NEWS: 21.12.11
Today’s Top Headlines
*** Copper prices expected to rise in next Q1
*** Copper falls on Europe credit rating downgrade worries
*** Short supply, export prices push up domestic Ukrainian HMS
*** World output growth slides to 1% in November
*** Upward trend expected in Jan UK domestic scrap settlements
*** Turkish alloy steelmaker increases scrap buying price again
*** Indian Scrap Prices picks up due to shortages
*** Scrap offers to Turkey rise, Turkish mill sentiment sags
*** Timken raises US tube scrap surcharge by $50/s.ton
*** China chrome ore market recovers on supplier moves
*** Chinese Antimony metal prices fall further on weak demand
*** Indian steel plants import iron ore due mining crisis
*** Indian ferro-vanadium market still weak
*** Ferro-molybdenum ticks up; ferro-vanadium stalled in US market
*** Indian silicon market stable
*** Chinese ferro-molybdenum prices show signs of stability
*** Russian silicon metal market still weak
*** Russian ferromolybdenum market to keep stable
*** No rebound in Russian ferrovanadium market
*** Russian ferromanganese market runs slowly
*** Russian silicomanganese market weak
*** Russian ferrosilicon market quiet
*** Russian ferrotitanium market quiet
*** Russian magnesium ingot market quiet
*** Chinese Magnesium ingot price holding steady
*** Chinese ferrosilicon export price decreases
*** Nickel cathodes price slightly decreases
*** Zinc ingot market remains weak
*** Indian HRC market still slow
*** Indian TMT bar price up
Chinese Aluminum alloy market comes to a stalemate
Sentiment among aluminum alloy producers keeps week these days and the purchasing
remains bad. However, producers report that they are not in a hurry to release the stocks
and will not sell the materials at lower prices. One producer of A356 aluminum alloy from
Henan report that they will not sell the material at less than RMB800t .
Zinc ingot market remains weak
Zinc prices in China kept falling in the past few days, and SHG zinc ingot price fluctuated at
around RMB14,700t USD2,319t in the spot market on Tuesday. Most participants think it’s
hard for the price to increase due to the unfavorable macro economic environment. A trader
from Shanghai with the sales volume of 20,000tpm reported that they offered SHG zinc ingot
at RMB14,700t USD2,319t in the Chinese spot market.
Russian ferrosilicon market quiet
With the approach of New Year, enquiries decrease and deal is quiet in Russian ferrosilicon
market. Present prices of ferrosilicon 65% are at RUB47-48kg d.p. USD1,464-1,495t,
unchanged compared with those of last week.
Chinese silicon metal smelters hold offers firm
Currently, the operating rate of silicon metal smelters in China decreases to a relatively low
level; moreover, as the production cost increases following the power price rises and the
demand from the domestic and overseas markets remains weak, some silicon metal
smelters, which are still in production, intend to stop production in a short time. With the
decreasing operating rate, the supply in the spot market is reducing accordingly, and many
silicon metal smelters expressed that they do not eager to sell materials in a hurry.
Chinese Magnesium ingot price holding steady
At the present time, magnesium ingot in the domestic market proceeds to witness the
steadiness of price that stands respectively at RMB16,050-16,200t USD2,534-2,557t ex
works in Shaanxi and RMB16,550-16,700t USD2,612-2,636t ex works in Shanxi. However,
an increasing number of magnesium ingot suppliers would rather quote a higher price for
their goods in the light of their freedom from stockpile burden and a paucity of purchase from
downstream buyers.
Thailand’s October scrap imports exceeds 200,000 tons
According to statistics, Thailand imported 211 thousand tons of scrap in October, surged
substantially by 2.5 times in comparison of that in the same period of last year.
Also, this is the first time to break 200 thousand tons over the past five months.
Among them, 151 thousand tons were from the US, surged by 456.2%; 9,000 tons were
from Philippines, soared by 29.9%, both compared to that in the same period of last year.
Besides, Thailand’s scrap imports in the first ten months of this year totaled 1.591 million
tons, increased by 52.6% year on year.
Accordingly, it’s estimated that the country’s total scrap imports in 2011 would reach 1.91
million tons.
Copper prices expected to rise in next Q1
It’s predicted that the copper demand from China may jump in the Q1, 2012; however, the
supply may remain a conundrum in the longer term.
It’s known that the workers at Freeport McMoRan's giant Grasberg mine, the world’s second
largest mine have delayed their return to work after the strike for consecutive three months,
causing the supply side of global copper market.
According to report of Macquarie's commodities research team, the global copper outputs
have continuously disappointed the forecasts.
