Mar
12
China Dongling to reopen lead/zinc plant this month.
March 12, 2010 | Leave a Comment
HONG KONG, March 12 - China’s Dongling Group is preparing to restart a 100,000-tonne-a-year lead and zinc smelter this month shut since August last year following accusations by locals that it was a source of lead poisoning.
‘Yes we are working on it. But (we) don’t know exactly which day it will be reopened,’ a senior executive told Reuters when asked whether the company planned to restart the smelter this month.
The lead and zinc smelter in Changqing in Fengxiang county, close to Baoji city in Shaanxi province, has about 33,000 tonnes of annual lead capacity and 66,000 tonnes of zinc capacity.
The smelter was closed by authorities in August last year after hundreds of villagers broke into the plant to protest the alleged lead poisoning. In response, the local government later relocated villagers that lived near the smelter.
He said production at another plant owned by the company, the fourth biggest zinc maker in China, of 150,000 tonnes capacity a year remained normal.
The incident in Fengxiang county also caused authorities to tighten controls and checks on lead smelters nationwide and close three smelting facilities in Jiyuan city in neighbouring Henan province, the top producing area in China, which is the world’s top maker of metal widely used in batteries.
Dongling’s smelter was scheduled to reopen on March 15, Hong Kong-based English-language newspaper South China Morning Post reported over the weekend quoting a local villager Ma Changxiong.
JIYUAN, HENAN
But three smelters in Jiyuan in neighbouring Henan province have remained closed and the city government has not given a timeframe to restart the capacity, a smelter source in the city said.
‘The thing is not over yet. The city government is cautious about letting the shut capacity reopen,’ the source said, who asked not to be named.
China’s top lead producer, Yuguang Gold and Lead, as well as Wanyang Lead and Jinli Lead in Jiyuan have each closed a 50,000-tonne-a-year designed sintering and smelting capacity since Aug. 24. The facilities ran above capacity and produced nearly 240,000 tonnes a year before the closures.
Yuguang may give up the shut capacity in Jiyuan permanently to avoid further accusations, the smelting source said.
But that would not affect the lead producer much because it planned to start production at a new, environmental-friendly 100,000 tonne-a-year lead plant next month, the source added.
The new plant would boost Yuguang’s annual lead smelting capacity to about 330,000 tonnes, excluding the shut 50,000 tonne of capacity, and to 400,000 tonnes of lead refining capacity.
Yuguang is also a zinc producer and plans to start building a third 100,000-tonne-capacity unit by late 2010, boosting the company’s annual zinc capacity to 300,000 tonnes, the source said.
Mar
12
LME Copper Inventory 12 Mar 2010
March 12, 2010 | Leave a Comment
LME Inventories Update:
Copper -3075
Lead -75
Zinc -500
Nickel -444
Alu -4400
Tin -25.
Mar
11
LME Copper Inventory 11 Mar 2010
March 11, 2010 | Leave a Comment
LME Inventories Update:
Copper -2525
Lead -250
Zinc -50
Nickel -318
Alu -4625
Tin +5.
Mar
11
China’s Copper Imports Advance 10% in February..
March 11, 2010 | Leave a Comment
Copper imports by China, the world’s largest consumer of the metal, increased 10 percent in February from the previous month on firm demand.
Imports of copper and products were 322,282 metric tons last month, the Beijing-based customs office said today. Still, that’s 2 percent less than the same time a year ago, according to data compiled by Bloomberg.
Copper in London has gained 15 percent in the past month as higher Chinese domestic prices have buoyed imports. China bought a record amount of copper last year as government stockpiling and the country’s $586 billion stimulus package boosted demand for the metal used in automobiles and construction.
“I am not surprised at this figure as the price difference between London and Shanghai still favors imports,” said Cai Luoyi, a Shanghai-based analyst at China International Futures (Shanghai) Co. “Even though we see rising stockpiles, no matter whether visible or invisible, so long as China continues to import, that will be positive for global prices.”
Still, China’s imports of copper are expected to halve to 1.5 million to 1.6 million tons this year from the record in 2009, Xi’an Maike Metal International Group and China Minmetals Nonferrous Metals Co. have said.
China imported 280,000 tons of scrap copper in February, customs said today, compared with 340,000 tons in January. Imports of aluminum and the metal’s products were 64,356 tons last month, compared with 97,633 tons a month ago.
Copper on the London Metal Exchange rose 0.4 percent to $7,540 a metric ton. June-delivery copper added 0.3 percent to trade at 60,430 yuan ($8,853) a ton on the Shanghai Futures Exchange by the 11:30 a.m. break.
