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news covering the period of October 2020
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Friday, October 30
Daily Nickel/Stainless Steel Briefing
Nickel closed Thursday's trading
session at $7.03/lb ($15,500/tonne). Indicators at 7:15 am CST today show
nickel trading around $.14/lb
lower. Stockpiles of nickel stored in LME approved warehouses rose on
Thursday and started the last day of the working month, just over the
239,000 tonne level. Nickel has given back its last two weeks of
bullishness, and with technical signals all flashing sell, there is the
potential for more losses. The 'desperation spike' on Wednesday, as we
call it, is not unusual in the world of trading, and we are sure there
is a more technical term out there somewhere for it. When it happens
though, it can sometimes, reflect an overall turn in the markets
sympathy from bullish to bearish. It was a witches brew of bad news for
traders this week. The Euro had a bad week, falling against the U.S.
Dollar. That makes metals more expensive and thus can be a negative.
The pandemic got worse and countries around the world are putting
restrictions back in place to slow the spread. This is having a short
term effect, with the long term effect yet to be determined. The bulls
got a boost from news the pandemic had shut down a major mine in the
Philippines and worldsteel reported China is producing steel at near
record levels. And EV sales are up, but not yet producing the demand
the nickel industry hoped for. So
what could the election mean for metals? ED&F Man Capital Markets
analyst Edward Meir is predicting "If Trump wins, metals could sell off
because things will stay tense with China .... Industrial metals will
rally if Biden wins; he will be more conciliatory on all fronts.” We
will see. It's the weekend .... finally. Stay safe out there, relax a
lot, and have a great weekend!
Average price of LME traded cash nickel
so far this month
- $6.90/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper prices steady, focus on U.S. election - more
Thursday's market review - Copper falls as demand concerns
resurface - Copper prices fell on Thursday as worries about growth and
demand were reinforced by the second wave of COVID-19 and lockdowns in
Europe while the market awaits the result of next week’s U.S.
presidential election. - more
Taiwan’s Yusco raises stainless steel prices for Nov to reflect raw
material costs - Yieh United Steel Corp. (Yusco), a leading stainless
steel mill in Taiwan, announced its new prices for November today
(October 29). - more
Kanak groups push to take over Vale's New Caledonia nickel assets - A
rally has been held in New Caledonia to demonstrate against the planned
sale of the Vale nickel plant to a consortium led by a Swiss-based
commodity trader, Trafigura. - more
MySteel Global – China’s chrome price up, stocks dip - Prices of
imported chrome concentrates in China’s spot market have strengthened
recently, mainly in response to news that South Africa had approved a
new tariff on chrome ore exports, Mysteel Global noted. - more
Nickel miner whacked after double trouble from WA mines - Leading
Australian sulphide nickel producer Western Areas’ first significant
operational misstep in over a decade has occurred, resulting in poor
September quarter nickel output and guidance for the year being reduced
by about 2,000 tonnes. - more
Distributor Pandemic Index Improves to New Recent High - Major YoY
growth from one distributor helped skew the overall growth figure, but
the index still would've been positive excluding that outlier. - more
New coral species discovered on seabed prized for mining potential
- Three species of black coral have been discovered on the seabed
of the northern Pacific Ocean, an area where several countries have
contracts to explore for metals including cobalt and nickel as they
race to find new supplies of the key battery elements. - more
Psyche: The Nasa mission to study asteroid made of metal - An asteroid
made of metal could have been the beginnings of a planet according to
scientists. - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Thursday, October 29
Daily Nickel/Stainless Steel Briefing
Nickel closed Wednesday's trading
session at $7.13/lb ($15,715/tonne). Indicators at 6:10 am CST today show
nickel trading around $.08/lb
lower. Stockpiles of nickel stored in LME approved warehouses rose on
Wednesday and started today just over the 239,300 tonne level. That's a
3000 tonne gain on the month with two days remaining. It didn't take
long after we posted yesterday, for the bull to once again be captured
and dragged back to his pen. One of the problems with what we would
call 'desperation spikes', is the tumble afterwards can be very ugly.
And just as dangerous to traders, the old adage 'catching a falling
knife' comes to mind. Where the bull will find a pasture is unknown at
this time, but besides the supply/demand variables giving out bearish
signs, the overall mood of world markets has turned moody on the
pandemic fears, and a U.S. Presidential election, now just days away. A
person has to find his own peace and joy out there these days, because
the world appears to be throwing more curve balls, than soft pitches.
And to top it off .... here in most of the United States, we have to
turn back our clocks this weekend. Typically, many of us would look
forward to the fall time change, as it offers an extra hour of sleep.
This year, however, most would agree that 2021 can not come soon
enough, and we don't need an extra hour for 2020 to find one more way
to stick it to us. Until this year, when one heard 2020 mentioned, the
conversation was probably about one's eyesight. From now on, it will
more likely refer to a period in our lives that we can all be glad is
in our hindsight. The pandemic has presented different challenges for
different folks, but it has affected us all. Regretfully, for many, it
took their lives. Here in the U.S., while we saw over 80,000 new cases
diagnosed for the third time this week, the fatality rate appears to be
holding steady at just over 800 souls lost a day. Marketwatch's lead
story late yesterday was "Stock-market rout: How did rising coronavirus
cases catch investors by surprise?". Who said the stock market ever
made sense? Two days left to the week, and two days left to the working
month, and then it will be two months left in the year. Stay safe out
there and enjoy your Thursday!
Average price of LME traded cash nickel
so far this month
- $6.90/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Base metals trade in tight range on lockdown, U.S. election anxiety - more
Wednesday's market review - Copper plunges as investors
brace for coronavirus lockdowns - Prices of copper and other industrial
metals fell on Wednesday as surging coronavirus infections raised fears
that new lockdowns will stifle economic recovery. - more
MySteel Global – What triggers China’s steel semis imports surge? -
China’s imports of steel semis over January-August skyrocketed ten
folds on year to a total of 11.4 million tonnes, according to data from
China’s General Administration of Customs (GACC), and the surge
contributed greatly to China’s re-emergence as a net steel importer
during June-August for the first time in over a decade. - more
Rosstat: Russian stainless steel production falls in Sep y-o-y -
According to statistics from the Russian Federal State Statistics
Service (Rosstat), Russian stainless steel production was 15,600 tons
in September, decreasing by 16.3% from the same month a year ago and
down by 14.5% compared to the previous month. - more
Ongoing COVID pandemic piles pressure on steel
sector in mid-2020 - Apparent steel consumption in the EU fell (-25.5%)
year-on-year in the second quarter of 2020, after a drop (-12%) in the
first quarter. - more
Mill profitability improves following difficult 2020 - more
Courtesy AISI - In the week ending on October 24, 2020, domestic raw
steel production was 1,542,000 net tons while the capability
utilization rate was 69.7 percent. Production was 1,805,000 net tons in
the week ending October 24, 2019 while the capability utilization then
was 78.0 percent. The current week production represents a 14.6 percent
decrease from the same period in the previous year. Production for the
week ending October 24, 2020 is up 0.5 percent from the previous week
ending October 17, 2020 when production was 1,535,000 net tons and the
rate of capability utilization was 69.4 percent. - more
US Economy's Summer Rebound is Already Fading - While the
July-September quarter saw a major rebound, a handful of indicators
point to a considerable weakening. - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Coronavirus: frozen food firms as culprit in two outbreaks in China, sparking warning over cold imports - more
Coronavirus found on cargo from three Russian ships in China - more
New coronavirus outbreak detected in mainland China - more
Wednesday, October 28
Daily Nickel/Stainless Steel Briefing
Nickel closed Tuesday's trading
session at $7.21/lb ($15,890/tonne). Indicators at 6:15 am CST today show
nickel trading around $.11/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose on
Tuesday and started today just over the 238,500 tonne level. The bull
broke loose yesterday, and overnight, stampeded. It's pretty clear what
is causing this price spike and you can blame the thing everyone is
tired of talking about. One of the largest Philippines mine (11% of
their annual production) has been shut down due to an outbreak of
coronavirus. The reaction is interesting and we caution any readers who
are playing the investing game to read Andy Home's analysis below
before trying to jump on this moving train. While other agencies have
used the phrase 'over supply', Andy uses the term 'glut' to describe
next year's nickel supply. And in this case, one can look at what is
happening in Indonesia. Indonesia threatened to stop exporting their
ore (and then did) in an attempt to force China to build their nickel
smelters their, and the gamble paid off. Those smelters are slowly
coming online, and Indonesia is expected to produce more nickel next
year than China. In the mean time, China has to buy ore and for all
practical purposes, the Philippines are it. So closures are frowned
upon. And the EV industry, while stronger than last year, has failed to
become the cash cow nickel producers were hoping for. We suspect this
spike could lose steam as fast as it is building. It's hard to see a
market with building inventories and analysts using the word 'glut',
while at the same time prices soar. So we suspect much of the spike in
price is knee jerk reaction and the big trading houses trying to score
some quick profits for the month. Much will depend on how fast they can
reopen. The U.S. total case number rolled over the 9 million level last
evening, so stay safe out there and have a great hump day!
