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.
Lithium
Business as usual in the global lithium
market
Martim Facada
The lithium market remained stable in end-March with
participants reporting "very good levels" of activity in the
China spot market amid slightly quieter trading in the US and
Europe.
The booming battery sector in China continued to support
domestic spot trading there, with sales of 20-40 tonnes lots
reported at $18-21/kg for lithium carbonate (min. 99-99.5%
Li2CO3, CIF China) and $20.5-24/kg for
lithium hydroxide (56.5-57.5% LiOH, CIF China).
"We have been having a very good rate of material inquiries
over the course of the past days for both industrial and
battery grades of lithium carbonate and hydroxide, however,
anticipate the battery sector demand to grow stronger within
the following weeks [in April]", a supplier told
IM.
In the US and European markets, traders and consumers
remained highly pegged to their long-term contracts under which
the majority of the material keeps being absorbed.
Contract prices for lithium carbonate (min. 99-99.5%
Li2CO3, large contracts, del. US)
remained between $10-16/kg while spot market sales in the
regions – despite minimal activity – trading
at up to $18/kg for lots of 20 and 40 tonnes.
Lithium carbonate, min 99-99.5%
Li2CO3, large biannual
contracts,
del continental US, $/kg |
|
Source:
Industrial Minerals |
"Our current contract with a major lithium supplier is now
subjected to the movement of the market; if the market prices
move up due to the current strong demand our suppliers will be
able to revise and increase their prices by mid-2017", a
European consumer explained to IM.
Lithium hydroxide prices in Europe and US remained stable in
March with prices for 56.5-57.5% LiOH, delivered in Europe or
US between $14-20/kg with spot market prices in Europe and US
reportedly going as high as $23/kg for lots of 20 tonnes.
"We see an excessive demand in the market, which has enabled
us and other suppliers to hedge our prices in the spot market,
however, the majority of our material remained traded under a
contract basis. If we had more material we would fulfill all
enquiries but unfortunately demand has increased at a higher
speed than the global available production", a lithium producer
told IM.
Despite strong demand, the US and European markets were
anticipated to remain at these levels due to the amount of
material committed to contracts in 2017.
More trading activity was anticipated in China, however due
to the more liquid spot market there. This will rely deeply on
strong demand persisting, though.
Graphite
Chinese amorphous graphite prices fall
Albert Li
Chinese export prices of amorphous graphite decreased in
mid-April while flake graphite grades remained unchanged,
according to the IM assessment taken on 13
April.
Standard amorphous graphite grades 78% C and 80% C (-100
mesh or -200 mesh) saw their price level decline by
$10-20/tonne week-on-week, on an FOB China basis.
This brought amorphous graphite 78% C down from
$270-290/tonne to $250-280/tonne FOB China, and 80% C material
from $320-350/tonne to $300-350/tonne FOB China,
respectively.
Amorphous, 80% C, -200 Mesh, FOB,
China |
|
Source:
Industrial Minerals |
For rare amorphous graphite, such as 85% C, -100 mesh, the
export price dropped 7% or $60/tonne from $700-1,000/tonne to
$680-900/tonne.
According to a major producer in Hunan province, after the
export tax was cancelled in January, prices did not decline by
a straightforward 20% (the full value of the duty), as was
first expected.
In many grades, the decrease ranged between 10-15%, leaving
some room for further potential drops.
Meanwhile some raw materials, such as coal, had increased,
affecting production costs and thus preventing amorphous prices
from showing a steeper decline.
Flake graphite prices have remained flat
since January,
at the following price levels: |
|
Source: Industrial
Minerals |
According to flake producers in Shandong province speaking
to IM, downstream industries such as
refractories continue to show reduced demand.
Stricter environmental standards may affect the production
of high purity graphite and expandable graphite due to the use
of acid in processing, but this is not a major production in
China.
Chromite
Chemical chromite edges down as foundry holds
Davide Ghilotti
Chemical grade chromite prices declined between $10-20/tonne
in early April, while strong demand held up prices of foundry
and refractory grade material.
Chemical chromite prices edged downwards following weeks of
a standoff between suppliers and Chinese buyers, while foundry
grade material remained firm amid healthy demand.
