Nickel closed Wednesday's trading
session at $10.77/lb ($23,750/tonne). Indicators at 6:00 am CST today show
nickel trading around $.18/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Wednesday and ended that session just under the 66,800 tonne level.
After another bullish day yesterday, nickel has started the final day
of the first half of 2022 on the down side. Apparently the news of the
sanctions on Vlad was fairly new when we posted it yesterday and the
sudden spike in nickel prices had to do with trader confusion on what
impact this may have on Norilsk. As it is becoming evident this is not
against Norilsk, the market has quieted. More on the sanctions below,
and an interesting article on the LME debacle of March. And Merafe
announces the price for European ferrochrome for the third quarter is
set at $1.80/lb. Stay safe out there and enjoy the last day of June.
Average price of LME traded cash nickel
so far this month
- $11.79/lb
Reports
Reuters metals morning - Copper poised for worst quarter since March 2020 on growth fears - more
Wednesday's market review - Copper prices hover near
16-month lows on demand fears - Copper prices held near 16-month lows
on Wednesday as investors weighed the risk that rapid interest rate
rises will reduce global economic growth and metals demand. - more
Explainer: Nuts and bolts of the LME's cancelled nickel trades legal
case - Hedge fund Elliott Associates and Jane Street Global Trading are
suing the London Metal Exchange for up to $500 million after the LME
cancelled nickel trades on March 8 when prices soared to record highs
above $100,000 a tonne in chaotic trade. - more
LME examining UK's sanctions on Nornickel boss Potanin - more
Merafe Resources : Ferrochrome price announcement for the third quarter
of 2022 - Shareholders of the Company are advised that the European
benchmark ferrochrome price for the third quarter of 2022 has been
settled at 180 US cents per pound, a 16.7% decrease from the second
quarter of 2022. - more
New Capacity Roundup - June 2022 - Here is a selection of the major
steelmakers' latest production and capacity investments announced this
month. - more
UK sanctions Russia's 'second richest' man, an oligarch known as
'Nickel King,' over Ukraine war - The UK on Wednesday slapped sanctions
on one of Russia's richest men — an oligarch known as "Nickel King" —
over Moscow's more than four-month-long war with Ukraine. - more
Yacht of the richest Russian oligarch anchored in Dubai - more
Nickel closed Tuesday's trading
session at $10.51/lb ($23,180/tonne). Indicators at 6:00 am CST today show
nickel trading around $.40/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Tuesday and ended the day just over the 67,100 tonne level. Nickel has
recently jumped, from trading under the $23,000/tonne level, to
currently over the $24,000 tonne level. China announced it is reducing
quarantine times for covid patients, suspected cases, and those
entering the country. While it has affirmed its zero case policy, this
softening in its practice is seen as positive for their economy.
Yesterday, we reported Vladimir Potanin was taking his ex wife back to
London court, and in response, Britain slapped new sanctions on
Vladimir. Stay safe out there and have a great hump day!
Average price of LME traded cash nickel
so far this month
- $11.82/lb
Reports
Reuters metals morning - Copper dips as economic slowdown fears sap sentiment - more
Tuesday's market review - Copper slides on dollar
gains, recession worries - Copper prices slipped on Tuesday as the
dollar rose and recession concerns were back in focus, but hopes for
stronger demand after top consumer China relaxed its COVID-19
quarantine mandates provided some support. - more
JPMorgan exits nickel saga as tycoon shrinks ‘big short’ - JPMorgan
Chase & Co. no longer has any exposure to the nickel bet that
rocked global metals markets earlier this year, after a drop in prices
on the London Metal Exchange allowed the tycoon at the center of the
squeeze to exit his positions with the bank. - more
How will the Supply Pattern Change amid the Intensive Production
Reduction Plans of Stainless Steel in July - According to SMM research,
due to the high cost of stainless steel and the high in-plant
inventories of steel mills, many steel mills suffered great losses,
hence they intensively planned to reduce the production. - more
US to raise to 35% tariffs on certain steel, aluminum imports from
Russia - The US will raise tariffs to 35% on certain steel and aluminum
products imported from Russia in a move that will affect 570 different
groups of products across various sectors, according to a White House
proclamation June 27. - more
Britain sanctions Russian oligarch Vladimir Potanin - more
The $300 million, 290 foot-long super yacht of Russia's wealthiest oligarch has been spotted docked in Dubai - more
London will violate WTO rules in an attempt to prevent the flow of
cheap steel imports - Boris Johnson risks breaking international law in
an attempt to protect the UK steel industry by extending and expanding
import duties on rolled metal. - more
UK Prime Minister indicates steel import safeguards will be extended - more
Nickel closed Monday's trading
session at $10.39/lb ($22,900/tonne). Indicators at 6:00 am CST today show
nickel trading around $.28/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose on
Monday for the first time this month, and ended that session just over
the 67,300 tonne level. Nickel is on the rise for a second consecutive
day. Not really seeing any good reason for the bullish turn, so feel
free to make one up. Considering we were closing in the $29,000 tonne
range earlier in the month, Friday's close in the low $22,000 tonne
range may have spooked the bulls into risk taking. US Durable Goods
Orders were better than expected, Americans are paying $10,000 more
this year for an electric car than last year, and Vladamir Potanin is
taking his ex back to a London court to force her to give back some of
the billions an earlier court gave her in their divorce. Stay safe out
there and have a great day!
Average price of LME traded cash nickel
so far this month
- 11.87/lb
Reports
Reuters metals morning - Copper prices rebound on China stimulus optimism, firm equities - more
Monday's market review - Copper steadies, but
recession fears dominate mood - Copper prices steadied on Monday as
sentiment improved after top consumer China eased COVID restrictions
and the dollar slipped, but fears of a recession, rising prices and
higher interest rates weighed on industrial metals. - more
SMM Insights on Nickel Sulphate Raw Material Market that You Cannot
Miss - As the most advantageous raw material for the production of
nickel sulphate, why does the price of nickel hydrometallurgy
intermediate products keep falling? - more
Chinese steel enterprises’ profits down 64.2 percent in Jan-May - In
the January-May period this year, of the 41 industrial sectors in
China, 16 witnessed year-on-year increases in gross profit, while 24
saw decreases in gross profit, with one sector shifting from a loss to
a profit, as announced by China's National Bureau of Statistics (NBS).
- more
SunSirs: Stainless Steel Rose First and Then Fell This Week (June 20-24) - more
Mining firms poised to lead capital raisings in Canada, TSX CEO says
- Mining companies seeking to accelerate exploration of scarce
critical minerals are set to lead capital raisings in Canada this year,
the chief executive officer of the Toronto Stock Exchange said on
Monday, as sectors such as technology take a back seat amid market
volatility. - more
World - Race to the Bottom: Deep Sea Mining Is the Next Frontier - To
power the energy revolution, nations have stripped their lands for the
metals crucial to build everything from Teslas to wind turbines. - more
Courtesy AISI - In the week ending on June 25, 2022, domestic raw steel
production was 1,750,000 net tons while the capability utilization rate
was 80.2 percent. Production was 1,844,000 net tons in the week ending
June 25, 2021 while the capability utilization then was 83.0 percent. -
more
Russia’s Richest Man to Take Divorce Fight to UK Top Court - Vladimir
Potanin, Russia’s richest man, will take his legal battle with his
ex-wife to the UK’s top judges in one of the world’s biggest divorce
fights. - more
Nickel closed Friday's trading
session at $10.15/lb ($22,375/tonne). Indicators at 6:00 am CST today show
nickel trading around $.27/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Friday and started the week just over the 66,900 tonne level. After a
week that saw nickel fall nearly 13%, the price is trading higher to
start the final week of June. The average cost of LME cash nickel is
trading under the $12/lb level for the first time since February, when
it averaged $10.95/lb. More reports posted today than news. Four
working days left in the first half of 2022. Stay safe out there and
have a great week.
