JANIE DAVIES
ENRC and CHEMK Industrial Groupare expected to confirm thetakeover of the Serov Ferro-alloysPlant by the Russian metallurgicalgroup within weeks, sources closeto the deal told Metal Bulletin.
The Serov plant, part of ENRCsferro-alloys division, produceshigh, medium and low carbonferro-chrome, as well as ferro-
silicon and ferro-silico-chrome.The CHEMK Industrial group is
owned by the Urals-SiberianMetallurgical Co. It also owns RFAInternational, which is theexclusive marketing agent forCHEMK products.
Negotiations are continuing. Ithink [the takeover] will go ahead;theyre waiting for ENRC boardapproval, one market source toldMetal Bulletin.
London-listed ENRC is the targetof a privatisation bid by its three
founding shareholders and the
Serov deal will not be announceduntil the delisting is confirmed andcompleted, sources close to thedeal told Metal Bulletin.
ENRC will wait to complete itsdelisting before handing over thatasset, a source told Metal Bulletin.
ENRC declined to comment.
CHEMK Industrial Group and RFAInternational could not be reachedfor comment.
The London-listed miner said ina results report this month that ithad bought out the remainingnon-controlling interests in the
Serov asset this year.
ENRC, CHEMK edge closer to
Serov Ferro-alloys Plant deal
PrivatisationENRC will complete delisting before plant sale is announced
SHANGHAI
Chinese spot nickelpremiums fall furtheras market stays quietSpot nickel premiums in Chinamoved further down last weekamid a quiet market.
Traders in Shanghai were offeringpremiums of $80-130 per tonne forspot standard Norilsk Nickelplate, down from $120-160 seen at
the beginning of the month.We have not done any business
on imported nickel [...] there areno buyers in the market, a traderfrom Zhejiang province said.
Trade in the market was very lighton lack of demand, a Ningbotrader said, adding that risingprices of nickel pig iron may boostdemand for refined nickel.
Spot prices of high-grade NPI (Nicontent 10-15%) rose by 50-60yuan ($8-10) from three weeks agoto 980-1,000 yuan per nickel unitlast week.
The hike came after major steelmills lifted their purchase prices ontight market availability.
Chinas refined nickel importssoared 59.9% month-on-monthin July to 16,670 tonnes, accordingto the latest figures from Chinesecustoms.
Nickel ore imports also moved up20.9% from June to 6.5 milliontonnes last month, withPhilippines accounting for 60.3%of shipments and Indonesiaaccounting for 39%.
SINGAPORE
The worlds largest miner BHPBilliton posted a 29.5% slump infull-year attributable profit citingslowing global growth and volatilecommodity markets.
Attributable profit for the yearended June 30 was $10.88 billioncompared with $15.42 billion ayear ago.
Weaker commodity prices hurtearnings by $8.9 billion and thecompany took exceptional chargesof $922 million, includingimpairment charges related to itsNickel West and Worsley assets.
Revenue fell by 8.7% to $65.97billion.
The miner, which has been on amajor cost cutting drive, expectsfinancial year 2014 capital
expenditure to be $16.2 billion,down from $22.9 billion in 2013.
I want to get capex to $15 billion,which is a reasonable target, ceoAndrew Mackenzie said on aconference call with reporters.
Consistent with ourcommitment to shareholders, nomajor growth projects wereapproved during the 2013 financialyear, BHP said.
Of the 18 major projects inexecution, about 70% are expectedto deliver first production by theend of the 2014 calendar year, thecompany said, adding that amajority of its developmentprojects are brownfield, which areinherently lower risk.
I have no targets for assetsales, Mackenzie said.
BHP Billiton posts 29.5% slumpin full-year attributable profits
CHEMK expected to announce takeover of ENRCs Serov plant soon
LONDON
Alumina market seeshigher prices in Q4Alumina market participantsexpect higher prices in the fourthquarter as demand returns foravailable cargoes, and as UnitedCo Rusal works to limit sales backto the market that are promptedby aluminium capacity cuts.
Metal Bulletins fob Australiaalumina index settled at $319.67per tonne on Friday August 16,rising from $318.24 previouslyafter two weeks of almost nodeals being reported.
After the index sat at theprevious level for two weeks,market participants said that thereal number could well have beenlower before demand returned.
A trader reported an October saleat $322 per tonne, as the marketexpects higher prices to come.
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Monday 26 August 2013 | Metal Bulletin |5
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MOST READ ON THE WEB1 EXPERT VIEW: Pressure can
only grow for warehousingchanges Clydes Whittaker
2 LORD COPPER: The guard
changes at the LME3 VIDEO: Deep sea miningactivities ratchet up
4 COMMENT: LME rule changesturn words to action oncapacity curtailments
5VIDEO: Alcoas Jamaicanbauxite operations
6 HOTLINE: Behind every greatman...
7 HOTTER ON METALS: Westernbanks in physical marketsmay have no choice
8Al spreads frozen in a largecontango as financing fades
9 Glencore Xstrata relaxedabout writedown
10LETTER TO METAL BULLETIN:Response to South Africanscrap article
Most read non-ferrous storiesin the week to August 23.See www.metalbulletin.com
Copper concs market loosens as
mines grow, smelters withdraw
Charged upTreatment, refining costs for copper concs move above benchmarks
LONDON
Commodities giant Glencore Xstrataposted a 9% year-on-year fall inunderlying earnings in the first halfof the year even as its marketingarm reported a solid performance,the merged entity said.
A goodwill impairment of $7.6billion was recorded in relation tothe Xstrata acquisition, reflectingthe broader negative miningindustry environment and theheightened risks associated withgreenfield and large-scaleexpansion projects, the companysaid in the first half-yearly results
statement since the merger.It expects cash savings to
materially exceed the previousguidance of $500 million perannum.
Underlying earnings for the sixmonths ended June 30 2013 stoodat $6 billion, compared withadjusted pro forma earningsbefore interest, taxes, depreciationand amortisation (Ebitda) of $6.6billion in the same period last year.Marketing operations contributed$1.2 billion of ebit, a 6% increaseyear-on-year.
The Las Bambas sale process is
underway, the company saidwithout elaborating further. Thesale of the mine, which will takeplace by September 30 2014, was aprecondition made by Chinasministry of commerce to approvethe merger between Glencoreand Xstrata.
Underlying earnings of the metalsand minerals division fell 4%year-on-year in the first half of 2013on the back of weak commoditiesprices, though production growthat African copper mines andAntapaccay offset the weak prices,the company said.
Glencore Xstrata takes $7.6 billion impairmentcharge on Xstrata acquisition
LONDONBY MARK BURTON
Spot treatment and refiningcharges (TC/RCs) for clean copperconcentrates have movedcomfortably above benchmarklevels in recent weeks as mineproduction has outperformed
expectations and smelters havestarted to think strategically aboutpurchasing ahead of matingseason, sources said.
Traders, miners and smeltersreported TC/RCs as low as $75 per dry
metric tonne/7.5 cents per lb and ashigh as $85/8.50 per lb in dealscarried out over the past month,compared with prevailing levels of$68-75/6.8-7.50 per lb seen in June.
Its quite common thatwhen the market getssofter there are fewertenders, because minersprefer to try to sellquietly Mining source
Copper mine production has outperformed expectations recently
LONDON
Ferro-vanadiumcontinues its upwardtrajectory; pentoxidefinally follows
Ferro-vanadium pricescontinued to move up in Europeon Wednesday August 21, asmarket participants reported amarked increase in enquiries.
I would not be surprised to seeit all the way up to $27 [per kg] inthe next week, a trader toldMetal Bulletin.
Last week, it was all about thetrading companies, but this weekwere seeing end users back inthe market with enquiries.
Metal Bulletins Europeanquotation moved up to $25-26per kg on Wednesday, from$24-24.80 per kg previously, on awave of renewed interest.
Theres a big spread betweenconsumer and trader prices.Today, there are offers between$25.85 and $26.20, a secondtrader said.
A parcel of Chilean high-arsenicconcentrate was sold to a Chinesesmelter for about $88/8.80 per lb,but the bulk of sales for cleanconcentrates are pegged below$80/8 per lb, a mining source said.
At the moment Id say $80/8 isntunrealistic for an average qualityconcentrate, a trader added.
TC/RCs have risen to 12-monthhighs in response to an 11.9%year-on-year increase in
concentrate production seen overthe first half of the year, Macquarieanalysts said in a recent note.
There are expectations that, as inprevious years, spot terms will risefurther in the run-up to supplynegotiations for next year, assmelters cut purchases in the spotmarket, market observers said.
Were going to see that typicalpullback from the smelters over thenext couple of months as they tryto make the market look as looseas possible, the mining source
told Metal Bulletin.In turn, miners are likely to avoidholding tenders to avoid puttingundue pressure on the marketahead of the mating season, asmelter source said.
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Non-ferrous metalsAluminium: www.metalbulletin.com/Base-metals/Aluminium
6| Metal Bulletin | Monday 26 August 2013
LONDONBY MARK BURTON
The lucrative contango in nearbyaluminium spreads is failing toattract bidders as banks that haveprofited by financing warrants pullback from the market, sources toldMetal Bulletin.
The banks have done this inresponse to the wide-rangingprobes and legal claimssurrounding their activities in
physical commodities.Interest in taking on new stock
from the physical market to use incarry trades is also grinding to ahalt because of expectations thatnear-record-high aluminiumpremiums could drop dramaticallyduring the tenure of the deals,sources also said.
There are expectations thatcontract premiums could plungeduring the upcoming matingseason if warehouse companieswithdraw delivery incentives in
response to new LME rules that will
force them to reduce load-outqueues.