However, UBS, banking and financial services group forecasted that the copper supply
would raise by 4.7% to 20.6 million tons in 2012, pushed up by mine supply growth,
including 9.9% in Chile, 11% in the US, 10% from China and 13.7% from Zambia.
Besides, UBS pointed out that the workers would strongly seek for higher wages in 2012,
pushed by the high profits of copper producers.
Spot iron ore prices at US$139~US$142/ton C&F
It’s reported that the spot iron ore prices have continued dropping recently.
At present, the prices of spot iron ore fine contain 63.5% Fe are at US$139~US$142/ton
C&F, down by US$1/ton for the previous US$140~US$143/ton C&F.
Traders indicated that the iron ore prices might continue to drop in the short term b since the
steelmakers would reduce the purchase before Chinese New Year vacation.
Tokyo Steel hikes scrap purchase prices at five works
TEX reported that Japan's largest electric steelmaker Tokyo Steel Mfg Co has increased
what the company pays for locally available ferrous scrap by JPY 500 to JPY 1,000 per
tonne for all grades at its five works, effective with December 14th 2011 arrivals.
A price increase of JPY 500 per tonne applies to seaborne overland arrivals at the Kyushu
works. A second price increase of JPY 1,000 per tonne applies to seaborne overland arrivals
at the Okayama, Takamatsu and Tahara works. A third price increase of JPY 1,000 per
tonne applies to overland arrivals at the Utsunomiya works.
As a result, the new delivered prices of No2 HMS are JPY 32,500 per tonne for seaborne
arrivals and JPY 31,500 per tonne for overland arrivals at the Okayama works; JPY 34,000
per tonne for seaborne arrivals and JPY 33,000 per tonne for overland arrivals at the Kyushu
works; JPY 30,500 per tonne for seaborne overland arrivals at the Takamatsu works; JPY
31,500 per tonne for seaborne overland arrivals at the Tahara works and JPY 32,500 per
tonne for overland arrivals at the Utsunomiya works.
Steel melting scrap price up in Mumbai
Melting scrap
80:20
HMS
Location
Change
Bangalore
0
Chennai
0
Hyderabad
0
Kandla
0
Kanpur
0
Kolkata
0
Ludhiana
-182
Mandi
-259
Mumbai
400
Rudrapur
0
Change is on 19th December as compared to 16th December 2011
Change is in INR per tonne.
Steel plate cuttings price update
Product
Grade
Size
Change
Plate cuttings
Rolling
1"
0
Ship Scrap
Melting
Mixed
700
Change is on 19th December as compared to 16th December 2011
Change is in INR per tonne
Pencil ingot prices in diverse movement
Pencil ingot
Location
Change
Ahmedabad
-400
Alang
-300
Bhiwari
0
Chennai
0
Durgapur
0
Ghaziabad
0
Hyderabad
800
Jaipur
0
Jamshedpur
0
Ludhiana
-362
Kanpur
0
Kolkata
91
Mandi
-200
Mumbai
600
Muzaffarnagar
182
Nagpur
0
Raigarh
-91
Raipur
-100
Rourkela
544
Rudrapur
0
Change is on 19th December as compared to 16th December 2011
Change is in INR per tonne
HR steel price update
HRC
Tube
2.5x1250
Location
Change
Ahmedabad
181
Bangalore
0
Chennai
0
Delhi
0
Indore
0
Kolkata
0
Ludhiana
91
Mumbai
226
Change is on 19th December as compared to 16th December 2011
Change is in INR per tonne
CR steel price movement
CR
DSK
0.63
Location
Change
Ahmedabad
-227
Bangalore
0
Chennai
0
Delhi
0
Kanpur
0
Kolkata
0
Ludhiana
0
Mumbai
0
Pune
0
Rudrapur
0
Change is on 19th December as compared to 16th December 2011
Change is in INR per tonne
Chinese ferrosilicon export price decreases
Chinese ferrosilicon export price decreases again this week and the limit price from customs
also decreased to USD1,440t FOB China. Few deals are seen on export market. Traders
hold a negative attitude toward the market and don’t expect any improvement in the coming
months.
Chinese domestic ferrosilicon price stable
Chinese ferrosilicon price shows a little stable these days while the sale is worse than that of
last week. Some producers think the market will decrease again in short term due to the
slow demand from downstream market. As some producers have pressure on stocks, they
may sell the material at a lower price later on. The mainstream price for ferrosilicon 75% is at
RMB6,300-6,400t ex works .