Average price of LME traded cash nickel
so far this month
- $11.91/lb
Reports
Reuters metals morning - London copper gains as China's easing COVID curbs lift demand hopes - more
Friday's market review - Copper heads for worst
weekly loss in a year, nickel and tin plunge - Copper prices were on
Friday set for their biggest weekly fall in a year, down around 6.5%,
as investors worried that efforts by central banks to stem inflation
will stifle global economic growth and reduce demand for metals. - more
HKEX’s London Metal Exchange names Oliver Wyman to review nickel
trading chaos amid investor lawsuits - Independent review will run
until December and examine issues that forced the bourse to suspend
nickel trading in March - more
China’s stainless steel imports & exports statistics in May &
Jan-May - According to statistics, China’s stainless steel imports
totaled around 230,000 tons in May this year, dropping by 3.8% compared
to the previous month and also sliding by 24.1% from the year-ago
period. - more
SunSirs: Stainless Steel Rose First and Then Fell This Week (June 20-24) - more
The Import Volume of Ferrochrome in May Fell by 37% Year-on-Year, The Demand Remaining Weak amid Sufficient Supply - more
‘Copper, nickel, and gold’ have the best investment potential this year
– Brent Cook - As we head into a ‘recapitulation’ stage for
commodities, copper, nickel, and gold will be the best assets to own,
said Brent Cook, Founder of Exploration Insights. - more
Recovery in China could hold the key to global steel price fortunes -
The downward trajectory of global steel prices, for both flat and long
products, continued in June. Most steel producers, worldwide, will go
into the traditional summer period – a seasonally slow time of year –
with a sense of trepidation that the bottom of the current price cycle
has yet to be reached. - more
Nickel is a key element of electric vehicles — but mining it takes an
environmental toll - Making the most of already mined elements can help
meet future demand while reducing carbon emissions - more
Nickel closed Thursday's trading
session at $10.94/lb ($24,110/tonne). Indicators at 7:00 am CST today show
nickel trading around $.55/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Thursday and started today's session just below the 67,300 tonne
level. Stockpile numbers have fallen more so far this month, than they
have since the nickel trading debacle of mid March. Cancelled warrants
remain in the 13% area, so we think we are getting a truer picture of
what is actually happening out there. If you went to bed with nickel
trading in the $24,000/tonne range and woke up this morning with it
trading in the $22,000 tonne range, they did not eliminate the number
23 while you were sleeping. Nickel traders just zipped right thru it.
Base metals in general are in a free fall today, and nickel is no
different. Not sure how much the bears are still holding after March,
but if they are, they are cashing in this week. Speaking of the mid
March debacle, LME has reportedly hired Oliver Wyman Consultancy to do
an independent review of how it botched, uh-huh, handled the crisis. A
federal study was released yesterday, stating that mining in parts of
northern Minnesota pose a serious environmental risk. The proposed Twin
Metals nickel mine is in this area. Stay safe out there and have a
great weekend!
Average price of LME traded cash nickel
so far this month
- $12.06/lb
Reports
Reuters metals morning - Copper heads for worst weekly loss in a year, tin plunges - more
Thursday's market review - Copper tumbles to
16-month low as recession fears grow - Copper prices fell to a 16-month
low on Thursday as fast-rising interest rates and weak economic data
fanned fears of a global slowdown that would reduce demand for metals.
- more
Global stainless crude steel production down by 3.8% in Q1 y-o-y -
According to the latest data released by the International Stainless
Steel Forum (ISSF), in the first quarter of this year, the global
output of stainless crude steel reached 14.45 million tons, .... - more
LME appoints consultancy to review chaotic nickel suspension - The
London Metal Exchange said on Thursday it had appointed management
consultants Oliver Wyman to carry out an independent review of the
events that led to a week-long suspension of nickel trading in March. -
more
China crude steel products falls 3.5% on May, 2021 to 96.6Mt -
Worldsteel reported crude steel production in China at 96.6 million
metric tonnes, 3.5% lower than in May, 2021. - more
European steel prices slide to pre-war levels - European steel coil
prices continued their downward slide, in May and early June. Service
centres and distributors refrained from buying, fearing further price
erosion. Mills sought orders, in the face of reduced demand. - more
India: Finished long stainless steel production falls 5%, m-o-m, in May
- India's production of finished long stainless steel products was
recorded at 58,000 t in May'22, down 5% as against 61,000 t in Apr and
total production for Jan-May stood at 310,000 t, as per SteelMint data.
- more
Long-awaited federal study finds threat to Boundary Waters from
hardrock mining - Hardrock mining on public land in northern Minnesota
risks contaminating the Boundary Waters Canoe Area Wilderness, even
with measures designed to head off those problems, a long-awaited
federal study says. - more
Local View: A toxic waste dump is ready to happen in paradise - more
Nickel closed Wednesday's trading
session at$11.09/lb ($24,465/tonne). Indicators at 6:00 am CST today show
nickel trading around $.06/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Wednesday and ended that session just under the 67,800 tonne level.
Nickel fell hard yesterday, along with other base metals, as recession
fears grow. A few of the major worldwide banks yesterday announced the
chance of a worldwide recession now stands at or near 50 percent. A
former Treasury Secretary says we need mass unemployment 'for years' to
get inflation under control. We are also in an election year with one
side trying to convince voters the party in control is responsible for
everything wrong in the world. So pessimism reigns supreme and for the
lucky ones who have decided to travel this year and get away from it
all, gas prices are way up and airline tickets are expensive scrap
paper with flight cancellations up with the prices. Maybe a day to go
back to bed? Stay safe out there and have a wonderful day!!
Average price of LME traded cash nickel
so far this month
- $12.14/lb
Reports
Reuters metals morning - Rising recession fears push copper to 16-month low - more
Wednesday's market review - Copper slides to
15-month low on fears of an economic downturn - Copper prices slumped
to their lowest level in over a year on Wednesday on increasing fears
that rapid interest rate hikes would topple the global economy into
recession as China grapples with COVID-19 lockdowns, hitting demand for
metals. - more
China’s stainless steel exports to Taiwan, India and Vietnam rise in
May - In May this year, China’s stainless steel export volume amounted
to 486,700 mt, up 27.5 percent month on month, while up 32.91 percent
year on year, according to the Chinese customs authorities. - more
Global nickel market deficit falls in April to 200 tonnes - INSG - The
global nickel market deficit narrowed to 200 tonnes in April compared
with a shortfall a month earlier of 8,900 tonnes, data from the
International Nickel Study Group (INSG) showed on Wednesday. - more
World crude steel output down 3.5 percent in May - Global crude steel
production in May this year decreased by 3.5 percent year on year to
169.5 million mt, according to the World Steel Association
(worldsteel). - more
Global steelmakers face up to $518B in stranded asset risk - FT - more
ISSDA views government's decision to impose export tariffs on steel
products as knee-jerk action - The Indian Stainless Steel Development
Association (ISSDA) viewed the Indian government's decision to impose a
15% export tariff on steel products as a knee-jerk action, which has
impacted the domestic steel industry. - more
Nickel closed Tuesday's trading
session at $11.79/lb ($26,000/tonne). Indicators at 6:00 am CST today show
nickel trading around $.44/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Tuesday and sat just under the 68,500 tonne level. After Shanghai
nickel closed lower overnight, the pessimistic mood has gone global,
with LME nickel down sharply this morning. Not a lot of market news
today, but we leave you with what we have. Stay safe out there and have
a great hump day!
