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news covering the period of August 2021
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Tuesday, August 31
Daily Nickel/Stainless Steel Briefing
Nickel on the LME went untraded yesterday. Indicators at 6:00 am CST today show
nickel trading around $.23/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Friday and started today just under the 194,500 tonne level. Cancelled
warrants came in very close to the 34% level on Friday. LME traders
have returned after a three day weekend, with a bang. Nickel jumped in
overnight trading at Shanghai, and LME traders are following suit. At
the moment, nickel is trading $500/tonne higher, but still has a ways
to go before it ends as high as it did in July. Stainless steel is also
trading higher in China, with all three stainless indexes we follow
moving higher - again lower than they ended July however. The Wyloo -
BHP bidding war in Australia for Canadian Noront Resources continues.
Lot of port bottleneck news under 'Other News' below. And finally, we
can't help take a swipe at the Chinese nickel workers in Indonesia, who
we haven't heard from since they were the first large group of
foreigners we recorded that were quarantined early in the covid crisis.
The leading theory for the origination of the pandemic is the Wuhan
food mart, where Chinese shoppers could buy just about any live animal,
diseased or not. The Chinese really need to get over their need to eat
any animal, including those that foreign countries recognize as
endangered. The rest of the world would appreciate it, as we are tired
of seeing our neighbors die because someone in Wuhan decided to try
wild bat soup. Last day of August and the unofficial end of summer in
the Northern Hemisphere. Stay safe out there and have a great day!
Average price of LME traded cash nickel
so far this month
- $8.68/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - London aluminium hits 10-year high on supply concerns - more
Taiwan’s Yusco raises export stainless steel prices for Sep - Yieh
United Steel Corp. (Yusco), a leading stainless steel mill in Taiwan,
announced its new prices for September today (August 30). - more
Shanghai stainless steel rises on nickel boost, output curbs - Chinese
stainless steel futures jumped more than 4% on Tuesday, backed by
strong nickel prices and supply concerns amid controls on high
energy-consuming projects in some regions that had failed energy
targets in the first half. - more
Wyloo hikes bid for Ring of Fire explorer Noront Resources, trumps BHP
offer - Wyloo Metals Pty Ltd. is increasing its bid for Noront
Resources Ltd., trumping BHP’s current offer, and proposing an
arrangement that would see the Ring of Fire exploration company remain
as a publicly traded entity. - more
POSCO Starts High-purity Nickel Production for Secondary Batteries -
New high purity nickel factory in Gwangyang to produce 20 thousand tons
per year to secure supply for cathode materials necessary for the
high-capacity batteries, capable for 500 thousand electric Motor
Vehicles - more
DoF still pushing through with mines privatization - The government is
still proceeding with a plan to privatize state-owned mines, with Basay
Mining Corp. being the first in line, as it looks for new sources of
revenues amid the prolonged pandemic, Finance Secretary Carlos G.
Dominguez III said. - more
Courtesy AISI - In the week ending on August 28, 2021, domestic raw
steel production was 1,873,000 net tons while the capability
utilization rate was 84.9 percent. Production was 1,476,000 net tons in
the week ending August 28, 2020 while the capability utilization then
was 65.9 percent. The current week production represents a 26.9 percent
increase from the same period in the previous year. - more
No charges for Chinese nickel smelter workers who made croc soup out of
protected reptile (Video) - It seems viral footage depicting Chinese
workers skinning a wild crocodile and cooking its meat in soup is not
sufficient evidence to charge them for the killing of the protected
animal. - more
Nickel closed Friday's trading
session at $8.62/lb
($18,995/tonne). With LME closed today for their Summer Bank Holiday,
we have to look to Shanghai for metals trading activity. There, nickel
played follow the LME on Friday leader and rose slightly. So, no news
from there. The heavily anticipated remarks by the Fed chairman on
Friday were, in a word, dovish, but few clues with any certainty were
offered. Starting to see more and more news stories on the supply chain
causing, so far, minor shortages in food here in the States. This week
we noticed the grocery store was hit pretty hard, but figured that was
due to the kiddo's heading back to school. Coffee is having an
especially hard time getting to morning cups. Ida hit Louisiana as a
Cat 4 and oil refineries in the area were shut down prior to the
hurricane hitting landfall. Too early to know if they sustained any
damage. And that California wildfire camera (Leek Springs) we linked to
last week, overnight firefighters were seen fighting the blaze to keep
the earthquake monitoring station safe that the camera sits on. It's a
new week, albeit only two days of which belong in August. Stay safe out
there and have a great week.
Average price of LME traded cash nickel
so far this month
- $8.68/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Shanghai aluminium touches 13-year high on supply worries - more
Friday's market review - China curbs propel aluminium
prices to highest since April 2018 - Aluminum prices soared to their
highest level in more than three years on Friday as worries about
supplies from top producer China escalated after the country’s Xinjiang
region imposed output limits on five smelters. - more
South Korea's stainless steel mills gain considerable profits in H1
2021 - According to statistics, the sales volume of South Korea’s
stainless steel cold-rolled sheets amounted to around 208,000 tons in
the first half of this year, hiking by 16.7% compared to the same
period a year ago. - more
POSCO starts production of high-purity nickel for batteries - POSCO has
begun production of high-purity nickel - required for secondary
batteries - at SNNC. SNNC is a JV established with SMSP, the largest
nickel exporter in New Caledonia, in 2006, and was Korea’s first
specialized ferronickel manufacturer engaged in producing and selling
ferronickel (nickel 20%, iron 80%), the main component of stainless
steel, as well as other by-products. - more
Europe’s Steel Rally May Be Peaking While the U.S. Powers On - The
rally in European steel prices to eye-watering levels may finally be
running out of steam. - more
Tamarack mining project risks are subject of meeting - A presentation
by WaterLegacy, a Minnesota advocacy group, drew a diverse crowd on
Aug. 21 at the Minnewawa Sportsmens Club pavilion. - more
Nickel closed Thursday's trading
session at $8.51/lb ($18,756/tonne). Indicators at 6:00 am CST today show
nickel trading around $.08/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Thursday and started today just over the 195,250 tonne level. All eyes
are on the Fed Chairman today, who gives a speech at 10 am EST. If you
want to get an idea of what he says, without actually hearing him,
watch the markets and what they do after that time. Right now, they are
volatile, with bulls and bears betting on what he might say. The market
is hoping, and dreading, to learn when the Fed might start putting some
curbs on its stimulus measures. This has an effect on base metals
trading, as seen in yesterday's drop, so its worth watching. Another
slow news day and thanks to the Nickel Institute, an article with an
intriguing, albeit gross, title that is worth a read. And Amnesty
International has its eyes on the Philippine nickel industry. Stay safe
out there and have a great weekend.
Average price of LME traded cash nickel
so far this month
- $8.69/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - China curbs propel aluminium to highest since April 2018 - more
Thursday's market review - Copper falls as cautious
investors await Powell speech - Prices of copper and other industrial
metals slipped on Thursday as global stock markets wobbled ahead of a
keenly awaited speech by U.S. Federal Reserve Chair Jerome Powell on
Friday. - more
European stainless steel scrap prices upheld by low supply - According
to market participants, the prices of European stainless steel scrap
were upheld by the low supply in the past week instead of dropping amid
the lower nickel price. - more
During the next decade, millions of electric vehicle batteries will be
retired. What becomes of them? - Electric vehicles are expected to
flood the highways of rich countries as car firms and governments
commit to increasing their production. - more
Would you drink the water coming out of a municipal Wastewater
Treatment Facility? - “There’s a mental hurdle to get over of how
inherently gross this could be, but we know that this water is safe,
and we stand by our process.” - pdf here
Amnesty International - Philippines: Undermining workers’ rights:
Labour rights abuses in nickel supply chains: Executive summary - This
document provides a summary of the report in which Amnesty
International raises serious concerns about rights at work for workers
in the nickel mining sector on Dinagat Island in the Philippines. - pdf here
Nickel closed Wednesday's trading
session at $8.71/lb ($19,200/tonne). Indicators at 6:00 am CST today show
nickel trading around $.14/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Wednesday and started today's session just shy of the 196,300 tonne
level. Markets around the world are lower after Goldman Sachs predicted
the Fed will start tapering measures in November. The Euro is trading
higher this morning, typically positive motivation for the bulls - but
today, that is likely offering a sugar cube to an addict. News was
quiet over the last 24 hours, with covid and Afghanistan hogging the
headlines. The Ningbo port is back to 100% reopened, a big deal when
you consider its the worlds third busiest. Here is the States, Houston
had its busiest month ever in July, as container ships look to avoid
the jams at Long Beach and Los Angeles. Since news is light, we are
adding a link to a page that might be of interest to some of you. As
many Americans are aware, California is ablaze again this year. The
state has a network of over 600 cameras located throughout their
forests and this is what one is showing today from one small section of
the Caldor Fire (link).
