IM’s full price listing is
only published online. If you have any comments or concerns, or
wish to discuss any of the grades or prices listed, please
contact Barbara O’Donovan, Industrial Minerals
editor bodonovan@indmin.com.
Antimony trioxide
Antimony trioxide prices drop as producers dump
material
Myles McCormick, Yoke Wong
Antimony trioxide spot prices fell at the end of November as
some producers offloaded stock at lower prices, keen to convert
holdings to cash as year-end approached.
The drop-off came despite reports that some producers were
cutting production, further crimping supply amid a lower export
quota for material out of China. But the impact of reduced
supply was offset by weak demand. Consumption for the flame
retardant mineral, which is mainly used in cables, has been
dampened by poor electronic goods sales.
A degree of uncertainty remains about price direction in the
coming months, however, one Asia-based trader noting that
"the economic situation is unknown" adding that he thought
buyers will "just buy however much they need", rather than
stocking up.
Following IM’s assessment on 24 November,
antimony trioxide spot prices (99.5% Sb2O3) dropped to
$6,200-6,300/tonne on an FOB China basis, down $125/tonne
compared with the average price in October.
Antimony trioxide for delivery in Europe on a CIF
Antwerp/Rotterdam basis also fell to $6,300-6,500/tonne, down
nearly $100/tonne compared to the average price in October.
Europe-origin material tends to sell at a premium to Chinese
product, but buyers are increasingly attracted to the cheaper
Chinese material.
Meanwhile US prices, on a CIF New York basis, also dropped
to $6,400-6,600/tonne at the end of October from
$6,600-$6,700/tonnes at the end of November. The US has to rely
heavily on imports, due to there being no domestic production
according to market participants.
As the key raw material for antimony trioxide is antimony
ingot, the flame retardant mineral would normally rise and
fall
in tandem with the antimony metal price, which has also
dropped over the past two months.
According to IM’s sister publication, Metal
Bulletin, antimony metal prices (free market, in warehouse
Rotterdam, max 100 ppm Bi) stood at $7,250-7,450/tonne on 23
November, down from $7,650-7,950/tonne at the beginning of
October.
Antimony trioxide, typically 99.5% Sb2O3, 20
tonne lots
FOB China, $/tonne |
|
| Source: Industrial Minerals |
Iodine
Iodine price optimism short lived
Myles McCormick
The spot price of iodine crystal continued its downward
trajectory in November as producers competed for market share,
dampening hopes of an uptick in the market predicted by
some.
The spot price for iodine crystal (min. 99.5%, packed in
drums) dropped to $18.5-21/kg for material delivered to the US
and Europe or on a CIF basis to Asia, according to
IM’s market assessment on 24 November. This is
down $1/kg compared with the $19.5-$21/kg in October.
At least one Chilean supplier has lowered its offer to
$18.50/kg for spot iodine delivery, IM heard.
The spot price of iodine crystal has been under pressure and
falling consistently for most of 2016 as major suppliers battle
it out for market share, pushing ever more material onto an
already oversupplied market.
Participants had speculated in late-October that the slide
might be drawing to an end, however, with some speaking of a
"concerted effort" to achieve price recovery, following
indications that at least one large producer would not sell
at prices below $20/kg.
However, IM heard in November that prices continued to drop
amid market-share competition.
"The price is still under downward pressure, but not as
intensely," said one Chile-based supplier, predicting that it
may flatten out early next year, but an uptick would take
longer. "We don’t see an increase until next
year."
There had been an assumption among market players that
higher cost producers would exit the market amid the pricing
war, allowing lower cost producers to take their market share,
but this has not yet proved to be the case, causing producers
to continue to drop their selling prices.
The contract price of iodine crystal (min. 99.5%, packed in
drums) for Q4 remained static at $20.5-22/kg, though some
predict this will follow the trajectory of the spot market in
2017.
| Iodine crystal, 99.5% min, drums, spot,
$/kg |
|
| Source: Industrial Minerals |
Lithum
Lithium deals for 2017 grind towards
closure
Myles McCormick
After lengthy negotiations, deals on 2017 annual lithium
contracts were starting to be finalised at the end of Novmeber
with a number of completed transactions now reported to IM.
