NEWS: 21.06.11 Today’s Top Headlines *** European nickel premiums ease as demand worries weigh *** Nelcast board approves stock split *** LME nickel prices drop further *** American silicon manganese import large rise *** German shredded increases on average by €15/t *** Highest bid in Indian pig iron tender rises by $8/t *** China FeCr demand expected to stay weak *** Ferro-titanium price still strong in Europe *** RMDAS index details June US scrap price rise *** Selenium prices continue to ease *** Chinese ferro-chrome market remains sluggish *** Magnesium ingot export market slack *** European ferrotungsten price keeps falling *** Chinese manganese price dips further *** Tin ingot prices to go down further *** Chinese ferrosilicon export market sluggish Scrap Views on scrap M&As mixed, but values up The outlook for scrap industry consolidation has little consensus among industry players, although one common thread is that acquisitions are becoming more expensive. OmniSource SC yard plan has dealers on edge OmniSource Corp. plans to open a scrap metal facility in Rock Hill, S.C., where it recently received a permit to operate, driving local recyclers to predict a further tightening in material availability as the competitive environment grows more fierce. Scrapyard injury lands Triple M $75,000 fine Triple M Metal LP has been fined $75,000 by the Ontario Court of Justice after a customer at its scrapyard was injured. US aluminum scrap exports at 32-month high U.S. aluminum scrap exports scaled new heights again in April as increased demand from India and Mexico helped push volumes to a 32-month high. Scrap theft task force arrests two A Florida police task force that was formed recently to tackle the problem of metal thefts has made its first arrest. Nonferrous NY copper price slips while Greek debt concerns linger Copper fell 0.7 percent in New York on Monday to $4.0735 per pound, chalking up a fourth straight day of losses for the red metal. Benada will consolidate Fla. plants: exec Benada Aluminum Products LLC will close its Medley, Fla., extrusion plant and relocate all manufacturing to the former Florida Extruders International Inc. (FEI) complex in Sanford, Fla., if Benada‟s deal to buy the bankrupt company‟s assets is completed. Rockefeller renews Century retiree fight A U.S. senator has renewed his fight against Century Aluminum Co. and its decision to terminate retiree health-care benefits as the retirees‟ last day of coverage—June 30—fast approaches. Antimony seen under pressure U.S. antimony prices have weakened, and traders say a sharper drop is looming on the back of new, lower offers from Chinese sellers. CLOSE TO CLOSE: Copper edges up in LME kerb Copper improved on its official price in Monday‟s kerb trading on the London Metal Exchange following a dismal performance by the base metals as fears over the Greek economy kept the euro weak Bhutanese ferrosilicon market slow:: Bhutanese ferrosilicon market is slow for the moment due to the weak demand and surplus Chinese ferrosilicon in the market, and the mainstream price for Bhutanese ferrosilicon 70-75% remains at INR70,000-72,000t USD1,554-1,598t ex Bhutan presently. Chinese ferrosilicon export market sluggish:: Chinese ferrosilicon export market is still sluggish although domestic market is steady now. Some ferrosilicon traders increased their quotations, but the concluded price hasn‟t gone up. A Beijing-based ferrosilicon trader quotes ferrosilicon 75% at USD1,540t FOB Chinese silicon metal market goes down:: The production capacity of silicon metal in South China released gradually recently as the power price turned to be stable following the increasing rainfall, and silicon metal market began to move down since last week. Most market participants think that Chinese silicon metal price is likely to decrease further in the near future due to the increasing output. The mainstream prices for 5-5-3 are around RMB13,500-13,600t USD2,084-2,099t in ports now and a few smelters have lowered offers Chinese ferro-chrome market remains sluggish :: The Chinese ferro-chrome market is still sluggish with falling prices. And some producers are unwilling to sell and even some have stopped production as profit margins are low. The high carbon ferromanganese finalized a deal worn out slightly obviously :: It is reported that the present south some areas finalized a deal slightly obviously worn out, a 65# high carbon ferromanganese group of phosphorus Yunnan some manufacturer quoted price in 7300 Yuan/tons, preliminary slightly had slides. The Yunnan other high carbon ferromanganese Manufacturer disclosed that recently inquired plate's customer not to calculate are too many, the market trend was not very also active, now high carbon ferromanganese (FeMn65C7.0P<0.25) . At present, because the high carbon ferromanganese present furnace rate is not special high, Yunnan has many factories the electric power factor