Average price of LME traded cash nickel
so far this month
- $6.88/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Nickel hits near one-year high fuelled by Philippine mine closure - more
Tuesday's market review - Copper creeps higher on bargain
hunting, more losses expected - Copper prices edged higher on Tuesday
on light bargain-hunting after three sessions of declines, but more
losses were expected as rising COVID-19 cases threatened the global
economy. - more
Nickel Asia suspends ops at mine after coronavirus outbreak - Nickel
Asia Corp, the Philippines’ top nickel ore producer and exporter, said
on Wednesday it has suspended operations at one of its four mines after
an outbreak of the new coronavirus. - more
Nickel's sizzling rally cools, but not over yet - Nickel’s spectacular
rally over the last month, based on ore shortages and robust demand
from China’s stainless steel mills, still has momentum, but as supplies
rise and demand dwindles, prices will retreat. - more
Nickel surplus looms as electric vehicle buzz fades - Andy Home - The
London Metal Exchange (LME) nickel price last week touched a
year-to-date high of $16,135 per tonne. - more
Introduce “toolbox” of measures to save SA’s entire chrome value chain,
says council - South Africa’s entire chrome value chain ought to be
supported through the use of “a toolbox” of measures that include
developmental pricing for ferroalloys producers and a review of a
subsidy provided to intensive users of electricity. - more
Vale sale plan triggers more protests in New Caledonia - A rally has
been called in New Caledonia on Friday to demonstrate against the
planned sale of the Vale nickel plant to a consortium led by a
Swiss-based commodity trader, Trafigura. - more
Crude steel output nears record - 1b tons in sight for this year, but
profitability may stay flat due to COVID-19 impact - more
The steel industry in modern society - Our society faces pressure on
long term sustainability from many sources. A rapidly growing global
population, expanding needs for many good and services, and spreading
wealth that stimulates more demand, all contribute to pressure on the
sustainability of modern society. - more
Impact of COVID-19 on commodity markets heaviest on energy prices;
lower oil demand likely to persist beyond next year - While metal and
agricultural commodities have recouped their losses from the COVID-19
pandemic and are expected to make modest gains in 2021, energy prices,
despite some recovery, are expected to stabilize below pre-pandemic
levels next year, the World Bank said. - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Tuesday, October 27
Daily Nickel/Stainless Steel Briefing
Nickel closed Monday's trading
session at $7.08/lb ($15,615/tonne). Indicators at 6:20 am CST today show
nickel trading around $.02/lb
higher. Stockpiles of nickel stored in LME licensed warehouses went
unchanged on Monday and remained just below the 238,200 tonne level.
Nickel fell to below, $15,400 tonne yesterday, before bouncing back, as
the Euro rose. This morning the Euro fell sharply early on, but is
regaining its balance, and nickel never flinched in reaction. The World
Steel Association is reporting steel production rose 2.9% in September,
compared to pre-pandemic September of 2019. This is thanks to China,
which was able to successfully keep the virus in check early on, and
has seen its economy bounce back quickly. Their production was up 11%
YOY, raising more concerns about over production there. Yesterday, the
U.S. saw its seven day average of new covid cases rise to 70,987, which
is a new all time record high. Daily deaths are hovering at 828
deaths a day. Seven days left before we end another season of nasty
and hateful political commercials. Anyone remember the famous Ronald
Reagan Presidential commercial that started "It's morning in America" (here).
Seen anything like that recently? Not in our neck of the woods, you
haven't. Selling hope apparently doesn't cut the mustard any more,
instead both sides peddle fear. If you missed it, like we apparently
did, back
in January, PBS did a sit down, unedited, as best we could tell,
interview with Fox News pollster Dr. Frank Luntz, as part of a series.
It
is a candid interview, in which Luntz not only takes
issue with how many of the questions he received are phrased, he
offers an interesting perspective on the political arena over the
last 12 years, from his many years of taking polls of the American
public. It is worth an hour of your time, and if interested, you can
find it here.
Even for those who are disgusted with politics this late in the
campaign season, Luntz offers an insightful analysis of why President's
Obama and Trump won their respective races and what the future could
hold. Ever seen a political analysis get emotional on camera? It's
Tuesday, and four business days left in October. Stay safe and have a
great day!
Average price of LME traded cash nickel
so far this month
- $6.87/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper dips on virus fears, U.S stimulus aid uncertainty - more
Monday's market review - Copper falls for third session on
profit taking, COVID worries - Copper prices extended their decline on
Monday to touch their lowest in almost a week as investors locked in
profits amid surging COVID-19 cases and more delays to a U.S. stimulus
deal. - more
World crude steel output up 2.9% year-on-year in
September; China up 11 %, India down 3% – World crude steel production
for the 64 countries reporting to the World Steel Association
(worldsteel) was 156.4 million tonnes (Mt) in September 2020, a 2.9%
increase compared to the same month last year, latest data showed. - more
Southeast Asia’s stainless steel prices increase, stimulated by Chinese
demand - According to the market in Southeast Asia, the current export
market price of stainless steel showed a slight increase, mainly caused
by the increasing local demand from China. - more
BHP turns to renewables for nickel mine that may supply Tesla, starting
with solar and battery - BHP has inked a new deal that will see
renewable electricity generation integrated into the power supply for
its Nickel West operations in W.A., including solar, wind and energy
storage technologies. - more
Evicted Former Zimasco Workers Now Homeless - Several former Zimasco
employees in Shurugwi town are now living in makeshift shelters or with
relatives following their evictions from the company houses they have
been occupying. - more
Steel
Imports Down 21.9% Year-to-Date Through September – Based on
preliminary Census Bureau data, the American Iron and Steel Institute
(AISI) reported today that the U.S. imported a total of 1,255,000 net
tons (NT) of steel in September 2020, including 1,166,000 net tons (NT)
of finished steel (down 2.8% and 1.1%, respectively, vs. August final
data). - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Monday, October 26
Daily Nickel/Stainless Steel Briefing
Nickel closed Friday's trading
session at $7.13/lb ($15,710/week). Indicators at 6:20 am CST today show
nickel trading around $.09/lb
lower. Stockpiles of nickel stored in LME licensed warehouses rose on
Friday and started this week, just under the 238,200 tonne level. The
bear has captured the bull and has been dragging him back to his
enclosure the last few days. Last Wednesday we saw nickel trading well
over the $16,000 tonne level, and today the market is trading near the
$15,500 tonne level. Which basically puts us back 'price wise' to where
we were 10 days ago. The Reuters writer is blaming the drop on the
pandemic surge, we tend to think it has more to do with a falling Euro,
compounded with uncertainty over the U.S. election. Our computer spent
much of the morning trying to recover from an apparent bad Windows
update attempt overnight, so we are a little light on news, but a quick
glance doesn't show we are missing anything big. Stay safe and have a
great final week of October!
Average price of LME traded cash nickel
so far this month
- $6.86/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper at lowest in nearly a week on rising virus cases, stronger dollar - more
Friday's market review - Copper drifts lower as investors
question recent rally - Copper eased on Friday as some investors
questioned whether recent gains were exaggerated and not fully
supported by supply and demand fundamentals. - more
September 2020 crude steel production - World crude steel production
for the 64 countries reporting to the World Steel Association
(worldsteel) was 156.4 million tonnes (Mt) in September 2020, a 2.9%
increase compared to September 2019. - more
Copper wins London Metal Exchange Week beauty parade: Andy Home - This
year’s London Metal Exchange (LME) Week has been a virtual affair of
webinars and Zoom calls but the buzz of bullish excitement around
copper has been very real. - more
Italy’s stainless steel scrap demand resumes gradually - According to
the market in Italy, the demand for stainless steel scrap has resumed
gradually in the recent few months. - more
ESG metrics no longer a "fad" to mining industry: LME Week -
Environmental, social and governance metrics have become an
increasingly hot topic for the mining industry and were not just a
gimmick, panelists said at this year's London Metal Exchange Week. - more
Managing the “COVID Crazies” in metal fabrication - Has anyone felt the
intensity and work load increase in their shop during this COVID-19
pandemic? - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Friday, October 23
Daily Nickel/Stainless Steel Briefing
Nickel closed Thursday's trading
session at $7.14/lb ($15,740/tonne). Indicators at 6:30 am CST today show
nickel trading around $.03/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose on
Thursday and started today just over the 237,600 tonne level. Nickel
trading appears to be shadowing the US Dollar/Euro this morning, which
is a tad volatile. Nickel has already traded within a $200/tonne down
and up trend this morning, so its anyone's guess where it might end the
day. Technically speaking, the $16,000/tonne level appears to be safe
for now, but we are always skeptical of technical signals beyond those
that merely reflect a trend in place. U.S. Stainless steel surcharges
are out and updated on our surcharge page (see link in right column)
and they went down - but just barely. The final Presidential debate was
held last night, and in eleven days we will be able to say the same
about the political commercials. We wonder if America had a choice of
getting rid of one today, would the winner be political adds... or
coronavirus? The world crossed the 42 million threshold last evening in
coronavirus diagnosis, which means the world is averaging 1 million new
cases every two days. The US seven day average is up to 62,933 new
cases a day, with deaths inching up to 808 a day. While there have been
a few minor burps, the trend in U.S. deaths has been slowly dropping
since August 5th, when a second 'wave' peaked, well below the April
21st peak at 2,256 (7 day average). Stay safe and have a relaxing weekend!
Average price of LME traded cash nickel
so far this month
- $6.85/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper drifts lower as investors question recent rally - more
Thursday's market review - Copper slips from $7,000, waits
for possible China stockpiling - Copper prices slipped on Thursday from
the $7,000 mark hit a day earlier as investors waited to hear whether
China would stockpile metals and after another delay in agreeing a U.S.
