NEWS: 25.11.11
Today’s Top Headlines
*** Copper rises for a second day as price declines lure buyers
*** Ferrosilicon market remains quiet in Russia
*** Russian ferrochrome market unlikely to improve
*** Russian silicomanganese market quiet
*** Ukrainian ferromolybdenum market weak
*** Ferrovanadium market keeps sluggish in Ukraine
*** Ukrainian ferrotitanium price to move down
*** South African chrome ore market weakens
*** Spot iron ore prices continue downward slide
*** Indian ferro-chrome prices rise on raw material shortage
*** Indian Market - Non-ferrous markets weaken
*** China silico-manganese market shows small bounce
*** Indian silicon metal market slack
*** Chinese silicon metal market inactive
*** European ferromolybdenum market appears softening
*** European ferrotungsten market under pressure
*** Ferrotitanium market hard to recover
*** Pakistani silicomanganese market quiet
*** Antimony ingot price softens
*** Asian low carbon ferrochrome market in slow demand
*** Indian ferrosilicon market slow
*** China’s Si-Metal Exports Plummet in Oct 11
Silicon metal export price down further?
Under the unfavorable global economy, the silicon metal export market continues to be slack
with thin trading. The export prices for 5-5-3, 4-4-1, 3-3-0-3 and 2-2-0-2 decreased further to
USD2,280-2,310t, USD2,470-2,500t, USD2,680-2,710t and USD2,950-2,980t FOB China
respectively late this week, and some dealing prices were even lower.
Aluminum ingot producers unwilling to sell
Given the sliding down aluminum ingot prices, more and more aluminum ingot producers
began to suffer losses and they were unwilling to conclude deals at the current low prices. A
Qinghai-based aluminum ingot producer reported that they can hardly earn profit at the
current price that they are able to sell.
Casting aluminum bar market slack
Affected by the decreasing aluminum ingot price at home and abroad, and also the poor
downstream aluminum products market, Chinese casting aluminum bar market is running
with difficulties. One producer from Henan told that many small-sized aluminum bar plants
stop or reduce production these days.
High carbon ferrochrome producers watching the market
Pressed by decreasing high carbon ferrochrome prices, smelters have to keep watching the
market in order not to lose too much money. Lower price from steel mills brings more
pessimism toward the market.
Zinc ingot prices drop in the Chinese spot market
As the demand for Germany’s bonds slows, which implying the debt crisis is spreading to the
core countries in Europe, zinc futures on the LME dropped by USD26t to USD1,914t, and
SHG zinc ingot prices dropped by RMB300t USD47t in the Chinese spot market on
Thursday. Producers are still reluctant to sell at the quoted low price. A Henan-based
producer reported that they had not sold normally since August .
Chinese ferromolybdenum market seeing a fall
Chinese ferromolybdenum market has seen a fall this week with the mainstream prices
down to RMB127,000-133,000t USD33.28-34.85kg Mo for ferromolybdenum 60%, a drop by
RMB1,000t USD0.26kg Mo compared to early this week. With a production capacity of
200tpm for ferromolybdenum, a Liaoning-based producer is selling ferromolybdenum 60% at
RMB126,500t USD33.15kg Mo.
Pakistani silicomanganese market quiet
Pakistani silicomanganese market stays quiet these days with thin trading reportedly
concluded as the downstream end-users secure the materials from Indian suppliers directly
and the steel mills perform poorly. Depending on the different delivery and payment terms,
the mainstream prices for silicomanganese 6014 remain in the range of PKR135,000137,000tUSD1,553-1,576t ex warehouses .
South Korean Dongkuk Steel purchases Japanese H2 scrap this week
It’s reported that South Korean Dongkuk Steel purchased Japanese H2 scrap with prices of
￥30,500/ton C&F Incheon port.
It’s known that Dongkuk Steel bid ￥28,500/ton FOB for Japanese H2 scrap, ￥300/ton
higher than South Korean Daehan Steel’s purchase prices.
Meanwhile, Japanese scrap suppliers expected that the scrap export prices would raise in
the near future. At present, the general export quotes of H2 scrap have increased to
￥29,000/ton FOB.
