EUROPEAN MORNING BRIEF 29/03: China supply reform to support Ali prices; world manganese ore supply rises in Feb; South Korea’s exemption from 232 tariffs

Good morning from Metal Bulletin’s office in Shanghai as we bring you the latest news and pricing stories on Thursday March 29.

Base metals traded on the Shanghai Futures Exchange were broadly stronger during Asian morning trading on Thursday, with positive data from the United States overnight and a continued decline in geopolitical risk providing support.

Check Metal Bulletin’s live futures report here.

LME snapshot at 03.32am London time
Latest three-month LME Prices
  Price ($ per tonne)  Change since yesterday’s close ($)
Copper 6,678 13
Aluminium 20,38.5 11.5
Lead 24,10.5 -14.5
Zinc 3,280 -4
Tin 20,805 -85
Nickel 13,040 -90

SHFE snapshot at 10.32am Shanghai time
Most-traded SHFE contracts
  Price (yuan per tonne)  Change since yesterday’s close (yuan)
Copper (May) 49,640 380
Aluminium (May) 13,845 105
Zinc (May) 24,790 -15
Lead (May) 18,640 -5
Tin (May) 140,780 90
Nickel  (July) 96,770 170

Chinese supply reform is expected to limit the country’s investments in new aluminium capacity, which combined with a ramp-up in demand growth could provide support to aluminium prices on the London Metal Exchange, according to investment firm Cowen & Co.

World manganese ore supply rose by almost 20% year on year in February, due to South African miners ramping up production in response to rallying prices.

The US and South Korea have agreed on terms for a country exemption from the US’ Section 232 steel tariffs that is to take effect on May 1, the US Trade Representative said in a statement on Wednesday March 28.

The US’ bulk ferrous scrap export prices made strong gains in two cargo trades to emerging markets this past week, prompting East Coast exporters to raise dock buying prices ahead of what might be another upswing in domestic scrap pricing.

A shortage of crude indium material is pushing prices higher, market participants have told Metal Bulletin.

Tungsten miner W Resources has secured a development grant of €5.3 million ($6.58 million) for its La Parilla tungsten development in southwest Spain from the regional government, the Junta de Extremadura, it said on Wednesday.

And finally, Metal Bulletin has collated the main talking points from its 19th Asian Ferro-Alloys conference in Hong Kong on March 20-22. Click here to see what people discussed at the conference.

What to read next
Brazil's aluminium industry is further enhancing its sustainability by boosting renewable energy use and recycling, while mitigating risk from high-carbon imports
German copper producer Aurubis is among the least likely to consider reducing capacity despite record low treatment charges (TCs), according to its chief executive officer
European copper demand, particularly for wire rod, remains strong and seems to be outpacing broader macro-economic growth in the region, the chief executive officer of German producer Aurubis has said.
The process to place the smaller and less efficient of the two processing plants at Los Bronces on care and maintenance is expected to be completed by mid-2024 and comes as the company pushes value over volume, the chief executive officer of Anglo American Chile said
The near-term prospects for Chinese copper smelting capacity amid near-zero treatment charges (TCs) will, to a certain extent, depend on plants’ exposure to spot TCs, the chief executive officer of Rio Tinto’s copper division said on Tuesday, April 16
It will be very difficult for many Chinese copper smelters to compete with treatment and refining charges (TC/RCs) at record lows, according to the chairman of Chile’s state-owned copper producer Codelco