Average price of LME traded cash nickel
so far this month
- $12.21/lb
Reports
Reuters metals morning - Copper slides to 15-month lows on fears of an economic downturn - more
Tuesday's market review - Zinc prices surge on
supply fears, low inventories - Zinc prices jumped on Tuesday on
concern over potential shortages resulting from falling inventories and
possible reductions in smelter output because of high energy prices. - more
Universal Stainless Resumes Operations at Bridgeville, PA Melt Shop -
Universal Stainless & Alloy Products, Inc. today reported that
operations at its Bridgeville Electric Arc Melting facility resumed in
May as anticipated and have now returned to full operating capacity
following a metal spill that occurred in April. - more
Stainless Steel Imports Fell but Exports Rose Significantly in May as
European Demand Recovered and South-east Asia Develop Rapidly - China’s
stainless steel imports stood at 229,800 mt in May, a month-on-month
decrease of 9,176 or 3.84%, and a year-on-year decrease of 24.05%,
according to SMM statistics. - more
Indonesia Has Great Power in Coal, CPO, Nickel: President Jokowi -
President Joko Widodo (Jokowi) said five heads of government had called
him asking Indonesia to reopen coal exports in January 2022. - more
All eyes on Tesla as it invests in a troubled nickel mine - American
manufacturing giant Tesla invested in New Caledonia’s Goro mine in
2021, raising local expectations that international scrutiny and the
mine’s new owners could help the plant overcome past environmental
mismanagement issues and social woes. - more
Nickel closed Monday's trading
session at $11.67/lb ($25,735/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 ended that session just over the 68,700 tonne level.
Shanghai markets played catch up overnight, only to have LME head the
other way this morning. The index we follow, shows stainless steel
prices have risen slightly in China this week, after falling pretty
consistently since the 6th. Geojit Financial advises that steel prices
in India
have fallen 20% since the government initiated a 15% export duty, and
could fall as much as 35% if the government does not reverse course.
World stainless production decreased 3.8% YOY during the first quarter
of 2022 according to the WSA. Stay safe out there and have a great day!
Average price of LME traded cash nickel
so far this month
- $12.26/lb
Reports
Reuters metals morning - Zinc prices surge on supply fears - more
Monday's market review - Copper slips to 8-1/2-month
low on recession fears, firm dollar - London copper prices fell to an
eight-and-a-half month low on Monday, weighed down by a strong dollar
and worries that a potential global recession would dent demand for
metals. - more
Stainless steel melt shop production decreased by 3.8% year–on–year to
14.5 million metric tons in the first 3 months of 2022 - The world
stainless association released figures for the first three months of
2022 showing that stainless steel melt shop production decreased by
3.8% year–on–year to 14.5 million metric tons. - more
Taiwan’s stainless steel wire rod imports & exports decrease in May
m-o-m - According to data from Taiwan’s customs, in May, Taiwan’s
stainless steel wire rod imports amounted to approximately 1,900 tons,
decreasing by 8% month on month. - more
Russia’s stainless steel imports up 35 percent in May from April - In
May this year, Russia’s stainless steel imports totaled 38,100 mt, up
35 percent compared to April, according to Russia-based SpetsStal
Association. - more
Courtesy AISI - In the week ending on June 18, 2022, domestic raw steel
production was 1,758,000 net tons while the capability utilization rate
was 80.5 percent. Production was 1,844,000 net tons in the week ending
June 18, 2021 while the capability utilization then was 83.0 percent. -
more
Nickel closed Friday's trading
session at $11.67/lb ($25,720/tonne). Indicators at 6:00 am CST today show
nickel trading around $.15/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell by
two lots on Friday and ended that week, just under the 68,900 tonne
level. Nickel ended last week, up for the day, but down for the week.
This week starts out with nickel in retreat, giving up Friday's daily
gain. U.S. stock markets are closed for a new national holiday,
Juneteenth. So far its a quiet day here in the States. Stay safe out there and have a great day!
Average price of LME traded cash nickel
so far this month
- $12.33/lb
Reports
Reuters metals morning - Copper drops to nine-month low on recession fears - more
Friday's market review - Copper extends downturn on
fears of recession, weak demand - Copper resumed its decline on Friday
on persistent concerns about depressed demand due to an economic
downturn in top consumer China and a potential global recession. - more
LME launches reporting of OTC positions after nickel chaos - The London
Metal Exchange (LME) approved rules on Friday for members to report all
over the counter (OTC) positions, a move taken after off-exchange
trading was partly blamed for a wild spike in nickel prices in March. -
more
SunSirs: Stainless Steel Fell Weakly This Week (June 13-17) - According
to the price monitoring of SunSirs, stainless steel fell weakly this
week. As of June 17, the daily average price of spot 304/2B stainless
steel flat plate 1.0*1219*2438 (tolerance 0.91) was 16,905 RMB/ton,
compared with the price of 17,467.5 RMB/ton at the beginning of the
week, down 3.22%, and up 9.95% year-on-year. - more
Outokumpu launches stainless steel with 92% lower carbon footprint -
Finland-based stainless steel producer Outokumpu has announced that it
has launched a stainless steel product with a 92 percent lower carbon
footprint than the industry average. - more
Inside
'Most Depressing City On Earth' With -30C Temps And Blood-Red River -
An isolated city in Russia has been branded ‘the most depressing on
earth’ thanks to its -30C temperatures, days-long periods of darkness,
low life expectancy and blood red river. - more
Nickel closed Thursday's trading
session at $11.50/lb ($25,345/tonne). Indicators at 6:30 am CST today show
nickel trading around $.07/lb
higher. Stockpiles of nickel stored in LME licensed warehouses slipped
slightly on Thursday and started today's session just below the 68,900
tonne level. Base metals are mixed today, and at the moment, nickel is
trading higher, although with little conviction so far. Fitch has a new
forecast for metals prices out and we have linked to an article on it,
and direct to the Fitch site for more detail. They raised their nickel
price forecast for 2022 from $9.07/lb to $11.34/lb ($20,000 to
$25,000/tonne). Their bar chart shows they expect nickel stockpiles to
start growing anytime now. The production numbers from China on
Wednesday, while disappointing, were better than many expected and the
markets responded likewise. New numbers released yesterday showed steel
production was lower in the first two weeks of June compared to the
last two of May, and nickel fell in reaction. Interesting article below
from Zimbabwe listing the riskiest countries for mining companies to
invest in. And the Army Corps of Engineers is giving the general public two more weeks to
submit their comments on the Polymet project. And that's it for another
week from us. We appreciate our readers who check in with us daily and
invite your comments. Anyone wishing to contact us, please remember to
put the words stainless steel in the subject line, otherwise it will
probably be deleted as spam. It is unbelievable the amount of spam we
get, and it is not hard to figure out where much of it is coming from.
Each day we get email's from our site administrator telling us our
email password is expiring, or has, to the account is full, or spacemen
have stolen our password and we need to change it. Trouble is, we are
our own site administrator. Even our server company does not use this
email address, so these constant attempts are automatically deleted, if
the spam filter didn't already. Some are good though, and it is obvious
how some of these would be effective in cracking into a company's
server with multiple employees after convincing one of them to log in
exposing their password.So after that cheerful information, we leave you with stay safe and have a great weekend!
Average price of LME traded cash nickel
so far this month
- $12.41/lb
Reports
Reuters metals morning - Copper edges up ahead of possible Chile strike - more
Thursday's market review - Demand headwinds hit
prices of industrial metals - Industrial metal prices fell on Thursday
as the outlook for demand deteriorated after the U.S.Federal Reserve’s
large rate hike fueled worries about recession and data from top
consumer China indicated weak growth. - more
Chinese stimulus, lower supply from Russia to keep nickel prices high -
report - Nickel prices will edge higher in Q322 as Chinese stimulus
measures improve the demand outlook and the Russia- Ukraine war
continues to disrupt supply, before falling towards the end of the year
as refinery output ramps up, market analyst Fitch Solutions forecasts
in its latest industry report. - more
Fitch Ratings Raises Several Near-Term Metals and Mining Price Assumptions - more
CISA mills’ daily steel output down 1.32 percent in early June - The
China Iron and Steel Association (CISA) has announced that in early
June (June 1-10) this year the average aggregate daily crude steel
output of large and medium-sized steel enterprises in China - all CISA
members - totaled 2.2886 million mt, down 1.32 percent compared to late
May (May 21-31) this year. - more
Iron ore slides to three-week low on China demand pessimism - more
Taiwan’s 300 series hot-rolled stainless steel coil import price hits
8-year high in May - According to statistics, Taiwan’s 300 series
hot-rolled stainless steel coil imports totaled around 51,200 tons in
April this year, the highest volume since last October. - more
Will miners scurry for the exits? - During the run to the recent
Chamber of Mines of Zimbabwe annual mining conference, markets expected
the government would behave as usual — offering assurances to
businesses that the operating environment would improve and the future
was bright. - more
Comment Period Extended for PolyMet-NorthMet Mining Project - The U.S.
