China's Q4 copper TC/RC floor set at $90 per tonne/9 cents per lb – sources

Date Sep 25 2018 15:09:56 Source:Foreign media

China's top copper smelters have set their floor treatment and refining charges (TC/RCs) for the fourth quarter at $90 per tonne and 9 cents per pound, respectively, two sources with direct knowledge of the matter said on Tuesday.


    The floor charges, the minimum fees miners should pay Chinese smelters to process their copper concentrate into refined metal, were agreed at a meeting of the China Smelters

Purchase Team on Friday. The group had set no floor for the third quarter.

Rare earth miner Lynas to face review in Malaysia – media

Date Sep 25 2018 15:08:42 Source:Foreign media

Australia-listed rare earths miner Lynas Corp Ltd LYC.AX said on Monday that reports an opponent of its refinery in Malaysia will head a government review of the plant "raise concerns", as its shares lost nearly a quarter of their value.


Lynas is the only major miner outside China of the metallic elements, crucial in the production of magnets. It mines raw material in Western Australia which is sent to a plant in Malaysia for processing.


Malaysia's government, elected in an unexpected landslide in May, had previously flagged a review of concerns surrounding the refinery, which activists say is envionmentally hazardous.


On Friday the Star newspaper, citing a ministerial letter of appointment, reported that Fuziah Salleh, a government politician and a long-time critic of the plant, will chair a committee reviewing the plant. She will lead it for three months, beginning Monday, the newspaper said. 


Fuziah had no immediate response.


Lynas Corp said on Monday its operations had already been extensively scrutinised and that it will advocate for a "transparent, impartial and scientific" review.


"The media has speculated that the chair of the proposed committee may be a long time anti-Lynas campaigner. If that appointment is confirmed, then that will raise concerns," the company said in a statement, without specifying what they were.


Lynas shares fell 23 percent to A$1.61, their lowest since last September, in a slightly weaker broader market .AXJO.


The strategic significance of rare earth metals was highlighted last week when the United States excluded them from a round of import tariffs.      


Lynas' main products, neodymium and praseodymium, are used in magnets for motors that drive automated seats and windows in cars, motors for hybrid vehicles and as magnets in electronic products, like DVDs and hard disk drives.


    Its $800 million plant, which produces low-level radioactive waste, began operations in 2012 after long delays caused by legal challenges and environmental disputes.

Chinese steel, iron ore futures sag as U.S.-China trade war rages

Date Sep 25 2018 15:03:19 Source:Foreign media

Chinese steel and iron ore futures dropped on Tuesday as investors cut positions after returning from a holiday weekend with the United States and China locked in an intensifying trade war.


Washington and Beijing imposed fresh tariffs on each other's goods on Monday as the world's biggest economies showed no signs of backing down from an increasingly bitter trade dispute that is expected to hit global economic growth. 


The most actively traded January rebar on the Shanghai Futures Exchange SRBcv1 was down 0.9 percent at 4,101 yuan ($598) a tonne by 0145 GMT.


January iron ore on the Dalian Commodity Exchange DCIOcv1 dropped 1.1 percent to 496.50 yuan per tonne.


Chinese markets were shut on Monday for a public holiday.


China has said it was willing to restart trade negotiations with the United States only if the talks are "based on mutual respect and equality," the official Xinhua news agency said, citing a white paper on the bilateral trade dispute published by China's State Council. 


"The sharp criticism suggests that China might prefer to wait out the current U.S. administration, rather than embarking on potentially futile negotiations," Mizuho Bank said in a note to clients.


"Given these developments, it is increasingly likely that both sides will not resume negotiations for some time, at least until there is a noticeable shift in the political mood on either side."


Liu Zhenjiang, president of the China Iron and Steel Association, said last week he expects China's steel demand to remain firm, supported by infrastructure demand, despite the escalating Sino-U.S. trade dispute, adding that any efforts by Washington to "sabotage" the Chinese economy will not succeed.


China's upcoming industrial production curbs on its northern region for the second winter in a row are also expected to keep steel supply tight and support prices, traders said.


    Coking coal futures DJMcv1 rose 0.9 percent to 1,291 yuan a tonne and coke DCJcv1 gained 0.8 percent to 2,367 yuan.

Hindalco Invests $480mln to Build New Aluminum Recycling and Extrusion Plants

Date Sep 25 2018 09:58:15 Source:Scrap Monster

Hindalco Industries Ltd., a subsidiary of the Aditya Birla Group announced huge investment in India. The company will invest nearly $480 million in the Western Indian state of Gujarat in setting up most modern aluminum extrusion and aluminum recycling, featuring state-of-the-art technologies.


According to sources, Hindalco Industries signed a memorandum of understanding with the state government of Gujarat towards setting up of the facilities. The contract was signed last Friday by Manoj Kumar Das, Principal Secretary for Industries, Government of Gujarat and Satish Pai, Managing Director, Hindalco Industries on a ceremony attended by Gujarat Chief Minister Vijay Rupani among other dignitaries.


The proposed facilities will be built in Kutch district in Gujarat. The aluminum extrusion plant will be constructed at an investment of nearly $275 million. The plant, with an annual capacity of 150,000 tonnes, will be constructed in two phases. Meantime, the aluminum recycling plant will have a processing capacity of around 300,000 tonnes per annum. The company plans to set up a desalination plant in public-private partnership mode in order to meet the huge water requirements of the proposed plants. Together, the two plants are expected to generate around 3,000 job opportunities.


Hindalco already has three extrusion plants in the country-two in Uttar Pradesh and one in Kerala.

ICSG Publishes Copper Data for First Half of 2018

Date Sep 25 2018 09:57:12 Source:Scrap Monster

The September 2018 Copper Bulletin published by the International Copper Study Group (ICSG) provides preliminary copper supply and demand data for the initial six months of 2018.


The world copper mine production surged higher by 5% in H1 2018, registering a rise of around 485,000t. The Chilean production reported significant growth by 12%. Also, Indonesian output skyrocketed by 40% over the previous year. The rise in output in these regions were partially offset by lower mine production from Canada and the U.S., which reported 7% and 8% decline in year-on-year output in Jan-June ’18. The concentrate output was up by 5%, whereas the SX-EW production reported 6% jump over the previous year.


The world copper refined production increased 2% in H1 2018. The primary production increased marginally by 0.3%, whereas the copper production from scrap was notably higher by 9%. China was the major contributor to the world refined production growth. The production in Chile was up by 6.5%. Indonesia and Japan too reported higher production levels. On the contrary, production declines were reported in India, Poland and the U.S.


During the first half of 2018, the world apparent copper usage increased by around 1%. The Chinese apparent demand surged higher by 4%, whereas the ex-China usage declined by 1.5%. The demand increased in India and the EU, dropped in the U.S. and remained more or less flat in Japan.