Prices have risen significantly from 2016, with market
participants arriving at deals around double last
year’s range, at levels similar to the current
quarterly price range.
Buyers have expressed frustration at the price hike, but
relief at locking in supply for the year.
The protracted contracts talks have taken longer-than usual,
however, and at the time of publication not all deals had been
concluded. "There is still some hesitancy and uncertainty in
the market," one large lithium carbonate buyer told IM.
Prices offered have varied widely, with previous
relationships, quantity, supplier strategy, consumer size,
commitment term and end-market type all playing a role.
Suppliers have insisted they are trying to support
particular end markets, such as glass, which are suffering from
the high price dynamic.
But buyers have complained that the opposite is the case in
some instances, with reports of grease markets being hit with
higher lithium hydroxide prices than battery markets.
With deals continuing to close, IM expects to set its 2017
price range in December.
In late November talks remained in progress, with some
buyers going back and forth between suppliers and downstream
customers, in an effort to placate the latter group, who will
have the higher cost of materials passed on to them.
"We are playing ping-pong," said one lithium hydroxide
buyer, adding he was anxious to show he was trying to get a
better deal, for the sake of downstream relations, although he
was doubtful much improvement on offer prices would be
possible.
Buyers’ frustrations
During the 2017 supply contract talks in the past few
months, buyers have expressed frustration about the one-sided
nature of the negotiations.
In what one buyer described as "definitely a
seller’s market", lithium producers are all
seeking higher prices and changes to traditional contract
terms.
Following the lead of China’s spot market
earlier in the year, offer prices of both lithium carbonate and
lithium hydroxide in 2017 annual deals were well above those
paid on current year annual contracts, based on offers reported
to IM.
"The price will double compared to last year," predicted one
large buyer.
In lithium hydroxide, IM had heard offers ranging from
$12/kg to $20/kg for product from Western suppliers and offers
in the mid-20s in dollars-per-kilo terms ex-China.
This would represent a significant rise on the roughly
$8-9/kg paid on contracts set this time last year.
Meanwhile, lithium carbonate offer prices were largely
reported in the low teens ex-South America while Chinese offers
tended to be in the mid-teens.
2016 supply contracts for lithium carbonate tended to fall
between $6-7/kg.
Because hydroxide remains a significantly smaller market
than lithium carbonate, those requiring larger volumes of the
material are being asked to pay higher prices than those
looking to buy small quantities, with sellers aware that
buyers’ options are limited.
But producers have insisted that the tight market conditions
necessitate higher prices, with one recently indicating to IM
that without a notable change in the supply picture going into
2017, expectations of a price drop from current quarterly price
levels were unlikely, while another criticised what he saw as
unrealistic expectations among some buyers.
They said deals would be tailored to different customers,
with factors such as prior relationship, size and market
segment all being taken into account.
John Mitchell, lithium president at Albemarle Corp., a major
supplier, told investors on a recent earnings call that the
company did not want to take advantage of customers in the
current market dynamic.
"Our relationships with some customers go back decades (...)
we are really focused on making sure we grow together (...)
and we want to treat customers fairly," he said.
Contract changes
Outside of pricing, contractual clauses relating to longer
commitments are also being sought, much to the ire of some
buyers.
Two major suppliers are said to be pushing for three year
deals, whereby customers get a set price for an initial year
and commit to certain volumes over the long term, with the
latter year prices to be negotiated at a later stage within a
predetermined range, based on market price.
Clauses have been inserted in some instances demanding
mandatory compensation in later years should the customer
decline to continue to buy from the same supplier.
In others, suppliers are looking for buyers to commit to
giving them a guaranteed set percentage of their business in
subsequent years.
While in some cases the long term deals entail lower prices,
at least in the first year, the prospect of being tied in to
purchasing from the one producer for more than a year remains
unattractive to some buyers.
"We know the market will be tight for a couple of years. But
lots of things will happen. We don’t want long
terms contracts with suppliers. We prefer to see what happens
(…) Next year we may decide we want to get more business
from one than another," one buyer told IM.