Steel melting scrap price updates in Indian Market
Melting scrap
80:20
HMS
Location
Bangalore
Chennai
Hyderabad
Kandla
Kanpur
Kolkata
Ludhiana
Change
0
0
0
0
0
0
0
86
Mandi
0
Mumbai
Rudrapur
0
Change is on 23rd November as compared to 22nd November 2011
Change is in INR per tonne
Steel plate cuttings price movements in Indian Market
Product
Grade
Size
Plate cuttings
Rolling
1"
Ship Scrap
Melting
Mixed
Change is on 23rd November as compared to 22nd November 2011
Change is in INR per tonne
Rebar TMT QST price movement in India
TMT
Fe 415
12mm
Location
Ahmedabad
Bangalore
Chennai
Delhi
Hyderabad
Indore
Kanpur
Kolkata
Ludhiana
Mandi
Mumbai
Raipur
Change
0
0
0
0
0
0
0
0
-105
0
0
0
Change
200
-100
Rudrapur
Muzzafarnagar
0
0
Change is on 23rd November as compared to 22nd November 2011
Change is in INR per tonne
Pencil ingot price movement in major places
Pencil ingot
Location
Ahmedabad
Alang
Bhiwari
Chennai
Durgapur
Ghaziabad
Hyderabad
Jaipur
Jamshedpur
Ludhiana
Kanpur
Kolkata
Mandi
Mumbai
Muzzafarnagar
Nagpur
Raigarh
Raipur
Rourkela
Rudrapur
Change
0
0
0
0
-181
0
500
100
0
91
0
-181
200
0
90
0
90
100
0
0
Change is on 23rd November as compared to 22nd November 2011
Change is in INR per tonne
Sponge iron price updates in Indian Market
Sponge iron
Location
Bellary
Kolkata
Ludhiana
Raigarh
Raipur
Rourkela
Change
0
0
0
-100
-100
0
Change is on 23rd November as compared to 22nd November 2011
Change is in INR per tonne
HR steel price movements in Indian Market
HRC
Tube
2.5x1250
Location
Ahmedabad
Bangalore
Chennai
Delhi
Indore
Kolkata
Ludhiana
Mumbai
Change
0
0
0
0
0
0
-91
0
Change is on 23rd November as compared to 22nd November 2011
Change is in INR per tonne
Ferrosilicon market remains quiet in Russia
stated that demand for ferrosilicon keeps at a low level in Russia and there are rare deals
concluded. Current concluded price of ferrosilicon 65%min remains at RUB44-45kg d.p.
USD1,399-1,431t in spot market
Russian ferrochrome market unlikely to improve
Sources stated that demand for ferrochrome keeps dim as there is almost no sign for it to
improve. Current concluded prices of low carbon ferrochrome 65-70%min, C 0.1% and high
carbon ferrochrome 60%min, C 6-8% remain at RUB116-118kg d.p USD2.58-2.63lb Cr and
RUB60-62kg d.p. USD1.45-1.50lb Cr respectively in spot market this week, both unchanged
from those of last week.
Indian ferro-chrome prices rise on raw material shortage
Ferro-chorme prices in the Indian domestic market rose this week to Rs.73000/= to 74,000/=
/ tonne due to shortage of Crome Ore in the market .
INDIAN MARKET- Non-ferrous markets weaken
Non-ferrous markets weaken in India although cobalt holds its own while cadmium inches up
on recent demand. FERRO-SILICON The Indian ferro-silicon market is still in the low
catagory with low demand .
Indian silicon metal market slack
Sources in India reported that local silicon metal market remains slack this week with few
trading activities. The aluminum consumption is decreasing. Moreover, Indian rupee keeps
weak and the importing cost is high, so buyers are inactive in purchasing from China. A
trader in India told Asian Metal that they purchased two containers of 5-5-3 at USD2,300t
CIF Nhava Sheva from China this week
Indian ferrosilicon market slow
Indian ferrosilicon still keeps slow these days and producers and distributors all report a dull
sale for the material. There are also producers stopping production due to the slow market
and they have no idea when to resume. The mainstream price for Indian ferrosilicon 70% is
at INR60,000-62,000t .
Chinese silicon metal market inactive
Chinese silicon metal price had kept dropping for around two months. The market still keeps
the down-moving trend on the large supply in the spot market and the low demand, and the
offers in the market range widely in the end of the month. A trader in Shanghai, who usually
distributes around 500tpm for silicon metal in the local market, reported that the mainstream
price for 5-5-3 decreased further from around RMB12,200-12,300t USD1,921-1,937t in ports
last week to around RMB12,000t USD1,889t.