Nearby London Metal Exchangespreads have traded in a widecontango over recent weeks, withthe cash contract trading at a$49 discount to the three-monthforward price on August 21.
The contango seen recently onnearby aluminium spreads is largerthan it has been at any point sincethe financial crisis began, offering
big returns for investors that canwin concessions on storage costs.
On August 16, the $47 cash-to-three-month contango wouldyield a 7.71% annualisedcontinuously compounded rate of
return, net of assumed storagecosts of 7 cents per day andcalculated bank borrowing costsand risk premiums for A-ratedfinancial institutions, according toMetal Bulletin Research analysis.
Three months earlier, theequivalent yield was 3.68% and 12months ago it was 5.96%, accordingto Metal Bulletin Research.
Spread still tradingThe spread is still trading justbelow the cost of carry for thosepaying full LME rent and borrowingat a standard commercial rate, andis attracting some borrowing eachtime it approaches a full-financecontango, which would be above$50 per tonne, a category II brokertold Metal Bulletin.
The size of a contango willtypically be capped as soon as itexceeds the costs of finance,storage and insurance, as carrytraders will be able to achieve a
virtually risk-free return by buying
aluminium warrants throughclearing, simultaneously sellingforward contracts and settlingthem physically when theybecome prompt.
The process of sifting for warrantsfor use in carry trades in LMEwarehouses dropped sharply asthe investigations wereannounced last month, aring-dealing trader told MetalBulletin.
Normally there is an orderlyqueue to sift warrants, but thelikes of JP Morgan just dont seeminterested, the trader said.
Outside the LMEs warehousingnetwork, interest in buying stockto store in private rent deals hasalso collapsed because ofexpectations that premiums willdrop significantly during thetenure of deals.
The spreads are offering a goodreturn; its the premiums that are aproblem, an analyst at a large
category I firm told Metal Bulletin.
Aluminium spreads frozen in a large
contango as financing deals fade away
Few biddersBanks have retreated, buys for the carry trade are weak on fears that premiums will plummet
Contract premiumscould plunge during theupcoming matingseason if warehousecompanies withdrawdelivery incentives
SO PAULOAlcoas smelting plant in BrazilsSo Lus in the state of Maranho islikely to be the worst hit by thecompanys plan to curtail smeltingcapacity.
Last week, the companyannounced plans to permanentlyclose a potline with a capacity of40,000 tpy at its New York facilityand temporarily curtail 124,000 tpyof capacity at its smelters in Brazilin response to lower aluminiumprices and premiums.
The Pittsburgh-based companyintends to reduce 92,000 tpy atSo Lus and 32,000 tpy at its otherplant in Poos de Caldas, MinasGerais state of Brazil.
We are taking these actions dueto the persistent weakness in
global aluminium prices and tomaintain Alcoas competitiveness,a source at the company toldMetal Bulletin, adding that energyprices do affect their ability tocompete in Brazil.
In 2012, Alcoas productiondropped 6.5% to 327,600 tonnes,according to the countrys nationalaluminium association Abal.
Production at the companysSo Lus unit was down by 8%year-on-year at 241,700 tonnes,while output at thePoos de Caldas unit fell 2.3% to85,900 tonnes.
In 2009, after the Wall Streetcrisis and the Lehman Brothersfall, the situation was so[complicated] that we closed thesame line in Poos de Caldas. The
line reopened. Sadly, today weannounced its closure again,Franklin Feder, Alcoas presidentfor Latin America and theCaribbean, was quoted as saying
in local newspaperO Estado de SPaulo. I am optimistic, we willreopen. Aluminium cycles usuallylast five to six years. We are in thesixth year, Feder added.
Alcoas So Lus plant in Brazil will be hit hardest by smelting cuts
Alcoa smelter, So Lus: will see closure of 40,000-tpy potline
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Base metals: www.metalbulletin.com/Base-metals
Monday 26 August 2013 | Metal Bulletin |7
NEW YORKBY ANDREA HOTTER
US and European banks appetitesfor physical commodities arewaning amid increasing regulatory
scrutiny, with smaller merchants,trading houses and brokersexpected to step up to partially,but not completely, fill the gap.
Trading companies like Swiss-based energy and commoditygroup Mercuria and privatelyowned trader Gunvor, and bankslike Brazil-based Grupo BTGPactual SA and Chinas Industrialand Commercial Bank of China(ICBC) are all ramping up theiractivities in metals.
That these firms are keen to
expand their commoditiesbusinesses is not new.
Mercuria and Gunvor have bothhired metals personnel to buildteams over the past 18 months.
ICBC took a 20% stake in StandardBank in 2008, and has beennegotiating to buy the South Africanbanks commodities and foreignexchange business for some time,according to media reports.
BTG Pactual is also beefing up itscommodities sales and tradingoperations. In April, the CentralBank of Brazil approved theallocation of $300 million to be
invested in companies BTG Pactualis creating in connection with itscommodities business.
Latin Americas largestindependent investment bank, BTGPactual trades energy, sugar andethanol, and set up BTG PactualCommodities Holding (UK) in June.Earlier this month, the bank hiredmetals warehouse executive ShonLoth to its London office.
What has changed, however, isthe backdrop against which thesefirms will be operating.
US-regulated banks active incommodities are under increasingpolitical criticism by the US Senateover the role they play in thephysical markets, both in terms ofassets they own and the productsthey trade.
Adding to the pressure is aninvestigation into warehousing bythe US commodities regulator, CFTC,which has seen Goldman Sachs
Western banks leave
a gap as they backaway from physicalcommodities
Hotter on MetalsRegulatory and political pressureis forcing a change in warehousings players
NEW YORK
People with knowledge of thematter said that merchants andtrading companies are amongthose that have expressedinterest in the warehousebusinesses of JP Morgan andGoldman Sachs.
Finding a buyer is not expectedto prove tricky.
But the high cost required tofinance the storage of metal along
with other physical commoditiestrading is likely to limit thenumber of participants able toplay a role in the sector.
Some of the names that haveexpressed interest in thewarehouse units have raisedeyebrows within the banks sellingthem, people with knowledge ofthe matter said.
This is largely due to therelatively small size of the
potential buyers compared to thescale of the sellers.
Deutsche Bank, Barclays andMorgan Stanley would havetypically been the kinds of playersthat would have looked to getmore involved in the physical sideof the metals markets.
But all three banks face the verysame regulatory and politicalpressure as Goldman Sachs andJP Morgan face in the USA over
their activities in physicalcommodities.
Deutsche Bank has eased backits involvement in physicalmetals financing and trading oflate, while Barclays hasdownsized its metals businesssince leaving the floor of theLondon Metal Exchange inNovember last year.
Morgan Stanley is not a bigplayer in physical metals.
Deep pockets are needed to finance involvement in warehousing
executives among those issuedsubpoenas.
JP Morgan has said it plans to getout of physical commodities tradingas well as divest ownership of assetslike its Henry Bath warehouse unit.Traditional banking activities incommodities, including financial
derivatives and the vaulting andtrading of precious metals, will stay.
Goldman Sachs, however, says itremains committed to physicaltrading, run through itscommodity arm J Aron. The bankalso owns warehousing firm MetroInternational Trade Services andsome Columbian coal mines assets it considers to be non-core.
If the US Federal Reserve decides
to force Goldman Sachs and otherbank holding companiesauthorised to engage in physicalcommodity activities to exit thatside of the business completely,the departure of the biggest namesin the sector would come at a veryopportune moment for non-US
regulated entities like Mercuria,Gunvor and BTG Pactual.In the physical trading space,
Glencore Xstrata, Trafigura andother physical merchants withlong histories in the sector will bewell placed to step up.
So too will be hedge funds,whether those already active inphysical commodities or planningto complement their derivatives.
Mercuria and Gunvor have both hired metalspersonnel to build teams over the past 18 months
ICBC is one of the eastern banks ramping up their activities in metals
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Non-ferrous metals
Glencore results: www.metalbulletin.com/Base-metals
8| Metal Bulletin | Monday 26 August 2013
LONDONCLAIRE HACK
Glencore Xstrata ceo IvanGlasenberg is relaxed about the
$7.6 billion goodwill writedownincurred following the completionof the merger, he said during thecompanys first half results call onTuesday August 20.
Weve got assets we can workon. We feel comfortable goingforward, Glasenberg said.
The synergies are hopefullygoing to be bigger than weenvisaged I hope we can getmore than those figures as timegoes on. Maybe the writedownwont exist in five years.
The writedown was linked to the
Glencore share price on the day thetransaction closed, putting thenominal value of Xstratas equity at$44.6 billion.
Commodity prices had come offsince the second half of last year.There was also a writedown ofabout $450 million in respect ofMurrin Murrin nickel, cfo SteveKalmin said during the call.
Another $324 million was writtendown in relation to the companysinvestment in UC Rusal because ofaccounting standardsrequirements.
The trading part of the businessperformed very well. AdjustedEbitda [earnings before interest,
taxes, depreciation andamortisation] on the industrialside was down 14%, but that wasbecause there were more assets inthe portfolio, Glasenberg added.
Ebit and Ebitda were downbecause of the weakness in corecommodities, although this wasoffset by improved production.
Integration with XstrataIn terms of the integration withXstrata, Glasenberg said, thecompany has made rapid progressand has taken decisive action toreduce asset overheads andrationalise operations.
In terms of cost-cuttingmeasures, by September, we willgive a better idea of how wereworking on those across the twocompanies, he said.
Overall adjusted Ebitda wasdown 9% year-on-year, Kalmin
said, marking a relatively positiveperformance compared with therest of the metals and miningsector, where falls in earnings weremuch more significant in anumber of cases.
