WEEK-IN-BRIEF: breakdown of LME fees; Terni; precious benchmarking; what’s in store for LME Week?

Metal Bulletin deputy editor Fleur Ritzema takes a look back at some of the key news and market moves from the past week.

The London Metal Exchange (LME) last month announced its fees from January, and brokers have spent the past couple of weeks working out the implications. 

Here’s a snapshot from one house of how it sees the current fees against the new ones.

And here’s Metal Bulletin’s breakdown of some of the salient points as the market heads into LME week, which begins on October 19.

Sucden Financial ceo Michael Overlander said this week that the changes may represent an increase of almost 100% in some instances.

In other news, Metal Bulletin spoke to various industry experts to get the low-down ahead of LME Week.

GF Financial Markets (UK) ceo Andy Gooch, told our team that the firm plans to take an active role in the promotion of trading links between mainland China and the rest of the world. 

BNP Paribas’ Stephen Briggs said that signs of falling demand for lead from China’s e-bike sector and the lack of a predicted deficit this year have muted the bullish outlook for lead prices.

Here, INTL FCStone Edward Meir spoke to Metal Bulletin following the release of the company’s LME market outlook report for 2014-15. 

With digital benchmarking started for silver and the London Bullion Market Assn’s gold pricing consultation getting into full swing, Metal Bulletin spoke to its ceo about overseeing these developments, and the LBMA’s growing role in the market.

Also in precious benchmarking, the LME was this week appointed as the new provider of London platinum and palladium prices. 

A spokeswoman told Metal Bulletin that the same electronic solution could be used for the gold market.

In the markets, base metals were deflated, as poor economic indicators weighed on global markets. Copper hit a seven-month low on October 16.

Metal Bulletin caught up with Sucden Financial at its London offices for the release of its quarterly metals report briefing. The broker gave these near-term price forecasts. 

And Natixis analysts said this week that nickel prices are likely to average around $19,000 per tonne in 2015.

In the physical markets, treatment and refining charges (TC/RCs) for copper concentrates rose to an eleven-month high in the first two weeks of October, during which the China Smelters Purchasing Team (CSPT) set a price floor for fourth-quarter concentrates purchases.

And in ferro-alloys, Italian steelmaker Acciai Speciali Terni has abandoned a move to force suppliers to cut the price of nickel scrap and ferro-chrome that the mill had already contracted to buy. The full story’s here. 

Alcoa, meanwhile, entered an agreement with Noble Group that will lead to Alcoa World Alumina & Chemicals (AWAC) selling 100% of its stake in Jamalco.

And X2 Resources, the company set up by former Xstrata ceo Mick Davis, has raised a further $1 billion from “a number of new investors”.

Looking ahead, as the metal market gears up for the biggest week of the year, in this video Metal Bulletin’s Alex Harrison talks about the key issues that are up for discussion in this video.

To find out what’s on where during LME week, check out Metal Bulletin’s interactive map, here.

And you can keep up with all the news over the next week here.