Metals &Mining Alert:Daily prices and news,China's Shaanxi province begins output cuts
Industrials (/lb): aluminum $0.99(+0.5%), copper $3.13(-0.5%), lead $1.12(+0.8%), molybdenum $7.14(+0.0%); nickel $5.77(+1.0%); zinc $1.46(-1.2%);
Precious (/oz): gold $1,270(-0.5%), silver $16.84(-1.6%); Steel (/mt): ChinaHRC $616(-0.3%), SHFE Rebar $554(+0.1%), MB Scrap Index $302(+0.0%);
Bulks: iron ore (/dmt) $60(+0.2%), coking coal (/mt) $180(+1.4%), freight (BCI)3,036(-0.8%); Energy: Brent (/bbl) $62.07(+2.4%), WTI (/bbl) $55.64(+2.0%),natural gas (/mmBtu) $2.98(+1.7%), thermal coal (/t) $99(-1.2%).
China’s Shaanxi province releases its winter air pollution control measures andorders local mills to reduce blast furnace utilization rates to 50%. The releasedid not specify the names and capacity of the targeted mills, nor the exactduration of the cut. Shaanxi’s Environmental Protection Department has saidthe output cuts would be implemented during Nov 1- Mar 1next year. Shaanxihosts 3major mills, with a combined pig iron capacity of ~11mtpa, implying anoutput loss of 3.5mt from Nov 1to Mar 1. Shaanxi province was not includedin the original “2+26” cities plan proposed by China, but it has joined themovement as it forecasts worsening winter conditions. (SBB)
Iron ore price rises 95c WoW to $60/t (-40c DoD). Buyers returned as pricecorrected, but participants were convinced that any uptick in price could notbe sustained as output cuts continued to dampen demand. The seaborne ironore lump market premium continued to decline on rising stockpiles. (Platts)
Argentina’s largest aluminum producer, Aluar Aluminio Argentino, is seekingnew markets due to US probe into aluminum imports on grounds of nationalsecurity. It ships an average of 170ktpa into US (~2.6% of total imports). USCommerce Department had announced in April that it was probing imports ofaluminum from China and elsewhere. However, the company plans to exportthe same amount next year and does not believe any tariffs will beimplemented due to the price effects on raw materials used by US auto andconstruction industries. (Reuters)
Demand for physical gold in Asia is expected to increase in coming weeks,mainly due to the beginning of the peak wedding season in India. Dealers inIndia were charging a premium of $3/oz over official domestic prices. Goldimports fell in October, as the government tightened norms and restricted dutyfree imports for domestic sale. (Mining.com)
US Oil & Gas rig count declined by 11WoW to 898(+329YoY) for weekending 11/3. Oil-directed rigs fell 8to 729(+279) and gas-directed rigs slippedby 3to 169(+52). Canadian count was up 1to 192(+38). (Baker Hughes)Nucor announces $40/st price increase on all new orders for carbon, alloy andheat-treated plate. Market participants believed a price increase would becoming soon as price fell $30/st in October, intensifying the price erosion thatoccurred for most of 2017. This is the first plate price increase since anunsuccessful attempt to raise prices in mid-August. (SBB)