Such deals might be more suited to automotive producers such
as Tesla, he suggested, where companies are under significant
pressure to produce vehicles and the cost of lithium remains
a small part of their overall cost.
"For them, lithium is just the salt in the salad. They will
pay what they need to," he said.
Faced with this somewhat one-sided market dynamic, some
buyers are looking to split their supply requirements more so
than they would have in past years.
Lithium carbonate, min 99-99.5% LiC2O3, spot
contracts,
China, $/kg |
|
| Source: Industrial Minerals |
Chromite
Foundry chromite spot market widens
Davide Ghilotti
The spread between prices for foundry grade chromite sand
widened through the course of November, prompted by upward
pressure on the Asian market in contrast with a slower
Europe.
Price pressure affecting chrome grades across the board has
generated increases for foundry grade material as well,
although the price movements have not been as uniform as in
metallurgical or chemical grades.
As highlighted since October, while the market for foundry
sand is moving upwards, it also appears to have taken
different directions depending on destination.
Asia – especially China – has shown a
strong flow of demand of late, with multiple enquiries for both
prompt shipments in December and 2017 early-quarters
deliveries, multiple suppliers told IM.
This scenario, combined with an underlying situation of low
supply from South Africa compared with 2015, prompted a rapid
increase in spot prices for foundry sand to Asian
destinations.
In Europe the market has been slower to react, and prices
have not reached the levels seen in China.
Reasons for this include lower levels of demand from local
buyers and, in some cases, the existence of some unsold
quantities of material available for sale in European
warehouses, in the hands of traders.
A progressive inventory clearance would support an uptick in
the European market, although sources are unsure as to how
much material is in question and how long it would take for
the local market to absorb it.
Foundry grade chromite sand, 46% Cr2O3, wet bulk, was
trading in a range between $370 and $410/tonne FOB South
Africa, according to an IM assessment on 17 November.
The assessment shows an increase compared with the average
price of $287.50/tonne in October, as well as a widening spread
between offers on the low and the high end of the range.
| Chromite, foundry, 46% Cr2O3, wet bulk, FOB
South Africa, $/tonne |
|
| Source: Industrial Minerals |
White fused alumina
Spiralling raw material cost lifts WFA price
Yoke Wong
The spiralling cost of raw materials is lifting white fused
alumina (WFA) spot prices as Chinese producers raised their
offers, market sources told IM.
Alumina is the key raw material used to produce WFA, and
recent restocking from Chinese aluminium smelters have pushed
prices up by about 40% since October.
Chinese domestic alumina prices was assessed at a range of
Chinese renminbi (Rmb) 2,700-2,850 ($390-412)/tonne on a
delivered in China basis, according to IM’s sister
publication Metal Bulletin on 24 November, up 18% from the
average of Rmb 2,344/tonne in October.
Driven by the uptrend in China, alumina prices elsewhere in
the world are also rising. Inferred alumina index on a FOB
Brazil basis, the reference for European smelters, was
calculated at $318.47/dry metric ton, up $17.02/tonne
compared to a fortnight previously, according to Metal
Bulletin in end-November.
As smelters’ alumina purchased volumes are
often much bigger compared with WFA producers, with the average
standard cargo size at 30,000-35,000 tonnes, the former could
secure lower volume-related prices.
One WFA producer in China has quoted alumina prices as high
as Rmb 3,000 ($433.50)/tonne, and he had to raise his WFA
offers to reflect higher raw material and production costs.
Spot refractory-grade WFA (99.0% Al2O3 min, in 25kg bags)
prices were assessed at €650-680/tonne on a CIF Europe
basis, up compared with €625-650/tonne in end-October,
according to IM’s assessment on 24 November.
Materials for spot delivery in Germany traded in the region
of €680/tonne on a DAP basis, one Europe-based producer
told IM.
Stronger demand, reduced supply in China Due to the Chinese
government’s anti-pollution crackdown on many
production facilities in China since July, many fused-alumina
plants that did not meet environmental standards were shut
down. The shutdowns were particularly severe in Henan province,
one of the main regions for fused-alumina production.