Effectively, its a pleasing result.We were affected by commodityprices but we started to see volume
growth, which cushioned theeffects of the lower prices, he said.
Volume growthBoth zinc and iron ore volumes haveshown strong growth during thefirst half of the year, Kalmin said.
Where we end up on the sale ofLas Bambas will be the main factorto move these numbers potentiallyas well, Kalmin added.
On the metals side, Ebitda wasdown 4%, while Ebit was down25%, he said, as a result of
increased depreciation in copper.We have had a more positive
performance from the Australiancopper side, Kalmin said.
However, copper prices havedropped 7% in the first half of 2013compared with the first half of2012, with an average cash price of$7,543 per tonne during the period.
Glencore Xstratarelaxed aboutwritedown Glasenberg
GrowthWhere we end up on the sale of Las Bambaswill be the main factor to move these numbers
Weve got assets we can work on. We feel comfortablegoing forward Ivan Glasenberg, Glencore Xstrata
LONDON
Glencore Xstratas writedown forthe first half of 2013 could havebeen restricted to $2 billion hadthe merger closed 30 days earlier,ceo Ivan Glasenberg said onTuesday August 20.
The writedown, which was linkedto the negative mining industryenvironment and sentiment in thefirst half, as well as risks associatedwith green field and expansionprojects, was pushed up byGlencores share price on the day
the transaction closed.This is a writedown we had to
take in a way. If we do a valuationfrom the bottom down, at thatpoint, commodity prices had comeoff and thats what gave us thevalue, Glasenberg said.
In terms of the impact of themacroeconomic environment, oncommodity prices, and in turn thecompanys share price, theinfluence of China and Indiaremains key, he added.
Today, China consumes 40-50%
of most of the worldscommodities. They are going tourbanise 400 million people in thenext seven to eight years. Theresnothing that changes our view thatthis is going to happen, he said.
India is also industrialisingmuch quicker than peopleimagine. They are building powerplants and generating more andmore electricity. There is certainly a[large] amount of growth inIndia, Glasenberg added.
There are areas where the
company may be able to reducesustaining capex, cfo Steve Kalminsaid during the call, which havenot yet been taken into account.
There are also more opportunitiesfor blending and arbitrage nowthat Xstratas commodities areflowing into the trading business.
When Xstrata was an associatecompany, even though Glencorewasnt in control, what was keywas that we wanted to have inputon the marketing business,Glasenberg said.
Glencore Xstrata writedown pushed up significantly by timing
Ebit and Ebitda weredown because of theweakness in corecommoditiesIvan Glasenberg
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Minor metals: www.metalbulletin.com/Minor-and-precious-metals
Monday 26 August 2013 | Metal Bulletin |9
LONDONBY MARK BURTON
The recovery in key areas of the USeconomy, such as housing,employment and consumerconfidence, has not yet improveddemand for minor metals,suppliers and consumers in NorthAmerica told Metal Bulletin.
The sustained positive trend inhousing starts, employment andconsumer spending since the startof the year has been taken as a signthat the US economy is picking upafter the global financial crisis, but
the upturn has not yet filteredthrough to a pick-up in theconsumption of minors, includingbismuth, selenium and indium.
The true test for the US economywill be whether the recovery willcontinue as asset purchases taperoff and interest rates are lifted tomore normal levels, sources in theUS minor metals industry said.
Bad signs from Motor CityThe still-precarious state of certainsectors of the US economy was
highlighted by Detroits applicationfor bankruptcy protection in July,the largest filing of its kind in theUSAs history, Vital MaterialsMichael Xiong told Metal Bulletin.
Detroit has witnessed a massivepopulation decline over the pastseveral decades as its automotivesector has struggled to competewith global rivals operating incheaper labour markets, and thatexodus has in turn squeezed thecitys tax revenues severely andcaused it to rack up municipal debts.
When he came to power inJanuary 2009, US president BarackObama oversaw an $85 billionbailout of Detroits auto industry,
US recovery not filtering through to minorsBleak outlookClosures, consolidation, streamlining ahead for US solar industry as low demand remains
While recent data has provided awelcome boost to business andconsumer confidence in the USA,for many companies, particularlythose supplying to high-tech
manufacturing sectors, businessconditions are still dictated bydevelopments in Asia, accordingto Umicore Thin Film ProductsChristophe Murez.
Over the past few years,Umicores thin-film division hasfocused on developing a new more
efficient rotary indium-tin-oxide(ITO) sputtering target for flat paneldisplay manufacturers, most ofwhich are based in Asian countries,including Taiwan, Japan, South
Korea and, increasingly, China.While the steady improvement
in consumer demand in thefinal-use markets in NorthAmerica is encouraging, thecommissioning and expansion offlat-panel production capacity inAsia has a greater and more
immediate impact on Murezsbusiness, he told Metal Bulletin.
Because were focused onrotary ITO, at the moment weremuch more interested in the new
investment that flat-panelmanufacturers have been makingrecently. For two years there washardly any investment, but in thepast six to nine months weveseen that changing as severalmajor companies have rolled outbig expansions, he said.
US market still dependent on Asian growth
and compelled Ford, Chrysler andGM to refocus on energy-efficientvehicles as part of a drive toreorganise US manufacturingaround renewable energy andgreen technology.
While progress has been madesince then the Big Threes salesfigures for July were the strongestsince 2006 the citys inability toescape bankruptcy is a sign of theunderlying fragility that persists inthe US economy, Xiong said.
Solar demand downElsewhere, the solar sector, one ofthe main beneficiaries in BarackObamas multi-billion-dollargreen jobs programme, has
undergone its own crisis in the pastthree years, and is a long way frommaking a meaningful contributionto the US economy, Xiong said.
Xiong, whose company providesraw materials including cadmium-telluride and copper-indium-gallium-selenide to the solar sectorin North America, said sales maynot rebound until 2016 or beyond.
We have big hopes for theindustry, but we expect it will takethree years or maybe even longerfor the market to rebound. Theindustry is still overstocked withsolar panels and we dont expectbig demand in the next two orthree years, he told Metal Bulletin.
In the interim, the industry will
witness further consolidation assolar companies with less efficienttechnologies and manufacturingprocesses will close and strongerplayers will streamline their panelproduction and improve theirconversion efficiency.
Solar sector consolidationRecent acquisitions made byHanergy, the worlds largestthin-film solar panel maker, andFirst Solar, the largest manufacturerof cadmium-telluride solar panels,indicate that those companies arealso looking to incorporate newtechnologies and expand in newmarkets to position themselves forlong-term growth, Xiong said.
The solar sector in the USA is waiting for a pickup in demand, which could be 2-3 years away
We have big hopes forthe [solar] industry, butwe expect it will takethree years or maybeeven longer for themarket to reboundMichael Xiong, Vital
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Scrap and secondary
LONDON
UK monthly domesticscrap prices settle $16per tonne higherUK domestic August scrap pricessettled for delivery to steelworksrose by 10 ($16) on higher demandfrom domestic mills, reducedsupplies and higher internationalprices, market participants said.
The price rise for Augustsettlements was in line with recentmarket expectations.
In cut grades, domestic 1&2 oldsteel delivered to UK steelworksclosed in a range of 185-205 pertonne, while OA plate and structuralwas at 200-220 per tonne, both up10 per tonne month-on-month.
The settled prices for 12A, 12C and12D were in the range of 200-220per tonne, also up 10 per tonnemonth-on-month.
All bales and cuttings prices roseby 10 on the high and low end ofthe range.
Prices for 8B coated cuttingsdelivered to steelworks were at187-192 per tonne. Prices for 4Cbales, which use 8B as a feedstock,were at 207-212 per tonne.
10| Metal Bulletin | Monday 26 August 2013
LONDONBY JETHRO WOOKEY
UK secondary aluminium pricesstayed flat on Wednesday August21, with producers expectinghigher prices in the next few weeksafter reporting fresh enquiries fromconsumers returning from holiday.
Its steady as we wait for theconsumers to come back in force,a producer said.
The sting was taken out of
demand by the summer break, butpeople are filtering back now andtentative enquiries are comingthrough.
LM24 pressure diecasting ingotremained at 1,520-1,570 pertonne, while LM6/LM25 gravitydiecasting ingot stayed at1,720-1,780 per tonne.
Demand has been relativelystrong throughout the summer,with several producers having toturn down orders as they oftencould not cover the volume withreduced summertime operations.That demand was substantiallyprompted by the insolvency ofGerman producer Oetinger in June,as its customers looked elsewherefor nearby tonnages.
As Oetingers administrator only
guaranteed payments to supplierstill the end of August, consumersare again looking elsewhere tosecure September and fourth-quarter volumes. This will continueeven if Oetinger can guaranteepayments to the end of the year.
As a professional buyer, nomatter what the promises of the
administrator, you have to lookelsewhere, a second producersaid. You have to diversify yoursupplier base, so [Oetingers]customers will give a percentage of
the work to other companies.Scrap prices were also stable on
Wednesday, with one scrap dealersaying that the market was quieterthan he had ever seen it.
UK secondary aluminium market sees
consumer enquiries as holiday season ends
Prices flatProducers expect pick-up in the next few weeks, once consumers are back in force from breaks
BURSA
Weakening rupee hitsIndian scrap marketagainScrap trade into India slowed downagain last week after a short-livedrecovery in the previous week,Metal Bulletin sister title Steel Firstwas told on Tuesday August 20.
The slowdown was attributed bymarket sources to the weakeningof the rupee against the dollar.
With the Indian rupee touchingRs64 against the US dollar, it isbecoming quite uncompetitive forimports [of scrap], a UK-basedtrader said.
