Metals &Mining Alert:Daily prices and news,Open-pit mining ban to stay in Philippines
Industrials (/lb): aluminum $0.87 (-0.6%), copper $2.88 (-0.4%), lead $1.06(+0.2%), molybdenum $7.14 (+0.0%); nickel $4.67 (+0.7%); zinc $1.26 (-0.5%);Precious (/oz): gold $1,269 (0.0%), silver $16.71 (-0.7%); Steel (/mt): China HRC$575 (+0.6%), SHFE Rebar $553 (+1.6%), MB Scrap Index $317 (+1.5%); Bulks:iron ore (/dmt) $74 (+0.0%), coking coal (/mt) $182 (+1.1%), freight (BCI) 1,331(+8.7%); Energy: Brent (/bbl) $51.78 (-1.7%), WTI (/bbl) $49.16 (-2.0%), naturalgas (/mmBtu) $2.82 (+0.9%), thermal coal (/t) $95 (+1.6%).
Philippines’s new Environment Minister, Mr. Roy Climatu confirms he will notrevoke the ban on open-pit mining imposed in April by former Minister andenvironmental hard-liner, Mrs. Regina Lopez. He noted the issue will bediscussed at a council which is reviewing taxation of miners and all evidenceprovided by miners will be analyzed. The ban covers only developmentprojects, not operating mines. Mr. Climatu’s comments, along with President,Mr. Rodrigo Duterte’s comments last week have propelled nickel prices to a 4-month high of $4.67/lb as Philippines is the largest ore supplier. (Mining.com).
US construction spending in June declines to SAAR of $1.2tn (vs. May’srevised estimate of $1.23tn, +16% YoY). Private construction spend was down0.1% MoM to $941bn whereas public spend fell to $265bn (-5.4% MoM). (SBB).
Crude steel output at members of China Iron & Steel Association (CISA)average 1.86mt/day over the July 11-20 period (+0.4% sequentially, +10%YoY). Finished steel inventory at mills totaled 12.92mt (-0.2%, -7.5%). (SBB).
Commercial Metals raises rebar prices by $25/t, effective on new orders fromTuesday. Market participants expect price increases to stick despite demandbeing flat, as import activity remained subdued due to the ongoing Section 232investigation and higher scrap costs could underpin prices. (SBB).
US steel import permits totaled 3.5m st in July (-11% vs June imports, +6%YoY), including finished products of 2.8m st (-5%, +13%). Semis (-255kt, -27%)appear to decrease the most MoM, whereas, oil country tubular goods (+62kt,+19%) and standard pipes (+48kt, 51%) rose. (US import administration).
BC Hydro exercises right of first offer to purchase Teck’s ~67% interest inWaneta Dam for C$1.2bn cash. Commercial terms remain unchanged for Teckwith respect to the Waneta purchase agreement with Fortis. Teck will now paya break fee of $28m to Fortis and expects to realize a net book gain of $800mon closing of the transaction in 1Q18 (previously 4Q17 with Fortis). (Company).
US Steel prices $750m Notes due 2025 at 6.875%. Net proceeds to be used toredeem 7.0% Notes due 2018 ($161m outstanding), 6.875% Notes due 2021($200m), 7.5% Notes due 2022 ($400m). This extends weighted averagematurity by 1.3 years and results in interest savings of $3m/pa (or 2c/sh).
Separately, 5 employees were injured at Hot Strip Mill in Great Lakes Worksfacility. Mill remains down but other operations are unaffected. (Company, DB)