Chinese World Market Headlines on Foundry Materials
 Australian zircon sand market slow
 Copper cathodes suppliers selling actively
 Zinc concentrate suppliers hold back from selling in China on low zinc prices
 Chinese aluminum scraps import from America up by 3% in the first ten months of
2011 YOY
 Zinc ingot market remains weak
 Producers pessimistic about die-casting zinc alloy market
 Chinese lead concentrate market slows down on the drop of lead price
 Secondary lead market slow
 Erbium oxide market weak
 Cerium oxide demand soft
 Aluminum alloy market comes to a stalemate
 Nickel cathodes price slightly decreases
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High-grade lateritic nickel ore market still inactive
Low-grade lateritic nickel ore market increases slightly
Chinese gallium price moves down further
Chinese export volume of indium reduces in October 2011
Chinese ferrosilicon export price decreases
Watching attitude comes back with aluminum ingot price dropping
Little movement on Vietnamese silicomanganese market
Producers decrease manganese briquette price slightly
Chinese domestic ferrosilicon price stable
Manganese flake price continues to dip further
South Korean ferromanganese export market sluggish
Oversupply puts pressure on Chinese imported manganese ore prices
Chinese titanium tetrachloride supply short with higher price
Chinese titanium pipe market calm
Chinese consumers reluctant to buy zirconium silicate
Chinese ferroboron market not active
Pakistani chrome ore market goes up slightly
Titanium plate export market unlikely to recover
Antimony ingot price declines
Ethylene glycol antimony price decreasing
Chinese molybdenum market moves sluggishly
Chinese silicomanganese 60/14 price stable
European ferrovanadium dealers see resistance to quotations above USD24/kg
Chinese vanadium nitride prices soften
Watching attitude popular among the magnesium alloy market
Chinese high purity vanadium pentoxide powder market comparatively stable
Magnesium powder market quiet
PrNd mischmetal users hold back from purchasing
High carbon ferrochrome producers holding offers
Chrome ore traders expecting higher prices
Chinese tantalite import prices tend to decrease further
Cobalt chloride market sees dropping price
Senze Coal & Aluminum’s first stage alumina project comes on stream
Average grade niobium oxide market still stable in China
cobalt monoxide price decreasing due to weak demand
Magnesium ingot price holding steady
Most private-owned cadmium smelters in China halt production due to feeble
demand
Lubei Chemicals suspends alumina production for equipments maintenance
Chinese silicon metal smelters hold offers firm
India intend to join polysilicon trade spat between U.S. and China
European silicon metal market quiet with the approaching of holiday
Chinese chemical silicon metal market still in thin trading
Chinese ammonium molybdate market remains inactive
APT price stable but demand keeps low
South Korean silicon metal market calms down again
Tungsten scraps price moves down with weak demand
Tungsten concentrate market stalemate
European ferromolybdenum market in low activity
US ferromolybdenum rates keep unchanged despite non-existent activity
US ferrotitanium figures drop slightly due to increased supply
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US traders: Ferrovanadium inquiries lessen, spot rates decrease further despite firm
contracts
Foundation stone laying ceremony for aluminium alloy auto hub project held in
Yuncheng
Russian magnesium ingot market quiet
Russian ferrotitanium market quiet
Russian Rezhnikel to be closed
Russian ferrosilicon market quiet
Russian silicomanganese market weak
Russian ferromanganese market runs slowly
No rebound in Russian ferrovanadium market
Russian ferromolybdenum market to keep stable
European ferrotungsten market holding
Russian silicon metal market still weak
ArcelorMittal Dofasco hikes steel sheet prices
It’s reported that ArcelorMittal Dofasco announced to hike the spot prices of steel sheet in
response to growing demand and extended delivery.
After the price hike, the ex-factory prices of hot rolled coil are at CAD755/short ton; that of
cold rolled coil is at CAD865/short ton and that of hot dipped galvanized steel is at
CAD870/ton.
Tokyo Steel hikes domestic prices of long steel products for January contracts
It’s reported that Japanese Tokyo Steel announced on Monday that it would raise the
domestic prices of selected steel products by ￥1,000~￥3,000/ton for next January.
Tokyo Steel declared that it decided to raise the prices since it has seen the emerging
demand for steel long products.
It’s known that the firm will increase the domestic prices of rebar by ￥3,000/ton and to hike
the prices of H beams, I beams, channels and sheet piles by ￥2,000/ton.
Besides, it increased the prices of hot cut sheet and chequer plate used in building
applications by ￥1,000/ton.
Kiyoshi Imamura, the marketing director of Tokyo Steel said that the demand for
construction steel was strong and recovering, especially in the Tohoku area after the
devastating earthquake on March 11st.