Nickel closed Tuesday's trading
session at $9.71/lb ($21,415/tonne). Indicators at 6:00 am CST today show
nickel trading around $.09/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose
slightly yesterday and started today's session just over the 54,600
tonne level. Reuters is crediting a better than expected China PMI
number as the reason for the increase in nickel's traded price this
morning. It read 49.4, better than last month, and better than
expected, but still below 50. We suspect it has more with traders
wanting to get back to the $10/lb level. Europe steel makers are
raising prices, although as one commentator put it "Will they stick?".
Summer unofficially end's this Friday for much of the northern
hemisphere, and the typical period for European vacations ends.
Yesterday we made the statement in the answer to our
question "Any metal that contains iron is ferrous”, which we were
advised by a few readers, as being incorrect. We quote one
correction from a member of the staff of the Nickel Institute (we didn't have time to ask permission to use the member's name),
but he would know far better than us - "Today, “ferrous” is defined
(ASTM A941) as “metals and alloys that contain iron as the principal
component”. That means more iron than any other element. So there
are some alloys such as 904L and 800 that were once classified by ASTM
as non-ferrous, but today are classified as “ferrous”. They
contain less than 50% iron, but more iron than any other single
element. A very fine point. But the standard
stainless steels (304, 316L, 430 etc.) have always been and continue to
be considered as “ferrous”." Another long time reader, and past
sponsor, stated "Which element is dominate in the chemistry is how I
read this question. Alloy 33 has more Cr than Fe, therefore it is a Cr
based alloy even though it is 30% Fe." So........ we apologize and
stand corrected. And we appreciate the readers who took the time to let
us know we were wrong. "If it is on the internet, it must be true"
regretfully, carries some truth, so we have crossed out this statement
in our archived copy of yesterday's entry. Stay safe out there and enjoy your hump day!
Average price of LME traded cash nickel
so far this month
- $9.99/lb
Reports
Reuters metals morning - Most base metals gain, but demand concerns linger - more
Tuesday's market review - Copper slides after Fed
growth warning triggers sell-off - Copper prices fell to their lowest
in more than two weeks on Monday after U.S. central bank chief Jerome
Powell warned of a painful period of slow economic growth and as
COVID-19 restrictions in top consumer China hit sentiment. - more
Taiwan’s major upstream stainless steel mills optimistic about market
recovery in Q4 - Due to the recent strong transaction prices in Foshan,
the most important stainless steel distribution center in China,
coupled with the stable nickel price, Taiwan’s major upstream stainless
steel manufacturers Yieh United Steel Corp. (Yusco) and Tang Eng Iron
Works Co., Ltd. expressed their optimism about the market recovery in
the fourth quarter of this year. - more
SunSirs: The Stainless Steel Market Was Sluggish as a Whole in August
Due to High Temperature Power Cuts - According to the price monitoring
of SunSirs, the price of stainless steel fell weakly in August. - more
New Capacity Roundup - August 2022 - Here is a selection of the major
steelmakers' latest production and capacity investments announced this
month. - more
The Suspect In The Nickel Licensing Mode Fraud Has Not Been Detained,
The Complainant Reports To The National Police's Propam - The suspect
in the alleged fraud case with the mode of processing a nickel mining
permit, Antonius Setyadi, has not been arrested and detained since
three years ago. - more
This Remote Mine Could Foretell the Future of America’s Electric Car
Industry - In this isolated town of about 100 people, dozens of
employees are at work for Talon Metals, drawing long cylinders of rock
from deep in the earth and analyzing their contents. - more
GM lining up suppliers for Quebec battery materials plant
- Common Motors is courting potential mining companions for its new
battery-materials plant in Bécancour, Que., as it really works by way
of early benchmarks resembling land acquisition and allowing for the
$500-million web site. - more ($500 million web site?)
Here’s how Tesla’s first battery cathode factory progress is going - more
Honda, LG Set to Build $4.4 Billion EV Battery Plant in U.S. - more
Ford will sharply increase car prices due to a doubling in the price of raw materials for batteries - more
Nickel closed Friday's trading
session at $9.80 ($21,600/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 started today's session just under the 54,600 tonne level.
Nickel fell another 3% overnight in China, but the LME has reopened
with a seeming yawn, as global equity markets recovered much of their
Friday loss on Monday. It is probable that had the LME been open
yesterday, it would have opened much lower, following the knee jerk
reaction of Friday's equity markets. But the holiday break yesterday,
gave the market time to take a breath and wait for market nerves to
calm. The warning of more pain to come statement by the Fed chairman is
still out there, so markets will enter an analytical period, trying to
figure out the best way to play the unknown ahead. Musk's statement he
wants to sell 20 million EV cars in 2030 (here), coming days after California's 2035 mandate (here),
will not deter investors from keeping nickel on their Christmas list.
And that forecasted market surplus of nickel has yet to reveal itself,
at least using LME inventory numbers, so we don't expect nickel prices
to slump much in the near future. We have been watching stainless steel
prices in China move north the last few days, and today, all those
gains evaporated. The only thing we see that might have caused this are
the new COVID lockdowns the country is implementing, which could be
spooking their markets again. Lots of news so we leave you with it.
Stay safe out there and have a great Tuesday!
Average price of LME traded cash nickel
so far this month
- $10.01/lb
Reports
Reuters metals morning - Base metals drop as COVID cases, U.S. rate-hike bets weigh - more
Monday's market review - Industrial metals prices
decline on prospects for U.S. rate hike - Base metals prices in
Shanghai fell on Monday on worries of slower economic growth and metals
demand after U.S. Federal Reserve Chair Jerome Powell signaled more
interest rate hikes. - more
European stainless steel market watching, waiting on energy uncertainty
- The stainless steel market in Europe remains subdued and with largely
flat prices, but participants are watching and waiting for clarity on
how the developing energy crisis will affect the fourth quarter,
sources told Fastmarkets on Friday August 26. - more
Taiwan’s stainless steel prices expected to keep flat for Sep -
Taiwan’s stainless steel prices were estimated to stop falling and keep
flat for September for four reasons. - more
Question of the day - Is a stainless steel bolt, of any type or
"grade", a ferrous or non ferrous bolt? We have covered this before,
but it continues to be one of the most misunderstood and misquoted,
industry facts? Any metal that contains iron is ferrous - no matter how
rust resistant it might be with the addition of chrome, nickel, or any
other non ferrous metal additive. (see August 31st correction) So nickel is non ferrous, but
stainless steel is ferrous.
Chinese Steel Sector Turned Into Profit and Ready for New Growth -
Steel mill profitability, which was negative in July, is back in
positive territory as S&P Global Commodity Insights reported
Chinese steel makers profits of around $50 per tonne of rebar in
August. - more
Chinese steel enterprises’ profits down 80.8 percent in January-July - more
MOC: Average steel price in China edge down on August 15-21 - more
Tangshan targets to cut crude steel output by 8.26 million mt in 2022 with major drop in H2 - more
Courtesy AISI - In the week ending on August 27, 2022, domestic raw
steel production was 1,747,000 net tons while the capability
utilization rate was 79.3 percent. Production was 1,872,000 net tons in
the week ending August 27, 2021 while the capability utilization then
was 84.8 percent. - more
Elon Musk tells Norway energy conference he is aiming to have Tesla's
self-driving technology be ready by year-end - Tesla Inc. Chief
Executive Elon Musk said Monday he is aiming to get the EV maker's
self-driving technology ready by year-end, and said he hopes it could
quickly be in wide release in the U.S. and even Europe depending on
regulatory approval, Reuters reported. - more
Nickel closed Friday's trading
session at $9.80/lb
($21,600/tonne). Indicators at 6:00 am CST today show
nickel is not trading as the LME is closed for their Summer Bank
Holiday. While the US Dow took a bath on Friday, falling over
1,000 points, but nickel closed only slightly lower. The announcement
by the Fed chairman on Friday that shook world markets, came a little
late to help or
hurt LME commodity trading. Shanghai nickel ended nearly 4% lower this
morning, while copper traded outside of the LME, is down over 3% this
morning. So unless something happens today, evidence seems to exist
that LME nickel could slump tomorrow. Stainless steel prices in China
continue to edge higher, and with nickel prices offering little
assistance, it would appear demand could be the primary reason. It's
Monday and the last partial week of August. Stay safe out there and
have a great week!