Look below for other cameras and the main page has the complete
directory. This is the Caldor Fire and as its closes in on Lake Tahoe,
it has become priority number one for firefighters. Stay safe out there
and have a great day!
Average price of LME traded cash nickel
so far this month
- $8.70/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper falls on investor caution ahead of Fed symposium - more
Wednesday's market review - Copper holds gains as
inventories dwindle - Copper prices held on to recent gains on
Wednesday, helped by signs of strong demand in top consumer China and a
steep decline in inventories available in the London Metal Exchange
(LME) warehouse system. - more
Contractor dies at Vale's Copper Cliff operations in Sudbury - Police,
Labour ministry investigating fatal incident at nickel miner's matte
processing plant - more
Shipping cost index reaches 11-year high - This week, we saw 11-year
highs in one economic indicator: the Baltic Dry Index. It’s a sea
freight index. - more
Exclusive Interview: Third-Party Risk & Compliance Expert for Dun & Bradstreet Addresses Port Crisis - more
Chinese Container Terminal Reopens After Two-Week COVID Closure - more
Port Houston Reports Record Container Volumes in July - more
Nickel closed Tuesday's trading
session at $8.64/lb ($19,055/tonne). Indicators at 6:00 am CST today show
nickel trading around $.08/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose on
Tuesday - yes rose - and started today's session just shy of the
197,100 tonne level. We saw one of those last month, a couple in June
and none in May. One of those being days where LME nickel stockpiles actually
grew. World steel production in July was 3.3% higher than July 2020, while
Platt's steel index for China is at a five month low. There are
numerous internal reasons why China would like to lower steel output,
primarily to cut down on the smog they create. But recently, their
diplomats are saying this action is targeted at lowering iron ore
exports from Australia - a country they are in an intensive tiff with.
Australia is feeling the squeeze, but we suspect the squeeze would have
been there, diplomatic difficulties or not. With 122 days left until
December 25th, we posted an article below about how the container
shipping problems might adversely affect Christmas. We hate to be the
ones to break this news but Christmas has been cancelled. Covid killed
Santa (story here). Stay safe out there and have a great hump day!
Average price of LME traded cash nickel
so far this month
- $8.69/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - London copper steady; investors await Fed symposium - more
Tuesday's market review - Copper claws higher but remains
jittery on rates - Copper prices marched higher for a third session on
Tuesday on signs of a rebound in physical demand, but gains were capped
by uncertainty ahead of a U.S. central banking conference. - more
July 2021 crude steel production - World crude steel production for the
64 countries reporting to the World Steel Association (worldsteel) was
161.7 million tonnes (Mt) in July 2021, a 3.3% increase compared to
July 2020. - more
China’s steel manufacturing production index hits five-month low in
July - China’s manufacturing production index of steel consumption
produced by S&P Global Platts stood at 91 points in July, a
five-month low but still 3 points higher than the same period in 2020.
- more
Courtesy AISI - In the week ending on August 21, 2021, domestic raw
steel production was 1,877,000 net tons while the capability
utilization rate was 85.0 percent. Production was 1,476,000 net tons in
the week ending August 21, 2020 while the capability utilization then
was 65.9 percent. The current week production represents a 27.2 percent
increase from the same period in the previous year. - more
Korea to launch new mining agency on Sept. 10 - South Korea will launch
a new public agency to oversee metals, minerals and mining affairs next
month, amid growing concerns over the future availability of raw
materials critical to the country’s backbone industries, the government
said Tuesday. - more
Cargo Delays, Supply Shortages, and Increased Prices Likely to Continue
Through Q4 - Supply chain managers seeking solutions to increase cargo
throughput velocity are in for a rude awakening, says a prominent
Syracuse University professor. - more
Dry Bulk Shipping Rates Soar as Commodities Rebound - more
How the Crisis in Container Shipping Could Affect Christmas - more
Nickel closed Monday's trading
session at $8.58/lb ($18,905/tonne). Indicators at 6:00 am CST today show
nickel trading around $.05/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Monday, and started today's session just over the 195,500 tonne level.
The last time stockpiles saw a plus day was July 5th, and since that
session, stockpiles have fallen by 37,000 tonnes. Nickel hit the
$19,000/tonne level a couple of
times in yesterday's trading, but closed about $100/tonne shy. This
morning nickel has crept over that level, but with little enthusiasm.
Both
Thursday and Friday's trading low was around the $18,400/tonne, so if
you are a technical trader, that level could become important during
any bearish pullback in the future. Markets appear to have taken a wait
and see attitude while they wait to hear what the FED talked about at
the Jackson Hole conference. Stay safe out there and have a great day!
Average price of LME traded cash nickel
so far this month
- $8.70/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - London copper falls on caution ahead of Fed symposium - more
Monday's market review - Copper climbs as investors return
to market after slump - Copper prices jumped on Monday as investors
took advantage of lower prices to buy, anticipating a recovery of
global growth and the needs of a lower-carbon global economy will drive
demand. - more
Japan asks WTO to establish panel to deal with China’s AD measures on
stainless steel products - According to the Japanese Ministry of
Economy, Trade and Industry (METI), Japan officially asked the WTO to
establish a panel under the WTO Agreement to resolve trade disputes
regarding China’s anti-dumping (AD) measures on Japan’s stainless steel
products, on the grounds that China’s measures are inconsistent with
international agreements. - more
Nickel miners need to increase Class 1 output to meet steel, EV demand:
Bank of America - Nickel miners will need to increase their output of
refined product, among other measures, to meet record stainless steel
and growing electric vehicle demand, Bank of America Securities said in
a research note on Aug.23. - more
China slashes steel exports to Australia by 50 per cent to ‘wean’
itself off nation’s iron ore industry - It’s the only thing keeping
Australia afloat. Now China’s moved to gut the iron ore market. - more
Tesla May Adopt New Battery Tech To Prevent Vehicle Fires And Save
Lives - A recent rumor suggests Tesla might soon change the type of
battery used in its standard range Model 3 and Model Y, lowering cost
and also fire risk. - more
Too-Big-to-Fail? GM and LG’s Ties Tested by $1 Billion Recall - more
Explainer: Are lithium-ion batteries in EVs a fire hazard? - more
Shanghai airport terminal closure leads logistics firms to expect cargo
delays - Freighter suspensions that began Friday remain in effect at
Shanghai Pudong International Airport after the Shanghai Health
Commission reported five new COVID-19 cases among cargo workers. - more
At Port of Los Angeles, More Boxes Leave Empty Than Loaded - more
Nickel closed Friday's trading
session at $8.37/lb ($18,460/tonne). Indicators at 6:00 am CST today show
nickel trading around $.19/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Friday and ended the week just below the 197,300 tonne level. Nickel is
trading back above its 50 day moving average this morning, after
falling below that level on Thursday. Metals are getting a boost this
morning from the Euro trading higher, although that does not account
for the magnitude of the bounce. Traders haven't completed recovered
from that one day dive quite yet, but they are very close. We linked to
a short video a few months ago, explaining how Toyota discovered a flaw
in its supply chain management after the 2011 earthquake, which was
helping them survive the lack of chips that was crippling other
automakers. Fate has finally caught up with them and now even they are
laying off employees. Toyota is admired as a leader in supply chain
management so this should be a warning to all those who feel they have
a fool proof sourcing program in place. There has been a big push in
this century to eliminate suppliers and put one's eggs in a single
basket. This is a theory welcomed by the supplier who comes out on the
winning end of the decision, but leaves a factory wide open to
potential problems down the road. As many are now discovering. It's
Monday and the last full week of August, and we are still looking for a
sponsor for September. Stay safe out there and have a great week.
