WEEK IN BRIEF: Glencore and Trafigura updates; Mercuria v Citi; base metal term talks; Fanya flipside

Metal Bulletin's editor Alex Harrison brings you the biggest news and price moves from the metal market over the past week.

Metal Bulletin’s editor Alex Harrison brings you the biggest news and price moves from the metal market over the past week.

Updates from Glencore and Trafigura

“Maybe we’re right, maybe we’re wrong… Even if it’s half that, you’re still talking about a deficit of more than 500,000 tonnes.”

The head of Glencore’s copper department Telis Mistakidis took aim at the forecasts of a surplus in the market next year as the company talked through its business for investors. The trading company and producer is the world’s largest marketer of copper units, which gives it excellent insight, he said.

Read it here.

Nickel co-heads Peter Johnston and Kenny Ives talked about the assets they plan to divest, and looked back on a rollercoaster year and forward to a deficit from 2018.

Ivan Glasenberg: “Sometimes it’s not a pretty picture.” Find out what the Glencore ceo was discussing.

Glencore’s nearest rival in metals trading is Trafigura. Its report was published last week. Net profit fell by 50% on the deconsolidation of Puma Energy. Read more here.

Coal prices led to a $90-million writedown. Click here to read more.

Head of metals Simon Collins talked about concentrates and China, here.

The company has locked in more concentrates too by refinancing mines in the Democratic Republic of Congo. More information available here.

Mercuria vs Citi
Mercuria’s post-Qingdao case against Citibank ended. A dispute had broken out between the two when Citi called on the trading company for early repayment on a repo deal after news of the Qingdao incident broke. A judgment is expected in the first half of January.

After Mercuria made its closing statement Citi said it had no choice but to bring forward early repayment, and was within its rights to do so.

Aside from the contractual dispute, what else did the court papers and hearing reveal about the repo business between Citi and Mercuria? Find out here.

Base metal term talks
Contracts were settled in copper TC/RCs; zinc in Asia and aluminium billet in Japan. And offers have been made for first-quarter MJP aluminium premiums.

LME fees
The London Metal Exchange has lowered the average increase of the fees it will charge from January 1 by a few percentage points. Read more here.

Flipside of the Fanya effect
The most closely watched market in minor metals, the Fanya Metal Exchange, said it has changed its trading rules and suspended stockpiling while it inspects its inventory.

Uncertainty about the minor metal exchange has weighed on indium and bismuth prices: read more here.

Pricing notice
Metal Bulletin pricing over the end of the year and start of 2015.

Alex Harrison
aharrison@metalbulletin.com
Twitter: @alexharrison_mb

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