Spot prices for chemical grade chromite have held steady
since the beginning of the year, following a rapid increase to
five year-highs at the end of last year.
According to IM’s assessment
on 11 April, prices have dwindled on the back of slow buying
activity and reduced trading of metallurgical UG2 chrome ore
into China.
IM tracked chemical chromite, 46%
Cr2O3, wet bulk, at a range of
$410-430/tonne FOB South Africa, marking a decrease against a
range of $430-440/tonne FOB in the first quarter.
Commenting on the latest price developments, a South African
supplier told IM that "unrealistic
expectations" were behind the previous higher range.
Another supplier added: "The market sentiment is [that
prices are] going down a bit. UG2 is also up in the air, which
is directly affecting offers for chemical grade."
Chemical chromite, unlike foundry grade, was closely linked
to the trends shaping metallurgical grades. There tends to be a
$40/tonne premium on chemical grade chromite over UG2.
Contracting for new business meanwhile remained slow, both
suppliers and buyers told IM in early
April.
Chinese users have been relying on previously-bought
material, while they held off from buying until the beginning
of second quarter.
Inventories of chrome products held at Chinese ports were
estimated at 1.5m tonnes, according to IM
sources. The level was higher than at this time last year, when
low levels of stocks at ports ignited what became a buying
frenzy which pushed prices upwards from H2.
At the same time, suppliers cautioned about actual
availa-
bility of material, noting that
a share of that inventory would be already booked or awaiting
shipment to final customers. Additionally, the recent issues in
river transport caused a backlog of cargo at ports. These
volumes would also be included in the current inventory but,
under normal conditions, would be already dispatched.
"Not all of that material is freely available for sale," a
supplier said. "That figure is fictitious."
Chromite, chemical, 46%
Cr2O3, wet bulk, FOB South Africa,
$/tonne |
|
Source:
Industrial Minerals |
Foundry holding firm
Foundry grade chromite sand was showing an overall healthier
situation, characterised by firm prices and strong demand, in
China and elsewhere, sources told IM.
Foundry grade chromite, 46% 3, wet bulk, remained priced at
$410-450/tonne FOB South Africa while lower-purity foundry
material, 45.8% Cr2O3, wet bulk, held at
$400-440/tonne FOB South Africa, both unchanged since 22
December 2016.
One trader said that, while it took longer for foundry
prices to follow the uptrend of metallurgical and chemical
chromite,
it was showing more resilience overall compared with the
metallurgical and chemical grades, both of which were falling
in early April.
ALUMINA
Pricing notice: Proposed changes to
IM’s calcined alumina prices
Industrial Minerals is proposing to revise its
specifications and change the frequency of assessment
for the calcined alumina grades.
We propose updating the existing specifications:
• Alumina Calcined, 98.5-99.5%
Al2O3 bulk FOB US refinery,
$/tonne
• Alumina Calcined, ground 98.5-99.5%
Al2O3, bulk FOB US refinery,
$/tonne
• Alumina Calcined, medium-soda
Al2O3, bulk FOB refinery
$/tonne
To the revised specifications below:
• Alumina,calcined, unground 98.5-99.5%
Al2O3, bulk, ex-works US/Europe,
long-term contract
• Alumina,calcined, ground 98.5-99.5%
Al2O3, bulk, ex-works US/Europe,
long-term contract
• Alumina,calcined, medium-soda min. 0.25%
soda, min. 99.5% Al2O3, ground
and unground, bulk, ex-works US/Europe, long-term
contract
Additionally, IM proposes
to change the frequency of the assessment of these
grades from weekly to monthly, starting from May
2017.
If you have any questions or comments, please
contact Industrial Minerals’ head of
market reporting Yoke Wong at yoke.wong@indmin.com.
|
Fluorspar
China supply disruption fails to lift fluorspar
prices elsewhere
Yoke Wong
Fluorspar prices were largely stable outside China in early
April amid supply disruptions in the world’s
largest producing country as most consumers remained
well-covered by their long-term contracts.
China, which accounts for about 50% of global fluorspar
supply, has been facing supply disruptions since late February
as Beijing imposed strict anti-pollution control on mining
activities. The supply tightness was further compounded by
lower seasonal output levels due to traditional winter
production cuts.