Average price of LME traded cash nickel
so far this month
- $8.71/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper climbs as investors return to market after slump - more
Friday's market review - Copper rebounds, but demand
concerns dominate market - Copper prices bounced on Friday but
remained on track for the largest weekly drop since June due to worries
about demand in top consumer China, the possible withdrawal of U.S.
central bank stimulus and rising COVID-19 infections. - more
Taiwan’s Yieh Hsing & Walsin Lihwa benefit from surged stainless
steel wire rod prices - Taiwan’s
export price of stainless steel wire rods in July not only hit a
six-year new high but also has risen by more than NT$28,000 since this
year. - more
Nickel Is Becoming a Battleground for Bets on Battery Future - The race
to supply automakers with nickel to power their batteries is pitting
two of the biggest names in mining against each other. - more
Noront still sides with BHP's deal to acquire Ring of Fire deposits - more
Iron ore slump justified by improving supply, China steel control:
Russell - Iron ore’s rapid retreat in recent weeks shows once again
that price pullbacks can be as disorderly as the exuberance of rallies,
before the fundamentals of supply and demand reassert themselves. - more
Asiamet facing Covid delays in Indonesia - Asiamet Resources updated
the market on its BKM copper development project and the Kalimantan
Suraya Kencana contract of work in Indonesia’s Central Kalimantan on
Friday, reporting that over the past two months there had been a “very
significant and rapid” increase in the number of Covid-19 infections
across Indonesia. - more
Madagascar mining minister resigns, citing online 'slander' -
Madagascar's new mining minister Brice Randrianasolo resigned late on
Thursday, citing online "slander" related to a legal case in which he
was previously involved. - more
Cargo Delays, Supply Shortages, and Increased Prices Likely to Continue
Through Q4 - Supply chain managers seeking solutions to increase cargo
throughput velocity are in for a rude awakening, says a prominent
Syracuse University professor. - more
Record-Breaking Supply Chain Disruptions and Supply Shortages - more
Toyota Cuts Shows Covid Ravaging Even Best Supply Planners - more
China: Plug-In Car Sales Almost Set A New Record In July 2021 - Plug-in
electric car sales in China almost set another monthly record in July
as the market is booming with multiple brands and models reaching high
volume. - more
Nickel closed Thursday's trading
session at $8.33/lb ($18,360/tonne). Indicators at 7:00 am CST today show
nickel trading around $.09/lb higher. Stockpiles of nickel stored in warehouses fell
on Thursday and ended that session just over the 198,100 tonne level.
Cancelled warrants hit 30% yesterday - for the first time in forever.
Actually it was mid March 2020 - the month the pandemic moved to page
one. Nickel's close yesterday was it lowest since July 8th. It has been
a brutal five days for nickel, dropping from a close of $19,705 last
Thursday, to $18,360/tonne last evening. Lot of factors you can pull
out of the hat to blame. Covid is back on page one, although the botched pullout
of Afghanistan, a country we had occupied for 20 years, actually pushed
covid to story #2. The attempt by China to slowdown steel production,
with only temporary success in the past, is showing evidence of having
some success. Temporary again? We will see. Our word for the week was
'tapering'. Markets appear to expect the Fed to start "tapering' back
on its cheap money, ie drug, lifeline sooner than expected, and this
has the addicted markets shaking in their boots. In one form or
another, tapering has been around since the Great Recession, as the Fed
tries to guide the markets between recession and inflation. And it
likely will be for another decade. But even the talk of messing with dosages,
can make the addicted get the shakes. Hey - another week is in the
history books Stay safe out there and have a great weekend!
Average price of LME traded cash nickel
so far this month
- $8.73/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper bounces, but demand concerns dominate mood - more
Thursday's market review - Copper slides as China, Fed and
COVID-19 trigger sell-off - Copper prices dropped on Thursday to their
lowest level in more than four months on a major selloff sparked by
China reining in growth, the U.S. central bank signposting its
intention to reduce stimulus and rising COVID-19 cases. - more
US' stainless steel prices continue reaching new highs due to short
supply - Affected by the short supply, the US cold-rolled stainless
steel coils price rose further in the first half of August. Stimulated
by this, US stainless steel mills increased their prices for the base
and alloy surcharge. - more
WBMS January to June 2021 Metals Balances - The nickel market was in
deficit during January to June 2021 with apparent demand exceeding
production by 41.1 kt. In the whole of 2020, the calculated surplus was
92.7 kt. - more
Billionaire Forrest picks up 5% in takeover target Western Areas -
Mining billionaire Andrew Forrest has picked up a 5.3% stake in Western
Areas, a filing showed on Friday, a day after IGO Ltd confirmed it was
in early talks to buy the Australian nickel producer. - more
Wyloo Metals not a huge fan of BHP muscling its way into the Ring of Fire - more
Scrambling for Plate - Factors such as the pandemic, long lead times,
high prices and credit woes have left industry professionals
reeling in their search for steel plate. - more
EU steel buyers fear higher prices subject to potential removal of US' Section 232 tariff - more
What’s going to happen to Afghanistan’s untapped mineral wealth worth
$1 trillion? - The humanitarian conflict unfolding in Afghanistan after
the Taliban grabbed power, has also pushed the mineral-rich nation into
a crisis of ownership of resources, estimated to be worth billions of
dollars. - more
Nickel closed yesterday's trading
session at $8.56/lb ($18,875/tonne). Indicators at 6:00 am CST today show
nickel trading around $.21/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Wednesday and ended that session just below the 198,500 tonne level. If
traders were trying to find the exits earlier this week, they
apparently found a big one this morning. So far this morning, the
$18,400 level is offering some support to nickel, but the market is
definitely in a sour mood. Since peaking last Wednesday, nickel has
been on the decline, and trading earlier this morning could best be
described as a free fall. This appears to be part of a global sell off
triggered by news the US FED would start reducing its rate of bond
purchases. Stainless steel futures in China are trading at their lowest
since mid last month, while stainless steel scrap continues to increase
in value in the U.S. World Trade Organization is warning global trade
may be peaking, while Europe tries to figure out how to mine an
asteroid that could make every citizen of earth very rich. Yeah right.
That's not how the world works, unless you're trying to sell something
- like a very expensive asteroid mining project. Stay safe out there and
have a great day!
Average price of LME traded cash nickel
so far this month
- $8.75/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper slips below $9,000 for the first time since April - more
Yesterday's market review - Copper hits lowest in almost
two months as concerns linger - Copper prices slumped to their
lowest in nearly two months on Wednesday after recent weak economic
data reinforced demand fears while a looming central bankers conference
focuses attention on interest rates. - more
Taiwan's stainless steel inquiries increase due to high nickel price -
Since the LME nickel price came back to the US$19,500/ton level and
remained stable in the past week, Taiwan's traders in the market
confirmed that inquiries from foreign customers have come back to the
local market. - more
DMCI Mining shipments hits all-time high in H1 - DMCI Mining reported a
record high shipments of 1.24 million wet metric tons (WMT) of nickel
ore in the first semester of the year, a 45-percent increase from
853,000 MWT shipped during the same period last year. - more
WTO says record global trade in goods might be nearing a peak - Global
trade in goods might be close to plateauing—albeit at a record
level—amid an outlook clouded by regional imbalances and coronavirus
outbreaks that slow economic activity, the World Trade Organization
said. - more
Australia's IGO in talks to buy nickel miner Western Areas - Australian
miner IGO Ltd said on Thursday it was in preliminary talks to acquire
nickel miner Western Areas Ltd, as it raises its footprint in battery
materials after buying a lithium stake earlier this year. - more
U.S. Factory Output Rose by Most in Four Months, Lifted by Autos -
Production at U.S. factories strengthened in July by the most in four
months, rebounding above pre-pandemic levels and indicating
manufacturers are coping with snarled supply chains and shortages. - more
How 8 Distributors Rapidly Boosted Sales and Profit Over the Past 16 Months - more
Fed Chairman: No Returning to Pre-Pandemic Economy - more
The View from England: Europe’s galactic mining goals - (excerpt) This
asteroid is estimated to contain metal worth more than US$10,000
quadrillion (or ten billion billion), which is enough to make everyone
on Earth a dollar billionaire. - more
Nickel closed Tuesday's trading
session at $8.71/lb ($19,205/tonne). Indicators at 6:00 am CST today show
nickel trading around $.08/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell
below the 200,000 level yesterday and started today's session just over
the 199,100 tonne level. If that fact offered the market any
psychological value, it was apparently lost on the rush for the exits.
Nickel continues to slide, and has dipped below the $19,000 tonne level
this morning. That's a $500+/tonne drop already this week, and day 3 is
still dark in our neck of the woods. You can make up your own reasons
for the drop. Vale's contract agreement, Delta still spreading like
wildfire, China's growth slowdown, or potential slowdown in the
worldwide economic recovery. On the other side of the coin, you have
declining nickel stockpiles, with production of stainless steel and
EV's having a hard time keeping up with demand. Not exactly the most
bearish circumstances out there, although the Delta strain and many
government's around the world complete lack of credibility, starting to
raise growth concerns. Chinese officials have stated they will start a
phased re-opening of operations at Ningbo, as long as no more dock
workers test positive for covid. Covid has been, and remains, the
proverbial 'fly in the ointment'. Stay safe out there and have a great
hump day!