stimulus plan. - more
World’s largest steelmaker China on recovery path in wake of pandemic -
After the setback to China’s steel industry from the outbreak of the
pandemic, the world’s largest steelmaker appears set on a steady upward
curve due to government policy support. - more
SA chrome ore miners to fend off proposed export tariff - Cabinet backs
the imposition of a chrome ore tariff to support local ferrochrome
smelters, but the problem lies with Eskom - more
Chrome ore producers criticise S. Africa's proposed export tax - more
Nunavik’s two mines each report COVID-19 cases - Each of Nunavik’s two
operating mines reported that one of their staff members tested
positive for COVID-19 this week. - more
Taiwan’s stainless steel HRC imports plummet in Sep m-o-m - According
to statistics, Taiwan imported a total of around 57,000 tons of
stainless steel hot-rolled coil (HRC) in September, plummeting by
31.79% compared to the previous month. - more
China, South Korean electric vehicle battery giants to tap Indonesia's
vast nickel reserves for production - Indonesia is set to become a
battleground for electric vehicle battery production as two global
giants, China's CATL and South Korea's LG Chem, are investing billions
of dollars in supply chains, tapping the abundant reserves of nickel, a
key raw material, in the resource-rich South-east Asian nation. - more
New study shows life cycle of stainless steels - Team Stainless today
published 'The Global Life Cycle of Stainless Steels', a summary of the
results of a study which quantifies the stocks and flows cycle of
stainless steels. - more
Biden campaign tells miners it supports domestic production of EV
metals - Joe Biden's campaign has privately told U.S. miners it would
support boosting domestic production of metals used to make electric
vehicles, solar panels and other products crucial to his climate plan,
according to three sources familiar with the matter, in a boon for the
mining industry. - more
On Minnesota copper mining issues, Trump position is clear while Biden is mum - more
CEO Optimism Jumps Heading Into Q4 - The Conference Board Measure of
CEO Confidence in collaboration with The Business Council rose sharply
in the final month of Q3, after a moderate increase in the first month
of Q3. The measure stands at 64, up from 45. (A reading above 50 points
reflects more positive than negative responses.) - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Thursday, October 22
Daily Nickel/Stainless Steel Briefing
Nickel closed Wednesday's trading
session at $7.20/lb ($15,885/tonne). Indicators at 6:10 am CST today show
nickel trading around $.05/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell by a
single lot on Wednesday and started today just under the 237,400 tonne
level. Nickel was unable to close above the $16,000/tonne level for a
second day, and depending on whether you are a disciple of technical
trading or not, that could send a bearish signal, or mean little more
than nickel had a bearish day. This morning nickel is still falling,
but so are many of the other base metals, that ended yesterday in a
much more bullish mood. So we suspect today's step back is due in part
to a stronger US Dollar, and an overall cautious attitude by traders.
The overall trend remains bullish, although the Reuters poll published
yesterday, may be causing some to step back. A Reuters poll of metals
analysts puts nickel averaging $15,157/tonne in 2021, article below.
That is $6.88/lb and while it is close to our average price this month,
we should remember we started this month in the low $14,000/tonne
range. Analysts will be the first to tell you that it's much harder to
forecast nickel these days, as it might have been in the past. While
fundamentals still matter, the amount of money in the market makes
buying and selling opportunities much more extreme and markets can
turn from less than exciting to incredibly volatile in a few days. For
now, the bull is on the loose, but the bear is stalking. Stay safe and
have a great Thursday.
Average price of LME traded cash nickel
so far this month
- $6.83/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper slips from $7,000, waits for possible China stockpiling - more
Wednesday's market review - Copper moves above $7,000 for
the first time since June 2018 - Copper leapt above $7,000 a tonne on
Wednesday for the first time since June 2018, helped by hopes for U.S.
stimulus, strikes at mines in Chile, expectations of healthy demand in
China and a strengthening yuan. - more
Nickel Flips to Deficit - Burgeoning production from Indonesia is
expected to be a major driver next year for nickel - mainly used to
make stainless steel - but many analysts expect strong Chinese demand
to offset this. - more
WBMS January to August 2020 Metals Balances - Nickel market records
surplus in January to August 2020 - The nickel market was in surplus
during January to August 2020 with production exceeding apparent demand
by 45 kt. In the whole of 2019, the calculated deficit was 27.6 kt. - more
Global molybdenum production rises year on year in Q2, use falls -
Figures released today by the International Molybdenum Association
(IMOA) show that the global production of molybdenum rose by 3% to
148.2mlbs when compared to the previous quarter of 2020 and the same
quarter of 2019. - more
Nickel output picks up as prices soar - Total nickel production this
year will be steady at the range of 40 to 45 million wet metric tons
(WMT) as industry turns bullish from an earlier projection of a decline
in output this year. - more
Flat nickel export volume, higher value seen this year - more
Covid-19 resurgence causing concern for EU steel buyers - The
resurgence in Covid cases across Europe is a growing concern for steel
buyers. - more
Chinese firms commit 35 billion USD investment in Indonesia’s nickel
processing - Chinese investors are seeking to expand their business in
Indonesia by doubling their investment in nickel processing to 35
billion USD by 2033. - more
Over $1 trillion needed for energy transition metals - An investment of
over $1 trillion will be needed in key energy transition metals –
aluminium, cobalt, copper, nickel and lithium – over the next 15 years
just to meet the growing demands of decarbonisation. - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Wednesday, October 21
Daily Nickel/Stainless Steel Briefing
Nickel closed Tuesday's trading
session at $7.27/lb ($16,020/tonne). Indicators at 6:15 am CST today show
nickel trading around $.03/lb higher.
Stockpiles of nickel stored in LME licensed warehouses rose on
Tuesday and started today, just under the 237,400 tonne level. Nickel
closed above the $16,000/tonne level for the first time this year, as
bulls continue to control the trading. A stronger Euro, surprisingly
strong Chinese stainless production, and labor strikes in Indonesia are
the reasons being given for the positive momentum, while a resurgence
worldwide of covid is tempering enthusiasm. Based on what we are seeing
in the Indonesia press, the labor changes that set off major strikes
earlier this month, have been put on hold, as have the strikes.The
world saw its 40 millionth covid diagnosis on Sunday and it 41st
millionth last evening. The U.S. passed the 8-1/2 million cases
yesterday, as well, with another 952 fatalities. With the seven day
average of new cases jumping over the 60,000 level yesterday, we are
fast approaching the former record of 69,914 we saw on July 24th. We
hit the 50,000 level on October 11th, so a new record is a distinct
possibility. Stay safe out there and have a great 'hump' day.
Average price of LME traded cash nickel
so far this month
- $6.80/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper hits 28-month high on stimulus hopes, weaker dollar - more
Tuesday's market review - Copper's upsurge on lower dollar
takes it to 28-month high - Copper prices hit 28-month highs on Tuesday
as expectations of robust demand from top consumer China were
reinforced by a lower dollar, as markets awaited the outcome of fiscal
stimulus talks in the United States. - more
China’s post-Covid economic growth helps rebound in operations at
global mining firms - Operations at global mining giants recovered well
in the third quarter, helped by a pick up in China’s economy, after
taking a huge hit earlier from the outbreak of the Covid-19 pandemic. - more
China's daily crude steel output hits record high 3.09 mil mt/day in September - more
BIR World Recycling Convention Week 2020 - Stainless Steel &
Special Alloys Committee: Stainless consumption decline could be
limited to 4% this year, says Moll - The share of the global stainless
steel market claimed by the 300 series would jump from 54.1% in 2019 to
59.3% by 2030, it was reported to the BIR Stainless Steel & Special
Alloys Committee’s webinar on October 16. - more
August Steel Shipments Down 22.9% from August 2019 - The American
Iron and Steel Institute (AISI) reported today that for the month of
August 2020, U.S. steel mills shipped 6,532,652 net tons, a 8.2 percent
increase from the 6,035,596 net tons shipped in the previous month,
July 2020, and a 22.9 percent decrease from the 8,472,088 net tons
shipped in August 2019. Shipments year-to-date in 2020 are 53,786,455
net tons, a 17.0 percent decrease vs. 2019 shipments of 64,810,436 for
eight months. - more
Vale begins demolishing Stobie Mine headframes and buildings - After
more than 100 years of operation, Vale’s Stobie Mine site on Frood Road
in Sudbury is being demolished. - more
The Monthly Metric: Percentage of Spend Influenced by Procurement -
During the coronavirus (COVID-19) pandemic, shortages of such
commodities as toilet paper and life-saving medical supplies emphasized
the importance of supply chains, a lesson learned by consumers as well
as executives. - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Tuesday, October 20
Daily Nickel/Stainless Steel Briefing
Nickel closed Monday's trading
session at $7.11/lb ($15,685/tonne). Indicators at 6:10 am CST today show
nickel trading around $.08/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Monday and started today's session just over the 236,800 tonne level.
Nickel is having another bullish day, having pushed past its former
2020 high set on September 2nd. This former high set up strong
resistance around the $15,700/tonne level, which nickel closed just shy
of last night, but has pushed aside this morning. We can not advise why
the sudden bullishness in the market, but we suspect much like a bear
market, much of it is feeding on itself. No one wants to miss out on
the sudden score, and this brings in more and in many cases, new money.
While the nickel mines are welcoming the enthusiasm, stainless steel
producers, manufacturers, and distributors can't help but roll their
eyes. Higher nickel prices mean higher austenitic stainless steel
prices down the road, and the one thing stainless steel users do not
need while world economies are hurting, is higher prices. But
apparently, nickel traders are worried less about what nickel users
think, than they are about what EV battery users think. And with Tesla
baiting the industry with a 'huge' contract, what they think is open
for speculation ... and risk taking. It is very likely, that whatever
'say', if any, stainless steel producers felt they had in the nickel
market, is fact evaporating to the 'new kid' on the block, ie the EV
market. Stay safe and have a great day.
