NEWS: 05.09.12 Top Head Lines for the Day *** Russian silicomanganese market quiet *** Russian ferrosilicon market runs stably *** Russian ferromanganese price stable *** Russian ferromolybdenum prices hover low despite increasing enquiries *** Chinese ferrosilicon export prices decline *** Argentina extends ban on ferrous scrap exports *** Chinese mills continue to cut scrap buying prices *** Tokyo Steel cuts scrap buying prices again *** USEC dock scrap prices moving down *** Black Sea scrap sales signal weaker Turkish import prices *** Chinese FeSi Market Shows No Signs of Recovery *** FeSi Demand Further Retreats in China *** European molybdenum price surge hits buffers *** European manganese market consolidates gains *** Indian alloy market prices stable *** Silicomanganese 65/17 prices decline further in china *** Aluminum ingot price increase goes on *** Die-casting zinc alloy producers hard to get profits *** Chinese ferrosilicon traders lose confidence for the market *** Upward tendency in selenium market *** US high carbon ferrochrome market soft, unchanged *** US ferrosilicon rates increase, spot keeps tight *** South Korean ferrosilicon market quiet with new competitive offers from Indonesia *** Globally Magnesium alloy smelters keeping price steady *** Indian iron ore price declines *** US steel scrap numbers see slight depreciation *** Indian Non Ferrous scrap metal prices gain Indian alloy market prices stable Indian silico-manganese, ferro-silicon and ferro-manganese prices are stable. The silico- manganese market is likely to improve when European buyers return to the market for buying. US ferrosilicon rates increase, spot keeps tight Sources in the US noted that, despite minimal movement and demand for ferrosilicon, prices have been following an upward trend over the past few weeks due to a tightening of supply in the domestic market. Throughout the summer months, suppliers aimed to take control of material since prices were falling, and it seems like availability has shrunk to the point where small pockets of interest and few inquiries are starting to cause offers to rise because of limited product. There have been reports of Chinese suppliers losing profit because of the soft numbers, and the current uptick could be a short-term fix to remedy Indian iron ore price declines Currently the iron ore price in India is experiencing a significant decrease and September will continue to be difficult for traders to get through. Insiders predict the unsatisfying situation will last at least to the end of September. Chinese domestic needle coke price goes down In view of lower price of raw materials, Chinese major producers of needle coke reduce the price of coal-based needle coke from RMB10,500-11,000t USD1,667-1,746t ex works to RMB10,000t ex works. A Shanxi-based smelter with a production capacity of 40,000tpy of coal-based needle coke offers RMB10,000t USD1,587t ex works from late August, down by RMB500t at least. Russian ferrosilicon market runs stably Russian ferrosilicon market has run stably with steady quotations recently, according to insiders. Concluded prices for ferrosilicon 65%min keep at RUB50-52kg USD1,553-1,615t. Japan’s domestic vehicle sales increase by 7.3% y-o-y in July According to statistics released by the Japan Automobile Dealers Association, Japan ’s domestic sales of vehicles including new cars, trucks and buses totaled 232,372 tons in August, rising by 7.3% in comparison of that in the same period of a year earlier. Also, the figures have increased for consecutive twelve months, boosted by the government’s buying incentives. In July, Toyota sold 115,897 units in August, rising by 17.8%; Lexus sold 3,264 units, falling by 17.9%; Nissan sold 31,405 units, decreasing by 7.0% and Honda sold 24,376 units, down by 4.6%, all compared to that in the same period of the previous year. Indian Non Ferrous scrap metal prices gain Indian scrap metal prices rose on Monday both in Mumbai and Delhi metal market. In Mumbai metal market, copper cable scrap, copper armetur, copper utensil scrap and copper sheet cutting prices advanced by Rs 1000 per ton to Rs 485000 