Average price of LME traded cash nickel
so far this month
- $8.76/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper hits one-month low on demand and interest rate fears - more
Tuesday's market review - Aluminium higher on weak China
supply and U.S. shortages - Aluminum prices pushed higher on Tuesday on
renewed supply worries over power issues in top producer China and
shortages in the United States because of shipping delays. - more
Vale unlocks the next phase of Voisey’s Bay - One of the largest nickel
deposits in the world has been given a new lease on life. - more
Historic steel price rally celebrates one-year anniversary - It’s time
to wish a hearty happy birthday to the steel price rally that was born
a little more than one year ago. - more
EV Makers Are Inking Mining Deals to Secure Battery Supplies -
Electric-vehicle makers are pushing for an intermediary role in mining
to secure supplies of key battery metals, according to the head of
Wheaton Precious Metals Corp. - more
Courtesy AISI - In the week ending on August 14, 2021, domestic raw
steel production was 1,869,000 net tons while the capability
utilization rate was 84.7 percent. Production was 1,476,000 net tons in
the week ending August 14, 2020 while the capability utilization then
was 65.9 percent. The current week production represents a 26.6 percent
increase from the same period in the previous year. - more
Imports Sustain Surge at Port of Los Angeles as Exports Continue to
Crash - More than a year after U.S. consumer purchasing began to build
momentum after COVID-19 shutdowns, the cargo boom continues at the
nation’s top port for containerized cargo. - more
Impact from Ningbo Closing Less Than Feared, as Reopening is Expected - more
ISM Continuing Port Disruptions Cause ‘Bullwhip’ Concerns - more
Local View: Minnesota's minerals key to our clean-energy future - From
the column: "Twin Metals will be the first mine in the state of
Minnesota to adopt battery electric vehicle technology, (allowing) us
to reduce our onsite greenhouse gas emissions by 65%. - more
Nickel closed Monday's trading
session at $8.85/lb ($19,510/tonne). Indicators at 6:00 am CST today show
nickel trading around $.01/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell
sharply on Monday and ended the day just under the 200,400 tonne level.
Nickel traded within a $200/tonne range yesterday, rather quiet by
recent standards. Today, nickel is only slightly higher, reflecting
another potential day of waiting and wondering what the future might
bring. The Ningbo port remains partially closed for a seventh day
today. Bloomberg is reporting the delays at west coast ports in the
U.S. are building again, with wait times averaging around six days. BHP
is looking to get out of the petroleum business, so it can concentrate
its resources on EV minerals like nickel. Amazing turn around in this
companies attitude toward nickel from a few years ago. Stay safe out
there and have a great day!
Average price of LME traded cash nickel
so far this month
- $8.71/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper retreats on demand worries after Chinese data - more
Monday's market review - Copper retreats on demand worries
after Chinese data - Copper prices dropped on Monday after weak
economic data from top metals consumer China fueled worries about
demand. - more
China's July crude steel output falls nearly 8% vs June on production
controls - China's crude steel output fell in July to the lowest
monthly level since April 2020 as authorities stepped up production
controls designed to meet a target of keeping output unchanged from
last year as Beijing bids to cap carbon emissions. - more
Chinese steel futures fall on subdued economic data - more
Metal Shipments Increased at Slower Rates Compared to the First Half of 2021 - The
dramatic increases in metals shipments of the last six months slowed
across the board. Canadian steel shipments actually declined slightly.
- more
Early data for 2021 show continued recovery growth in EU steel market -
EU28 apparent steel consumption grew (+3.6%) in the fourth quarter of
2020 and again in the first quarter of 2021 (+0.9%). - more
BHP moves to shed oil and gas for nickel, tapping into EV demand -
Anglo-Australian BHP Group on Monday revealed it is in talks to sell
its petroleum business in a deal potentially worth 20 billion
Australian dollars ($14.7 billion) as the global push toward
decarbonization spreads to the traditionally carbon-intensive
commodities sector. - more
FedEx outlines peak surcharges for Ground, Express that will extend
into 2022 - FedEx will increase various surcharges for peak season in
line with rival UPS, setting up another costly holiday season for
companies shipping high volumes with the major parcel carriers. - more
Nickel closed Friday's trading
session at $8.92/lb ($19,655/tonne). Indicators at 6:00 am CST today show
nickel trading around $.04/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Friday and ended the week just over the 202,200 tonne level. $19,700
has apparently become the new line of resistance for nickel, as it has
banged its head against that level numerous times over the past three
trading sessions. Currently it is trading lower, which has become a
Monday custom after another weekend full of covid news apparently
spooks markets. Worth watching is how long the world's third busiest
port in China stays partially closed due to a single case of covid.
Some of the largest shipping companies are already re-routing their
ships to other ports. China has a zero tolerance for positive cases of
covid and taking actions like this are going to add additional strain
to already weakened supply chains. We start the second half of August
today, with the 'unofficial' end of summer just a few weeks away. Stay
safe out there and have a successful week.
Average price of LME traded cash nickel
so far this month
- $8.75/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper climbs as dollar dented by sinking U.S. consumer sentiment - more
Friday's market review - Copper climbs as dollar dented by
sinking U.S. consumer sentiment - Copper prices rose on Friday as the
dollar weakened after a sharp drop in U.S. consumer sentiment fed views
that the Federal Reserve could hold off on tapering stimulus in the
world’s largest economy. - more
China’s steel output cuts still small despite sharp Tangshan reductions
- China’s steel output cuts remain at a smaller scale so far in 2021
even as the country’s largest steelmaking city Tangshan continues to
target aggressive reductions for the rest of the year, a development
that will likely result in oversupply and pressure prices in the near
term. - more
Nickel Production on the Rise - After looking at the raw materials
chrome and moly in the last two editions we will complete the set with
a review of nickel in this issue. We will look at the two main stages
of nickel processing: – mine production and then smelter/refinery
production, which is the product which is shipped to stainless
producers and other users. Stainless accounts for well over half of all
nickel production. - more
Higher shipments push FNI income to P640.8-M in H1 - Thanks to higher
shipments, Global Ferronickel Holdings, Inc. (FNI), the country’s
second-largest nickel ore producer, saw its income surging to P640.8
million during the first half of the year, compared to the P195.8
million it had in the same period last year. - more
Massive China Port Shutdown Raises Fears of Closures Worldwide - A
Covid outbreak that has partially shut one of the world’s busiest
container ports is heightening concerns that the rapid spread of the
delta variant will lead to a repeat of last year’s shipping nightmares.
- more
Maersk Cancels Six Ningbo Calls as World Watches for China’s Next Move - more
Container Premiums: Ningbo port issues create risk for even higher surcharges - more
China’s zero-Covid policy is so strict that it shut down a whole shipping terminal after just one case - more
Global supply chains are being battered by fresh COVID surges - more
Phytomining: Mining Battery Metals With Plants - Researching the
potential for plants to pull battery metals out of the ground has
received backing from the Queensland Government. - more
Nickel closed Thursday's trading
session at $8.94/lb ($19,705/tonne). Indicators at 7:10 am CST today show
nickel trading around $.02/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Thursday and started today, just under the 202,900 tonne level. Nickel
closed yesterday's session at its highest this month, and while the
Euro is also trading stronger this morning, nickel is slightly lower.
It's Friday - the 13th! Stay safe out there and enjoy your weekend.
Average price of LME traded cash nickel
so far this month
- $8.73/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper rises on Chilean supply risk as workers go on strike - more
Thursday's market review - Nickel climbs on higher risk
appetite and demand boost - Nickel hit its highest in two weeks
on Thursday after U.S. inflation figures cooled talk of Fed tapering,
while strong consumption and falling stocks underpinned its appeal. - more
Column: U.S. infrastructure bill targets critical minerals supply - The
United States’ $1 trillion infrastructure package is undoubtedly good
news for industrial metals. - more
Japan’s Pacific Metals: Stainless steel industry has indication of
recovery - Pacific Metals Co., the largest ferronickel producer in
Japan, reported that its shipment of ferronickel increased in the
second quarter of this year, implying a recovery in the stainless steel
production of both domestic and foreign markets. - more
Twin Metals says it will use an electric vehicle fleet; opponents
aren’t swayed - Twin Metals Minnesota has marketed its controversial
plan for a copper-nickel mine near the Boundary Waters Canoe Area
Wilderness (BWCA) as more environmentally conscious than your average
mine. - more
Differentiating in Industrial Distribution With Software - Distributors
typically rely on their value-added solutions to help them stand out.
