Articles in Category: Best of MetalMiner

Welcome to crazy MetalMiner’s low, low price week of falling metal prices, oil prices and devalued currency.


…maybe prices will be lower next week? Who can tell in this crazy market? Check out our Metal Price Outlook for MetalMiner’s expert opinion. Free sample in the link.

Bears Everywhere

Our August MMI Report shows that nine of the 10 metals we track have hit an all-time low since we started tracking them in January 2012. It’s been a gradual fall for sub-indexes such as raw steels and renewables, whereas aluminum and copper suffered big drops this month that coincided with historic London Metal Exchange lows.

Three Best Practices for Buying Commodities

The strong dollar continues to drag down all commodities, shunting investment dollars elsewhere and depressing prices of investment metals such as gold, which hit a six-year low last quarter, according to the World Gold Council. Guess what else hit a six-year low? Oil, of course! Read more


There’s no reprieve from the bearish metals environment in this month’s MMI Report.

More Analysis: The July Metal Price Forecast

With the exception of the very specialized grain-oriented electrical steel (GOES) market and the Renewables MMI®, all of our indexes lost ground in June and could not gain traction amid falling commodity prices and a strong US dollar.

The one index that was steady from last month, which tracks raw material inputs of the renewable energy sector, has been stagnant for two years and, until trends show otherwise, its steadiness is more a measure of a lack of market activity than anything close to a turnaround or a new trend toward increasing prices.

The Stainless MMI is flirting with two-year lows and our Raw Steels index is up against lows not seen in years as well. Weakness in the Chinese stock market has put additional pressure on metals that were already reeling from the effect of the strong dollar. This is bad news for steelmakers, miners, refiners and smelters by itself, but coupled with increased supply in most of the metals we track, it’s become a real deterrent to profitability.

Moreover, both Europe and the US have higher-than-normal inventories of semi-finished products at service centers. Mill lead times remain short suggesting weak demand. Weak demand will continue to place downward pressure on prices.


Screen Shot 2015-07-01 at 11.56.49 AMIt’s been a wild ride, but after three months of adding, subtracting, nip/tucking and perfecting, we are finally at the July metal buying outlook – the third and final complimentary MetalMiner™ Monthly Metal Buying Outlook – the only July metal price forecast and market commentary you will ever need.

Lisa Reisman, CEO, Azul Partners and executive editor, MetalMiner, is back with her tool kit and expert insight into the industrial metals aluminum, copper, nickel, lead, zinc, tin and steel (HRC, CRC, HDG, Plate) so you can formulate your short- and long-term buying strategy.

While this is the last complimentary Monthly Metal Buying Outlook, we are excited to announce the launch of the commercial product on Aug. 1.

Beginning in August, we will offer the Monthly Metal Buying Outlook for $899/year. That’s less than $75/month for 12 reports, or an annual subscription.

Check out the complimentary July report!

More About Lisa

A third-generation metals enthusiast, Lisa Reisman founded MetalMiner in 2007 – 13 years after she began trading semi-finished aluminum metals and 3 years after she was tasked by the CEO of a Tier 1 automotive company to save his company some money on their direct material spend. Lisa is an ex-big 5 consultant who built MetalMiner into the largest online publication for metal-buying organizations, and has the experience and depth of insight to produce this one-of-a-kind invaluable monthly report to impact your industrial metals purchasing strategy.

As we pointed out last month, the US dollar is showing some weakness for the first time in almost a year. That dollar weakness has helped metal prices during the second quarter. However, the recent price movements aren’t reason enough to suddenly become bearish in the dollar.

Why Manufacturers Need to Ditch Purchase Price Variance

The dollar increased in value very quickly in 2014, so it’s not weird to see the dollar taking a breath before it continues on its way up. Technically, this is called a “correction within an uptrend.”

The question now is whether the dollar has weakened enough already or if it’s due for further declines.

Dollar Index since 2014

US dollar Index since 2014. Source: MetalMiner.

