ASIAN MORNING BRIEF 01/11: Base metals continue downward trek; Steel slab prices poised to recover, Ternium CEO says; Turkey’s flat steel exports jump in September
The latest news and price moves to start the Asian day on Thursday November 1.
Base metal prices on the London Metal Exchange ended mostly lower on Wednesday October 31, pressured by a fresh 2018 high in the United States’ dollar index. Read more in our live futures report.
Here are how prices looked at the close of trading:
Ternium chief executive officer Máximo Vedoya expects steel slab prices to recover imminently, pointing to anticipated production stoppages and an inflationary trend in the price for raw materials used to make steel, he told analysts. Ternium produces 5 million tonnes of slab per year since buying Companhia Siderúrgica do Atlântico.
Turkey’s flat steel exports rose by 103.7% year on year in September, mostly due to strong European demand. For the first nine months of the year, exports were up by 27.9% year on year, Turkish statistical institute TUIK said.
The tin premium in Europe accelerated to a 21-month high on concerns surrounding Indonesian tin supply, and while the premium in the United States was steady due to sufficient supply contracts hinted at a climbing premium.
The hot-rolled coil price in northern Europe has “reached bottom,” sources told Fastmarkets, with prices flat at €550-565 ($625-642) per tonne ex-works on October 31 compared with last week.
Ferro-titanium prices are “rapidly” falling, one producer source said. Trades and assessments indicate the continuation of a downtrend that began on September 12 due to ample supply and traders looking to sell inventories.
The nickel premium in China rose on Tuesday due to an opening import arbitrage, with Fastmarkets assessing the cif Shanghai full-plate nickel premium at $200-220 per tonne on October 30 versus $200-210 per tonne a week earlier. The physical nickel markets in Europe and the US were relatively quiet.