per ton, Rs 468000, Rs 442000 and Rs 463000 per ton, respectively. Copper heavy scrap prices also gained in Mumbai metal market, which advanced to Rs 478000 per ton from Rs 474000 per ton previously. Meanwhile, in Delhi metal market, copper scrap prices fell to Rs 460 per kg on Monday. however copper bar and copper rod traded higher in Delhi metal market, both advanced by Rs 2 per kg to Rs 505 per kg and Rs 503 per kg, respectively. Following are the metals prices in Mumbai on Monday (Prices in Indian Rupee per ton). Metals Monday Previous Copper Wire Bars 513000 510000 Aluminium Ingots 143000 143000 Zinc slab 135000 135000 Lead ingot 121000 122000 Tin slab 1250000 1250000 Nickel Cathode 1055000 1060000 Scrap Copper cable scrap 485000 482000 Copper heavy scrap 478000 474000 Copper armetur 468000 467000 Copper utensil scrap 442000 441000 Copper sheet cutting 463000 462000 Brass utensil scrap 315000 316000 Brass sheet cuttings 327000 325000 Aluminum utensil 113000 114000 scrap Delhi metal prices in Indian Rupees per kg Metals Monday Previous Copper Bars 505 503 Copper Rod 503 501 Copper Scrap 460 462 Zinc Ingots 133-148 133-148 Tin Ingots 1270 1280 Nickel Strip 4 x 24 “ Inco 1215 1220 4 x 4 “ Inco 1180 1190 4 X 4" 1080 1090 Aluminium Ingots 123-147 123-147 Lead Ingots 118-139 118-139 US steel scrap numbers see slight depreciation Activity for steel scrap in the US market remains weak as participants report downward pressure on values. Some sources surmise that possible decreases could be due to a slight slow-down in activity after major shipments to Turkey, which reduced supply and pushed rates upward. US values for steel scrap have declined slightly to USD325-335t delivered in California for an 80:20 mix of HMS1 and HMS2, a drop of USD5.0t since last week. Shipments to Korea have increased USD10.0t for an 80:20 mix, with a minor pick-up in deals, now ranging from USD385-395t CFR Korea. Chinese domestic stainless scrap price up Boosted by continuous price rise of nickel in LME futures market, the price of stainless scrap in China goes up slightly for the time being, but most traders are not confident of the coming market due to limited sales volumes. Insiders think the price is unlikely to further move up in following two days. North China: A purchasing manager from Shunde Precision Manufacture, a stainless scrap end user in Linqing, Shandong Province tells Asian Metal that the delivered price of 304 solid scrap is RMB12,750t VAT included, RMB50t higher than that of the previous trading Scrap base prices dip in Japanese Tokyo Bay region It’s reported that the scrap base prices in the Japanese Tokyo Bay region were at ￥26,500~￥27,000/ton FAS on August 30th, decreasing by￥1,000/ton, affected by Tokyo Steel’s price cut. At the same time, the current transaction prices of the Japanese H2 scrap sold to South Korea are at ￥28,000/ton FOB, remaining flat. However, industry sources said that the Japanese scrap export prices might decrease in the near future. Tokyo Steel cuts scrap purchasing prices Reportedly, Japanese Tokyo Steel announced to cut the scrap purchasing prices by ￥500/ton from September 1st. After the adjustment, the average purchasing prices of H2 scraps are at￥26,500~￥28,500/ton. Among them, the H2 scrap purchasing p prices in Okayama plant is at￥28,000~￥28,500/ton; that in Kyushu plant is at ￥28,000/ton; that in Tahara plant is at ￥27,500/ton; that in Utsunomiya plant is at ￥27,500/ton and that in Takamatsu steel center is at ￥26,500/ton. Traders indicated that Tokyo Steel’s price cut was affected by the substantially decreased iron ore prices. It’s known that the spot iron ore dropped sharply by 10% last week. The spot prices of Indian iron ore fine contain 63.5% Fe decreased to US$97~US$98/ton. Steel melting scrap price movement on September 3 Melting scrap 80:20 HMS Location Change Bangalore 0 Chennai 0 Hyderabad 0 Kandla 0 Kanpur -174 Kolkata 169 Ludhiana 181 Mandi 356 Mumbai 0 Rudrapur -261 Change is on 3rd September as compared to 31st August 2012 Change is in INR per tonne Rebar TMT QST price movement in India on September 3 TMT Fe 415 Location Change Ahmedabad 0 Bangalore 