Metals &Mining Alert:Daily prices and news,Iron ore recovers on stable demand from mills
Industrials (/lb): aluminum $0.85 (-0.3%), copper $2.57 (+0.0%), lead $0.96 (+0.9%), molybdenum $7.82 (+0.0%); nickel $4.06 (+1.0%); zinc $1.15 (+0.9%); Precious (/oz): gold $1,254 (0.0%), silver $16.69 (-0.3%); Steel (/mt): China HRC $502 (+0.2%), SHFE Rebar $457 (+1.0%), MB Scrap Index $270 (+0.0%); Bulks: iron ore (/dmt) $56 (+1.8%), coking coal (/mt) $141 (+0.4%), freight (BCI) 1,213 (-5.0%); Energy: Brent (/bbl) $47.37 (+1.0%), WTI (/bbl) $44.74 (+0.6%), natural gas (/mmBtu) $3.04 (-0.6%), thermal coal (/t) $81 (+0.1%).
Iron ore price marginally recovers from 12-month low to $55.6/t as Chinese steel prices remained stable. High margins encouraged steel mills to chase high grade feedstock for blending. This is positive for Vale which produces premium ore from Carajas, with 72% of 2016 revenue coming from iron ore and 46% from Chinese customers. (SBB, DB) .
US housing permits in May fall to SAAR of 1.2m units (-4.9% MoM, -0.8% YoY). Privately owned housing starts fell to 1.1m units (-5.5%, -2.4%). However, housing completions rose to 1.2m units (+5.6%,+14.6%). (SBB) .
US International Trade Commission affirms injury to US producers from Turkish and Japanese rebar. This formalizes previously announced duties on Turkish (5-8% Anti-Dumping, 16% countervailing for Habas) and Japanese exporters (206-209% AD). Domestic mills acknowledged the result but urged the President to provide comprehensive relief in Section 232 outcome. (SBB) .
Smelters in Indonesia cease operations as refined nickel prices have been pressured by expectations of more ore supply from Philippines and Indonesia. 13 smelters (capacity: 750kt) have halted operations as Indonesia has resumed exports and Philippines has appointed a new environment minister, who has promised no arbitrary mine suspensions. (Reuters) .
US Oil & Gas rig count rises to 1,092 (+33 WoW, +599 YoY) for week ending 6/19. Oil directed rigs rose to 747 (+6 WoW, +410 YoY) and natural gas directed rigs to 186 (+1 WoW, +100 YoY). (Baker Hughes) .
ArcelorMittal completes negotiations with Italy to purchase Ilva, an integrated steelmaking asset which is Europe’s largest single steel site, for $2.02bn, with annual leasing costs of $202m. Estimated capex is $2.4bn over 7-year period which will focus on blast furnaces, finishing lines, and environmental compliance. Synergies of $347m targeted by 2020. (Company)Carpenter Technology (CRS) and Samuel, Son & Co. announce strategic alliance to provide end-to-end supply chain solutions for additive manufacturing. Samuel’s manufacturing, metal processing and distribution, combined with Carpenter’s position as leading global producer of powder metals and specialty wire will offer customers turnkey solutions. Separately, CRS enters into supply relationship with Desktop Metals to provide alloy grades which will be used in metal 3D printing systems. (Company)