Amid reduced output, demand for refrigerant and hydrofluoric
acid have been improving, which has lifted China-origin
acidspar prices, while the recovering steel industry has also
boosted the value of metallurgical grade fluorspar
(metspar).
The fluorochemical industry is the biggest end-user of
acidspar, which is used to manufacture hydrofluoric acid
– a key raw material in refrigerants, fluorocarbons
and fluoropolymers. While metspar is used as a metal smelting
feedstock for steel-making, hence steel production is a key
driver of metspar demand.
China-origin metspar and acidspar spot prices have been
increasing since late February and both hit multi-year highs
following years of depressed demand and falling values.
Acidspar min. 97% CAF2, wet filtercake prices at
$320-340/tonne on a FOB China basis were at three-year highs,
according to IM’s 6 April
assessment.
Although prices were unchanged since end-March, the market
has not traded at these levels since February 2014.
Metspar min. 85% CAF2 prices, though also
unchanged for weeks at $290-310/tonne on a FOB China basis on 6
April, are at a three-and-a-half-year high, or the highest
since May 2013.
"Six years in a row of falling prices, depressed demand, we
might finally be turning a corner," a US-based consumer told
IM.
However, elsewhere in Europe and the US, prices remained
unchanged as consumers were well-covered by their long-term
contracts, which would ensure supply for either one-year or
six-months.
Although China accounts for more than half of global supply,
other producers have been able to replace the reduced export
volume from China. Many producers were also willing to sell at
lower prices in order to compete for market shares, which has
pressured prices outside China.
In addition, many consumers have diversified their supply
portfolio, so many are not entirely dependent on Chinese
material, thereby reducing their exposure to the recent supply
disruption and price increases.
US market
In the US, acidspar 97% CaF2, dry filtercake
prices were at $260-270/tonne on a CIF US Gulf port, according
to the IM assessment taken on 6 April, with
the market relatively unchanged since July 2016.
The annual and half-year contracts for delivery in 2017 were
concluded late last year, when the market was depressed and
prices hovered around five-year low, market sources said.
However, with refrigerant demand in the US improving and
final decisions on an anti-dumping case on China-origin
refrigerants, a series of fluorochemical compound commonly
known as R134a, some consumers in the US expect a further
recovery in refrigerant demand.
The US department of Commerce announced 5 April that it is
imposing anti-dumping duties of 148.79% - 167.02% on
China-origin R-134a imports to the US effective from 1 March
2017.
If downstream demand continues to improve, consumers could
potentially seek more acidspar to meet consumption needs in the
second-half of the year.
"We are reassessing our own production, if demand is
continuing, there is a possibility that we would need to buy
more. I would expect our competitors are also feeling the same
effect on the same market," one US-based consumer said.
Europe
In Europe, the acidspar markets were also stable since
end-July 2016 as the region was largely covered by long-term
contract, which concluded end of last year.
"Due to prices being negotiated end-2016, there was a lot of
pressure on the prices. We had to reduce our price. In 2016,
the market was so oversupplied, there was hardly any sign that
there was higher demand," one European producer told
IM.
Acidspar min.97% CaF2 prices held at $250-270/tonne on a CIF
Rotterdam basis 6 April, unchanged since July 2016, while
min.85% CaF2 metspar, prices were at $240-260/tonne CIF
Rotterdam, unchanged since March 2016.
Meanwhile major steel producing country Turkey continued to
receive competitively priced metspar material from Afghanistan,
Iran and China, which has capped prices in the region.
"We recently lost out a couple of tenders to the Chinese.
They are far cheaper than what we can supply," one producer
told IM.
Due to the intense competition in the region, some remained
cautious about the demand outlook in Europe, but one major
producer remained optimistic saying "this is the year that
Europe will recover."
Asia ex-China
Spot prices for acidspar, min 97% CaF2, dry
filtercake increased to $ 250-300/tonne on a FOB China to India
basis 6 April, up $20/tonne compared to the previous week.
One buyer who sourced spot material from China told
IM: "After the Chinese [new year] holiday, the
prices have increased dramatically, we haven’t
seen this kind of trend before."
However, some Indian consumers remained well-covered on
long-term contracts from suppliers outside China, which has
limited price gains in the market.
