Metals &Mining Alert-Daily prices and news:Global steel output rises 7%YoY
Industrials (/lb): aluminum $0.86 (-0.7%), copper $2.75 (-0.2%), lead $1.03 (-1.9%), molybdenum $6.80 (+0.0%); nickel $4.92 (-2.6%); zinc $1.30 (-0.3%);Precious (/oz): gold $1,236 (-0.2%), silver $17.98 (-0.4%); Steel (/mt): ChinaHRC $583 (+0.8%), SHFE Rebar $521 (+1.9%), MB Scrap Index $274 (+0.0%);Bulks: iron ore (/dmt) $95 (+1.4%), coking coal (/mt) $159 (+1.0%), freight (BCI)856 (+8.2%); Energy: Brent (/bbl) $56.70 (+0.9%), WTI (/bbl) $54.06 (+1.2%),natural gas (/mmBtu) $2.56 (-9.5%), thermal coal (/t) $80 (+0.1%).
Global steel output increases 2% MoM to 137m tons (+7% YoY) in January at autilization of 68.5% (+90 bps MoM, +340bps YoY) on higher output in SouthAmerica (+23%, +12%), Asia (+1%, +8%) and China (flat, +7% YoY). Chineseoutput was flat sequentially as it fell in conjunction with Lunar holidays. (WSA)Iron ore price hits a 30-month high of $95/t (+5% WTD, +19% YTD), despitesupply growth expectations in 2017, record inventory levels at ports and anuncertain Chinese demand outlook. The price increase is primarily attributableto higher imports from China at 92mt in January (+12% YoY). (Mining.com)US steel output rises 1.6% WoW to 1.77m st (+3.3% YoY) with utilization at 7-month high of 74.6% (+120bps WoW, +150bps YoY) for week ending 2/18,primarily on higher output from Southern mills (+2.7% WoW). YTD output is~12.1m st (+4.8% YoY) with utilization at 72.7% (+190bps YoY). (AISI)US stainless flats surcharges steady for March. Cold-rolled surcharge for majorgrades of 304 and 316 were kept at ~USc59/lb and USc72/lb, respectively byAllegheny, AK Steel and North American Stainless. (SBB)BHP Billiton sees Chinese steel demand softening in 2H17 as growth rate inChina’s housing market eases amid escalating supply-side measures and ironore prices gradually come off from their current highs. Also, company expectscoking coal prices to return to industry marginal cost once seaborne andChinese supply constraints are eased. Company guided iron ore production of228-237mt for FY17 (excluding Samarco operations). (Company)Teck announces cash tender offers to purchase up to US$650m of 3.0% notesdue 2019, 8.0% notes due 2021, 4.5% notes due 2021, 4.75% notes due 2022and 8.5% notes due 2024. The tender offers will expire on 3/20. Notes validlytendered prior to 3/6 (early tender date) will receive early tender premium ofUS$30 per US$1000 principal amount tendered. (Company).
Hecla reports YE16 silver reserves of 172m oz (-2% YoY) and gold reserves of2m oz (-3% YoY). Measure and Indicated (M&I) silver resources rose 6% to172m oz and Inferred resources increased 28% to 464m oz. M&I goldresources at 4.8m oz (+4%) and Inferred resources at 1.8m oz (+6%).
Exploration expense for 2017 expected at $25m (vs. $15m in 2016) due tomore aggressive exploration programs at San Sebastian, Casa Beradi andGreens Creek. (Company).