ASIAN MORNING BRIEF 14/11: LME base metal prices recoup some losses; Novelis to increase aluminium output in South America; Gécamines seeking emergency meeting on KCC cobalt suspension

The latest news and price moves to start the Asian day on Wednesday November 14.

Base metal closing prices on the London Metal Exchange were mixed on Tuesday November 13, with lead showing the biggest positive move of the day while zinc failed to close above its nearby support level amid record-low LME inventories for both metals. Read more in our live futures report.

Here are how prices looked at the close of trading:

Novelis will spend $175 million to expand aluminium production at its Pindamonhangaba plant in South America, with aluminium sheet rolling output to grow by 100,000 tonnes to 680,000 tonnes per year and recycling by 60,000 tonnes to 450,000 tpy.

Gécamines has requested an emergency meeting over the decision last week to suspend the export and sale of cobalt from Kamoto Copper Co in the Democratic Republic of Congo, in which it is a stakeholder. 

BMO Capital Markets is bearish on the benchmark copper treatment and refining charge for next year, with the Canadian financial services provider indicating that it might show a small fall in 2019 because of the tightening supply of concentrates.

The Comex copper price recovered modestly in the US on Tuesday morning, with the dollar index showing some weakness and allowing the price to climb.

The domestic Chinese ferro-silicon market was stable during the week ended November 9, with suppliers focusing on the domestic market. Meanwhile, the European price stabilized after the prior week’s drop and the US ferro-silicon spot market was steady week on week.

The United Arab Emirates’ domestic steel rebar price fell over the past week, along with low bids from customers, while the price for imported rebar was stable.

What to read next
Jeddah in Saudi Arabia and Port of Sohar in Oman are becoming tactical workarounds for base metal exports blocked by the Strait of Hormuz closure, with cargo transiting via land-bridge to other Gulf states, such as Bahrain and the United Arab Emirates – though capacity constraints and elevated logistics costs limit availability, sources with direct visibility of Gulf supply chains told Fastmarkets.
The Mexican aluminium market might be strongly affected by the closure of the Strait of Hormuz, with supply constraints and consequently higher premiums, market participants told Fastmarkets on Tuesday March 10.
Lundin Mining and BHP published a preliminary economic assessment on February 16 for their Vicuña joint venture, projecting average annual copper production of 395,000 tonnes over the first 25 years of operation as Argentina’s copper concentrate pipeline continues to build. PSJ Cobre Mendocino separately confirmed on February 14 that its feasibility study was under way.
Chinese lead smelters turned more bearish on the procurement of raw materials in the week to Friday February 13, amid heightened price volatility in silver, which is often contained in lead ores as an important by-product and contributor to smelter profits, sources told Fastmarkets.
Roughly 40,000 tonnes per month of copper cathode that once flowed smoothly into the United Arab Emirates (UAE) through Jebel Ali had few options to reroute after the Strait of Hormuz officially closed on Monday March 2, with the only alternative entry points — Khor Fakkan and Fujairah — already straining under the weight of diverted cargo, market sources told Fastmarkets.
Navigating market volatility with data-driven strategies for resilient mining operations