0 Chennai 0 Delhi -113 Hyderabad 0 Indore -300 Kanpur -500 Kolkata 0 Ludhiana 0 Mandi -209 Mumbai -467 Raipur 0 Rudrapur -100 Muzaffarnagar -400 Change is on 3rd September as compared to 31st August 2012 Change is in INR per tonne Pencil ingot price movement in major places on September 3 Pencil ingot Location Change Ahmedabad 0 Alang 0 Bhiwari 0 Chennai 0 Durgapur -267 Ghaziabad -300 Hyderabad 0 Jaipur 0 Jamshedpur 0 Ludhiana 181 Kanpur -174 Kolkata 0 Mandi -300 Mumbai -400 Muzaffarnagar -288 Nagpur 0 Raigarh -104 Raipur -200 Rourkela -105 Rudrapur -610 Change is on 3rd September as compared to 31st August 2012 Change is in INR per tonne Pig iron price movement on September 3 Pig iron Foundry Grade Location Change Agra 0 Jallandhar 0 Kolkata 0 Ludhiana 182 Raipur 0 Change is on 3rd September as compared to 31st August 2012 Change is in INR per tonne HR steel prices on September 3 HRC Tube 2.5x1250 Location Change Ahmedabad 0 Bangalore 0 Chennai 0 Delhi -266 Indore 0 Kolkata 0 Ludhiana -181 Mumbai 0 Change is on 3rd September as compared to 31st August 2012 Change is in INR per tonne Sponge iron prices dip in Raigarh Raipur and Rourkela Sponge iron Location Change Bellary 0 Kolkata 0 Ludhiana 91 Raigarh -100 Raipur -100 Rourkela -100 Change is on 3rd September as compared to 31st August 2012 Change is in INR per tonne Chinese ferrosilicon export prices decline The mainstream export price of Chinese ferrosilicon dropped again for the quiet demand from foreign consumers. Currently the mainstream price decreased to USD1,340-1,360t FOB China for ferrosilicon 75%min and around USD1,320t FOB China for ferrosilicon 72%min, a decline of about USD10t compared with those of 5-6 days ago. Steel scrap prices to decline in China Steel scrap prices decrease by RMB30-50t in Zhejiang as steel prices continue to decline. Mainstream concluded prices of burden fines are at RMB2,280-2,300t VAT excluded delivered by cash payment. A purchaser from Zhejiang Hangzhou stated that steel scrap purchasing prices decreased by RMB30t recently with current bids of burden fines I, Fujian mills decrease steel scrap purchasing prices by RMB30-50t as steel prices continue to decline. Mainstream concluded prices of burden fines and HMS are at RMB2,160-2,180t and RMB2,100-2,120t VAT excluded delivered by cash payment respectively. A purchaser from Fujian Sanbao Steel stated that the mill decreased steel scrap purchasing prices by RMB30t today with mainstream bids of qualified scrap, HMS and MMS at RMB2,180t, RMB2,120t. Lianyuan Steel, based in Hualing, South China, has cut down the purchase price for steel scrap by RMB100t with figures for steel scrap I at RMB2,620t and RMB2,630t procured outside of Hunan and inside of Hunan respectively, both on VAT included delivered basis. An official from the mill noted that the mill procures steel scrap I at RMB2,620t and RMB2,630t procured outside. Hunan Hengyang Steel Pipe reduced steel scrap purchase prices by RMB50t recently. Current prices for fine steel scrap is at RMB2,580t in Hunan and RMB2,630t for steel scrapⅠoutside the province, all prices are on VAT included delivered basis. During the interview, an official from the mills reported to Asian Metal that current purchase prices for fine steel scrap stays at RMB2,580t in Hunan and RMB2,630t for steel scrap. Steel scrap market prices decreased by RMB50t in Dongguan , Guangdong recently. Current local steel scrap prices are RMB2430-2450t VAT excluded delivered for shredded steel scrap. A source from Dongguan-based Xingfa Material Recycling Company noted that transaction price keeps at RMB2,450t. As the price of steel keeps sliding, Hubei-based Wuhan Iron and Steel Group Corporation WISCO further lowers the purchase prices of steel scrap by RMB30-70t, and the current price of HMS is at RMB2,760t VAT included delivered. As Asian Metal reported on August 27, WISCO cut purchase prices of steel scrap by RMB30t on August 26 to RMB2,830t for low-sulfur steel scrap I or II, RMB2,810t for HMS II, RMB2,760t for MMS, RMB2,670t for SMS, RMB2,490t for uniformed steel scrap, RMB2,450t for LMS, RMB2,310t for regular shredded steel scrap, all