In Japan, one consumer has also reported higher refrigerant
prices on the back of the fluorspar price uptrend in China.
Acidspar, 97% CaF2, Wet Filtercake, FOB
China, $/tonne |
|
Source:
Industrial Minerals |
Magnesia
Fused magnesia prices increase in China
Albert Li, Davide Ghilotti
Intermittent production issues are starting to have an
effect on Chinese export prices for fused magnesia in April,
while caustic calcined (CCM) and dead-burned magnesia (DBM) are
holding for the moment. Meanwhile demand for European material
is on the rise, according to market participants.
Fused magnesia (FM) export prices out of China rose 11
April, following steady increases in domestic prices.
Several producers in Haicheng, as well as European buyers,
confirmed to IM an increase in FM prices
ranging between $30 and $100 per tonne, depending on grade and
destination.
China’s domestic FM prices have been on the
rise this year to date due to a number of reasons, including
the ongoing environmental inspections of local production
processes, limited use of dynamite for mining activities, lack
of magnesite ores out of Haicheng and government’s
requirement on higher stripping ratio, among others.
FM domestic prices increased over 20% to-date this year,
according to IM sources.
Magnesia, fused, 98% MgO, lump, FOB China,
$/tonne |
|
Source:
Industrial Minerals |
While producers believed that tight supply might continue
until H2, they also believed that prices will keep growing,
both for domestic sale and exports.
One producer in Haicheng
told IM that environmental-related
equipment upgrade costs may be higher than the cost of building
a new kiln.
Specifically in FM, which requires first grade or special
high-grade magnesite ores, the small amount of output and
inventory may push FM prices further upwards.
One Dalian-based trading company
told IM that, since magnesite
resources are concentrated in Liaoning province, the provincial
government can easily manage it through policies limiting
output or adding mandatory sale price thresholds.
CCM and DBM prices remained stable for the moment, against
the increase seen in FM, as shown in the table below:
Prices listed are $/tonne basis FOB
China |
|
Source:
Industrial Minerals |
Higher demand in Europe
Meanwhile in Europe, customers and local suppliers alike
were keeping a close eye on the developments taking place in
China.
Multiple sources based in Europe, active in production and
trading, told IM that they have seen
growing demand for European-produced material in some grades,
including CCM and FM.
This, they claimed, was based on buyers not being able to
secure enough volumes in China to cover their needs, forcing
them to source elsewhere.
"Since production is intermittent, Chinese companies are
meeting orders through existing stocks. This means that not all
grades are readily available: FM seems thin on the ground at
the moment," one European trader
told IM.
While European magnesia prices have remained unchanged as of
late, demand has reportedly increased. At least two suppliers
told IM that the number of orders
have grown this year to date compared with 2016.
"Business activity is growing," one supplier said.
The trader added: "The European market will get tighter.
It’s just a matter of time."
KAOLIN
Pricing notice: Proposed changes to
IM’s kaolin prices
Industrial Minerals is proposing to change the
frequency of assessment for kaolin prices from weekly
to monthly, with effect from mid-May.
The following grades will be assessed and published
on the second Tuesday of every month from 16 May
2017.
• Kaolin for sanitaryware, (-75 micron,
FCL’s bagged > 75 Whiteness), FOB
HaiPhong, Vietnam, $/tonne
• Kaolin for tableware, (-45 micron,
FCL’s bagged > 90 Whiteness), FOB
HaiPhong, Vietnam, $/tonne
• Kaolin for tile glaze, (-75 micron,
FCL’s bagged > 85 whiteness), FOB
HaiPhong, Vietnam, $/tonne
• Kaolin, Brazilian kaolin, Paper coating
grade, 5% moisture, bulk, C& F Europe, $/tonne
• Kaolin, Brazilian kaolin, Paper coating
grade, slurry form, bulk, C& F Europe, $/tonne
• Kaolin, No 1 paper coating grade, Ex-Georgia
plant, $/s.ton
• Kaolin, No 2 paper coating grade, Ex-Georgia
plant, $/s.ton
Prices are currently assessed on a weekly basis. The
proposed change would move assessments to a monthly
frequency.
