Industry News

This morning in metals news: tin prices have surged; Norsk Hydro announced the end of a previously announced battery initiative; and, lastly, Cleveland-Cliffs is buying a ferrous scrap processor.

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Tin prices gain

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As we noted earlier this week, news that Indonesia is considering a tin export ban is offering some support to tin prices.

LME three-month tin reached $39,250 per metric ton this week, up 7.2% month over month, according to MetalMiner Insights data.

Meanwhile, from a technical perspective, LME tin trading volumes reached a November peak of 7,138 on Nov. 16. Volumes fell as low as 2,538 later in the month before bouncing back up.

Subscribers can find more tin insights in this month’s Monthly Metal Outlook report.

Norsk Hydro announces end to battery initiative

Earlier this year, Norsk Hydro announced plans to extend its joint battery initiative with Panasonic and energy firm Equinor.

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Novolipetsk Iron & Steel (NLMK) is undertaking at its main production site in Russia upgrade work on one of the slab reheating furnaces, which will see hot rolling Mill 2000’s capacity rise by 7%, the steelmaking group said.

The planned work will push Mill 2000’s annual rolling capacity up by about to approximately 6.23 million metric tons, NLMK indicated.

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The mill’s current rolling capacity is now 5.8 million tons, group spokeswoman Marina Simonova told MetalMiner.

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NLMK upgrade work

Upgrade work on the reheating furnace includes installation of equipment that can automatically adjust the temperature, depending on the grade of steel that Mill 2000 rolls. The work will also lower carbon emissions from the furnace by 53,000 metric tons, the group said.

Work on the reheating furnace will also result in a 23% increase in its own annual throughput capacity to 2.25 million metric tons per year, from 1.83 million metric tons, group figures indicated.

NLMK plans to complete work on and restart the furnace in Q2 2023. Estimated cost of the project is ₽5 billion ($67.8 million), the group also said.

The work, however, will not impact Mill 2000’s operations, as there are four additional furnaces that have already undergone overhauls.

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This morning in metals news: OPEC held its 23rd ministerial meeting today amid falling oil prices; meanwhile, the United States International Trade Commission issued a ruling on import relief for the domestic crystalline silicon photovoltaic cell sector; and, lastly, the trade ministers of the U.S., Japan and the E.U. convened this week.

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OPEC meets as oil prices retreat

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Rising oil prices have been yet another strain on consumers, whether commercial users or everyday motorists at the pump. Oil prices are also a key factor in MetalMiner’s commodity trends analysis.

In the U.S., pre-Thanksgiving gasoline prices reached their highest level this year since 2012.

However, oil prices this past week have lost ground quickly. The WTI crude price, for example, closed Wednesday at $65.57 per barrel, down $12.82 per barrel from the previous week, the Energy Information Administration reported.

OPEC, meanwhile, convened via videoconference today for its 23rd ministerial meeting, during which it agreed to maintain previously agreed output schedules. The group agreed to “reconfirm the production adjustment plan and the monthly production adjustment mechanism approved at the 19th ONOMM and the decision to adjust upward the monthly overall production by 0.4 mb/d for the month of January 2022, as per the attached schedule.”

USITC votes on import relief for PV cell makers

United States International Trade Commission (USITC) voted to keep import relief measures in place for domestic producers of crystalline silicon photovoltaic cells.

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Chilean copper producer Codelco, the world’s largest, indicated it could see copper prices coming down in 2022.

According to a Reuters report, Codelco CEO Octavio Araneda said prices in 2022 will likely come in slightly lower than in 2021.

As we’ve noted recently, MetalMiner is hosting its final webinar of the year on Wednesday, Dec. 8, during which the MetalMiner team will overview price predictions for metals in 2022. Those interested in participating in the session can sign up on the MetalMiner Events page.

Copper prices stabilize

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Like aluminum, LME copper prices on the LME surged to $10,270 per metric ton in late October, according to MetalMiner Insights data.

