5N Plus expects extra Te spot business from First Solar

Spanish Market: Metals
27/02/25

Canadian compound semiconductor materials producer 5N Plus expects more spot tellurium demand from US solar panel manufacturer First Solar, as it pushes to source more of its supply from outside China in the wake of this month's latest export controls.

First Solar uses cadmium-telluride in its thin-film solar panels, and has a partnership with 5N Plus to refine the tellurium by-product from Rio Tinto's Kennecott mine in Utah to secure supply.

5N Plus has a minimum-volume contract with First Solar, which previously increased the volume of the agreement by 50pc for the next two years, effectively making it three times higher than it was in 2022.

"They could order more spot business, and it is most likely they will ask for more than just the minimal volume, which was already a huge increase compared to the previous year," said Gervais Jacques, 5N Plus president and chief executive, in a company earnings call.

First Solar was contacted for comment but had not replied by the time Argus went to press.

First Solar has previously said it continues to evaluate whether there will be any operational impact from China's decision to restrict tellurium exports — underscoring the need for the US to accelerate the development of copper mining and processing of its by-product materials. The Chinese government has previously implemented controls on gallium and germanium exports.

Regarding the impact of the export controls on its own business, 5N Plus said it sources germanium primarily from Europe and partially from Canada through a producer in British Columbia. It similarly has a continued supply of bismuth outside China.

5N Plus has been expanding the production capacity of its space solar business, which supplies germanium substrates. The substrates are layered with materials such as aluminium indium gallium phosphide (AlInGaP), aluminium indium gallium arsenide (AlGaAs), InGaP, InGaAs and germanium. 5N Plus expects its space solar business to expand by 30pc this year, with its capacity increasing from the second to the fourth quarters.

The company anticipates the health and pharmaceuticals sector will continue driving an increase in demand for bismuth chemicals in line with gross domestic product (GDP) It is well positioned to meet that demand from its facilities in Lubeck, Germany.

By Nicole Willing

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18/12/25

US inflation slows to 2.7pc in November

Houston, 18 December (Argus) — US inflation unexpectedly slowed in November, according to the government's first monthly report following a federal shutdown that led to no data reported for October. The consumer price index (CPI) in November rose by 2.7pc from a year earlier, the smallest gain since July and down from 3pc in September, the Bureau of Labor Statistics (BLS) reported Thursday. The BLS did not collect survey data for October due to a lapse in appropriations because of the 43-day federal government shutdown that ended on 12 November. President Donald Trump sacked the BLS director in August after labor market revisions revealed unexpected job losses in prior months. "November's CPI data have to be treated cautiously, given that CPI data collection resumed only on the 14th after the end of the shutdown," Pantheon Macroeconomics said in a note after the report. CME's FedWatch tool after the report showed a 26.6pc chance the Federal Reserve will cut its target rate in January, up from 24.4pc on Wednesday. The Fed last week cut its target rate by a quarter point, the third such reduction this year, and penciled in only one such cut next year and in 2027. So called core inflation, which strips out volatile food and energy, slowed to a 2.6pc annual pace in November from 3pc in September. Services less energy services, a measure of core services inflation, rose by 3pc in November compared with a 3.5pc gain in September. The energy index rose by 4.2pc on the year, up from a 2.8pc gain in September, BLS said. The gasoline index rose by an annual 0.9pc in November compared with a 0.5pc decline in September. The fuel oil index rose by 11.3pc in November, surging from a 4.1pc gain in September, and the energy services index rose by 7.4pc in November, accelerating from a 6.4pc gain in September. The shelter index rose by 3pc in November, slowing from 3.6pc in September New vehicles rose by 0.6pc in November while used vehicles rose by 3.6pc. The food index rose on the year by 2.6pc in November following a 3.1pc gain in September. Meats, poultry, fish and eggs rose by 4.7pc in November. Medical care services rose by 3.3pc in November after a 3.9pc gain in September. Household furnishings and decorations, which are affected by import tariffs, rose by 4.6pc after a 4.1pc gain in September. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Traders offer CBAM paid import at discount to NW EU HRC

