Stainless Steel News and Nickel Prices, LME Nickel Price, Stainless Steel News – Molybdenum – World Metal Pricing and Market Conditions

  Mining industry will feel pinch ‘big time’ in Q3

• While the high Canadian dollar has caused chaos in the manufacturing and forestry sectors, there has been little to no impact in the mining industry. However, that is expected to finally change. – more here

  The growing demand for molybdenum can be satisfied with the new industries

• It is expected that the growth of world demand for molybdenum in the coming years will be 4.5%, mainly due to China and the CIS countries. As Terry Adams from Adams Metals Ltd., at the annual general meeting of International Molybdenum Associations, held in Denver (USA), to meet this demand should increase production and the opening of new businesses since 2011 – translated article here

  Paswan demands Chiria ore

• Steel Authority of India Ltd (SAIL) should be given rights for one billion tonnes of iron ore from Chiria mines in Jharkhand immediately, said Union minister for steel, Ram Vilas Paswan. – more here

  Escalating freight cost increase tensions for iron ore talks

• China Business News cited Mr Luo Bingsheng deputy director of China Iron & Steel Association as saying surging freight cost could result in a lengthy tussle between Chinese steel mills and iron ore producers for the upcoming round of iron ore price negotiations. – more here

  US steel HRC prices forecast to hit USD 600 per short tons in Q4

• Platts citing Mr Mike Locker president of New York based Locker Associates, who spoke at the Institute of Scrap Recycling Industries’ Ferrous Scrap Roundtable Commodities Forum in Chicago, reported that US hot rolled coil prices are forecast to hit USD 600 per short tonnes ex works. – more here

  China Pig Nickel Pricing for 2007, thus far…

• One of the signs of a possible recovery in the Chinese stainless steel industry would be an increase in the selling price of pig nickel. With LME nickel prices once again well over the thought to be break even point of $12/lb, the stage has been set for an increase in low grade laterite ore…. but only if the demand has returned. Here is the history of a few grades of “pig-nickel prices” during the current year.
• The lowest grade we monitor is laterite ore from Indonesia with a grade of .9 to 1.1% nickel, and 30% H2O. In December of 2006, the price of this ore was selling for $48-$50/MT. The price for this grade rose throughout the spring, and by June, was selling for $98 to$105/MT. The price then collapsed and for the last 3 months has been selling for $48-$55/MT.
• Another grade we monitor is laterite ore from the Philippines, containing 1.7 to 1.9% nickel and 35% H2O. In December of 2006, this grade of ore was selling for $67-$70/MT. By June of 2007, the price had risen to $208-$220/MT. In July, the price collapsed and has been selling for $110-$120/MT since August.
• As of last week, these prices have recorded no change. Besides analyst statements, the only metal reports we have been able to find that are reporting a rebound in the China steel and stainless steel industry this month is Japan’s ‘The Tex Report’. Here (9/3) and here (9/11)  

  China Minmetals buys into SA chrome

• China Minmetals Development Company, the Shanghai-listed arm of Chinese state-owned trading firm the China Minmetals Group, is to buy the exploration rights to a South African ferrochrome deposit for R45.7-million. – more here

  BHP news

• NORMALLY a metal price-slump would be enough to take the wind out of the sails of any mining operation. – more here
• BHP Billiton’s chief executive, Chip Goodyear, is fond of pointing out that the ability to move dirt – and lots of it – is one of his company’s key competitive advantages. – more here
• BHP Billiton is expected to announce this week that it has uncovered what is potentially the largest gold resources in the world at its Olympic Dam mine in South Australia. – more here

  Steel: Building on Asia’s strengths

• Increasing demand for stainless steel has been witnessed from users across construction, transport and several industrial sectors, and steel use is set to grow by leaps and bounds in India and China, though the latter’s per capita consumption of the metal is far higher than the former’s, says N. C. MATHUR. – more here

  CVRD ban shouldn’t affect Brazil pig iron exports

• Brazil’s pig iron exports should not suffer as a result of mining giant CVRD’s plan to cut off iron ore supplies to producers whose operations are not fully legal, sector experts and players said. – more here

  China may work out more restrictions to curb steel export

• China may come up with more restrictions to curb steel exports, including imposing licenses to export companies, restricting steel projects in the processing sector, a senior official with the country’s top economic planner said recently. – more here

  Substitution of low-nickel stainless steel grades finds momentum

• Increased use of low-or no-nickel steels continues to erode the market share of nickel-bearing 300-series stainless grades, the workhorse of the industry, at a time when the collapse of world nickel prices to half what the alloying metal cost in May has disrupted the global stainless steel marketplace. – pdf here

  The ferro-nickel iron merchant sudden wealth myth is disillusioned

• (very difficult translation to read, but interesting story of boom to bust for one nickel importer) Only month time, the Zhejiang Jiasha County’s ferro-nickel iron producer increases suddenly from original 10 to 50. “The sudden and huge profits are the radical actuation factor.” However, when the Jiashan ferro-nickel iron merchant on a large scale enters, has even affected the world nickel price when the certain degree, actually encounters the nickel price large diving – more here  (without translation here)