The price fell back to close the month, however, closing October at $9,490 per metric ton.

Since then, the copper price has trended sideways.

From a technical perspective, LME copper trading volumes reached a November high of 145,635 as of Nov. 2. Volumes fell as low as 69,991 on Nov. 25, during which prices surged briefly and approached MetalMiner resistance levels.

However, the stronger the trading volume, the greater the significance of a corresponding price movement (and vice versa). As such, after jumping to just under $9,900 per metric ton Nov. 25, the price retreated.

LME three-month copper closed the month at $9,510 per metric ton.

Political crossroads

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This morning in metals news: the U.S. steel capacity utilization rate fell to 83.2% last week; North American Stainless maintained its stainless steel fuel surcharge; and, lastly, crude oil prices have lost steam this week.

Each month, MetalMiner hosts a webinar on a specific metals topic. The MetalMiner team will discuss price predictions for 2022 during its final webinar of the year, scheduled for Wednesday, Dec. 8. 

US steel capacity utilization rate hits 83.2%

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The U.S. steel capacity utilization rate fell to 83.2% for the week ending Nov. 27, down from 84.3% the previous week, the American Iron and Steel Institute reported.

Steel output last week totaled 1.84 million net tons. The total marked a 1.3% decline from the previous week but a 13.3% year-over-year gain.

For the year to date, production reached 86.3 million net tons, or up 19.7% year over year.

U.S. steel prices have finally started to soften. U.S. HRC closed last week at $1,793 per short ton, according to MetalMiner Insights data, or down 5.6% month over month. Meanwhile, U.S. CRC closed at $2,111, down 0.3% month over month.

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Two years ago, Indonesia instituted a ban on nickel ore exports.

Now, it is contemplating banning exports of tin and copper ore, too.

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Indonesia export bans prompt tin price surge

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Indonesian President Joko Widodo has been announcing from different forums that his country may stop the export of bauxite next year, copper ore in 2023 and tin in 2024.

On the heels of the announcements, the tin price has surged, MetalMiner Insights data shows. (Subscribers can find additional tin and copper analysis in the next Monthly Metal Outlook report, which will be released Wednesday, Dec. 1.)

The LME three-month tin price closed Monday at $39,450 per metric ton. The price is up 6.6% month over month.

For long, Indonesia has been a major exporter of metal ores, mostly to Asian countries, including China and Japan. The ban on nickel exports had triggered investments, mostly from China, into Indonesian nickel processing.

As part of efforts to improve the country’s external balance & attract investments into the resource processing industry, Indonesia may stop tin exports in 2024, the Indonesian President reiterated last week at the Indonesian central bank’s annual gathering.

The president has made similar statements in recent public appearances about the country’s long-term dependence on raw commodities, reducing its export earnings and employment opportunities.

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This morning in metals news: General Motors announced it had purchased a stake in Pure Watercraft, a firm specializing in “all-electric boating solutions”; aluminum prices ticked up ahead of Thanksgiving; and, lastly, Thyssenkrupp commissioned its 35th EnviNOx^® system, which reduces nitrous oxide emissions.

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GM buys stake in electric watercraft firm

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When it comes to the automotive space and electrification, we typically focus on EVs that operate on land.

However, automaker General Motors recently announced it had purchased a stake in Pure Watercraft, which produces all-electric boating solutions. GM purchased a 25% stake in the Seattle-based firm.

“The collaboration between GM and Pure Watercraft advances a shared vision to promote sustainability through an expansion of zero-emissions mobility for future generations and reflects the holistic approach necessary for widespread EV adoption,” GM said.

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While you may be busy putting the finishing touches on your Thanksgiving spread and, subsequently, taking a turkey-induced nap, you might find some time to revisit this week’s coverage, including oil prices, global crude steel production and much more.