Mar
11
Gold prices are modestly higher in early trading Wednesday, on some short covering and a corrective bounce from losses absorbed earlier this week. A steady U.S. dollar versus the other major currencies and firmer U.S. stock index futures prices are adding to buying interest in the precious metals early Wednesday. April Comex gold was last traded up $4.50 an ounce, at $1,126.80.
Spot gold in Europe was firmer Wednesday on higher equity markets and a slightly higher Euro currency. Traders in Europe continue to exhibit buying interest in gold as a hedge against the euro currency, amid the European Union economic and financial problems.
Traders are still digesting the news reports Tuesday that quoted China’s currency regulator as saying his nation would not likely be making further purchases of gold to add to China’s existing gold reserves. The Wall Street Journal on Wednesday featured a story titled, “Gold Doesn’t Shine for China.”
Look for the precious metals traders to continue to closely track the currency and stock markets for their own price direction. More risk appetite among world investors will support the metals, while any fresh, unexpected fundamental news that incites keen investor uncertainty is likely to limit buying interest in the metals.
In overnight trading, the London A.M. gold fix was $1,124.50 versus the previous afternoon fixing of $1,115.75. The London silver fixing was $17.47 an ounce, versus $17.05 the previous trading session.
Technically, April Comex gold remains in a five-week-old price uptrend on the daily bar chart. The triple moving averages overlaid on the daily bar chart (4-, 9- and 18-day) are in a mostly bullish posture for April gold. While the 9-day is above the 18-day moving average, the 4-day moving average has moved below the 9-day. This suggests near-term trading has become choppy but that the overall path of least resistance for April gold remains sideways to higher. One early clue that the near-term price uptrend in April gold is ending would be if the 9-day crossed below the 18-day moving average. For April gold, shorter-term technical resistance is seen at the overnight high of $1,128.30 and then at $1,130.00. Buy stops likely reside just above those levels. Sell stops likely reside just below shorter-term support at the overnight low of $1,120.90 and then at $1,105.00. Today’s key near-term Fibonacci pivot level for April gold: $1,117.00.
Comex silver futures are higher in early trading Tuesday. May silver last traded up 11.2 cents an ounce at $17.42. Prices remain in a five-week-old uptrend on the daily chart. Bulls maintain the near-term technical advantage in silver, as prices hover near six-week highs. May silver finds shorter-term technical resistance at this week’s high of $17.53 an ounce, and then at $17.75. Buy stops likely reside just above those levels. Shorter-term technical support for May silver is located at the overnight low of $17.235 and then at $17.00. Sell stops are likely placed just below those levels. Today’s key Fibonacci pivot level for May silver futures is located at $17.08.
Mar
11
China’s Iron Ore Appetite Remains Voracious..
March 11, 2010 | Leave a Comment
Toronto—China has changed the playing field in the iron ore sector, sucking in seaborne supplies like a giant vacuum to fuel an economy that will produce more steel in the 15 years from the turn of the century than was manufactured by the entire world from 1860 to 2000, according to an executive of a London-based consultancy.
China’s frenzy for iron ore to forge the steel is driven by the exodus of its citizens from the countryside to the cities in search of a better life and the populace’s growing expectation of consumer goods in a western style, according to Phil Newman, chief operating officer of CRU Strategies. CRU is an independent business analysis and consultancy group focused on the mining, metals, power, cables, fertilizer and chemical sectors.
In an interview with Kitco News on the sidelines of PDAC2010 here, Newman said China’s obsession with gobbling up seaborne iron ore from Australia and Brazil and other producers stems from the changing social patterns. Iron ore is needed to make steel for automobiles, for housing and commercial structures, and for highways, bridges and railroads, he said. Although China is the world’s largest iron ore producer, the grade is low, necessitating the imports.
To illustrate the scale of China’s appetite, Newman said that from the origins of modern steel production in 1860 to 2000, the output grew from zero to 665 million tonnes annually. In the 15 years from 2000 up to 2015, China will repeat that, he said. “In 15 years they are going to increase their steel production by the amount the whole world has done in the previous 140.”
Although China’s iron ore needs have been increasing the past 10 years, the growth has been more evident as the recession in the U.S and other western countries lowered prices and caused many Chinese mines to halt or lower production. Newman said during 2008 the Chinese were looking everywhere for iron ore and continued to do so in 2009.
As for the outlook for the next few years, Newman said one good measure is the steel consumption per capita. “That per capita consumption has risen in China and has risen fast,” he said. In 2007 it was about 300 kilograms per person, increasing to 470 kilograms per person in 2009. The figure should flatten to about 550 kilograms during the next three to four years, he said, as urbanization slows and the economy becomes more service-oriented. “There’s quite a lot of steel yet to come on,” he said.
