Metals &Mining Alert:Daily prices and news,Aircraft producers raise LT demand forecasts。 US Hot-Rolled Coil (HRC) spot price increased $15/st WoW to $592/st
Indonesia may grant Freeport-McMoRan (FCX) permit extension in
October,subject to agreement on various aspects. FCX’s temporary license
expires inOctober and they are seeking extension till 2041. (Bloomberg
US steel import permits for June through 6/20 total 2.6m st. If
adjusted to a fullmonth, imports would be 3.9m st (+40% YoY), vs. May
permits of 3.6m st andApril imports of 3.4m st. Rebars (+168kt, +145%)
appear to increase the mostMoM, followed by hot-rolled sheets (+96kt,
+58%) whereas semis (-160kt, -15%) and wire rod (-48kt, -25%) permits
fell. (US Import Administration).
HR and Cold-Rolled sheet spread contracted to $206/st (-$13/st WoW).
NYMEXDecember 2017 forward HRC price rose $19/st WoW to $625/st. (CRU,
Swiss gold exports rise 39% MoM to 170 tons in May. Exports to India
rose40% to 68 tons whereas exports to China fell 30% to 28 tons. Swiss
importsstood at 181 tons (+14%). (Bloomberg Finance LP).
Aircraft manufacturers raise global aircraft demand forecasts for
next 20 years.
Goldcorp (GG) to sell 100% stake in Camino Rojo oxide project,
Mexico to OrlaMining. GG to receive C$35m Orla equity, 2% net smelter
return royalty onproject revenues, an option to acquire 70% stake in
future sulfide projects andright to nominate a Director to Orla’s Board.
Deal to close in 2H17. (Company)Coal India, world’s largest coal
producer plans to close 37 mines before March2018. Increasing
competition from renewable energy sources and stringentenvironmental
regulations has increased costs for the company, whichproduces ~82% of
India’s total coal output. (Mining.com)
Crude steel output by members of China Iron and Steel Association
duringJune 1-10 averages 1.86m tons/day (+5% sequentially, +7% YoY).
Finishedsteel inventory at mills totaled 12.7mt (-1% seq, -10% YoY).
Rebound in outputwas expected as environmental inspections ended in
late-May. Output maydecrease by June-end as mills carry out routine
maintenance stoppages. (SBB).
Airbus anticipates 34,900 new aircraft by 2036 (+6% from last year’s
forecast)while Boeing estimates 41,030 aircraft needed by 2036 (+4%).
Long-termgrowth in aerospace industry likely to benefit suppliers
Allegheny Technologies,Arconic, Carpenter Technology, Constellium and
Kaiser Aluminum. (Argus, DB).
Industrials (/lb): aluminum $0.85 (-1.0%), copper $2.60 (+1.5%), lead
$0.99(+2.7%), molybdenum $7.14 (+0.0%); nickel $4.08 (+2.1%); zinc $1.20
(+3.3%);Precious (/oz): gold $1,247 (+0.3%), silver $16.51 (+0.3%);
Steel (/mt): ChinaHRC $504 (+0.2%), SHFE Rebar $448 (-1.9%), MB Scrap
Index $276 (+1.5%);Bulks: iron ore (/dmt) $57 (-0.3%), coking coal (/mt)
$147 (+2.8%), freight (BCI)1,020 (-8.1%); Energy: Brent (/bbl) $44.82
(-2.6%), WTI (/bbl) $42.53 (-1.6%),natural gas (/mmBtu) $2.89 (-0.5%),
thermal coal (/t) $81 (-0.1%).