But those solutions are often only as good as the software that powers
them. - more
Nickel closed Wednesday's trading
session at $8.78/lb ($19,350/tonne). Indicators at 6:00 am CST today show
nickel trading around $.14/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Wednesday and ended that session just over the 204,000 tonne level. of
nine sessions so far this month, stockpiles have fallen every day, with
five sessions seeing drops of 1000+ tonnes and two of those, 2000+
tonne declines. Unless the rate suddenly changes, we should see LME
stockpiles fall below 200,000 tonnes next week. China is seeing
container backup's again due to covid, this time at two separate
container ports. Both nickel and stainless steel jumped in overnight
trading in Shanghai, while Chinese statistics show 200 and 300 series
stainless production slipped in July, while 400 series production
increased. Inventories of stainless there are also reported as lower.
And a little religion for you today. The verse Ecclesiastes 8:15 comes
to mind today - Eat, drink and be merry, for tomorrow is Friday the
13th. What? Ok, maybe that's not quite 'Biblical'. Stay safe out there
and have a great Thursday.
Average price of LME traded cash nickel
so far this month
-
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Shanghai nickel up more than 5% on supply worries - more
The annual inflation rate for the United
States is 5.4% for the 12 months ended July 2021, matching the period
ending June, according to U.S. Labor Department data published August
11.
Wednesday's market review - Copper recoils on Chile mine
deal to avert strike - Copper prices retreated on Wednesday, weighed
down by dwindling chances of a strike at the world’s biggest copper
mine. - more
Iron ore sell-off resumes, but stainless steel shines - Iron ore
futures fell on Thursday, with the Dalian benchmark hovering around a
more than four-month low hit earlier this week on concerns over steel
output controls in China and signs of economic slowdown in the world's
top metal consumer. - more
Major container ports in eastern China see worsening congestion after
COVID cases - Congestion off China’s top two container ports Shanghai
and Ningbo is worsening following the shutdown of a container terminal
in Ningbo where a COVID-19 case was detected this week. - more
China will likely succeed in crashing Australia’s iron ore price - You
may be confused thinking this is a good time to buy iron ore. After
all, Australian magic dust has dropped a quarter in price over the past
month. Ain’t it the idea of buying low (and selling high?) - more
Thyssenkrupp will decide on how it plans to further develop its steel
business - Thyssenkrupp will decide on how it plans to further develop
its steel business, Europe’s second-biggest, in 2022, Chief Financial
Officer Klaus Keysberg said on Wednesday. - more
Steel sector emissions must fall 75% under 2°C scenario - Carbon
emissions in the steel sector must fall by 75% from today’s levels to
limit global warming to within 2 degree Celsius (°C), says Wood
Mackenzie, a Verisk business. - more
The Secret to Strategic Sales Planning - Today,
sales staff can understandably get lost in the mire of data.
Simplifying the organization with accurate planning is the ultimate
goal. - more
Nickel closed Tuesday's trading
session at$8.59/lb ($18,930/tonne). Indicators at 6:00 am CST today show
nickel trading around $.02/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Tuesday and ended that session just below the 205,500 tonne level.
Shanghai traders gave up trying to lead LME nickel traders lower, and
decided to join the latter in closing higher overnight. LME traders, on
the other hand, are trading slightly lower this morning, as the $19,000
tonne level puts up some psychological resistance. The Dollar continues
to strengthen against the Euro, adding negative pressure, as it has the
entire month of August. Reuters quoted Ole Hansen, the head of
commodity strategy at Saxo Bank in Copenhagen, and we believe he hits
the hammer on the head in describing the market this month (so far
anyway). He stated "The market has run out of fuel to keep the rally
going, but at the same time the market still believes in the long-term
upside potential so that's keeping selling interest muted." Volatility
anyone? Stay safe out there and have a great hump day!
Average price of LME traded cash nickel
so far this month
- $8.73/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper recoils on Chile mine deal, firmer dollar - more
Tuesday's market review - Chile supply concerns help
copper bounce - Copper bounced on Tuesday as worries about supplies
from top producer Chile gathered pace, while concerns about Chinese
demand and a firmer dollar tempered optimism for higher prices. - more
Japan's FeNi producer hints at stainless steel recovery - Japanese
ferro-nickel producer Pacific Metals reported higher ferro-nickel
shipments in the April-June quarter, hinting at a recovery in domestic
and overseas stainless steel production. - more
Low supply continues to push up European stainless steel prices - The
prices of cold-rolled stainless steel in the European market have risen
by EUR 50/ton in the past week in early August due to the tight supply
situation. - more
Report: “Staggering recovery year” continues for metalworking industry
- Data from FMA's Q2 consumption report shows that fabrication, forming
job shops remain optimistic despite labor shortages, high steel costs -
more
Tesla confirms that 100% of its scrapped batteries are recycled and 0%
end up in landfills - Tesla’s business is built on the strength of the
company’s battery innovations. - more
Rs 4,077 Cr deep ocean mission for exploration: Govt in RS - The Centre
has approved the Deep Ocean Mission (DOM) to be implemented by the
Ministry of Earth Sciences at a total budget of Rs 4,077 crore for five
years during the period 2021-2026, the Rajya Sabha was informed on
Tuesday. - more
Jeff Bezos, Bill Gates and Michael Bloomberg join forces to mine for
raw materials in Greenland - KoBold Metals, a mineral exploration
company backed by Bill Gates, Jeff Bezos, Michael Bloomberg and Ray
Dalio, has entered into a joint venture with London-based mining firm
Bluejay. - more
Is there unrealised value in the majors? This Bridge Street guru suspects so - more
5 Minutes With ID: Scott Camp on the Disconnect Between Buyers,
Suppliers and Incentives - Atlas International Trade Group president
Scott Camp, a 23-year Fastenal leadership veteran, discusses blind
spots many distributors have with procurement and inventory management.
- more
Nickel closed Monday's trading
session at $8.44/lb ($18,610/tonne). Indicators at 6:00 am CST today show
nickel trading around $.05/lb lower. Stockpiles of nickel stored in LME licensed warehouses fell on Monday and started today's session
just over the 205,600 tonne level. Nickel is recovering some of
yesterday's loss this morning, but there doesn't seem to be much
enthusiasm behind the bounce. Yesterday's 3+% drop appears to have
mirrored Shanghai's 3+% drop from the prior evening. While the evidence
clearly shows the reverse is the norm, every once in awhile if SMM
makes an unusual move, LME traders follow suit, wondering if the latter
knows something they don't. Overnight SMM traders again ended lower,
but LME traders so far today, are not marching in step to the Chinese
beat. The Euro continues to fall against the U.S. Dollar, so the
negative pressure that puts on base metals traders, continues. Stay
safe out there and enjoy your day!
Average price of LME traded cash nickel
so far this month
- $8.77/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Chile supply concerns help copper bounce - more
Monday's market review - Demand doubts and dollar weigh on
copper - Copper prices fell to their lowest in more than two weeks on
Monday as a firm dollar and demand worries weighed on sentiment, but
losses were contained by the potential for a strike at the world’s
largest copper mine. - more
I-Shou Lin: Moderate price increase to meet growing stainless steel raw
materials prices - China has raised export tariffs on ferrochrome since
August 1 from 20% to 40%. Market participants are concerning whether it
will affect Taiwan’s stainless steel industry or not. - more
June Steel Shipments Up 33.3 Percent From Prior Year - The
American Iron and Steel Institute (AISI) reported today that for the
month of June 2021, U.S. steel mills shipped 8,031,516 net tons, a 33.3
percent increase from the 6,023,524 net tons shipped in June 2020. - more
Courtesy AISI - In the week ending on August 7, 2021, domestic raw
steel production was 1,872,000 net tons while the capability
utilization rate was 84.8 percent. Production was 1,476,000 net tons in
the week ending August 7, 2020 while the capability utilization then
was 65.9 percent. The current week production represents a 26.8 percent
increase from the same period in the previous year. - more
Getting to Know BEA’s International Statistics - Did the U.S. current
account deficit grow or shrink last year? What products make up the
largest share of U.S. goods exports? - more
How inventory errors lose money at metal fabrication shops - more
Nickel closed Friday's trading
session at $8.71/lb ($19,210/tonne). Indicators at 6:00 am CST today show
nickel trading around $.20/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Friday and started the week just over the 207,600 tonne level. Nickel
is tradiong sharply lower this morning. A stronger US Dollar over the
past week is adding negative pressure on base metals, but this does not
explain today's dip. Chinese demand is expected to slump as the pent up
demand from covid closures peak, but we suspect if this is true, things
will return more to a normal pace, and not necessarily 'slump'. China
is still attempting to slow down steel production in that country, but
its success in past years, does not leave us believing they will be
much more successful this time around. The Achilles heel overshadowing
the market is the wildfire spread of the Delta variant. This
nervousness seems to steer markets more on Monday's than any other day
of the week. Even Goldman is now forecasting a slowdown in China's growth, due to Delta's popping up in that country (more here).