The dollar index stopped declining last week as it approached a key support level. The dollar index has already retraced 38% of the steep move that started last summer. Read more


Yoders quickly took of this suit, donned a Hawaiian shirt and board shorts and booked the first flight to Puerta Vallarta after this picture was taken.

In February, we told you about Assistant Editor Jeff Yoders’ nominations in two categories for the 2015 Jesse H. Neal Awards from American Business Media.

A Building Design + Construction team series that included Jeff’s BIM coverage – “5 tech trends transforming BIM/VDC” – won the Neal Award for Best Subject-Related Package last week.

After being notified of his win last Friday, Yoders checked out a giant “win second Neal Award” box on a large t0-do list in the MetalMiner conference room and filed retirement papers with HR.

Jeff wrote two parts of the five-part series including an examination of how the Department of Energy overhauled its EnergyPlus building simulation program and another about tech trends that are transforming building information modeling and virtual design and construction.

“Back when I started writing about BIM and VDC in 2005, I vowed that I would not rest until we revolutionized the way construction projects are procured and delivered,” Yoders said. “Well, at long last, that day is here. Well, bye!”

FREE Download: The Monthly MMI® Report – covering the metals markets of the Construction sector.

Over his many years covering the design and construction industries, Jeff has documented how the inclusion of general and specialty contractors in the design phase of a project has resulted in fewer change orders and construction problems, how cloud computing is solving collaboration issues and how to save $18,000 on printing alone on a hospital project.

Read more

This week on the London Metal Exchange, the 3-month LME nickel price fell to its lowest level since 2009. It’s certainly not the first industrial metal to hit a 6-year low in this bearish year for base metals.

Free Download: Cut Your Nickel Shipping Costs

There has been a lot of talk recently about nickel’s supply side. Indonesian authorities have not changed their minds about refusing to export raw ore and the ensuing ban on exports of nickel ore to China continues. There is no flow of material between the two countries.

NPI Demand Drops

However, it’s important to remember that China’s nickel pig-iron producers had built up significant quantities of stocks prior to the January 2014 ban, compensating for the supply decrease. At 2 million metric tons, imports of Philippine ore this year are slightly higher than last year but are still nowhere near enough to offset the loss of Indonesian supply.

Chinese demand is weak and global demand, overall, is weak as well. Stainless demand is suffering from the same macroeconomic pressures as other industrial commodities. You don’t need to be an economist to see that. Just by looking at the performance of other base metals, it is clear that a bear looms.

Nickel making 6-year low (3m LME price since 2010)

Nickel’s 3-month LME price has hit a 6-year low. Source: MetalMiner/LME

Nickel is falling to new lows in heavy trading volume. Nickel’s LME fall also coincides with the launch, yesterday, of the Shanghai Futures Exchange nickel contract. Some analysts say the new contract prompted a surge in LME volumes.

Read more

This week we examined several metal/currency movements which were not what they’d outwardly appear to be.

Free Download: Cut Your Zinc Shipping Costs

Whether it’s the supposed zinc deficit, the seemingly sharp fall of the US dollar or the USA dropping to fourth in steel production, our reaction was largely “We know better than to panic about that.”

All the more reason for you to trust MetalMiner for all your metals’ sourcing needs. We won’t steer you wrong 😉


“I swear to God I’m in deficit. No, really!”

Honey, I Shrunk the Zinc Deficit

This week, my colleague Stuart Burns asked where that supposed zinc deficit is? As recently as January major bank HSBC was insisting that the zinc market was in deficit. Even The World Bureau of Metal Statistics said in their February report that the zinc market was in deficit by 262,000 metric tons during the January to December 2014 period, compared to a 95,000-mt surplus for 2013.

Yeah, not so much.

Read more

Welcome to MetalCrawler, your daily fix for industrial metal news, price movement updates and complaints about the design of new buildings. Larry Summers doesn’t like the amount of infrastructure investment and U.S. Steel just learned everyone at the planning commission is a critic.