18/12/25

Traders offer CBAM paid import at discount to NW EU HRC

London, 18 December (Argus) — Some traders are starting to offer imported hot-rolled coil at varying discounts to Argus ' benchmark north EU HRC index inclusive of the carbon border adjustment mechanism (CBAM), suggesting they do not believe they will have to pay default values for the material. One trader was this week offering Indian HRC at a discount of €10/t to the monthly average of the Argus index for May 2026. Indian fixed-price cfr offers are around €470/t, while April is currently trading around €665/t on the CME Group's north EU HRC contract, for which Argus ' index is the cash-settlement basis. This suggests the trader believes it will not have to pay default values for the material; India's default value of 4.7t and the relevant benchmark of 1.37 would imply a CBAM cost of almost €270/t and an all-in cost of €740/t, assuming a carbon price of €80/t. Another trader reportedly offered Indonesian material at a steeper discount to the index for April arrival. Indonesia's default value of over 9t, against the benchmark of 1.37/t, would imply a carbon cost alone of over €617/t, suggesting it also assumes it will not pay the default value. The mill in question has informed market participants its direct emissions intensity is around 1.2t. The offers suggest, unsurprisingly, traders expect CBAM costs to be factored into the domestic market price, as reflected by Argus ' index. They also suggest traders believe domestic material will retain a premium to imports: at a recent Eurometal conference in Dusseldorf, some buyers suggested domestic material from one or two mills may in effect become the marginal tonne, as CBAM increases import costs. Increased complexity in importing — predominantly driven by CBAM and revisions to the EU safeguard — is steadily pushing the market towards buying on delivered duty paid terms, meaning buyers run no duty risk. This is typically being absorbed by traders. Most ddp offers have risen in recent weeks, in response to a flurry of leaked CBAM documents. Traders had been offering around €570/t ddp a few weeks back, but these offers have now mainly climbed to €600-620t ddp, reflecting more prohibitive default values and an expectation that prices will rise in the first quarter, enabling traders to book more profit. There was an offer reported yesterday at €585/t ddp Antwerp from Asia for April-May. The origin of the material was unclear, but some said it was from Vietnam. The rise in ddp offer volumes and prices has led to an increase in trading on the CME Group's north EU HRC contract in the last week or two. A 15,000t deal traded on 16 December for the fourth quarter of 2026 at €684/t, which derivatives traders said was likely an attractive buying price. Over the first three days of this week, around 36,700t traded on the CME contract, compared with just over 41,000t the whole of last week and 11,260t the preceding week. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: Copper supply tightness beckons in Europe

