WEEK IN BRIEF: Nickel stocks soar; deficits in zinc and nickel; LME fees change

Metal Bulletin looks back at the key moves and market news of the week.

Metal Bulletin looks back at the key moves and market news of the week.

Nickel was the watchword this week. Stocks in London Metal Exchange-approved warehouses in Singapore and South Korea have soared since the Qingdao probe earlier in the year. 

Stock levels were hitting fresh highs almost daily as material moved from China into the rest of Asia, and now stand at over 350,000 tonnes. 

Coupled with this, prices on the LME have been dropping from highs of nearly $20,000 per tonne in recent weeks as a result of this stock movement.

Glencore had some things to say about nickel this week, too, predicting a deficit. But when will it hit? Find out here. 

The Switzerland-based company said that the market will also start seeing a deficit in the zinc market next year. Read the full story here

A $200m tax dispute with the Zambian government is continuing, and yesterday Glencore began slowing work on some mines in the country, including the Mopani copper mine. Read the full story here. 

Talking of copper, do you want all the copper market news, prices and intelligence you need in one place, weekly? Then subscribe to Copper Price Briefing, Metal Bulletin’s new online weekly newsletter for the global copper market. Sign up to receive the first issue free at www.copperpricebriefing.com.

Louis Dreyfus reported its pre-tax profits on Tuesday. How did its metals unit get on? Find out here

The LME announced at the start of the week that the average transaction fee will rise by 34% as part of a programme of changes to the fee schedule.

“Our new tariff is integral to our evolution into a truly commercial global exchange and underpins our continued investment and our next phase of expansion,” Garry Jones, LME ceo and HKEx co-head of global markets, said in a statement.

Annual membership fees are also up for ring dealing members in particular, who must now pay an annual charge of $95,000, up from £55,000 ($89,360) previously. Click here to see Metal Bulletin’s in-depth report on the fee changes. 

Mating was on Jethro Wookey’s mind this week. Click here to see his report on why sellers are reporting a busy week, despite a lack of sales. 

In an exclusive interview, the head of Greek company Aluminium SA, Evangelos Mytilineos, tells Metal Bulletin how the company was pulled through the ravages of the global financial crisis. Click here for the full article

Miners and smelters in the copper concentrates market are preparing for annual negotiations, causing a reduction in the number of spot transactions. Metal Bulletin’s Copper Concentrates Index was calculated at $113.50 per tonne/11.35 cents per lb on September 30, up from $112.40/11.24 two weeks ago, as terms crept higher on a small number of sales made into China. More here.

As part of our continuing coverage of the Qingdao situation, Metal Bulletin compared the metal trade before and after the scandal broke. Click here for the full report. 

James Heywood
editorial@metalbulletin.com

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