Wait, That’s All There is?

United States Steel New HQ

Rendering courtesy of Clayco.

Pittsburgh’s planning commission got its first glimpse Tuesday of the proposed U.S. Steel headquarters to be built in the city’s Hill District and they were not big fans. Chairwoman Christine Mondor told the Pittsburgh Post-Gazette, “I’m just concerned that it looks like it could be anywhere,” she said of the new building. “It looks like it could be a suburban office building somewhere.”

Free Download: Lock in International Shipping Costs

The L-shaped headquarter will prominently use steel and glass, two of the products that have figured prominently in the city’s history, according to developer Clayco. Everyone’s a critic these days.

Summers: Net-Zero Infrastructure Investment in the Western World

Former Treasury Secretary Lawrence Summers said in a speech at Princeton that investment by major industrialized US and European nations  in infrastructure is not expanding.

“At this moment . . . the share of public investment in GDP, adjusting for depreciation, so that’s net share, is zero. Zero,” Summers said. “We’re not net investing at all, nor is Western Europe. In other words, total federal, state, and local government investment is enough to cover only the amount of wear and tear on bridges, roads, airports, rails, and pipes. Can that possibly make sense?”

MetalCrawler crawls the web for the latest metal news so you don’t have to. We even get that hard to reach metal news from China. Today there’s also more on the Gold Apple Watch and Chile’s copper mining industry.

Free Download: Learn How to Lock in Shipping Costs on Your International Trades

UBS Says Chinese Steel Won’t Grow

  • Switzerland’s UBS said in a note  that the bank expects 0% compound annual growth for China’s steel production over the next five years, down from a previous forecast of 1.4%, according to the Financial Times. UBS cut its 2015 forecast for steel’s main ingredient iron ore, already down from $70 a ton to $58 this year, to $59 a ton. UBS said “Iron ore mining companies still forecast China’s steel output to grow at 2.5% Compounded Annual Growth Rate until 2025, but we disagree. Our analysis shows that its steel production has already reached a turning point.”

Better Have Strong Wrists

  • Stephen Pulvirent of Bloomberg News writes that there are many problems with Apple Inc.‘s $10,000 gold version of the Apple Watch, unveiled yesterday. For starters, If you set it’s patented gold-alloy case aside, it has the same sapphire glass display, sensors, and electronics as the $549 Apple Watch. So you’re paying a mark-up of 18 times the lower price for the same thing. Most luxury watches have higher quality parts as well as cases. It’s also “so heavy it feels like a brick.”

Protests Slow Output at Chilean Copper Mine

  • Output at the Pelambres mine of Chilean copper miner Antofagasta Plc. has been cut by about 5,000 tons in the past week due to protests by local villagers who have blocked access to the mining complex, Pelambres said on Sunday. The company told Yahoo Finance UK that a small number of demonstrators from the Choapa Valley, where some local communities blame the mine for water shortages, had hampered normal operations but had not forced a shutdown of the mine.


The new year in metals has already been marked by steep dives in commodity prices, and major changes in the status quo, so why should week three be any different?

Don’t miss this free download of our Monthly MMI® Report, covering price trends in 10 metals markets.

But this week’s story wasn’t about falling commodity prices or the price of oil and how it’s dragging its commodity brethren down. It was, instead, the week of central banking reaction and currency coming back to the fore. Sit back for MetalMiner‘s money market manipulation maelstrom.

Kneel Before the US Dollar!

Lead Forecasting Analyst Raul De Frutos wrote about how the dollar is going nowhere but up and the dollar index just hit an amazing 11-year high this week. Commodities, in turn, hit their lowest levels since 2009, but that’s old news by now. The bigger takeaway was that foreign currencies are now depreciating heavily against the strong dollar.

US Dollar Index since 2000

US Dollar Index since 2000. Source: MetalMiner.

How governments react to their falling currencies could cause major shifts in commodity prices. So, how ARE those governments and central banks responding?

Read more