Viewpoint: Less Brazilian alloy to lift US FeSi prices
US ferro-silicon prices are projected to rise by the end of the first quarter of 2020 as lower supplies of Brazilian origin alloy lift costs.
A mixture of oversupply and lower prices for Brazilian alloy contributed to a decline in US ferro-silicon prices over much of 2019, but market participants expect supplies to tighten from the country as key producers tap into reduced capacity.
Some producers curtailed production in the third quarter because of higher input costs and are operating at a reduced capacity.
For instance, Brazilian producer Ferbasa cut back production in the latter half of 2019 and saw stocks decline by 16pc in the third quarter. Even with a ramp-up in production, market sources expect the shortage to last through the first quarter because of production and freight lead times.
Traders estimate that imports from some Brazilian ferro-silicon producers will be unavailable until as late as March as the producers focus on contract business amid lower output. The shift in focus has already resulted in a reduced inventory accessible to the spot market but will tighten further with the start of the new year.
Though most ferro-silicon imports originate from Russia, Brazil has become an increasingly influential source for lower-priced alloy in the spot market. In 2019, January-October imports of ferro-silicon with 55-80pc silicon contained grew by 118pc to 15,400 metric tons (t) from the previous-year period, according to US Department of Commerce data.
Alloy from Brazil accounted for 8.5pc of total imports, the most in 20 years excluding the record year in 2016, and up from 6pc in 2018.
US ferro-silicon prices declined by 20pc from the beginning of the year to 72-76¢/lb on 26 December, largely owing to the availability of cheap alloy from Brazil and Malaysia.
Although participants expected largely flat demand heading into the first quarter of 2020, typically steel mills re-enter the market for annual and spot market shipments after drawing down inventories in the last weeks of the year.
With Brazilian producers limiting offers for prompt delivery or offering shrinking stocks of alloy at higher prices, trader stocks are expected to wane, raising the overall costs to participate in the spot market.
As a result, market participants expect traders to pass along the gains to mills, especially for prompt delivery in the first quarter.
The handful of other Brazilian suppliers with inventory may command higher selling prices for their leftover stock until production levels rise back, forcing traders to import alloy at a higher cost from Brazil or look to other countries.
Suppliers do expect more reliance on the other source of inexpensive alloy, Malaysia, but most were mixed on whether the country could supply enough volumes to fully offset losses from Brazil. Malaysia exported 19,500t of ferro-silicon to the US in 2019, up from 14,600t a year earlier.
By Nicholas Bell
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Beijing, 24 April (Argus) — Chinese battery cathode producers have continued to expand investment in the overseas market, with the country's largest lithium iron phosphate (LFP) producer Hunan Yuneng planning to build a plant in Spain. Yuneng plans to invest 982mn yuan ($135.5mn) to build a 50,000 t/yr LFP production plant in Spain's Extremadura region. The firm aims to complete the site construction in 15 months after obtaining approval from the authorities. It will establish a subsidiary Yuneng International (Spain) New Energy Battery Material to develop this project. It did not disclose more details such as the launch dates. "This project is to strengthen the company's position in the global market and meet demand from overseas consumers, on the back of growing demand for LFP cathodes in the overseas market driven by the development of new energy vehicles outside China, especially in Europe," Yuneng said. Yuneng produced 504,400t of LFP cathodes in 2023, up by 50pc from a year earlier, with sales also rising by 56pc to 506,800t over the same period. It has achieved a nameplate capacity of 700,000 t/yr for LFP as of the end of 2023. It is also expanding capacity for another emerging battery cathode material, lithium manganese iron phosphate, which has higher energy density and allows for a longer driving range in electric vehicles (EVs), better performance in winter temperatures, and has lower manufacturing costs compared with LFP. Overseas expansions A growing number of Chinese battery cathode firms have accelerated their investment in overseas production projects, such as in France, Morocco and South Korea , to diversify resource origins and meet market entry conditions to the US required by the Inflation Reduction Act, and to cope with restrictions on key battery materials in the EU's Critical Raw Materials Act. Argus forecasts total demand for EV battery cathode material will reach 7.7mn t by 2034, from only 1mn t in 2022, with LFP expected to continue to take up the bigger share compared with ternary battery cathodes. Argus -assessed costs for cathode active material LFP were $13.95/kwh on 23 April, up from $12.31/kwh at the start of this year. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Inversión en autos eléctricos en México crecerá
Inversión en autos eléctricos en México crecerá
Mexico City, 23 April (Argus) — Las inversiones en México en ensamblaje de vehículos eléctricos (EV) y cadenas de suministro alcanzaron un máximo histórico en 2023 y se espera que crezcan en 2024, a pesar de una reciente desaceleración de la demanda global de EV y las próximas elecciones presidenciales. Se realizaron 96 inversiones en México durante 2023 en vehículos eléctricos y gastos relacionados con la electromovilidad, que alcanzaron los $5,600 millones, según el último informe de electromovilidad de la empresa mexicana de investigación Directorio Automotriz (DA). La empresa espera que esto se expanda en 11pc a $6,200 millones en 2024. Las expectativas de crecimiento global se han moderado para los vehículos eléctricos, pero DA señaló que la trayectoria sigue siendo positiva con proyecciones para las ventas globales de EV en 13.3 millones de unidades vendidas este año frente a los 9.6 millones vendidos en 2023. El año comenzó con varios anuncios de inversión. 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Por James Young Planes recientes de inversión en EV y electromovilidad en México Anunciado Compañía Proyecto Inversión Ubicación Feb 23 Stellantis Producción de la van de carga EV RAM ProMaster 200 Saltillo, Coahuila Marzo 23 Tesla and OEM suppliers Tesla Gigafactoría e inversiones asociadas 15,000 Santa Catarina, Nuevo Leon Marzo 23 Jetour Planta de ensamblaje de vehículos híbridos y de combustión interna 3,000 Ramos Arizpe, Coahuila Feb 24 Volkswagen Centro estratégico para EV 942 Puebla Marzo 24 Magna Agregar dos divisiones para partes de EV 166 El bajío Marzo 24 BMW Construir planta de ensamblaje de baterías para EV 849 San Luis Potosí Marzo 24 Seojin Mobility Construir planta de motores para EV 260 Sonora Abril 24* ZF Group Centro de I+D en electromovilidad 200 Monterrey, Nuevo León — Anuncios de la compañías *Abierto Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Hydro invests in metal recycling plant at Hoyanger
Hydro invests in metal recycling plant at Hoyanger
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Baltimore opens third temporary shipping channel
Baltimore opens third temporary shipping channel
New York, 22 April (Argus) — A third temporary shipping channel has opened at the Port of Baltimore to allow more vessel traffic around the collapsed Francis Scott Key Bridge. Located on the northeast side of the main channel, the new passage has a controlling depth of 20-ft, a 300-ft horizontal clearance, and a vertical clearance of 135-ft. When combined with two other temporary channels opened earlier this month the port should be able to handle "... approximately 15 percent of pre-collapse commercial activity," said David O'Connell, the federal on-scene coordinator. The main shipping channel of the Port of Baltimore — a key conduit for US vehicle imports and coal exports — is expected to be reopened by the end of May, the Maryland Port Administration said earlier this month. The bridge collapsed into the water late last month when the 116,851dwt container ship Dali lost power and crashed into one of its support columns. Salvage teams have been working ever since to remove debris from the water and containers from the ship in order to clear the main channel. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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