EUROPEAN MORNING BRIEF 26/10: Vale nickel price hits 10-year high; Grupo Mexico expects surge in Cu, Zn output next year; KCM could halve 2019 Cu production
Good morning from Fastmarkets MB’s offices in Asia as we bring you the latest news and pricing stories on Friday October 26.
Base metal prices on the Shanghai Futures Exchange were mostly down during Asian morning trading on Friday after a firm dollar continued to put downward pressure on the complex. Copper and lead were the only metals to register gains – albeit marginal ones – in the early session, with supply tightness in both providing support.
Check Fastmarkets MB’s live futures report here.
Vale’s average selling price for nickel during the third quarter of 2018 showed the highest percentage difference over the benchmark price on the London Metal Exchange for the past 10 years, according to the Brazilian miner’s latest earnings report, released on Wednesday.
Grupo Mexico, the largest Mexican miner, expects a surge in its production next year, mainly led by copper and zinc. The company is undertaking a huge expansion program that will raise its output of copper by almost 80% by 2025, to 1.8 million tonnes per year.
Konkola Copper Mines (KCM), Vedanta’s Zambian copper operation, could cut its copper output by up to 150,000 tonnes next year due to rising procurement costs following a proposed import duty on copper concentrates, Fastmarkets has learned.
Vale, the world’s largest producer of iron ore and nickel, believes that its base metals division will be completely different by 2020, senior executives said on Thursday during a third-quarter earnings call.
The market for Turkish lumpy chrome ore showed signs of strong recovery late last week and, although the market appears to have stalled since then, the uptrend looks set to resume.