Average price of LME traded cash nickel
so far this month
- $6.77/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper steady, waiting for outcome of U.S. stimulus talks - more
Monday's market review - Nickel hits 11-month high on
expectations of robust demand - Nickel prices soared to 11-month highs
on Monday as expectations of robust demand from stainless steel mills
spurred fresh purchases, while industrial metals overall were supported
by a lower dollar and healthy growth in top consumer China. - more
China accounts for about 60% of world's stainless steel production,
with 80% dependence of raw materials on foreign source - Zhong
Shaoliang, the representative of the Worldsteel in Beijing, said that
affected by the epidemic situation, China's stainless steel production
in the world was expected to rise to 60% or even higher in 2020, and
continue to maintain the first position in the world. - more
China’s stainless steel market has room to grow: Forum - more
Cuba maintains historic pace in nickel production - The nickel
industry in Cuba today is now capable of producing over 50 thousand
tons of this non-ferrous metal, according to the average of recent
years, confirmed a director of the Ministry of Energy and Mines
(Minem). - more
Brazilian miner Vale hints at fourth-quarter production boost -
Brazilian mining company Vale reported on Monday an increase in iron
ore output in the third quarter and predicted a further boost in
fourth-quarter output at some units, as a number of mines ramp up
production or come online. - more
The Next “Low-Cost Nickel Producer in the USA”? - Base metals Company
Talon Metals Corp. was featured in the the Q3 2020 review issue of
Benchmark Mineral Intelligence news feature “Musk’s Green Nickel
Crusade”, looking at the Company’s Tamarack Project, located in
Minnesota. - more
A Look At Who Might Win A 'Giant Contract' To Supply Tesla With Nickel
- Nickel 'battery' demand is forecast to increase by 14x from 2019 to
2030. - more
Courtesy AISI - In the week ending on October 17, 2020, domestic raw
steel production was 1,535,000 net tons while the capability
utilization rate was 69.4 percent. Production was 1,805,000 net tons in
the week ending October 17, 2019 while the capability utilization then
was 78.0 percent. The current week production represents a 15.0 percent
decrease from the same period in the previous year. Production for the
week ending October 17, 2020 is up 2.2 percent from the previous week
ending October 10, 2020 when production was 1,502,000 net tons and the
rate of capability utilization was 67.9 percent. - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Monday, October 19
Daily Nickel/Stainless Steel Briefing
Nickel closed Friday's trading
session at $7.10/lb ($15,650/tonne). Indicators at 6:15 am CST today show
nickel trading around $.02/lb
higher. Stockpiles of nickel stored in LME licensed warehouses, after
four consecutive days of gains, decided to fall slightly on Friday, and
started this week just over the 237,300 tonne level. Nickel is off
earlier highs, but with the US Dollar sharply lower, that may not last.
Nickel jumped sharply on Friday, and half heartedly tested resistance
earlier this morning. Traders seem to have a lot of momentum going,
although what the renewed bullishness is based on, is anyone's guess.
EV sales are back, with Germany hitting monthly sales records, but
another outbreak of covid victims could easily slow that back down.
Worldwide infections rolled over the 40 million level this past
weekend, with the U.S. seven day average up to 56,322. Back in July, we
listed some of the annual death rates in America, that have been
exceeded by the 'overblown' pandemic, and that is currently killing a
little over 700 Americans a day. We updated this at the bottom of the
page, if anyone is interested. We are all tired of this virus. We are
tired of talking about it, thinking about it, and we are really tired
of having our lives changed by it. But its our new reality, at least
for now. So stay safe out there, and have a great week!
Average price of LME traded cash nickel
so far this month
- $6.74/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Nickel hits 11-month high on expectations of robust demand - more
Friday's market review - Robust demand prospects propel
aluminium to 17-month peak - Aluminium prices hit 17-month highs on
Friday as robust demand from top consumer China, expectations of
stronger growth and demand in the rest of the world and a lower dollar
helped to create buying momentum. - more
Industrial metals: Upswing meets trouble – Why the prices of tin and
nickel are likely to rise further - Persistent demand from China is
supporting nickel and tin prices. In addition, there are now strikes in
the producing country of Indonesia. - more
Russian stainless steel production grows in Aug m-o-m - The Russian
production of stainless steel smelted in August 2020 increased by 7.9%
compared to July, which amounted to 7,820 tons. - more
Tesla eyes nickel-rich Indonesia for next factory, hints officials -
Local reports are hinting that Tesla might be laying down plans to
build a dedicated battery factory in Indonesia. - more
How Amazon Business Stacks Up Against the Top Big 50 Distributors - While
few outside of Amazon know just how big Amazon Business really is,
reliable estimates allow us to compare it against the largest
industrial distributors. - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Inside the Fall of the CDC - more
FED How Do Consumers Believe the Pandemic Will Affect the Economy and Their Households? - more
From our July 29th entry (see July 29 for links to government sources) The CDC
estimates 3,000 Americans die a year from food borne illnesses
(source), the National Safety Council estimates 38,800 Americans died
in car crashes last year (source), the CDC estimates 34,200 Americans
died from the 'flu' in the 2018-2019 flu season (source), and in 2018,
the CDC reported 48,344 Americans committed suicide in 2018 (source).
Combined, those annual totals do not come close to the 150,000+
Americans who have died from covid-19 - in just the last five months.
You can add to these numbers the approximate 67,400 Americans who died from drug overdoses in 2018 (source).
That puts us up to approximately 192,000 Americans killed by food
poisoning, car crashes, the flu, suicide and drug overdoses - combined
- over a full year. Yet, after 7-1/2 months of covid-19, we have lost
224,000 Americans to this virus and some continue to say its all
politically overblown. Go figure.
Friday, October 16
Daily Nickel/Stainless Steel Briefing
Nickel closed Thursday's trading
session at $7.00/lb ($15,430/tonne). Indicators at 7:30 am CST today show
nickel trading around $.10/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose on
Thursday and started today's session, just under the 237,400 tonne
level. Nickel is much higher this morning on a weaker U.S. Dollar,
and a successful close above a technical line of resistance yesterday.
A stronger line is just ahead, so the bull may hit a fence later this
morning. Whether it stops him or not is what traders await to find out.
The International Nickel Study Group is forecasting
a surplus of 117,000 tonnes of nickel in 2020, and an excess of 68,000
tonnes in 2021. Glencore admits its in talks with the EV industry about
supplying nickel. Does that leave anyone in the world who is not? We
should remember that Mr Musk's request for more nickel and a promise of
a huge contract was "not" the first time world miners were made aware
of a potential shortage in nickel due to the growth in the EV battery
industry. In fact, we have been talking about it for a few years now.
So hopefully these announcements are less 'groundbreaking news', and
more of letting their stockholders know that they are not keeping up
with the Jones, but that they "are" the Jones. It's Friday and we need
a weekend. Stay safe and have a relaxing and restful weekend.
Average price of LME traded cash nickel
so far this month
- $6.71/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper gains as China demand hopes, supply risks eclipse virus woes - more
Thursday's market review - Copper rises as robust demand
trumps worries about virus - Copper prices rebounded on Thursday as
strong demand in top consumer China overcame concerns that rising
COVID-19 cases around the world will dampen global growth. - more
Stainless steel markets - The International Stainless Steel Forum
(ISSF) is pleased to be able to share the following industry data
following our October 2020 conference. - more
worldsteel Short Range Outlook October 2020 - The World Steel
Association (worldsteel) today released an update to its Short Range
Outlook (SRO) for 2020 and 2021. - more
World nickel production to decline in 2020 amid pandemic disruption and
Indonesia export ban - Indonesia prohibited nickel ore exports in an
effort to boost its domestic industry, while Covid-19 has forced mines
mines around the world to either suspend or reduce operations - more
China Macro & Metals: tighter credit conditions will weigh on
metals markets - Sentiment in China’s metals markets was buoyant in
July and August on easy credit conditions and expectations of further
stimulus flowing to infrastructure. - more
Nickel Mines to buy stake in Tsingshan Indonesian unit to boost output
- Nickel Mines Ltd said on Friday it will buy 70% of Indonesia’s PT
Angel Nickel Industry (ANI) for $490 million in a deal that it says
will double its nickel production within two years. - more
Russia to open a mining firm in the Arctic - BitCluster, a crypto
mining company from Russia, is setting up shop above the Arctic Circle,
in the industrial area of Norilsk in the Taymyr Peninsula. - more
Glencore talking with carmakers and battery makers about nickel, CEO
says - Glencore CEO Ivan Glasenberg said on Friday that the company is
talking with carmakers and battery makers about nickel - a key
component in electric vehicle batteries which Tesla CEO Elon Musk has
asked miners to produce more of. - more
Indonesia sees China firms lead 'commitment' for $35 billion nickel
investments - Indonesia expects to see investment in nickel
processing, as well as petrochemicals, double to $35 billion by 2033,
led by investors from China seeking to expand their businesses in
Southeast’s biggest economy. - more
Distributor Pandemic Index in Bumpy, But Mostly Steady Pattern -
Overall, the index has essentially been flat since late July after a
chaotic Spring. - more
Let Disruption Fuel a Reevaluation of Your Sales Structure - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Thursday, October 15
Daily Nickel/Stainless Steel Briefing
Nickel closed Wednesday's trading
session at $6.97/lb ($15,360/tonne). Indicators at 6:15 am CST today show
nickel trading around $.04/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose yet
again on Wednesday, and started today just over the 237,300 tonne
level. The bears appear to be having a problem resisting the will of
the bulls the last few days, with nickel on the rise again. If it
remains bullish, nickel is, and will test a few bands of technical
resistance in the next week or so, the strongest being around the $15,700 tonne level. Lot of
pandemic concerns creeping back into markets, with some major European
countries clearly experiencing a second wave, and taking closure
measures to stop the spread. There is a chance that England may shut
down for a few days at the end of this month, to take advantage of a
break in the school schedule and try to put the entire country on a
short lockdown. It's a rumor at this point, but officials there are
very concerned. After falling to a seven day average of around 37,000
new cases per day on September 12th, the United States rose above the
50,000 level on October 11th, and was over 53,000 yesterday. These are
seven day averages. In reality, there were almost 60,000 new cases
yesterday, a number we haven't seen since early August. We posted a
story below in the pandemic section on the stockpiling that some
countries are taking in expectation of it getting bad again, and we
heard last night on the news, that many Americans are planning on/or
already are, stockpiling food again. While there remains that small,
yet loud section of our populace that we call pandeniers, over 200,000
Americans have died from the pandemic this year .... and we are yet to
hit the winter months that the scientists fear the most. It is not a
good time to drop your guard. This is looking to be a holiday season
unlike any other that we have experienced. Stay safe and have a great
day.