The rupee was trading at Rs63.26to $1 on August 20, a sharp fall fromits value on July 20 of Rs59.655 to $1.
Containerised shredded scrapoffers were quoted at $380-385per tonne cfr Nhava Sheva, whichis up from two scrap purchasesinto India of containerisedshredded scrap at $375 per tonneon August 12.
HMS 1&2 (80:20) imports intoIndia were priced $10 per tonnebelow shredded scrap prices,sources said.
CAPE TOWN
LETTER: Notion thatSA scrap buyers needfurther discount isincorrect
Dear Metal Bulletin,[With reference to your articleSouth Africas scrap, foundryindustries face sweepingchanges, August 15], the notionthat SA foundries are competing ata disadvantage to foreignfoundries and therefore requirea further artificial discount ontheir scrap purchases in order tobring about a level playing field issimply incorrect.
South African domestic scrapprices are based on export pricesin the best markets available to SAexporters which are not Germany,Italy or France, but rather China,India and Southeast Asia.
As an example, old rolledaluminium in India is about$1,600 per tonne cif India. Freightis about $60 per tonne, resultingin a fob price of $1,540 (equivalentto R15,685 per tonne). Fobbing
cost is R1,100 ($108) per tonne,leaving R14,300 per tonne inJohannesburg.
Therefore the price in India isR16,000 per tonne cif India(higher by the time it reaches anIndian foundry after import costsand duty into India are added),while in Johannesburg it isR14,300 per tonne delivered tothe foundry.
So your conclusion: Looking atthese prices, it would appear thatSouth African buyers do not get alogistics-cost discount, is notcorrect.
SA foundries may be able tosource smaller quantities at slightlylower prices but these sources mayhave some disadvantages.
The idea that there should be adiscount on larger tonnages makesno sense with a commodity whichis in short supply and in gooddemand. Goods are sold at adiscount for larger quantities onlywhen they are in unlimitedsupply with a limited demand,such as fruit and vegetables.Graham Barnett, director of
SA Metal, South Africa
Supply is now much lower following factory closures
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Iron and steel
A question of destination50,000-tonne shipment will be first in two years
Monday 26 August 2013 | Metal Bulletin | 11
MARKETSChinese CRC export prices upfurther on firm domesticmarket 12Russian domestic flats up 13
WORLD NEWSGlencore Xstrata iron ore salesup 54% in H1 2013 14
IN THIS SECTION
SO PAULO, LONDONBY JUAN WEIK & NINA NASMAN
A 50,000-tonne cargo of pig ironfrom Brazil will be going to theItalian market, trading sources toldMetal Bulletin sister title Steel First.
The cargo was sold to a traderfour weeks ago by producers in thesouth-eastern state of Minas Gerais,and is being offered at $416-418 pertonne cif Italy for late Septembershipment and delivery aftermid-October, sources involved inEuropean pig iron trading said.
Various Minas Gerais makers of
merchant pig iron sold the cargo toa trading company for around $380per tonne fob between late Julyand early August, for shipment atthe end of September from theport of Rio de Janeiro.
It will be the first cargo ofBrazilian pig iron shipped to Italyin more than two years.
According to data from Brazilsforeign trade ministry, the last timeBrazilian pig iron was directlyshipped to the southern Europeannation was in April 2011 but thatwas a small volume of 459 tonnes
sold at an average fob price of $606per tonne, which indicates that itwas not basic steelmaking pig iron.
It is necessary to go back as far asAugust 2008 to find a cargo of basicsteelmaking pig iron shippeddirectly from Brazil to Italy, whennearly 20,000 tonnes of MinasGerais material left Rio de Janeiro.
Seeking confirmationWhile sources involved with theEuropean pig iron trading marketsaid that at least part of the50,000-tonne cargo will indeed go
Brazilian pig iron cargo will go to Italyto Italy, other sources noted therewas no final confirmation of thetransaction.
People are talking about Italy,but this is not confirmed yet, onetrading source from Minas Geraistold Steel First on Friday August 16.
Three other trading sources twoin Brazil and one in Europe saidthey were uncertain about thecargos destination. Early onAugust 19, however, the tradingcompany that bought the cargo,Hong Kong-based Fecat, confirmedthat it will indeed be going to Italy.
1 Chinas crude steel outputup 2.7% in early August
2 DAILY SCRAP REPORT: Indexrises with further US, Baltic
Sea cargoes3 EMR named preferredbidder for Sita UK scrapyards
4 SunCoke Energy sees rise inQ3 earnings to $72.4m
5 Moodys downgradesoutlook for Asian steelindustry to negative
6 Spot 63.5% Fe iron oreprices end three-day rally
7 METAL BULLETIN RESEARCH:OCTG market worth $33bnand growing
8 Weakening rupee hitsIndian scrap market again
9 CHINA STEEL WRAP: Mostprices down
10Mechel sells Ukrainian steelmill for $2,670
Most read steel stories in theweek to August 23.See www.metalbulletin.com
MOST READ ON THE WEB
Some traders of CIS-origin pig ironinto Italy remarked on the effectson competition in the market ifBrazilian material should appearmore regularly. This couldchange dynamics in the market,a trader of Ukrainian pig iron said.
It is only a question of priceand availability of quantity,
another European trader said,referring to the relatively low costof shipping a large pig-iron cargofrom south-eastern Brazil to Italy.Freight rates from Rio de Janeiroto Italy should be $30-35 pertonne for a 50,000-tonne vessel,sources said.
Italian market participants are
on holiday in August, but thelatest offer for Ukraine-originbasic pig iron was higher than theBrazilian cargo, at $425-427 cif.
The sale to Italy may also reflectthe USAs reduction inconsumption of Brazilian pig iron,in favour of locally produceddirect reduced iron (DRI).
Move spells competition for the CISs pig iron exporters
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Iron and steel
Markets
12| Metal Bulletin | Monday 26 August 2013
SHANGHAI
Chinas cold rolled coilexport prices rosefurther on TuesdayAugust 20, as exporters
took advantage of the firmingdomestic market to make anupward push.
Base export transaction priceswere at $600-605 per tonne fob forOctober shipment, up $5 per tonnefrom Metal Bulletin sister title Steel
Firsts assessment last Friday.Base export offers were at
$620-630 per tonne fob for Octobershipment, also up $5 per tonneweek-on-week.
The firm domestic market andrelatively positive sentiment gavesupport to higher export prices,sources told Steel First.
Major Chinese steelmakersincluding Baosteel have raised their
September list prices for CRC overthe past week, which gave themarket a clearer signal of anuptrend, an export director for anorthern Chinese mill said.
Hence, I would not considerlowering my offer prices even if nodeals can be concluded in theshort term, the source added.
A source with another mill in the
north predicted that overseas buyerswould have to accept higher prices ifChinese exporters stick to currentoffers. This is due to demand slowlypicking up with some buyers
returning to the market from theirsummer holidays.At the moment they are still
resisting prices above $610 pertonne fob, she said.
Chinese CRC expor t prices up
further on firm domestic market
Feeling goodPositive market sentiment supports mills export price increases
Domestic demand for CRC in China has helped exporters raise prices
SHANGHAI
Chinese HRC exportprices unchanged asbuyers sit out
Chinas hot rolled coil
export prices wereunchanged onMonday August 19 as
market participants sat on thesidelines, awaiting clarity.
Base transaction prices forcommercial-grade, boron-containing HRC were at $530-535per tonne fob for Octobershipment, the same level asMetal Bulletin sister title SteelFirsts assessment last Friday.
Base export offer prices for thesame product were also flat at$540-560 per tonne fob for
October shipment.Overseas buyers are resisting
high offer prices amid seasonallyslow demand, while Chineseexporters are unwilling to closedeals at lower prices given the firmlocal market, export sources said.
We have retained our offerprices over the past week despitethe recovery in the domestic HRCmarket, as there have been notransactions, an export directorwith a mill in north China said.
I think the majority of
overseas buyers will continue towait on the sidelines until thetrend on Chinas domestic steelmarket is settled, he added.
NEW YORK
The US merchant barmarket remainedsteady last week andthere was little to
suggest a change in prices in thenear term, market sources toldMetal Bulletin sister title AMM.
I havent heard anything [on apossible price rise] and [mills] arenot expressing that sentiment,one US Midwest service centresource said, adding that thisreflected weak market conditions.
As far as I see, there havent beenany net changes. Its just been flat.
Prices for 2x2x0.25in angles
remain at $753 per ton ($37.65 perhundredweight), 3x3x0.25inangles at $762 per ton, 8x11.5inchannels at $747 per ton and0.5x4in flats at $757 per ton,though one mill source claimedthere was some discounting offpublished numbers.
Theres more than just anormal amount of funny businessright now, he said, adding thatdiscounts of about $10-15 per tonwere available even for smallerpurchases.
Ive heard about [some mills]giving discounts to everybody, hetold AMM.
US merchant bar demand, pricessteady on weak market conditions US steel mills have held
rebar prices flat formost customers overthe past several
months in the face of disappointingdemand, market sources have toldMetal Bulletin sister title AMM.
Producers and fabricators in mostregions are chasing too few orderswith too many tons, they added.
Rebar mills have kept their pricesfirm at about $645 per ton ($32.25per hundredweight), and buyerssaid that, with such thin marginson finished fabricated rebar, theywere ready to pressure theirsuppliers for a discount.
Most said they had not seen adecrease in mill selling prices, but
there were rumours circulating thatindicated some softening.
Its a rough market right now.The overall capacity for rebarproducers is about 60%. These aretough days, a mill source said.
A combination of wet weather inmany parts of the USA and anoverall sluggish economy hasdepressed shipment levels, withconstruction contractors slowingdown their work because of therain, and many fabricators leftwondering when large-tonnagejobs will return.
