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

Daily Nickel/Stainless Wrap-up

Baltic Dry Index – plus 173 to 1,815. (chart)
Dollar graph in lower right corner of this page – (chart of dollar index) (live java chart)
Headlines & leaders – (Bloomberg) Nissan to Cut 20,000 Jobs, Forecasts $2.9 Billion Loss as Car Sales Slump // Asian Stocks Fall as Share Sales Fuel Funding Concerns; Suncorp Plunges // China’s Worst Drought in Five Decades May Persist Into March, Center Says // European Stocks Rise for Second Day; Shares of Hammerson, Barclays Advance // Europe Finance Chiefs Concerned as Spain, Italy, Greece Pay More to Borrow // General Motors, Chrysler May Be Placed in Bankruptcy to Protect U.S. Loans // U.S. Stocks Fluctuate as Insurers, Energy Companies Rise; Hartford Climbs // Australian Bushfire Death Toll Rises to 166 as Police Probe Possible Arson
The US Dollar continues to lose ground against the Euro, trading down 8/10 of 1%+. NYMEX crude rose earlier, but has returned to nearly flat territory. Gold and silver are off 2% and 1-1/2% respectively. Base metals were – well, base metals for all practical purposes could have gone untraded today from Friday’s close, and the results after today’s trading would have been nearly the same. Nickel started higher in pre-market trading, thanks to overnight China trading, but fell back into line with Friday’s close fairly quickly. Dow Jones reports three month nickel ended the day at $5.22/lb . Nickel inventories stored in LME warehouses rose dramatically over the weekend, now nearly 87,000 tonnes. Ed Meir from MF Global is at a conference all week, so no morning updates until Thursday. The Baltic Dry Index continues to rise. Sucden finally updated their day old nickel trading chart (here) which verify’s our statement last Thursday that trading had fallen below their TL1 line. They have since added a downtrend TTL1 line, but we feel this line will mean much over the next week. Xstrata announced two major mine closures in Canada, and Toledo advises its laterite nickel Berong Mine in the Philippines has halted production. Mine closures are a single edged sword to the miners that worked there, and the closure means they have lost their livelihood. To the trader, they are a double edged sword. Mine closures are as clear a supply disruption as you can get, which can give a boost to commodity fundamentals. On the other hand, there is a reason they close, and when demand far exceeds supply, as it is these days, it signifies a belief on the part of mine management that the near term outlook does not look favorable. This can easily add downward pressure on those traders who do not trade by the day, but look to the future for profits. Large fires are in today’s headlines, with a spectacular 44 story fire burning down a brand new Beijing, China luxury hotel (here) with no reports of casualties, to a horrific string of wild brushfires (at least 24) that have now claimed over 166 lives , and destroyed over 700 homes in southeast Australia. (more) (tv coverage here) This country has had more than its fair share of bad news lately. Entire towns devastated economically by mine closures. Now entire towns being devastated by fire. Our hearts go out to you Australia, and our sincere condolences to those who have lost loved ones.

Commodity/Economic Comments

(Dow Jones) JP Morgan analyst Michael Jansen – “Investors and traders are desperate for a bullish move to cling onto….. Unless the economic environment returns to a form of synchronized global growth then restocking will peter out relatively promptly – March-April perhaps.”
(Business News) Initial study results into Heron Resources’ Kalgoorlie nickel project has estimated capital costs at $US1.5 billion ($A2.2 billion) and a projected mine life of 34 years. A prefeasibility study conducted by earn-in partner Vale Inco, a wholly owned subsidiary of Brazil’s Vale, indicated a project producing 36,000 tonnes of mixed nickel cobalt hydroxide product, through a high pressure acid leach process. Using that processing method, operating costs have been pegged at $US4.42 per pound using an exchange rate of US75 cents.
(Beijing News) A strange phenomenon occurred with electrical poles being used in in the city of Kaili, in Guizhou Province, during this year’s snowstorm disaster. While older poles have remained standing, as many as 90% of new poles put in place during a recent reconstruction of the rural power grid failed. It was discovered that more than 10,000 of the broken poles were lacking steel reinforcement. High-level officials at the Southern Power Grid Co., furious at the news, have ordered an investigation.
(Reuters) Canada’s Continental Nickel Ltd sees its new nickel mine in Tanzania starting to export its output by 2014, the company’s chief executive said on Monday.
China ‘Seriously Concerned’ That India Is Blocking Its Exports – more
A Looming Battle for the Arctic? – more
Why Analysts Keep Telling Investors to Buy – more
Job Loss Comparison to past recessions Part 2 – image here

China steel prices at nine-week high, iron-ore demand congests ports – China stocks rose, led by metal shares. The Shanghai Comprehensive Index advanced 1.99 percent to 2224.71. – more

Baltic dry freight up 10.5 pct, new 3-month high – The London-based index, which gauges prices to ship resources like iron ore, cement, grain, coal and fertilizer on major export routes, rose to 1815 points from 1642 on Friday. – more

Metals to stage mid-term surge – The drastic decline in commodity prices was only a temporary setback in a long-term bull market, said Kevin Norrish, director of commodities research at Barclays Capital. – more

Iron ore contract prices may dip up to 30 pct in 2009 – Iron ore contract prices are likely to fall by as much as 30 percent this year and be flat next year after the financial crisis led to a decline in demand from steel makers, a consultant said on Monday. – more
Metal prices to remain weak in 2009, could rebound in Q4: Calyon – Metals prices are seen remaining weak in 2009, but are likely to rebound by Q4 2009 as financial markets anticipate strengthening growth in 2010, Calyon said in a Commodities 2009 Outlook report Monday. – more