Average price of LME traded cash nickel
so far this month
- $6.69/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper eases on worries about rising virus cases and global growth - more
Wednesday's market review - Copper drifts higher on Chile
labour talks and U.S. stimulus hopes - Copper gained on Wednesday as
investors gauged potential threats to supply from Chile while pricing
in more U.S. stimulus spending after the election and steady demand
from China. - more
Vale's Stobie Mine in Sudbury is being demolished over the next few
months - After 100 years of operation, Vale starts work to bring down
another iconic part of Sudbury's skyline - more
EU implements further stainless steel import protection as Asian
capacity grows - The increasing dominance of stainless steel production
by the Asian continent is not going unnoticed by the European mills. - more
India imposes provisional CVD on flat stainless steels from Indonesia -
It was reported that India's Department of Revenue has imposed
provisional countervailing duties (CVD) on stainless steel flat
products imported from Indonesia, the rate of CVD is between 22.31% and
24.83%. - more
Metals Shipments Rates of Decline Improve in September, Aluminum Up in
Canada - Steel shipments in both the U.S. and in Canada, and aluminum
shipments in the U.S., declined again in September on a Year over Year
basis but at less than half the rate in August. Aluminum shipments in
Canada were up slightly over September 2019. - more
BIR World Recycling Convention Week 2020 - Rolf Willeke, Statistics
Advisor of the BIR Ferrous Division, summarizes below the main findings
contained within his January-June 2020 update presentation to the
divisional webinar taking place on October 14 2020. - more
IMF Envisions a Sharp 4.4% Drop in Global Growth - The International
Monetary Fund foresees a steep fall in international growth this year
as the global economy struggles to recover from the pandemic-induced
recession, its worst collapse in nearly a century. - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Countries Rush to Hoard Food as Prices Rise and Covid Worsens - more
Wednesday, October 14
Daily Nickel/Stainless Steel Briefing
Nickel closed Tuesday's trading
session at $6.82/lb ($15,030/tonne). Indicators at 6:10 am CST today show
nickel trading around $.07/lb
higher. Stockpiles of nickel stored in LME licensed warehouses gained
for a second consecutive day and started today's session just under the
237,200 tonne level. So far this week, nickel had been in a start the
day higher, but ending lower cycle. It does appear, however, that
traders are fighting to keep nickel trading above the $15,000/tonne
level. Nickel may have been getting some recent support from some
nationwide labor strikes going on in Indonesia. Apparently the
Indonesia government made some extreme changes to their labor laws and
many workers are very unhappy. It is unknown what effect this may be
having on nickel ore processors in the country, but one thing we don't
have to worry about. These strikes won't effect the exports of nickel
ore from the country because, thanks to another draconian law change by
their government last year, there are no exports anymore. It's another
hump day and tomorrow is already the half way point to the month. Stay
safe, and have a great day!
Average price of LME traded cash nickel
so far this month
- $6.67/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper rises as Chile mine strike, Chinese demand lift prices - more
Tuesday's market review - Copper falls as stronger dollar
offsets solid Chinese trade data - Copper prices fell on Tuesday as
strong trade data from China, the largest consumer, was offset by a
stronger dollar and news that Johnson & Johnson had paused clinical
trials of a coronavirus vaccine. - more
China stainless steel futures jump on strong demand - Stainless steel
futures rise as much as 1.9%, Dalian iron ore prices inch higher and
spot 62% iron ore remained unchanged at $118.5 a tonne on Wednesday - more
ARM to test technology that could save its beleaguered ferroalloys
production from closure - African Rainbow Minerals (ARM) is
investigating new smelting technology that could enable South Africa’s
ferroalloys sector to circumvent swingeing electricity tariff
increases. - more
Australian firm tiptoes into battery making with country's first plant
- An Australian company is looking to build the country’s first
lithium-ion battery factory by mid-2021, starting small after scaling
back earlier plans and switching its proposed location. - more
A Historic Year for Supply Chain Threats, Even Without COVID-19 - Last
week, Resilinc, a Milpitas, California-based provider of supply chain
risk management research and analytics, presented a webinar on its
latest disruptions data as another hurricane was approaching the Gulf
Coast. - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Tuesday, October 13
Daily Nickel/Stainless Steel Briefing
Nickel closed Monday's trading
session at $6.88/lb ($15,165/tonne). Indicators at 6:05 am CST today show
nickel trading around $.03/lb
higher. Stockpiles of nickel stored in LME licensed warehouse rose over
1000 tonnes and started today, just over the 236,900 tonne level.
Nickel ended lower yesterday, but is back on the positive side this
morning, despite a stronger U.S. Dollar. Whether he awards a contract or
not, or whether any mining company does or does not get a contract,
Elon Musk has shaken up the nickel industry, by dangling a huge
contract out there. This time a few years ago, executives at BHP had
given up on nickel, and appeared to be concentrating their energy back on their
core metal - iron ore. Now, they, like many of their competitors, are
trying to 'out green' one another in their future nickel operations.
Making Vale's Goro on New Caledonia 'greener' must have been an
impossible task, or Musk could probably buy his own mine on the cheap.
Lots of news below, so we leave you with it. Stay safe and have a great
day!
Average price of LME traded cash nickel
so far this month
- $6.64/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Shanghai aluminium at 2-1/2-year high as supply concerns lift prices - more
Monday's market review - Copper nears multi-year highs on
Chinese demand - Copper touched a three-week high on Monday as demand
from top consumer China and the threat of strikes by miners in Chile
pushed prices closer to 27-month highs reached in September, though a
strengthening yuan limited gains. - more
EU's AD imposition on stainless steel HRC may benefit Taiwan's
exporting - Since the European Steel Association (EUROFER) complained
last year that China, Taiwan, and Indonesia had dumped stainless steel
hot-rolled coil (HRC) at prices lower than fair value, the European
Commission started an investigation in August 2019 and later on
announced a temporary anti-dumping (AD) duty on the countries in April
this year. - more
BHP delays sulphate output until first-half 2020, pushes green battery
supply chain - BHP Group BHP.AX will begin production of nickel
sulphate by the middle of next year as it focuses on improving the
green credentials of operations that will supply battery materials to
the automotive industry, an executive said on Tuesday. - more
Indonesia to create firm to build up electric vehicle battery industry
- A group of Indonesian state-owned companies will form a venture to
make batteries to power electric vehicles, the Mining Industry
Indonesia chief executive said on Tuesday. - more
Nornikel Prosecuted By Court In Connection With Norilsk Accident - The
arbitration tribunal of Krasnoyarsk Krai has granted a petition to
include Norilsk Nickel, a major shareholder of Norilsk-Taimyr Energy
Company as a liable party in a legal claim for 148 billion rubles (1,92
billion Dollars) filed by Russian Federal Consumer Rights watchdog
Rospotrebnadzor. - more
SA’s ferroalloys industry facing destruction owing to unstinting
electricity tariff increases - South Africa’s ferroalloys industry
faced “destruction” owing to a sixfold increase in the electricity
tariff provided by the country’s power utility, Eskom, said
BusinessLive. - more
Minnesota Supreme Court to take up PolyMet mine dispute - A dispute
over the future of the proposed PolyMet copper-nickel mine goes before
the Minnesota Supreme Court on Tuesday. - more
Zimplats sinks US$200m - Australian Stock Exchange-listed resources
giant Zimplats is scouring Zimbabwean landscapes to unlock fresh
opportunities, possibly bolstered by fresh policies giving foreign
investors the right to hold controlling stakes in mines. - more
Courtesy AISI - In the week ending on October 10, 2020, domestic raw
steel production was 1,502,000 net tons while the capability
utilization rate was 67.9 percent. Production was 1,805,000 net tons in
the week ending October 10, 2019 while the capability utilization then
was 78.0 percent. The current week production represents a 16.8 percent
decrease from the same period in the previous year. Production for the
week ending October 10, 2020 is up 1.2 percent from the previous week
ending October 3, 2020 when production was 1,484,000 net tons and the
rate of capability utilization was 66.6 percent. - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Monday, October 12
Daily Nickel/Stainless Steel Briefing
Nickel closed Friday's trading
session at $6.90/lb ($15,220/tonne). Indicators at 6:15 am CST today show
nickel trading around $.02/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Friday and ended the week just over the 235,900 tonne level. Nickel is
quiet today, after jumping much higher on Friday. China returned, with
traders having a big day last Friday playing catch-up to LME traders.
This sudden spike seemed to carry over into LME markets on Friday, with
the SMM playing catch up again this morning. So far today, LME traders
seem to be taking a pause. Australia is hosting its second in person
metals conference in as many weeks, when it hosts the Diggers and
Dealers forum this week. More info can be found here.
Covid-19 is working its way back into the headlines. Cases are on the
rise again in the US, with some states setting daily all time record high
diagnosed cases. The unofficial counter worldometers, has total U.S.
cases crossing the 8 million threshold today. The seven day average for
covid deaths in the U.S. was at 725 yesterday and that chart shows an
ever so slight decrease over the past two months. Speaking of covid, we
leave you with the news that it doesn't pay to be a mink
in Utah. Over 8,000 minks have died in the last two weeks from a
covid-19 outbreak in that state. These minks were and are being farmed
for fur factories so, as we said, it REALLY doesn't pay to be a mink in
Utah. It's Monday and we are all still on top of the grass. Stay safe
and have a great day!