Army Corps of Engineers, St. Paul District is providing an additional
15 days for the public to comment on the Clean Water Act related to the
PolyMet-NorthMet mining project located within Minnesota’s Mesabi Iron
Range. - more
Nickel closed Wednesday's trading
session at $11.71/lb ($25,815/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
Wednesday and started today's session just over the 68,900 tonne level.
For the first time since March, stockpile numbers have fallen by more
than 2,000 tonnes within a month - and in this case, a two week period.
Base metals rose yesterday, but are all trading lower this morning.
Shanghai was back to playing follow the LME leader overnight. Two weeks
left in the first half of 2022. Stay safe out there and have a great
day!
Average price of LME traded cash nickel
so far this month
- $11.68/lb
Reports
Reuters metals morning - Demand headwinds weigh on prices of industrial metals - more
Wednesday's market review - Copper, aluminum bounce
on upbeat China factory, auto data - Copper and aluminum prices
rebounded on Wednesday as investors bet that stronger-than-expected
economic data from top metals consumer China foreshadowed an uptick in
demand. - more
January to April 2022 Metals Balances - (excerpt) The nickel market was
in deficit during January to April 2022 with apparent demand exceeding
production by 51.7 kt. In the whole of 2021, the calculated deficit was
146.9 kt. - more
China’s crude steel output up in May from Apr, down 8.7% in Jan-May -
In the January-May period of the current year, China’s outputs of pig
iron, crude steel and finished steel amounted to 360.87 million mt,
435.02 million mt and 549.31 million mt, decreasing by 5.9 percent, 8.7
percent and 5.1 percent, respectively, year on year, as announced by
China's National Bureau of Statistics (NBS). - more
Industrial output of China’s steel sector down 2.8 percent in Jan-May - more
Market Rumours that Crude Steel Production Cuts Launched in Jiangsu; Steel Mills: Notice Received without Specific Targets - more
Steel prices tumbling back to levels before the war in Ukraine - Very
quickly the steel market has reverted back to where it was before the
war in Ukraine. - more
Sluggish domestic and international demand may impact steel production
- Steel prices were in correction mode before the government imposed
the export duty, impacting about 95 per cent of the steel export
basket. Post-export duty, prices fell further - more
Russia’s steel production expected to fall at least 15 percent this
year - Russian steel mills are expected to face a considerable decrease
in output this year as a result of both lower exports and local
consumption due to sanctions. - more
Nickel closed Tuesday's trading
session at $11.45/lb ($25,250/tonne). Indicators at 6:00 am CST today show
nickel trading around $.10/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Tuesday and ended that session just below the 69,600 tonne level.
Nickel fell slightly overnight in China, and is trading slightly higher
this morning in London. There was a time, not so long ago, when a
$10/lb move would not have been classified as 'slight', but alas, tis
the times we live in. The ECB has called an emergency meeting on the
European economy, and the U.S. Fed is expected to raise rates by 75
basic points today. Inflationary pressure and recession fears continue
to dominate economic news. With uncertainty clouding the horizon,
something the market despises, pessimism appears to be steering many
ships. In the good news department, new daily covid cases numbers have
slipped back below the 100,000 level here in the States, with daily
deaths falling below 250 a day. Lot of news so we leave you with it.
Stay safe out there and have a great hump day!
Average price of LME traded cash nickel
so far this month
- $12.62/lb
Reports
Reuters metals morning - Copper and aluminum bounce on upbeat China factory, auto data - more
Tuesday's market review - Aluminium hits seven-month
low on fears recession would hit demand - Aluminum prices deepened
losses and hit the weakest in seven months on Tuesday as investors
worried that renewed lockdowns in top consumer China and a potential
global recession could slash demand for metals. - more
Nickel drama highlights Tsingshan’s role in energy transition - With
Chinese companies having invested heavily in Indonesian nickel,
greening the sector is vitally important. - more
HKEX hoped alchemy would turn acquisition of century-old London Metal Exchange into ‘super-connector’ gold. What went wrong? - more
Nickel debacle weakens UK’s case on clearing supervision - more
China’s stainless steel output grows in May m-o-m - According to
statistics, China’s stainless steel output reached around 2.93 million
tons in May, up by 1% compared to the previous month but falling by
1.4% from the same month a year ago. - more
India’s new export tariffs to impact its own stainless steel market -
Most Indian producers were earlier trying to strengthen their export
ability with government support. - more
EUROMETAL: EU distributors’ shipments down in January-April - According
to the latest report issued by the association of European steel and
metal distributors EUROMETAL, in the January-April period of the
current year steel shipments to end-user segments by European flat
steel service centers (SSCs) dropped by 0.4 percent year on year, after
increasing by 2.3 percent year on year in the January-March period. - more
2022 Declines Moderate in the U.S. But Continue in Canada - High single
digit month over month declines continued in Canada but approached zero
in the U.S. for steel and aluminum. - more
Surging Chinese steel exports are impacting prices globally - Steel
makers worldwide are starting to feel the pinch as high energy costs
and China’s increasing steel trade surplus are starting to bite –
China’s net exports surged to 6.95 million metric tons (Mt) in May, the
highest this decade. - more
Recycling alone can ease raw materials supply pressure but cannot meet
demand - While recycling can relieve some pressure from the supply
deficit of battery raw materials, it will not be able to meet demand,
says Wood Mackenzie, a Verisk business. - more
This is going to hurt– Are your supply chains ready for the Forced
Labor Act? - For importers of Chinese products, June 21 is a critical
date and coming fast. On that day, U.S. Customs will begin enforcing
the Uyghur Forced Labor Protection Act, banning all imports from
Xinjiang Province, China. - more
ONE Technologies teams with BMW to achieve iX EV with 600 miles of
range - (excerpt) The Gemini chemistry is slightly different than the
Aries. ONE’s Gemini battery tech reduces lithium use by one-fifth while
reducing graphite use by three-fifths while utilizing less nickel and
cobalt. - more
Nickel closed Monday's trading
session at $11.73/lb ($25,850/tonne). Indicators at 6:00 am CST today show
nickel trading around $.17/lb
lower. Stockpiles of nickel stored in LME warehouses fell on Monday and
started today's session, just under the 70,100 tonne level. Nickel fell
sharply yesterday, again, and apparently missed the whole $26,000 tonne
level all together. The last time we traded at this level, was the
first of March. Shanghai markets are lower as well, and the last timed
they closed at this mornings level was - the fourth of March. The U.S.
S&P 500 Index slipped into a bear market yesterday, confirming
traders fears of uncertainty ahead. Steve Jobs is gone now, but thanks
to this graduation
speech he gave, we have three stories from his life, and their meaning
to
him. Powerful, motivating stuff and only ten minutes long. Video here. Stay safe out there and have a great day!