China’s economic growth has been phenomenal during the last decade, raising fears that there could be a bursting bubble on the horizon. Newman said the developed world countries probably have underestimated the ability of the Chinese government to manage their own economy,
“I think we have to rely on the Chinese government to keep things moving along,” he said, emphasizing that the officials have been astute at speeding up when necessary and slowing down when things get too fast. They have done a good job of keeping GDP growth between 8 and 9 percent, he said.
Even though China remains a totalitarian government, their leaders will keep their ear to the ground, according to Newman. “The Chinese have seen what others in the world have and the y want it and they want it now,” he said. “The government knows that if things do go wrong, the Chinese people will tell them they are not happy.”
China has, however, become such an economic presence in the world that concerns over their future growth are warranted.
“We don’t want their economy to overheat,” he said. “If those guys have a financial crisis anywhere near like the one we’ve had … it will make what we’ve been through the last 18 months look like a tea party.”
Mar
11
METALS-Copper falls on China output data..
March 11, 2010 | Leave a Comment
* LME copper turns lower, ShFE falls 1.5 pct on China
output
* China may be less dependent on LME supply; still big
buyer
* Tightening worries but analysts doubt will dent metals
much
* Coming up: Weekly US jobless claims and international
trade
SINGAPORE, March 11 - Copper prices fell on
Thursday after production data suggested the world’s biggest
buyer may be less dependant on the international market for
supply.
Chinese output data on Thursday, a day after very strong
import numbers, showed domestic copper production rising 16.2
percent in the first two months of the year, to 702,000 tonnes.
Aluminium output in February alone jumped almost 50 percent
from a year ago to 1.308 million tonnes or 46,714 tonnes per
day. Output in January was 1.262 million tonnes or 40,710 on a
daily basis.
For graphics showing Chinese copper and aluminium output,
click:
here
here
“This is confirmation capacity is coming back on line in
response to the perception of stable, higher prices,” Ben
Westmore, commodities economist at National Australia Bank
said.
“Greater domestic production means China is less reliant on
imports. The market can over react to this kind of news, but if
you look beyond the next week, China will remain a strong
source of demand for metals so I am still reasonably bullish.”
London Metal Exchange prices fell when the data was
released, turning a $10 rally into a $30 loss.
Three-month copper on the London Metal Exchange CMCU3
fell $29 to $7,411 a tonne by 0316 GMT. Before the data copper
traded around $7,450 and had touched $7,464 earlier int eh day.
Benchmark third-month Shanghai copper SCFc3 fell 1.5
percent to 59,490 yuan.
But analysts said the outlook remained bright for base
metals.
Westmore said copper prices would average $7,500 in the
last quarter of the year versus $7.120 so far in this quarter.
Tuesday’s trade numbers showed strong Chinese imports of
industrial metals and boosted confidence in the demand outlook.
Yingxi Yu, analyst at Barclays Capital said: “The Chinese
trade data was very constructive, not just for copper but for
iron ore, oil and coal and it shows that despite the concerns
about China’s macro tightening, demand is still strong.”
For the full story on trade and output,
Yu added: “There is some scepticism about OECD demand but
LME inventories have shown broad-based falls and are perhaps
offering an early sign the market is improving on a fundamental
basis.”
LME copper stocks have fallen for the past six session
equalling a run of drawdowns last July. But traders worry that
the limited arbitrage opportunities since the Chilean
earthquake and a decline in the cancelled warrant ratio may
mean a halt to the trend.
For a graphic on the arbitrage, click:
here
Aluminium CMAL3 fell $12 to $2,220.
MAB’s Westmore said: “The market is wary of the big LME
stocks and the perception is the fundamentals are weak compared
to other metals. China imports have fallen after last years
spikes.
“There is room for some short-term moderation. Remember
prices haven’t done much in the past few weeks and I think
there is a feeling to wait and see what policy tightening will
have on demand.”
Chinese consumer inflation rose more than expected in the
year to February, while retail sales data for the first two
months showed the economy started 2010 with a strong head of
steam.
Coming a day after the surprisingly strong export and
import data, the figures could reinforce the case for further
monetary tightening even as central bank data showed the pace
of credit growth halved in February.
