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Friday, Feb 2 12 days till Valentines Day - Order Flowers |
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 Nickel inventories continue to fall, and the price continues to rise. Indications at 8:00 am CST are that nickel trading is selling up by $.39/lb. (more)
 Daily Report By Jyske Bank - pdf here
 Tax Deduction on Imported Nickel in China Unlikely to Push Inflow - "Trading sources reported that a tax deduction on importations of refined nickel in China is not likely to prompt inflow due to high world prices." - article here
 Philippines foresees boom in mining - "Overseas investment in mines in the Philippines, which has $1 trillion in mineral wealth according to a state estimate, may surge to $1.6 billion next year as the industry starts to boom, the government has forecast." - article here
 China's Xinjiang Nonferrous Metal Group plans IPO for nickel unit this yr - "China's Xinjiang Nonferrous Metal Group said in a statement that its cupro-nickel unit is planning a public listing this year." - more here
 North American Average Stainless Steel Prices - Latest forecasts from MEPS - In February and March we expect stainless transaction values to rise to new record highs due to inflated nickel prices in December and January. - more here
 (interesting article by Mineweb above supposed "plot" to get rid of Mikhail Prokhorov) Prokhorov sells out of Norilsk Nickel, Polyus - "Mikhail Prokhorov, until Thursday the world's richest miner, ought to have enjoyed the lentils, which are one of the staples on the menu at the Hotel de Police de Lyon. For four days in January, Prokhorov was jailed in France on suspicion of trafficking in women, pimping, and related sex commerce. He was released without indictment. It was the worst scandal to strike the two internationally listed mining companies, Norilsk Nickel and Polyus Gold, since Prokhorov and his partner, Vladimir Potanin, first took Russia's largest mining assets in a rigged privatization scheme a decade ago." - (much more here) also, here is a text transcript from a NTV Mir Television report in Moscow (here) and finally, an article from Moscow Times (here)
Metals: prices are soaring - "It looks as though the global rolled products market has embarked on the road to recovery. As expected, prices for fittings, the main type of rolled construction products, were the first to rally, having climbed 10% over the past two weeks. In all likelihood, metal producers can look forward to a good year ahead." - article here
 Eleven billion work before the factory of North - "Fences, the installation of the RT1, offices and a base life of 250 people: Koniambo Nickel announced, yesterday to Koné, eleven billion preliminary work. But no firm contract was still taken for the construction of the factory of North." translated article here
China's stainless exports to US hits 16,000 tons in last Dec - "China has exported stainless steel products over 16,000 tons to the US in last December, which was two times more than the quantity of 7,100 tons in the same period of 2005." - article here
Chinese ferromoly prices steady before Chinese New Year break - "Spot ferromolybdenum trade in Asia has been at a standstill with offer prices moving within a tight range of $61-62/kg on a CIF basis, Asian industry sources said this week. Asian traders said trade was expected to remain quiet ahead of the Chinese New Year holidays in mid-February." - more here
 Today's beginning nickel inventory - minus 144 tons = 3,222 tonnes ( 25.51% cancelled warrants) |
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Extra |
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 First, let us congratulate Xstrata and the CAW on reaching an agreement, and saving those of who use nickel, a lot more pain in the pocket - we hope. More importantly, your decision not to strike proved our prediction on January 20 correct, for a welcome change. Ok - now let's talk about the contract. Here are some details from the Tentative Agreement made between Xstrata and the CAW, that should be ratified by the membership Friday. Wage increase of $.60/hour in the first year, $.20/hour the second, and $.20/hour the third. Presently the CAW makes about $25-$26/hour(C). A "Continuity Allowance" of $8000(C) or about $6796(US). This works out to another $1.33/hour(C) over the three year contract term. Not mentioned, but surely understood, is the continuance of the monthly nickel profit bonus each member gets. The higher the price of nickel goes, the bigger the bonus (you don't honestly believe it was all Xstrata that was doing the stalling, do you?) A thirty year retirement to look forward to with a $39,600(C)/annual pension (if you have seen what a pack of cigarettes cost in Canada, you wouldn't think this was so high). And many other provisions, too numerous to list. One particular line that stands out - "Viagra now covered (for medical reasons)". Better watch out Inco! Your competition in town just got stiffer! (details here) |
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Thursday, Feb 1 13 days till Valentines Day - Ordered Flowers, yet? (we Americans are a little preoccupied at the moment by the much anticipated approach of an annual event, that is quite misunderstood in those parts of the world that find football a brutal and senseless sport. It is an event our nation watches with hushed reverence, followed by cheers of excitement. Bets, both legal and illegal, are being placed on its outcome as we write this. We, of course, are speaking of Ground Hog Day. When the greatest nation on earth comes to a stop and watches a furry, fat rodent, we would any other day be shooting at, come out of a cage, so we can determine our meteorological future .And you other nations call yourselves civilized!!) |
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Official close for LME nickel today - cash - $17.91/lb - 3 month buyer - $16.61/lb. Markets were down early on news the Sudbury strike had been averted, but regained its momentum on inventory pressures. The strike possibility may be over, but the question remains -"Where's the nickel?!"LME nickel ended the day at $16.70/lb  ($36,825/tonne).