Average price of LME traded cash nickel
so far this month
- $10.01/lb
Reports
Reuters metals morning - Industrial metals prices decline on prospects for U.S. rate hike - more
Friday's market review - Copper retreats from 8-week
high after Powell warns about rate hikes - Copper prices pulled back on
Friday after touching their highest in nearly two months after the head
of the U.S. Federal Reserve doubled down on more interest rate hikes
and warned that it would be painful. - more
China’s stainless steel industry outlook in probable challenges - In
the first half of 2022, China’s Shanxi Taigang Stainless Steel Co.,
Ltd. produced crude steel with 6.02 million tons, including 2.14
million tons of stainless steel. - more
Chinese province neighboring Beijing expands COVID lockdown - more
EUROFER:
EU steel exports down 14% in first half - According to the EUROFER
report, in the first half of this year, flat products exports accounted
for 68 percent of finished product exports, while long products exports
accounted for the remaining 32 percent. - more
China’s power crisis: why is it happening and what does it mean for the economy? - China
is facing a power shortage due to heatwaves and drought, affecting the
Yangtze River basin, home to factories and a large population - more
Nickel closed Thursday's trading
session at $9.84/lb ($21,685/tonne). Indicators at 6:45 am CST today show
nickel trading around $.10/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Thursday and ended that session just below the 54,850 tonne level. As
the unofficial northern hemisphere summer comes to an end, industry
news continues to be on the quiet side. Nickel traders appear to be
more optimistic as the month end draws closer, with the $10/lb level
still maintaining its relevance. A stainless steel index we follow
overseas actually moved higher overnight, for the first time since the
2nd of this month. This index was reading over 100 in March and is
about 3/4 of that now. Power appears to remain the most immediate
threat to stainless steel producers in Europe. And Taiwan's Taigang
Stainless Steel reports profits for the fist six months of this year
fell over 57% YOY, with revenue up during the same period. It's the
weekend and one week away from college football. Stay safe out there
and have a relaxing - or exciting - or both, weekend!
Average price of LME traded cash nickel
so far this month
- $10.02/lb
Reports
Reuters metals morning - Copper hits near 2-month high on sliding stocks, energy crisis - more
Thursday's market review - Copper claws higher on
Chinese infrastructure hopes - Copper prices gained on Thursday on a
weaker dollar and after a new injection of stimulus in China that could
fuel infrastructure projects and boost demand. - more
Taigang Stainless Steel’s net profit down 57.51 percent in H1 - Shanxi
Province-based Taigang Stainless Steel Co., Ltd. (Taigang Stainless
Steel) issued its financial report for the first six months this year,
stating that it registered an operating revenue of RMB 50.351 billion
($7.35 billion) in the given period, up 6.4 percent year on year, ....
- more
Market Prices of Important Means of Production in Circulation (August
11-20, 2022) - In mid-August 2022, according to the monitoring of the
market prices of 50 kinds of important means of production in 9
categories in the national circulation field, the prices of 23 kinds of
products increased, 22 kinds decreased, and 5 kinds kept at the same
level, compared with that in early August 2022. - more
Taiwan’s stainless steel wire rod price expected to grow with global
nickel price rise - After prices of stainless steel wire rods decreased
many times this year, the stainless steel wire rod price in September
was expected to rise with recent stable raw material prices. - more
Gas supply woes paralyse Central European steel market - Uncertainty
is growing in the Central European steel market. Nevertheless, Polish
and Czech producers are likely to be hesitant to make further price
concessions, in the post-holiday period, due to soaring energy costs. -
more
Analysis: Forget showering, it's eat or heat for shocked Europeans hit by energy crisis - more
Nickel closed Wednesday's trading
session at $9.68/lb ($21,350/tonne). Indicators at 6:00 am CST today show
nickel trading around $.07/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Wednesday and started today's session just under the 55,100 tonne
level. Nickel closed at its lowest this month yesterday, but thanks to
a higher Euro, is getting a bump this morning. Business news is on the
light side this morning. See the article 'Stainless Steel Market
Summary in China" below. It's a new source and we have been monitoring
it a few weeks to see if it is reliable. It appears to contain some
good info for those who like to know what is going on in the China
stainless industry. LME cancelled warrants remain in the 12-14% range,
implying the big trading houses are still not 'playing the system'
since getting their fingers burnt during the March trading debacle. Stay safe out there and have a great Thursday!
Average price of LME traded cash nickel
so far this month
- $10.04/lb
Reports
Reuters metals morning - Base metals climb on China demand hopes, dollar retreat - more
Wednesday's market review - Aluminium rises on
smelter closures but grim demand outlook weighs - Aluminum prices rose
on Wednesday as smelter closures reduced supply, but analysts said that
any rally is likely to be curtailed by a looming economic slowdown and
its effect on metals demand. - more
Stainless Steel Market Summary in China - Heatwave leads to suspension
of high chromium production. China's steel industry is in depression
stage as reported. (14th Aug ~ 19th Aug) - Extreme heatwave sweep
around the earth. It seems that the heat fails to warm up the stainless
steel market. - more
Chinese Nickel Trader Lygend Readies $1 Billion IPO Launch, Sources Say
- Lygend Resources & Technology Co., a Chinese nickel producer and
trader, is planning to start taking investor orders for an initial
public offering in Hong Kong as early as September, according to people
with knowledge of the matter. - more
Global steel production down 6.5% on-year to six-month low in July:
worldsteel - Global crude steel production totaled 149.3 million mt in
July, down 6.5% year on year and down 5.9% on the month to the lowest
month level since February, according to World Steel Association data
published Aug. 23. - more
Nickel closed Tuesday's trading
session at $9.86/lb ($21,745/tonne). Indicators at 6:00 am CST today show
nickel trading around $.07/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Tuesday and ended that session just over the 55,200 tonne level. Nickel
took a heavy hit yesterday, with Shanghai markets following suit
overnight. No one reason can explain it - while a combination of
factors we have mentioned prior can. Pessimism still rules this
morning, and at least for the moment, nickel is trading under the
$21,600/tonne level. WSA released steel production numbers for July
yesterday. US stainless producers have posted their surcharges for
September. Stay safe out there and enjoy your hump day!
Average price of LME traded cash nickel
so far this month
- $10.06/lb
Reports
Reuters metals morning - Aluminium climbs on supply snags, but grim demand outlook weighs - more
Tuesday's market review - Supply concerns support
copper despite bleak economic outlook - Copper prices rose on Tuesday,
helped by low inventories, signs of improving demand in China and fears
that sky-high energy prices could force smelters to cut output. - more
July
2022 crude steel production - World crude steel production for the 64
countries reporting to the World Steel Association (worldsteel) was
149.3 million tonnes (Mt) in July 2022, a 6.5% decrease compared to
July 2021. - more
China’s steel inventories remain low amid relatively slow production,
destocking - China’s steel inventories at major trading hubs continued
to remain low as of mid-August, despite a marginal improvement in the
crude steel production in August after a decline for two straight
months. - more
President Jokowi Ensures Trade Balance Surplus between Indonesia, China
in 2022 - Indonesian President Joko Widodo (Jokowi) ensures that
the trade balance between Indonesia and China will be in surplus in
2022. - more
Glimpses of the Green New Deal - Whatever the short-term movements in
metals prices (there have been signs of weakness, reflecting recession
concerns), there are indications here and there of future squeezes to
come. - more
Nickel closed Monday's trading
session at $10.14/lb ($22,355/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
Monday and ended that session just below the 55,400 tonne level. Nickel
ended slightly higher on Monday, but the negative Nellie's are back in
charge today, with the trading price back below the $22,000 tonne level
at the moment. Chile based Antofagasta is suing the Biden
Administration to get back its Twin Metals nickel mining leases in
northern Minnesota. On one hand the Biden administration wants more
critical minerals mined in the United States, and on the other hand,
the Biden administration doesn't want anything built that potentially
harms the environment, i.e. mines. Energy appears to be the top news
item affecting the industry, especially in Europe and China. Both
appear to be caused by geo-political problems, Europe with the Russian
invasion of Ukraine, and China because of their spat with
Australia. The drive to cut emissions is also partly to blame and in
the years to come, will likely become a more global problem. Stay safe
out there and enjoy your Tuesday!