Average price of LME traded cash nickel
so far this month
- $12.77/lb
Reports
Reuters metals morning - Aluminium extends losses as prospects of recession weigh on demand - more
Monday's market review - Aluminium hits six-month
low as demand prospects deteriorate - Aluminum prices dropped to a
six-month low on Monday as fears of further lockdowns in top consumer
China, inflation and higher interest rates triggered a sell-off,
although dwindling inventories provided some support. - more
SunSirs: Stainless Steel Edged Lower This Week (June 6-10) - According
to the price monitoring of SunSirs, stainless steel rose first and then
fell this week. - more
Commodity Supercycle – Key metal supply squeeze puts spotlight on
recycling - As the pandemic recovery and key metal supply squeeze
triggers the next commodity supercycle, Alan Green asks if recycling
can plug the gap. - more
Brazil extends AD investigation on cold-rolled stainless steel sheets
from Indonesia - According to a document from Brazil's Secretariat of
Foreign Trade, Brazil has decided to extend the investigation
of anti-dumping (AD) measures on imports of 304 cold-rolled stainless
steel sheets originating in Indonesia by six months from June 2 this
year. - more
Mindoro extends mining moratorium - Anti-mining activists and
environmentalists in Oriental Mindoro lauded the passage of a
resolution before the Sangguniang Panlalawigan extending the mining
moratorium for another 25 years for large-scale mining and 15 years for
small-scale mining in the province. - more
Baltic Dry Index Falls to 2-Month Low - The Baltic Exchange’s main sea
freight index extended its retreat on Monday, touching a near two-month
low as vessel segments dipped. - more
Courtesy AISI - In the week ending on June 11, 2022, domestic raw steel
production was 1,784,000 net tons while the capability utilization rate
was 81.7 percent. Production was 1,844,000 net tons in the week ending
June 11, 2021 while the capability utilization then was 83.0 percent. -
more
Nickel closed Friday's trading
session at $12.38/lb ($27,285/tonne). Indicators at 6:00 am CST today show
nickel trading around $.51/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Friday and started the week just under the 70,200 tonne level.
Cancelled warrants were just under the 13% level. They were averaging
over the 50% level before the nickel trading debacle of March, so you
can see why we felt these numbers had become useless in trying to
determine future demand. Maybe after the 'big burn' those who play
games with the stockpiles will be more cautious. Nickel fell sharply
for a second consecutive session in China, and is threatening to fall
below the $26,000 tonne level in London. China's ongoing fight with
covid, Russia's ongoing invasion of Ukraine, and the U.S. ongoing fight
with inflation, are combining to keep traders pessimistic. It's a new
week, and although we might like to think otherwise, an unpredictable
one. Learn from the upcoming challenges you'll face, and take advantage
of the opportunities that present themselves. And above all, stay safe
out there and have a great week!
Average price of LME traded cash nickel
so far this month
- $12.90/lb
Reports
Reuters metals morning - Aluminium hits 6-month low as demand prospects deteriorate - more
Friday's market review - Aluminium hits near 6-month
low on China lockdowns, growth fears - Aluminum prices hit their lowest
in nearly six months on Friday and copper also dropped as
investors fretted over the prospect of weak economic growth hitting
metals demand after renewed COVID-19 lockdowns in China and increases
to interest rates. - more
Opinion: Can the London Metal Exchange learn from its nickel lesson? -
When prices surged to over $100,000/t, the London Metal Exchange
suspended nickel trading on March 8th – a decision that caused division
between miners that rely on the exchange for trading, pricing and
hedging services, and fund managers, who use its futures and options to
gain exposure to commodities as an asset class. - more
Exclusive: China's Metals Output in May - This is a roundup of China's
metals output in May 2022, from an exclusive survey of key producers by
SMM analysts. - more
Warning signs that a job shop employee is about to quit without notice
- When it comes to the everyday hustle of a metal fabrication job shop,
the little things tend to blur within the big picture. - more
Nickel closed Thursday's trading
session at $12.72/lb ($28,035/tonne). Indicators at 6:00 am CST today show
nickel trading around $.22/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Thursday and ended that session just below the 70,600 tonne level.
Nickel continues to fall, and overnight in Shanghai, SMM traders
decided to give up on their bullish run and nickel fell sharply to end
the week lower. SMM reports China stainless steel production rose in
May compared to April, but was lower year on year. Rosstat reports
stainless steel production there is up over 27% year to date, with
little of that leaving the country. One of LME's members has resigned,
although we aren't seeing anyone claiming it's in direct protest to the
March trading debacle. Stay safe out there and have a great weekend!
Average price of LME traded cash nickel
so far this month
- $12.98/lb
Reports
Reuters metals morning - Copper wilts on renewed China lockdowns and recession fears - more
Thursday's market review - Copper drops as partial
lockdowns return in China - Copper prices declined on Thursday as the
re-imposition of some lockdown restrictions in China fueled renewed
worries about demand in the world’s top metals consumer. - more
Column: LME nickel lawsuits are about principle as much as money - The
London Metal Exchange's (LME) nickel nightmare continues. U.S. hedge
fund Elliott Management and trading house Jane Street are suing the
exchange for $456 million and $15.3 million respectively over its
handling of the nickel market meltdown in March. - more
Britannia Global Markets to give up LME membership on June 20 -
Britannia Global Markets will give up Category 2 membership of the
London Metal Exchange (LME) from June 20 after the recent nickel
debacle which led the exchange to suspend trading and cancel all nickel
trades on March 8. - more
Domestic Stainless Steel Output in May Totaled about 2.9262 million mt
and Increased Significantly Compared with that in April - According to
SMM survey, the domestic stainless steel output in May totalled about
2.9262 million mt, up 28,800 mt or 1% MoM and down 1.4% YoY. 200 series
stainless steel stood at 917,000 mt, up 10.1% YoY; 300 series recorded
1.4506 million mt, down 2.93% YoY; and 400 series was 558,500 mt, down
3.09% YoY. - more
Russia's stainless steel output increases in Jan-Apr y-o-y - According
to data from the Russian Federal State Statistics Service (Rosstat),
Russia's stainless steel production reached around 83,000 tons in the
first four months of this year, increasing by 27.6% year on year. - more
Taiwan’s cold-rolled stainless steel imports soar in May m-o-m - In
spite of the current weak demand in the market, Taiwan’s cold-rolled
stainless steel imports amounted to around 15,600 tons this May,
significantly growing by 140% compared to the preceding month. - more
Nickel closed Wednesday's trading
session at $13.08/lb ($28,835/tonne). Indicators at 6:00 am CST today show
nickel trading around $.30/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Wednesday and started today, just under the 70,800 tonne level. Nickel
is down sharply this morning, with traders likely spooked by the fresh
lockdown news coming out of China. This with the news from yesterday
that officials there are determined to keep steel production levels at
or below last years, and you have a wave of pessimism coming over those
who know what happens in China has a serious impact on commodities. A
hedge fund has filed a complaint against the LME for the March nickel
debacle. That is two lawsuits and one complaint filed in a week - that
we know about. Guatemala and its nickel mine are back in the news. And
USTradeNumbers has updated its site and new import and export numbers
are out. And for those of you who look forward to Dallas traffic, don't
be surprised if that semi passing you has no driver. Stay safe out
there and have a great Thursday!