 Commodities 2007: Year of the Bears? - "Little attention has been given to the technical aspects behind the January correction in commodities and energy markets. This is remarkable given its impact on the markets in the near term is likely to be no less than significant." - article here
 Nickel – Mining starts at Avebury nickel project - article here
January Manufacturing ISM Report On Business - press release here
Eramet - New Caledonia Nickel Loss 7,000 Tons From Strike - "The company said it is now looking to boost output to 75,000 tons, but aims to produce about 65,000 tons in 2007. Deliveries will be about 2,000 tons lower than this, Eramet said, in order to rebuild stocks of finished products which fell to an "unsustainably low level during the strike." - Article here
(comment) Everyone was watching the events in Sudbury yesterday, so the ruling in Russia kind of snuck thru. We find it interesting that Russia is putting a stop to foreign owned companies taking over their mining industries, or not allowing any new companies to come in after their "rare" minerals like copper?, when just 3 years ago, Norilsk took over Stillwater Mining of Montana and is mining platinum in the US?? - 2 pages - #1 here #2 here.
Norilsk chief to sell stake - "Banking experts are speculating that Mikhail Prokhorov's decision to sell his interest in OAO Norilsk Nickel could eventually result in the Russian government taking over the world's largest nickel miner." - more here
CVMR Eyes $3 Bln Philippine Nickel Refinery Invest - Source - "Canada's Chemical Vapor Metal Refinery Co., or CVMR, is keen to invest US$3 billion in a nickel refinery in the Philippines, a senior official of the mines bureau said Thursday." - more here
 Clad Steel Plate from Japan; Final Results of the Expedited Sunset Review (Second Review) of the Antidumping Duty Order - more here
Well, it's over!! Oh, not the bull run, just the possibility of a strike in Sudbury. The price of nickel fell sharply this morning on news of an agreement between the CAW and Xstrata, with prices falling over $500/tonne. Then someone seemed to remember the LME nickel inventory fell nearly 20% overnight (before any strike), and at 8:00 am CST, indications show the price of nickel is actually selling above yesterday, by $.03/lb. Go figure. Let's hope someone was holding back on some nickel shipments betting that a strike driving prices higher. (more here)
Mineral boom set to continue - "AUSTRALIA'S mineral boom appears set to continue despite a slowing US economy that would normally have been the death knell for commodity prices in the past, a leading forecaster said today." - article here (the report mentioned is not free so I am unable to link to it)
Norilsk Nickel comes under sole control - "Vladimir Potanin, one of Russia's richest and most politically savvy oligarchs, is buying out his business partner to take sole control of Norilsk Nickel, in what could be a step towards state control of the world's biggest nickel producer." - article here
 POSCO to build ferronickel refinery in May - "South Korea's POSCO, the world's third-largest steel maker, said on Thursday it will start in May to build its first ferronickel refinery with an annual capacity of 150,000 tonnes. POSCO has been seeking to secure a stable supply of the material, which is a combination of nickel and steel." - article here
 Eramet annual report - (quote - "Given the effects of the strike, particularly on ore inventories, as well as planned repair works on two ore calcining furnaces, the target for metallurgical nickel production at the Doniambo plant in 2007 is about 65,000 t. Deliveries will be about 2,000 tonnes lower than this, in order to rebuild inventories of finished products, which fell to an unsustainably low level during the strike.") - pdf press release here
Stainless Steel Transaction Prices Nearing Their Peak - MEPS report here and article on report "Stainless Steel Price Boom Under Serious Threat - MEPS" here
China will impose quotas on the export of molybdenum - "The government of the People's Republic of China could impose export quotas molybdenum in March." - translated from Russian here
 We have made some changes to our right column. Nickel, molybdenum, and ferrochrome price history's have been moved to the charts page, and we have added some more analysis and helpful links for our readers.
 Rio Tinto posts record 2006 profit - "Anglo-Australian mining giant Rio Tinto has announced a 43 percent jump in in full-year net profit to a record 7.44 billion US dollars and forecast continued strong demand for commodities." - more here (and annual report here)
Miners battle China over African wealth - "The world's largest mining companies are turning to the United Nations and the World Bank in an attempt to prevent China freezing them out of Africa." - article here
Philippine Berong mine makes first nickel shipment - "The Philippines' Berong nickel mine, whose inferred resource is said to be the world's fourth biggest, has made its first trial ore shipment, one of its owners said on Thursday." - article here
 Outokumpu: Nickel Price Makes Steel Stock Build Unlikely - "Underlying demand for stainless steel is expected to remain strong in 2007 with stocks unlikely to build while nickel prices remain high and volatile, Finland's Outokumpu said Thursday." - (more here) and "Outokumpu swings to Q4 pretax profit, beating market consensus" - more here
Xstrata Sudbury nickel workers' union agrees deal - "Xstrata Plc and the union representing workers at its big Canadian nickel operations in Sudbury reached a tentative new agreement before a deadline on Wednesday, narrowly avoiding a strike that would have crippled production and crimped already-tight metal supplies." - article here
 Yesterday's official closing prices - now being posted at end of day - see yesterday for yesterday's closing price
Today's beginning nickel inventory - minus 606 tons = 3,366 tonnes ( 27.27% cancelled warrants) |
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