Average price of LME traded cash nickel
so far this month
- $10.08/lb
Reports
Reuters metals morning - Most base metals climb as energy crisis stokes supply concerns - more
Monday's market review - Uncertain demand prospects
undermine copper prices - Copper prices slipped on Monday as worries
about demand dominated sentiment, though sliding inventories provided
some support. - more
European stainless steel prices driven by rising energy costs - Europe
has a strong dependence upon energy imports. The prices of coal,
natural gas, and crude oil have risen since the Russia-Ukraine
conflict, resulting in a continuous hike in electricity prices. - more
Taiwan’s stainless steel looking forward to demand & prices rebound
in Q4 - The LME nickel inventory has dropped by roughly 5,800 tons
since July. The continued decrease led to a rebound in nickel prices,
which will help Taiwan’s stainless steel plants to take more orders and
consume their inventories. - more
Tsingshan Holding Group plans to build new stainless steel plant in
Zhejiang - Zhejiang Tsingshan Digital Technology Co., Ltd., a
subsidiary of Tsingshan Holding Group, announced plans to build a new
stainless steel plant in Zhejiang province with an annual capacity of
700,000 tons. - more
Impact of High Temperature on the Output of Nickel Sulphate - more
SMM Analysis of China Stainless Steel Imports and Exports in July - more
Courtesy AISI - In the week ending on August 20, 2022, domestic raw
steel production was 1,756,000 net tons while the capability
utilization rate was 79.7 percent. Production was 1,872,000 net tons in
the week ending August 20, 2021 while the capability utilization then
was 84.8 percent. - more
Meltdown on London Metal Exchange: Legal fight heats up after nickel
fiasco, when billions of pounds of business was cancelled after prices
spiked - It is not often the London Metal Exchange sets pulses racing
to anyone outside The Ring, which is not a Wagnerian opera cycle but
Europe's last open outcry trading floor. - more
Antofagasta sues U.S. in bid to revive Minnesota copper project -
Antofagasta Plc's Twin Metals subsidiary sued the U.S. government on
Monday in a bid to revive its proposed Minnesota copper and nickel
mine, which Biden administration officials had blocked this year over
concerns it could pollute a major recreational waterway. - more
Twin Metals sues feds over cancellation of mine leases near Boundary Waters - more
Building more mines? The devil is in the details - more
Nickel closed Friday's trading
session at $10.07/lb ($22,210/tonne). Indicators at 6:00 am CST today show
nickel trading around $.01/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Friday and started the last 'full' week of July just over the 55,700
tonne level. Nickel is trading quietly on the LME this morning, with
positive news being counter balanced with the less positive. China cut
rates again overnight, for the second time in as many weeks. Shanghai
nickel jumped over 3% on the news. But the Euro is tanking against the
U.S. Dollar, and that is putting a lot of negative pressure on base
metal prices. So, at least for the moment, the trading bears and the
bulls are apparently staring each other down. The average LME cash
nickel price is in danger of falling below the $10.00/lb level for a
second consecutive month. The word for the market today appears to be
'uncertainty'. Stay safe out there and have a great day!
Average price of LME traded cash nickel
so far this month
- $10.01/lb
Friday's market review - Copper heads for weekly
fall on bleak global growth outlook - Copper prices inched higher on
Friday but were set to end the week slightly lower as traders balanced
hopes for solid demand in China with pessimism about the global
economy. - more
SunSirs: Stainless Steel Prices Fell Weakly This Week (August 15-19) -
According to the price monitoring of SunSirs, stainless steel fell
slightly this week. As of August 19, the daily average price of spot
304/2B stainless steel flat plate was 14,805 RMB/ton, down 0.84% from
14,930 RMB/ton at the beginning of the week and down 15.99%
year-on-year. - more
China's stainless steel industry resilient: industry insiders - more
US decides to continue AD & CVD orders on corrosion-resistant steel
products from some countries - According to a notice by the US
International Trade Administration (ITA) on August 17, 2022, the US
Department of Commerce (USDOC) and the US ITA determined in their
sunset reviews that the withdrawal of the anti-dumping (AD) duty orders
on corrosion-resistant steel products from .....- more
Could Nickel price volatility herald a new era in Stainless Steel
Innovation – SASSDA - ONE of the key components of stainless steel is
nickel, which has recently felt the severe knock-on effects of the war
in Ukraine. - more
Metal output jumps 40% in H1 -
The country’s metallic output continued its double-digit growth in the
first half of the year, rising nearly 40 percent on strong prices of
most metals, the Mines and Geosciences Bureau (MGB) said. - more
Canada can make mining, manufacturing part of a green energy future -
The passage of the Inflation Reduction Act in the United States last
week could be one of the most significant pieces of legislation the
Americans have passed related to Canadian manufacturing and mining in
decades. - more
Nickel closed Thursday's trading
session at $9.89/lb ($21,795/tonne). Indicators at 7:00 am CST today show
nickel trading around $.02/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Thursday and ended that session just over the 55,900 tonne level.
Official LME prices yesterday, were nearly identical to Monday's, but
it closed lower than it did earlier in the week. Nickel has been
hovering either side of the $10/lb level for some time now, with
occasional bumps and dips on either side. Indonesia has figured it out.
First they had the rock and the world needed that rock. So the world
employed Indonesians to dig and ship that rock. Then the Indonesia
government said we want to make more money off this rock, so they taxed
the export. The world really needed this rock so they paid. Then the
government said, we want more jobs from this rock, so if you want our
rock, you have to process it here, and they banned the export of the
rock. So the world built many rock processing plants in Indonesia, and
all were happy once more. Then the Indonesia government said why are
we letting our processed rock ship out, when the end product can be
built here? So they said we will tax all the processed rock leaving our
country unless you build your plant to make your stainless steel or
electric car here in Indonesia. And what will happen when all the
world's manufacturers have bent the knee to Indonesia? Why they will
tax the exported stainless and EV's most likely. And so eventually it
appears, that nickel from Indonesia, or the profits thereof, will stay
in Indonesia, one way or the other. Stay safe out there and have a
great weekend!!