Average price of LME traded cash nickel
so far this month
- $13.04/lb
Reports
Reuters metals morning - Copper drops as partial lockdowns return in China - more
Wednesday's market review - Copper claws higher on
hopes for recovery in China - Copper prices rebounded on Wednesday on
hopes for a demand recovery in top metals consumer China and as the
dollar erased gains. - more
Shanghai nickel prices remain firm after Dragon Boat Festival holiday - more
Hedge fund group complains to LME about cancelled nickel trades - A
hedge fund association has complained to the London Metal Exchange
(LME) about the suspension of the nickel market and cancellation of
nickel trades in March saying the exchange failed to meet its
regulatory obligations. - more
Hedge fund group files complaint against LME over March nickel trading chaos - more
Turkey’s stainless steel coils imports grow in Jan-Apr y-o-y -
According to the Turkish Statistical Institute, Turkey’s stainless
steel coils imports totaled 303,000 tons in the first four months of
this year, growing by 30% compared to the corresponding period a year
earlier. - more
Guatemalan Ministers Charged for Allowing Nickel Mine to Pollute
Environment - Guatemalan authorities charged current and former
high-ranking officials involved with one of the largest nickel mines in
Central America which OCCRP exposed as a major polluter of the air and
the country’s largest lake. - more
US Trade Numbers - Imports and Exports of Nickel - more
U.S. Supply Snarls Ease as Truck Capacity Rebounds - A gauge of supply
chain pressure in the U.S. economy fell to the lowest level since
December 2020, as activity such as trucking cools from elevated levels
with few signs yet of a worrying collapse. - more
Driverless Trucks to Deliver Toilet Paper to Dallas Sam’s Clubs - more
Nickel closed Tuesday's trading
session at $13.39/lb ($29,525/tonne). Indicators at 6:00 am CST today show
nickel trading around $.13/lb lower. Stockpiles of nickel stored in LME licensed warehouses fell
slightly on Tuesday and ended that session just under the 71,000 tonne
level. That is the lowest they have read since December 2019. In an
article posted online by Risk.net, only
available to subscribers of which we are not, the lead line reads
"London Metal Exchange’s decision to tear up a morning of nickel trades
on March 8 after prices surpassed $100,000 a tonne may have averted “multiple defaults”,
the exchange’s chief executive officer said this morning." The question
that immediately comes to mind is "Is it the trading houses
responsibility to save traders or trading houses from defaulting? Are
not those who chose
to play the market, responsible for their own individual victories
and/or defeats? Who defines when the loss is equal to a point when the
market must step in and not just halt trading, but cancel billions of
dollars in prior trades? Below this magical dollar amount, players are
on
their own and allowed to default and go bankrupt, while above, trades
are cancelled to
protect the player. It's a slippery slope and one the London Metal
Exchange is now facing the music over. Either it protects the integrity
of a fair and balanced playing field - or it works for and protects the
teams' revenue sources. It may or may not be relevant,
but the LME is owned by Hong Kong Exchanges and Clearing, and the
big player who most say was saved from default, is stainless steel
producer Tsingshan Holding Group Co., Ltd., based in Zhejiang, China. Stay safe out there and enjoy your hump day!
Average price of LME traded cash nickel
so far this month
- $13.03/lb
Reports
Reuters metals morning - Copper subdued as dollar strength offsets dwindling stocks - more
Tuesday's market review - Copper slips as China
demand concerns dominate sentiment - Copper prices slipped on Tuesday
as doubts over demand in top consumer China were reinforced by a
stronger dollar, though there was some support from a hefty drop in
inventories at warehouses approved by the London Metal Exchange (LME).
- more
China’s strict measure to limit steel production to support steel
prices in H2 2022 - This year, the steel output in Shandong Province of
China, the third-largest steel production province in China, will be
limited to an equal quantity of 2021. Other regions in China would
follow the implements. - more
CISA mills’ daily steel output up 0.88 percent in late May - more
Yusco & Tang Eng looking forward to peak season in Q4 - Yieh United
Steel Corp. (Yusco) and Tang Eng Iron Works Co., Ltd., two leading
stainless steel upstream suppliers in Taiwan, were expected to raise
their shipment in the third quarter due to the possible recovery in
steel demand. - more
S.Korea's LG Energy Solution launches nickel processing plants in
Indonesia - South Korea's LG Energy Solution (LGES) on Wednesday broke
ground on nickel processing plants in Indonesia, part of the company's
$9.8 billion investment in the country to produce electric vehicle
batteries. - more
Indonesia expected to become world's main nickel-based goods producer - more
- The 'Revolution' Prevents Cuba from Taking Advantage of Soaring
Nickel Prices - The international price of nickel has been breaking
historical records lately, but Cuba has been squandering this historic
opportunity for a windfall. - more
Vladimir Potanin, the Russian oligarch whom no one dares to sanction -
It seems like a miracle, this 61-year-old bald man who is the Russian
oligarch neighbor to Putin whom the US and European countries treat
with kid gloves and they have not punished like the other owners of
large Russian private companies. - more
Supply Chain Officers Must Face Five ‘Urgent’ Risk Areas, Gartner Says
- From nature to military operations, the ability to offset weaknesses
against predators is a key survival strategy. Today’s supply chain
leaders should take note. - more
Nickel closed Monday's trading
session at$13.52/lb ($29,800/tonne). Indicators at 6:00 am CST today show
nickel trading around $.41/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Monday, and started today just under the 71,100 tonne level. Nickel was
up sharply to start the new week yesterday, and is down sharply on day
two, continuing its see saw pattern of trading. Another fund has sued
the London Metal Exchange over the March debacle, but at $15 million,
it's pocket change compared to the $456 million dollar suit filed
earlier. We expect more are coming, with estimates of total losses
running in the $3-$4 billion dollar range. For the stainless and EV
industry, the fact the LME froze the market for a week, at a price in
freefall and that only a few days earlier would have been an all time
high for nickel trading, did them few favors. We thought Europe might
have some big news for the stainless steel industry. Acerinox and
Aperam apparently were discussing a merger. That is they were. The
meeting didn't last long, and apparently there is no deal, and no
further talks planned. Stay safe out there and have a great day!
Average price of LME traded cash nickel
so far this month
- $12.95/lb
Reports
Reuters metals morning - Copper slips on stronger dollar; China demand hopes offer support - more
Yesterday's market review - Stronger China demand prospects propel
copper to five-week peak - Copper prices climbed to five-week highs on
Monday after the lifting of COVID lockdowns in top consumer China
boosted demand prospects while dwindling inventories provided further
support. - more
Explainer: Why the London Metal Exchange is fighting a lawsuit for
canceling nickel trades - U.S. hedge fund Elliott Associates is suing
the London Metal Exchange (LME) for $456 million for canceling nickel
trades after chaotic trading in March that forced the exchange to
suspend its nickel market, the LME said on Monday. - more
Hedge fund Elliott sues LME for $456 million over nickel trading halt - more
Jane Street Global sues LME for $15.3 million for canceling nickel trades - more
Acerinox & Aperam discuss possibility of merger to create global
stainless steel giant - t was reported that the Spain-based stainless
steelmaker Acerinox and Luxembourg-based stainless steelmaker Aperam
started preliminary talks over a possible merger of their businesses,
which could create a global stainless steel giant. - more
Acerinox's board ends merger talks with Aperam - more
Courtesy AISI - In the week ending on June 4, 2022, domestic raw steel
production was 1,781,000 net tons while the capability utilization rate
was 81.6 percent. Production was 1,840,000 net tons in the week ending
June 4, 2021 while the capability utilization then was 82.1 percent. - more
Nickel closed last week before their holiday break at $12.75/lb
($28,100/tonne). Indicators at 6:00 am CST today show
nickel trading around $.49/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell
slightly last Wednesday and started today at the 71400 tonne level.
After a week with holiday's happening around
much of the world, the news begins the week on the light side. The LME
is being sued over the March debacle - story below. We
start the news listings below with a group of articles about the
economy - and what might be coming. Reality or a twisted
sense of reality? If someone said to you "If you are tired of high
prices, blame Ukraine for not surrendering.", what would your first
reaction be? A roll of the eyes maybe? As any good politician will tell
you, the statement is 'technically' true, but as we all know,
completely bizarre. People in Russia would have a different reaction,
however, than those in much of the rest of the world, because the
statement confirms a bias they may hold. A more realistic truth, would
be to blame
Vladimir Putin for deciding to invade Ukraine, for no apparent reason
other than a land grab. So a historically true statement - is not
always
a historically honest one. Is a recession coming? Time will tell. Economists were
forecasting an approaching recession in the months before covid hit,
and millions of government stimulus has been pumped into the economy in
the years since. What Jaime DImon seems to be saying, but not, is that
our economy has become so dependent on quantitative easing steps, that
now that the Fed is easing up on that easing,
we are entering unchartered waters. If you are tiring of playing
defense, you are not alone, But every great team relies on both its
offensive 'and' defensive strategies and talents to win. It's a new
week so stay safe out there and have a great week!