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But first, in case you missed it, MetalMiner is hosting its final monthly webinar of the year at 10:00 a.m. CDT, Wednesday, Dec. 8. Metal buying organizations will not want to miss it, as the MetalMiner team will delve into price predictions for 2022. For more information about the webinar and to sign up, those interested should visit the MetalMiner Events page.

Elsewhere, MetalMiner also recently launched a suite of precious metals within the MetalMiner Insights platform. In addition to gold and silver, the suite includes platinum and palladium (of particular relevance to the automotive sector), plus rhodium, iridium and ruthenium.

Without further ado, here’s a recap of this week’s coverage:

• Ford Motor Co. and GlobalFoundries announced a partnership to work on semiconductor technology and boost supply for the automaker.
• Nucor Corporation will add a blast and prime line to its under-construction plate mill in Brandenburg, Kentucky.
• Global copper mine production increased by 3.3% during the first eight months of the year, the International Copper Study Group reported.
• The U.S. is facing a stainless steel shortage, a guest post this week warns.
• Aluminum inventories are moving toward zero, Stuart Burns explained.
• Norsk Hydro said it will begin construction on a new Michigan recycling plant in Q2 2022.
• Global crude steel production took a big step down in October, World Steel Association data indicate.
• According to a second estimate from the Bureau of Economic Analysis, U.S. real GDP increased by 2.1 in Q3 2021.
• President Joe Biden announced the Department of Energy will release 50 million barrels of oil from strategic reserves.

We’re off today and tomorrow but will resume regular coverage Monday.

But for now, we wish you a Happy Thanksgiving, MetalMiner readers!

This morning in metals news: U.S. GDP increased by 2.1% in Q3 2021, the Bureau of Economic Analysis reported in its latest estimate; new home sales increased in October; and, lastly, average U.S. gasoline prices are higher this Thanksgiving holiday than any since 2012.

Each month, MetalMiner hosts a webinar on a specific metals topic. The final webinar of the year is scheduled for Wednesday, Dec. 8, during which the MetalMiner team will overview predictions for 2022. For more information and to sign up for the webinar, visit the MetalMiner events page. 

US GDP up 2.1%

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According to the Bureau of Economic Analysis today, U.S. real GDP increased at an annual rate of 2.1% in Q3. The figure is the bureau’s second estimate for Q3 GDP.

U.S. GDP increased by 6.7% in Q2 2021.

“The increase in third quarter GDP reflected the continued economic impact of the COVID-19 pandemic,” the BEA reported. “A resurgence of COVID-19 cases resulted in new restrictions and delays in the reopening of establishments in some parts of the country. Government assistance payments in the form of forgivable loans to businesses, grants to state and local governments, and social benefits to households all decreased.”

New home sales tick up in October

New home sales in the U.S. increased by 0.4% in October from the previous month, the Census Bureau reported.

Sales reached a seasonally adjusted annual rate of 745,000 in October.

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This morning in metals news: Norsk Hydro plans to begin construction on its new aluminum recycling plant in Cassopolis, Michigan, in Q2 2022; meanwhile, U.S. utilities are spending more on electricity delivery; and, lastly, the United States International Trade Commission recently voted to continue investigations regarding imports of oil country tubular goods from Argentina, Mexico, Russia and South Korea.

Make sure you are following the five best practices of sourcing aluminum. 

Construction to begin next year on Hydro’s new Michigan aluminum recycling plant

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Norsk Hydro said it is on track to begin construction in Q2 2022 on its new aluminum recycling plant in Cassopolis, Michigan.

“The Cassopolis greenfield development will mark the first large-scale production of Hydro CIRCAL® extrusion ingot in North America. We look forward to bringing this high-quality, low-carbon product to our most demanding customers,” said Eivind Kallevik, executive vice president of Hydro Aluminium Metal.

The extrusion ingot will be used in automotive, construction and consumer applications, in addition to building systems. The plant will have annual capacity of 120,000 tons per year.

Utilities pay more for electricity delivery

U.S. utilities are paying for more electricity delivery but less for power production, the Energy Information Administration reported today.

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