Average price of LME traded cash nickel
so far this month
- $10.11/lb
Reports
Reuters metals morning - Copper heading for weekly fall on bleak global growth outlook - more
Thursday's market review - Copper rises on hopes for
improved Chinese demand - Copper prices rose on Thursday for the first
time in a week as hopes for solid demand in China offset fears about
the pace of interest rate rises and slowing economic growth. - more
China's Tsingshan discussing sale of 20% of its Indonesia ferronickel
capacity - Caixin - China's Tsingshan Holding Group, the world's
biggest stainless steel maker, is in talks to sell about 20% of its
ferronickel capacity in Morowali, Indonesia, to state-owned China Baowu
Steel Group, Caixin reported on Thursday. - more
Stainless Steel Prices Fell due to Weak Demand and Power Rationing - more
Fujian's Ningde city to build China's largest stainless steel industry
base - In order to develop the largest stainless steel industry base in
China, on August 16, the Ningde government organized China's First
Stainless Steel Industry Innovation and Development Conference. This
conference lasted for two days in Fujian province. - more
EU HRC market sentiment turns gloomy on high stocks, poor demand -
European hot-rolled coil market witnessed bearish sentiment Aug. 17 due
to weak demand from end consumers and high stocks with distributors. - more
Indonesia
president wants Tesla to make electric cars in country - Bloomberg News
- Indonesian President Joko Widodo has urged electric vehicle (EV)
maker Tesla to manufacture its cars, as well as batteries, in the
country, in comments made to Bloomberg News on Thursday. - more
Indonesia May Impose Nickel Export Tax This Year, President Widodo Says - more
Nickel closed Wednesday's trading
session at $9.93/lb ($21,900/tonne). Indicators at 6:00 am CST today show
nickel trading around $.19/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell
slightly on Wednesday and were at 175,00 tonnes this morning. Nickel
bounced higher in the last few hours, but we are unable to find any
"reason" to explain the sudden move higher. It has erased earlier
declines and puts the price back in the region we have seen it trading
at for the last few days. News is light today, although the WBMS is
reporting the nickel market was in deficit for the first six months of
2022, albeit by less than 50 kt. Yesterday when we mentioned power
shortages different
countries were facing, we failed to mention the most immediate problem
Europe is facing. Before the war, Germany was getting over 55% of its
natural gas from Russian, and Europe as a whole, was buying around 40%
from Russia. Since Russia decided it was due for another land grab and
invaded
Ukraine, it has used its natural gas as a tool to combat European
sanctions (see Outokumpu concerns).
With winter approaching and demand set to increase, Europe has grown
far too dependent on a nation for energy that has reminded the world
yet again, that any 'new world order' for the 21st century remains an
unachieved, and some might easily claim, unobtainable goal. Stay safe out there and have a great day!
Average price of LME traded cash nickel
so far this month
- $10.13/lb
Reports
Reuters metals morning - Industrial metals prices fall on U.S. rate hike concerns - more
Wednesday's market review - Aluminium climbs on
smelter shutdown, others slide - Aluminum prices advanced on Wednesday
after news that a European smelter will close due to high power prices,
boosting worries about potential shortages. - more
Hong Kong exchange sees further headwinds after first-half profit drop
- The operator of the Hong Kong Stock Exchange flagged continued
pressures from global political tensions and other negative factors as
it posted a 27% fall in first-half profit on Wednesday. - more
Monsters of Rock: Much ado about nickel – why LME’s Russian ban won’t
shift prices - Experts say a ban on Russian nickel in the LME’s London
warehouses will do little to shift the goalposts as the market looks
for signs of positivity for battery metals. - more
January to June 2022 Metals Balances - (excerpt) The nickel
market was in deficit during January to June 2022 with apparent demand
exceeding production by 49.8 kt. In the whole of 2021, the calculated
deficit was 146.8 kt. - more
The new imperative for green commodities - Producers of steel,
aluminum, cement, kerosene, polypropylene, and other bulk commodities
need to decarbonize to meet net-zero goals. - more
Nickel closed Tuesday's trading
session at $10.07/lb ($22,210/tonne). Indicators at 6:00 am CST today show
nickel trading around $.01/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Tuesday and ended that session just over the 56,000 tonne level. Nickel
bounced slightly from its Monday plunge, and so far today, the market
appears to be quiet. The LME announced yesterday it was banning Russian
nickel from their UK warehouses. Power shortages, which has been a
problem for years in South Africa, has become an annual challenge for
China, and a new problem for Europe this year. The ramifications to the
individual economies and their metal producing and consuming industries
is obvious, while power shortages in years past has had a detrimental
effect on ferrochrome production in South Africa. China reports that
production of 300 series stainless in that country was 18.8% lower in
July, compared to July 2021. That is a huge drop in nickel consumption,
which makes us wonder even more about this forecasted surplus this
year. LME stockpiles of nickel are down over 7,000 tonnes from this day
last month. Stay safe out there today and have a great hump day!
Average price of LME traded cash nickel
so far this month
- $10.14/lb
Reports
Reuters metals morning - Aluminium climbs on smelter shutdown, fears of shortages - more
Tuesday's market review - Zinc hits two-month peak
as Nyrstar shutdown stokes supply fears - Zinc prices hit their
strongest in two months on Tuesday after production was suspended at a
Dutch smelter because of high power prices, stoking fears of shortages. - more
London Metal Exchange suspends Russian nickel from UK warehouses - The
London Metal Exchange on Tuesday banned Russian nickel from its
approved warehouses in Britain unless it was exported before July 20. -
more
EU distributors’ flats shipments down in January-June -
According to the latest report issued by the association of European
steel and metal distributors EUROMETAL, in the January-June period of
the current year steel shipments to end-user segments by European flat
steel service centers (SSCs) dropped by 1.1 percent year on year, after
increasing by 0.1 percent year on year in the January-May period. - more
China’s 300 series stainless steel production expected to rebound in
Aug - According to statistics, China’s stainless steel production
totaled roughly 2.37 million tons in July this year, dropping by 10.4%
compared to the preceding month and by 18.8% from the same month a year
earlier. - more
Will announced steel price hikes stick? - Even with optimism in the
metalworking industry and strong demand for products, no one is sure - more
Baowu Steel Group intends to acquire some stainless steel assets from
Tsingshan Holding Group - It was disclosed that Baowu Steel Group, the
largest crude steel producer in the world, might acquire controlling
stakes in part of Tsingshan Holding Group’s integrated production lines
in Morowali Industrial Park in Indonesia's Central Sulawesi province. -
more
Column: U.S. hits the EV accelerator to cut Chinese metals ties - The
Inflation Reduction Act (IRA) includes the "largest investment ever in
combating the existential crisis of climate change", according to
President Joe Biden, who will sign the bill into law later on Tuesday.
- more
Nickel closed Monday's trading
session at $9.99/lb ($22,030/tonne). Indicators at 6:00 am CST today show
nickel trading around $.13/lb higher.
Stockpiles of nickel stored in LME licensed warehouses rose for
a second day on Monday and ended that session just over the 56,300
tonne level. We posted a link yesterday but forgot to mention China is
experiencing power cuts again. Considering their steel industry was
already feeling the pressure of a slowing economy, this may afford them
some temporary cover, and help dwindle existing supplies. Or it could
just be another anchor slowing the ship. Either way, it will likely
affect their stainless steel production for the next month or so.
Reuters is reporting trading volumes on the London Metal Exchange
remain subdued, and were 40% lower in July. The Baltic Dry Index is
running at its lowest since January, but this is another of those
numbers we older guys won't let go, and mean far less than they once
did. Lot below so we leave you with it. Stay safe out there and have a
great day!