on VAT included delivered basis.. As the overcapacity of crude steel sustains and the price of steel remains in a downtrend, Jiangsu-based mainstream steel mills cut the purchase price of steel scrap by RMB30-100t to RMB2,550-2,570t VAT included delivered for burden fines. Changes and prices of Jiangsu-based mainstream steel mills Steel mill Item Spec. Price Ups and downs Unit Basis Origin Shagang Steel Burden fines I 6mm 2,590 -30 RMBt VAT included delivered Jiangsu Burden fines II 4mm 2,520 -30 RMBt VAT included delivered Jiangsu HMS I 5mm 2,560 -30 RMBt VAT included delivered Jiangsu HMS II 4mm 2,530 -30 RMBt VAT included delivered. Anhui-based Masteel keeps lowering the purchase price of steel scrap by RMB70t, and the price has been decreased to RMB2,720t for fine burden fines, to RMB2,620t for HMS, both on VAT included delivered basis. Asian Metal reported in early August: “Anhui-based Masteel lowered the purchase price of steel scrap largely to RMB2,860t for HMS 12mm min, RMB3,000t for HMS1 reroll grade. Liaoning-based Linggang Steel cuts steel scrap purchasing prices by another RMB20t today to RMB2,540t for HMS and MMS 6-10mm, at RMB2,520t for SMS 4-6mm and at RMB2,420t for uniformed steel scrap 2-4mm, all on a VAT included delivered. Longjiang-based Acheng Steel cut steel scrap price recently. Current price holds at RMB2,220t VAT excluded delivered for HMS from the mill, down by RMB30t compared with that of late August. An official from the mill stated that movements in steel market ran sluggish these days. Coking coal price drops weakly Coking coal price has dropped weakly in Outer Mongolia recently with prevailing price for Outer Mongolian fine coal 3# at RMB900t VAT included Kouan in Ganqimaodao Kouan. The future price is likely to fall slightly due to oversupply, soft demand for coking coal. Thermal coal price keeps stable at about RMB490t VAT included FOT for thermal coal 4500cal, and at about RMB520t VAT included FOT for thermal coal 5000cal at present in Heilongjiang . A source of a Heilongjiang-based coal trading company reported that thermal coal price basically keeps stable now at RMB495t VAT included FOT for thermal coal 4500. Thermal coal price has been stable over the past 5 weeks. Thermal coal 5500cal prices are at RMB340-350t VAT included at mines in Inner Mongolia , the same with those last month.. Coke market keeps sluggish in Hebei and current mainstream prices keep at RMB1180- 1250t VAT included Ex works by DA payment for metallurgical coke II in Tangshan and at RMB1,280-1,350t VAT included Ex works by DA payment for sub-metallurgical coke I; the mainstream price keeps at RMB1,260t VAT included. Chinese ferrosilicon traders lose confidence for the market According to Chinese ferrosilicon traders, they have lost confidence for the future market because the whole market still keeps quiet and the government does not formulate any tangible policies to promote economy. Global Foundry Materials Trend Headlines for the Day Silicomanganese 65/17 prices decline further in Guangxi Alumina market stabilizes temporarily in northern China Aluminum ingot price increase goes on Zinc ingot price continues to move up sligtly Indonesia bauxite suppliers manages to increase offers Lead ingot prices nose up slowly in Chinese market Alumina production in Shanxi up by 14.3% MOM in August weighing on the price Fierce price competition in secondary aluminum alloy ingot market Die-casting zinc alloy producers hard to get profits Little change in copper concentrate market Nickel sulphate trading keeps inactive Chinese silicomanganese 60/14 prices slip further Watching sentiment strong in tin market Copper price keeps rising Zinc sulfate market remains stable High-grade ferronickel price holds firm Chinese high carbon ferromanganese demand unimproved Chinese ferrosilicon traders lose confidence for the market Kadiya Aluminum postpones new line of aluminum alloy Most manganese slag producers in Guangxi shut down Lateritic nickel ore import price moves down slightly Tongchuan Aluminum gets favorable power charge Yunnan Aluminum delays the start of new smelting capacity Slow trading in