EUROPEAN MORNING BRIEF 27/12: SHFE base metals, bar Al, rebound; GEM signs NCA supply deal with South Korea’s Ecopro; Chinese stainless steel mills lower FeCr tenders

Good morning from Fastmarkets MB’s offices in Asia as we bring you the latest news and pricing stories on Thursday December 27.

Base metals prices on the Shanghai Futures Exchange were mostly up during Asian morning trading on Thursday, with the complex buoyed by improved risk sentiment following a rally in US equities.

Check Fastmarkets MB’s live futures report here.

London Metal Exchange, base metals prices

Docherty, Kyle (SG)

Shanghai Futures Exchange, base metals prices

Docherty, Kyle (SG)

Chinese battery materials producer GEM has signed a memorandum with South Korea’s Ecopro to supply the latter with 170,000 tonnes of nickel-rich nickel-cobalt-aluminium (NCA) precursor materials in the next five years, according to an announcement on December 23.

China’s leading stainless steel mills - Tsingshan Group, Taiyuan Iron & Steel (Tisco) and Baosteel - have lowered their January tender prices for high-carbon ferro-chrome, pressured by declining stainless steel prices and relatively high steel stocks at plants.

The electric vehicle (EV) industry has undergone rapid development this year, with a rise in global EV sales volumes prompting continuous growth in demand for China’s spherical graphite. This demand, coupled with tightening supply in the country, has kept prices for the material well supported.

The average price for domestically produced hot-rolled coil in the United States for 2019 could be below $35 per hundredweight ($700 per short ton), according to a forecast by KeyBanc Capital Markets.

Ferrous scrap prices were unchanged in the Mexican steelmaking regions of Bajio and Monterrey during the week ended December 21, with buying largely concluded ahead of Christmas, according to market participants.

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