Average price of LME traded cash nickel
so far this month
- $10.08/lb
Reports
Reuters metals morning - Zinc hits two-month peak on fears of shortages after Nyrstar move - more
Monday's market review - Weak China data sparks
industrial metals sell-off - Industrial metal prices fell
on Monday as concerns about demand in China surfaced due to weak
economic data and a firmer dollar, but interest rate cuts by the
country’s central bank provided some support. - more
Commodities cool off as China’s economy shows signs of concern - more
China’s stainless steel inventory drops due to reduction in arrivals =-
According to statistics on August 11, China’s social inventories of
stainless steel have been dropping for three consecutive weeks, of
which the decrease in Foshan was the biggest, mainly the reduction in
arrivals. - more
China's Tsingshan considers selling Indonesian assets to Baowu - sources - more
SMM Exclusive: Tracking the Impacts of Power Rationing on Metals Industry amid High Temperatures - more
LME nickel volumes plunge with exchange still hostage to March trading
fiasco - The volume of nickel traded on the London Metal Exchange (LME)
dropped more than 40% in July as funds, consumers and producers
continued to shun the market - months after trade was suspended for
more than a week in March as prices dramatically spiked. - more
China’s crude steel output decreases by 6.4 percent in January-July -
In the January-July period of the current year, China’s outputs of pig
iron, crude steel and finished steel amounted to 510.9 million mt,
609.28 million mt and 776.5 million mt, decreasing by 3.6 percent, 6.4
percent and 4.6 percent, respectively, year on year, as announced by
China's National Bureau of Statistics (NBS). - more
Courtesy AISI - In the week ending on August 13, 2022, domestic raw
steel production was 1,742,000 net tons while the capability
utilization rate was 79.0 percent. Production was 1,872,000 net tons in
the week ending August 13, 2021 while the capability utilization then
was 84.8 percent. - more
Giga Metals, Mitsubishi to jointly develop Turnagain nickel deposit in
Canada - Junior Giga Metals and global trading and investment firm
Mitsubishi Corporation agreed on Monday to form a joint venture
company, Hard Creek Nickel Corp, to develop the Turnagain nickel-cobalt
deposit in northern British Columbia. - more
Nickel closed Friday's trading
session at $10.49/lb ($23,130/tonne). Indicators at 6:00 am CST today show
nickel trading around $.56/lb
lower. Stockpiles of nickel stored in LME licensed warehouses rose
slightly on Friday and started this week, just under the 56,200 tonne
level. Nickel ended Friday lower, and this caught Shanghai traders off
guard. After spending the week on the charge, Shanghai nickel fell 4%
overnight, with London's retreat continuing this morning, currently
down over 5% on the session. China surprised markets today with an
unexpected rate cut as released data shows the entire economy is
slowing in China (data release here).
Two key words in that last statement. "Slowing economy in China" is bad
news for commodities. "Surprised markets" typically become volatile
markets temporarily, reacting in knee jerk fashion. At the moment, we
are back to where nickel was trading during July, so we wouldn't pay
too much attention to the 'daily noise'. Stay safe out there and have a
great week.
Average price of LME traded cash nickel
so far this month
- $10.15/lb
Reports
Reuters metals morning - Weak China data sparks industrial metals sell-off - more
Friday's market review - Softer copper still set for
weekly gain on peak-inflation bets - Copper fell on Friday as the
dollar strengthened and data showed a decline in Chinese bank lending,
but prices were still set to end the week up 3% as bets that U.S.
inflation may have peaked powered a broad shift towards riskier assets.
- more
China expands power restrictions as heatwave drives demand to record
levels - Major manufacturing hubs such as Jiangsu and Anhui have
introduced power restrictions on some steel mills and copper plants - more
SunSirs: Stainless Steel Prices Ran Weakly and Steadily This Week - more
Billionaire Behind Big Nickel Short Plans to Sell Steel Assets - more
Deteriorating prices, inflation a 'double whammy' for North American
steel market: Stelco CEO - Deteriorating pricing and demand coupled
with inflationary pressure on input costs is a "double whammy" for
North American flat-rolled steelmakers, making this downturn different
from previous troughs, Stelco CEO Alan Kestenbaum said Aug. 11. - more
Jindal Stainless to set up green hydrogen plant - Jindal Stainless
Limited (JSL) has partnered with Hygenco India Private Limited to set
up a green hydrogen plant. - more
Nickel closed Thursday's trading
session at $10.69/lb ($23,565/tonne). Indicators at 6:40 am CST today show
nickel trading around $.04/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Thursday and started today's session just over the 56,100 tonne level.
After a couple of very positive trading days, nickel is trading quieter
today. Shanghai markets continued to trade higher overnight, for a
third consecutive day. Typically, we say Shanghai plays follow the LME
leader, but in this case, it appears Shanghai jumped the gun on their
Wednesday morning, and LME has been playing catch up since. Overnight
there, nickel was up over 4%, after jumps of 3.5% and 6% in the
preceding days. We will see if that ends today. News is a bit on the
pessimistic side today, but we give you what we find. European steel
production down, and Chinese construction steel production down and
expected to stay down for while. On the positive side, wholesale
inflation fell for the first time in two years. Some reports out
yesterday - producer price indexes for items you might be interested in
linked below. It's Friday and that means the weekend is right around
the corner. Next week we start the second half of August already (what
happened to the first half?). Stay safe out there and have an enjoyable
and relaxing weekend!
Average price of LME traded cash nickel
so far this month
- $10.11/lb
Reports
Reuters metals morning - Risk-on rally pushes copper towards a 3.5% weekly gain - more
Thursday's market review - Copper rises to 6-week
high on U.S. rate hike optimism - Copper prices hit a six-week high on
Thursday as bets the U.S. Federal Reserve will ease the pace of
interest rate rises pushed up riskier assets and weakened the dollar,
making dollar-priced metals cheaper for buyers with other currencies. -
more
European steelmakers cut production amid weak steel demand - A
number of European steelmakers have decided to cut production by idling
blast furnaces during the summer period, cutting production as steel
demand remains weak. - more
China's construction steel demand likely to remain low for rest of 2022
- China's domestic demand for construction steel is likely to remain
low for the rest of 2022, market participants told S&P Global
Commodity Insights, with the key indicator of excavator sales declining
for the fourth straight month in July. - more
Miners face supply chain overhaul to meet U.S. EV credit deadline -
Miners will struggle to expand operations in the United States in
record time to meet a deadline for sourcing key minerals domestically
or from select countries as set out by a bill likely to be passed on
Friday, companies and industry watchers said. - more
FED - The costs of the Great Inflation: More frequent and deeper
recessions - Inflation is at a 40-year high—as measured by either the
consumer price index or the personal consumption expenditures price
index. - more
U.S. Wholesale Inflation Fell in July for 1st Time in 2 Years - more
Nickel closed Wednesday's trading
session at $10.21/lb ($22,500/tonne). Indicators at 6:55 am CST today show
nickel trading around $.39/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose
slightly on Wednesday and ended that session just below the 56,300
tonne level. Inflation numbers out of the U.S., while still high, did
not grow in July, and that has traders betting the Fed may not need to
raise interest rates at all, or as high as earlier expected. Nearly
everything is trading higher today, after a hike yesterday. Inflation
has soured otherwise positive economic news, and some SKU's, like food
prices, continue to increase, while fuel prices decreased. Our update
is out late today due to an inability to connect to the internet and we
apologize for that. Stay safe out there and enjoy your Thursday!
Average price of LME traded cash nickel
so far this month
- $10.06/lb
Reports
Reuters metals morning - Copper rises to 6-week high on U.S. rate hike optimism - more
Wednesday's market review - Copper hits 5-week high
after U.S. data undershoots, dollar slides - Copper prices jumped on
Wednesday to the highest in over five weeks after data showed U.S.
inflation was weaker than expected, stoking hopes that interest rate
hikes would be less aggressive and easing fears of a recession. - more
Stainless demand weak, nickel prices to decline: Eramet - Nickel and
ferronickel prices are seen declining in the second half of the year
despite the expected favourable seasonality. - more
Even Ford's Electric F-150 Just Got a Massive Price Hike - It's
Ford's way or the highway. - Tesla’s Cybertruck isn’t the only EV truck
that just got a price hike: now, Ford says the fully electric model of
its flagship pickup, the F-150 Lightning, is also going to get a
substantial price hike, too. - more
Billionaires are Searching for ‘Green’ Minerals Under Greenland’s Melting Ice - more
Nickel closed Tuesday's trading
session at $9.82/lb ($21,655/tonne). Indicators at 6:00 am CST today show
nickel trading around $.10/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Tuesday and started today's session just over the 56,200 tonne level.
