Singapore, 31 October (Argus) — The Asian seaborne steel market softened today on fears of oversupply, fuelled by China's export rebate increase. The Chinese domestic markets also softened as activity slowed. The Chinese Ministry of Finance has increased the export rebate for alloyed hot-rolled sheet and coil, and wire rod, from 9pc to 10pc, effective 1 November. The galvanised export rebate rose by 3pc to 16pc. Asean hot-rolled coil import prices fell by $11/t to $538/t cfr, following a drop of the same magnitude yesterday. A deal for 10,000t was done at $535/t cfr, reportedly short-sold from traders for January shipment. Stockists were extremely hesitant to buy given the drop in steel prices of late, and retreated to the sidelines. Fob China hot-rolled coil (HRC) prices slipped by $1/t to $532/t on the back of these short-sellers offers. Traders offered into Pakistan at $545/t cfr, equating to around $525/t fob, again for January shipment. Domestic Chinese HRC prices slipped by 40 yuan/t to Yn4,100/t in Shanghai, and some cut offers in the afternoon to Yn4,080/t to attract as many orders as possible. HRC prices in Tianjin slipped by Yn40/t to Yn4,050/t on slow trade. Futures prices in Shanghai also slipped, by 1.58pc to Yn3,802/t for the most liquid January contract. Rebar and rod Import prices into Asean were unchanged because of a lack of competitive offers and quiet demand. Fob China prices were also static at $543/t on a theoretical weight basis, with buyers disinterested in high offers. One mill kept its offer at $585/t fob. There was some suggestions buyers were purchasing billet for re-rolling rather than rebar, with 50,000t of Russian material heard sold into the Philippines at $508/t cfr. Domestic Chinese rebar prices dipped by Yn10/t to Yn4,690/t in quiet trading. Private-sector steelmakerJiangsu Shagang is announcing its new price policy tomorrow, and it is likely the producer will increase ex-works prices by Yn50-80/t given the tight supply and restricted production. Wire rod export prices out of China slipped by $5/t to $565/t as offers and bids came down and the export rebate dampened sentiment. A north China mill reduced its wire rod export offer by $10/t to $570/t fob, while no deal has been heard so far this week. "Philippine buyers are bidding at $560/t fob now, so we have to wait for mills to reduce their prices further," an east China exporter said. Billet Mills in Tangshan cut prices by Yn10/t to Yn3,980/t despite the city announcing an orange warning on air pollution and asking mills to comply with output restrictions over 31 October-5 November. More localities released output restriction plans during the heating season this year, but the amount of cuts was still perceived as lower than the same period last year. Market sentiment remained fragile with January futures for rebar falling down by 1.24pc to Yn4,127/t. Summary of market activity heard by Argus HRC-China: Offer for Chinese hot-rolled sheet at $530/t fob, January shipment — information from a Vietnamese trader. HRC-China: Offer for Chinese HRC at $525/t fob at short-selling, January shipment — information from a Vietnamese trader. HRC-China: Offer for Chinese HRC at $525/t fob at short-selling, January shipment — information from a north China mill. Wire rod-China: Offer for Chinese wire rod at $570/t fob, December shipment and down by $10/t over last week — information from a north China mill. Wire rod-China: Bid for Chinese wire rod at $560/t fob, December shipment — information from an east China exporter. Rebar-China: Offer for Chinese rebar at $585/t fob, December shipment and stable over last week — information from a north China mill. HRC-Asean: Deal this week for 10,000t HRC sized with pipe-making grade at $535/t cfr Vietnam, January shipment — information from a Vietnamese trader. HRC-Asean: Offer this week for Chinese HRC sized with re-rolling grade at $555/t cfr Vietnam, January shipment — information from a Vietnamese buyer. HRC-Asean: Offer this week for Chinese HRC sized with re-rolling grade at $565/t cfr Vietnam, January shipment — information from a Vietnamese buyer Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Beijing, 31 October (Argus) — China's private-sector Guangdong Hongtu Technology will raise its output capacity of aluminium alloy die-casting automobile parts as it looks to meet rising demand for energy-saving and weight-reducing materials from the automotive industry. The company, based in Zhaoqing in China's southern Guangdong province, has invested 500mn yuan ($72mn) to build a new project with 20,000 t/yr of capacity. This will raise the firm's total capacity to 68,000 t/yr. Site construction is scheduled to be completed by 10 January 2019, with pilot production to launch in March. The new plant will produce aluminium alloy die-casting automobile parts, including shells for gearboxes, clutches and electric mechanical transmission. China's automotive production maintained its mild growth in this year's first three quarters, with output rising by 0.9pc from a year earlier to 20.5mn units. January-September sales were up by 1.5pc to 20.5mn units. Domestic new energy vehicle output rose by 73pc year on year to 735,000 units in January-September, with sales increasing by 81pc to 721,000 units over the same period. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Singapore, 31 October (Argus) — China's steel sector purchasing managers' index (PMI) rose by 0.1 points from a month earlier to 52.1 in October, as output and new order inflow increased while mill inventories of finished goods fell sharply. The steel production sub-index rose by 2.1 points to 55.7 in October, according to the China Steel Logistics Professionals Committee (CSLPC), which compiles the steel PMI index. A score above 50 indicates an expansion. Mills rushed to manufacture as much steel as they could in October before production restrictions hit several cities in November, the CSLPC said. The increased pace of production led to an increase in imports of raw materials such as iron ore and coking coal. The raw material import index rose by 5.9 points to 56.6. The new domestic orders sub-index jumped by 3.4 points to 52.3, returning to the expansionary zone after a contraction in September. The increase in orders is mostly for the construction sector, because of easier capital availability and robust building activity across the country. The CSLPC expects demand growth to ease in November because of a winter construction slowdown in north China. But analysts at Chuangcai Securities yesterday forecast robust steel demand until end of the year. Strong demand from the downstream sector has sharply eroded mill stocks of finished goods, with the finished goods inventory sub-index falling by 11.4 points to 42.3. Manufacturing sector growth continues to slow. The official manufacturing PMI compiled by China's national statistics bureau fell to 50.2 in October from 50.8 in September. Slower growth in sectors such as automobiles and machineries has pressured demand for flat products for the last few months, with little demand upside seen in the near term. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Singapore, 31 October (Argus) — A summary of activity in the Asia-Pacific iron ore and steel markets so far today: Deals: 50,000t FMG L with a 11-20 December laycan traded at [B/L+1M] P62, (72pc). 50,000t FMG L with a 11-20 November laycan traded at [B/L+1M] P62, (72pc). 50,000t PBL with a 15-24 November laycan traded at November P62 +$0.339/dmtu Tenders: Vale has a tender of 176,540t SSFG F with B/L date 25 October, to close at 16:00 Offers and bids on Corex: Nil Offers and bids on Globalore: 170,000t IOCJ F with B/L date 17 October offer at $99/dmt 170,000t PBF with January-delivery offer at January P62 +$2.85/dmt 90,000t PBL with a 16-27 November laycan offer at November P62+$0.40/dmtu Tangshan billet: Flat at 3,990 yuan/t in the morning PBF offers in portside market: Qingdao: Yn595/wmt (unchanged) Caofeidian: Yn605/wmt (unchanged) Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Perth, 31 October (Argus) — Australia-based metals developer Ardea Resources has produced battery grade nickel and cobalt sulphate crystals at its Goongarrie project in Western Australia. These are key ingredients in the manufacturing of lithium-ion batteries, but not all nickel-cobalt orebodies are suitable to produce the quality required, the company said. Samples will be sent to interested parties for evaluation as part of the process of finding a strategic partner and offtake partners. The pilot plant initially produced a mixed sulphate product, which was refined to produce battery grade crystals meeting the specifications of battery metal offtakers. Goongarrie is part of the Kalgoorlie Nickel Project, a series of nickel-cobalt laterite deposits. The Democratic Republic of Congo hosts more than 60pc of the world's cobalt reserves and is the biggest cobalt producer. A pre-feasibility study has been completed for a 1mn t/yr and a 1.5mn t/yr operation at Goongarrie, as well as a scoping study on an expanded 2.25mn t/yr operation. It is estimated that Goongarrie contains 130,700t of cobalt metal and 1.5mn t of nickel metal. The expansion scoping study has indicated that the project could produce around 10,000 t/yr of cobalt sulphate and 81,000 t/yr of nickel sulphate. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 30 October (Argus) — UK dockside ferrous prices were firm over the past week, supported by a strengthening of the Turkish scrap price and a renewed weakening of the pound. The Argus weekly assessment for HMS 1/2 delivered to northern docks increased £5/t to £195-200/t, moving alongside the assessment for HMS 1/2 delivered to southern docks, which was flat at the same price. Large exporters in both regions were heard to be willing to pay up to £205/t for isolated parcels of HMS 1/2 but the bulk of business was done in the £195-200/t range. The weekly price assessments for OA grade scrap delivered to northern and southern docks were flat £215-220/t. The assessments for 5A/5C fragmentation feed were also unchanged at £125-130/t delivered to northern and southern docks. A rise in the Turkish imported scrap price influenced the upward movement in the UK dockside market. Argus assessed the HMS 1/2 80:20 cfr Turkey price at $335/t today, up by $3.70/t from 23 October. A UK exporter sold a cargo of HMS 1/2 80:20 at $335/t cfr Turkey on 26 October. A Handymax vessel was booked on 24 October to carry a ferrous scrap cargo from a southern UK dock to Turkey with 29 October-1 November loading, while an Ultramax vessel was booked to carry a cargo from another southern UK dock to Vietnam with a 2-5 November loading period. An increase in UK dockside prices, especially in the south, between 16-23 October, is likely to have been driven by these exporters' urgency to secure material for these cargoes. New business may be required for dockside prices to be shifted higher and some market participants doubted that the export bulk market will maintain its current strength. The weakness of the pound is allowing exporters to pay higher for UK tonnage that remains in tight availability. One small exporter estimated that inflows are 50pc of what they were this time in 2017. The pound traded at £1: $1.27 today, down from £1:$1.30 on 23 October. A UK exporter purchasing HMS 1/2 at £200 today would be paying a dollar equivalent of $254/t delivered to dock, $6/t lower than a week ago. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 30 October (Argus) — US aluminum and titanium mill Arconic boosted revenue by 9pc in the third quarter from a year earlier as increased shipments more than offset "aerospace product price and mix headwinds." Third-quarter revenue rose to $3.52bn compared with $3.23bn a year earlier, as shipments of the global rolled product segment—Arconic's only reported volumes—rose to 318,000metric tonnes (t) from 297,000t over the same period. Organic revenue growth, which excludes the impact of higher aluminum prices, was up by 21pc for the company's automotive group, up by 7pc for commercial transportation, higher by 16pc for aerospace engines and up by 34 pc for aerospace defense. Organic revenue growth for the building and construction systems group, which Arconic is attempting to spin off, was up by 5pc from a year earlier. "The sale process for the building and construction systems business is well underway and has drawn robust interest," chief executive Charles Blankenship said today on a call. The segment produced aluminum cladding, which was used in London's Grenfell apartment tower that caught fire in 2017. Earlier in the month, Arconic also announced that it had signed a deal to sell its Texarkana, Texas, rolling mill to the US arm of metal distributor Ta Chen for $300mn plus an additional consideration $50mn Higher sales were partially offset by "unfavorable aero engine mix, lower aero pricing principally in our Fasteners business and unfavorable net cost savings driven by transportation cost increases," chief financial officer Ken Giacobbe said. Third quarter profits jumped by 35pc to 161mn compared with a year earlier. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 30 October (Argus) — US export yard buying prices inched higher on the east coast this week as dealers push for higher prices following an uptick in Turkish booking prices. US sales to Turkey crossed $330/t cfr Turkey on an HMS 1/2 (80:20) basis last week for the first time since July after two exporters concluded deals at $331/t and $334/t for November shipment. The sales were up from October shipments in the $320s/t. Turkish prices are rising as ocean freight rates tick up and with scrap availability limited by strong demand from US and European consumers as well as bulk and container buyers in Asia. Obsolete scrap prices are expected to rise by $20/gt in US domestic trading this week, which some suggest may put further upward pressure on Turkish import prices. This comes even as Turkish mills' metal margins of around $170/t on rebar sales are at or near break-even levels. Several Turkish mills increased rebar offers to foreign and domestic buyers on the week by around $10/t in response. The rise in Turkish booking prices and bullish expectations for November and December sales to US domestic consumers drove dealers across the east coast to push for higher delivered-dock prices. Cut grades rose to an average of $279/gt delivered-dock for #1 HMS from $276/gt a week earlier, with P&S 5ft trading at a $10/gt premium. In New York, #1 HMS traded up by $5/gt at $275-285/gt. Philadelphia was also up by $5/gt to $280-290/gt. Boston ticked up to $270-280/gt from $267-277/gt, while Albany was unchanged at $270-280/gt. An exporter in New York loading a vessel this week bound for Turkey bid down by $10/gt, but met with resistance from some dealers with higher priced options from inland shredders. Still, shredder feed in New York fell to $180-190/gt from $185-195/gt. The grade was unchanged across the rest of the coast at $170-180/gt in Albany, $175-185/gt in Boston and $190-200/gt in Philadelphia. Competition from inland shredders also buoyed prices in Philadelphia. Export yard buying prices remained unchanged on the Gulf coast ahead of the US November buy week. In Houston, #1 HMS was unchanged at $280-290/gt, with P&S 5ft at $290-300/gt and shredder feed at $170-180/gt. But softening container prices for HMS helped push the grade down in Los Angeles even as the rest of the coast largely held. Still, demand for higher-quality grades such as shredded and P&S is driving wider-than-normal spreads with HMS. Cut grades in Los Angeles fell by $5/gt for a second week to $250-260/gt for #1 HMS and $260-270/gt for P&S 5ft. Shredder feed was unchanged at $145-155/gt. San Francisco cut grade collection prices were unchanged, with #1 HMS at $285-295/gt and P&S 5ft at $295-305/gt. Shredder feed prices rose by $5/gt to $160-170/gt. Seattle-Portland cut grade prices were unchanged, with #1 HMS at $270-280/gt and P&S 5ft at $285-295/gt. Shredder feed prices were unchanged at $165-175/gt. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 30 October (Argus) — Mill-grade scrap prices fell on Tuesday as LME aluminum slumped to a new low for the year in cash official settlements and some consumers are buying as far ahead as April of next year. Argus assessed benchmark grade mixed low-copper clips at 59-60¢/lb, down from 60-61¢/lb a week earlier. Spreads narrowed to 48-49¢/lb from 49-50¢/lb, but remain near their widest levels in more than 5 years. For small suppliers with uncommitted volumes of mill quality scrap, brokers filling old orders are the only active buyers. Painted siding prices also dropped, falling to 56-58¢/lb from 57-59¢/lb. Spreads narrowed slightly to 50-52¢/lb from 51-52¢/lb, but supply is abundant and few if any appointments are available for straight loads in 2018. Extrusion scrap prices were more resilient as some US consumers--although not many--are still in the market for spot market material. The Argus midwest transaction price closed at $1.0764/lb, down from $1.0968/lb a week earlier, mostly on lower LME aluminum prices. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 30 October (Argus) — Canada-based miner First Quantum boosted its copper output by 4pc in the third quarter from a year earlier and nudged up its output guidance to 595,000t for the full year. The global mining company's copper output rose to 151,241t in the quarter from 145,376t a year earlier. Sales rose by 4pc to 151,342t. Realized sales prices rose to $2.84/lb from $2.37/lb a year earlier. The company boosted its production guidance for the year to 595,000t from 590,000t in June. The increase in output reflected an 8pc gain to 64,000t at its Kansanshi mine and a 5pc gain to 56,000t at its Sentinel mine, both in Zambia. Overall cash costs for the company were $1.34/lb, up from $1.21/lb a year earlier. Sales revenues rose to $978mn in the latest quarter from $877mn a year earlier. The company swung to a profit of $61mn from a loss of $52mn a year earlier. The producer also owns or operates the Ravensthorpe zinc mine in Western Australia; the Guelb Moghrein copper mine in Mauritania; the Las Cruces zinc mine in Spain; the copper/zinc Pyhasalmi mine in Finland; and the Cayeli copper/zinc mine in Turkey. The company is awaiting clarification by Panama's supreme court regarding Law 9 and its effect on a mining concession contract entered into by a subsidiary of a company that is part of First Quantum's Cobre Panama project. The company is "confident of a resolution in the near-medium term" regarding the project, based on support for the concession contract from the Panama government, the mining chamber and other business associations in the country. The Cobre Panama project is over 80pc complete, with power station construction completed and ramp up progressing while the process plant and mine site are 74pc complete with commissioning activities continuing in this quarter. First Quantum has previously said it expected the Panama project to ramp up to 150,000t of copper next year and a further ramp up to 270,000-300,000t in 2020. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 30 October (Argus) — US export coking coal prices held steady in the past week, with underlying demand fundamentals firm but many market participants pausing to gauge market direction ahead of a major industry event in mid-November. The Argus weekly fob Hampton Roads assessment for low-volatile coking coal was unchanged today at $205/t. The weekly fob Hampton Roads assessment for high-volatile type A (HVA) material is flat at $213.50/t, while the high-volatile type B (HVB) assessment remains at $173/t. Underlying demand fundamentals are firm, but European buying activity has been limited in the past week with the bulk of 2018 requirements now covered, and those buyers who require extra cargoes opting to wait and see how the market develops. US producers are largely sold out of key brands for 2018, particularly in the HVA space. Cargoes of other specifications and blends can still be secured, assuming a workable price can be agreed on, according to several market participants. Some Europeans see US coking coal prices as overheated and likely to drop if infrastructure constraints ease. Some on the sell-side say seaborne fundamentals do underpin the price levels being targeted by US exporters, adding that buyers are unlikely to step forward while they consider prices to be peaking but cannot wait indefinitely. "Anyone who wants to take a December position will have to make a move soon," a seller said. Within Europe, attention remains focused on low German waterway levels which continue to disrupt the delivery of raw materials from ARA ports to certain mills. Some options - such as the use of rail or discharge of material at alternative ports - are being explored in order to get more material moving, a trader said. Rhine water levels at the key measuring point of Kaub have risen to 53cm at 13:00 local time today from 29cm a week ago, but are well below the 200cm threshold at which barges run into difficulty. US low-volatile coking coal remains a more attractive option than Australian material. Prices of the latter have risen by $7.80/t in the past week, with the Argus daily fob Australia assessment for premium hard low-volatile coking coal at $225/t today. Factoring in freight rates to Rotterdam, a Panamax cargo of US low-volatile coking is pricing at around $219/t cif ARA, as compared with a Capesize cargo of Australia low-volatile PHCC at around $240.20/t cif. South America Looking elsewhere, some Brazilian buyers have already begun discussions for 2019 US coking coal supply deals. More are expected to step forward soon, while others will be focusing their contract negotiations around the April-March fiscal calendar. The loss of Pinnacle as a key low-volatile supplier has created a gap in the Brazilian market that several US producers are keen to fill. Some market participants point to Coronado's Buchanan coal as a potential replacement owing to its similar specifications to Pinnacle coal, and because Buchanan was one of the US brands directly affected by China's imposition of tariffs on US coking coal earlier this year - meaning there would be material needing redirection from China to other markets. Meanwhile, a Colombian market participant today cited an overall ex-mine price range of 300,000-380,000/t pesos ($94.19-119.30/t), depending on the mine and grade. Transportation costs from mines in the Cucuta region to major ports range from Ps85,000-110,000/t while transportation costs from Boyaca/Cundinamarca to major ports are estimated in a Ps120,000-155,000/t range. Rising fob Australia indexes and robust demand - particularly growing Asian interest in Colombian coal - is encouraging exporters to push for premiums where possible. The Argus weekly fob Colombia assessment for mid-volatile coking coal is at $179/t - up by $4t from a week ago. A trader noted Colombian met coke being offered into Europe along with Polish, at a widening discount of more than 10pc to Chinese met coke, noting that the European met coke market is pricing at lower levels than China. The Argus fob north China assessment for 62 CSR met coke is at $376/t today. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Washington, 30 October (Argus) — Shipments of metals products and coal are rising at the North American shortline railroads operated by holding company Genesee and Wyoming. Volume at the company's North American railroads will rise about 5pc in the fourth quarter compared with a year earlier, fueled by strength in coal and metals demand, chief financial officer TJ Gallagher said today. That increase would follow a 9.4pc rise in third-quarter shipments. Volume rose in 12 of 14 commodity groups. Increased steel and pipe shipments drove metals traffic higher in the quarter. North American rail shipments of metals rose by 28.7pc compared with third quarter 2017. Revenue increased by 34pc to $34.9mn. Metals traffic this year has been boosted by a new steel mill in Oklahoma. Demand for steam coal shipments in the midwest and northeast US boosted increased volume by 16pc. Revenue at the business segment rose by 15pc to $23mn. The company added a new coal shipper this year, which added to volume. Genesee and Wyoming also benefited from a hot summer and low coal stockpiles, which increased demand, the company said. Gallagher estimated that deliveries of Powder River basin coal represented 50-60pc of the carrier's business with the remainder split between the Illinois basin and Northern Appalachia. Shipments of petroleum products benefited from demand for natural gas liquids such as LPG. Volume rose by 6pc, spurring an 11pc increase in revenue to $16mn. The company said growth will continue in the fourth quarter but at a slower pace, in part because of the effects of Hurricane Michael. The hurricane made landfall near Panama City, Florida, and moved across Georgia and the Carolinas. The hurricane damaged facilities owned by the 108-mile Bay Line Railroad in Panama City. It also blew thousands of trees across the company's lines in Florida and Georgia. The railroad is back in service but will continue to feel the effects of the storm because of damage to customers' operations. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 30 October (Argus) — Comex copper fell by 7.65¢/lb Tuesday as the US dollar index strengthened to its highest since June 2017 amid heightened concerns over weakening equities and a potential escalation of the US-China trade war. Comex's December contract settled at $2.664/lb on Tuesday, down from $2.7405/lb the prior day and at its lowest since 17 September. It has fallen for six consecutive days. The US dollar index rose by 0.3pc following the prior day's 0.2pc gain and is up in four of the last five sessions, reaching its strongest level since June 2017. A stronger dollar tends to weaken the price of red metal. President Donald Trump said in a television interview Monday that tariffs on another $267bn worth of Chinese imports were "waiting to go" should China and the US fail to reach a satisfactory settlement to their trade dispute. Trump and Chinese president Xi Jinping are both scheduled to attend the G-20 summit in Argentina on 30 November-1 December and are expected to meet to discuss the ongoing trade conflict between their two countries. The $267bn to which Trump referred represents the value of the remaining Chinese imports that the US has not imposed new tariffs on. The US has imposed tariffs on $250bn of Chinese goods this year and China has imposed tariffs on $110bn of US imports in return. US equities were modestly higher following sharp declines in recent days that have more than erased all of this year's gains. The S&P 500 was up by 0.3pc but has lost about 9.6pc of its value in October alone. European indices were mainly lower, with Germany's Dax off by 0.4pc, while Asian indices were mainly higher, with the main Shanghai index up by 1pc. Brazil's main index was up by 2.6pc following the presidential election victory over the weekend of pro-business candidate Jair Balsonaro. Markets are likely to be on edge in coming days ahead of midterm elections in the US next week which may see Trump lose his majority in one of two legislative houses. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Singapore, 30 October (Argus) — Asean hot-rolled coil (HRC) import prices slipped today as buyers anticipated a continued softening in offer levels. A deal for Chinese pipe-making grade HRC was done at $550/t cfr Vietnam late last week, with offers now around $550-552/t cfr with counter-bids at around $545/t cfr. Rising freight costs and oil prices could make deals more difficult to conclude. At the same time, Russian and Taiwanese re-rolling HRC trade was at $543/t cfr and $570/t cfr, respectively. Fob China prices were unmoved at $533/t but down by $31/t from the beginning of October. Steel mills were offering at around $545-550/t fob, although one seller was still higher at $555/t. Cut sheet was offered at $535/t fob, down by $5/t on the previous day. The workable level for SS400 HRC was around $530-535/t fob, an exporter said, but bids were scarce as buyers feared drops going forward. Shanghai HRC prices were unchanged at 4,140-4,150 yuan/t ($524-525/t), although there was an air of bearishness as trading firms looked to destock in anticipation of lower replacement prices going forward. Market stocks of HRC have been building during a slowdown in manufacturing activity. A mill in Tangshan started to invite tenders for HRC Q195L this week, with the price settled at Yn4,040/t, Yn10/t lower than expected. January HRC futures in Shanghai nudged 0.62pc lower to Yn3,844/t. Rebar and rod Rebar prices were unchanged at $543/t fob China on a theoretical weight basis, with no new offers. Producers were shifting from exports to the domestic market, where prices were stronger. Shanghai rebar prices were static at Yn4,700/t but activity was subdued with construction sites closed ahead of the forthcoming China International Import Expo conference. Rebar futures in Shanghai slipped by 0.45pc to Yn 4,172/t for the most liquid January contract. Argus assessed Chinese wire rod export prices at $570/t, down by $4/t, as a major mill in north China cut its offer by $5/t. Buyers were still unwilling to purchase despite the reduction as they were well stocked, a mill source said. Billet Billet prices in the Tangshan market rose by Yn20/t to Yn3,990/t ex-works, while trading firms were offering at Yn4,040-4,050/t ex-warehouse. Activity was quiet but producers remained bullish on short-term prospects. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 30 October (Argus) — Delivered to dock ferrous scrap prices in the Netherlands and Belgium edged up in the past week on a higher Turkish deep-sea import price and further depreciation of the euro against the US dollar. The Argus weekly assessment for ferrous scrap HMS 1/2 delivered to dock in Amsterdam-Rotterdam-Antwerp-Ghent (ARAG) rose by €5/t to €245-255/t. Most buyers in the Netherlands were confirmed to have increased their bids for HMS 1/2 to €250-255/t in the second half of last week or early this week, while several Belgian buyers lifted offers for HMS 1/2 to as high as €255/t. Some buyers in Belgium were heard to have kept prices unchanged on the week or have made smaller upward adjustments than their competitors. Bids from these buyers were confirmed at closer to €240/t this morning but scrap flows at these levels are expected to be extremely limited. The higher bids came after several continental European cargoes were sold to Turkish mills last week at higher prices compared to previous sales. One Netherlands exporter confirmed it sold a 30,000t scrap cargo to a Marmara mill with HMS 1/2 80:20 priced at $327/t cfr Marmara on 24 October. Another exporter in the Netherlands was heard to have sold a cargo to an Izmir mill with HMS 1/2 75:25 priced at $325/t on the 25 October. A Belgian cargo comprised of 20,000t HMS 1/2 75:25, a 12,500t of mix of HMS 1 and P&S and 2,500t of new cuttings was sold at an average price of $332/t on 25 October. "These higher priced Turkish deals encouraged some exporters that held a more negative outlook in the past two weeks back to the dockside market and drove prices up, as availability of scrap was already fairly tight," one sub-supplier said. A further depreciation of the euro against the US dollar in the past week allowed exporters to increase bids in an attempt to drive scrap flow. The euro mostly traded around €1:$1.136 this morning, down from €1:$1.145-148 on 23 October. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 30 October (Argus) — The US hot-rolled coil market was stable this week as cautious buyers remained largely on the sidelines in response to higher mill quotes. The Argus domestic HRC index nudged up by 25¢ to $839/st ex-works Midwest on four reported deals – all for small tonnages – and indications from buy- and sell-side sources. Service centers in need of tons to fill steady downstream orders booked small volumes at around $840/st, while a large-volume order was heard at $760/st. But overall order activity was limited on the week as buyers remain cautious over price direction, with recent increases gaining limited traction. A steelmaker said the market was "slowly" accepting price increases, but admitted that buyers were in no rush to book material. There could be another increase announcement in the next month to pull buyers off the sidelines and stimulate December order books ahead of the holiday, sources said. Mill lead times are moving out on the back of brisker order intake and larger orders booked in recent weeks. One mini-mill was telling customers it was booked out for November after operating on slimmer lead times of late, while another was also said to be more extended. "I am not getting calls from the mills looking for tons so they must be getting enough orders to keep them happy," a service center source said. Still, some service centers remain more concerned with de-stocking rather than building inventory given the lack of clarity. "Even though all the data [shows] two months' stock, it's like my competition is behaving like they have more on hand," a buyer said. Uncertainty over the future of tariffs on key flat-rolled suppliers also weighed on sentiment on the week. There was widespread chatter that the Section 232 tariff on Turkey would return to 25pc after the Trump administration doubled the rate to 50pc in August amid political tensions over an American pastor detained in Turkey. The administration signaled a willingness to lift the additional rate after Turkey released the pastor this month. European sources suggested that Turkish mills have stopped seeking new business in the region after several months of very competitive offers, possibly expecting renewed business with the US. Traders moving Turkish coil into the US have also signaled they will likely be back soon with competitive offers. Mexican material was being sold into Houston at around $750-760/st ddp today, and Turkey would also be attractive for US buyers, sources said. One buyer said the removal of tariffs on Canadian and Mexican material, as part of the revamped Nafta, could depress prices overnight. But this would depend largely on what the tariff was replaced by – for example, a 70pc quota based off the last three years' average imports could prove more detrimental to buyers than the current duty. "I'm working from the assumption the administration isn't going to do anything to help imports," one trader said. Hot-rolled import volume licensed for October rose by 85,095t to 155,752t through 24 October from the prior week. South Korea accounted for the largest share at 46,503t, followed by Canada at 44,567t. The Netherlands accounted for 15,466t, while 12,891t were licensed from Egypt and 11,264t from Mexico. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 30 October (Argus) — The Turkish ferrous scrap import price fell today on the back of a Baltic deal concluded yesterday. The Argus daily assessments for ferrous scrap HMS 1/2 80:20 cfr Turkey and HMS 1/2 75:25 fob Rotterdam both fell by $1.50/t today to $335/t and $303.10/t, respectively. One Baltic supplier confirmed it sold HMS 1/2 80:20 at $335/t and bonus at $345/t cfr to a Marmara mill for December shipment yesterday. The tonnage for this cargo was not confirmed but was heard at 25,000t HMS 1/2 80:20 and 5,000t bonus. Some suppliers were heard targeting prices closer to $340/t cfr Turkey today but many participants do not expect Turkish mills will accept further increases in scrap prices until they are able to raise rebar sales volumes and prices. Several Turkish mills were confirmed to have increased their offers for rebar in the export and domestic markets today to around $510/t fob and the equivalent of $520/t ex-works, respectively. But no large tonnage sales were heard done at these levels and participants suggested that mills are likely to accept $500/t fob on the export market. The rebar export-scrap import spread remained below the average estimated break-even spread of $170/t today. "But this does not mean that mills will cut production, as a cut in production will lead to an increase in per unit production cost. And if the cut in production was not sufficient to drive down scrap prices, they could see larger losses on rebar sales," one supplier said. Some market participants expect Turkish mills will only begin to consider production cuts when the loss in rebar sales is greater than $10-20/t. On the short-sea market, several participants indicated that there were no fresh bids today. But mills are expected to still have requirement for short-sea cargoes and could make new bids in the next two days. The Argus daily A3 cif Marmara and Russia-Ukraine A3 fob Black Sea assessments were both unchanged at $322.30/t and $288.50/t, respectively. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Riga, 30 October (Argus) — Russian ferrous scrap dockside prices were flat in the past week as some exporters dropped bids while others were sought to maintain steady inflows to allow for prompt shipments. Argus assessed the weekly northwest European Russian A3 grade dockside price at between 17,500–18,300 roubles/t delivered to St. Petersburg, unchanged on the week. The US dollar-denominated midpoint equivalent declined by $2.11/t to $271.99/t amid the rouble's 0.8pc depreciation against the US currency over the past week to $1: Rbs65.8129. Exporters that have no urgent orders to implement lowered their buying prices, following the downward trend in the Russian domestic market. Steelmakers in central European part of the country have steadily reduced their purchasing prices in recent weeks and the Argus weekly central Russia A3 grade scrap assessment settled at Rbs18,380/t ($279.28/t) fca on 25 October, down by Rbs160/t ($2.43/t) from a week earlier. But some support was provided to the St. Petersburg price by exporters that kept purchasing prices at the upper end of the assessment range in order to secure stable inflows against the backdrop of relatively tight scrap supply across Russia. The Argus weekly assessment for A3B grade construction scrap delivered to St. Petersburg settled at Rbs18,000–19,000/t, an average of Rbs200/t lower than a week earlier. The US dollar-denominated midpoint equivalent fell by $5.25/t to $281.10/t amid the weakening of the rouble. The drop was underpinned by lower demand for bonus material, market participants said. A rise in Turkish scrap prices over the past week saw the Argus HMS 1/2 80:20 assessment price at $335/t cfr Turkey today, up by $3.40/t on the week, did not broadly affect Russian exporters' dock prices prices because of muted trading activity from the region. But some support could be provided by a deal to Turkey done yesterday by a St. Petersburg supplier at $335/t cfr. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 30 October (Argus) — A summary of the most recent deep-sea and short-sea cfr Turkey ferrous scrap deals seen by Argus. Ferrous scrap deep-sea trades (average composition price, cfr Turkey) Date Volume, t Price, $ Shipment Buyer Seller Composition Confirmed Index relevant 29 Oct n/a 335 (80:20) December Marmara Baltics 80:20, bonus Y Y 26 Oct n/a 335 (80:20) n/a Iskenderun UK 80:20, bonus Y Y 26 Oct n/a 335 (80:20) first half Dec Iskenderun Baltics 80:20, shred, bonus Y Y 25 Oct n/a 325 (75:25) December Izmir Netherlands 75:25, shred, bonus/bush N Y 25 Oct 35,000 332 n/a Marmara Belgium 20k 75:25, 12.5k HMS1/P&S, 2.5k NC Y Y 24 Oct 30,000 327 (80:20) November Marmara Netherlands 26k 80:20, 4k bonus Y Y 24 Oct n/a 334 (80:20) sec half Nov Marmara USA 80:20, shred, bonus N Y 24 Oct 30,000 333 (80:20) December Marmara Baltics 25k 80:20, 5k bonus Y Y 23 Oct n/a 331 (80:20) sec half Nov Marmara USA 80:20, shred, bonus N Y Ferrous scrap short-sea trades (average composition price, cif Marmara) Date Volume, t Price, $ Shipment Buyer Seller Composition Confirmed Index relevant 25 Oct 5,000 n/a October Marmara Bulgaria 5k 80:20 Y Y 25 Oct 3,000 327 very prompt Samsun Russia 3k 90:10 Y Y 24 Oct 3,000 326 November Marmara Russia 3k 90:10 Y Y Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 30 October (Argus) — The European Commission has begun an investigation into the proposed joint venture between German steelmaker ThyssenKrupp and Tata Steel's European operations. The commission started the review because of concerns that the merger would lead to reduced competition in the specialised flat steel market, for products including galvanised steel, used in the automotive sector, tinplate for the packaging industry and grain oriented electrical steel used in engineering. Many of these buyers' finished products have to compete with imported goods in their domestic markets and globally, the commission said. The commission said it will make a decision on the joint venture by 19 March 2019. Tata and ThyssenKrupp did not submit commitments to address preliminary concerns, it said. Tata and ThyssenKrupp signed an initial agreement on the merger in September 2017 and a definitive one in July 2018 after more than two years of discussions. If the merger goes ahead, it will create the second-largest European steel company after ArcelorMittal. Luxembourg-based ArcelorMittal was subject to a commission probe over its acquisition of Italian steelmaker Ilva. The investigation began in November 2017 and took nearly six months to receive Brussels' approval , after the company agreed to sell off several of its European assets. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 30 October (Argus) — A major mill in Marmara lowered its domestic prices today following the Turkish lira's continued appreciation against the US dollar. The mill cut prices by around 40 lira/t ($7/t) to TL3,370/t ex-works including value-added tax (VAT) in the Biga region, and to TL3,410/t in Istanbul. The lira strengthened today to around TL5.52 versus the dollar, from TL5.62 at the end of 26 October. The dollar equivalent of the Marmara mill's offers is around $3/t higher than its asking prices last week, which some market participants attributed to rising scrap prices, adding that certain producers are pushing towards the equivalent of $520/t ex-works excluding VAT. An Izmir mill is offering at TL3,350/t ex-works. Domestic demand remains stagnant. "Local demand has been quiet for a long time, but projects are still going on. There are not many transactions, but some happen," an Iskenderun mill said. "Scrap is also very high at the moment, and I don't see it falling any time soon." Rising scrap prices have also prompted more mills to increase export offers. Three mills are confirmed to be offering at $510/t fob today, but certain producers would accept $500/t fob, according to market participants. A trader estimates the scrap-rebar spread at $165/t today, and both this trader and a producer said that if the gap continues to narrow Turkish mills will be forced to cut production. Two mills said they have not received any bids on the first day back after yesterday's public holiday, but an Iskenderun producer said it received bids below $500/t fob from buyers in the UK and Germany last week. European demand for imported rebar has waned further, with buyers deterred by the quotas rapidly filling up, market participants said. "There will be no demand anywhere until the US makes a decision on the import tariffs," a trader added. In the US coil market, there was an expectation that the tariffs on Turkey would revert to the original 25pc. A Marmara producer expects to conclude sales to Latin America by the end of next week, but customers had not indicated workable levels today. Workable levels heard to Israel today were around $505/t fob actual weight, and $485-490/t fob theoretical weight. That said, prices in southeast Asia, where Turkish mills can at present sell the largest cargoes, remain below these levels. The Argus assessment for cfr Asean rebar stands at $523/t today, with the latest tonnages sold out of Turkey to the region at $520/t cfr theoretical weight last week, although bids this week were heard at $510/t cfr. The Argus daily Turkish rebar assessment increased by $3.30/t to $500.40/t fob. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 30 October (Argus) — European copper scrap discounts were assessed unchanged this week, but Chinese buying interest continued to support prices. Argus assessed the #2 (Birch/Cliff) cash spread at 88-90pc of the LME copper price on 30 October, flat on the previous assessment. European refineries are well covered on current contracts but are eager to secure physical material periodically. Consumers are continuing to offer at the same levels as last week to eliminate risk and prevent traders exporting to China. China has been purchasing Birch/Cliff at 88-89pc of the LME copper price. It was also heard to be purchasing Millberry at 98pc. Millberry delivered Europe was assessed at 97-98pc of the LME copper price on 30 October, unchanged from the previous assessment. Smaller European consumers were purchasing at 99pc. In the brass alloy market, Argus assessed the copper spread for C260 alloy at 88-90pc, unchanged from the previous week. Three-month LME copper traded at $6,115/t on 30 October, down from $6,174/t a week earlier. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 30 October (Argus) — Spot copper premiums in Europe were assessed flat on the week amid minimal trading activity and a general tightness of warehouse stocks. The Argus premium for grade A copper cathode in-warehouse Rotterdam was assessed at $40-50/t on 30 October, unchanged from the previous week. Participants are currently focused on annual contract negotiations but no agreements have yet been concluded. The assessed spot premium for grade A copper cathode delivered southern Europe was flat at $70-80/t this week. LME global copper stocks were down by 7.2pc at 143,125t on 29 September compared with 154,225t a week earlier. European stocks fell by 18.7pc to 3,550t, with 3,925t delivered out of Liverpool, UK. Three-month LME copper traded at $6,115/t on 30 October, down from $6,174/t a week earlier. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 30 October (Argus) — Base metals traded on the LME fell on 30 October on fears that the trade dispute between the US and China will escalate further in the near term. Three-month LME copper was flat at $6,160/t with no trade in official rings, but was bid 0.7pc down at $6,114/t. LME on-warrant stocks dropped by 3,825t from 29 October to 62,525t, the new lowest level since 2005. President Donald Trump said in a television interview on 29 October that he has "267bn [of new tariffs] waiting to go" if the US cannot reach a satisfactory trade deal with China. Trump and Chinese president Xi Jinping are both scheduled to attend the G-20 summit in Argentina on 30 November-1 December and are expected to meet to discuss the ongoing trade conflict between their two countries. The $267bn to which Trump referred represents the value of the remaining Chinese imports that the US has not imposed new tariffs on. The US has imposed tariffs on $250bn of Chinese goods this year and China has imposed tariffs on $110bn of US imports in return. There were losses across all other base metals. Three-month aluminium shed 0.7pc from 29 October to $1,984/t and three-month nickel dropped 3.3pc to $11,755/t. Three-month lead moved down by 2pc to $1,958/t, three-month zinc fell 1.1pc to $2,622/t and three-month tin edged down by 0.9pc to $19,125/t. The standard aluminium alloy contract moved back by 3.9pc to $1,370/t and the North American aluminium alloy contract shed 0.7pc to $1,390/t. Three-month cobalt fell by 1.3pc to $59,250/t. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Singapore, 30 October (Argus) — Asean hot-rolled coil (HRC) import prices slipped today as buyers anticipated continued softening in offer levels. A deal for Chinese pipe-making grade HRC was done at $550/t cfr Vietnam late last week, with offers now around $550-552/t cfr with counterbids around $545/t cfr. Rising freight costs and oil prices could make deals more difficult to conclude. At the same time Russian and Taiwanese re-rolling trade HRC were at $543/t cfr and $570/t cfr respectively. Fob China prices were unmoved at $533/t, down $31/t from the beginning of October. Steel mills were offering around $545-550/t fob, although one seller was still higher at $555/t. Cut sheet was being offered at $535/t fob, down $5/t on the previous day. The workable level for SS400 HRC was around $530-535/t fob, an exporter said, but bids were scarce as buyers feared drops going forward. Shanghai HRC prices were unchanged at 4,140-4,150 yuan/t, although there was an air of bearishness as trading firms looked to destock in anticipation of lower replacement prices going forward. Market stocks of HRC have been building during a slowdown in manufacturing activity. A mill in Tangshan started to invite tenders for HRC Q195L this week, with the price settled at Yn4,040/t, Yn10/t lower than expected. Januar HRC futures in Shanghai nudged 0.62pc lower to Yn3,844/t. Rebar and rod Rebar prices were unchanged at $543/t fob China on a theoretical weight basis with no new offers. Producers were shifting away from exports to the domestic market where prices were stronger. Shanghai rebar prices were static at Yn4,700/t but activity was subdued with construction sites closed ahead of the forthcoming China International Import Expo conference. Rebar futures in Shanghai slipped by 0.45pc to Yn 4,172/t for the most liquid January contract. Chinese wire rod export prices slipped by $4/t to $570/t, according to Argus' assessment, as a major mill in north China cut its offer by $5/t. Buyers were still unwilling to purchase despite the reduction as they were well stocked, a mill source said. Billet Billet prices in the market indicator Tangshan market rose by Yn20/t to Yn3,990/t ex-works, while trading firms were offering at Yn4,040-4,050/t ex-warehouse. Activity was quiet but producers remained bullish on short-term prospects. Summary of market activity HRC-China: Offer for Chinese HRC at $545/t fob, January shipment, information from a north China steel mill. HRC-China: Offer for Chinese HRC at $550/t fob, January shipment, information from an east China mill. HRC-China: Offer for Chinese HRC at $550/t fob, January shipment, information from a north China mill. HRC-China: Offer for Chinese HRC at $555/t fob, January shipment, information from a north China mill. HRC-China: Offer for Chinese hot-rolled sheet at $545/t cfr Vietnam, December shipment, information from a Vietnamese trading firm. HRC-Asean: Deal last week for Chinese HRC sized with pipe-making grade at $550/t cfr Vietnam, December shipment, information from a Vietnamese trading firm. HRC-Asean: Offer this week for Chinese HRC sized with re-rolling grade at $550/t cfr Vietnam, January shipment, information from a Vietnamese trading firm. HRC-Asean: Offer this week for Chinese HRC sized with re-rolling grade at $552/t cfr Vietnam, January shipment, information from a Vietnamese buyer. HRC-Asean: Bid this week for Chinese HRC sized with re-rolling grade at $545/t cfr Vietnam, January shipment, information from a Vietnamese trading firm. HRC-Asean: Offer this week for Taiwanese HRC sized with re-rolling grade at $570/t cfr Vietnam, December shipment, information from a Vietnamese buyer. HRC-Asean: Offer this week for Russian HRC sized with re-rolling grade at $543/t cfr Vietnam, January shipment, information from a Vietnamese trading firm. Wire rod-China: Offer for Chinese wire rod at $570/t fob, December shipment and down by $5/t over last week, information from a north China mill. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Singapore, 30 October (Argus) — China's steel product inventories in 20 major markets increased by 0.8pc on the month as of 22 October because of lower offtake of flat products. China iron and steel association (Cisa) data shows total steel stocks were at 9.39mn t compared with 9.32mn t during the same time last month. Inventories of hot-rolled coil (HRC) with traders increased by 7.1pc on the month to 1.95mn t, cold-rolled coil stocks were higher by 3pc on the month at 1.87mn t and plate stocks were higher by 7.4pc at 1.1mn t. Stocks of construction steel products fell month on month, with rebar stocks lower by 2.7pc at 3.4mn t and wire rod stocks down by 8.2pc at 1.05mn t. Cisa's official data is in line with trends in third-party data reported on 25 October, which shows a build-up of HRC stocks and a sharp reduction in rebar stocks. Higher stocks are likely to pressure domestic HRC prices further, although rebar prices may also have limited upside at current high levels. Steel traders are not willing to stock up much rebar at current prices of over 4,600 yuan/t ($660) and will only do the minimum possible stocking up until prices fall to around Yn4,000/t, said an analyst report by Chengu-based brokerage firm Chuancai Securities. Large steel traders will negotiate rebar prices with mills for major winter stocking up from next month. Robust real estate demand has supported construction steel sales through the year, with expectations of continued strong demand for the rest of the year. The overall volume of construction projects increased significantly this year and several of these projects continue to be built, which will support steel demand until December, Chuancai said. Construction work in Beijing will continue without any restrictions next month, unlike last year when environmental restrictions were in place from late-October, a large Beijing-based real estate contractor told the securities firm. Steel and construction restrictions are much softer this year than the previous year as China seeks to boost economic output amid the US-China trade dispute. Tangshan city, China's largest steel producer, produced steel at normal rates in October with most mills likely to enforce restrictions only next month, the securities firm said, adding that total restrictions should lead to around a 30pc loss of pig iron output compared with a 50pc reduction last year. Chuancai also expects Tangshan mills to increase scrap use in the converter burden by around 5pc during the winter months, which will further reduce the impact of restrictions on crude steel output. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Singapore, 30 October (Argus) — China's steel sector profits fell by 9pc on the month in September as an inventory build-up in the latter half of the month pressured prices. Profits were at 39.34bn yuan ($5.64bn) in September compared with Yn43.3bn in August, according to calculations based on the national bureau of statistics (NBS) data. Cumulative January-September profits were higher by 71pc at Yn313.16bn. Revenues from steel business gained by 15.6pc during this period at Yn4.73 trillion. Third-party data in the last week of September showed strong inventory builds for the five major products tracked — rebar, wire rod, hot-rolled coil (HRC), plate and cold-rolled coil. Total inventory rose by around 422,000t at both mills and warehouses from the preceding week. Rebar warehouse stocks rose by less than 20,000t, while HRC stocks rose by nearly 60,000t at warehouses. The Argus -assessed price of domestic HRC, ex-Shanghai, the basic steel product processed further to manufacture cars, home appliances and machineries, fell by 3.2pc in September. The price of rebar, ex-Shanghai, which is used in construction, made a modest gain of 1.5pc. Steel mills profits have recovered in October largely because of a 4pc increase in rebar prices amid tighter stocks. Third-party data on 25 October showed rebar stocks in warehouses down by 339,000t on the week, while inventories at mills were lower by 59,900t. Rebar producers in Shandong reported profits at around Yn1,400/t, up by around Yn400/t from early-October. Tangshan rebar producers are making profits of Yn1,000-1,400/t. A HRC producer in Shanghai reported a profit of Yn1,000/t. Average steel mill profits in September were around Yn700-1,000/t. Billet producers in Tangshan are making a gross profit of around Yn800/t. A Hebei-based steel mill said their profits for wire rod was around Yn1,000/t, up by 100-200/t over last month because of an increase in construction steel prices. But sharp gains in iron ore and coking coal prices are pressuring mill margins, although mills are likely to continue using higher-quality raw materials to maintain peak productivity in the near term amid a rollout of winter steel output restrictions in several Chinese cities from next month. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Singapore, 30 October (Argus) — A summary of activity in the Asia-Pacific iron ore and steel markets so far today: Tenders: Nil Offers and bids on Corex: 20,000t PB L offer at 795 yuan/wmt at Qingdao port 20,000t PB F offer at Yn595/wmt at Lanshan port Offers and bids on Globalore: 170,000t IOCJ F with B/L date 17 October offer at $99/dmt 170,000t PBF with January delivery offer at Jan P62 +$3/dmt 50,000t PBL with 15-24 November laycan offer at Nov P62+$0.38/dmtu 50,000t PBL with 15-24 November laycan bid at Nov P62 +$0.32/dmtu 90,000t PBL with 16-27 November laycan offer at Nov P62+$0.40/dmtu Tangshan billet: Flat at Yn3,970/t in the morning PBF offers in portside market: Qingdao: Yn595/wmt (unchanged) Caofeidian: Yn605/wmt (unchanged) Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Perth, 30 October (Argus) — Australia-based nickel producer Western Areas increased its output of nickel in concentrate in the July-September quarter and has sent samples to customers from its Mill Recovery Enhancement Project (MREP). Nickel in concentrate output from its Forrestania project totalled 5,379t for the first quarter of its 2018-19 fiscal year ending 30 June. This was the highest in nine months, exceeding 5,368t in April-June and 4,827t in January-March. Guidance of 20,500-22,000t has been maintained for the full year. After sending MREP samples to customers, a bulk 20t consignment is being prepared for export as part of the company's strategy to grow its operations and production, all of which is currently centred around the Spotted Quoll and Flying Fox mines and Cosmic Boy concentrator. Western Areas last week announced that its board of directors has approved the development of the Odysseus project, which is expected to produce 13,000 t/yr of nickel in concentrate and 240 t/yr of cobalt in concentrate over a 10-year mine lifespan. Odysseus is expected to have a capital development cost of around A$300mn with average cash costs of A$2.65/lb (A$1.98/lb). First output is scheduled for 2022. Nickel prices remain volatile with geopolitical factors putting downwards pressure on prices despite nickel fundamentals being supported by stainless steel and battery material demand growth, said Western Areas that is Australia's second-largest nickel sulphide producer. The reduction of London Metals Exchange nickel stocks to under 220t demonstrated that demand is continuing to outstrip supply as nickel enters into a period of annual deficits after an oversupply phase, the company said. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 29 October (Argus) — Stronger production across most of the country lifted US weekly steel output in the latest week as capacity utilization hit 81pc. US mills produced 1.9mn st (1.7mn t) in the week ending 27 October, a 23,000st increase over the prior week, according to the American Iron and Steel Institute (AISI). Capacity utilization rose to 81pc from 80pc a week earlier, its highest weekly level since May 2012. Output in the latest week was up by 11pc from 1.7mn st the same prior-year period, when capacity utilization was at 73pc. Average weekly production in October hit its highest level of the year, marking the fourth month of rising weekly production. Gains in the south and Great Lakes regions helped offset a drop in the northeast to drive production up on the week. Output in the Great Lakes rose by 13,000st to 698,000st, while southern production rose to 697,000st from 687,000st in the prior week. US Steel's 3.8mn st/yr Great Lakes Works in Michigan recently resumed operations following a planned 50-day blast furnace outage, potentially accounting for some of the increase in the Great Lakes region in recent weeks. Midwest output was up by 5,000st to 202,000st. This offset a 5,000st drop in the northeast, which fell to 217,000st. Western production was unchanged at 84,000st. Year-to-date output is up by 5pc at 78mn st from the same period a year earlier. Capacity utilization is at 78pc on the year, up from 74pc. AISI's raw steel production tonnage is estimated and compiled with weekly raw tonnage production provided by 50pc of domestic producers, combined with monthly production data for the remainder. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 29 October (Argus) — Premiums on US special high-grade zinc strengthened as LME inventories continue their decline. Argus assessed US special high-grade zinc premiums at 8-9¢/lb Monday, marginally up from 8-8.50¢/lb the prior week, despite minimal spot business taking place. Dealers and consumers are mainly focused on negotiating premiums for 2019, with early discussions pointing to premiums at 9¢/lb amid forecasts for the supply deficit to persist. World demand for refined zinc will increase by 0.4pc to 13.74mn t in 2018 and up by 1.1pc to 13.88mn t in 2019, according to International Lead and Zinc Study Group (ILZSG) estimates. US apparent usage will increase by 2.1pc for 2018 and by 0.9pc for 2019, ILZSG said. The ILZSG also anticipates the global supply of refined zinc will be in a 322t deficit for 2018, and 72t for 2019. The three-month LME zinc price settled at $2,639/t, down by 1pc for the week despite the drop in inventory. Zinc remains the worst preforming base metal, down by 19.8pc for 2018. LME zinc stockpiles fell by 8.6pc for the week to 153,125t and have dropped for 17 consecutive days to the lowest since 2 March when stocks were at 131,775t. New Orleans led the charge lower on Monday with 1,675t marked to exit with Antwerp second at 225t. Shanghai Futures Exchange cash zinc settled at 3,215.20/t, down by 0.6pc from a week earlier as stockpiles dropped to 48,416t following two weeks of increases. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 29 October (Argus) — US and Canadian demand for aluminum rose by 2.5pc for the first eight months of 2018 compared with the same period in 2017 on higher extruded and flat rolled product shipments, according to the Virginia-based Aluminum Association. Total aluminum shipments by US and Canadian producers, plus imports, rose to 18.8bn lbs (8.54mn t) from a year earlier, according to preliminary estimates. Demand for semi-fabricated mill products specifically rose by 2.3pc to 13.6bn lbs through August. The increase was driven mostly by aluminum sheet and plate shipments, which were up by 3.1pc at 7.6bn lbs in the first eight months of the year, and extruded product shipments, which were up by 5.8pc at 4.1bn lbs. US and Canadian shipments of aluminum ingot rose by 3pc to 5.2bn lbs over the same period. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 29 October (Argus) — Comex copper edged down on Monday as a stronger dollar index and lower LME stockpiles counter-balanced each other. Comex's December contract settled at $2.7405/lb, down marginally from $2.741/lb the prior day. It has fallen in every session since 22 October when it closed at $2.785/lb. A strengthening US dollar index is weighing on metal prices but the decrease in LME and Comex inventories has provided a bit of a tailwind, minimizing price declines. Comex stocks were at 159,088t last Friday, falling the past eight days and every day but one for all of October. Last Friday's stock level was the lowest since 5 June 2017. The LME three-month copper price settled at $6,224/t, up by 1.5pc for the day and 0.7pc higher for the month of October. LME copper stockpiles dropped for a third straight day to 143,125t with New Orleans moving 1,225t followed by Liverpool at 925t and Singapore at 750t marked for an exit. LME stocks are off by 29pc for the month of October. Monday's stockpile settled at its lowest since 6 April 2016. Cancelled warrants, metal marked for delivery, are at 76,775t, or 53.64pc. The dropping inventories have also curtailed the increased downward movement of copper from concerns over slowing global growth and trade friction. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Shanghai, 29 October (Argus) — Chinese steel export prices fell today as exporters cut sheet and rebar prices, with pressures continuing to build on mills' domestic and export sales. The fob China hot-rolled coil (HRC) price fell by $7/t to $533/t. There was a deal for HRC SS400 at $535/t fob China, and a deal for HRC SS400 at $530/t fob, with further details confidential. China-origin hot-rolled sheet traded at $550/t cfr Vietnam, equivalent to $535-538/t fob after deducting $12-15/t for freight. The equivalent fob HRC price is $533-535/t, with the premium for sheet against coil narrowing to $2-3/t from $5/t. A major east China-based mill cut its HRC export offers by $15/t to $545/t fob this week as a result of heavy sales pressure domestically and abroad. The fob China rebar assessment fell by $3/t to $543/t on theoretical weight basis, as an east China-based mill reduced its export offer on sluggish export trade. The producer reduced its export offer of rebar by $10/t on the week to $575/t fob. This is well above buyers' target prices, with competing origins traded at $525/t cfr Singapore. Chinese wire rod export trade was quiet, with major mills delaying the release of new offers this week. An east China-based mill reduced its export offer by $5/t to $585/t fob. Cfr market The Asean rebar price rose by $3/t to $523/t on the back of deals concluded at $520-525/t cfr Singapore theoretical weight basis. A vessel of rebar from Qatar was sold to Singapore and Hong Kong last week at $520-525/t cfr Singapore theoretical weight basis and $525-530/t cfr Hong Kong actual weight basis. Another 5,000t of Turkish rebar traded at around $520/t cfr Singapore theoretical weight late last week. Most stockists in Singapore said their inventories remain sufficient and there is no pressure to restock. Ideal bid levels were heard as low as $510/t cfr. The Asean HRC price was unchanged as market participants wait for updated offers from China. Domestic market Shanghai rebar prices rose by 10 yuan/t to Yn4,700/t ($675/t) on tight supply. Rebar supply into Shanghai is limited because truck transportation is being reduced by a China International Import Expo conference, while a large rebar producer in Jiangsu province has been ordered to restrict output on 1 November-15 December, cutting supply by an estimated 160,000t. Local traders expect rebar prices to stay firm in the near term. Shanghai mainstream HRC prices dropped by Yn40/t to Yn4,140-4,150/t with trade volumes low. Mills and traders see mounting sales pressure because of slower downstream automotive demand, and expect flat steel prices to fall further. HRC prices in Tianjin were unchanged at Yn4,090/t in slow trade. Tangshan billet lost Yn20/t over the weekend to stand at Yn3,980/t ex-works, and fell by another Yn10/t to Yn3,970/t today in slow trade. January futures for rebar fell by 1.64pc to Yn4,150/t and by 2.76pc to Yn3,835/t for HRC. Scrap China's largest private-sector steelmaker Jiangsu Shagang has lifted its heavy melt scrap purchase price for the second time in a month, tracking recent strength in domestic rebar prices. Chinese's biggest ferrous scrap consumer will pay Yn2,780/t for heavy melt scrap from 27 October, up by Yn80/t. The latest rise comes after an increase of Yn80/t in the middle of the month. The price is for heavy melt No 3 grade scrap with a minimum thickness of 6mm delivered to Shagang's mill in Zhangjiagang, north of Shanghai. It includes a 16pc value-added tax. Shanghai spot prices for rebar have increased by Yn180/t to Yn4,700/t ex-warehouse for HRB400 grade rebar with 16-25mm diameter since the beginning of October. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 29 October (Argus) — Ferrous scrap prices in the Turkish deep-sea import market rose today on the back of two deals done on 26 October. The Argus daily assessments for ferrous scrap HMS 1/2 80:20 cfr Turkey and HMS 1/2 75:25 fob Rotterdam both increased by $3.40/t today to $336.50/t and $304.60/t, respectively. One Baltic supplier was confirmed to have sold HMS 1/2 80:20 at $335/t, shredded at $340/t and bonus at $345/t to an Iskenderun mill on 26 October, with the final volume of each grade to be decided closer to shipment. The cargo has a scheduled shipment period of first half of December. Another Iskenderun mill was confirmed to have bought a UK cargo with HMS 1/2 80:20 priced at $335/t and an option of up to 7,000t bonus on the same day. The shipment period was not confirmed but the mill was looking for a second half November cargo in the past week. Today is the first time since 31 July that the HMS 1/2 cfr Turkey assessment has moved above $335/t. And this increase further narrowed the spread between the rebar export and scrap import prices to $160.60/t today, well below the average spread of $170/t that market participants currently estimate is required for Turkish mills to break even on rebar sales. Many participants said in the past week that many Turkish mills will not be able to cope with a rebar export-scrap import spread below $170/t for a long period. But Turkish mills have so far failed to push down scrap import prices as they have continued to book second half of November and December shipments with no signals that they will implement further cuts to steel production. And exporters showed no interest in accepting bids below $335/t cfr Turkey given that their attempts to lower dockside purchase prices also failed in the past week. In Europe, disruptions to inland transportations, a sustainable Turkish scrap import price above $330/t and comparatively strong expectations for November domestic prices drove dockside prices in the Netherlands and Belgium up to as high as €255/t for HMS 1/2 material. Prices delivered to US east coast docks were largely flat in the second half of last week, with one exporter still trying to drive prices down by around $10/t in the New York area. But sub-suppliers across the US east coast exporting regions are likely to reject lower bids from exporters as US domestic prices in November are now expected to move up by $10-20/gt on average. The Argus daily short-sea assessments for A3 cif Marmara and A3 Russia-Ukraine fob Black Sea were both unchanged at $322.30/t and $288.50/t, respectively. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 29 October (Argus) — Iron ore stocks at Rotterdam's EMO terminal continued to increase in the past week, as low water levels on the Rhine affected deliveries to some German mills. Inventories of iron ore rose by 200,000t to 2.7mn t — up by 1.2mn t compared with two months ago. Stocks of coal at EMO edged down by 5.3pc on the week to 3.6mn t. Normally around 15pc, or 540,000t, would be coking coal, according to port authorities. Coking coal inventories at the EBS terminal in Rotterdam are also lower at 39,700t, compared with 40,600t a week earlier. EBS also holds 225,000t of thermal coal. Stocks at Ovet fell to 530,000t from 580,000t on 22 October. Port authorities indicate that coking coal comprises around 70pc of Ovet's coal stocks, equating to 371,000t at present. Stocks of coal at the Oba terminal in Amsterdam increased by 350,000t to 2.35mn t, all of which are thermal product. Rhine water levels at the key measuring point of Kaub had fallen to 30cm at 05:00 local time today, and had risen to 33cm at 13:00, according to monitoring service Elwis. The level at Duisburg-Ruhrort north of Cologne stood at 156cm at 05:00 and 155cm at 13:00. ARA coal stocks ARA coal stocks Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 29 October (Argus) — A summary of the most recent deep-sea and short-sea cfr Turkey ferrous scrap deals seen by Argus. Ferrous scrap deep-sea trades (average composition price, cfr Turkey) Date Volume, t Price, $ Shipment Buyer Seller Composition Confirmed Index relevant 26 Oct n/a 335 (80:20) n/a Iskenderun UK 80:20, bonus Y Y 26 Oct n/a 335 (80:20) first half Dec Iskenderun Baltics 80:20, shred, bonus Y Y 25 Oct n/a 325 (75:25) December Izmir Netherlands 75:25, shred, bonus/bush N Y 25 Oct 35,000 332 n/a Marmara Belgium 20k 75:25, 12.5k HMS1/P&S, 2.5k NC Y Y 24 Oct 30,000 327 (80:20) November Marmara Netherlands 26k 80:20, 4k bonus Y Y 24 Oct n/a 334 (80:20) sec half Nov Marmara USA 80:20, shred, bonus N Y 24 Oct 30,000 333 (80:20) December Marmara Baltics 25k 80:20, 5k bonus Y Y 23 Oct n/a 331 (80:20) sec half Nov Marmara USA 80:20, shred, bonus N Y 22 Oct 24,000 330 (80:20) beginning Dec Marmara Baltics 17.5k 80:20, 5k shred, 1.5k bonus N Y Ferrous scrap short-sea trades (average composition price, cif Marmara) Date Volume, t Price, $ Shipment Buyer Seller Composition Confirmed Index relevant 25 Oct 5,000 n/a October Marmara Bulgaria 5k 80:20 Y Y 25 Oct 3,000 327 very prompt Samsun Russia 3k 90:10 Y Y 24 Oct 3,000 326 November Marmara Russia 3k 90:10 Y Y Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 29 October (Argus) — Table detailing the latest EU steel quotas balance. EU steel quotas balance* t Product Quota % of quota filled Balance of quota left Pending customs clearing Non-alloy and other alloy hot-rolled sheet and strip 4,269,009 31.6 2,920,900 65,343 Non-alloy and other alloy cold-rolled sheet 1,318,865 26.3 972,068 26,640 Electrical sheet 178,704 42.7 102,400 1,613 Metallic coated sheet 2,115,054 36.2 1,349,604 21,399 Organic coated sheet 414,324 33.4 275,861 1,108 Tin mill products 367,470 29.2 260,236 3,093 Non-alloy and other alloy quatro plates 1,442,988 36.8 912,046 7,112 Stainless hot-rolled sheet and strip 193,049 30.8 133,522 523 Stainless cold-rolled sheet and strip 476,161 33.8 315,400 4,132 Non-alloy and other alloy merchant bar and light sections 728,270 45.2 399,027 6,925 Rebar 714,964 54.1 328,513 3,081 Stainless bar and light sections 82,156 49.4 41,550 1,092 Stainless wire rod 32,744 51.0 16,056 156 Non-alloy and other alloy wire rod 1,058,110 60.3 420,086 8,723 Angles, shapes and sections of iron or non-alloy steel 167,817 33.0 112,513 674 Sheet piling 24,854 57 10,751 0 Gas pipe 185,280 51.6 89,673 787 Hollow sections 387,343 55.7 171,467 2,658 Seamless stainless tube and pipe 22,818 44.6 12,650 44 Bearing tube and pipe 5,549 18.3 4,531 39 Large welded tube 258,133 16.0 216,785 876 Other welded pipe 296,274 44.2 165,319 1,786 Non-alloy wire 393,031 47.7 205,506 3,203 *as of 26 Oct 2018 — European Commission Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 29 October (Argus) — The special high-grade zinc spot premium was flat in Europe in the last week as participants continued to wait for the completion of 2019 annual supply contract negotiations for an indication of premium levels. Argus assessed the premium for special high-grade zinc at $110-120/t on 29 October, unchanged from the previous week. Premiums could be anything from $100-150/t at present, traders said, but with so little activity in the market it was difficult to specify the range in which they should fall. "Everybody has a different idea on how zinc should be priced, but no one is pricing it," a trader said. Business was subdued in the last week as consumers remained well-covered. The market is waiting until mid-November when annual contracts negotiations are more likely to be finalised. LME cancelled zinc warrants decreased by 10,000t in the last week to 52,500t on 29 October. On warrant stocks decreased to 100,625t over the same period, down by 4,325t from 104,950t. Cancelled warrants totalled 28,075t in Antwerp, Belgium, 23,925t in New Orleans, US, and 400t in Kaohsiung, Taiwan. Three-month LME zinc traded at $2,639/t on 29 October, down from $2,666/t a week earlier. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 29 October (Argus) — US rolling mill JW Aluminum will spend $8.4mn to upgrade equipment at its Goose Creek, South Carolina, facility for handling 84-inch coil to be produced by other additions set to come online later. JW expects the tension leveling and slitting equipment upgrades to be functional by the end of 2019, in time to handle wider coils from new melting, casting and rolling equipment scheduled to begin operations in 2020. JW said the new leveling and slitting line will be one of the widest in the industry. The company is also in the process of expanding rolling, slitting and annealing capabilities at its plants in Russellville, Arkansas; St Louis, Missouri; and Williamsport, Pennsylvania. The work is expected to cost $32.8mn, the company said in September. JW produces aluminum sheet and foil for use in the heat exchanger, packaging and transportation sectors. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 29 October (Argus) — Base metals traded on the LME were mixed today, mostly trading within a narrow band as concerns over the strength of the Chinese economy continued to weigh on global prices. The Shanghai Composite index closed 2.2pc lower today after China reported that industrial profits increased 4.1pc on the year, the fifth consecutive month that growth has slowed from the equivalent period in 2017. LME copper trading was limited and the fall in stocks halted after on-warrant availability dropped by 20,375t from 23 October to 66,350t on 26 October. Available stocks remained unchanged at 66,350t today, which meant that there was no increased tightness to offset the wider market weakness. Three-month copper settled at $6,160/t, 1.1pc down from 26 October. Three-month nickel fell the most today, dropping by 2.1pc from 26 October to $12,150/t. Three-month lead also moved down by 0.7pc to $1,998/t. Aluminium edged up today as stock cancellations continued to rise. LME cancellations increased to 324,675t today, up by 5,325t from 26 October. Three-month aluminium settled at $1,998/t today, up by 0.2pc from 26 October. Zinc was the other main upward mover on the LME today, with the three-month contract rising by 0.5pc from 26 October to $2,651/t. Three-month tin fell by 0.1pc from 26 October to $19,300/t today. The standard aluminium alloy contract moved up by 2.2pc to $1,425/t and the North American aluminium alloy contract fell by 1.1pc to $1,400/t. The three-month cobalt contract was flat at $60,000/t. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Shanghai, 29 October (Argus) — Chinese steel export prices fell today as exporters cut sheet and rebar prices, with pressures continuing to build on mills' domestic and export sales. The fob China hot-rolled coil (HRC) price fell by $7/t to $533/t. There was a deal for HRC SS400 at $535/t fob China, and a deal for HRC SS400 at $530/t fob, with further details confidential. China-origin hot-rolled sheet traded at $550/t cfr Vietnam, equivalent to $535-538/t fob after deducting $12-15/t for freight. The equivalent fob HRC price is $533-535/t, with the premiums for sheet over coil narrowed to $2-3/t from $5/t. A major east China mill cut its HRC export offers by $15/t to $545/t fob this week as a result of heavy sales pressures domestically and abroad. The fob China rebar assessment fell by $3/t to $543/t on theoretical weight basis, as an east China mill reduced its export offer on sluggish export trade. The producer reduced its export offer of rebar by $10/t on the week to $575/t fob. This is well above buyers' target prices, with competing origins traded at $525/t cfr Singapore. Chinese wire rod export trade was quiet, with major mills delayed on releasing new offers this week. An east China mill reduced its export offer by $5/t to $585/t fob. Cfr market The Asean rebar price rose by $3/t to $523/t on the back of deals luded at $520-525/t cfr Singapore theoretical weight basis. A vessel of rebar from Qatar sold to Singapore and Hong Kong last week, at $520-525/t cfr Singapore theoretical weight basis and $525-530/t cfr Hong Kong actual weight basis. Another 5,000t Turkish rebar traded at around $520/t cfr Singapore theoretical weight late last week. Most stockists in Singapore said their inventories remain sufficient and there is no pressure to restock. Ideal bid levels were heard as low as $510/t cfr. The Asean HRC price was unchanged as market participants wait for updated offers from China. Domestic market Shanghai rebar prices rose by 10 yuan/t to Yn4,700/t ($675/t) on tight supply. Rebar supply into Shanghai is limited because truck transportation is being reduced by a China International Import Expo conference, while a large rebar producer in Jiangsu province has been ordered to restrict output on 1 November-15 December, cutting supply by an estimated 160,000t. Local traders expect rebar prices to stay firm in the near term. Shanghai mainstream HRC prices dropped by Yn40/t to Yn4,140-4,150/t with trade volumes low. Mills and traders see mounting sales pressures because of slower downstream automotive demand, and expect flat steel prices to fall further. HRC prices in Tianjin were unchanged at Yn4,090/t in slow trade. Tangshan billet lost Yn20/t over the weekend to stand at Yn3,980/t ex-works, and fell by another Yn10/t to Yn3,970/t today in slow trade. January futures for rebar fell by 1.64pc to Yn4,150/t and for HRC fell by 2.76pc to Yn3,835/t. Scrap China's largest private-sector steelmaker Jiangsu Shagang has lifted its heavy melt scrap purchase price for the second time in a month, tracking recent strengthen in domestic rebar prices. Chinese's biggest ferrous scrap consumer will pay Yn2,780/t ($400/t) for heavy melt scrap from 27 October, up by Yn80/t ($12/t). The latest rise comes after an increase of Yn80/t ($11/t) in the middle of the month. The price is for heavy melt No. 3 grade scrap with a minimum thickness of 6mm delivered to Shagang's mill in Zhangjiagang, north of Shanghai. It includes a 16pc value-added tax. Shanghai spot prices for rebar have increased by Yn180/t to Yn4,700/t ex-warehouse for HRB400 grade rebar with 16-25mm diameter since the beginning of October. Summary of market activity heard by Argus HRC-China: Deal for Chinese HRC at $535/t fob, December shipment — information from a Vietnamese trader. HRC-China: Deal for Chinese hot-rolled sheet at $550/t cfr Vietnam, December shipment — information from a Vietnamese trader. HRC-China: Deal for Chinese HRC at $530/t fob, December shipment — information from a Chinese trader. HRC-China: Offer for Chinese HRC at $545/t fob, December shipment — information from an east China mill. Rebar-China: Offer for Chinese rebar at $575/t fob, December shipment and down by $10/t over last week — information from an east China mill. Wire rod-China: Offer for Chinese wire rod at $585/t fob, December shipment and down by $5/t over last week — information from an east China mill. Wire rod-China: Deal for Chinese high carbon wire rod at $600/t fob, December shipment — information from a north China mill. Rebar-Asean: Deal last week for rebar from Qatar at $525/t cfr Singapore theoretical weight, December-January shipment — information from a Singapore stockist. Rebar-Asean: Deal last week for rebar from Qatar at $530/t cfr Hong Kong actual weight, December-January shipment — information from a Singapore stockist. Rebar-Asean: Deal last week for 5,000t rebar from Turkey at $520/t cfr Singapore theoretical weight, December-January shipment — information from a Singapore stockist. Rebar-Asean: Bids this week for rebar from Turkey at $510/t cfr Singapore theoretical weight, December-January shipment — information from a Singapore stockist. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Riga, 29 October (Argus) — Ukraine's domestic steel shipments and imports dropped in September, dented by weaker consumption amid an economic slowdown, industrial data show. Ukraine's industrial output declined by 1.3pc last month compared with September 2017, the second slip this year after a 0.5pc drop in August. This followed rises of 2.9pc, 2.2pc and 2.5pc in July, June and May, respectively, statistics service Ukrstat data show. Growth in the country's industrial production slowed as a result to 1.8pc in January–September from 2.6pc in January–July. Production from processing industries, including steel consuming ones, fell the sharpest, down by 1.8pc on the year in September. Domestic steel consumption fell by around a fifth to just 425,000t last month, also down by 5.3pc from August, data from state-controlled metals association Ukrmetallurgprom show. Lower domestic consumption in September dented steel imports to Ukraine, and caused a deterioration in domestic and import shipments in the calendar year to 30 September ( see table ). But the share of imports in Ukrainian steel consumption increased to 29.2pc in January–September from 26.1pc a year earlier. The nine-month import total included 512,200t of long products — 47.5pc of the total — up by a third on a year earlier, and 532,400t of flat products — 49.4pc of the total — a fall of 4.5pc. Imports of semi-finished products reached 33,600t, nearly four times higher on the year. Ukrainian steel exports rose in September compared with August and were also up over January-September by 4.4pc on the year. Firmer steel products output supported exports, with production totalling 13.83mn t in the nine-month period, 3pc higher than a year earlier. Exports of semi-finished products reached 4.91mn t in January–September, up by 16pc on the year — 43.8pc of the total steel shipments from Ukraine. Flat products deliveries were 1.8pc higher at 3.91mn t, 34.8pc of the total. But exports of long products continued to decline — by 10pc year on year to 2.4mn t, which was 21.4pc of the total. The EU remained the key market for Ukrainian steel sales, taking 32.9pc of the exports, followed by north Africa with 17.4pc, and other European countries and Turkey with 13.5pc. The Middle East took 11.1pc. Ukraine's steel shipments t Sep Aug Sep 17 Jan-Sep Jan-Sep 17 Domestic 425,000 449,000 531,000 2,614,000 2,702,000 Imposts 129,700 162,600 125,000 1,078,200 952,500 Consumption 554,700 611,600 656,000 3,692,200 3,654,500 Exports 1,134,000 1,074,000 1,133,000 11,218,000 10,750,000 — Ukrmetallurgprom Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Perth, 29 October (Argus) — Melbourne-based New Century Resources has loaded the first consignment of 10,000t zinc concentrate at the port of Karumba from its restarted Century mine in Queensland for shipment to China. The shipment, which forms part of the commissioning grade concentrate from the project, is in line with product specifications with no penalties for lead and carbon and only "immaterial" penalties for silica, the company said. New Century Resources has resuscitated the Century zinc operation over the past two years after acquiring it from Chinese resources group MMG, which closed it in late 2015 because of low zinc prices and dwindling reserves. The loading of the first shipment has enabled the company to complete a second forward sale of 10,000t of zinc concentrate worth A$15.3mn ($10.8mn). Further sales bids have been received from existing offtake partners over and above long-term contracts for potential delivery to Europe and Asia. Interest has also been received from other zinc producers for the trialling of Century's concentrate to blend out impurities within concentrate from other operations, such as manganese and iron. Recent "market conjecture" had inaccurately represented Century's commissioning developments, suggesting saleability issues and shipping delays because of high lead content, the company said. "Lead content within zinc concentrate typically has little effect on the overall saleability of the product in comparison with other impurities such as manganese, iron, cadmium and silica," it said. Century is expected to produce 264,000 t/yr of zinc and 3mn oz/yr of silver, as well as by-product lead, at full production. It will be in the world's top 10 zinc producers and in the lowest 25pc of the cost curve. Output is expected to last 6.3 years, but exploration work is underway to increase mineral resources and reserves. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Mumbai, 29 October (Argus) — Demand for Indian iron ore pellet in the Chinese market has fallen sharply over the past week because of less stringent pelletising and sintering restrictions during the autumn-winter period. Pellet prices reached a multi-year high of $150-155/dry metric tonne (dmt) cfr China in August and September, boosted by stronger demand from Chinese mills looking to substitute higher-priced lump with pellet. Chinese buyers may also have been stocking up on pellet ahead of the autumn-winter restrictions, but these curbs now look to be lighter and less tightly enforced than a year earlier. An unconfirmed deal for 64pc basis Indian pellet with 2.5-3pc alumina was done at $140/dmt cfr China on 23 October. Indian pellet producer KIOCL shipped 50,000dmt of 63pc pellet at $139.5/dmt fob Mangalore port on 25 October to a Chinese buyer. A previous deal for a similar cargo on 12 September was done at $148.15/dmt fob Mangalore. KIOCL achieves a premium of $8-10/dmt to other Indian pellet grades because of its lower alumina content. Some Indian pellet producers have stepped up domestic sales, as profit margins have in some cases been higher than for exports. Jindal Steel & Power has offered domestic pellet cargoes loaded on wagons at 8,000 rupees/t ($109/t). Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Singapore, 29 October (Argus) — Key steel producing Chinese provinces have announced guidelines for implementing output cuts for polluting industries, including steel, but most said details on implementation will be decided by individual cities. Shandong, the third-largest steel producing province, said production restrictions will be enforced in seven cities of Jinan, Zibo, Jining, Dezhou, Liaocheng, Binzhou and Heze that include steel, foundries and coking industries. The period of production restrictions should ideally be 15 November-15 March but cities can opt for a shorter period of restrictions, although it should not be less than two months and include December and January. The extent of production restrictions will be based on local conditions, said a notice by the provincial government. Shandong last year enforced a 50pc reduction in blast furnace output across the province over 15 November-15 March. Beijing has rejected the "one size fits all" approach to pollution controls this year, giving autonomy to cities and provinces to decide on environmental restrictions. Restrictions are expected to be softer as China seeks to boost economic output to counter negative effects of current US-China trade frictions. Tianjin, a key steel producing city near Beijing, spelled out detailed guidelines on output cuts. Steel mills compliant with ultra-low emissions regulations will not have to cut output, mills classed as grade two in emissions intensity have to cut 15pc output, grade three mills have to cut 30pc of output and grade four mills have to reduce 40pc of output. The city, with a production capacity of around 20mn t/yr, also enforced a 50pc output cut in 2017. Tianjin, a major consumer of construction steel products, will not restrict building activity this winter, which will support north China's steel demand. The restrictions will be in force during 15 November-15 March. China's Fenwei plains, spanning the provinces of Shanxi, Henan and Shaanxi, will see 11 cities implement production restrictions in the autumn-winter season according to local conditions. This could include steel, coking and foundries but did not give any details on the extent and period of restrictions. China's two largest steel producing cities of Tangshan and Handan in Hebei province have already publicly disclosed production controls for each steel mill. Other cities in Hebei province, the country's largest steel producing province, have not made their production restrictions public. Jiangsu, the second-largest steel producing province, has asked cities to ensure several polluting industries including steel, reduce emissions by 30-50pc during November-March but left details to the cities. The new announcements on output restrictions are expected to be bullish for steel and iron ore prices. Any reduction in steel output amid stable demand will keep prices supported through the year. For iron ore, restrictions on iron ore sintering will increase demand for high-grade and premium mainstream iron ore fines, along with lump and pellet, while demand and prices of low-grade and non-mainstream ores will be pressured. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Singapore, 29 October (Argus) — A summary of activity in the Asia-Pacific iron ore and steel markets so far today: Tenders: BHP has a tender of 200,000t of Newman Blend L with a 16-25 December laycan, closing at 15:15 today Offers and bids on Corex: 10,000t IOCJ F offer at 755 yuan/wmt at Lanshan port Offers and bids on Globalore: 170,000t PBF with January delivery offer at January P62 +$3/dmt Tangshan billet: Flat at Yn3,980/t in the morning (down by Yn20/t during the weekend) PBF offers in portside market: Qingdao: Yn595/wmt (+10) Caofeidian: Yn605/wmt (+10) Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Beijing, 29 October (Argus) — The Chinese government has come up with a plan to accelerate infrastructure construction for electric vehicles (EVs). Chinese premier Li Keqiang at a state council meeting last week released a guidance plan for the EV industry, aimed at building sufficient charging poles to meet demand from at least 5mn EVs by 2020. The plan requires all parking spots at new residential buildings to have charging poles and at least 10pc of spots at public parking facilities to have charging poles. This is to ensure one charging pole in a public area for every 2,000 EVs. China is the world's largest EV producer and consumer. It produced 795,000 EVs last year and is on target to produce 1mn EVs in 2018. Beijing is aiming to double production of EVs to 2mn by 2020 to save energy and curb pollution. China produced only 8,200 EVs in 2011. China as of August has installed at least 662,000 charging poles across the country — 275,000 public poles and 387,000 private poles. The central government's guidance plan comes after many Chinese provinces introduced regional plans to boost the use of EVs. Shenzhen city in southern Guangdong province is on target to entirely switch to electric taxis from 1 January 2019. Shenzhen will install 18,000 new charging poles this year to further promote the use of EVs, bringing the total to 40,000. Hainan province requires all new official cars to be new electric vehicles (NEVs) and plans to install at least one charging pole every 50km on expressways. Hainan has also removed curbs on foreign investment in EVs as part of plans to set up the country's biggest free-trade zone (FTZ). The fast growth of EV production is expected to raise demand for metals used in batteries such as cobalt, nickel and lithium. China is likely to produce 12.1bn lithium-ion batteries in 2018, up by almost 23pc from last year, with rising EV production the biggest driver of the increase. More and more Chinese companies are investing in lithium-ion battery cathode material production, with domestic capacity reaching 150,000 t/yr. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Perth, 29 October (Argus) — Australia-based metals developer Independence Group is on track to achieve its 2018-19 production guidance despite a drop in July-September nickel output. The first quarter of the 2018-19 fiscal year ending 30 June saw it produce 6,854t of nickel in concentrate at its Nova mine in Western Australia (WA), along with 3,019t of copper and 245t of cobalt. This was lower than April-June quarter output of 7,344t of nickel, 3,230t of copper and 252t of cobalt. Cash costs rose to A$2.78/lb ($2/lb) of nickel from A$1.79/lb in the previous quarter, mainly because of lower base metal prices and higher fuel charges. Nickel output is forecast to trend higher in the remaining three quarters, allowing the Nova mine to meet guidance of 27,000-30,000t of nickel. A pre-feasibility study is under way into the production of nickel sulphate in an effort to link the company more directly with the growing electric vehicle and energy storage markets. This includes a plant trial to produce optimised low-sulphur concentrate. It is expected that a downstream production facility will increase the amount of payable metal, improve concentrate recoveries and earn a higher profit margin through nickel in sulphate form, Independence said. The company is building a commercial hybrid diesel/solar facility in an attempt to reduce power costs. This should be operational by September 2019. Independence also owns 30pc of the Tropicana gold mine in WA that produced 125,100oz of gold during July-September. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 26 October (Argus) — Seasonally tighter obsolete supply, stronger mill demand and a firmer Turkish scrap market are expected to drive US ferrous scrap prices up by $10-20/gt for November deliveries. A majority of buyers and sellers surveyed by Argus this week expect prices to rise by $10-20/gt across all grades. More bullish dealers suggested it will take more than $20/gt for mills to secure healthy November programs, while others participants see balanced supply and demand driving the market sideways, particularly for primes. Expectations of higher scrap prices are supported by seasonally-reduced supply, the strongest domestic steel production since 2014 and Turkish booking prices rising in response to stronger bulk and container demand from Asia. Dealers expect to offer less scrap on the month as flows slow in response to lower temperatures, shorter days, the Thanksgiving holiday and inventory positioning ahead of historically-stronger winter prices. Low dealer inventories are expected to only exacerbate the tightness in supply of grades like P&S. A slowdown in demolition activity in some regions has hit cut grade supply and auto wreckers are shipping fewer car bodies following several months of lower shreddables prices. Shredders in the Ohio Valley and on the east coast have boosted collection prices by $10/gt or more in recent weeks to motivate suppliers ahead of an expected increase in November. Reduced supply comes as mill demand is expected to tick back up after a flurry of outages in the midwest and south weighed on September and October buys. Demand for shredded and cut scrap is particularly strong in the Carolinas, midwest and Ohio Valley, where a consumer made calls this week to secure material on a to-be-determined (TBD) basis ahead of the buy week. Limited supply of secondary grades, particularly shredded and P&S, is expected to support primes. Still, a $50/gt spread between #1 busheling and shredded may limit gains in busheling and bundles prices as mills favor shredded and cuts as the value grades on a yielded basis. Pig iron is also a better value to mills at the current level of around $385/t cfr New Orleans. Some buyers suggested that October's $20/gt increase in busheling and bundles prices across the midwest may temper gains in November. But an uptick in flat-rolled orders in recent weeks after a 2-3 month buyers' strike is also expected to be supportive of prime demand. Order books average around four weeks, though some producers are booked through November. Indiana-based Steel Dynamics suggested yesterday that it was pretty well covered through the year. Overall steel production averaged its highest level since 2014 in October at 1.87mn st/week, with capacity utilization at 80pc, according to data from the American Iron and Steel Institute (AISI). A firming of the Turkish market following several weeks of uncertainty over price direction also boosted sentiment. "I wasn't as aggressive until I saw some shred move off the east coast in recent days," an Ohio Valley dealer said, suggesting a $20/gt increase in November. US sellers are expected to achieve as much as $340/t cfr Turkey on an HMS 1/2 (80:20) basis in negotiations next week after two US suppliers secured $331/t and $334/t earlier in the week. Prices rose amid a slight increase in ocean freight rates and limited supply available to Turkey with bulk and container demand from Asia strong. US sales prices to Turkey are up from the $320s/t traded for October shipment, though east coast volumes are not expected to be higher than recent months. Turkish mills initially stepped out of the market in an effort to drive scrap import prices down after finished steel prices fell by $20/t in recent weeks, narrowing metal spreads to near-break-even levels. But tighter scrap supply is expected to keep the market firm through the rest of the year. Still, market participants are less bullish on the east coast as two mills in the region are expected to have reduced buys from a month earlier. Overall, seasonal strength in prices would be in line with the historical trend which points to price strengthening in winter months. Ahead of winter, some suppliers tend to hold back supply if November and December price quotes do not match supply fundamentals. This could contribute to any increase in November prices. "You see moderate increases in scrap pricing [at the end of the year] as seasonal issues come up. And depending on weather, it will determine just how severe it is," Nucor chief executive John Ferriola said last week on the company's third-quarter earnings call. Harsher winter conditions and strong mill demand helped push shredded scrap up by 11pc, or $30/gt, between September 2017 and February 2018 ahead of the announcement of Section 232 tariffs on steel and aluminum in early-March. Most see similar strength going into 2019. "Barring any unusual events in the world, I don't see a major change, maybe in the neighborhood of $20-25/gt on the upside over the next several months," Ferriola said. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 26 October (Argus) — Chinese prices for zorba dropped this week on a weaker export market for the country's ADC12 secondary aluminum alloy and lower settlements for base metals on exchanges. Argus assessed cif China prices for 98-99pc metallic content zorba at a four-week low of 55-58¢/lb, down from 56-60¢/lb a week earlier. Argu s prices for ADC12 cif Japan were flat when assessed Thursday at a more than one-year low of $1,730-1,750/t, but after the assessment timestamp offers were heard as low as $1,710-1,730/t. Chinese secondaries are hesitant to place many new orders for raw materials until ADC12 prices strengthen, said one processor. LME aluminum prices and Comex copper prices are also a factor, both of which were lower week on week. Comex spot copper prices were off by approximately 2.5¢/lb at $2.744/lb as LME aluminum prices closed at a new 2018 low of $1,961/t, down from $2,025/t the prior Friday. European suppliers have been offering more material to China this week amid a slow domestic market, further pushing down prices China is bidding in the low-to-mid 50¢/lb for CCIC-cleared zorba in the US and in the high 50¢/lb for non-US origin material. Indian prices for 95/2 zorba were little changed at 45-47¢/lb, but Argus confirmed a sale of high-copper 94/7 zorba at 52¢/lb. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 26 October (Argus) — Brazil-based primary copper and copper products producer Paranapanema increased its sales volumes by 18pc from a year earlier, boosting its revenues by 55pc. Sales of primary copper and copper products rose to 51,800t, up from 43,800t a year earlier, the Bahia state-based company said today. Revenue rose to 1.48bn reals ($405mn), up by 55pc from a year earlier, driven by the gain in sales volumes. The company posted a loss of R19mn, largely due to the effects of exchange rate variation on its largely dollar-denominated debt, compared with a profit of R98mn a year earlier. Paranapanema accounts for 94pc of the copper produced in Brazil. It operates one smelter and three copper and copper alloy products plants. Revenues from primary copper sales rose by 55pc to R559mn from R362mn a year earlier. Revenues from copper products rose by 40pc to R669mn; of that sales of rods, wires and others rose by 55pc to R456mn and sales of bars/profiles/rolled/tubes and fittings were up by 16pc at R213mn. Sales of byproducts rose by 114pc to R251mn. Of total sales revenue, domestic market sales accounted for 34pc, down by 11pc points from the prior year, while export market accounted for 65pc, up by 7.4pc points. Its primary copper output fell by 2pc to 43,000t in the latest quarter, because of increased transit time of seaborne concentrate shipments from Chile due to inclement weather. Output of copper products rose by 7pc to 38,000t, largely on the upturn in domestic market demand for wires and rebars. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 26 October (Argus) — Comex copper declined Friday as global equities renewed their declines amid mounting concerns over slowing global growth and trade friction. Comex's December contract settled at $2.741/lb, down from $2.7545/lb the prior day. It has fallen from $2.778/lb last Friday, declining in four of the last five sessions. The Dow Jones Industrial Average pared early declines and was down by 0.4pc in early afternoon trade while the Nasdaw was down by 0.6pc following the prior day's rebound. Germany's Dax was off by 0.9pc and France's CAC 40 was 1.3pc lower. Japan's Nikkei 225 was off by 0.4pc, while Hong Kong's Heng Seng was off by 1.1pc. A strengthening US dollar index is weighing on metal prices while a weakening Chinese yuan is stoking fears of slowing demand in that country. China's third quarter growth slowed to 6.5pc, its slowest since 2009, the government reported earlier this week. The US economy grew at a 3.5pc rate in the third quarter, according to the Labor Department's initial estimate Friday. That's down from the 4.2pc rate estimated for the second quarter, partly due to a downturn in exports and deceleration in nonresidential fixed investment. Another major miner reported gains in red metal output. Global mining group Glencore produced 366,900t of copper in the third quarter, up by 21pc on the year, according to a company report today. January-September copper output totaled 1.06mn t, up by 12pc on the year. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 26 October (Argus) — Shipments of US primary smelter Century Aluminum were off by 1pc in the third quarter from a year earlier, weighed down by an equipment failure at the company's Sebree, Kentucky, smelter. Shipments fell to 182,926t in the latest quarter from 184,974t a year earlier, the company said late yesterday. Century's US shipments declined by 3pc to 103,103t compared with the year earlier period, as Iceland shipments rose by 1pc to 79,823t over the same period. Third quarter US sales soared by 20pc to $283mn from a year earlier, boosted by a significantly higher midwest premium and LME aluminum prices. Iceland sales were up by the same percentage at $194.5mn. In May, the company reported that an electrical failure at it its Sebree smelter would cause fewer than 18,000t of annual production to be lost over the remainder of 2018. Sebree is now back to pre-outage levels, which is expected to boost fourth quarter output, in addition to the ramping up of three lines at its Hawesville, Kentucky, smelter. The company is "about halfway through that process," chief executive Michael Bless said on an earnings call. Still, Century posted a third quarter loss of $20.3mn, compared with a $20.8mn profit a year earlier, as $9.2mn in inventory adjustments and $16.9mn Sebree-related expenses ate into profits. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Moscow, 26 October (Argus) — The Argus daily fob Black Sea billet assessment rose by $1.25/t today to $451.25/t, following sales by Russian steelmakers to southeast Asia. An integrated steelmaker concluded a deal at $530/t cfr Taiwan, market participants confirmed. This nets back to $455-460/t fob once freight rates and a high vanadium premium are excluded. A Russian mini-mill sold a billet cargo to an Asian customer at $495/t cfr, netting back to $445/t fob, according to market participants. The southeast Asian market is generally paying more for CIS billet than Middle East and north Africa (MENA) buyers at the moment, but higher freight rates may be giving a misleading impression of a rising market because they lift delivered prices, an Asian steelmaker said. Nevertheless, MENA demand is expected to pick up in the coming weeks as scrap prices keep gradually rising and because Turkish steelmakers have started to limit billet sales to support prices. Egyptian customers are expected to intensify CIS billet buying after having been inactive for the past month, market participants said. Some CIS material was offered to Egyptian customers at $480-485/t cfr, netting back to $460-465/t fob, according to market participants. That corresponds with general offer indications from CIS steelmakers, although they are ready to sell at $10/t lower, traders said. Bids for CIS billet are ranging widely. Some market participants said they have not received any firm bids, just unworkable indications at $420-425/t fob. But others said occasional bids can be found at $450/t fob in Africa. Some Egyptian customers are ready to book CIS material at $470/t cfr, netting back to $450-452/t fob, according to market participants. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 26 October (Argus) — Brazilian steelmaker Usiminas' net profit surged in July-September, as it recorded its highest quarterly sales volume since October-December 2015. Higher domestic sales helped lift overall sales by 9pc on the year to 1.1mn t, and by 13pc on the quarter. Export sales dropped by 14pc to 115,000t. The company moved to a net profit of 289.1mn reals ($78.8mn) from a net loss of R19.1mn in the previous quarter. Usiminas reported its highest growth in galvanised steel sales, which grew by 14pc to 301,000t. It expects to achieve higher prices from automotive customers in the fourth quarter, having achieved a 10pc increase with distributors in the third quarter, which it sees staying at the same level in the fourth quarter. Indicators such as industrial production suggest weak economic growth in Brazil, but data from the country's automotive association, Anfavea, show that automotive output rising by 11pc on the year in January-September to 2.2mn units. Usiminas' steel production increased in July-September, rising to 845,000t for crude steel and 1.07mn t for rolled steel, despite a gas tank explosion at its Ipatinga plant on 10 August, which disrupted operations for five days. The company's mining unit raised iron ore production to 1.5mn t, from 1.05mn t a year earlier, with sales up by 96pc on the year to 1.77mn t. Usiminas said earlier this year it is considering a full or partial sale of its mining business. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Singapore, 26 October (Argus) — Chinese domestic rebar prices rose sharply today after Jiangsu province published its autumn-winter plan for production restrictions. But the export market remained quiet, with producers lowering offers. Jiangsu has asked major cities in the province to reduce industrial emissions by 30-50pc, with an estimated pig iron production cut of 29.59mn t. The January contract for rebar moved up by 1.15pc to 4,228 yuan/t ($690/t) in response, while the same contract for hot-rolled coil (HRC) rose by 0.03pc to Yn3,927/t. Domestic market The Shanghai rebar price rose by Yn50/t to Yn4,690/t ex-warehouse on rising futures prices and tightened supply, with local inventories running low. Overall rebar trade remains sluggish, but most local traders are holding prices steady because of the Jiangsu output restrictions, because producers in the province are major suppliers to Shanghai. A producer in Shandong has positive expectations for the market. "Our rebar profit is Yn1,500/t for the time being, which is Yn500/t higher than late September. The November market is likely to remain bullish," the mill said. The Tangshan billet index stayed flat at Yn4,000/t ex-works and billet traders' offers remained stable at Yn4,050/t ex-warehouse. Shanghai mainstream hot-rolled coil (HRC) prices stabilised at Yn4,180/t ex-warhouse today amid low activity. Traders are cautious and sellers are avoiding price hikes in order to attract as many orders as possible. Fob market Falling offers continued to drag down the fob China HRC fob index, which fell by $1/t today to $540/t. New offers from traders for hot-rolled sheet fell to $535-540/t, netting back to $532-537/t for coil. A sale of Q345 hot-rolled plate (HRP) concluded at $585/t fob this week, but some traders thought the price was slightly higher and indicated that the workable level for Q345 plate is around $575/t fob. The Chinese government announced an increase in the tax rebate for galvanised coils to 16pc from 13pc, to encourage higher exports, while the rate for HRC and HRP will remain unchanged. More exporters may switch to GI coil business because of this. The fob China rebar assessment stayed flat at $546/t on theoretical weight basis, amid quiet trade. China's wire rod export market also remains muted, with no large orders this week. "We kept our offer unchanged at $575/t fob this week, while most buyers just keep watching. I heard no other mills made any deals either," a north China-based producer said. Cfr market The cfr Asean rebar assessment stayed flat at $520/t cfr, as buyers showed no interest in re-stocking this week. "Local rebar stockpiles are enough for November consumption at least, so I am afraid the next wave of procurement won't come in the near future," a local consumer said. Chinese offers to Vietnam were lower at $555-558/t cfr, but buyers showed no interest in bidding after restocking last week, and market liquidity slowed again. Mainstream offers for SAE1006 rerolling grade from Russia remained stable at $545/t cfr in Vietnam for January shipment, and at $535/t for small coils sized for pipe-making. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 26 October (Argus) — Freight rates for ferrous scrap shipments from the US to Turkey edged down in the past week on increased Supramax and Handysize vessel availability. Rates on the continental Europe-Turkey routes were stable. The Argus weekly assessments for 40,000t scrap cargoes from New York and Houston to Turkey both fell by $1/t to $26-27/t and $29-30/t, respectively. Charterers indicated that vessel availability in the US east coast (USEC) and the US Gulf coast (USGC) regions increased in the past week and resulted in a fall in time charter rates on the USGC-Europe route. Limited activity on the Pacific basin drove down rates on the US west coast (USWC)-Asia routes. Freight rates for 40,000t scrap cargoes from Los Angeles to South Korea were assessed 50¢/t down on the week at $26.50-27.50/t. The Argus weekly freight assessment for 40,000t scrap cargoes from Amsterdam-Rotterdam-Antwerp (ARA) to Turkey was unchanged at $20-21/t. One Baltic scrap supplier was on the market for a vessel to carry a 26,000-32,000t cargo with a scheduled loading period of 17-20 November from a Baltic port to Samsun. Offers were heard at mid $20s/t for 26,000t. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 26 October (Argus) — A summary of the most recent deep-sea and short-sea cfr Turkey ferrous scrap deals seen by Argus. Ferrous scrap deep-sea trades (average composition price, cfr Turkey) Date Volume, t Price, $ Shipment Buyer Seller Composition Confirmed Index relevant 25 Oct n/a 325 (75:25) December Izmir Netherlands 75:25, shred, bonus/bush N Y 25 Oct 35,000 332 n/a Marmara Belgium 20k 75:25, 12.5k HMS1/P&S, 2.5k NC Y Y 24 Oct 30,000 327 (80:20) November Marmara Netherlands 26k 80:20, 4k bonus Y Y 24 Oct n/a 334 (80:20) sec half Nov Marmara USA 80:20, shred, bonus N Y 24 Oct 30,000 333 (80:20) December Marmara Baltics 25k 80:20, 5k bonus Y Y 23 Oct n/a 331 (80:20) sec half Nov Marmara USA 80:20, shred, bonus N Y 22 Oct 24,000 330 (80:20) beginning Dec Marmara Baltics 17.5k 80:20, 5k shred, 1.5k bonus N Y Ferrous scrap short-sea trades (average composition price, cif Marmara) Date Volume, t Price, $ Shipment Buyer Seller Composition Confirmed Index relevant 25 Oct 5,000 n/a October Marmara Bulgaria 5k 80:20 Y Y 25 Oct 3,000 327 very prompt Samsun Russia 3k 90:10 Y Y 24 Oct 3,000 326 November Marmara Russia 3k 90:10 Y Y Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 26 October (Argus) — The Turkish scrap import price was unchanged today as there was no confirmation of any bid in the market, and only two offers were heard or confirmed. The Argus daily HMS 1/2 80:20 cfr Turkey and HMS 1/2 75:25 fob Rotterdam steel scrap assessments both remained unchanged at $333.10/t and $301.20/t. No US offer was heard on the market today and it is highly likely that any Turkish mill set to purchase second half November shipment will have to pay higher than today's levels. There is some expectation that an Iskenderun mill will pay above $335/t cfr Turkey to a US exporter for second half November shipment next week. One US exporter confirmed it was not able to offer to Turkey today. One US exporter is still attempting to push down dockside collection prices in the New York area by $10/t to bring prices more in line with decreases implemented in New England. But suppliers are rejecting the lower bids amid strong demand from US domestic consumers. A Baltic supplier was confirmed to have yesterday offered 33,000-35,000t of HMS 1/2 95:5 at $345/t cfr Turkey. A combination of disruptions to domestic deliveries, a weaker euro against the US dollar, and the increase in the Turkish scrap import price causing an upturn in collection in the past four days, pushed dockside purchasing prices up to a €250-255/t delivered to dock range for HMS 1/2 material in the Amsterdam region. If the $335-340/t cfr Turkey price range is realised, it is likely to push CIS billet offers up. CIS billet suppliers will not hold off increasing prices for the benefit of Turkish buyers as they have shown throughout 2018 that they do not need Turkish demand. This could remove Turkish mills' opportunity to purchase CIS billet next week and further squeeze Turkish rebar production margins, increasing the pressure on steelmakers to cut output. In the short-sea markets, a Romanian supplier was confirmed to have sold 3,500t of HMS 1/2 80:20 earlier this week to an Izmir mill on 23 October. A Rostov supplier was confirmed to offer A3 material at $332/t cif Marmara this morning. The Argus daily A3 cif Marmara and A3 Russia-Ukraine fob Black Sea steel scrap assessments were both unchanged at $322.30/t and $288.50/t. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 26 October (Argus) — Turkish export rebar prices were unchanged today as market participants confirmed that the past two weeks of sales have been extremely weak compared to the first half of October. Turkish mills attempted to implement another domestic rebar price increase this morning in response to the increasing scrap import price, despite the lira strengthening against the US dollar since yesterday morning. The increased offers were met by extremely weak demand. Mills are now attempting to implement strategies in overseas markets to reinvigorate demand for Turkish semi-finished and finished product. The Argus daily fob Turkey steel rebar assessment was unchanged at $497.10/t fob Turkey on actual weight basis today. No overseas region showed any considerable demand for rebar this week. Southeast Asian winter re-stocking may occur at some point but mills cannot ascertain to what extent this may take place. Mills do not now expect any improvement in Turkish domestic demand for the rest of the year, while buyers in Europe and the Middle East are expected to maintain their conservative approach towards purchasing. Some small tonnage business is still expected to be concluded with northwest European importers next week. This makes southeast Asia the only possible destination where Turkish mills can sell large tonnages and possibly upwardly lift their rebar prices. But the supply from other global regions may be sufficient for southeast Asian importers to prevent any upward price movement, so Turkish mills appear to be taking other strategies to attract demand from that region. One strategy is to test Southeast Asian demand for Turkish billet. If scrap moves above $335/t cfr Turkey next week, which is a strong likelihood, CIS billet export offers are likely to increase from the $460-470/t fob mark observed this week. Turkish buyers are highly unlikely to purchase higher than this level but traders have received strong indications that Egyptian buyers will be heavily active next week. Some Turkish mills have held back billet availability from the export markets as a result. These mills expect that GCC and CIS billet exporters cannot meet anywhere near the overall demand from south-east Asia. More CIS and GCC billet deals were confirmed with southeast Asian importers this week but Turkish mills expect the supply to dry up from these regions. A rise in freight rates in the Black Sea market is also starting to curb southeast Asian demand for CIS billet. Turkish steelmakers aim to then fill the gap in southeast Asian demand for billet at new higher prices and increase their scrap-billet margin. Any billet increase could then subsequently lend support to rebar prices. In the domestic market, a Marmara mill was confirmed to maintain offers at TL3,410/t and TL3,450/t ex-works in the Biga and Istanbul regions, respectively. These prices come to the equivalent of $512.20/t and $518.30/t ex-works excluding VAT. Both levels are up around $6/t from yesterday's offers. Payas stockists', Izmir stockists' and Karabuk stockists' bids were confirmed at TL3,350/t and TL3,370/t ex-works including VAT. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 26 October (Argus) — European tense prices fell into line with taint/tabor prices this week, as there remained no need for European smelters to purchase material. Argus assessed tense 2pc scrap at €950-1,000/t on 26 October, down from €1,000-1,050/t in the previous assessment on 19 October. This was in line with taint/tabor 2pc, which was assessed unchanged on the week. Secondary smelters are finding resistance from sellers when bidding at these levels. Scrap traders are looking to build stocks of scrap grades which do not oxidise quickly, including tense and taint/tabor, but are continuing to sell scrap which do oxidise – primarily mixed 5pc turnings. Scrap purchasing was low across European smelters this week, with minimal volumes booked. An eastern European smelter has not published price lists for two weeks and remains well-stocked with scrap. An Italian smelter was still purchasing taint/tabor this week, which could be contributing to price support for that grade. "Taint/tabor should really be at €900/t, but is holding up," an alloy producer said. Although smelters are sporadically purchasing small volumes of scrap, inflows of scrap could fall at these prices, a scrap trader said. And European scrap exporters are maintaining business by sending material to India. There were signs of support for mixed 5pc aluminium turnings this week, with sales taking place at €820-850/t for delivery to Italy. But levels as low as €740/t were heard for delivery to Germany. The price for aluminium alloy 226 was unchanged at €1,390-1,420/t in the latest assessment on 25 October. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 26 October (Argus) — Steelmakers in Saudi Arabia have lowered their rebar offers this week to accelerate sales in the domestic and seaborne markets, which could pressure the prices of other producers in the Gulf Co-operation Council (GCC) region. One of the largest Saudi steelmakers cut its domestic rebar offers by around 100 Saudi riyals/t ($26/t) to around SR1,970/t ex-works, or around $535-540/t delivered to customer. Export offers have also slipped, with one Saudi mill offering 20,000t of rebar to Lebanon last week at $540/t fob Jeddah. Another producer's latest offer for 40,000t stood at $538-540/t fob. Saudi rebar offers to Lebanon have dropped further, to around $520-525/t fob this week for a 30,000t rebar cargo, traders said. Another Saudi producer offered rebar to Egypt at $520/t fob, and market participants in Egypt expect that offers could slide further in the coming days, thanks to muted Saudi demand. The UAE's largest steelmaker Emirates Steel previously announced its domestic rebar price at 2,016/t UAE dirhams ($549/t) ex-works for November, but large buyers can achieve discounts on top of this offer range. Rebar offers from stockists to consumers in the UAE are at around Dh2,050/t delivered to customer basis, while Qatar Steel's UAE plant is offering Dh2,000/t, traders said. Meanwhile, two Omani mills were offering rebar to the UAE this week at around Dh1,930/t cfr Dubai for 60-day delivery. But there was not much interest to book imported material in the UAE market, despite the competitive offer. Domestic rebar prices in Oman were around $512/t ex-works this week, traders said. A 10,000t cargo of Qatari rebar was sold last week at $525/t cfr Singapore on theoretical weight basis, for December shipment. Bids from Asian buyers have fallen to around $510-515/t cfr Singapore on theoretical weight basis this week. GCC-based steelmakers expect the import duty on rebar and wire rod to soon be raised to 10pc from 5pc, although no official announcement has yet been made. But market participants do not expect a duty increase to have a significant impact on regional prices because imports from non-GCC countries have already slowed significantly in the past two years. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 26 October (Argus) — TimkenSteel expects seasonally lower fourth-quarter shipments after swinging to a profit in the third quarter on stronger demand from the energy and industrials sectors. The Ohio-based alloy steelmaker expects its fourth-quarter volume to be in line with the same prior-year period shipments of 286,000st. The company anticipates steady metal margins from the third quarter. Timken forecasted little change in shipment volumes even as prior-year shipments were impacted by annual maintenance outages that this year were incurred in the third quarter. Stronger demand from the energy and industrial sectors helped drive third-quarter shipments up to 295,500st from 290,000st in the same period a year earlier, while a more favorable product mix helped lift the company's overall average selling price. Shipments to industrial customers rose to 119,900st at $1,039/st from 106,200st at $918/st, while shipments to mobile end-market customers increased to 103,600st at $987/st from 100,800st at $996/st. Energy segment volumes ticked up to 40,400st at $1,297/st from 26,700st at $1,172/st, while shipments of other products such as billet fell to 31,600st at $747/st from 56,200st at $569/st. But the maintenance outages incurred in the quarter pushed melt utilization down to 62pc from 74pc. The annual outages were taken in the fourth quarter of the prior year. Stronger shipments at higher prices helped the company swing to a profit of $1mn on sales of $410mn from a loss of $6mn on sales of $339mn in the prior-year period. Higher surcharge revenue was also supportive of sales, rising by 38pc to $107mn as a result of higher volumes and a rise in the #1 busheling scrap index. Timken booked a profit of $8mn on sales of $1.2bn through the first nine months of the year, up from a loss of $10mn on sales of $988mn in the same period a year earlier. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 26 October (Argus) — French mining group Eramet's refined nickel production was lower in the third quarter because of protests that caused a temporary shutdown in August at its Kuoaoua nickel ore mining centre in New Caledonia. Eramet's output of ferro-nickel and high-purity nickel fell by 4pc on the year to 14,100t in the third quarter. Sales were also down by 4pc, to 13,200t over the period. A group of protesters blockaded the Kuoaoua mining centre in New Caledonia in early August. The centre produces 20pc of the ore required for refined ferro-nickel production at the Doniambo smelter in the same location. Eramet's subsidiary Societe Le Nickel (SLN) had to shut down operations at the Kuoaoua mining centre and only resumed production on 25 October. But Eramet's lower-grade nickel ore exports increased, up by 64pc on the year to 411,000t in July-September. The firm's Tiebaghi mine in New Caledonia stopped for a few days in early October amid disruption linked to a self-determination vote in New Caledonia due on 4 November. Start-up at the Sandouville nickel refinery in France is progressing slowly, with a current production capacity rate of 50pc. The majority of Eramet's refined production is ferro-nickel, which is mainly used in stainless steel. Ferro-nickel sales made up 96pc of the firm's refined nickel sales in January-September. Three-month LME nickel traded at $12,220/t on 25 October, down from $12,250/t a week earlier. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Singapore, 26 October (Argus) — Chinese domestic rebar prices rose sharply today after Jiangsu province published its autumn-winter plan for production restrictions. The export market remained quiet with producers' lower offers Jiangsu has asked major cities within the province to reduce industrial emissions by 30-50pc, with an estimated total pig iron production cut of 29.59mn t. The futures market responded with the January contract for rebar moving up by 1.15pc to 4,228 yuan/t, and for hot-rolled coil (HRC) up by 0.03pc to Yn3,927/t. Domestic market The Shanghai rebar price rose by Yn50/t to Yn4,690/t ex-warehouse on rising futures, and tightened supply with local inventories running low. Rebar trade as a whole remains sluggish, but most local traders are holding their prices steady because of the Jiangsu production restrictions, as producers there are major rebar suppliers to Shanghai. A rebar producer in Shandong also holds active expectation towards the market. "Our rebar profit is Yn1,500/t for the time being, which is Yn500/t higher than late September. The November market is likely to remain bullish," the mill said. The Tangshan billet index stayed flat at Yn4,000/t ex-works and billet traders' offers remained stable at Yn4,050/t ex-warehouse. Shanghai mainstream HRC prices stabilised at Yn4,180/t ex-warhouse today amid low activity. Traders are cautious at present and sellers are avoiding price hikes in order to attract as many orders as possible. Fob market Falling offers continued to drag down the fob China HRC fob index, by $1/t today to $540/t. New offers from traders for hot-rolled sheet went down to $535-540/t fob, equivalent to $532-537/t fob for coils, deducting $3/t premium of sheet over coils currently. A sale of Q345 hot-rolled plate (HRP) was concluded at $585/t fob this week, but some traders thought the price was slightly higher and indicated that the workable level for Q345 plate would be around $575/t fob at present. The Chinese government announced an increase to the tax rebate for galvanised coils to 16pc from 13pc to encourage higher exports, while the rate for HRC and HRP will remain unchanged. More exporters may switch to GI coil business because of this. The fob China rebar assessment stayed flat at $546/t on theoretical weight basis, amid quiet trade. China's wire rod export market also remains muted, with no large orders heard this week. "We kept our offer unchanged at $575/t fob this week, while most buyers just keep watching. I heard no other mills made any deals either," a north China producer said. Cfr market The cfr Asean rebar assessment stayed flat at $520/t cfr, as buyers showed no interest in re-stocking this week. "Local rebar stockpile is enough for the consumption in November at least, so I am afraid the next wave of procurement won't come in the near future," a local consumer said. Chinese offers to Vietnam were lower at $555-558cfr, but buyers showed no interest in bidding since they restocked last week, and market liquidity slowed again. Mainstream offers for SAE1006 rerolling grade from Russia remained stable at $545/t cfr in Vietnam for January shipment and $535/t for small coils sized for pipe-making. Summary of market activity heard by Argus HRC-China: Offer for Chinese hot-rolled sheet at $540/t fob, December shipment — information from a north China mill. HRC-China: Offer for Chinese hot-rolled sheet at $550/t cfr Vietnam, December shipment — information from a Vietnamese trader. HRC-Asean: Offer for HRC SAE1006 rerolling grade big coil from Russia origin at $545/t cfr Vietnam, January shipment — information from a Vietnamese buyer. HRC-Asean: Offer for HRC SAE1006 rerolling grade small coil from Russia origin at $535/t cfr Vietnam, January shipment — information from a Vietnamese buyer. HRC-Asean: Offer for HRC SAE1006 rerolling grade from China origin at $555-558/t cfr Vietnam, December shipment — information from a Vietnamese buyer. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 26 October (Argus) — US flat-rolled producer AK Steel expects strong distributor demand to offset a seasonal dip in automotive shipments and keep fourth-quarter volumes in line with the third quarter. "We expect market conditions to remain positive, which should be reflected in selling prices and support continued strong performance in the fourth quarter and 2019 fiscal year," AK Steel chief executive Roger Newport said in the company's third quarter earnings release. Still, the shift away from automotive buyers in the normally seasonally weaker quarter is expected to drive selling prices down by 2-3pc from a third quarter average of $1,114/st. The Ohio-based steelmaker shipped 1.42mn st of flat-rolled steel at $1,114/st in the third quarter, up from 1.39mn st at $1,021/st in the same period a year earlier. Lower coated steel shipments were offset by increases across its other sheet products. Shipments of coated steels, the company's largest product group at 50pc of shipments, fell to 720,000st from 726,800st in the prior year. Cold-rolled shipments rose to 264,300st from 244,100st, while shipments of stainless and electrical steels increased to 206,600st from 197,100st. Hot-rolled shipments rose to 192,400st from 164,900st. The $93/st rise in selling prices helped boost profit up to $85mn on sales of $1.7bn in the fourth quarter from profit of $39mn on sales of $1.5bn in the prior-year period. Third-quarter results were the strongest in 10 years, the company said. But higher costs pushed profit down through the first nine months of the year from a year earlier even as selling prices ticked up by $65/st across largely unchanged shipments. Profit through September fell to $202mn on sales of $5.1bn from $232mn on sales of $4.6bn in the same prior-year period. Shipments were little changed at 4.3mn st as selling prices rose $1,087/st from $1,022/st. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Houston, 26 October (Argus) — Base metal prices on London-based metals exchange the LME were mixed today as a renewed fall in global stock markets offset yesterday's rebound on Wall Street. Germany's DAX dropped by 1.6pc in morning trading, while France's CAC lost 2pc and the UK FTSE shed 1pc. The fall followed earlier losses in Asian markets as concerns over the global economy and weaker-than-expected results from tech giants Amazon and Alphabet dented the momentum briefly generated by yesterday's rise in US stock markets. The LME three-month copper price shrugged off the equities headwind to rise by 0.8pc to $6,226/t, supported by a continuing tightening of supply. Copper on-warrant stocks fell by 6,275t from yesterday to 66,350t, again approaching a 13-year low. Cancelled warrants increased to 80,000t today, up by 3,050t from yesterday. Global mining group Glencore produced 366,900t of copper in the third quarter, up by 21pc on the year, according to a company report today. January-September copper output totalled 1.06mn t, up by 12pc on the year, driven bythe restarted Katanga mine in the Democratic Republic of Congo. The three-month LME aluminium contract fell by 0.2pc to $1,994/t. Aluminium stock cancellations increased again, to 319,350t today, up by 7,225t from yesterday. The three-month LME nickel contract fell by 0.6pc to $12,150/t today, while the three-month lead contract was up by 0.3pc, at $2,011.50/t. The three-month zinc contract edged down by 1pc to $2,637/t, while the tin contract gained by 0.3pc to $19,325/t. The standard aluminium alloy contract moved up by 3.7pc to $1,395/t and the North American aluminium alloy contract fell by 1pc to $1,415/t. The three-month cobalt contract was flat, at $60,000/t. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 26 October (Argus) — Global mining group Glencore reported higher copper production in the third quarter and first nine months of this year, boosted by the restart of operations at its Katanga asset in the Democratic Republic of Congo. Switzerland-headquartered Glencore produced 366,900t of copper in the third quarter, up by 21pc year on year. Production totalled 1.06mn t of copper in January-September, a 12pc year on year increase. Glencore's African copper assets accounted for 297,900t of the nine-month total, a 78pc increase on the first three quarters of 2017. The Katanga operation was the driver for the increase, adding 102,600t of copper this year after coming back on line in December 2017 following more than two years of inactivity. Katanga produced 39,300t in the third quarter, its highest total since the restart. Copper production at Glencore's Collahuasi mine in northern Chile also increased by 6pc year on year to 176,800t in January-September and by 5pc to 61,500t in the third quarter. Glencore's overall African and south American nine-month copper output more than offset an 8pc fall in Australian output, which has been impacted by the smelter rebrick at the Mt Isa asset in the first half of the year. And overall Australian copper output strengthened in the third quarter following the end of maintenance, rising by 69pc year on year to 45,500t. The Katanga restart also pushed Glencore's total cobalt production higher by 44pc year on year to 28,500t in January-September. Glencore's overall zinc output fell by 5pc year on year to 786,000t in January-September, which was caused by the group's sale of African zinc assets to Canada-based Trevali mining in May 2017. Glencore's zinc production was up by 7pc over the first three quarters when adjusted to take this deal into account. Third quarter zinc production totalled 287,800t, a 12pc increase year on year. Nickel production edged down by 3pc year on year in July-September to 28,700t but was still up by 13pc year on year to 90,900t in the first nine months of 2018. The growth was driven by the continuing ramp-up of a new second production line at Glencore's Koniambo asset in New Caledonia. Koniambo nickel production increased by 75pc year on year to 21,500t in January-September. Glencore raised its copper and zinc production guidance for full year 2018 by 20,000t to 1.465mn t and 1.09mn t, respectively. The guidance for nickel output increased by 4,000t to 132,000t. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

London, 26 October (Argus) — Swedish mining firm LKAB's iron ore deliveries were down on the year in July-September as a result of several accidents. Deliveries fell by 2.8pc to 6.9mn t, and are expected to keep falling in October-December, with maintenance at the company's Svappavaara pelletising plant extended until January. LKAB says it expects to be able to catch up on deliveries later in 2019. Pellets' share of the firm's overall deliveries edged up to 82pc from 81pc, with demand for higher-quality iron ore remaining high. Production rose by 4.6pc to 6.8mn t. The company's results were affected by a stoppage of over two weeks at Svappavaara, following a fatal accident on 28 July. Not long after this, LKAB declared force majeure after a fire broke out in a tunnel on the ore rail line to port of Narvik. Iron ore deliveries was suspended for five days, which resulted in delivery losses of 10 trains a day, each carrying 6,500t of pellet. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Beijing, 26 October (Argus) — China's Damei Wheel Hub has started building a wheel hub plant in Shaanxi province to meet demand from the automotive industry in northwest China. The company will spend 1bn yuan ($144mn) to build a 6mn units/yr plant for aluminium wheel hubs in Tongchuan city. Site construction is expected to be completed at the end of 2019, with production scheduled for launch in June 2020. Shaanxi is a major automobile producing area in northwest China where the country's largest heavy truck producer Shaanxi Automobile Group and largest new energy vehicle producer BYD are located. China's automotive production maintained mild growth in this year's first three quarters, with output rising by 0.9pc from a year earlier to 20.5mn units. January-September sales were up by 1.5pc to 20.5mn units. Domestic new energy vehicle output rose by 73pc year on year to 735,000 units during January-September, with sales in the same period increasing by 81pc to 721,000 units. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Seoul, 26 October (Argus) — South Korean steel producer Hyundai Steel posted a 2.9pc fall from a year earlier in third-quarter production, largely amid slowing demand for rebar and other products from the domestic construction industry. Output for July-September fell to less than 5.24mn t from over 5.39mn t in last year's third quarter. The overall fall came as production of flat products rose by 1.8pc to 3.18mn t and production of long products, such as those used by building contractors, dropped by 9.4pc to 2.06mn t. South Korean construction industry spending is projected to fall by 2.3pc this year to 246 trillion won ($215.6bn), with Hyundai Steel forecasting it to slide a further 2.5pc in 2019 to W240 trillion. South Korea's government earlier this week said it will provide more funding assistance and tax incentives to boost facility investment. The domestic auto steel segment is also slowing, with unit production forecast to fall by 2.8pc to 4mn cars and trucks this year and to drop by 1.8pc in 2019 to 3.93mn. But Hyundai Steel is seeing a rebound in South Korea's shipbuilding industry. New vessel orders will rise by an estimated 30pc this year by tonnage and a further 11pc gain is forecast for 2019. South Korea's steel producers earlier this year negotiated higher prices from shipbuilders for heavy steel plates, reflecting increased costs for iron ore and coking coal. Hyundai Steel predicted that domestic plate demand will finish this year at 4.95mn t, up by 44pc from 2017 and an additional 9.3pc in 2019 to 5.41mn t. The company also is seeing gains from customising advanced products for specific industries. Global sales of automotive steel sheeting during January-September rose by 87pc from 2017 to 463,000t. Sales of high-strength steel for large buildings during the same period rose by 9pc to 918,000t. Overall third-quarter sales of premium products climbed by 10pc to 2.23mn t, with Hyundai Steel planning to expand its production of high-strength steel. Profit for the period rose by 7.2pc from a year earlier to W193bn as higher prices helped drive an 8.6pc increase in revenue to W5.23 trillion. Despite the threat of a global economic slowdown amid an escalating trade war between the US and China, Hyundail Steel expects stable growth in steel demand to continue as aggressive economic stimulus programmes underpin steady prices. Hyundai Steel also expects the industry to avoid a supply glut, even after China eased environmental rules mandating winter production cuts, because it will possibly take a long time for provincial governments to set their regulations. But raw material costs are also forecast to rise. Hyundai Steel said it expects short-term increases in iron ore prices because of high reserve demand in China. Coking coal is also trending upwards on supply disruptions in Australia and seasonal stockpiling in China, the company said. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Adds details of ArcelorMittal's bid in paragraphs 5-8 Singapore, 26 October (Argus) — The founding family of India's private-sector Essar Steel has offered $7.4bn to creditors in an attempt to take the company out of the bankruptcy resolution process, complicating a bid by global steelmaker ArcelorMittal for the firm. The counter offer by the Ruia family, which controls the Essar conglomerate, came after Essar Steel's creditors' committee officially declared ArcelorMittal as the successful bidder for the company yesterday. Japan's Nippon Steel & Sumitomo Metals (NSSMC) is a joint-venture partner with ArcelorMittal in the bidding. Essar Steel entered India's bankruptcy process last year. The bidding process started in October 2017. The Ruia family said its bid would repay Essar Steel's entire debt to all creditors, while the ArcelorMittal bid would only meet requirements of secured creditors — essentially banks. ArcelorMittal said the Ruias' bid does not meet legal requirements since the bankruptcy law requires the founders to make any offer to settle loans before the bidding process begins. But the new bid may extend litigation around the bidding process, with both the bankruptcy court and the Supreme Court likely to weigh in. ArcelorMittal confirmed the value of its bid for Essar Steel is $5.7bn. ArcelorMittal has additionally repaid $1bn in dues to two Indian companies in which it had equity holdings, Uttam Galva and KSS Petron, to remain eligible as a bidder for Essar. ArcelorMittal plans to invest an additional $1.1bn in Essar Steel to expand finished steel shipments to 8.5mn t/yr in the medium term. Essar Steel is currently producing crude steel at an annualised rate of 7.2mn t/yr, a company executive recently told Argus. Essar Steel is not a publicly listed company and does not disclose finished steel output. And ArcelorMittal plans to expand Essar Steel's capacity in the long term to increase finished steel shipments to 12mn-15mn t/yr through the addition of new steel-making assets. Essar Steel and NSSMC will jointly operate the plant if the bid is successful. ArcelorMittal expects India's bankruptcy court to approve the acquisition by the end of this year. India put five steel firms up for auction last year to recover debts owed to creditors, but Essar Steel is the biggest of these companies. Essar Steel is one of the six, large integrated steelmakers that account for around 45pc of India's crude steel output. It also has 10mn t/yr of pig iron capacity in the western town of Hazira and 20mn t/yr of iron ore pelletising capacity, the largest in India. Indian pellet demand has surged in overseas markets, especially China, since 2016, making it a valuable source of business for steel producers. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Singapore, 26 October (Argus) — China's Jiangsu province has asked cities to enforce production controls on steel, foundries, coking, non-ferrous, chemicals and building materials companies in the November-February period to reduce emissions during the heating season. The second-largest steelmaking province in China has asked the cities of Xuzhou, Changzhou, Huai'an, Yangzhou, Zhenjiang, Taizhou and Suqian to reduce industrial emissions from these enterprises by 50pc, while the cities of Nanjing, Wuxi, Suzhou, Nantong, Lianyungang and Yancheng have to cut emissions from such companies by 30pc. Jiangsu cities are now likely to come up with specific output reduction plans for steel mills to meet the emissions reduction requirements. Jiangsu did not enforce steel production restrictions in 2017. The province's emissions control plan is likely to support steel prices since it may squeeze supplies by more than expected during the winter months. Overall autumn-winter restrictions on steelmaking are softer this year as China seeks to blunt the effect of a trade dispute with the US on its economy. But supplies will be squeezed if more cities adopt production restrictions than the 28 that did last year. Beijing has desisted from specifying output cuts for industries this year, unlike last year, allowing provinces and cities to come up with their own output cut plans to reduce winter-time smog. The Jiangsu plan may, however, pressure prices of iron ore fines as any emissions reduction move is likely to put restrictions on sintering, a major source of pollution in a mill. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more

Singapore, 26 October (Argus) — The founding family of India's private-sector Essar Steel has offered $7.4bn to creditors in an attempt to take the company out of the bankruptcy resolution process, complicating a bid by global steelmaker ArcelorMittal for the firm. The counter offer by the Ruia family, which controls the Essar conglomerate, came after Essar Steel's creditors' committee officially declared ArcelorMittal as the successful bidder for the company yesterday. Japan's Nippon Steel & Sumitomo Metals (NSSMC) is a joint-venture partner with ArcelorMittal in the bidding. Essar Steel entered India's bankruptcy process last year. The bidding process starting in October 2017. The Ruia family said its bid would repay Essar Steel's entire debt to all creditors, while the ArcelorMittal bid would only meet requirements of secured creditors — essentially banks. ArcelorMittal said the Ruias' bid does not meet legal requirements since the bankruptcy law requires the founders to make any offer to settle loans before the bidding process begins. ArcelorMittal and NSSMC have not reported their bid value. ArcelorMittal has additionally repaid $1bn in dues to two Indian companies in which it had equity holdings, Uttam Galva and KSS Petron, to remain eligible as a bidder for Essar. But the new bid may extend litigation around the bidding process, with both the bankruptcy court and the Supreme Court likely to weigh in. India put five steel firms up for auction last year to recover debts owed to creditors, but Essar Steel is the biggest of these companies. Essar Steel is one of the six, large integrated steelmakers that account for around 45pc of India's crude steel output. It also has 10mn t/yr of pig iron capacity in the western town of Hazira and 20mn t/yr of iron ore pelletising capacity, the largest in India. Indian pellet demand has surged in overseas markets, especially China, since 2016, making it a valuable source of business for steel producers. Send comments to feedback@argusmedia.com Request more information about Argus' energy and commodity news, data and analysis services. Copyright © 2018 Argus Media group - www.argusmedia.com - All rights reserved.... Read more