What effect this will have on nickel and stainless steel consumption is
anyone's guess, but with the backlog of stainless steel orders to be
filled, and growth in the EV industry worldwide, the demand for the two
is, and will for an extended period at least, remain strong. With the
threat of covid potentially affecting the mining and logistics of
transporting nickel, and falling stockpile numbers, the supply
parameter seems a lot more iffy than demand - and that should keep
prices for both strong. Lots of reports below. Acerinox, reportedly the
worlds largest
producer of stainless steel, recently reported the second quarter of
2021 was its best since 2007. Stay safe out there and have a great
week. And don't let this week's Friday the 13th make you nervous.
Average price of LME traded cash nickel
so far this month
- $8.83/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Demand doubts and dollar weigh on copper - more
Friday's market review - Copper edges lower as U.S.
payrolls lift the dollar - Copper prices fell on Friday as solid U.S.
jobs data pushed the dollar sharply higher, making metals more
expensive for buyers with other currencies. - more
US’ stainless steel prices driven by tight supply - The current US
stainless steel inventory is at a low level. The production failed to
catch the rapid rebound of steel consumption after the impact of the
COVID-19 epidemic, leading to a serious imbalance between supply and
demand. - more
Zimbabwe bans chrome ore exports to boost ferrochrome industry -
Zimbabwe has banned the export of raw chrome with immediate effect in a
bid to support the domestic ferrochrome industry, minister of
information Monica Mutsvangwa said on Tuesday. - more
World Nickel King: He may be China's deepest hidden boss, earning 260 billion in the war! - more
Billionaire-backed mining firm to seek electric vehicle metals in
Greenland - Mineral exploration company KoBold Metals, backed by
billionaires including Jeff Bezos and Bill Gates, has signed an
agreement with London-listed Bluejay Mining to search in Greenland for
critical materials used in electric vehicles. - more
New EV battery designs unlikely to dampen metals demand, miners say -
Mining companies say they do not fear a plan by China’s CATL to make an
electric vehicle (EV) battery without lithium or other key metals
because the new design will have a limited range and more-powerful
rival battery technologies will gobble up minerals supply in coming
years. - more
Keough: Employment Problems Ahead for Businesses - By
some estimates, 1 in 4 workers is planning to look for opportunities
with a new employer once the threat of the pandemic has subsided. - more
Nickel closed Thursday's trading
session at $8.83/lb ($19,470/tonne). Indicators at 7:00 am CST today show
nickel trading around $.02/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Thursday and ended that session just under the 208,600 tonne level.
Nickel ended a three day skid Thursday, gaining back more than it had
lost on Wednesday. Reuters is reporting a fire took place at an
Indonesian nickel smelter, although information, at this time, is
slightly confusing. The Reuters reporter states it has seen a video
that shows a smelter engulfed in flame, while a spokesperson reports
"no production was impacted". It doesn't take a rocket scientist to
figure out, as the old song goes, one of these things is not like the
other". Chinese ports are closed again - although closures for Typhoons
are typically short. Unless its a really strong Typhoon. And finally,
we linked to a story because, honestly, we rarely get to post their
flag and the story is a tad weird, even for the nickel industry.
Scientists are saying the green explosion in the sky that freaked out
Turkey's residents, was caused by nickel in a meteor. Really - green?
Was the fire in Indonesia green? Sounds like a government cover up to
us. What do we call aliens? Little 'pink' men. We think not. Stay safe
out there this weekend, and have a relaxing and enjoyable few days off.
Average price of LME traded cash nickel
so far this month
- $8.82/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper gains as world's biggest mine preps for strike - more
Thursday's market review - Copper snaps four-day losing
streak - A bullish mood on U.S. markets pushed copper slightly higher
on Thursday, ending a four-day losing run triggered by concerns over
the demand outlook from top consumer China. - more
China’s
industrial slowdown killing the commodity rally - One of the biggest
drivers of the surge in metals prices this year, the world’s top
commodity consumer China, is showing signs of a slowdown in demand,
which could drag down copper and iron ore prices for the rest of the
year after a blistering rally in the first half. - more
Indonesia industrial park says no casualties after nickel smelter fire
- A fire broke out at a nickel smelter in Indonesia’s PT Indonesia
Morowali Industrial Park (IMIP), a spokesman for the industrial park
said on Friday, adding there were no reports of casualties or any
impact on production.A video seen by Reuters showed a nickel smelter at IMIP being engulfed in flames. - more
Typhoons Pose Latest Supply Chain Threat as China Ports Shut - Extreme
weather in China is becoming the latest challenge to global supply
chains, as a heavy typhoon season threatens to further delay goods
stuck at some of the world’s busiest container ports. - more
Murmansk boosts exports to $4.7 billion. Only 3% goes to neighboring
Norway - It is the powerful mineral and metal industry that
overwhelmingly dominates the economy of the Murmansk region. - more
Nickel Asia earns P2.7 billion on higher ore sales - Nickel Asia Corp.
incurred a 579% increase in its attributable net income for the first
six months of the year to P2.73 billion due to stronger ore sales
prices and sales volume. - more
How manufacturers can thrive when prices rise - Soaring material
prices. Labor shortages. Stressed employees. Who thought exiting the
pandemic would be as tough for fabricators as being in it? - more
Fastenal's Daily Sales Resume Strong Growth in July - Fastenal reported
its July sales results on Thursday, showing a strong daily sales growth
month for the distributor after an underwhelming June and May. - more
Residents
in Turkey are horrified as a strange explosion paints the sky bright
green. - Residents in Turkey are horrified as a strange explosion
paints the sky bright green. - more
Nickel closed Wednesday's trading
session at $8.73/lb ($19,249/tonne). Indicators at 6:00 am CST today show
nickel trading around $.05/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Wednesday and started today's session just shy of the 209,900 tonne
level. Nickel closed lower for a third consecutive session yesterday,
but the bear is having a hard time selling tis new found opportunity.
Stainless steel prices in China are choppy and volatile, but remain
near recent highs. Local 6500 members voted overwhelmingly to accept
the new contract with Vale in Sudbury, but company officials warn it
could take many weeks to get back to full production. Russia produced
5% less stainless steel in the first half of 2021 than it did in the
fist half of last year, and following Russia's lead, Brazil looks to
increase their mining tax on exports. Lot of debate about the failure's
of 'Just in Time' inventory control going on these days, and we link to
a video below that tells a different version. Stay safe out there and
have a great Thursday.
Average price of LME traded cash nickel
so far this month
- $8.84/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper falls on firm dollar, virus surge sparks demand fears - more
Wednesday's market review - Copper slips as dollar climbs,
focus turns to U.S. jobs data - Copper prices eased on Wednesday as the
dollar strengthened ahead of U.S. jobs data later in the week which is
expected to give more direction on the timing of stimulus tapering. - more
Strike is over: Local 6500 members vote 85% to ratify new deal -
Steelworkers Local 6500 members voted 85 per cent in favour of a new
deal with Vale, ending a strike that began June 1. - more
Vale warns Canada nickel ramp-up will stretch into next quarter - more
Russia's stainless steel output down in H1 y-o-y - According to the
Russian Federal State Statistics Service (Rosstat), Russia produced
approximately 100,000 tons of stainless steel in the first six months
of 2021, going down by 5% from the same period a year ago. - more
The case for nickel – a crucial metal in the Green Energy Revolution -
“Tesla will give you a giant contract for a long period of time if you
mine nickel efficiently and in an environmentally sensitive way,” said
Tesla CEO Elon Musk in July 2020. - more
Impending Brazil mining royalty hike confirms industry concerns - The
rapporteur of Brazil’s tax reform proposal has announced plans for
mining tax hikes, confirming industry concerns. The proposal by Celso
Sabino is expected to be voted soon and includes a royalties, or CFEM
tax increase to 5.5% from 4%. - more
“Founding Father” of Lithium-Ion Batteries Helps Solve Persistent
40-Year Problem With His Invention - Late 1970s, M. Stanley Whittingham
first explained the concept of rechargeable lithium-ion batteries. This
is the result of sharing the 2019 Nobel Prize in Chemistry. - more
Commodities bounce brings bonanza to Japan's trading houses - Japan's
trading houses are riding a commodities boom as major economies recover
from the pandemic, with Itochu this week reporting record quarterly
profit and three others raising their earnings forecasts. - more
Explainer: What China keeps in its secretive commodity reserves - For
the first time in a decade, China has released some of its strategic
metal stocks to try to dampen a price rally hurting manufacturers. It
has also released coal and imported corn reserves to cool prices, while
buying pork to prop up that market. - more
The Causes of 2021's Shortages (It's Not Covid) - 20 minute video here
Nickel closed Tuesday's trading
session at $8.79/lb ($19,375/tonne). Indicators at 6:00 am CST today show
nickel trading around $.02/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Tuesday and ended that session just below the 210,200 tonne level.