A 700-ton job would be a bigjob, and there are very few of themaround, a source at a rebarfabricator in Missouri said.
NEW YORK
US rebar prices flat amid weak demand
I would not considerlowering my offer priceseven if no deals can beconcluded in the shortterm Mill source
D
ALIANBINHAICRANEHOISTCO
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Monday 26 August 2013 | Metal Bulletin | 13
Russian domestic flat prices up
on export support, weak rouble
SHANGHAI
Chinas plate exportmarket was lacklustreon WednesdayAugust 21 as mills
focused their attention on thestronger domestic market, whileoverseas buyers remainedreluctant of accepting high offers.
Base export transaction prices forcommercial-grade, boron-containing plate were at $530-535per tonne fob for Octobershipment, unchanged from MetalBulletin sister title Steel Firstsassessment the previous Friday.
Base export offer prices for thesame product were alsounchanged week-on-week at
$540-555 per tonne fob forOctober shipment.
The export market has remainedstagnant over the past few days,with very few deals heardconcluded, sources told Steel First.
Weve got a lot more enquiriesfrom overseas buyers in recentdays, as some of them arereturning to work from holidays.But they are not likely to accept ouroffers in the short term as theyneed to observe the marketsituation first, a northern Chinesemill source said.
An export director for a majoreastern Chinese mill told Steel Firstthat his mill was focusing ondomestic sales at the moment.
Chinese plate export pricesunchanged amid market lull
MOSCOWBY NADIA POPOVA
Russian steelmakershave managed to pushthrough price rises of$3-24 on August-
produced hot and cold rolledsheet, citing higher export costsand a weak rouble.
Domestic flat steel prices in Russiahave been falling since May due towhat market participants said were
end-user financing problems.August-produced 4mm hot
rolled sheet was sold out at20,000-20,400 roubles ($607-619)per tonne cpt Moscow includingVAT, equivalent to 15,330-15,840roubles per tonne ex-works.
This was 1-4% higher than theprice of 19,600-19,800 roubles pertonne cpt Moscow at whichproducers sold their July production.
August-produced 1mm coldrolled sheet has changed handsat 22,100-22,500 roubles per
tonne cpt Moscow including VAT,equivalent to 17,100-17,620roubles exw.
This was 1-2% higher than theprice of 21,990-22,000 roubles pertonne cpt Moscow, including VAT,at which Russian producers soldtheir July-rolled material.
Export prices upCIS export flat steel prices haverisen for the past four weeks.
According to Metal Bulletin sistertitle Steel Firsts assessments, theCIS export price for hot rolled coil
(HRC) rose to $530-570 per tonnefob Black Sea, from $500-515 pertonne on July 15.
Prices for cold rolled coil (CRC) roseto $615-650 per tonne fob BlackSea, from $590-625 per tonne fobin the middle of last month.
Initial offers for August-produceddomestic flat steel showed a rise of
as much as 10% month-on-month, with the highest riseannounced by Severstal.
Russian steel mills have pushed through a rise after months of falls
MOSCOW
Ukrainian steel plateexport prices up $5-10
Ukrainian steel plateproducers areoffering theirSeptember-rolled
material to export markets at$540-550 per tonne fob Azov Sea/Black Sea, prices that are $5-10higher month-on-month.
The rise is motivated more bythe expectation of reneweddemand after the end of theIslamic holy month of Ramadan,rather than actual buyersinterest, market participants saidon Tuesday August 20.
Metinvest has already soldsome September plate to Africa at$550 per tonne fob, according toone trader.
Slide endsFlat steel prices have been falling since May, but recovery is in sight
Steel buying increasedlast week in the UAE forrestocking purposes,after a very slow period
of business in the Islamic holymonth of Ramadan.
This does not mean there is highdemand, traders told MetalBulletin sister publication SteelFirst. They believe the burst ofbuying is temporary.
Most market participants agreedthat the market is waiting to seewhether price increases will bepermanent.
Hot rolled coil (HRC) was offeredto the UAE on Tuesday August 20 at$580-600 per tonne cfr, up fromlast weeks $570-600 per tonne cfr.
BURSA
Post-Ramadanrestocking boosts steelbuying in UAE
NEW YORK
Chinese wire rodimports to USA doublein first half of 2013
US wire rod imports
from China surged tomore than 244,000tonnes in the first
half of 2013, more than doublethe volume in the correspondingperiod last year.
China thus replaces Turkey asthe largest offshore supplier tothe USA, according to US CensusBureau data analysed by MetalBulletin sister publication AMM.
Wire rod mills, traders andbuyers spoke of a large influx ofChinese material earlier this year,and Chinese wire rod imports
spiked in May and June,triggering alarm among US millsthat imports would put pressureon domestic margins.
Census Bureau data analysed byAMM shows that US imports ofChinese wire rod in the first half ofthis year exceeded Chinasfull-year total for last year of219,271 tonnes.
We are nervous about so manyimports coming in and what it willmean for business, a mill sourcesaid. Our margins are getting
eroded because of the Chinese. Atthis point, were helpless.
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Iron and steel
World news
14| Metal Bulletin | Monday 26 August 2013
AsiaIndias public sector firm NationalAluminium Company Limited(NALCO) reported a drop in net profitfor the quarter ended June 30, 2013,
on low international aluminiumprices. The companys net profitstood at Rs 160 crore ($25.50 million)during the quarter, down from$36.13 million recorded last year.Alumina production in the quarterreached 480,000 tonnes,compared with 470,000 tonnesduring the comparable quarter ofthe previous fiscal year, thecompany said. Alumina salesduring the quarter were 280,000tonnes, against 250,000 tonnes inthe same period last year. Metalsales were 85,000 tonnes, against
100,000 tonnes in the same periodlast year. Bauxite productionincreased to 1.46 million tonnes,compared to 1.14 million tonnes inthe corresponding quarter last year.
Steel consumption in India rose byjust 0.2% in the first four monthsof the countrys fiscal year, toJuly 31, due to low offtake by thedomestic construction andautomotive sectors. Consumptionrose to 24.14 million tonnes inApril-July, against 24.08 million
tonnes in the correspondingperiod last year, according to areport published by the joint plantcommittee (JPC) of Indias steelministry. Crude steel output was upby 3.1% to 26.12 million tonnes,compared with 25.34 milliontonnes in the same period lastyear. The countrys main steelproducers such as Tata Steel,Steel Authority of India (Sail),Rashtriya Ispat Nigam (RINL) JSPL,JSW Steel and Essar Steel contributed 14.12 million tonnes,while other steel producerscontributed 14.97 million tonnesduring the period.
Rumours about a steel output cut innorthern Chinas Tangshan cityhave re-emerged following localmedia reports about a timetable forcapacity cuts in Hebei province,where it is located. A total of 60million tpy of steel capacity will bephased out in Hebei by the endof 2017 and another 26 million tpyby 2020, according to local mediareports on Tuesday August 20
Glencore Xstrata iron ore sales up 54% in H1 2013Global mining and trading group Glencore Xstrata saw its iron ore salesvolumes jump by 54% year-on-year to 12.8 million tonnes in the first
half of 2013, it said on Tuesday August 20. The company sold 8.3 milliontonnes of iron ore in January-June last year. Glencore Xstrata reported aloss of $5 million in adjusted earnings before interest, taxes,depreciation and amortisation (Ebitda) for its iron ore business a slightimprovement year-on-year from a loss of $8 million in the first halfof 2012. Weaker spot prices have affected earnings from iron ore acrossthe market. Metal Bulletins iron ore index for 62% Fe material averaged$137.70 per tonne cfr Qingdao in the first half of this year, compared with$141.10 per tonne cfr in the corresponding period in the previous year.
regarding upcoming guidelines tocontrol air pollution in the province.However, the reports had little
impact on the spot steel market asthere was no officialannouncement and no details havebeen confirmed yet, according tomarket sources. If this is true, Imhappy that the government isgetting serious about pollutioncontrol and capacity control of thesteel industry.
CISThe Russian Federal CustomsService has returned its regime ofchecks on Ukrainian cargoes backto normal, the countrysstate-run news agency reportedon Tuesday August 20. No officialstatement to this effect was issuedby the customs service, however.The reversion followed almost aweek of tighter, time-consumingborder control procedures affectingall goods from Ukraine. As a resultof the tighter checks, Russianbuyers put on hold their new offersfrom Ukrainian steelmakersMetinvest and ArcelorMittal
Krivyi Rih, market participants toldMetal Bulletin sister publicationSteel First on August 19.
EuropeSteelmaking group ThyssenKruppwill close down its electro-galvanized sheet plant in Neuwied,Germany, as part of a plan to returnto profitability, the company saidon Tuesday August 20. In view ofthe difficult situation in the steelmarket, particularly with regard tosales of auto sheet, savings at theThyssenKrupp site in Neuwied areunavoidable, the Essen-basedproducer said. Production at theNeuwied plant, which is part oftinplate subsidiary ThyssenKruppRasselstein, will be closed downstep-by-step, beginning with theclosure of one of the galvanizinglines (EBA 6) by September 30 thisyear. The other galvanizing line,FBA 11, has already beendiscontinued. Neuwieds coldrolling mill is planned for closureon December 31, while the picklingunit will continue operations untilSeptember 2015.