As a result, reduced WFA supply amid firm domestic demand is
supporting prices in China, producers in the country said.
Chinese-origin WFA were trading in the region of Rmb 5,000
(€682.45)/tonne on an ex-work basis within China,
according to two suppliers.
In contrast, WFA supply in Europe was not disrupted and the
region remained well-supplied amid weak refractory demand.
Consequently, European product prices did not receive the
strong boost like its Chinese counterpart.
China is one of the biggest fused alumina producer in the
world.
| Alumina, fused, white, 25kg bags, CIF Europe,
€/tonne |
|
| Source: Industrial Minerals |
Fluorspar
Fluorspar prices remain stable amid increasing
supplies
Kasia Petal, Albert Li
Metspar spot prices have remained largely stable in Europe
in November despite increased supplies reaching Turkey, market
sources told IM.
Turkey is receiving more materials from Afghanistan, Pakistan
and Iran, as it is the main export destination from the three
producing countries, a trader active in Turkey told IM.
IM does not currently assess metspar (85% CaF2) prices for
delivery in Turkey but spot contracts for Afghan-origin
material were traded at $260-270/tonne on a DAP basis,
according to the trader.
At the same time, suppliers in neighbouring Pakistan and Iran
are also undercutting prices in order to gain market share
in
Turkey, and the increased competition is pressuring
prices.
"There is too much competition from products from
Afghanistan, Pakistan and Iran – they
can’t sell anywhere else," said the trader.
Elsewhere in the Mediterranean, one European supplier has
reported increased buying activities in Spain.
"In terms of end markets for fluorspar, some countries like
Spain are seeing higher demand and more activity, but not
really in other countries like Turkey," the source said.
The supplier noted that increased competition is occurring in
Europe but it is not driving prices down by as much as it had
done previously.
Spot metspar prices were assessed at $240-260/tonne CIF
Holland, unchanged month-on-month (m-o-m), according to
IM’s assessment on 24 November.
Improving steel demand is expected to support metspar
consumption as the mineral is a metal smelting feedstock and
is used during production. Some market participants believed
that metspar prices could increase as the steel sector
recovers.
"Every other raw material into steel, such as manganese and
magnesium, is seeing an uptick. I hope that eventually metspar
prices will also go up," the first trader said.
Supply disruption in China
Fluorspar mining operations in northern China may stop due to
the cold winter while production may also halt for a month
during the spring festival holiday in January 2017, market
sources told IM.
Despite the imminent supply disruption, fluorspar prices are
expected to be stable due to the balance of supply and demand,
sources said.
Spot metspar (min 85% CaF2) prices were assessed at
$240-260/tonne, while fluorspar acidspar, 97% CaF2, wet
filtercake, last traded at $250-270/tonne, both were on a FOB
China basis and were unchanged m-o-m.
Fluorspar, Acidspar, 97% CaF2, Wet
Filtercake, CIF,
Rotterdam to Holland, $/tonne |
|
| Source: Industrial Minerals |
PRICING NOTICE: Industrial Minerals will retain its
acidspar, CIF US Gulf Ports price and extend the consultation
period for acidspar, China to Japan. Several other fluorspar
grades will be delisted.
Following a market consultation from end-October regarding
the proposed delisting of several fluorspar prices the
following action will be taken:
Industrial Minerals will delist the following grades,
effective 30 November:
• Acidspar, 97%, Dry Filtercake, CIF, Mongolia to India
[USD/tonne]
• Acidspar, 95.5% CaF2, EXW, India Domestic [INR/tonne]
• Acidspar, 92.5% to 95.5% CaF2, EXW, India Domestic
[INR/tonne]
• Metspar, 90% to 92.5% CaF2, EXW, India [INR/tonne]
• Metspar, 85% to 90% CaF2, EXW, India [INR/tonne]
Industrial Minerals will continue to publish the following
grade that had previously been proposed for delisting:
• Acidspar CIF US Gulf Ports [USD/tonne]
Industrial Minerals will extend the consultation period
regarding the proposed delisting of the following grade of
fluorspar:
• Acidspar, 97% CaF2, Dry Filtercake, CFR, China to
Japan [USD/tonne]
If you have any comments please contact Industrial Minerals
head of market reporting Yoke Wong at yoke.wong@indmin.com
Graphite
Graphite suppliers talk 2017 contracts
Davide Ghilotti
The graphite market has remained stable over November as
negotiations have started between suppliers and consumers over
new contracts for 2017.