While nickel ended trading slightly higher using Reuters unofficial
numbers, 'officially' it ended lower to keep its August losing streak
intact. This morning shows no change. Inflation, Recession, Ukraine,
Taiwan, Covid, Monkeypox .... plenty of news out there to stress the
long term investor. But for many business', there has never been better
times. Prices and profits have, in some cases, never been higher. And
the potential is out there for many more to make the same claim. So
stay safe and have a great - and successful - hump day!
Average price of LME traded cash nickel
so far this month
- $'0.12/lb
Reports
Reuters metals morning - Copper prices dip on softened sentiment as China inflation picks up - more
Tuesday's market review - Copper prices get a boost
from improving data - Copper hovered near one-month highs on Tuesday as
improving demand prospects due to stronger than expected data from the
United States and top consumer China were reinforced by a lower dollar.
- more
US steelworkers union lauds bill’s focus on building North American
production - United Steelworkers union (USW) International President
Thomas Conway said on Monday the US climate, tax and health bill will
create new opportunities for US companies and union members. - more
Domestic Stainless Steel Output is Expected to Increase Slightly in
August - According to SMM survey, the domestic stainless steel output
in July totalled about 2.3705 million mt, down 273,800 mt or 10.35% MoM
and 18.76% YoY. - more
Analysis: BHP needs to pay more for EV, clean energy metals as it
returns to deal making - BHP must shell out more if it wants to snap up
assets like those of OZ Minerals - a play on the future of
electrification and decarbonisation, analysts and bankers said, after
the miner's unsolicited bid for the nickel and copper company was
rebuffed. - more
Indonesian Govt Criticized Over Tesla US$5 Bln Nickel Deal -
Indonesian Initiative for Sustainable Mining researcher Jannus TH
Siahaan in a statement on Tuesday criticized the government for giving
an international corporation a free pass to purchase Indonesian nickel
without having to take ecological responsibility. - more
Tesla's US$5 billion nickel supply deal won't reduce its reliance on China or advance its new EV tax credit eligibility - more
Botswana to produce battery metals - As electric vehicles are moving
steadily into the spotlight, Botswana is set to start producing battery
metals, an official said Monday. - more
Nickel closed Monday's trading
session at $9.81/lb ($21,625/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
Monday and ended that session, just below the 56,400 tonne level.
Stockpile numbers continue to slide, as does the traded price of
nickel. There have been six trading days concluded so far this month,
and every one of them have ended lower than the prior day. For the
calendar year, LME cash nickel is now trading flat. Not a lot of news
out there. Economic news for the U.S. is mixed, with inflationary
pressure overshadowing more positive factors. An article from the Fed
below discusses where we are at in the recession status. Stay safe out
there and enjoy your Tuesday!
Average price of LME traded cash nickel
so far this month
- $10.19/lb
Reports
Reuters metals morning - Copper gets helping hand from improving data - more
Monday's market review - Copper supported by hopes
interest rates may soon peak - Copper prices rose on Monday, supported
by rising imports of the industrial metal by top consumer China and on
hopes that interest rates may peak soon after rapid increases aimed at
curbing inflation. - more
World steel prices have moved from a protracted fall to growth - Steel
prices slightly up on maintenance shutdowns and China trade data. - more
China reduced steel exports in July by one million tons or 12% - In
seven months of 2022, China exported 40.073 million tons of steel,
which is 6.9% less than in the same period last year. - more
Courtesy AISI - In the week ending on August 6, 2022, domestic raw
steel production was 1,723,000 net tons while the capability
utilization rate was 78.2 percent. Production was 1,869,000 net tons in
the week ending August 6, 2021 while the capability utilization then
was 84.7 percent. - more
Are we in a recession (yet)? - It’s natural to want to know where you
stand in the economy and get ahead of any big changes. - more
Nickel closed Friday's trading
session at $10.06/lb ($22,180/tonne). Indicators at 6:00 am CST today show
nickel trading around $.17/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Friday and ended last week just over the 57,250 tonne level. Nickel
traders may be wondering if Shanghai knows something they don't, as
nickel there fell sharply overnight. We aren't seeing anything price
affecting in the news beyond the announcement by China it was extending
the military drills around Taiwan. Originally, they were to end Sunday.
OZ Minerals said no thank you to a $5+ billion dollar offer. If you had
money invested in Russian energy or banks on Friday, chances are
you're invested for the long term - story below. And Tesla, rumored to be
thinking about building EV cars in Indonesia, has apparently settled on
buying $5 billion worth of nickel from the country. $5 billion dollars
is a popular number today. Stay safe out there and have a great week!
Average price of LME traded cash nickel
so far this month
- $10.26/lb
Reports
Reuters metals morning - Copper edges higher as low inventories cushion recession worries - more
Friday's market review - Copper extends recovery as
global recession fears abate - Copper continued to rebound on Friday as
fears of a global recession eased after strong U.S. jobs data and
investors focused on low inventories and threats to supply. - more
Stable container demand in China expected to increase usage of
stainless steel - After shipping fees in China decreased, the situation
of container surplus kept increasing. Because the global market
reopened and port congestion gradually eased, the demand for logistics
and containers went down. - more
Outokumpu Q2 stainless steel deliveries fall 3.7% on year to 603,000 mt
- Stainless steel producer Outokumpu delivered 603,000 mt of stainless
steel in the second quarter, down 3.7% quarter on quarter, the company
said Aug. 4. - more
Tesla supplier Talon Metals on Manchin EV Bill, Tesla & more -
Tesla supplier, Talon Metals gave Teslarati an exclusive interview and
we talked about the Manchin EV Bill, Tesla and more. - more
Indonesia says Tesla strikes $5 bln deal to buy nickel products - media - more
Russia bans Western investors from selling banking, key energy stakes -
Russia has banned investors from so-called unfriendly countries from
selling shares in key energy projects and banks until the end of the
year, stepping up pressure in the sanctions stand-off with the West,
Reuters reports. - more
Nickel closed Thursday's trading
session at $10.08/lb ($22,230/tonne). Indicators at 6:50 am CST today show
nickel trading around $.03/lb higher. Stockpiles of nickel stored in LME licensed warehouses fell on Thursday and
ended that session just over the 57,600 tonne level. The media is
buzzing as the consequences from the Nancy Pelosi visit to Taiwan are
starting to be felt. So far, the reaction has been limited to a show of
force by their military, and sanctions against the U.S. As Australia
can tell the world, China, and possibly Chinese culture as a whole, put
a lot of stock in being respected. Their 'we butt out of your business,
you butt out of ours' philosophy is being severely tested by those who
like to, as we call it, 'poke the bear'. The newest sanctions against
China for their treatment of the Uyghur Muslims is another finger in
the eye, as was the U.S. Senator this week that voted no against Sweden
and Finland joining NATO because, according to him, China is our
"greatest foreign adversary". In light of Russia's ongoing activities
in Ukraine and past actions in the last two decades against other
neighboring countries, forcing these two neutral countries to seek the
protection of the NATO alliance, the insultive nature of this remark
becomes obvious. It's time the rhetoric from the political leaders
tones down. China's recent power outages, were caused in part, by their
past reaction to the Australian claim that covid was caused by an
accident at Wuhan, and embargoes they oput in place against Australian
coal in response. Thanks to a change in the Australian government,
those two are finally talking again. Insults, whether verbal or
physical, are in no ones best interest, and like orgasms, they don't
last very long. And yet, both can have long lasting consequences. World
leaders - we ask "Babes, barbs or bombs"? It's Friday! Stay safe out there and have a safe and great weekend.
