Metals &Mining Alert-Daily prices and news:US sets higher CVD on Turkish rebar
Industrials (/lb): aluminum $0.87 (+0.9%), copper $2.55 (0.0%), lead $0.95 (-2.4%), molybdenum $7.82 (+0.0%); nickel $4.14 (-1.2%); zinc $1.15 (-1.0%);Precious (/oz): gold $1,236 (+0.5%), silver $16.74 (+0.8%); Steel (/mt): ChinaHRC $471 (+0.3%), SHFE Rebar $433 (+0.2%), MB Scrap Index $267 (-1.1%);Bulks: iron ore (/dmt) $62 (+0.7%), coking coal (/mt) $162 (-3.6%), freight (BCI)1,632 (-1.7%); Energy: Brent (/bbl) $51.65 (-0.3%), WTI (/bbl) $48.66 (-0.4%),natural gas (/mmBtu) $3.23 (-3.6%), thermal coal (/t) $73 (-0.1%).
US Commerce Department sets higher final anti-subsidy duty (CVD) of 16%(vs. 3% preliminary) on rebar imports from Turkish producer Habas. Also,Commerce assigns final antidumping duties (AD) of 5-8% and 206-209% onTurkey and Japan, respectively, largely in-line with preliminary result. In 1Q17,total rebar imports rose 12% YoY to 628k st, with Turkish imports up 11% to518k st (83% of total or 23% US market share). With Habas now facingcombined duty of 21% (vs. 9% prior), import arbitrage appears significantlyreduced and therefore should benefit US rebar mills – Commercial Metals,Nucor and Steel Dynamics within our coverage. Next, ITC injury determinationon 6/29 and final AD for Taiwanese rebar on 7/5. (US Commerce, DB)Gold prices at 2-week high of $1,243/oz as weak housing data, decreasing USyields and a rising euro reduced expectations of a rate hike next month. Dollarfell despite US manufacturing production posting its largest gain in 3-years.
Also, political tensions heightened as South Korean defense minister claimedNorth Korea’s missile program is progressing faster than expected. (Reuters)Rio Tinto CEO Jean-Sebastien Jacques believes new steel industry policies inChina will increase demand for higher-grade iron ore. China plans to eliminate100-150mt of steel capacity to reduce pollution, which will makeenvironmental permits harder to procure for mills. Demand for high-grade ironore could rise as larger-polluting blast furnaces are eliminated. (Mining Weekly)US steel import permits for May through 5/16 total 1.9m st. If adjusted to a fullmonth, imports would be 3.6m st (+25% YoY), vs. April permits of 3.5m st andMarch imports of 3.4m st. Semis (+127kt, +16%) appear to increase the mostMoM, followed by wire rods (+87kt, +59%) and rails (+54kt, +159%), whereas,oil country tubular goods (-76kt, -22%) permits fell. (US Import Administration)US steel output down 0.7% WoW to 1.73m st (-0.2% YoY), with utilization at74.1% (-40bps WoW, flat YoY) for week ending 5/13. Increase in output fromSouthern and Western mills offset decline from other regions. YTD outputtotals ~40m st (+3.2% YoY), with utilization at 74.3% (+220 bps YoY). (AISI)Vale to suspend Birchtree nickel mine in Manitoba, Canada from 10/1. Weaknickel prices and declining ore grades from the 51-year old mine prompted thedecision. Suspension to result in 200 jobs being cut and 6,000t/pa reduction innickel output. Vale plans to offset by increasing output at the nearbyThompson mine with a $100m investment to upgrade the mine. (Mining.com)