Latin AmericaTernium, Tenaris and Tecpetrolhave entered into a memorandumof understanding to jointly buildand operate a natural gas-fired
combined cycle electric powerplant in Nuevo Len state, in thenorth of Mexico. Expected to costabout $1 billion, the plant wouldsupply energy to both Ternium andTenaris, which have steelmakingoperations in Mexico, thecompanies said on MondayAugust 19. The joint venture, calledTechgen, would be mainlycontrolled by Ternium, with a 48%stake, with Tecpetrol holding 30%and Tenaris the remaining 22%.With a power capacity of between850 and 900 megawatts, Techgen
is expected to be operational in thefourth quarter of 2016, with theinvestment partially financedwith debt, the companies said.
Altos Hornos de Mxico (Ahmsa)hopes that Mexicos plannedenergy reforms will allowsteelmakers to get into the shalegas sector and to benefit fromhigher local steel content inpipeline projects. The energyproposal, presented earlier thismonth by the countrys president,
should resolve problems thatrepresent a constraint for thegrowth of the Mexican steelindustry, the integratedsteelmakers spokesman, FranciscoOrdua, told Metal Bulletin sistertitle Steel First recently. We believethat the proposal submitted bypresident Enrique Pea Nieto [has]a good balance between what ispossible and what is desirable,Ordua said. The reforms shouldalso focus on reducing energyprices for the industrial sector andon solving the energy supplyshortages that have affected theMexican steel industry.
Brazils flat steel and iron oreproducer Usiminas has once againdenied that it is interested inacquiring a stake in local minerMMX. At first, no, cfo RonaldSeckelmann said on WednesdayAugust 21 when asked byjournalists whether the steelmakerwas a possible suitor for the ironore producer. MMX interests [us]as a port operator, he said.IM
AGE:G
LENCOREXSTRATA
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15/24
Daily metal and steel
London forwardLME settlement prices. All prices per tonne, unless otherwise stated, in LME warehouse, EU duty, if any paid, for buyers account.
Year ago Aug 22 Aug 16 Aug 19 Aug 20 Aug 21 Aug 22Aluminium High Grade $1828.00-1829.00 LME Cash official 1876.00-1876.50 1872.00-1872.50 1848.00-1849.00 1852.00-1852.50 1857.00-1857.50 unofficia l 1886.50-1887.50 1874.00-1876.00 1865.50-1867.50 1841.00-1843.00 1834.00-1835.001868.50-1869.50 LME 3 months official 1925.00-1926.00 1930.50-1931.50 1905.00-1905.50 1901.50-1902.00 1904.00-1904.50 unofficial 1933.00-1934.00 1923.00-1925.00 1915.00-1917.00 1890.00-1892.00 1881.00-1882.00 LME Tapo Notional Average Price(NAP) for Aug 2013 1801.29 1806.77 1809.79 1812.63 1815.44 LME stocks (tonnes) 5,443,050 5,447,425 5,440,275 5,431,600 5,428,175Aluminium Alloy (A380.1/DIN226/D12S) $1745.00-1750.00 LME Cash official 1775.00-1785.00 1770.00-1780.00 1770.00-1780.00 1760.00-1770.00 1760.00-1765.00 unofficial 1775.50-1780.50 1771.00-1781.00 1765.00-1775.00 1760.00-1770.00 1760.00-1770.001765.00-1770.00 LME 3 months official 1805.00-1810.00 1800.00-1810.00 1800.00-1810.00 1790.00-1800.00 1790.00-1800.00
unofficial 1805.00-1810.00 1800.00-1810.00 1795.00-1805.00 1790.00-1800.00 1790.00-1800.00 LME stocks (tonnes) 67,700 67,540 67,400 67,260 67,140N. American Special Aluminium Alloy1803.00-1803.50 LME Cash official 1845.00-1845.50 1853.00-1854.00 1826.00-1827.00 1805.00-1810.00 1820.00-1821.00 unofficia l 1855.00-1860.00 1840.00-1850.00 1820.00-1830.00 1805.00-1815.00 1810.00-1820.001852.00-1855.00 LME 3 months official 1880.00-1885.00 1875.00-1876.00 1850.00-1860.00 1835.00-1845.00 1850.00-1855.00 unofficial 1885.00-1890.00 1870.00-1880.00 1850.00-1860.00 1835.00-1845.00 1840.00-1850.00 LME Stocks (tonnes) 111,840 111,800 111,740 111,680 111,680Copper Grade A$7571.00-7571.50 LME Cash official 7335.00-7335.50 7285.00-7285.50 7265.00-7265.50 7235.50-7236.00 7340.00-7340.50 unofficial 7361.50-737 1.50 7294.00-7299.00 7287.50-7289.50 7222.50-7224.50 7275.00-7277.007575.00-7577.00 LME 3 months official 7374.00-7374.50 7304.50-7305.50 7299.50-7300.00 7270.00-7271.00 7367.00-7368.00 unofficial 7390.00-7400.00 7325.00-7330.00 7318.00-7320.00 7253.00-7255.00 7303.00-7305.00 LME Tapo Notional Average Price(NAP) for Aug 2013 7129.79 7141.77 7150.61 7156.30 7167.81 LME stocks (tonnes) 577,450 572,525 566,925 565,500 564,225Lead $1904.50-1905.00 LME Cash official 2223.50-2224.50 2237.00-2238.00 2229.00-2229.50 2219.00-2220.00 2227.00-2227.50 unofficia l 2226.00-2231.00 2231.50-2233.50 2238.00-2240.00 2207.00-2212.00 2207.00-2209.001915.00-1916.00 LME 3 months official 2230.00-2230.50 2242.00-2242.50 2233.00-2234.00 2228.00-2228.50 2238.00-2240.00 unofficial 2232.00-2237.00 2238.00-2240.00 2240.00-2242.00 2218.00-2223.00 2217.00-2219.00 LME stocks (tonnes) 189,000 186,025 189,600 186,625 187,850Nickel$15750-15755 LME Cash official 14680-14685 14650-14655 14560-14565 14445-14450 14430-14435 unofficial 14660-14680 14725-14750 14700-14725 14425-14450 14365-1437515850-15855 LME 3 months official 14790-14800 14750-14775 14650-14655 14550-14600 14530-14540 unofficial 14730-14750 14800-14825 14775-14800 14500-14525 14435-14445 LME stocks (tonnes) 205,758 208,578 209,346 209,868 210,060Tin $18820.00-18825.00 LME Cash official 21850.00-21875.00 21825.00-21850.00 21975.00-22025.00 22000.00-22025.00 21995.00-22000.00 unofficia l 21770.00-21820.00 21835.00-21885.00 21795.00-21845.00 21870.00-21895.00 21965.00-22040.0018830.00-18840.00 LME 3 months official 21850.00-21900.00 21825.00-21850.00 21900.00-21925.00 21925.00-21930.00 21925.00-21930.00 unofficial 21800.00-21850.00 21850.00-21900.00 21775.00-21825.00 21825.00-21850.00 21925.00-22000.00 LME stocks (tonnes) 14,055 13,935 13,965 13,960 15,305Zinc Special High Grade $1803.50-1804.00 LME Cash official 1949.50-1950.00 1954.50-1955.50 1939.00-1940.00 1936.00-1936.50 1941.00-1942.00 unofficial 1952.00-1953.00 1950.00-1953.00 1946.00-1948.00 1929.00-1931.00 1924.00-1925.001824.50-1825.00 LME 3 months official 1987.00-1987.50 1994.00-1994.50 1982.00-1983.00 1976.50-1977.00 1984.00-1985.00 unofficial 1990.00-1991.00 1990.00-1993.00 1987.00-1989.00 1970.00-1972.00 1963.00-1964.00 LME stocks (tonnes) 1,034,700 1,032,175 1,028,625 1,026,100 1,023,575
Cobalt min 99.3%28000.00-28500.00 LME Cash official 26900.00-27900.00 27400.00-28400.00 27000.00-27100.00 26750.00-27250.00 26700.00-27010.00 LME 3 months official 27000.00-28000.00 27400.00-28400.00 27000.00-27500.00 27000.00-28000.00 26700.00-28200.00 LME stocks (tonnes) 517 517 517 517 522Molybdenum $24000.00-24500.00 LME Cash official 19600.00-20600.00 19600.00-20600.00 19600.00-20600.00 19600.00-20600.00 19600.00-20600.0024000.00-24500.00 LME 3 months official 19600.00-20600.00 19600.00-20600.00 19600.00-20600.00 19600.00-20600.00 19600.00-20600.00 LME stocks (tonnes) 204 204 204 204 216Steel Billet340.00-345.00 LME Cash Official 140.00-150.00 140.00-150.00 140.00-150.00 140.00-150.00 140.00-150.00 unofficial 141.00-151.00 140.00-150.00 140.00-150.00 140.00-150.00 140.00-150.00355.00-365.00 LME 3 months official 160.00-170.00 160.00-170.00 160.00-170.00 160.00-170.00 160.00-170.00 unofficial 160.00-170.00 160.00-170.00 160.00-170.00 160.00-170.00 160.00-170.00 LME stocks (tonnes) 38,935 38,935 38,935 38,935 38,935Gold $/troy oz1640.50 London morning 1360.75 1375.25 1365.75 1360.00 1370.501642.00 London af ternoon 1369.25 1365.00 1372.50 1363.00 1375.501642.00 Handy/Harman 1369.25 1365.00 1372.50 1363.00 1375.50Silver per troy oz1857.74/2933.00 London Spot pence/cents 1459.25/2283.00 1484.35/2323.00 1460.78/2287.00 1464.32/2294.00 1481.22/2307.00