  Global scrap trade in 2006 and H1 of 2007

• UK based Iron and Steel Statistics Bureau reported that International trade of ferrous scrap, which fell by 4% YoY in 2005 to 90 million tonnes, saw steady trade in 2006 and estimated only a very small fall of around 1% for 2006 in full. – more here

  CISA sees down turn in iron ore price in 2008 due to weak demand

• China Iron & Steel Association official gave a projection, in a recent steelmaking raw materials conference held in Yinchuan, that global iron ore supply and demand looks set to move towards better equilibrium next year and prices would therefore fall back. – more here

Comment – “If you haven’t heard, Chinese steel makers and the Big 3 producers of iron ore are currently in negotiations to establish iron ore contract prices for October thru December. Keep this in mind as you read “news” about steel making in China until negotiations are over.” 

  China shuts down 18.4 million tonne capacity in H1

• China’s National Development and Reform Commission announced that the China shut down 18.4 million tonnes of iron and steel production capacity in the H1 of 2007 to reduce energy consumption and greenhouse gas emissions. – more here

  India to import record Nickel this year

• It is reported that increasing consumption of stainless steel in the wake of India’s construction and economic boom may force the country to import more nickel this year. – more here

  Euroland: Purchasing managers more negative

• The FLASH PMIs published today fell more than expected and now signal that growth in Euroland is approaching trend. The composite PMI index fell from 57.4 to 54.5, which is the largest fall since August last year ? and the lowest level for two years. – more here

  Metals face negative sentiment

• Scorching prices of base metals are likely to cool down this week on low Chinese demand and the prevailing negative sentiment in the US economy despite the Fed rate cut. – more here

  Week in Review (different source used than for daily updates)

• It was a good week if you were a nickel producer, not so good for the stainless steel producer. Nickel trading opened Monday at $12.97/lb, rose to $13.27/lb, fell to $12.86/lb, and ended at $13.13/lb. On Tuesday, nickel opened at $13.09/lb, its low, and rose to $14.00/lb, the high and ending point for the day. Wednesday, trading opened at $14.11/lb, also its low for the day, rose to $15.60/lb, and closed at $15.28/lb. On Thursday, nickel opened at $15.24/lb, rose to $15.47/lb, fell to $14.74/lb, and ended at $14.79/lb. On Friday, the market opened at $14.76/lb, rose to $14.90/lb, fell to $14.46/lb, and ended the week of trading at $14.74/lb. For the week, nickel ended selling up by 13.6%, and since the beginning of the year, less than 1% lower.   

  U.S. November Surcharge Forecast

• Based on averages prices thus far this month, the estimated stainless steel surcharge for both 304 and 316 stainless steel will be higher for November, than those already established for October. This is subject to price averages of nickel, chromium, and molybdenum not dropping dramatically during the next week.

  Copyright/courtesy Credit Suisse

• Commodity prices rallied following the 50 bp cut in the US Fed funds rate. While the general market sentiment toward commodities has improved significantly, we believe the rally in base metals and energy prices might be more fragile than many market participants think. The FOMC cut rates in the USA to safeguard economic growth and limit the risk of recession in an environment of increased uncertainty. If the Fed believes that a 50 basis point rate cut is necessary to achieve this, there is the strong possibility that we might see some negative macroeconomics news for the USA in the weeks ahead……In light of the Fed rate cut, the current metal price rally comes as no surprise, as speculators are covering their short positions. Nevertheless, we believe that the speed of the current rally is unsustainable and that momentum will decline soon….In a nutshell, we think that the current rally is mainly a short-term reaction to the rate cut, and remains fragile and vulnerable to macro data from the USA, in particular. In this regard, volatility is likely to stay elevated. Nevertheless, investors should watch for price dips, since we expect a better entry opportunity during the fourth quarter, when the seasonal slump in demand comes to an end and China is expected to import more metals.

  National Mining Association Mining Week – pdf here

  TD Bank Weekly Commodity Price Report – pdf here

  ASA Material Market Digest – pdf here

  August Largo Letter – pdf here

  Metal Shipments, Inventories Still Dropping

• North America’s metals service centers report further declines in shipments and inventories for steel and aluminum during August, continuing a series of year-on-year and year-to-date decreases. – more here

  Stainless Steel Producers Slash Output Amid Sluggish Demand (headline from Nikkei Net – subscription article so unable advise content)

  Sukinda chromite mines in Orissa leading to poisoning

• SNS reported that Sukinda chromites mine in Orissa is becoming main threat to the lives of local people as over 0.275 million people in the are have suffering from some form of chromium poisoning because of the untreated water discharged by the mines into the Damasala river. Sukinda contains one of the largest open cast chromite mines in the world. – more here

  Copyright/courtesy The Indian Express 

• Trying their best to avoid fixation of iron-ore royalty on ad-valorem basis, the Federation of Indian Mineral Industries (Fimi) has proposed to continue with royalty on tonnage basis with a hike of 100% of the present rate. Royalty rates currently range between Rs 16-27 per tonne depending on the grade of iron-ore.