not to be able the regular production, six months, in July belong to the steel products market off season, before the downstream steel mill is not prosperous to the high carbon ferromanganese's demand, the market supply and demand basic balanced, many professionals believed that within the short-term, the high carbon ferromanganese's market quotation will not have the obvious fluctuation. Nelcast board approves stock split Nelcast, a ferrous casting company, announced on Monday that its board of directors had given approval for its stock split. The shares with a face value of Rs 10 a piece will be split into five equity shares with a face value of Rs 2 a share. The stock split will be subject to approval of the shareholders at the ensuing annual general meeting. LME nickel prices drop further After the continuous drop in May, the nickel prices at LME dipped further to below US$22,000/ton in last week and the nickel prices in three months delivery was at US$21,625/ton on June 17th. Dealers pointed out that the base metal prices at LME decreased on June 16th due to the US ‟s weak manufacturing industry, Greece 's debt crisis and the drop of Federal Reserve Bank of Philadelphia 's general economic index of minus 7.7 in June from 3.9 in a month earlier. The LME nickel prices in three months delivery dropped to US$21,600/ton on June 16th, down by US$430/ton from a day earlier, the lowest level since last November. Russia’s scrap exports soar by 196.2% y-o-y in first four months According to data, Russia exported 289 thousand tons of scrap in April, dropped substantially by 93.8% from a year earlier. However, the country‟s scrap exports in the first four months totaled 1.175 million tons, soared by 196.2% year on year. Among them, 655 thousand tons of scraps were exported to Turkey , increased substantially by 760%; 204 thousand tons were to South Korea , up by 17.4%; 151 thousand tons were to Spain , increased by 36.3%. Accordingly, it‟s estimated that Russia ‟s total scrap exports in the entire 2011 would reach 3.53 million tons. Global Steel Scrap Market -- Turkish buyers shying away It is reported that steel scrap prices in Turkey took a beating last week as Turkish steel mills stayed away from market pressured by losses in steel billet prices. Turkish Import Change -1% Change is on June 17th as compared to 10th June 2011 Rotterdam export Change 3% Change is on June 17th as compared to 10th June 2011 Taiwan scrap imports in March total 466000 tonnes Taiwan's ferrous scrap imports totaled 466,000 tonnes in March 2011, up 8.9% from a year ago (up 14.6% from a month ago), of which the USA supplied the largest quantity of 230,000 tons or 49.4% up 37.7% According to Taiwanese trade statistics made available in Tokyo , in January to March 2011, Taiwan 's ferrous scrap imports totaled 1,401,000 tonnes up by 18.2% from the same period of 2010, averaging 470,000 tonnes per month, when they translated into an annualized 5,600,000 tonnes. In the breakdown by main sources, the USA ranked first at 737,000 tonnes or 52.6% of the total, up 46.6% from the corresponding period of 2010; Hong Kong second at 112,000 tonnes or 8.0%, up 56.7%; Australia third at 61,000 tonnes or 4.4%, up 18.6% and Philippines fourth at 39,000 tonnes or 2.8%, down by 1.1%. Meanwhile, Japan ended in covering a mere 15,000 tonnes or 1.0%, down 76.8%, when the nation degraded to 19th place. Hyundai Steel scrap purchases from Japan over South Korea's Hyundai Steel Co claims to have finished its ferrous scrap purchases from Japan up to July shipments, in which negotiated supply volumes are thought to have topped 200,000 tonnes in total. As a result, Hyundai Steel indicates intent to hold back on the collection of new offers of Japanese ferrous scrap by tender for a while as there is time before starting negotiations on purchases for August shipment. Also, the company is hinting the possibility of studying an additional purchase of No2 HMS from Japan for July shipment if there are low offer prices at around JPY 34,000 per tonne FOB. Still, the company describes its basic policy to shun positive purchases of No2 HMS for the present. In the background lies the outlook for a fall in ferrous scrap demand at the company's works where periodic equipment repairs are scheduled for the July to August period besides the company's negotiated ferrous scrap purchases in sufficient quantities. Japan's ferrous scrap suppliers once took a view that Hyundai Steel would need to continue purchasing a certain amount of Shindachi, a high grade of Japanese ferrous scrap, even if the company could reduce the purchase volume of No2 HMS from Japan. But Hyundai Steel is quoted as saying that the company is contemplating reducing the purchase volume of Shindachi as well for the present because the company is supposed to take delivery of a large shipload of bushelings in bulk from the UK . In May the domestic ferrosilicon output