Average price of LME traded cash nickel
so far this month
- $12.57/lb
Reports
Reuters metals morning - Stronger China demand prospects propel copper to five-week peak - more
Yesterday's market review - Copper rebounds as oil claws higher,
Shanghai lifts curbs - Copper prices rebounded on Wednesday, boosted by
the lifting of COVID-19 lockdowns in Shanghai and gains in oil markets.
- more
LME nickel volumes tumble as funds and other users retreat - Nickel
volumes on the London Metal Exchange plummeted in April because
commodity funds and other participants abandoned the metal after a
meltdown in March left the market in limbo for more than a week. - more
London Metal Exchange sued for $456m over cancelled nickel trades - more
Jamie Dimon says ‘brace yourself’ for an economic hurricane caused by
the Fed and Ukraine war - There are two main factors that has Dimon
worried: So-called quantitative tightening, or QT, is scheduled to
begin this month and will ramp up to $95 billion a month in reduced
bond holdings. - more
Recession warning: Citigroup issues ominous new forecast as Europe economy faces meltdown - more
Elon Musk's Warning, Signals A Recession In The Auto Industry: Report - more
Biden brushes off Elon Musk’s warnings about the economy while touting May jobs report - more
Bank of America’s Brian Moynihan downplays Jamie Dimon’s ‘hurricane’ warning - more
Exploratory drilling program and surging demand for nickel are positive
indicators for Vale, says Manitoba Operations boss - "You always want
to be drilling in mining," Gary Annett tells Thompson Chamber of
Commerce during June 1 presentation. - more
IREPAS in Istanbul: War in Ukraine has fundamentally changed sentiment
and product flows - The 86th meeting of IREPAS (the International Rebar
Exporters and Producers Association) was held in Istanbul, Turkey, on
May 29-31, 2022, in conjunction with the SteelOrbis Spring ’22
Conference. - more
Russian metallurgists stop production due to the strengthened ruble - more
Inflation is Inevitably Affecting the Global Supply Chain System: The
Good, The Bad, and The Ugly - The prevalence of global inflation, at
least over the course of the past year, has been significantly on the
rise. - more
Our next update will be posted on Monday as London markets are closed until then for a holiday.
Daily Nickel/Stainless Steel Briefing
Nickel closed Wednesday's trading
session at $12.75/lb
($28,100/tonne). The London Metal Exchange is closed today and tomorrow
for Spring Bank and Platinum Jubilee bank holiday. Their next national
holiday won't be until the end of August. Nickel closed the short week
about where it ended last week, although the path there was much more
extreme than the destination turned out to be. Shanghai nickel rose 2+%
overnight, with the reopening of Shanghai turning Asian markets
optimistic. Here are your monthly metals averages for May
compared to April - Nickel - $12.67/lb from $15.10/lb, Chrome -
$8.63/lb from $8.75/lb; Molybdenum - $19.18/lb from $19.59/lb; and Iron
held at $1.10/lb. We posted an article below that we missed on Memorial
Day where Goldman Sachs is saying the peak in metals prices is behind
us. They are also forecasting large surplus' in nickel in the next few
years. We will see. but we remind our readers that some metals analysts
have been forecasting large surplus' the last few years that have
failed to materialize. If they are right, nickel prices will fall.
Until then, expect volatility to continue to rule the market. And it is
being reported that China Construction Bank has been given more time by
the London Metal Exchange to make hundreds of millions of dollars in
margin calls it failed to make on Monday. The extension keeps CCBI from
being in default, and is a reminder of the March nightmare when nickel
prices traded for over $100,000/tonne momentarily. It is also a
reminder to the rest of us, that any bad day could be much worse. Stay
safe out there and have a great weekend!
Average price of LME traded cash nickel
so far this month
- $12.57/lb
Reports
Reuters metals morning - Shanghai copper gains on demand hopes as China eases COVID curbs - more
Wednesday's market review - Copper rebounds as oil
claws higher, Shanghai lifts curbs - Copper prices rebounded on
Wednesday, boosted by the lifting of COVID-19 lockdowns in Shanghai and
gains in oil markets. - more
Goldman Sachs: bull market for battery metals is over as lithium,
nickel, cobalt projects come on stream - Huge surplus of cobalt,
lithium and nickel over the next one or two years will cause prices to
trend lower - more
EU to extend safeguard measures until 2024, with some adjustments - The
European Commission submitted a notification of proposed adjustments to
safeguard measures, covering 26 steel product categories, to the World
Trade Organization (WTO), deciding to extend the safeguard measure
until June 30, 2024. - more
MGB says nickel mining in Davao Oriental outside protected area, not an
open-pit mine - The Mines and Geosciences Bureau (MGB) has clarified
that the nickel mining project in Davao Oriental is not an open-pit
mine and confirmed a local government’s earlier statement that its
location is outside the Mt. Hamiguitan Range Wildlife Sanctuary, a
declared protected area and UNESCO World Heritage Site. - more
Panasonic sends Tesla new EV battery samples ahead of production surge
- Panasonic Holdings Corp, which makes batteries for Tesla, said on
Wednesday it had shipped samples of its more powerful 4680 format
electric car battery to the U.S electric vehicle maker as it prepares
for a surge in North American power pack production. - more
Race for cheaper EVs may face years-long setback on metal costs - more
Nickel closed Tuesday's trading
session at $12.90/lb ($28,440/tonne). Indicators at 5:55 am CST today show
nickel trading around $.33/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Tuesday, and started today just under the 71,500 tonne level. Nickel
prices continue to see saw, with large daily moves. See saw seems to be
a good description of a market moving up and down sharply, but going no
where fast. We suspect the big players like it this way, because they
can make big money quick. Of course they can loose big money just as
quickly. Happy traders may take some of the pressure off the London
Metal Exchange for their March debacle, so .... Shanghai took major
steps toward resuming normal
operations today, after a two month lockdown slowed the entire nation
economically. Half a million of the 25 million residents will remain in
quarantine according to media reports, due to illness or recent
possible exposure, but a drop from
20,000 new cases a day, down to less than 30, has convinced authorities
to reopen. Officials report they are still working toward a
"zero covid" strategy, and thus individual manufacturers will operate
with the knowledge that a positive employee could cause their operation
to
be shut down again. In this country, with a "live with it"
strategy, the seven day moving average is over 100,000 new
cases a day in the United States, with daily deaths averaging around
300 a day (but still slowly declining). By comparison, around 125
Americans
die in car crashes a day. And finally, MEPS estimates global stainless
production will increase 4% in 2022. Stay safe out there and have a
great hump day!
Average price of LME traded cash nickel
so far this month
- $12.68/lb
Reports
Reuters metals morning - Copper dips on dollar strength, global growth concerns - more
Tuesday's market review - Copper slips on firm
dollar, recession worries - Copper prices slipped from their highest in
more than three weeks on Tuesday, pressured by a firm dollar and
worries about a potential recession sparked by interest rate hikes to
fight inflation. - more
Analysis:
China's metals traders offload stockpiles as bleak demand outlook bites
- China's army of metal processors and traders has flipped from buyers
to sellers amid a sharp downshift in economic activity in the world's
top manufacturer, heralding a potential warning sign for steel,
aluminium and other key industrial commodities. - more
Aperam alloy surcharge decrease ends long uptrend - French stainless
steel producer Aperam has decreased alloy surcharges in June, for the
first time in 2022, for its austenitic range of flat stainless steels
for Europe. This follows a series of increases. - more(as we noted last week, this applies to US manufacturers as well)
Global stainless steel output to grow by 4% in 2022 - MEPS forecasts
that global crude stainless steel production will reach 58.6 million
tonnes, this year. - more
Courtesy AISI - In the week ending on May 28, 2022, domestic raw steel
production was 1,798,000 net tons while the capability utilization rate
was 82.4 percent. Production was 1,834,000 net tons in the week ending
May 28, 2021 while the capability utilization then was 81.0 percent.