Average price of LME traded cash nickel
so far this month
- $10.31/lb
Reports
Reuters metals morning - Copper firms as recession fears abate - more
Thursday's market review - Copper rebounds as weaker
dollar spurs short-covering - Copper and other base metal prices
rebounded on Thursday as the dollar weakened, forcing speculators to
scramble to buy back their bearish positions. - more
Column: Indonesian tax will shake up the nickel export mix again -
Indonesia's planning to reshape the global nickel market again. The
country is the world's largest and fastest-growing producer of nickel,
used in both stainless steel and electric vehicle (EV) batteries. - more
Stainless steel performance market remains uncertain after nickel
prices rise in past half month - The nickel futures prices at the
London Metal Exchange (LME) reached US$25,000/ton on August 1, which
grew by about 30% from the middle of July. - more
CISA mills’ daily steel output down 7.25 percent in late July - The
China Iron and Steel Association (CISA) has announced that in late July
(July 21-31) this year the average aggregate daily crude steel output
of large and medium-sized steel enterprises in China - all CISA members
- totaled 1.8902 million mt, down 7.25 percent compared to mid-July
(July 11-20) this year. - more
Nickel closed Wednesday's trading
session at $10.12/lb ($22,315/tonne). Indicators at 6:00 am CST today show
nickel trading around $.02/lb
higher. Stockpiles of nickel stored in LME licensed warehouses went
unchanged on Wednesday and started today at the 57,900 tonne level.
Nickel continues its slow price decline, thanks in part to the Pelosi
visit to Taiwan and the tension it has caused. China imported over 2/3
of its total imports of high
carbon ferrochrome in the first six months of 2022, from two countries
- 41+% from South Africa, and 25+% from Kazakhstan. The next quarter
came from India - 14+% and Zimbabwe - 12+%. About a dozen countries
made up the balance. It's the first Thursday of August. Stay safe out
there and have a great day!
Average price of LME traded cash nickel
so far this month
- $10.41/lb
Reports
Reuters metals morning - London copper falls for 4th session on demand worries - more
Wednesday's market review - Copper drops on China
tensions, prospect of more interest rate hikes - Copper prices eased on
Wednesday as worries about tensions between the United States and top
metals consumer China added to concern that more interest rate hikes
would depress global economic activity. - more
Will High-Carbon Ferrochrome Price End its Three-Month Long Downward
Trend approaching the Peak Season? - The prices of high-carbon
ferrochrome dropped sharply in July, and the average price in Inner
Mongolia fell 900 yuan/mt (Cr 50%) throughout the month. - more
Fuel for Thought: Commodity supercycle theory will struggle to pass
ultimate economic test - The commodity market boom is over. Energy,
metals and agriculture prices have all tumbled from their March peak on
inflationary recession fears amid a slew of economic warning signs, but
a commodity bust is far from inevitable. - more
China: Steel association sets up iron ore committee to push for
resources stability - The China Iron and Steel Association (CISA) plans
to set up a committee to strengthen research on iron ore, the official
website of the CISA said on Sunday, one week after the launch of a
state-owned mineral resources group. - more
OFAC designates steel giant MMK in latest Russian sanctions - The
Treasury Department’s Office of Foreign Assets Control (OFAC) on
Tuesday designated one of the world’s largest steel-producing companies
as part of its latest round of sanctions against Russia in response to
the country’s invasion of Ukraine. - more
Nickel closed Tuesday's trading
session at $10.23/lb ($22,545/tonne). Indicators at 6:00 am CST today show
nickel trading around $.02/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell
slightly lower yesterday ad ended that session at the 57,900 tonne
level. Nickel ended lower yesterday as traders wearily watched how
China might react to the visit by Nancy Pelosi to Taiwan. Nornickel has
raised its estimate of the nickel surplus this year to 75,000 tonnes,
and says most of that will be low grade nickel from Indonesia. Not sure
that is a number that is published so this may be one of those
predictions hard to prove wrong. And before you run out and buy a new
electric car based on the new program the Democrats are looking to
pass, read the article below about where the battery has to be made -
and why it probably isn't. Stay safe out there and have a great hump
day!
Average price of LME traded cash nickel
so far this month
- $10.63/lb
Reports
Reuters metals morning - London base metals slide on economic concerns, hawkish Fed views - more
Tuesday's market review - Copper falls as U.S.-China
tension pushes investors to safer assets - Copper edged lower on
Tuesday alongside global equities as tensions between China and the
United States and a run of weak economic data pushed investors to safer
assets. - more
Nornickel raises estimate of nickel surplus in 2022 to 75,000 tonnes,
affirms palladium forecast - Nornickel has raised its estimate for the
surplus on the nickel market in 2022 to 75,000 tonnes and expects this
surplus to widen to 150,000 tonnes in 2023. - more
Diggers & Dealers 2022: Chalice boss predicts big shortfall in
battery metals - Chalice Mining boss Alex Dorsch has echoed calls for
automakers and original equipment manufacturers to invest directly in
early-stage explorers, insisting there will not be enough metals to
meet the world’s decarbonisation goals. - more
BHP to boost nickel exploration spending amid EV boom - BHP Group will
increase its spending on nickel exploration over the next two years to
meet growing demand for the raw material used in making electric
vehicle batteries, the chief of its nickel operations said on
Wednesday. - more
Nornickel reduces nickel, palladium sales in H1 as supply chains
disrupted - Russian metals producer Nornickel said on Tuesday that its
sales of nickel, palladium and platinum fell in the first half of 2022
due to disrupted supply chains, while net profit rose by 18% to $5.1
billion due to a stronger rouble. - more
EV tax credits could stall out on lack of US battery supply - Rules
call for US-made batteries and domestically sourced minerals, but there
won’t be enough of either if EV sales take off. - more
Nickel closed Monday's trading
session at $10.73/lb ($23,650/tonne). Indicators at 6:00 am CST today show
nickel trading around $.27/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell
slightly on Monday and started today just over the 57,900 tonne level.
In Shanghai overnight, stainless steel futures rose by 3% while nickel
fell by 3%, an obvious disconnect. Markets around the world are wearily
watching how China might react if US House Majority Leader Nancy Pelosi
visits Taiwan. This political stunt proves nothing, and is just another
example of us "poking the bear". Our reaction to the Russian invasion
of Ukraine has told the world how we will respond to expansion thru
military aggression, so pretending to do otherwise, is wasting news
print. Your author, having grown up with the Soviet Union daily
threatening the free world with nuclear weapons, and daring the world
to say 'boo', who now looks to Europe as this same threat with a new
name, attacks a democratic neighbor, has to wonder when he missed the
memo that suddenly made this country a non issue and the Chinese our
new mortal enemy. Who has threatened us with a nuclear attack -
recently? Who has aggressively attacked multiple neighbors - just in
the 20th century? Can the same be said about the other? We think not.
Here are your averages for July. compared with June.
Nickel - $9.74/lb down from $11.71/lb; Chrome - $7.50/lb down from
$8.63/lb; Molybdenum - $16.38/lb down from $17.69/lb. Stay safe out
there and have a great Tuesday!
Average price of LME traded cash nickel
so far this month
- $10.90/lb
Reports
Reuters metals morning - Base metals fall as Taiwan tensions dent risk sentiment - more
Monday's market review - Copper hits 4-week high but
factory slowdown points to weak demand - Copper prices reached a
four-week high on Monday, helped by a weaker dollar, but prices fell
back later in the day as data revealed a global slowdown in
manufacturing activity, a key source of metals demand. - more
China's crude stainless steel output decreases in H1 y-o-y - According
to statistics from the Stainless Steel Branch of China Special Steel
Enterprises Association, China’s crude stainless steel output totaled
around 16.35 million tons in the first half of this year, decreasing by
5.26% compared to the same period a year ago. - more
Indonesia’s stainless steel semi-finished products & plate exports
slide in May m-o-m - According to statistics, Indonesia’s ferronickel
exports totaled around 483,000 tons in May, up by 6.5% compared to the
preceding month. The exports in the first five months of this year
amounted to roughly 2.12 million tons. - more
Russia’s stainless steel imports down 24 percent in June from May - In
June this year, Russia’s stainless steel imports totaled 28,950 mt,
down 24.0 percent compared to May, according to Russia-based SpetsStal
Association. - more
Not enough women: miners meet in Australia under a cloud after sexism
report - top mining conference kicked off in West Australia this week
with an address by global investor and economist Dambisa Moyo, the
first woman to deliver the keynote in the forum's three decade history.