link ratio grows 3% In May the domestic ferrosilicon output slightly has the rise, the ferrosilicon (conversion including silicon 75%) the output total 509,700 tons, compares in April the small scale to rise 3%, amounts to 2,363,000 tons January to May domestic ferrosilicon output, amounts to 2,199,000 tons January, 2010 to May domestic ferrosilicon output, the accumulation month grows 6.94% compared to the same period. In May the domestic ferrosilicon was still the Inner Mongolian output occupies first, is 123,000 tons. The next Ningxia 95,000 tons, the Gansu 66,000 tons, the Qinghai 57,000 tons, in May the Shanxi Province output also have achieved 28,000. Although in May northwest host production area often spreads soon rises the electrical bill and limits power consumption the rumor the news, but is the rumor big raindrop is small, the domestic ferrosilicon market goes full speed ahead the production, the entire monthly output broke through 500,000 tons, but this year January to May, the domestic ferrosilicon market output is also month by month promotes, the market on-hand merchandise is more sufficient. It is estimated that in June the domestic ferrosilicon output still will maintain the relative top digit, but in July limited power consumption the policy along with some areas realization, the output will have the tendency which a small scale slid Chinese World Market Headlines on Foundry Materials Bauxite Resources Limited increases global bauxite resource to 24.8Mt in North Darling Range Alcoa, VSMPO-AVISMA to develop aluminum alloy products for commercial transport RUSAL drops plans for additional listing in North America Alcoa to produce nano-coatings in joint venture Govt rejects Balco's request to review coal production Swiss collected nearly 70,000 tonnes of aluminium in 2009 Price of brown fused alumina under high pressure Sluggish steel market effects magnesia market a little in China Bauxite suppliers lack confidence in the market Chinese domestic mid-grade magnesia market stable Fused magnesia smelters reduce monthly output a little in China Hainan zircon sand price stable Nickel sulphate price slides down Chinese titanium ilmenite market strong with higher price Bhutanese ferrosilicon market slow European ferrotitanium market in low buying activity Congo‟s Katanga Province begins promoting „conflict-free‟ minerals in U.S. Chinese ferrosilicon export market sluggish Casting aluminum alloy ingot market under pressure Niobium oxide price keeps firm Ningxia power supply to be rationed Tungsten concentrate price stable in Russia Chinese lead ingot market weakens further European APT price starts to soften Wanji Aluminum plans to build 400,000tpy of aluminum sheet and strip Aluminum ingot market quiet in China Dull nickel market with decreasing price 2.9 million tons of alumina capacity to come on stream in Southwest China Trading slows down in zinc alloy market Participants watch zinc ingot market Chrome ore market not suspending its downtrend Chinese imported manganese ore market keeps stable Cobalt chloride market in a stalemate Tin ingot prices to go down further Reductive calcium market continues to fall Manganese briquette market has not recovered Participants pessimistic about high-lateritic nickel ore market trend Chinese manganese price dips further Low-grade ferronickel trading warms up Lanthanum oxide market remains flat Europium oxide inquiry keeps increasing Demand for molybdenum products remaining weak in China Holimium oxide price soars further European ferrotungsten price keeps falling Yunnan high-grade silicon metal price firm Magnesium ingot output less for lack of hands Lithium hydroxide price stable in China Chinese silicon metal market goes down Selenium market still in thin trading Bismuth price still firm in China Magnesium ingot export market slack European stainless steel mills plan to cut production on surplus of output and down nickel prices Recently, the European stainless steel mills have planned to cut the production due to the surplus of output, down nickel prices and flat market. It‟s known that Spanish Acerinox has announced to cut the production capacity to 65%, Aperam has been reported to reduce the production by 7% in its plants in France . Industry sources predicted that the stainless steel prices would drop further as the European customer have taken wait and see attitude toward the market. Australian Macarthur Coal decreases PCI coal prices Australian Macarthur Coal decided to decrease the prices of pulverised coal injection (PCI) coal due to Japan ‟s poor demand. Macarthur Coal cut Q3 PCI coal prices to US$230/ton from previous US$275/ton. In addition, the company dropped the prices of hard coking coal to US$315/ton from previous US$330/ton. It‟s known that Australian coal mine was damaged by the severe floods and the prices had ever soared sharply in the beginning of this year. However, the coal prices have