copper rod market Participants watch tellurium market Zhejiang Copper increases copper rod production Upward tendency in selenium market Molybdenum concentrate prices in uptrend, ferromolybdenum market firm in China Titanium rutile price down slightly in Hainan Thin trading in tin concentrate market Nickel cathodes trading very bad A few steel mills reduce high carbon ferrochrome consumption Manganese briquette price remains unchanged Ferrodysprosium market remains quiet China-made ferroniobium market sees rare transactions More supply in manganese flake market Optical grade niobium oxide market keeps dim with prices showing downward tendency PrNd mischmetal offers show downward tendencies Some Chinese steel mills reduce ferrosilicon purchase volume Chinese ammonium molybdate prices difficult to rise on account of weak demand Chinese crude cadmium producers unwilling to sell ircon sand price likely to drop greatly in Chinese market Magnesium ingot market runs slowly Cold responses from magnesium powder consumers South Korean ferromolybdenum buyers appear resisting quotations at USD31/kg Magnesium alloy smelters keeping price steady South Korean ferrosilicon market quiet with new competitive offers from Indonesia Antimony trioxide market moves slowly South Korean high-carbon ferromanganese export market seeing lower quotations Antimony ingot export market quiet Brazilian manganese ore sees downtick, sales keep light US ferromolybdenum rates unchanged, market keeps weak US traders: Ferrovanadium rates level-off as demand remains quiet US traders: Ferrosilicon rates up slightly despite weak movement US ferrosilicon rates increase, spot keeps tight US high carbon ferrochrome market soft, unchanged European lanthanum oxide markets sluggish European manganese flake prices remain firm despite limited end user activity Turkish lumpy chrome ore market sees no sign of recovery, miners cease operation Turkish concentrate chrome ore market sees limited activity European antimony market stable, price unchanged Marginal increase in activity in the European indium market European ferrotungsten buying activity slow, prices stable European molybdenum oxide figures increase European ferromolybdenum consumer enquiries minimal Brazilian manganese ore prices, activity dip; near-term recovery not likely Russian ferromanganese price stable Russian ferrosilicon market runs stably Russian silicomanganese market quiet Russian ferromolybdenum prices hover low despite increasing enquiries Russia’s iron ore exports up by 3% y-o-y in March According to statistics released by the Russian customs, Russia exported 2.151 million tons of iron ore in this May, rising by 2.8% year on year. In the first five months of this year, the country’s iron ore exports totaled 10.292 million tons, increasing by 3.2% in comparison 9.973 million tons in the same period of 2011. In the given period of time, China was the largest importer of the Russian iron ore with 6.062 million tons, increasing by 8.4%; Ukraine was the second largest one with 1.077 million tons, soaring by 91.3% and Slovakia was the third largest one with 677,000 tons, decreasing by 44.5%, all compared to that in the same period of a year earlier. Chinese domestic CRC prices drop Chinese domestic CRC prices show a downward trend again, but the demand from downstream customers is still very weak with declining sales volumes reported by the traders. Insiders deem the prices may go on falling down in the forthcoming days. East China: A sales official from a local CRC distributor in Shanghai, Chang’an Trading, discloses to Asian Metal that he quotes RMB4,300t VAT included for DC01 1.0mm*1,250mm*C from Bengang Steel, RMB20t lower than that of the previous trading day. According to him, the prices at present are decreasing all the time. Many traders are afraid of bearing heavy pressure. Die-casting zinc alloy producers hard to get profits Though the traditional boom consumption season is coming in September, Chinese die- casting zinc alloy market remains very weak and most participants reported it’s hard to get profits.
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