South Korea’s steel exports surge while steel inventory remains highs
According to the statistics from the Korea Iron & Steel Association, South Korean major steel
mills’ steel exports surged substantially in the first half of this year. However, the steel
inventory in domestic market remained high due to sluggish demand.
It’s known that Posco, the largest steelmaker in South Korea exported 3.62 million tons of
steel products in the Q3, surged by 24.5% from a quarter earlier and it accounted for 41.7%
of the firm’s total production.
In addition, Posco exported 13.5 million tons of steel products in the first half of this year. It’s
predicted that the company would export 14.7 million tons of steel products in the second
half of this year.
Though South Korea ’s steel exports surged, the country’s steel inventory still remained at
high level.
China’s October imports of primary aluminum reduce by 38% y-o-y
According to statistics released by China ’s customs, China imported 9,650 tons of primary
aluminum, reduced by 38% year on year.
In addition, the country’s imports of primary aluminum in the first ten months of this year
totaled 152,264 tons, decreased by 21% in comparison of that in the same period of last
year.
The data also showed that the country’s October imports of refined lead totaled 50 tons,
declined by 96%; that of refined zinc was 5,598 tons, down by 71%, all compared to that in
last October.
Chinese World Market Headlines on Foundry Materials
 Mirabela nickel production increases 36%
 Anglo sees 41,000 T nickel at Barro Alto in 2013
 Nigerian Senate panel wants sale of aluminium smelter to Rusal revoked
 Novelis sharpens Asia focus, buys out Korean firm
 European manganese flake markets quiet
 Herencia Resources impresses with drill results
 ABB to supply hoisting system for Xstrata Zinc
 Codelco sees 2011 output over 1.7 mln T
 Aurubis says restructuring its rolled copper sector
 Antofagasta says 3Q copper slump cost $297 Million
 Casting aluminum bar market slack
 Chinese ferromolybdenum market seeing a fall
 Fused magnesia market moves steadily in China
 Indium market in South Korea moves slowly
 Sentiment in aluminum alloy market fragile
 Chinese indium price keeps decreasing
 China zinc concentrate/ore import down by 32.17% YOY in October
 European indium metal market keeps dull
 Nickel powder price remains stable
 Guiyang Yinxing to raise refined lead production greatly in December
 Trading warms up in Chinese lead ingot market on lower prices
 Aluminum ingot producers unwilling to sell
 Xinanjiang Nickel Alloy reduces ferronickel production
 Nickel cathodes price close to the bottom
 Middle-grade ferronickel ore market in stalemate
 Japanese manganese flake demand remains weak
 Manganese flake price becomes stable
 Indian ferrosilicon market slow
 Demand for die-casting zinc alloy remains weak
 Chinese graphite electrode price may increase
 Asian ferrodysprosium prices decrease a bit
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Lithium carbonate price stable
Weak demand on Chinese high carbon ferromanganese ore market
Zinc ingot prices drop in the Chinese spot market
Cobalt metal price continues to fall in China
Smelters cautious in replenishing chrome ore
High carbon ferrochrome producers watching the market
Zili Copper decreases copper production
Asian low carbon ferrochrome market in slow demand
Black silicon carbide prices keep stable
Chrome ore buyers waiting for much lower prices
Copper rod market moves down
Chinese zirconium oxychloride price in low level
Demand for silicomanganese 60/14 improves slightly in China
Chinese zirconium silicate market quiet
Chinese mid-grade magnesia price stable
PrNd mischmetal transactions few
Chinese average grade tantalum oxide market still quiet
Chinese columbite import market quiet with stable prices
Rough sintered NdFeB N42 offer declines further
Antimony trioxide export price slides down
Pakistani silicomanganese market quiet
Titanium bar producers holding different views about the export market
Europium oxide market flat
Antimony ingot price softens
Little fluctuation in Indian manganese alloys market
Chinese vanadium-aluminium alloy market dull
Ferrotitanium market hard to recover
Chinese ferrovandium 80% traders still watching the market
APT market to be stable
Tungsten electrode demand hard to improve
Silicon metal powder prices continue to drop in China
Reshuffle appears in Chinese polysilicon industry
Indian silicon metal market slack
Chinese silicon metal market inactive
European cobalt metal prices keep steady
European ferromolybdenum market appears softening
European ferrotungsten market under pressure
Iron ore spot prices drop on Chinese steel mills’ slow purchase
According to report of Reuters, the iron ore prices fell further on Wednesday since Chinese
steel mills are taking more cautious purchase on the reduced demand in steel market.