Nickel is trading higher this morning, but it is facing some headwinds.
The Euro is trading lower this morning, making base metals more
expensive to trade, and the news that Vale reached a tentative
agreement with its Sudbury union to end a two month plus strike, will
help alleviate some future supply issues. Not a lot of news today, but
our last article, at first glance is an eye roller, but once you read
it, you might be left scratching your head wondering if someone is
pulling your leg, or if you should invest in Malaysian weeds. And of course, stainless steel prices continue to
increase in Asia, as they are everywhere. Stay safe out there and happy
hump day!
Average price of LME traded cash nickel
so far this month
- $8.86/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - London copper rises on weak dollar, virus concerns dent demand outlook - more
Tuesday's market review - Copper skids on fears that Delta
variant could hit demand - Copper prices declined for a third session
on Tuesday on worries that the rapid spread of powerful COVID-19
variants could spur further lockdowns and curb demand for industrial
metals. - more
Vale reaches tentative agreement with Sudbury nickel miners' union - A
union representing striking workers at Vale SA’s nickel mine in
Sudbury, Canada reached a tentative agreement to settle an ongoing
labor dispute that saw 2,500 workers walk off their job on June 1,
hitting the Brazilian miner’s production. - more
Taiwan’s stainless steel market prices hit new high amid soaring raw
material prices - Driven by soaring international nickel and
ferrochrome prices and continuously rising export offers from Indonesia
Tsingshan, Taiwan’s upstream suppliers’ prices and market prices of
stainless steel rose greatly in August. - more
BHP to expand nickel operations to meet soaring demand - BHP will make
a final investment decision on a major expansion of the processing
plant at its Mt Keith nickel mine in Western Australia as it invests
further in battery metals to meet expected soaring demand. - more
Nickel 28: Ramu Asset Produces 16,578 Tonnes Contained Nickel In H1
2021 - Nickel 28 Capital Corp this morning revealed the operating
results for its flagship asset, the Ramu Nickel-Cobalt mine in Papua
New Guinea. - more
Plant-based metal? The mining industry could get a sustainable
makeover. - Malaysia’s Kinabalu Park, which surrounds Mount Kinabalu,
the 20th-largest peak in the world, is home to a nickel mine like none
other. - more
Nickel closed Monday's trading
session at $8.85/lb ($19,505/tonne). Indicators at 6:00 am CST today show
nickel trading around $.11/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell
sharply on Monday and ended that session just under the 211,100 tonne
level. The last time we saw stockpiles under the 200,000 level was
early February 2020, but we look to hit that level sometime this month.
Nickel is trading lower for a second day, and while the Reuters
reporter is blaming covid again, we suspect it has more to do with the
slowdown in China's growth. Either way, volatility could be the word
for the month, as the Delta variant spreads around the world. Another
ship carrying nickel ore was grounded in the Philippines over the
weekend. In this case, they know why and the crew stayed with the ship
after it grounded. Wonder if they ever identified the missing crew from
the loaded nickel ore ship they found grounded and abandoned earlier
this summer? Stay safe out there and enjoy your Tuesday.
Average price of LME traded cash nickel
so far this month
- $8.95/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper skids on fears about Delta variant hitting demand - more
Monday's market review - Copper dips on demand worries
after weak factory data - Copper prices slipped on Monday, weighed down
by worries about demand after weak factory data from the United States
and top metals consumer China. - more
Nickel Miners News For The Month Of July 2021 - Welcome to the nickel
miners news for July. The past month saw higher nickel prices and
plenty of good news from the nickel miners. - more
Bulk carrier with nickel ore aground, abandoned - Bulk carrier AMBITION
JOURNEY suffered engine failure and drifted aground in shallow waters
of Sulangan Island, Eastern Samar, Philippines, early in the morning
Aug 2. - more
Sibanye-Stillwater to acquire Eramet’s nickel processing facilities in
France - Sibanye-Stillwater announced that it has entered into an
exclusive put option agreement with French mining group Eramet SA for
the acquisition of 100% of the Sandouville nickel hydrometallurgical
processing facility, located in Normandy, France for €65million ($77m)
cash. - more
Courtesy AISI - In the week ending on July 31, 2021, domestic raw steel
production was 1,876,000 net tons while the capability utilization rate
was 85.0 percent. Production was 1,350,000 net tons in the week ending
July 31, 2020 while the capability utilization then was 60.3 percent.
The current week production represents a 39.0 percent increase from the
same period in the previous year. - more
Western Australia takes step-up in battery chemicals production -
Western Australia is preparing to take a bigger slice of the booming
global battery market, forecast to grow to $150 billion by 2030, as it
moves beyond mining lithium and nickel into chemical processing. - more
Will escalating metals prices start to wipe out fab shops? - It stings
when you’re told that you don’t matter. - I imagine that’s the way
metal fabricators feel right now as they face unprecedented metals
price inflation and even availability in some areas. - more
Nickel closed Friday's trading
session at $8.87/lb ($19,545/tonne). Indicators at 6:00 am CST today show
nickel trading around $.02/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Friday and ended August just over the 213,100 tonne level. That was a
one month decline of 18,378 tonnes and a YTD decline of 34,860
tonnes. Nickel prices are slightly higher this morning, most
likely courtesy a higher Euro. SMM nickel rose overnight, while Chinese
steel and stainless steel indexes took a hit on continued threats by
China to cut down on steel production. This is an ongoing threat and
honestly, we just don't see it. 2021 is not the first year that Chinese
steel companies have been threatened by their government. And yet,
except for the closure of some outdated plants and some restrictions on
electricity usage (more to cut down on pollution than curb production)
in years past, we have seen little success on the part of the Chinese
government to actually slow down their steel producers. And why do we
think they will have little luck now? Chinese metals site Mysteel is
reporting 304
cold rolled coil 2mm stainless steel sold by Taiyuan Iron and Steel Co
in Wuxi on July 30th was priced at 21,400 yuan. This compares to 14,200
yuan this time last year, with over 40% of the one year increase coming
in the
last three weeks. July, for stainless steel end users worldwide, was
brutal. For producers, a profitable month. Your
average material prices for July and how they compared to June are as
follows-
Nickel - $8.54/lb compared to $8.14/lb in June; Chromium - $4.50/lb
compared to $4.00/lb; Molybdenum - $18.80/lb compared to $17.83/lb;
Iron - steady at $1.04/lb. So how fast
is the Delta variant infecting
Americans? Last Friday the number of new infections recorded rose by
over 100,000 for the first time since February. It almost hit 100,000
the day before, so this was not a fluke. That same day, the seven day
average came in at 77,000. That's an incredible increase in just one
week. Florida recored the most new cases it has seen in a single day
since the pandemic started, and Saturday, recorded more new cases than
second place Texas, third place California, fourth place New York,
fifth place Missouri, sixth place Oklahoma, and seventh place Arizona -
all recorded 'combined'. That is one day, but it gives one an idea of
how
fast this new strain of covid is spreading. The immediate effect on
commodity prices will likely be minimal, with short term market
corrections possible on demand concerns. As Delta spreads worldwide,
and countries struggle with their economic recovery, balanced with the
health of their work force, we could potentially see more disruptions
to an already strained supply chain. Unless demand falls faster than
available supply, and honestly, we don't see that happening anytime
soon, then further supply
disruptions could mean even higher nickel prices. Either way, it could
be a very volatile month. China's manufacturing PMI came in at 50.4
today, implying production is barely growing in that country, so who
knows. Opinions, of course,
are like armpits. Everyone has a couple, they serve little purpose, and
only the bearer thinks they smell good. Please take ours with the
proverbial grain of salt. We welcome back P.A. Inc as our August banner
sponsor, and ELG Metals, who sponsored a side banner add for the entire
year. We thank them both for their support and they make it possible
for the news site to be updated daily in August. May this new month be
a prosperous, and healthy month for you and yours.
Average price of LME traded cash nickel
so far this month
-
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper claws higher on softer dollar, hopes for China stimulus - more
Friday's market review - Aluminium streaks to three-year
highs on Chinese power cuts - Aluminum prices climbed to the highest in
over three years on Friday on concern about reduced supplies in top
producer China after more power cuts in the metal-producing province of
Yunnan. - more
Shortages continue to disrupt US stainless steel market - Inventory
levels across the US stainless steel sector are extraordinarily low.
