EUROPEAN MORNING BRIEF 04/12: Rio Tinto appoints next chairman; KGHM interview; Shanghai bonded stocks

Good morning from Metal Bulletin’s office in Shanghai as we bring you the latest news and pricing stories on Monday December 4.

Base metal prices on the Shanghai Futures Exchange were mostly higher during Asian morning trading on Monday, with copper rising amid short-covering.

The most-traded January copper contract on the SHFE stood at 53,450 yuan ($8,076) per tonne as of 11.30am Shanghai time, up by 550 yuan from last Friday’s close, with around 180,000 lots changing hands so far.

Check Metal Bulletin’s live futures report here.

LME snapshot at 03.32am London time
Latest three-month LME Prices
($ per tonne)
Change since yesterday’s close ($)
Copper 6,844 11
Aluminium 2,069.50 -5
Lead 2,541 -4
Zinc 3,232.50 -16.5
Tin 19,495 40
Nickel 11,350 60

SHFE snapshot at 11.30am Shanghai time
Most-traded SHFE contracts
  Price (yuan per tonne) Change since yesterday’s close (yuan)
Copper (January) 53,450 550
Aluminium (January) 14,525 -75
Zinc (January) 25,665 480
Lead (January) 19,065 315
Tin  (January) 141,560 890
Nickel  (May) 91,850 1,700

Rio Tinto has appointed Simon Thompson as chairman, the company announced on Monday. Thompson, who joined the Rio Tinto board as a non-executive director in 2014, will become chairman on March 5, 2018.

Polish copper miner KGHM expects to produce around 120,000 tonnes of copper at its Sierro Gorda mine next year, the company’s president and chief executive officer Radoslaw Domagalski-Labedzki told Metal Bulletin in an interview during Asia Copper Week in Shanghai last week.

Shanghai bonded zinc stocks rose in November, after a dip in October, on weaker demand due to environmental crackdowns, while copper stocks fell to a 2017 low, according to a Metal Bulletin survey.

Rio Tinto’s Arvida aluminium smelter in the Canadian province of Quebec is reportedly experiencing difficulties with its billet casting, causing a slowdown in billet production, sources told American Metal Market.

Lundin Mining Corp expects its zinc output to fall in 2018 while other companies are ramping up production to take advantage of high zinc prices, although an expansion project is forecast to boost levels in the two subsequent years.

Flat-rolled aluminium manufacturers are encouraged by the US Commerce Department’s decision to self-initiate anti-dumping and countervailing duty investigations into imports of Chinese common alloy aluminium sheet, believing that such tariffs would benefit the domestic market.

What to read next
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
State-owned miner Codelco is holding talks this week with potential investors in a new smelter project in Chile, the company’s chairman told Fastmarkets on Monday, April 15