Average price of LME traded cash nickel
so far this month
- $6.61/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - London copper rises for 5th day on hopes of China demand, U.S. stimulus - more
Friday's market review - U.S. aid talks and Chile strike
propel copper to two-week peak - Copper prices rose to two-week highs
on Friday after talks about financial aid for the U.S. economy
restarted, the dollar slipped and miners went on strike in Chile, a top
producer of the industrial metal. - more
Canadian nickel miners claim carbon-neutral mining for EV battery metal
- Mineral-rich Canada has potential to become a preferred supplier of
cleaner nickel to power electric vehicles (EV), miners say, as
automakers scour the globe for more environmentally friendly supplies
of the metal. - more
BHP addresses bacteria growth at Nickel West - BHP has reported an
elevated level of aerobic bacteria at its Nickel West operations in
Western Australia. - more
New Caledonia launches consultation on nickel sector - A broad
consultation has been launched by the government of New Caledonia about
the territory's nickel resource to develop strategies for the future. -
more
Steel Safety Day and the COVID-19 pandemic - 2020 has been a year full
of challenges for the steel industry. On the one hand we have witnessed
human and economic losses that significantly impact our current way of
life and on the other we have been active participants in the response
to and mitigation of the effects of the COVID-19 pandemic. - more
August Steel Shipments Down 22.9% from August 2019 - The American
Iron and Steel Institute (AISI) reported today that for the month of
August 2020, U.S. steel mills shipped 6,532,652 net tons, a 8.2 percent
increase from the 6,035,596 net tons shipped in the previous month,
July 2020, and a 22.9 percent decrease from the 8,472,088 net tons
shipped in August 2019. - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Nickel closed Thursday's trading
session at $6.65/lb ($14,665/tonne). Indicators at 6:45 am CST today show
nickel trading around $.17/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell by
3 lots and started today just under the 236,100 tonne level. Nickel
gained a whole $10/tonne in yesterday's trading, but in overnight
trading, ie around the time Chinese markets opened for the first time
in eight days, the traded price jumped by nearly $400/tonne and has
moved little since. Either Chinese traders have come back in a bullish
mood, or someone else is betting they are. We suspect it is the former
as nickel on the Shanghai Metal Markets jumped nearly 2-1/2% in their
first trading day in over a week. It's another hurricane weekend here
in the States, the tenth to visit our beaches this year and just
another reminder that 2020 isn't over yet. Stay safe out there and have
a restful and relaxing weekend.
Average price of LME traded cash nickel
so far this month
- $6.57/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper set for biggest weekly jump in 3 months on U.S. stimulus hopes, Chile strike - more
Thursday's market review - Tighter LME market helps lift
aluminium to three-week high - Aluminium prices on the London Metal
Exchange (LME) on Thursday hit a three-week high, driven by
expectations of solid demand and signs of tighter supply. - more
Vale confirms closure of New Caledonia nickel plant - The Brazilian
miner Vale has reconfirmed that it will shut its nickel plant in New
Caledonia, which is likely to trigger massive job losses. - more
Global outlook for steel industry turns stable from negative : Moody’s
- Global demand for steel is picking up as pandemic-related lockdowns
have eased and industries are resuming production, turning their
outlook to stable from negative, says Moody’s Investors Service. - more
U.S. exports of Nickel decreased 34.24 percent
from $197.16 million to $129.66 million through the first eight months
of 2020 when compared to the same period the previous year, according
to WorldCity analysis of the latest U.S. Census Bureau data. - more
U.S. imports of Nickel decreased 5.44 percent
from $868.91 million to $821.68 million through the first eight months
of 2020 when compared to the same period the previous year, according
to WorldCity analysis of the latest U.S. Census Bureau data. - more
U.S. exports of Stainless steel wire decreased
13.13 percent from $93.57 million to $81.28 million through the first
eight months of 2020 when compared to the same period the previous
year, according to WorldCity analysis of the latest U.S. Census Bureau
data. - more
U.S. imports of Stainless steel wire decreased
30.07 percent from $142.07 million to $99.36 million through the first
eight months of 2020 when compared to the same period the previous
year, according to WorldCity analysis of the latest U.S. Census Bureau
data. - more
U.S. exports of Stainless steel, not less than
600mm wide decreased 34.48 percent from $552.47 million to $361.96
million through the first eight months of 2020 when compared to the
same period the previous year, according to WorldCity analysis of the
latest U.S. Census Bureau data. - more
U.S. imports of Stainless steel wire decreased
30.07 percent from $142.07 million to $99.36 million through the first
eight months of 2020 when compared to the same period the previous
year, according to WorldCity analysis of the latest U.S. Census Bureau
data. - more
U.S. exports of Misc. stainless steel bars,
rods decreased 18.50 percent from $248.65 million to $202.66 million
through the first eight months of 2020 when compared to the same period
the previous year, according to WorldCity analysis of the latest U.S.
Census Bureau data. - more
U.S. imports of Misc. stainless steel bars,
rods decreased 30.93 percent from $388.11 million to $268.08 million
through the first eight months of 2020 when compared to the same period
the previous year, according to WorldCity analysis of the latest U.S.
Census Bureau data. - more
Definitive Anti-Dumping duties on Indonesia, China and Taiwan stainless
steel imports a necessary measure - The Commission has imposed
definitive measures on imports of stainless steel hot rolled sheets and
coils from China, Indonesia and Taiwan. - more
Stainless Sustainability: The Circular Economy of Metal - Going green
and ensuring the highest sustainability with the world's energy
resources is a growing necessity in the current age of business.
- more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Thursday, October 8
Daily Nickel/Stainless Steel Briefing
Nickel closed Wednesday's trading
session at $6.65/lb ($14,655/tonne). Indicators at 6:05 am CST today show
nickel trading around $.07/lb
higher. Stockpiles of nickel stored in LME licensed warehouses rose by
5 lots on Wednesday, well below the 100 tonne level (again), and
started the day just below the 236,100 tonne level. Nickel is trading
at its highest since September 21st and the bulls appear to be betting
the Chinese will have good news when, and if, they ever return to work.
China was reportedly opening today, but when Reuters reported they
didn't yet, we decided to find out why. Apparently every fifth year or
so, their seven day holiday is an eight day holiday and thus they may
return to work tomorrow. If so, we will have some SMM info for you. In
other news, an Australian nickel refinery is on the alert for
Legionnaires' disease. Well why not. It is 2020 for crying out loud.
And for the record - Legionnaires is an American discovered virus, thus
an American virus, so this is obviously an American attempt to punish
Australia for.... oh we don't know .... something. If one can remember
the world pre-pandemic, Australia gave us the first evidence that 2020
was going to be a bad year. Remember those national news stories of
firefighters there giving water to thirsty and burnt koala bears, while
the country seemingly burning down around them. That was the first week
of January and 2020 really hasn't gotten any better since. Interesting
claim (story below) made about Giga Metals, the first company to
reportedly negotiate with Tesla. We got up early this morning, only to
discover that once again, not only did the Swedes forget to award our
little news site the Nobel Prize for Literature, they forgot to
nominate us ..... yet again. Like the Cleveland Indians fan says ...
maybe next year. On the other hand, we did receive an email telling us
we had inherited a tidy sum from an recently deceased African king.
It's Thursday and we are on the downhill slide. Stay safe and have a
great day!
Average price of LME traded cash nickel
so far this month
- $6.56/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper slips as China absent from market - more
Wednesday's market review - Breach of technical levels
creates momentum for copper's rally - Copper jumped on Wednesday as
expectations of improving growth and robust demand boosted sentiment
and triggered a buying spree which pushed prices through key resistance
levels, creating further upside momentum. - more
China’s stainless steel demand in good shape due to growing consumption
- China’s stainless steel output dropped by 2.74% year on year in the
first half of 2020, and the output was expected to keep stable or
slightly hike for the whole 2020. - more
New COVID-19 case confirmed at Nunavik Nickel mine - Nunavik health
authorities have confirmed a new case of COVID-19 at Canadian
Royalties’ Nunavik Nickel mine site. - more
BHP refinery south of Perth on alert over potentially deadly disease -
Workers from BHP's Nickel West refinery in Perth's south may need to be
tested for Legionnaires' disease after testing of infrastructure at the
Kwinana site reportedly showed elevated levels of the potentially
deadly bacteria. - more
Clausi on Giga Metals insiders riding the Reuters’ Tesla story and the
regulators who turned a blind eye - For background, you can’t do better
than read Chris Parry’s excellent article here. - more
Philippines turns to idle mining assets to raise extra revenue - The
Philippine government is seeking to raise additional revenue by pushing
for the resumption of operations at idle state-owned mining projects,
including through the sale of its Nonoc nickel assets, Finance
Secretary Carlos Dominguez said on Wednesday. - more
REFILE-EU imposes import duties on China, Indonesia, Taiwan stainless
steel - The European Union will impose tariffs on imports of hot-rolled
stainless steel coils and sheets from China, Indonesia and Taiwan after
an investigation found they were being sold at artificially low prices.
- more
India mulls extending anti-dumping duties on some steel products from
U.S., others - India’s Commerce Ministry has launched an inquiry, based
on a complaint by Indian steel players, to review the need to reimpose
anti-dumping duties on certain steel products imported from at least
seven countries, the New Indian Express reported. - more
Indonesian state miner completes 20% stake buy in Vale unit for $375
million - Indonesia’s state miner Mining Industry Indonesia (MIND ID),
formerly known as PT Inalum, completed its purchase of a 20% stake in
nickel miner PT Vale Indonesia, the country’s state- owned enterprises
ministry said on Thursday. - more
A road map for grinding and finishing stainless steel - Imagine a
fabricator lands a contract involving critical stainless steel
fabrication. Sheet metal and tubular sections flow through cutting,
bending, and welding, then land at the finishing station. - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Are People Overconfident about Avoiding COVID-19? - more
Wednesday, October 7
Daily Nickel/Stainless Steel Briefing
Nickel closed Tuesday's trading
session at $6.57/lb ($14,490/tonne). Indicators at 6:15 am CST today show
nickel trading around $.09/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell by
less than 100 tonnes again, and started the day just over the 236,000
tonne level. Nickel is up this morning, possibly because the electric
vehicle news is back in the headlines. Tesla is apparently in
negotiations with nearly everyone over nickel supplies. And at least
one metals analyst feels the nickel industry will be in a serious
deficit situation by 2030, with Tesla needing 50% of all nickel mined
by then. We have heard all this before, and it is really hard to sell
with nickel inventories not cooperating. We started this year with
153,318 tonnes in LME stockpiles and yesterday, there were 236,124
tonnes. Not exactly in a situation where buyers are panic buying you
see. Covid has slowed things down, and that has skewed just about every
statistic you will see. But there is a legitimate threat out there, and
it depends how long we want to look into the future, whether we can see
it or not. Electric cars are catching on, and Tesla's recent
announcement on removing cobalt from their batteries will help .... and
hurt nickel producers. Cobalt is a by product for many nickel miners,
and its high selling price helps offset lower profit nickel mining - or
loss mining. Take away a major chunk of cobalt's market and the price
could plummet, biting into their profit.loss statement. Nickel volume
should increase to offset the loss of sales, but unless the price of
nickel increases, the profit potential is not recovered. So its a good
news, potentially bad news announcement for nickel miners. For
stainless steel producers, it's time to think about taking the offense.