For a graphic on inflation:
here
Base metals prices at 0316 GMT
Metal Last Change Pct Move End 2009 YTD pct
chg
LME Cu 7411.00 -29.00 -0.39 7375.00
0.49
SHFE Cu* 59490.00 -910.00 -1.51 59900.00
-0.68
LME Alum 2220.00 -12.00 -0.54 2230.00
-0.45
SHFE Alum* 16745.00 -155.00 -0.92 17160.00
-2.42
COMEX Cu** 335.00 -0.50 -0.15 332.75
0.68
LME Zinc 2331.00 -45.00 -1.89 2560.00
-8.95
SHFE Zinc 18680.00 -495.00 -2.58 21195.00
-11.87
LME Nickel 21350.00 -170.00 -0.79 18525.00
15.25
LME Lead 2260.00 -29.00 -1.27 2432.00
-7.07
LME Tin 0.00 -17750.00 -100.00 16950.00
-100.00
LME/Shanghai arb^ -306
Dollar/yuan 6.8256 \ 6.8266
** 1st contract month for COMEX copper
* 3rd contact month for SHFE aluminium, copper and zinc
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE
third month
Mar
11
China Feb copper up 4.1 pct after Jan fall..
March 11, 2010 | Leave a Comment
HONG KONG, March 11 – China’s monthly production of refined copper and primary aluminium in February rose 4.1 percent and 3.6 percent respectively, after falling in the previous month because of repairs to smelters. But production of refined lead, zinc, nickel and tin, extended January’s falls last month following the reduction of concentrate supplies from domestic mines in the winter.
China, the world’s top consumer of most base metals and the biggest producer of aluminium, lead, zinc and tin, produced 358,000 tonnes of refined copper in February, up 4.1 percent from 344,000 tonnes in January, data released by the National Bureau of Statistics showed on Thursday. The bureau did not release the January data in February and published figures for the two months on Thursday.
January’s copper output was down 17.6 percent from December 2009 and 14.9 percent off the all-time record in November. “Smelters’ repairs and the Lunar New Year holiday caused lower production in January and February,” said Yang Changhua, copper analyst at state-backed research group Antaike.
Smelters’ operations had slowed around the holiday because some workers were away. But February output was lower than Antaike’s estimate of 370,000-380,000 tonnes, Yang said.
“Output in March should resume to 380,000-390,000 tonnes,” Yang added. China produced 1.31 million tonnes of primary aluminium in February versus 1.26 million in January, which was 7.8 percent less than December’s all-time record of 1.37 million tonnes.
Refined zinc output fell 3.5 percent on the month to 363,000 tonnes in February from January’s 376,000 tonnes, which was 18.6 percent off December’s all-time record of 461,700 tonnes. (Editing by Clarence Fernandez) 2010-03-11 05:51:47
Mar
11
Prices of gold, copper rise..
March 11, 2010 | Leave a Comment
LONDON: The prices of gold and copper rose on Wednesday in the London Bullion Market and London Metal Exchange, respectively. The price of gold rose to $1,125 an ounce from $1,115.75 an ounce on Tuesday. Meanwhile, copper rose as data showing strong Chinese imports of the industrial metal boosted confidence in demand from the world’s top consumer. Benchmark copper on the London Metal Exchange traded at $7,572 a tonne at 1606 GMT from $7,510 at Tuesday’s close. The metal used in power and construction was sold briefly after the US open as traders in the world’s largest economy noted economic deterioration in Germany and Britain. However, market focus quickly returned to China’s imports of unwrought copper, which outstripped forecasts by rising 10.3 percent to 322,282 tonnes. “The fact that imports were up month on month does suggest growth is continuing to be good, drawing in more raw material,” said Robin Bhar, analyst at Credit Agricole.
Mar
11
Improving productivity and reducing costs at Vale Inco’s Voisey Bay operation.
March 11, 2010 | Leave a Comment
ABB has won a renewal from Vale Inco Newfoundland & Labrador for all maintenance-related activities covering plant production equipment at its Voisey’s Bay facility in Canada. The aim is to improve productivity and reduce costs. Since the agreement commenced, it has helped Vale Inco achieve the fastest ramp-up of all the company’s greenfield sites in 2005; attain all-time production levels in 2006; achieve 1,000 days with no lost time due to injury in 2007; and reach the highest tonnes-per-day production in 2008.
ABB will continue its partnership with Iskueteu, an aboriginal company providing operations support, to fulfil the agreement. “ABB Full Service agreements help turn maintenance departments into profit centres,” said Magnus Pousette, head of ABB Reliability Services North America. “By bringing proven best reliability practices to our customers, we add new value to their bottom line while they focus on their core business.”
Vale Inco, a wholly-owned subsidiary of Vale of Brazil, is a leading producer of nickel, copper, cobalt and precious metals, based in Toronto, Canada. With over 100,000 employees worldwide, Vale is the second largest mining company in the world, with a market capitalisation of more than $125 billion.