- more
Courtesy AISI - In the week ending on July 30, 2022, domestic raw steel
production was 1,727,000 net tons while the capability utilization rate
was 78.4 percent. Production was 1,862,000 net tons in the week ending
July 30, 2021 while the capability utilization then was 84.4 percent. -
more
The History of Stainless Steel in the United States - more
Monday, August 1
Daily Nickel/Stainless Steel Briefing
Nickel closed Friday's trading
session at $10.75/lb ($23,700/tonne). Indicators at 6:00 am CST today show
nickel trading around $.29/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose
slightly on Friday and started August just under the 58,000 tonne
level. Nickel is sharply higher this morning, as bullish traders take
the price to a level we haven't seen since June. Was July the bottom of
the bear market? Or are traders now betting the forecasted nickel
surplus may not materialize for a second year? Indonesia is said to be
considering taxing all exported nickel. That is apparently the nickel
that they haven't already banned from being exported. It's a new month,
with new goals and expectations. Sales are higher everywhere, thanks to
higher prices masking any potential real organic growth. If your people
aren't hitting sales goals these days, and you have plenty of inventory
to sell, then something is seriously wrong. Stay safe out there and
have a great month.
Average price of LME traded cash nickel
so far this month
- $9.74/lb (average July)
Reports
Reuters metals morning - Copper rises on falling inventories despite weak China data - more
Friday's market review - Copper touches three-week
peak on U.S. rates, supply worries - Copper prices touched their
highest levels in three weeks on Friday amid renewed supply concerns
and after U.S. central bank authorities signaled slower interest rate
rises. - more
China’s stainless steel output down 5.26 percent in H1 - In the first
half of this year, China’s stainless steel output amounted to 16.354
million mt, down 908,000 mt or 5.26 percent year on year, according to
the Stainless Steel Council of China Special Steel Enterprises
Association (CSSC). - more
Steel industry in for a new phase of evolution - more
SunSirs: Stainless Steel Prices Fell Weakly in July - more
Acerinox Q2 stainless steel output drops 8% on year - Spanish stainless
steel group Acerinox’s second quarter melt shop output fell 8% year on
year to 601,000 mt as demand for inventory building slowed into the
third quarter, the company reported July 28. - more
Indonesia to issue nickel export tax rules in Q3 -official -
Indonesia plans to issue a nickel export tax policy in the third
quarter of the year, as authorities seek to boost revenue from exports
while encouraging more domestic production of higher-value products, a
senior official said on Monday. - 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
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Daily Nickel/Stainless Steel Briefing 
($21,415/tonne). Indicators at 6:00 am CST today show
nickel trading around $.09/lb 
higher. Stockpiles of nickel stored in LME licensed warehouses rose
slightly yesterday and started today's session just over the 54,600
tonne level. Reuters is crediting a better than expected China PMI
number as the reason for the increase in nickel's traded price this
morning. It read 49.4, better than last month, and better than
expected, but still below 50. We suspect it has more with traders
wanting to get back to the $10/lb level. Europe steel makers are
raising prices, although as one commentator put it "Will they stick?".
Summer unofficially end's this Friday for much of the northern
hemisphere, and the typical period for European vacations ends.
Yesterday we made the statement in the answer to our
question "Any metal that contains iron is ferrous”, which we were
advised by a few readers, as being incorrect. We quote one
correction from a member of the staff of the Nickel Institute 
Reports
Shanghai Metals Market
London Metals Market
Taiwan’s major upstream stainless steel mills optimistic about market
recovery in Q4 - Due to the recent strong transaction prices in Foshan,
the most important stainless steel distribution center in China,
coupled with the stable nickel price, Taiwan’s major upstream stainless
steel manufacturers Yieh United Steel Corp. (Yusco) and Tang Eng Iron
Works Co., Ltd. expressed their optimism about the market recovery in
the fourth quarter of this year. - 
New Capacity Roundup - August 2022 - Here is a selection of the major
steelmakers' latest production and capacity investments announced this
month. - 
The Suspect In The Nickel Licensing Mode Fraud Has Not Been Detained,
The Complainant Reports To The National Police's Propam - The suspect
in the alleged fraud case with the mode of processing a nickel mining
permit, Antonius Setyadi, has not been arrested and detained since
three years ago. - 
This Remote Mine Could Foretell the Future of America’s Electric Car
Industry - In this isolated town of about 100 people, dozens of
employees are at work for Talon Metals, drawing long cylinders of rock
from deep in the earth and analyzing their contents. - 
GM lining up suppliers for Quebec battery materials plant
- Common Motors is courting potential mining companions for its new
battery-materials plant in Bécancour, Que., as it really works by way
of early benchmarks resembling land acquisition and allowing for the
$500-million web site. - 
Слава Україні! - 
Question of the day - Is a stainless steel bolt, of any type or
"grade", a ferrous or non ferrous bolt? We have covered this before,
but it continues to be one of the most misunderstood and misquoted,
industry facts? 
Global steel production down 6.5% on-year to six-month low in July:
worldsteel - Global crude steel production totaled 149.3 million mt in
July, down 6.5% year on year and down 5.9% on the month to the lowest
month level since February, according to World Steel Association data
published Aug. 23. - 
Could Nickel price volatility herald a new era in Stainless Steel
Innovation – SASSDA - ONE of the key components of stainless steel is
nickel, which has recently felt the severe knock-on effects of the war
in Ukraine. -
Metal output jumps 40% in H1 -
The country’s metallic output continued its double-digit growth in the
first half of the year, rising nearly 40 percent on strong prices of
most metals, the Mines and Geosciences Bureau (MGB) said. - 
Canada can make mining, manufacturing part of a green energy future -
The passage of the Inflation Reduction Act in the United States last
week could be one of the most significant pieces of legislation the
Americans have passed related to Canadian manufacturing and mining in
decades. - 
London Metal Exchange suspends Russian nickel from UK warehouses - The
London Metal Exchange on Tuesday banned Russian nickel from its
approved warehouses in Britain unless it was exported before July 20. -
Jindal Stainless to set up green hydrogen plant - Jindal Stainless
Limited (JSL) has partnered with Hygenco India Private Limited to set
up a green hydrogen plant. - 
FED - The costs of the Great Inflation: More frequent and deeper
recessions - Inflation is at a 40-year high—as measured by either the
consumer price index or the personal consumption expenditures price
index. - 
Analysis: BHP needs to pay more for EV, clean energy metals as it
returns to deal making - BHP must shell out more if it wants to snap up
assets like those of OZ Minerals - a play on the future of
electrification and decarbonisation, analysts and bankers said, after
the miner's unsolicited bid for the nickel and copper company was
rebuffed. - 
Botswana to produce battery metals - As electric vehicles are moving
steadily into the spotlight, Botswana is set to start producing battery
metals, an official said Monday. - 
Outokumpu Q2 stainless steel deliveries fall 3.7% on year to 603,000 mt
- Stainless steel producer Outokumpu delivered 603,000 mt of stainless
steel in the second quarter, down 3.7% quarter on quarter, the company
said Aug. 4. - 
Acerinox Q2 stainless steel output drops 8% on year - Spanish stainless
steel group Acerinox’s second quarter melt shop output fell 8% year on
year to 601,000 mt as demand for inventory building slowed into the
third quarter, the company reported July 28. - 