17/12/25

Viewpoint: Copper supply tightness beckons in Europe

London, 17 December (Argus) — Europe's copper market heads into 2026 carrying the imprint of an extraordinary 2025, a year in which price signals, physical flows and geopolitics diverged sharply. What emerged was not a simple story of shortage or surplus, but a fractured global market in which Europe briefly found itself competing for metal with the US, while China's smelting overcapacity distorted upstream fundamentals. While European supply has stabilised, a projected tightness in 2026 promises higher premiums, particularly if underlying metal prices remain at record highs. Fractured fundamentals in 2025 Copper prices surged through 2025, with London Metal Exchange (LME) three-month values repeatedly achieving record territory above $11,000/t and briefly approaching $12,000/t in December. On the surface, the rally appeared to signal a classic supply crunch, driven by mine disruptions at assets such as Grasberg, in Indonesia, and Kamoa-Kakula, in the Democratic Republic of Congo, and structurally strong demand from grids, electrification and data centres. But the deeper story was more complex. Demand growth was uneven. China's apparent consumption slowed sharply in the second half of the year as stimulus effects faded, while manufacturing activity in Europe remained weak. Yet prices continued to rise, reflecting not so much booming end-use demand as a geopolitical and logistical reshaping of supply. The decisive factor was the growing pull of copper into the US market on the threat of import tariffs on refined copper. The widening price premium on the Chicago Mercantile Exchange (CME) contract relative to the LME opened a powerful arbitrage that drew metal out of LME warehouses and, by extension, away from Europe. By late 2025, CME stocks accounted for more than half of global exchange inventories, while LME registered stocks fell below 100,000t at points — levels historically associated with acute tightness in deliverable supply. For Europe, this mattered more than headline global balances. Even as total exchange inventories rose above 700,000t worldwide, availability became tighter in non-US regions, pushing spot and term premiums sharply higher. LME-CME arbitrage: the key swing factor The LME-CME arbitrage, which is governed by several interlinked factors — relative interest rates, currency moves, logistics costs, warehouse accessibility and above all, US trade policy — is expected to remain in 2026. As long as the CME price commands a premium of several hundred dollars per tonne over the LME, the incentive to ship metal into the US persists. In 2025, that premium regularly exceeded estimated freight and financing costs, keeping the arbitrage wide open. In 2026, tariff-driven uncertainty could trigger further pre-emptive inflows into the US early in the year, sustaining tightness elsewhere — including Europe — before potentially easing later once inventories are built and global supply recovers from 2025 shocks. Conversely, a delay or dilution of tariffs could narrow the spread, allowing some metal to remain or return to LME locations. European supply and premiums: a new baseline? European spot premiums eased in September-November as the scramble for cathode outside the US eased, but as major producers have responded to 2025 events by lifting 2026 term premiums aggressively, European spot premiums also surged as sellers look to mirror the new market baseline in the spot market. Chilean supplier Codelco announced a near 40pc increase in its European premium for 2026 deliveries, taking it to the mid-$300s/t over LME, with Aurubis following with similarly high offers. The Argus assessment for copper cathode grade A cif Rotterdam rose to $210-220/t on 2 December, increasing by more than a third relative to September-November levels. Trading groups and producers surveyed by Argus indicate a reassessment of risk — producers are pricing in the possibility that Europe becomes structurally "second in line" behind the US for deliverable cathode. Whether these elevated premiums are sustainable through the whole of 2026 depends on how quickly arbitrage-driven stock movements stabilise. But even if LME stocks rebuild later in the year, the premium reset of 2025 may have established a higher floor for Europe. Bank forecasts: surplus, but not comfort Major banks mostly agree that the global copper market remains in surplus in 2026, although the size of that surplus is shrinking. Goldman Sachs projects a surplus of about 160,000t in 2026, down from roughly 500,000t in 2025, and expects prices to average $10,000-11,000/t. But the International Copper Study Group points to a possible deficit of 150,000t in 2026, keeping the market on watch. Chinese market participants are expecting non-US supply to tighten significantly as material flows in the US, but some US market participants point to an easing trend. On paper, these numbers argue against a classic shortage. But the experience of 2025 shows that regional tightness can coexist with a global surplus. For Europe, the key takeaway is that surplus metal may not be available where it is needed, when it is needed, if arbitrage and policy continue to redirect flows. In that sense, 2026 could resemble 2025 — balanced or a surplus globally, but intermittently tight in Europe. By Raghav Jain Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

CBAM verification to redefine Italian HRC pricing

17/12/25

CBAM verification to redefine Italian HRC pricing

London, 17 December (Argus) — Italian hot-rolled coil (HRC) prices could find stronger support in 2026 as the EU's carbon border adjustment mechanism (CBAM) moves into its financial phase and safeguard quotas tighten, raising the cost and complexity of third-country supply. Default values under CBAM underscore the need for suppliers to have their emissions data verified, and perceptions of compliance and trustworthiness could reshape import flows in the year ahead. A modest recovery in real steel consumption could add to the upward pressure, even as buyers remain cautious after four years of contraction. European steel association Eurofer forecasts EU real steel consumption will rise by 1.1pc in 2026, following declines of 4.2pc in 2024 and an expected 2.1pc this year, weighed down by weak automotive demand. The improvement coincides with stricter import regulation: CBAM charges will vary by origin, and quota management will become critical, as volumes drop. The origin of import material is likely to only grow in importance for purchasing decision-making. Argus currently publishes seven HRC origin differentials to its cif Italy HRC assessment. Low-CBAM, short-haul origins could tighten spreads to domestic offers, while higher-CBAM volumes will need deeper discounts to remain competitive, which would be exacerbated by expectations of pro-rated safeguard duties once the post-safeguard mechanism enters into effect. Beyond carbon intensity and quota considerations, the ability of suppliers to demonstrate verified CBAM compliance could become a decisive factor in purchasing decisions. Mills perceived as lacking robust internal processes for emissions reporting may face reduced buyer confidence, while those with transparent systems could command a premium. In a market where regulatory risk is rising, trustworthiness and preparedness are emerging as value drivers, influencing origin differentials and potentially narrowing the gap between suppliers perceived as compliant and domestic offers. Domestic Italian mills, by contrast, are positioned to hold premiums over 2025 average prices as imports lose some of their cost advantage, and as volumes are likely to be cut. The Argus Italian HRC ex-works assessment has averaged €583.71/t so far in 2025, down from €620.13/t in 2024, while cif Italy has averaged €530.39/t against €578.47/t a year earlier. Lower averages reflected subdued demand and steady import arrivals through to mid-year, when ample offers from Indonesia, India and Turkey, combined with a firm US dollar, pulled cif Italy lower and forced mills to discount. Domestic HRC values slid into the summer on thin buying and cheaper imports, hitting a low monthly average of €535.75/t in July. Prices rebounded sharply in October to average €608.75/t ex-works as expectations of tighter import rules and CBAM-linked costs lifted sentiment, even as downstream demand stayed muted. With carbon intensity and quotas shaping trade flows, Italian HRC in 2026 could trade higher than in 2025: not on demand strength alone, but on the rising premium for certainty in a more regulated import landscape. By Lora Stoyanova Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia coal, Fe prices to fall; LNG up: Treasury