Sources handling graphite production in Europe told IM "many"
discussions are ongoing to set volumes and prices for next
year’s contracts, although nothing has been
formalised as of yet.
"It’s early to talk 2017 prices at the moment,"
a European supplier said.
He and other sellers said market prices continue to remain
stable, both in Europe and in Asia.
In China, the spot market has seen notable activity in early
November albeit price levels have so far remain unchanged.
IM was told by local suppliers that a number of sales have
taken place, with all reported within existing price ranges.
Chinese flake graphite, 90% C, -100 mesh is trading between
$450-500/tonne FOB Qingdao, while the same material on an FOB
Henan basis is at $420-520/tonne.
Higher purity product, 94-97% C, also remained unchanged in
China: +80 mesh was traded at $850-950/tonne, while -100 mesh
stood at $550-700/tonne, and +100 -80 mesh sold at
$700-800/tonne, according to IM’s assessment on
3 November.
As for Europe, prices for high purity refractory grade
graphite (94-97% C, +80 Mesh, CIF Europe) remained at
$750-850/tonne, while medium mesh graphite grade (94-97% C,
+100 Mesh -80 Mesh, CIF Europe) stood at $700-750/tonne.
Chinese amorphous graphite, 85% C, -100 mesh sold at
$680-800/tonne FOB, on a par with previous deals.
Overcapacity
A market participant based in North America told IM that
overcapacity remains the underlying cause of market
flatness.
"The demand today is requiring about 60% of
today’s worldwide capacity," he said,
questioning the business models of both existing companies
and junior projects that are seeking to add new capacity.
As IM reported in October, China-based Southern Graphite
– the largest producer of amorphous graphite globally
– confirmed it plans to expand its amorphous output by
200,000 tonnes by next year, citing the will to move away from
low-value ore to higher-purity products that command price
premiums.
This is a trend IM has seen happening across the board.
A European producer noted 3 November that "all major
producers are trying to produce higher purity products to
target applications that offer better pricing", adding that
this will "force change on the market".
At the same time, the flatness seen in the past months has
led to a build up in inventory levels, both in China and
elsewhere.
Sourcing graphite is not a problem today, an Indian seller
said, citing that any real rebound in the market would have to
be preceded by a significant reduction of stocks across the
board.
| Graphite, flake, 94-97% C, +80 mesh, FCL, CIF
Europe port, $/tonne |
|
| Source: Industrial Minerals |
Pricing notice: Update on proposed delisting of
graphite prices Industrial Minerals has delisted the prices
of several grades of graphite from the beginning of
December.
Following market consultation started in October, Industrial
Minerals will delist the following grades of graphite,
effective 8 December:
• Africa Flake, 80-82% C, No Mesh Stated, EXW, Africa
[USD/tonne]
• Africa Flake, 84-86% C, No Mesh Stated, EXW, Africa
[USD/tonne]
• Africa Flake, 88-90% C, No Mesh Stated, EXW, Africa
[USD/tonne]
• Africa Flake, 92-94% C, No Mesh Stated, EXW, Africa
[USD/tonne]
• Austria Amorphous, 75% C, Ore, EXW Austria [USD/tonne]
• India Flake, 90-94% C, +50 Mesh, FOB, India
[USD/tonne]
• India Flake, 90-94% C, +80 Mesh, FOB, India
[USD/tonne]
• India Flake, 90-94% C, +100 Mesh, FOB, India
[USD/tonne]
• India Flake, 90-94% C, -100 Mesh, FOB, India
[USD/tonne]
Industrial Minerals will extend the consultation period for
the proposed delisting of the following graphite prices until
the end of January 2017:
• Vein, 99.1% C, +1 Mesh, FOB, Sri Lanka [USD/tonne]
• Vein, 99.1% C, -200 Mesh, FOB, Sri Lanka [USD/tonne]
• Vein, 91% C, -8 Mesh, FOB, Sri Lanka [USD/tonne]
• Vein, 93% C, +60 Mesh, FOB, Sri Lanka [USD/tonne]
• Vein, 96% C, -200 Mesh, FOB, Sri Lanka [USD/tonne]
• Vein, 98% C, +8 Mesh, FOB, Sri Lanka [USD/tonne]
If you have any comments please contact Industrial Minerals
head of market reporting Yoke Wong at yoke.wong@indmin.com
Magnesia
Industry concerned over China’s magnesia
quota affair
Albert Li, Davide Ghilotti
Market participants were taken by surprise by
China’s elimination of the export quota system for
magnesia products and are concerned about how this could impact
market prices, as some Chinese sellers have reported cases of
order cancellations from customers.