been down recently because of the recovery of the coal mines and Japan ‟s weak demand. Sesa Goa expects the global deficit in iron ore continuing Sesa Goa Ltd, with continued exploration, has seen its iron ore reserves expand by 53 million tonnes to a total of 306 million tonnes by end of fiscal 2011. Despite an adverse impact of the Karnataka ban and extended monsoons in Goa on its operations last fiscal, the company managed to nearly maintain production and sales volumes at par with the previous year. The company is optimistic on the near term demand prospects and the price of the commodity used in making steel. Like in India , major exporter Brazil also faced issues relating to environmental clearances and port logistics, thereby resulting in global supply side constraints in the sea-borne iron trade. Mr PK Mukherjee CEO and MD of Sesa Goa expects the global deficit in iron ore to continue for the next two years. He said that “We are optimistic that the strategic position of Sesa Goa with its low cost capabilities, easy accessibility to ports will hold us in good stead to mitigate any downside risk and exploit the upside opportunities.” Terming the slowdown in Chinese imports towards the latter half of 2010 as temporary aberration, Mr Mukherjee said the launch of growth initiatives beginning calendar 2011 has led to major growth in steel output, resulting in increased imports and prices. He said that “This phase of China 's steel led GDP growth, with a focus on social housing and infrastructure, especially railways, is expected to continue in the near future with high demand from construction industry. However, in the long run there will be some slowdown in Chinese steel sector as the country matures into being more consumer-driven economy.” Hero Honda becomes Hero MotoCorp Hero Honda Motors Ltd, the world's largest two wheeler company by volume, on Friday got shareholders' approval to change its corporate name to Hero MotoCorp Ltd. The shareholders' approval will now be forwarded to the Registrar of Companies for final changes. Japan 's Honda Motor is exiting Hero Honda Motors after a 27 year partnership with the Munjals' Hero Group. The joint venture was India 's largest motorcycle manufacturer with more than half the domestic market. The Munjals hold the right to use the Hero Honda name till 2014. The company, which has assigned London based brand specialist Wolff Olins to developed a new look for it, plans to export to Latin America, Africa, West Asia and Southeast Asia . The Hero Group for its part, hopes to explore new products and export opportunities now it has been released from a ban on exporting to markets where Honda has a presence The group has set aside INR 100 crore for a new brand identity, which includes a new name, logo and positioning. Kirloskar Brothers opens new facility in Coimbatore Pune based pump manufacturer Kirloskar Brothers Limited has opened a new plant at Coimbatore for manufacturing small pumps. Spread over six acres, the manufacturing facility is in Karumathampatti near Coimbatore . The plant has an installed capacity of 250,000 units of different models of domestic pumps in the first phase and 500,000 units in the second phase. According to Mr Ravi Murthy vice president and head distribution business sector, this plant will provide a big boost to their efforts in addressing the fast growing market for small pumps in the Southern parts of India. China to launch coal industry measures It is reported that China National Energy Authority is researching protective measures on rare coal resources such as coking coal. Experts say rare coal resources are different from rare earths, whose prices surged last year after China imposed dramatic restrictions on their export. Mr Li Ting analyst at the Distribution Productivity Promotion Center of China Commerce says the NEA is likely to cooperate with related authorities to tighten restrictions on exploration and mining rights. The NEA‟11th Five Year Plan referring to its activities between 2006 and 2010 and stated that the average extractions ratio in 2010 needed to hit 50%t. The comparable ratio in the US is 90%. Some industry experts believe China central government will attempt to integrate key enterprises or mining rights as it did with rare earths. Rare coal includes coking coal and high quality anthracite. Coking coals include rich coal and prime coking coal. Coking coal accounts for 25% of China total coal reserves while the proportion of combined prime and rich coal was less than 9%. The scarcity hits China hard as coking coals are widely used in the manufacture of steel. The China Securities Journal reported China is expected to exhaust its high quality coking coal within 50 years if extraction continues apace. Shandong-based Qilu Securities pointed out that China and India will replace Japan and Korean to become the largest importers of coking coal at some point in the future.