17/12/25

Australia coal, Fe prices to fall; LNG up: Treasury

Sydney, 17 December (Argus) — Australian iron ore, coking coal, and thermal coal prices are expected to decline by the end of December 2026, while LNG prices may rise from current levels, according to Treasury forecasts released on 17 December. Australian commodity prices are expected to return to long-run fundamental levels, Treasury said in its Mid-Year Fiscal and Economic Outlook for the 2025-26 financial year ending 30 June. Thermal Coal Australia's thermal coal prices have been supported by ex-China demand since Treasury released its July 2025-June 2026 budget on 25 March, Treasury said. But it does not expect this trend to continue. Treasury forecasts Australian thermal coal spot prices will fall to $70/t on a fob basis by the end of December 2026, down from current levels. Argus ' Australian NAR 6,000 kcal/kg fob Newcastle price was last assessed at $108.46/t on 16 December, up from $95.62/t on 25 March. Australian thermal coal exports to China fell 11pc on the year in January-October ( see table ), while shipments to Japan, South Korea, Vietnam, and Malaysia rose, data from the Australian Bureau of Statistics show. Steelmaking Inputs Chinese economic policy support has lifted iron ore and metallurgical coal prices since March, Treasury said. But it expects Australian iron ore and coking coal spot prices to fall to $60/t and $140/t fob, respectively, by the end of 2026. Argus ' metallurgical coal premium hard low-volatile fob Australia price was last assessed at $215.10/t on 16 December, while its iron ore fines 61pc Fe (ICX) fob Australia netback price was last assessed at $90.55/t. Treasury also expects mining investment to remain unchanged over the next two years, largely because of the iron ore and coking coal sectors. Iron ore producers may invest in projects to maintain production, but coking coal producers are expected to run down their capital stock, Treasury said. Producers are looking to sell or finance around six Queensland coking coal mines, a market participant told Argus on 2 December. Petroleum LNG prices have declined since March because of China's shift toward non-Australian gas, Treasury said. Australian LNG spot prices are expected to reach $10/mm Btu by the end of December 2026, according to Treasury forecasts. Argus ' Gladstone fob price — an LNG netback indicator — was last assessed at $9.01/mm Btu on 16 December, down from $12.90/mm Btu on 25 March. China plans to prioritise pipeline and domestic gas over LNG imports in the coming years, PetroChina International's global head of LNG Yaoyu Zhang said on 4 December. Treasury also expects global oil prices to hover around $66/bl over the next four years, down from its March estimate of $81/bl. Australia's government will raise less revenue from its petroleum resource rent tax than previously expected because of the downgrade, the agency added. The tax is forecast to generate A$1.5bn in 2025-26, down from the earlier estimate of A$1.95bn. By Avinash Govind Treasury Commodity Forecasts (Mid-Year Economic and Fiscal Outlook) $ Commodity Argus Price (most recent)* Forecasted Price* Change (%) Coking Coal 215.1/t 140/t -35.0 Thermal Coal 95.62/t 70/t -26.8 Iron Ore 90.55/t 60/t -33.7 LNG 9.01/mm Btu 10/mm Btu 11.0 * Argus' Australian NAR 6,000 kcal/kg fob Newcastle; metallurgical coal premium hard low-volatile fob Australia; Argus' Gladstone fob; Iron ore fines 61pc Fe (ICX) fob Australia netback * fob Australia basis, at end of December 2026 Argus, Commonwealth of Australia Australian thermal coal exports mn t Market Jan - Oct '25 Jan - Oct '24 YTD Change (%) China 53 60 -11 India 2.9 3.4 -16 Japan 59 59 0.5 South Korea 11 9.7 12 Vietnam 13 9.6 37 Malaysia 5.9 5.4 11 Australian Bureau of Statistics Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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5N Plus expects extra Te spot business from First Solar

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