It’s known that the iron ore contains 62% Fe is offered at US$146.6/ton on Tuesday, down
half a percent. There have been hardly any deals in spot iron ore market in recent days.
Meanwhile, the spot iron ore prices surged by 24% in November after a 31% slump in
October as Chinese steelmakers replenished iron ore inventories.
Handan Iron and Seel successfully develops SAE1008-M cold heading steel
Handan Iron and Steel, the subsidiary of China 's Hebei Iron and Steel has successfully
developed SAE1008-M cold heading steel.
The SAE1008-M cold heading steel contented with low carbon, low silicon and high
aluminum components and it would apply for producing such as nuts, bolts, screws, rivets
for different sectors.
Meanwhile the firm produced about 2,800 tons of steel billets in order to roll it into wire rod
with diameter of 16mm.
South Korean CR sheet makers run full capacity despite of poor demand
It is reported that South Korean manufacturers of cold rolled sheets operate at full capacity
in spite of weak demand along with global financial crisis and economic downturn at this
moment.
It’s known that South Korean steelmakers including Dongbu Steel, Union Steel and Hyundai
Hysco have still run the full capacity of their continuous galvanizing lines (CGL) recently
while the firms cut the production output of electrolytic galvanizing lines (EGL).
Meanwhile, Union Steel’s cold rolled steel sheets were 70,000 tons in stock and Hysco's
cold rolled sheet inventory levels were about 165,000 tons respectively.
Chinese manufacturing activity at 32 month low
The news comes just days after Vice Premier Mr Wang Qishan, China ’s top finance official,
gave a dire warning that the global recession was here to stay and would impact the export
dependent economy due to weakening external demand.
The preliminary HSBC purchasing managers’ index PMI dropped to 48 in November, the
lowest since March 2009, compared with 51 in the previous month.
A reading above 50 indicates the sector is expanding while a reading below 50 suggests a
contraction. The final figure will be released on December 1.
Chinese Silicon Metal Market Keeps Poor
It is said that transaction price of silicon metal 553# has dropped to around RMB11,90012,300/mt at ports, with trend of further declining. More plants have joined to suspend
production, while others take wait and see attitude. According to a trader, their regular sales
volume was around 300 mt a month, but this month they only achieved 30 mt. As
downstream industries all appeared to be poor, including polysilicon, organic silicon and
aluminum, oversupply is expected to keep silicon metal market weak in the near future.
Bistro Metals raise stainless steel pipe prices by 14% for December
Bristol Metals, one of the major stainless steel pipe manufacturers in the US planned to raise
its base prices of stainless steel pipes by 14% in response to current increases in stainless
steel flat products in the US market.
The new price policy will become effective from December 1st and will be carried out
through a reduction of the price discount.
It’s known that the major stainless steel mills such as North American Stainless, AK Steel
and Allegheny Technologies have all announced in last week to raise the stainless steel
prices from next January.
European stainless steel mills cuts alloy surcharge for December
It is reported that European stainless steel mills cut the alloy surcharges for December since
the raw materials prices have remained weak and concerns on the European debt crisis
have continued to trouble global markets.
It’s known that the four stainless steel manufacturers in Europe , including Acerinox,
ThyssenKrupp, Aperam and Outokumpu have all announced to cut the alloy surcharge for
304, 316 and 430 series cold rolled stainless steel products for December.
The average December alloy surcharge for 304 series cold rolled stainless steel products
are at €1,339/ton, down from €1,384/ton for November; that for 316 series products is at
€2,050/ton, decreased from €2,127/ton for a month earlier and that for 430 series material is
at €459/ton, lower than €482/ton for November.
Mitsubishi takes stake in Australia iron ore, port projects
Japan’s largest trading house Mitsubishi Corp. has decided to pay AU$325 million to
Murchison Metal’s for the stakes in an iron ore project and a rail project in Australia , aiming
to help the project out of jam. Reuters reported.
The said two projects are AU$-5.9-billion Oakajee port and the AU$-3.7-billion Jack Hills iron
ore mine expansion project. Currently the projects have been hampered for cost blowouts.