Tesla is out their negotiating with all the major miners and it they
come to some sort of supply agreement, that is nickel out of your
reach. That should be a concerning thought. With major producers in
China and India potentially at odds with Tesla over supply, one can see
a time when U.S. and European stainless steel producers suddenly losing
some of that clout that they have built up over years. Lot of news
below and the two 'forecast' articles, shown next to the rolling dice,
are worth reading. It's hump day, and China is back to work tomorrow.
Stay safe and have a wonderful day!
Average price of LME traded cash nickel
so far this month
- $6.54/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper up on U.S. airlines, payroll aid hopes after stimulus deal stalls - more
Tuesday's market review - Copper slips on worries over
economic recovery - Copper edged lower on Tuesday as concern over the
economic impact of rising coronavirus cases and a jump in metal
inventories offset worries about possible strike action in Chile. - more
Metals Analyst: By 2030 Tesla To Need 50% Of All Nickel Supply, Doubts
Viability Of future Plans - A
Metals analyst casts doubt in Tesla's ability to reach its battery day
goals saying, the company will need 50% of the current world nickel
production to reach its 2030 goals. - more
COVID-19 recovery to bring metal price mini-boom, not super-cycle - EY
- The current stimulus-led metals price recovery from COVID-19
lows won't result in a supercycle but rather a mini-boom, with
heightened price volatility, Paul Mitchell, Global Mining & Metals
Leader at consultancy Ernst & Young, told S&P Global Platts in
an interview. - more
Tesla in talks with BHP over nickel supply pact - Tesla Inc is in talks
with BHP Group about a nickel supply deal as the electric-car maker
targets higher production and seeks to avoid a supply crunch, Bloomberg
News reported on Tuesday, citing people familiar with the matter. - more
First Quantum sets Ravensthorpe targets - TSX-listed First Quantum is
expecting to produce between 15 000 t and 17 000 t of nickel from its
recently restarted Ravensthorpe mine, in Western Australia. - more
Gov’t to sell mining assets as mine sites reopen - The Department of
Finance (DOF) wants to revive the mining industry to create jobs in
rural as well as generate revenues for the government’s efforts in
rebuilding the economy hit by the pandemic. - more
Universal Stainless Reaches Labor Agreement at Its Titusville Facility
- Universal Stainless & Alloy Products, Inc. (Nasdaq: USAP)
announced today that it has reached a new 5-year collective bargaining
agreement with the hourly employees at its Titusville, PA facility
represented by Local 7312-03 of the United Steelworkers. - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Coronavirus could kill more than 2 million people by the end of the year, researchers say - more
Tuesday, October 6
Daily Nickel/Stainless Steel Briefing
Nickel closed Monday's trading
session at $6.63/lb ($14,620/tonne). Indicators at 6:10 am CST today show
nickel trading around $.03/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell on
Monday and started today just over the 236,100 tonne level. For the
third consecutive day, LME stockpiles fell or rose by less than 100
tonnes, the last two days showing declines of less than 50 tonnes,
possibly reflecting the closure of China, the worlds largest consumer.
China returns from their week-long holiday on Thursday. Jim Lennon was
the keynote speaker for day one of the Paydirt Nickel Conference and
part of what he predicted is below. Not a whole lot to talk about
today. It's Tuesday, and besides no longer being Monday, what can we
say about Tuesday? Stay safe and have a great day!
Average price of LME traded cash nickel
so far this month
- $6.51/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper rises on U.S. stimulus hope, Chile mining risks - more
Monday's market review - Copper falls despite reports of
improvement in Trump's health - Copper prices fell on Monday as signs
of weakening demand outweighed the positive mood on wider markets after
reports that U.S. President Donald Trump may soon be released from
hospital, where he is being treated for COVID-19. - more
Nickel supply to drop by 2025 – Macquarie - Global financial services
provider Macquarie Group has called for investment into the nickel
sector, despite an anticipated oversupply in the near-term. - more
US grabs stake in battery metals miner to fight Chinese control - The
US government is taking a $25 million equity stake in Dublin-based
battery metals miner TechMet, as part of a push by President Donald
Trump to reduce the country’s reliance on supply chains dominated by
China. - more
Centre to review anti-dumping duty on steel products - The Commerce
Ministry’s investigation arm DGTR has initiated a probe to review the
need to continue imposition of anti-dumping duty on certain types of
steel products imported from China, Korea, European Union, South
Africa, Taiwan, Thailand and the US following complaints from domestic
industry, according to a notification. - more
Nornickel disputes environmental cost of Arctic fuel spill - Russia’s
Norilsk Nickel estimates the environmental cost of a huge fuel spill in
the Arctic in May is 21.4 billion roubles ($273 million), far less than
an assessment by the country’s environment watchdog, which has begun
court action. - more
Here is an article from 1881 that we thought you might be interested
in. If nothing else, it might give you an idea for the next
presentation you give. 139 year old talk is still applicable. Just
think of what you could say about the potential future of a small piece
of nickel ore. This was taken from the 1888 version of Banker's
Magazine.
Courtesy AISI - In the week ending on October 3, 2020, domestic raw
steel production was 1,484,000 net tons while the capability
utilization rate was 66.6 percent. Production was 1,803,000 net tons in
the week ending October 3, 2019 while the capability utilization then
was 77.7 percent. The current week production represents a 17.7 percent
decrease from the same period in the previous year. Production for the
week ending October 3, 2020 is up 0.3 percent from the previous week
ending September 26, 2020 when production was 1,480,000 net tons and
the rate of capability utilization was 66.1 percent. - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Monday, October 5
Daily Nickel/Stainless Steel Briefing
Nickel closed Friday's trading
session at $6.54/lb ($14,420/tonne). Indicators at 6:10 am CST today show
nickel trading around $.01/lb
higher. Stockpiles of nickel stored in LME licensed warehouses fell
slightly on Friday and started this week just under the 236,200 tonne
level. Nickel is slightly lower this morning, but considering the drop
in the U.S. Dollar, that may not last long. Equity markets are higher
on U.S. stimulus hopes, as economists begin to worry the U.S. economic
recovery is slowing too soon. Paydirt's Australian Nickel Conference
opens tomorrow in Perth, and for the first time since possibly March,
this conference won't be cyber. In light of the recent surges
worldwide, this is a risky endeavor and we hope everyone remains safe.
If not, it will be a black eye on the industry. More on the conference
can be found here.
China remains closed for holiday until Thursday. More and more miners
and countries are admitting they are in talks with Tesla. Is this the
reason the Indonesia mine below decided not to dump nickel waste
directly in the ocean? New Caledonia voters again rejected independence
on Sunday. This keeps France in control, which keeps other countries
involvement in the island's interests in check, including their nickel
mines. It's Monday and the first full week of the final quarter of
2020. Stay safe and have a great day!
Average price of LME traded cash nickel
so far this month
- $6.51/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper dips as global volatility shakes investors' confidence - more
Friday's market review - Copper hits seven-week lows after
Trump tests positive for coronavirus - Copper prices hit seven-week
lows on Friday as demand and economic growth concerns were reinforced
by news that U.S. President Donald Trump had tested positive for the
coronavirus, as well as a firmer dollar. - more
Miner Vale in talks with Tesla, EV sector for Canada nickel: executive
- Brazilian miner Vale SA is in talks with Tesla and others in the
electric vehicle (EV) supply chain about securing nickel from its
Canadian operations, the head of the miner’s base metals unit said on
Friday. - more
Indonesia says in early talks with Tesla on potential investment -
Indonesia's government is in early discussions with electric vehicles
maker Tesla Inc TSLA.O about a potential investment in the Southeast
Asia country, a major producer of nickel, an official said. - more
New Caledonia rejects full independence from France again - The South
Pacific archipelago of New Caledonia voted against independence from
France on Sunday for the second time in as many years, a provisional
final count showed. - more
Indonesia says battery-grade nickel project drops deep-sea waste plan -
An Indonesian nickel smelting project being built by China’s Tsingshan
Group and partner companies to produce battery-grade chemicals has
withdrawn a request to dispose of waste in the ocean, a government
official said on Friday. - more
RockTalk: Australia’s nickel outlook post-pandemic - RockTalk is a
Stockhead video series featuring a roundtable of resources experts
discussing a new macro topic each week. In this episode, host Peter
Strachan takes a look at the future of Australia’s nickel market. - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Friday, October 2
Daily Nickel/Stainless Steel Briefing
Nickel closed Thursday's trading
session at $6.51/lb ($14,345/tonne). Indicators at 6:30 am CST today show
nickel trading around $.07/lb
lower. Stockpiles of nickel stored in LME licensed warehouses rose on
Thursday and stood just over the 236,200 tonne level this morning. The
market is waking to news that President Trump, his wife, and at least
one member of his staff have tested positive for covid-19 overnight.
Markets despise the unknown and this is yet another 'unknown'. The
commodities trading board is a sea of red this morning, as are many
world markets. Even though his age and weight put him in the risk
category, the odds of a quick recovery are in his favor. Of the 34+
million known cases that have been diagnosed around the world, over 25
million have fully recovered, with just over a million succumbing to
the disease. It is a reality check and reminder to those who chose to
ignore the safety measures put out by the CDC, that this virus is no
respecter of persons and seeks opportunity to spread and sicken without
any prejudice. For the long range future of nickel supply, the
Independence vote in New Caledonia on Sunday could be important. It's
Friday and a weekend is just around the corner. Stay safe, and have a
relaxing weekend.