The current week production represents a 2.0 percent decrease from the
same period in the previous year. - more
Supply Chain Snags Poised to Spur New Wave of Corporate Distress -
Rising helium costs, missing auto parts, and shipping delays are
spurring a new wave of financial trouble for companies already saddled
with debt amid broader concern that the U.S. economy is on the brink of
a downturn. - more
Supply Chain Relief Sparks Feud Over U.S. Demand - more
(all
ton listings are metric tons = 2204.622 pounds ) Updated Monday thru
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Daily Nickel/Stainless Steel Briefing 
($23,750/tonne). Indicators at 6:00 am CST today show
nickel trading around $.18/lb 
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Wednesday and ended that session just under the 66,800 tonne level.
After another bullish day yesterday, nickel has started the final day
of the first half of 2022 on the down side. Apparently the news of the
sanctions on Vlad was fairly new when we posted it yesterday and the
sudden spike in nickel prices had to do with trader confusion on what
impact this may have on Norilsk. As it is becoming evident this is not
against Norilsk, the market has quieted. More on the sanctions below,
and an interesting article on the LME debacle of March. And Merafe
announces the price for European ferrochrome for the third quarter is
set at $1.80/lb. Stay safe out there and enjoy the last day of June. 
Reports
Shanghai Metals Market
London Metals Market
Merafe Resources : Ferrochrome price announcement for the third quarter
of 2022 - Shareholders of the Company are advised that the European
benchmark ferrochrome price for the third quarter of 2022 has been
settled at 180 US cents per pound, a 16.7% decrease from the second
quarter of 2022. - 
New Capacity Roundup - June 2022 - Here is a selection of the major
steelmakers' latest production and capacity investments announced this
month. - 
UK sanctions Russia's 'second richest' man, an oligarch known as
'Nickel King,' over Ukraine war - The UK on Wednesday slapped sanctions
on one of Russia's richest men — an oligarch known as "Nickel King" —
over Moscow's more than four-month-long war with Ukraine. - 
Слава Україні! - 
SMM Insights on Nickel Sulphate Raw Material Market that You Cannot
Miss - As the most advantageous raw material for the production of
nickel sulphate, why does the price of nickel hydrometallurgy
intermediate products keep falling? - 
Mining firms poised to lead capital raisings in Canada, TSX CEO says
- Mining companies seeking to accelerate exploration of scarce
critical minerals are set to lead capital raisings in Canada this year,
the chief executive officer of the Toronto Stock Exchange said on
Monday, as sectors such as technology take a back seat amid market
volatility. - 
Courtesy AISI - In the week ending on June 25, 2022, domestic raw steel
production was 1,750,000 net tons while the capability utilization rate
was 80.2 percent. Production was 1,844,000 net tons in the week ending
June 25, 2021 while the capability utilization then was 83.0 percent. -
‘Copper, nickel, and gold’ have the best investment potential this year
– Brent Cook - As we head into a ‘recapitulation’ stage for
commodities, copper, nickel, and gold will be the best assets to own,
said Brent Cook, Founder of Exploration Insights. - 
Nickel is a key element of electric vehicles — but mining it takes an
environmental toll - Making the most of already mined elements can help
meet future demand while reducing carbon emissions -
Global stainless crude steel production down by 3.8% in Q1 y-o-y -
According to the latest data released by the International Stainless
Steel Forum (ISSF), in the first quarter of this year, the global
output of stainless crude steel reached 14.45 million tons, .... - 
European steel prices slide to pre-war levels - European steel coil
prices continued their downward slide, in May and early June. Service
centres and distributors refrained from buying, fearing further price
erosion. Mills sought orders, in the face of reduced demand. - 
India: Finished long stainless steel production falls 5%, m-o-m, in May
- India's production of finished long stainless steel products was
recorded at 58,000 t in May'22, down 5% as against 61,000 t in Apr and
total production for Jan-May stood at 310,000 t, as per SteelMint data.
- 
Indonesia Has Great Power in Coal, CPO, Nickel: President Jokowi -
President Joko Widodo (Jokowi) said five heads of government had called
him asking Indonesia to reopen coal exports in January 2022. - 
All eyes on Tesla as it invests in a troubled nickel mine - American
manufacturing giant Tesla invested in New Caledonia’s Goro mine in
2021, raising local expectations that international scrutiny and the
mine’s new owners could help the plant overcome past environmental
mismanagement issues and social woes. - 
Taiwan’s stainless steel wire rod imports & exports decrease in May
m-o-m - According to data from Taiwan’s customs, in May, Taiwan’s
stainless steel wire rod imports amounted to approximately 1,900 tons,
decreasing by 8% month on month. - 
Outokumpu launches stainless steel with 92% lower carbon footprint -
Finland-based stainless steel producer Outokumpu has announced that it
has launched a stainless steel product with a 92 percent lower carbon
footprint than the industry average. - 
Will miners scurry for the exits? - During the run to the recent
Chamber of Mines of Zimbabwe annual mining conference, markets expected
the government would behave as usual — offering assurances to
businesses that the operating environment would improve and the future
was bright. - 
This is going to hurt– Are your supply chains ready for the Forced
Labor Act? - For importers of Chinese products, June 21 is a critical
date and coming fast. On that day, U.S. Customs will begin enforcing
the Uyghur Forced Labor Protection Act, banning all imports from
Xinjiang Province, China. -
Brazil extends AD investigation on cold-rolled stainless steel sheets
from Indonesia - According to a document from Brazil's Secretariat of
Foreign Trade, Brazil has decided to extend the investigation
of anti-dumping (AD) measures on imports of 304 cold-rolled stainless
steel sheets originating in Indonesia by six months from June 2 this
year. - 
Mindoro extends mining moratorium - Anti-mining activists and
environmentalists in Oriental Mindoro lauded the passage of a
resolution before the Sangguniang Panlalawigan extending the mining
moratorium for another 25 years for large-scale mining and 15 years for
small-scale mining in the province. - 
Turkey’s stainless steel coils imports grow in Jan-Apr y-o-y -
According to the Turkish Statistical Institute, Turkey’s stainless
steel coils imports totaled 303,000 tons in the first four months of
this year, growing by 30% compared to the corresponding period a year
earlier. - 
Guatemalan Ministers Charged for Allowing Nickel Mine to Pollute
Environment - Guatemalan authorities charged current and former
high-ranking officials involved with one of the largest nickel mines in
Central America which OCCRP exposed as a major polluter of the air and
the country’s largest lake. - 
- The 'Revolution' Prevents Cuba from Taking Advantage of Soaring
Nickel Prices - The international price of nickel has been breaking
historical records lately, but Cuba has been squandering this historic
opportunity for a windfall. - 
Acerinox & Aperam discuss possibility of merger to create global
stainless steel giant - t was reported that the Spain-based stainless
steelmaker Acerinox and Luxembourg-based stainless steelmaker Aperam
started preliminary talks over a possible merger of their businesses,
which could create a global stainless steel giant. - 
Our next update will be posted on Monday as London markets are closed until then for a holiday. 
Aperam alloy surcharge decrease ends long uptrend - French stainless
steel producer Aperam has decreased alloy surcharges in June, for the
first time in 2022, for its austenitic range of flat stainless steels
for Europe. This follows a series of increases. - 