2942.00 Handy/Harman cents 2323.50 2314.00 2320.00 2299.00 2311.50Palladium $/troy oz632.00 London morning 754.00 756.00 746.00 743.00 750.00628.00 London afternoon 762.00 751.00 748.00 749.00 750.00Platinum $/troy oz1525.00 London morning 1518.00 1515.00 1505.00 1511.00 1519.001518.00 London afternoon 1524.00 1513.00 1512.00 1518.00 1523.00
DubaiPlease note this price is no longer quotedRebar $
Kuala Lumpur tin marketYear ago Aug 22 Aug 16 Aug 19 Aug 20 Aug 21 Aug 22Tin $/tonne18,900 21,700 21,800 21,800 21,800 21,770
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LME & SHFE stocks (tonnes effective 20 August)Note:deliveries in and out for the week Aug 14 - 20
Aluminium Delivered in Delivered out Total
Ingots T Bars Sows Ingots T Bars Sows Ingots T Bars SowsAntwerp nil nil nil nil nil nil 26,850 20,850 nilHamburg nil nil nil nil nil nil 23,425 20,075 nilGenoa nil nil nil nil nil nil 12,000 nil nilLeghorn nil nil nil nil nil nil 375 nil 400Trieste nil nil nil 100 275 nil 47,850 48,600 5,325Busan nil nil nil nil nil nil 17,025 5,300 nilGwangyang nil nil nil nil nil nil 24,050 22,400 nilIncheon nil nil nil nil nil nil 8,550 2,250 100
Johor nil nil nil nil nil nil 26,550 nil 16,250Port Klang nil nil nil nil nil nil 15,300 nil 1,000Rotterdam nil nil nil 25 nil nil 266,725 347,150 44,200
Vlissingen 10,175 nil nil 1,800 12,500 nil 709,100 1,288,900 71,775Singapore nil nil nil 2,675 nil nil 298,000 95,850 111,075Bilbao nil nil nil 125 nil nil 18,350 13,750 nilGothenburg nil nil nil nil nil nil nil nil nilHelsingborg nil nil nil nil nil nil nil 12,400 25Hull nil nil nil nil nil nil 3,025 875 nilTyne & Wear nil nil nil nil nil nil 8,750 2,125 1,050Liverpool nil nil nil nil nil 200 nil nil 14,025Baltimore nil nil nil 25 3,575 nil 26,750 58,750 150,250Chicago nil nil nil nil 550 nil 50 9,500 4,000Detroit 975 3,750 6,175 nil 6,225 4,500 60,925 801,975 594,925Long Beach nil nil nil nil nil nil nil nil nilLos Angeles nil nil nil nil nil nil 75 4,375 1,950Mobile nil nil nil 350 nil nil 64,525 nil nilNew Orleans nil nil nil nil nil nil 300 nil 200St Louis nil nil nil nil nil nil nil nil nilToledo nil nil nil nil nil nil 475 3,275 6,300Total 11,150 3,750 6,175 5,100 23,125 4,700 1,659,025 2,758,400 1,022,850
Al.Alloy (large sows) Delivered in Delivered out Total
A380.1 226/DIN D12S/J1S A380.1 226/DIN D12S/J1S A380.1 226/DIN D12S/JSAntwerp nil nil nil nil nil nil 200 1,580 nilRotterdam nil nil nil nil 20 nil nil 980 nil
Vlissingen nil nil nil nil nil nil nil 80 nilSingapore nil nil nil nil nil nil 400 nil nilTotal nil nil nil nil 20 nil 600 2,640 nilAlum.alloy Delivered in Delivered out Total
A380.1 226/DIN AD12.1 A380.1 226/DIN AD12.1 A380.1 226/DIN AD12.1
Antwerp nil nil nil nil nil nil 1,420 15,240 1,660Hamburg nil nil nil nil nil nil 20 nil nilGenoa nil nil nil nil nil nil 2,240 nil nilTrieste nil nil nil nil nil nil 7,060 nil nilBusan nil nil nil nil nil nil nil nil 120Gwangyang nil nil nil nil nil nil nil nil 40Rotterdam nil nil nil nil 720 nil 320 9,100 nil
Vlissingen nil nil nil nil nil nil 320 6,840 640Johor nil nil nil nil nil nil nil 880 nilPort Klang nil nil nil nil nil nil nil 60 nilSingapore nil nil nil nil nil nil 680 15,380 nilBilbao nil nil nil nil nil nil 1,980 nil nilLiverpool nil nil nil nil nil nil 160 nil nilTotal nil nil nil nil 720 nil 14,200 47,500 2,460Nickel Delivered in Delivered out Total
Cats Pellets Briqs Cats Pellets Briqs Cats Pellets BriqsBusan 42 nil nil nil nil nil 318 nil nilIncheon nil nil nil nil nil nil 132 nil nilJohor nil 384 nil nil nil nil nil nil 6Rotterdam nil nil nil nil nil nil nil 384 342
Vlissingen nil nil nil nil nil nil nil nil 300Singapore nil nil nil nil nil nil 6 nil nilChicago nil nil nil nil nil nil nil 1,008 nilTotal 42 384 nil nil nil nil 456 1,392 648
Nickel full plate cats Delivered Delivered Total
In Out
Antwerp 30 240 17,832Hamburg nil nil 348Genoa nil nil 24Busan nil nil 6,192Gwangyang nil nil 516Johor nil nil 4,122Rotterdam 3,132 306 75,030
Vlissingen nil 120 8,574Singapore nil nil 5,316Helsingborg nil nil 2,802Dubai nil 198 4,116
Hull nil nil 3,384Tyne & Wear nil nil nilLiverpool nil nil 3,408Detroit nil nil 402Total 3,162 864 132,066Nickel Bagged Briquettes Delivered Delivered Total
In Out
Busan nil nil 432Johor 570 nil 70,668
Vlissingen nil nil 300Singapore nil nil 1,458Dubai 240 nil 1,836Total 810 nil 74,694Copper Delivered Delivered Total
In Out
cats cats catsAntwerp nil nil 127,075Leghorn nil nil 25
Trieste nil nil 25Busan nil 5,850 11,950Gwangyang nil 625 4,475Incheon nil nil 25Johor nil 15,450 201,000Port Klang nil nil nilRotterdam 1,550 900 5,225
Vlissingen nil nil 8,025Singapore nil nil 7,275Barcelona nil nil nilBilbao nil nil 25Hull nil nil 800Liverpool nil nil nilChicago nil 225 5,300Mobile nil nil 50New Orleans 4,025 2,500 187,000St Louis nil 1,550 8,650Total 5,575 27,100 566,925
Lead Delivered Delivered Total
In Out
Antwerp 5,525 6,950 21,425Hamburg nil nil 400Genoa nil nil 4,800Leghorn nil nil 200Trieste nil nil 50Johor 975 nil 40,900Port Klang nil 400 34,125Rotterdam nil nil 150
Vlissingen nil 2,100 50,975Singapore nil nil 300Barcelona nil nil 5,050
Bilbao nil nil 7,225Baltimore nil nil nilDetroit nil 2,475 23,025Long Beach nil nil 300Los Angeles nil nil 675Mobile nil nil nilNew Orleans nil nil nilTotal 6,500 11,925 189,600Zinc Delivered Delivered Total
In Out
Antwerp nil 1,050 190,175Trieste nil nil nilJohor nil nil 5,700Port Klang nil nil 21,900Rotterdam nil nil 8,575
Vlissingen nil nil 54,950Singapore nil nil 4,400Bilbao nil nil 600Hull nil nil 3,925
Liverpool nil nil 75Baltimore nil 225 5,925Chicago nil nil nilDetroit nil nil 112,675New Orleans nil 12,625 619,725Total nil 13,900 1,028,625Cobalt Delivered Delivered Total
In Out
Antwerp nil nil 41Rotterdam 5 nil 368Singapore nil nil 62Baltimore nil nil 46Total 5 nil 517Roasted Molybdenum Concentrate RMC Powder Delivered Delivered Total
In Out
Rotterdam nil 12 204Total nil 12 204
Tin Delivered Delivered Total
In Out
Busan nil nil 20Gwangyang nil nil 50Rotterdam nil nil 5Johor 155 nil 7,265Port Klang 100 300 4,605Singapore nil 45 1,910Baltimore nil nil 110Total 255 345 13,965NASAAC ingots Delivered Delivered Total
In Out
Baltimore nil nil 1,880Chicago nil nil 280Detroit 80 nil 19,340Long Beach nil nil nilMobile nil nil nilNew Orleans nil nil 40Total 80 nil 21,540NASAAC T-Bars Delivered Delivered Total
In Out
Baltimore nil nil 820Detroit nil nil 3,840Total nil nil 4,660NASAA large sows Delivered Delivered Total
Baltimore nil nil nilChicago nil nil nilDetroit nil nil 2,440Total nil nil 2,440NASAA small sows
Delivered Delivered Total In Out
Chicago nil 240 15,940Detroi t 40 n il 67,140Mobile nil nil nilNew Orleans nil nil 20Total 40 240 83,100Steel Billet Delivered in Delivered out TotalAntwerp nil nil 21,255Incheon nil nil 65Johor nil nil 325Chicago nil nil 195Detroit nil nil 15,990New Orleans nil 65 1,105Total nil 65 38,935Shanghai Futures Exchange Deliverable
Aluminium 317,815Copper 156,110
Zinc 261,559
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Exchange Rates & New York Futures
Non-Ferrous Primary Metals
Precious Metals
Base Metals