Average price of LME traded cash nickel
so far this month
- $6.55/lb
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper hits 7-week low as dollar firms after Trump catches COVID-19 - more
Thursday's market review - Copper slides 4% on virus
worries, surge in inventories - Copper prices tumbled more than 4% on
Thursday, to their lowest in more than a month, as worries about rising
inventories and increasing COVID-19 cases overshadowed hopes for a new
inflow of U.S. stimulus. - more
Taiwan’s Yusco keeps stainless steel prices flat for Oct - Yieh United
Steel Corp. (Yusco), a leading stainless steel mill in Taiwan,
announced to keep its new prices unchanged for October today (September
29). - more
New study shows life cycle of stainless steels - Team Stainless today
published ‘The Global Life Cycle of Stainless Steels’, a summary of the
results of a study which quantifies the stocks and flows cycle of
stainless steels. - pdf here
Trump pushes mining with order, but effects are uncertain - The Trump
administration is seeking to fast-track mining projects and could offer
grants and loans to help companies pay for equipment, administration
officials said Thursday, as they offered details on a plan that critics
said could spoil rivers and lakes in Minnesota, Idaho and elsewhere
with mining pollution. - more
Economy Plunges 31.4% in Spring, but Big Rebound Expected - Economists
believe the economy will expand at an annual rate of 30% in the current
quarter, shattering a 50-year-old record. - more
Five things to know about the far-flung French territory holding an
independence referendum - On Sunday voters go to the polls in the tiny
Pacific island of New Caledonia to vote on independence from France.
Here's what is happening and how the island became French in the first
place. - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
Trump, first lady in quarantine after testing positive for COVID-19 - more
Thursday, October 1
Daily Nickel/Stainless Steel Briefing
Nickel closed Wednesday's trading
session at $6.60/lb ($14,545/tonne). Indicators at 6:10 am CST today show
nickel trading around $.04/lb
lower. Stockpiles of nickel stored in LME licensed warehouses fell on
Wednesday and started today's session just over the 236,100 tonne
level. Nickel is see sawing back and forth, and is apparently using the
$14,500 tonne level as the post. A few statistics from September. We
started the month with 238,722 tonnes in LME warehouses, and we ended
with 236,148 tonnes. We remain in the 24% cancellation zone, and have
been in the 23-25% range since the pandemic went international in
March. The average price for daily LME cash nickel rose from $6.57/lb
in August to $6.74/lb in September. September now bumps August as the
highest monthly average for 2020. We welcome back Taunton Metals as our
October sponsor. Thanks to them, and our other monthly sponsors, we are
able to bring you daily updates on the nickel and stainless steel
industries. It's a new month and the beginning of the final quarter of
2020. Many would say we can't get over this year soon enough. Others
see opportunity in difficulty. However you see the world, you have
three months left to decide how you will remember this year. Stay safe
and have a great Thursday.
Average price of LME traded cash nickel
so far this month
- $6.74/lb (average September)
LME nickel chart - here
/ Euro/US Dollar chart - here
Reports
Reuters metals morning - Copper hits over one-week high on softer dollar, U.S. stimulus hopes - more
Wednesday's market review - Copper
rebounds on upbeat Chinese and U.S. economic data - Copper prices
rebounded on Wednesday on strong economic data from top metals consumer
China and the United States, shrugging off a surge in inventories. - more
Tesla As A Mining Company. Lithium Today, Nickel Tomorrow? - Lithium
mining today, so why not nickel mining tomorrow? That’s a question
which investors in Tesla and other electric car (EV) makers ought to
consider as a raw material rush heats up. - more
EU investigates stainless steel imports from India, Indonesia - The
European Commission has started an investigation to determine whether
to impose tariffs on imports of cold-rolled flat stainless steel from
India and Indonesia that EU producers say are arriving in Europe at
unfairly low prices. - more
Russian stainless steel imports drop in Aug m-o-m - According to
statistics from the Russian Special Steel and Alloys Consumers and
Suppliers Association, Russia imported around 18,000 tons of
stainless steel in August, dropping by nearly 30% compared to the
previous month. - more
Nickel Monthly News For The Month Of September 2020 - Nickel spot
prices were slightly lower in September, and the LME inventory was
slightly lower than last month. - more
Coronavirus By The Numbers - here
Coronavirus by John Hopkins - here
CDC Cases in the US - here
Coronavirus Recovery Tracker - more
US Fed MN Covid Economic Dashboard - more
US Fed NY Weekly Economic Index - more
Resurgence - how is your state faring? - more
(all
ton listings are metric tons = 2204.622 pounds ) Updated Monday thru
Thursday before 7 am CST, Friday version before 8 am CST - DisclaimerOriginal content and opinions copyright
www.estainlesssteel.com. All prices shown on
this page are indications only. Please note - for real time and
official LME
prices, LME requires a user subscribe to an authorized LME vendor.
Daily Nickel/Stainless Steel Briefing 
($15,500/tonne). Indicators at 7:15 am CST today show
nickel trading around $.14/lb 
Reports
Why Stainless Steel 
Thursday's market review - Copper falls as demand concerns
resurface - Copper prices fell on Thursday as worries about growth and
demand were reinforced by the second wave of COVID-19 and lockdowns in
Europe while the market awaits the result of next week’s U.S.
presidential election. - 
Taiwan’s Yusco raises stainless steel prices for Nov to reflect raw
material costs - Yieh United Steel Corp. (Yusco), a leading stainless
steel mill in Taiwan, announced its new prices for November today
(October 29). - 
Kanak groups push to take over Vale's New Caledonia nickel assets - A
rally has been held in New Caledonia to demonstrate against the planned
sale of the Vale nickel plant to a consortium led by a Swiss-based
commodity trader, Trafigura. - 
MySteel Global – China’s chrome price up, stocks dip - Prices of
imported chrome concentrates in China’s spot market have strengthened
recently, mainly in response to news that South Africa had approved a
new tariff on chrome ore exports, Mysteel Global noted. - 
Nickel miner whacked after double trouble from WA mines - Leading
Australian sulphide nickel producer Western Areas’ first significant
operational misstep in over a decade has occurred, resulting in poor
September quarter nickel output and guidance for the year being reduced
by about 2,000 tonnes. - 
Distributor Pandemic Index Improves to New Recent High - Major YoY
growth from one distributor helped skew the overall growth figure, but
the index still would've been positive excluding that outlier. - 
Rosstat: Russian stainless steel production falls in Sep y-o-y -
According to statistics from the Russian Federal State Statistics
Service (Rosstat), Russian stainless steel production was 15,600 tons
in September, decreasing by 16.3% from the same month a year ago and
down by 14.5% compared to the previous month. - 
Ongoing COVID pandemic piles pressure on steel
sector in mid-2020 - Apparent steel consumption in the EU fell (-25.5%)
year-on-year in the second quarter of 2020, after a drop (-12%) in the
first quarter. - 
Courtesy AISI - In the week ending on October 24, 2020, domestic raw
steel production was 1,542,000 net tons while the capability
utilization rate was 69.7 percent. Production was 1,805,000 net tons in
the week ending October 24, 2019 while the capability utilization then
was 78.0 percent. The current week production represents a 14.6 percent
decrease from the same period in the previous year. Production for the
week ending October 24, 2020 is up 0.5 percent from the previous week
ending October 17, 2020 when production was 1,535,000 net tons and the
rate of capability utilization was 69.4 percent. - 
($15,890/tonne). Indicators at 6:15 am CST today show
nickel trading around $.11/lb 
Nickel's sizzling rally cools, but not over yet - Nickel’s spectacular
rally over the last month, based on ore shortages and robust demand
from China’s stainless steel mills, still has momentum, but as supplies
rise and demand dwindles, prices will retreat. - 
Nickel surplus looms as electric vehicle buzz fades - Andy Home - The
London Metal Exchange (LME) nickel price last week touched a
year-to-date high of $16,135 per tonne. - 
Introduce “toolbox” of measures to save SA’s entire chrome value chain,
says council - South Africa’s entire chrome value chain ought to be
supported through the use of “a toolbox” of measures that include
developmental pricing for ferroalloys producers and a review of a
subsidy provided to intensive users of electricity. - 
World crude steel output up 2.9% year-on-year in
September; China up 11 %, India down 3% – World crude steel production
for the 64 countries reporting to the World Steel Association
(worldsteel) was 156.4 million tonnes (Mt) in September 2020, a 2.9%
increase compared to the same month last year, latest data showed. - 
Evicted Former Zimasco Workers Now Homeless - Several former Zimasco
employees in Shurugwi town are now living in makeshift shelters or with
relatives following their evictions from the company houses they have
been occupying. - 
Italy’s stainless steel scrap demand resumes gradually - According to
the market in Italy, the demand for stainless steel scrap has resumed
gradually in the recent few months. - 
Nunavik’s two mines each report COVID-19 cases - Each of Nunavik’s two
operating mines reported that one of their staff members tested
positive for COVID-19 this week. - 
China, South Korean electric vehicle battery giants to tap Indonesia's
vast nickel reserves for production - Indonesia is set to become a
battleground for electric vehicle battery production as two global
giants, China's CATL and South Korea's LG Chem, are investing billions
of dollars in supply chains, tapping the abundant reserves of nickel, a
key raw material, in the resource-rich South-east Asian nation. - 
Cuba maintains historic pace in nickel production - The nickel
industry in Cuba today is now capable of producing over 50 thousand
tons of this non-ferrous metal, according to the average of recent
years, confirmed a director of the Ministry of Energy and Mines
(Minem). - 
Brazilian miner Vale hints at fourth-quarter production boost -
Brazilian mining company Vale reported on Monday an increase in iron
ore output in the third quarter and predicted a further boost in
fourth-quarter output at some units, as a number of mines ramp up
production or come online. - 
Glencore talking with carmakers and battery makers about nickel, CEO
says - Glencore CEO Ivan Glasenberg said on Friday that the company is
talking with carmakers and battery makers about nickel - a key
component in electric vehicle batteries which Tesla CEO Elon Musk has
asked miners to produce more of. - 
India imposes provisional CVD on flat stainless steels from Indonesia -
It was reported that India's Department of Revenue has imposed
provisional countervailing duties (CVD) on stainless steel flat
products imported from Indonesia, the rate of CVD is between 22.31% and
24.83%. - 