As the Chinese government did not include magnesia in its
list of export quotas released at the end of October, local
and international companies alike are now at a loss as to
what to expect on the market in the coming months and years
(see p8).
IM was told of instances in which international customers
cancelled the orders they had already placed with Chinese
suppliers, in the hope of a price decrease next year due to no
export restriction.
"Some customers have indeed cancelled orders, except those
who regularly use magnesia as source material because they
cannot stop production," a local producer told IM.
The effect on prices is at the heart of the debate: the
sector has expressed concerns over whether the scrapping of
the quotas will lead to Chinese magnesia flooding the
international market, instigating price wars and oversupply.
The government has yet to release an official statement to
address these issues, but local companies are not expecting a
U-turn. One company said that, at this time of the year, firms
are usually busy with quota-related paperwork and procedures.
None of this has happened this year, he added.
In Europe, the sector is equally uneasy.
"As things stand right now, it is very difficult for us to
judge the global developments created by government
interference," one German-based source handling magnesia told
IM.
There is a degree of scepticism among sources on the
potential for a swift drop in global prices. A contact based in
Germany stated that it is not a given that the savings Chinese
suppliers will make from not paying for quotas will necessarily
translate into lower offers on their end.
At the same time, the main threat magnesia sellers fear that
there could be a drastic increase of supply from China to the
international market, as companies that could not previously
afford quotas will now be able to export freely.
As a consequence, this could generate fierce price
competition between new exporters who vie for market space and
drive overall prices down at a time of weak global demand.
Another European supplier told IM: "If China opens the gates
for magnesia exports, a large amount of magnesia that is not
consumed [within] the country will be exported."
While IM has heard from some suppliers in China that the
no-quota system would mean savings on their part, for others
the cancellation spells bad news for prices going forward: "Now
the price is at the bottom already," one local company said.
"If the quota is cancelled, this industry is doomed."
In the meantime, prices of magnesia products - including
dead burned and caustic calcined magnesia - out of China have
remained flat, according to the latest IM assessment on 1
December.
| Magnesia, deadburned, 92% MgO, lump, FOB
China, $/tonne |
|
| Source: Industrial Minerals |
Tio2
Cristal to increase TiO2 prices
Kasia Patel
Global titanium dioxide (TiO2) producer Cristal has
announced a number of price increases for its TiONA and TiKON
products in end-November, effective 1 January 2017.
Prices for its TiO2 products in Latin America are set to
increase by $200/tonne, while prices in Eastern and Western
Europe will see an increase of €200/tonne ($212*).
Russia and CIS region prices will increase by
$150/tonne.
TiONA and TiKON prices in the Middle East and Africa will
increase by $150/tonne, or by €200/tonne in euro-priced
markets.
Meanwhile TiO2 prices for Asia Pacific will also increase by
$150/tonne.
The price hikes are in addition to increases announced
earlier this year in August, which were implemented at the
start of
September. These follow similar price announcements made by
Huntsman Corp. at the end of October.
Earlier this month, leading TiO2 producer The Chemours Co.
also confirmed it planned to continue driving moderate price
increases for its products following a positive third
quarter.
*Conversions made November 2016
| Titanium dioxide pigment, bulk, CIF US,
$/tonne |
|
| Source: Industrial Minerals |