Morning Briefing (8:00 AM CST is 2 PM in London)

Indicators at 7:45 am CST show 3 month nickel trading around even , and while the other base metals are mixed, they appear to be trading very quietly. Gold and silver are lower, while NYMEX crude is trading less than a penny higher. The Euro is trading 2/3 of 1% higher against the US Dollar. Asian markets ended slightly lower overall in overnight trading, with China and India gains overshadowed by a fall in Japan. European markets are slightly lower, and US futures show a slightly lower opening. BDI is up again, as are LME nickel inventories. More nickel miners are losing their jobs in Canada and the Philippines, and Australia, already hard hit by lay-off’s, has lost 135 people killed in wildfires that are ravaging the state of Victoria. Nissan announced it was slashing 20,000 jobs, and all eyes are on the US Senate and any progress on Obama’s stimulus package.
Bloomberg morning base metal news – more

Reports

Commodity/Economic Comments

Edward Meir of MF Global Morning Comments – From MF Global – “Our analyst Edward Meir is away at a commodity conference and will be unable to produce his report until Thursday.”
(Asia Pulse) POSCO, the world’s fourth-largest steelmaker, said Saturday that it will cut the price of stainless steel beginning this month, reflecting a fall in nickel prices. The price of hot-rolled stainless steel 300 series, which is used to make kitchen utensils, will be lowered to 3.15 million won (US$2,288) per ton, while that of cold-rolled stainless steel 300 series will be reduced to 34.2 million won per ton, it said.
(Interfax) Baoshan Iron and Steel Group (Baosteel Group) was China’s largest steelmaker in 2008, despite a drop in crude steel production by 1 percent year-on-year to 35.44 million tons, which accounted for 7.08 percent of the total national crude steel output, according to figures released by Mysteel on Feb. 9.
(Hurriyet) The Chinese-owned mining company Shougang Hierro Peru is to invest $1 billion to expand production at its plant in southern Peru by 10 million tons per year, the company’s chairman said Saturday.
Industrial commodities to recover in 2010: EIU – more
China’s Exports May Fall by Most in Decade as Demand Dries Up – more
Job Loss Comparison to past recessions – here (source)
Stimulus will lead to ‘disaster,’ Republican warns – more
The new Travelodge hotel made out of shipping containers – more
China – Autos: Small car sales boom in Jan on tax cut – more
Economists: Rising unemployment a key challenge for China – more

Xstrata restructures Sudbury ops, cuts jobs – Mining group Xstrata Plc will restructure its Sudbury nickel operations in Canada and cut 686 permanent jobs there after a collapse in metals prices, the firm said on Monday. – more

Xstrata Sheds Jobs as Canadian Nickel Mines Shut Down – Xstrata Plc, the largest exporter of coal used by power plants, will shed 686 jobs as it shuts two Canadian nickel mines following a slump in demand and stops developing a new property. – more
FNX Canceled $100 Million Credit on Higher Interest – FNX Mining Co., the Canadian miner that sells nickel and copper ore to Cia. Vale do Rio Doce, said it canceled a $100 million line of credit because the borrowing cost has risen too much. – more

Barnett in Esperance over nickel export concerns – The Premier Colin Barnett has met about 200 Esperance residents to discuss their concerns about his government’s plan to continue the bulk handling of nickel at the local port. – more

Rescuers brace for more bushfire horror – more
Fire threatens coal mines – more

DJ Toledo Mining Corp: Berong Nickel Mine Production Reduced – Toledo Mining Corporation said Monday that for the quarter ended December 31, 2008, at the Berong Nickel Mine only 16,279 tonnes of ore was mined and hauled to the coast. – more

Toledo Mining slashes nickel output, cuts jobs – Toledo Mining responded to falling nickel prices by slashing production of the metal at its Berong mine in the Philippines. – more

Chinese get resources green light – Significant deals have been given the green light and mining giant Rio Tinto has confirmed it is in strategic talks with a Chinese major. – more

Iron Ore Rebounding as Vale, BHP Face Cuts From China – Iron ore is recovering from a three- year low just as Cia. Vale do Rio Doce, Rio Tinto Group and BHP Billiton Ltd. start talks with Asian steelmakers to set prices for annual supply contracts. – more

LME chases the dragon – U.S. unemployment is rising fast, German manufacturing orders are sinking equally fast and the cries of pain from the global automotive industry are becoming ever louder. – more

Rio reveals shock exit – Jim Leng, the chairman designate of Rio Tinto, has confirmed that his shock resignation from the board of the mining giant just weeks after his appointment is over his opposition to the sale of assets to China as part of its debt reduction strategy. – more

And Then There Were None – Norilsk Nickel Loses Value As Takeover Pressure Mounts – The Agatha Christie story of 1939 started with a title and a children’s rhyme that are no longer printable for their racist connotations. But the LME markets last week shrugged off these signs of what the Bank of England called “a severe and synchronized downturn” in the global economy to focus on just one country, China. – more

ThyssenKrupp May Say Net Fell on Weaker Steel Demand: Outlook – ThyssenKrupp AG, Germany’s largest steelmaker, may say this week first-quarter profit plummeted 69 percent as demand for the metal slumped at the fastest rate since World War II. – more

Morning Nickel Inventory and Price Statistics & Figures

London Metal Exchange inventory figures/changes – (for today’s figures see MF Global report above) (charts and archives)
Today’s almost official prices here / Yesterday’s actual LME official prices here or here (chart)
Shanghai Jinchuan nickel price – available here (charts)
India Metals Prices – Delhi – Feb 9 – more
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