Aug 21 Aug 23IridiumMB free market:min. 99.9%, $/troy oz in warehouse 775-825* 775-825*Johnson Matthey base price:(unfab) $/troy oz (08.00 hrs) 825 800Engelhard base price:$/troy oz 800 800PalladiumWorld prices:see Daily MetalEuropean free market:min. 99.9%,$/troy ozin warehouse 745-750* 750-755*Engelhard base price:$/troy oz 758 756Johnson Matthey base price:(unfab) $/troy oz (08.00 hrs) 748 758
Aug 21 Aug 23PlatinumWorld prices:see Daily MetalEuropean free market:min. 99.9%, $/troy ozin warehouse 1,510-1,515* 1,540-1,545*Engelhard base price:$/troy oz 1,516 1,523Johnson Matthey base price:(unfab)$/troy oz (08.00 hrs) 1,517 1,545RhodiumEuropean free market:min. 99.9%, $/troy ozin warehouse 975-1,025* 975-1,025*Engelhard base price:$/troy oz 1,020 1,020Johnson Matthey base price:(unfab)$/troy oz (08.00 hrs) 1,010 1,010RutheniumEuropean free market:min. 99.9%, $/troy ozin warehouse 60-75* 60-75*Engelhard base price:$/troy oz 80 80
Johnson Matthey base price:(unfab) $/troy oz (08.00 hrs) 75 73
Exchange Rates Aug 16 Aug 19 Aug 20 Aug 21 Aug 22LME Settlement Conversion Rates$/ 1.5629 1.5648 1.5665 1.5692 1.5583$/Yen 97.55 97.98 97.13 97.49 98.64$/ 1.3342 1.3354 1.3382 1.3392 1.3312Closing Rates, Midpoint$/ 1.5614 1.5671 1.5679 1.5689 1.5573$/Yen 97.58 97.98 97.14 97.69 98.61$/ 1.3333 1.3351 1.3427 1.3377 1.3345/ 1.1711 1.1738 1.1677 1.1728 1.1670
Standard Bank pricesStandard Banks rand fixing prices per tonne for London Metal Exchange trade
Aug 16 Aug 19 Aug 20 Aug 21 Aug 22Copper R73,281.65 R74,093.54 R73,708.50 R73,915.74 R75,937.47Aluminium R18,746.24 R19,043.33 R18,758.11 R18,923.29 R19,215.84Lead R22,222.76 R22,760.46 R22,618.28 R22,677.30 R23,043.49Zinc R19,480.50 R19,887.44 R19,681.30 R19,781.35 R20,089.99Nickel R146,703.15 R149,041.35 R147,761.93 R147,606.75 R149,330.08Tin R218,531.25 R222,214.50 R223,443.63 R224,985.38 R227,590.00
New York futuresYear ago Aug 21 Aug 15 Aug 16 Aug 19 Aug 20 Aug 21(Comex) Copper high grade cents/lb346.00 Aug 13 333.80 336.45 333.65 333.95 331.15148,489 Open Interest 161,377 160,440 159,176 160,062 160,38750,249 Stocks (short tons) 54,243 51,508 49,382 46,832 44,006(Comex) Gold $/troy oz1637.40 Aug 13 1361.60 1371.70 1366.20 1373.10 1370.60405,295 Open Interest 391,719 380,782 382,810 385,410 381,78110,844,138 Stocks (troy oz) 6,998,990 6,998,991 6,981,055 6,981,055 6,982,155(Nymex) Palladium $/troy oz628.15 Nymex Sett AUG 755.95 762.15 752.00 748.75 746.005,465 S tocks (troy oz) 562,967 562,866 562,265 562,265 561,662(Nymex) Platinum $/troy oz1525.20 Nymex Sett AUG 1531.40 1526.70 1508.10 1524.60 1518.20
3,827 S tocks (troy oz) 229,223 229,172 229,172 229,172 228,772(Comex) Silver cents/troy oz2954.90 Aug 13 2292.90 2331.70 2316.10 2306.60 2295.80126,869 Open Interest 133,727 132,284 133,784 131,076 131,397
Shanghai futuresYear ago Aug 22 Aug 16 Aug 19 Aug 20 Aug 21 Aug 22Aluminium yuan/tonne (August delivery)15,300 14,435 14,460 14,370 14,405 14,415Copper yuan/tonne (August delivery)55,620 53,380 53,070 52,640 52,870 53,180Zinc yuan/tonne (August delivery)14,515 15,120 15,130 14,990 15,040 15,075
Aug 21 Aug 23AluminiumLME prices:see Daily MetalLME duty-paid Premium Indicator/HG Cash 245-265* 245-265*HG duty-paid three months 245-265* 245-265*Cif Japan:99.7% duty unpaid premium indicator quarterly 250-250* 250-250*CIS-origin:indicators in warehouse Europe: A7e premium 180-215* 180-215*Extrusion billet premium6063, EC duty paid,in warehouse Rotterdam ($/tonne) 485-500* 485-500*US free market:P1020 US midwestpremium indicator ($/lb) 0.114-0.119* 0.110-0.113*MB Chinese free market,Metallurgical grade, delivered duty paid RMB/tonne 2,400-2,600* 2,400-2,600*AluminaIndex fob Australia 320.50Copper & BrassLME:see Daily MetalProducer premium(Codelco): contrac t2013 Grade A cathode (average) 85-85 85-85MB free market US:High-grade cathodepremium indicator, $/tonne 132.00-176.00* 132.00-176.00*
Chinese Grade 1: 130-140* 130-140*Germany:(VDM) Electro, /tonne wirebar (DEL): 5,481.50-5,506.50 5,481.50-5,506.50cathodes: 5,410.00-5,510.00 5,410.00-5,510.00South Africa:Palabora copper rod 7.90mm, Rand/tonne 82,377.95 82,377.95TinKuala Lumpur and LME prices:see Daily MetalMB European free marketSpot premium 99.9% $ per tonne 450-750* 450-750*Spot premium 99.85% $/tonne 350-450* 350-450*MB US free market:Grade A tin premium $/lb 0.24-0.29* 0.24-0.29
*
Aug 21 Aug 23NickelLME prices:see Daily MetalEurope:$/tonne in warehouse Rotterdamuncut cathodes premium indicator 5.00-70.00* 5.00-70.00*4x4 cathodes premium indicator 175.00-200.00* 175.00-200.00*briquettes premium indicator 25.00-100.00* 25.00-100.00*US:melting premium indicator $/lb 0.15-0.25* 0.15-0.25*plating premium indicator $/lb 0.50-0.60* 0.50-0.60*LeadLME prices:see Daily MetalGermany:(VDM) virgin soft, /tonne 1,830.00-1,870.00 1,830.00-1,870.00MB US:High Grade ingot premium indicator, $/lb 0.1200-0.1400* 0.1200-0.1400*MB European free market:in warehouse Rotterdam /tonne 50-100* 50-100*European Automotive battery premium free market (Eurobat)in warehouse Rotterdam /tonneSoft lead (average) 160.86* 160.86*Ca/Ca grid lead (average) 430.42* 430.42*Connector lead (average) 431.75* 431.75*European Industrial battery
premium free market (Eurobat)in warehouse Rotterdam /tonneStand-by refined or soft lead (average) 185.89* 185.89*Traction refined or soft lead (average) 143.10* 143.10*
Lead concentrates:70/80% Pb $/tonne T/C, cif. 200-250* 200-250*ZincLME prices:see Daily MetalGermany:(VDM) virgin, /tonne 1,600-1,600 1,600-1,600UK:Special high grade, delivered monthly average price /tonne 1,369.00-1,369.00* 1,369.00-1,369.00*MB US:Special high grade, $/lb 0.0900-0.1000* 0.0900-0.1000*MB EU:Special high grade, fot Rotterdam, $/tonne 135.00-145.00* 135.00-145.00*Zinc Concentrates:cif main port $/tonne 250-270* 250-270*
For an explanation of these premia see http://www.eurobat.org/statistics
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18/2418| Metal Bulletin | Monday 26 August 2013
MB Daily Base Metal PremiumsAll prices $/tonne unless otherwise stated, in warehouse price, duty unpaid, spot business, immediate delivery*MB copyright
Aug 16 Aug 19 Aug 20 Aug 21 Aug 22 Low - High Premium Low - High Premium Low - High Premium Low - High Premium Low - High PremiumCopper - Grade A copper cathode to meet LME specifications: BS EN 1978:1998 (Cu-CATH-1)MB Copper Premium Rotterdam 100-140* 120.00* 100-140* 120.00* 100-140* 120.00* 100-140* 122.50* 100-140* 127.50*MB Copper Premium Hamburg 100-130* 110.00* 100-130* 110.00* 100-130* 110.00* 100-140* 112.50* 100-140* 116.67*MB Copper Premium Leghorn 100-120* 107.50* 100-120* 107.50* 100-120* 107.50* 100-130* 110.00* 100-130* 110.00*MB Copper Premium New Orleans 70-120* 103.33* 70-120* 103.33* 70-120* 103.33* 70-120* 103.33* 70-120* 103.33*MB Copper Premium Chicago 20-50* 38.00* 20-50* 38.00* 20-50* 38.00* 20-50* 38.00* 20-50* 38.00*MB Copper Premium St Louis 70-120* 92.50* 70-120* 92.50* 70-120* 92.50* 70-120* 92.50* 70-120* 92.50*MB Copper Premium Gwangyang 150-155* 152.50* 182-225* 209.00* 182-225* 209.00* 182-225* 209.00* 182-225* 209.00*
MB Copper Premium Busan 150-155* 152.50* 182-225* 209.00* 182-225* 209.00* 182-225* 209.00* 182-225* 209.00*MB Copper Premium Singapore 110-120* 115.00* 110-120* 115.00* 110-120* 115.00* 110-120* 115.00* 110-120* 115.00*MB Copper Premium Shanghai 185-215* 201.00* 175-200* 191.25* 175-200* 191.25* 175-200* 191.25* 160-190* 178.75*MB Copper Premium Johor 110-120* 115.00* 110-120* 115.00* 110-120* 115