While steel usage rebounded quickly following the pandemic-induced
slump, steel production resumed at a much more gradual pace. - more
China raises export tariffs on steel products to push industrial
upgrading - China will adjust export tariffs on some steel products as
part of efforts to push upgrading and transformation of the industry. -
more
Iron ore sags on gloomy China demand outlook; stainless steel shines - more
Allegheny
Technologies to Cut 250 Jobs - Pittsburgh specialty metals producer
Allegheny Technologies (ATI) announced this week that it will cut 250
jobs--more than a third of its workforce. - more
(all
ton listings are metric tons = 2204.622 pounds ) Updated Monday thru
Thursday before 7 am CST, Friday version before 8 am CST - DisclaimerOriginal content and opinions copyright
www.estainlesssteel.com. All prices shown on
this page are indications only. Please note - for real time and
official LME
prices, LME requires a user subscribe to an authorized LME vendor.
Daily Nickel/Stainless Steel Briefing 
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Friday and started today just under the 194,500 tonne level. Cancelled
warrants came in very close to the 34% level on Friday. LME traders
have returned after a three day weekend, with a bang. Nickel jumped in
overnight trading at Shanghai, and LME traders are following suit. At
the moment, nickel is trading $500/tonne higher, but still has a ways
to go before it ends as high as it did in July. Stainless steel is also
trading higher in China, with all three stainless indexes we follow
moving higher - again lower than they ended July however. The Wyloo -
BHP bidding war in Australia for Canadian Noront Resources continues.
Lot of port bottleneck news under 'Other News' below. And finally, we
can't help take a swipe at the Chinese nickel workers in Indonesia, who
we haven't heard from since they were the first large group of
foreigners we recorded that were quarantined early in the covid crisis.
The leading theory for the origination of the pandemic is the Wuhan
food mart, where Chinese shoppers could buy just about any live animal,
diseased or not. The Chinese really need to get over their need to eat
any animal, including those that foreign countries recognize as
endangered. The rest of the world would appreciate it, as we are tired
of seeing our neighbors die because someone in Wuhan decided to try
wild bat soup. Last day of August and the unofficial end of summer in
the Northern Hemisphere. Stay safe out there and have a great day! 
Reports
Why Stainless Steel 
Taiwan’s Yusco raises export stainless steel prices for Sep - Yieh
United Steel Corp. (Yusco), a leading stainless steel mill in Taiwan,
announced its new prices for September today (August 30). - 
Shanghai stainless steel rises on nickel boost, output curbs - Chinese
stainless steel futures jumped more than 4% on Tuesday, backed by
strong nickel prices and supply concerns amid controls on high
energy-consuming projects in some regions that had failed energy
targets in the first half. - 
Wyloo hikes bid for Ring of Fire explorer Noront Resources, trumps BHP
offer - Wyloo Metals Pty Ltd. is increasing its bid for Noront
Resources Ltd., trumping BHP’s current offer, and proposing an
arrangement that would see the Ring of Fire exploration company remain
as a publicly traded entity. - 
POSCO Starts High-purity Nickel Production for Secondary Batteries -
New high purity nickel factory in Gwangyang to produce 20 thousand tons
per year to secure supply for cathode materials necessary for the
high-capacity batteries, capable for 500 thousand electric Motor
Vehicles - 
DoF still pushing through with mines privatization - The government is
still proceeding with a plan to privatize state-owned mines, with Basay
Mining Corp. being the first in line, as it looks for new sources of
revenues amid the prolonged pandemic, Finance Secretary Carlos G.
Dominguez III said. - 
Courtesy AISI - In the week ending on August 28, 2021, domestic raw
steel production was 1,873,000 net tons while the capability
utilization rate was 84.9 percent. Production was 1,476,000 net tons in
the week ending August 28, 2020 while the capability utilization then
was 65.9 percent. The current week production represents a 26.9 percent
increase from the same period in the previous year. -
No charges for Chinese nickel smelter workers who made croc soup out of
protected reptile (Video) - It seems viral footage depicting Chinese
workers skinning a wild crocodile and cooking its meat in soup is not
sufficient evidence to charge them for the killing of the protected
animal. - 
Other News
Morning Stats and Prices 
POSCO starts production of high-purity nickel for batteries - POSCO has
begun production of high-purity nickel - required for secondary
batteries - at SNNC. SNNC is a JV established with SMSP, the largest
nickel exporter in New Caledonia, in 2006, and was Korea’s first
specialized ferronickel manufacturer engaged in producing and selling
ferronickel (nickel 20%, iron 80%), the main component of stainless
steel, as well as other by-products. - 
Europe’s Steel Rally May Be Peaking While the U.S. Powers On - The
rally in European steel prices to eye-watering levels may finally be
running out of steam. - 
($18,756/tonne). Indicators at 6:00 am CST today show
nickel trading around $.08/lb 
During the next decade, millions of electric vehicle batteries will be
retired. What becomes of them? - Electric vehicles are expected to
flood the highways of rich countries as car firms and governments
commit to increasing their production. - 
Would you drink the water coming out of a municipal Wastewater
Treatment Facility? - “There’s a mental hurdle to get over of how
inherently gross this could be, but we know that this water is safe,
and we stand by our process.” - 
July 2021 crude steel production - World crude steel production for the
64 countries reporting to the World Steel Association (worldsteel) was
161.7 million tonnes (Mt) in July 2021, a 3.3% increase compared to
July 2020. - 
Japan asks WTO to establish panel to deal with China’s AD measures on
stainless steel products - According to the Japanese Ministry of
Economy, Trade and Industry (METI), Japan officially asked the WTO to
establish a panel under the WTO Agreement to resolve trade disputes
regarding China’s anti-dumping (AD) measures on Japan’s stainless steel
products, on the grounds that China’s measures are inconsistent with
international agreements. - 
China slashes steel exports to Australia by 50 per cent to ‘wean’
itself off nation’s iron ore industry - It’s the only thing keeping
Australia afloat. Now China’s moved to gut the iron ore market. - 
Madagascar mining minister resigns, citing online 'slander' -
Madagascar's new mining minister Brice Randrianasolo resigned late on
Thursday, citing online "slander" related to a legal case in which he
was previously involved. - 
WBMS January to June 2021 Metals Balances - The nickel market was in
deficit during January to June 2021 with apparent demand exceeding
production by 41.1 kt. In the whole of 2020, the calculated surplus was
92.7 kt. - 
Thyssenkrupp will decide on how it plans to further develop its steel
business - Thyssenkrupp will decide on how it plans to further develop
its steel business, Europe’s second-biggest, in 2022, Chief Financial
Officer Klaus Keysberg said on Wednesday. - 
Rs 4,077 Cr deep ocean mission for exploration: Govt in RS - The Centre
has approved the Deep Ocean Mission (DOM) to be implemented by the
Ministry of Earth Sciences at a total budget of Rs 4,077 crore for five
years during the period 2021-2026, the Rajya Sabha was informed on
Tuesday. - 
Zimbabwe bans chrome ore exports to boost ferrochrome industry -
Zimbabwe has banned the export of raw chrome with immediate effect in a
bid to support the domestic ferrochrome industry, minister of
information Monica Mutsvangwa said on Tuesday. - 
Murmansk boosts exports to $4.7 billion. Only 3% goes to neighboring
Norway - It is the powerful mineral and metal industry that
overwhelmingly dominates the economy of the Murmansk region. - 
Fastenal's Daily Sales Resume Strong Growth in July - Fastenal reported
its July sales results on Thursday, showing a strong daily sales growth
month for the distributor after an underwhelming June and May. - 
Residents
in Turkey are horrified as a strange explosion paints the sky bright
green. - Residents in Turkey are horrified as a strange explosion
paints the sky bright green. - 
Impending Brazil mining royalty hike confirms industry concerns - The
rapporteur of Brazil’s tax reform proposal has announced plans for
mining tax hikes, confirming industry concerns. The proposal by Celso
Sabino is expected to be voted soon and includes a royalties, or CFEM
tax increase to 5.5% from 4%. - 
Nickel 28: Ramu Asset Produces 16,578 Tonnes Contained Nickel In H1
2021 - Nickel 28 Capital Corp this morning revealed the operating
results for its flagship asset, the Ramu Nickel-Cobalt mine in Papua
New Guinea. - 
Sibanye-Stillwater to acquire Eramet’s nickel processing facilities in
France - Sibanye-Stillwater announced that it has entered into an
exclusive put option agreement with French mining group Eramet SA for
the acquisition of 100% of the Sandouville nickel hydrometallurgical
processing facility, located in Normandy, France for €65million ($77m)
cash. - 
Shortages continue to disrupt US stainless steel market - Inventory
levels across the US stainless steel sector are extraordinarily low.
While steel usage rebounded quickly following the pandemic-induced
slump, steel production resumed at a much more gradual pace. - 