The partial reason why Murchison sells its stakes in Jack Hills and Oakajee port projects is
lack of funding as the mine has lower value than Pilbara, also than expected.
South Koreaholds tender to purchase 3,000 tons of primary aluminum ingots
Public Procurement Service (PPS) announced that it held a tender to purchase 3,000 tons of
primary aluminum ingots originated from Malaysia on Wednesday.
Among them, 2,000 tons will be provided by Sumitomo Corporation and 1,000 tons will be
offered by LG International Group.
The cargo will arrive in Busan port on January 31st, 2012.
Ban on cash payments for scrap metal would encourage illegal operations
A media report quoted Mr Ian Hetherington director general of British Metals Recycling
Association as saying that a ban on cash payments for scrap metal would drive more
dealers to operate illegally.
A Private Members Bill was set out in parliament on November 15th 2011 by the Labor MP
for Hyndburn Graham Jones, proposing tighter regulations for scrap metal dealers. This
included a ban on paying for scrap metal in cash and a requirement for identification to be
shown at the point of sale.
Mr Hetherington said that he welcomed discussion of the issue in parliament but stated that
imposing a no cash policy would unfairly harm legitimate businesses.
Speaking to letsrecycle.com, he said that "The main area of concern for us is the idea that a
ban on cash buying of scrap metal will take the problem away. At the moment there is a very
large trend for end of life vehicles and fridges being sold for scrap and there is a big cash
demand for these items. Half of our members do more than 50% of their business in cash,
so this is not a minor sum."
The bill also proposes that police authorities should have the power to search and
investigate all premises owned and operated by scrap metal dealers and to close yards
where illegal activity is found. The motion received cross party support and will be given its
second reading in parliament on January 20th 2012.
While only a minority of Private Members' Bills become law, by creating publicity around an
issue, they can indirectly affect government thinking and lead to fresh legislative proposals.
Mr Hetherington went on to argue that unless tougher policing on illegal metal recyclers is
put into place, any attempts to prevent cash payments would simply drive people to sell their
metal to unregulated scrap yards. He said that "At the heart of this is the current inability of
regulators to close the large number of illegitimate yards that are operating at this time, if
they could do so we would be having a very different conversation."
He added that "The normal person selling scrap will not be able to differentiate between
legitimate and illegitimate scrap yards. If you have a car that has turned its wheel for the last
time and you sell it for scrap, most people don't want to have to wait for a cheque to clear."
The bill comes in the wake of increased pressure from organizations including the Local
Government Association for tougher action on metal theft. The LGA highlighted the theft and
sale of metal plaques from war memorials in the run up to Remembrance Sunday, calling for
councils to be given greater power to combat metal thieves.
UK Prime Minister Mr David Cameron also pledged earlier this month to review scrap metal
laws. He said that "The theft of metal, particularly from war memorials is an absolutely
sickening and disgusting crime. We are working with the Association of Chief Police Officers
to put in place a plan to deal with this, which will involve looking again at the whole
regulation of scrap metal dealers. We are determined to put a stop to this appalling crime."
Copper rises for a second day as price declines lure buyers
Reuters reported that copper rose for a second day on Wednesday as this month's decline
of more than 6% made the metal more attractive, offsetting concerns that Europe 's
sovereign debt crisis will slow a global economic recovery.
Gains may be limited as the World Bank warned that China , the world's top consumer of the
metal, faces growing risks from the euro zone crisis and forecast that its economic growth
will moderate from next year.
Fundamentals;
1. Three month copper on the London Metal Exchange gained 1.6% to USD 7,450.25 per
tonne by 0116 GMT, extending gains from the previous session. Prices are down 22% this
year, the first annual decline since 2008.
2. The most active February copper contract on the Shanghai Futures Exchange climbed
0.6% to CNY 55,330 per tonne.
3. Demand for copper products globally remains firm, despite fears of an economic
slowdown and key consumer China is likely to raise imports again in November.
4. China 's imports of refined copper rose 7.2% in October on the month to hit an 18 month
high, fueled by steady demand.
5. LME copper stockpiles have been steadily falling, with outflows of the metal totaling
around 70,000 tonnes since the end of the European summer in mid September 2011 and
were just below 400,000 tonnes.
6. The International Copper Study Group said that the world refined copper market was in
deficit of 161,000 tonnes in the first 8 months of the year, compared with a deficit of 339,000
tonnes in the same period last year.