If you have any questions or comments, please
contact Industrial Minerals’ head of
market reporting Yoke Wong at yoke.wong@indmin.com.
|
Antimony Trioxide
Chinese antimony trioxide offer prices rise as
production woes continue
Martim Facada
Offers for China-origin antimony trioxide have increased
amid lower production rates in early April but depressed demand
kept spot prices unchanged 11 April.
Chinese producers have raised their trioxide 99.5%
Sb2O3 FOB China offer prices up to
$8,100/tonne FOB China for lots of 20 tonnes as less material
was reaching the market due to environmental control
constraints.
Still, a lack of confirmed sales at the $8,100/tonne FOB
China levels kept the Chinese trioxide 99.5%
Sb2O3 FOB China market unchanged between
$7,900-8,000/tonne FOB China, according to an
IM assessment, made 11 April.
A Chinese trader explained to IM that "the
environmental inspection team has moved into Hunan and a lot of
blast furnaces are shut".
"Some state-owned smelters are still running, but the
production volume has been reduced and is not enough", the
trader added.
In Europe the market remained sluggish with antimony
trioxide 99.5% Sb2O3 prices continuing to
trade between $7,900-8,000/tonne CIF Antwerp/Rotterdam over
April.
Lower spot market activity and depressed demand in Europe
have led prices to stabilise after months of rapid
acceleration. European production remained lower, however,
lending support to the prices.
"The market remains strong despite lower demand over the
course of the past days. The Euro-Dollar exchange rate
alongside the Chinese higher offers have kept prices at a
strong level but unchanged; not being enough to reach prices
above $8,000/tonne CIF Antwerp/Rotterdam, as consumers lack
appetite," a European trader told IM.
In contrast, the US market prices remained above the other
regions with higher values at $8,000-8,200/tonne CIF East Coast
[antimony trioxide 99.5%
Sb2O3].
"The market has seen no price improvement over the past
days. We have been offered lots of
20 tonnes of Chinese material
at $8,100/tonne FOB China however we can still find cheaper
material sourced from within the
US market", a US consumer said to IM.
While the global trioxide 99.5% Sb2O3
market held unchanged for the past month, sentiment remains
bullish among market participants canvassed by
IM with many anticipating prices to improve
further as soon as demand picks up.
Antimony trioxide, typically 99.5%
Sb2O3, 20 tonne lots FOB China,
$/tonne |
|
Source: Industrial Minerals |
Rare Earths
China Northern Rare Earth Hi-Tech raises April
prices
Albert Li
After a price hike in March, China Northern Rare Earth
Hi-Tech Group again raised the prices of praseodymium and
neodymium oxide by Chinese renminbi (Rmb) 7,000/tonne
($1,017/tonne*), at the beginning of April, while lanthanum and
cerium oxide prices remain unchanged.
The major Chinese rare earth producer also increased the
prices of neodymium metal and praseodymium/neodymium metal by
Rmb8,000 and Rmb9,000/tonne respectively.
Both lanthanum and cerium oxide prices remained stable for
the past three months while other prices were raised four
consecutive times since December 2016. Compared with December
2016, prices of lanthanum, cerium, praseodymium neodymium and
neodymium oxide have increased by 1.59%, 1.71%, 10.15%, and
9.4% respectively.
To stimulate the sales of lanthanum and cerium, the company
explained that the price was still negotiable as it wanted to
secure more long term lanthanum/cerium sales.
Previous reasons given by China Northern Rare Earth Hi-Tech
for the price hikes were the lower production rates in China
due to the continued drive for supplier-side reform in the
industry; government initiatives to combat illegal mining and
business activities; as well as stricter and more frequent
environmental inspections.
China Northern Rare Earth Hi-Tech
prices |
|
Unit = RMB/tonne, ex-works, VAT included |
White fused alumina
White fused alumina prices fall
Yoke Wong
Falling raw material costs pulled white fused alumina prices
lower in early April, but the supply outlook remained uncertain
in China.
Spot refractory-grade white fused alumina (WFA) prices fell
in early April as production cost eased in China due to falling
raw material value.
Alumina is a key raw material for WFA production and price
have been falling on a weekly basis in the past month amid thin
trade.
Free market metallurgical grade alumina in China decreased
to Chinese renminbi (Rmb) 2,450-2,530 on a delivered, duty-paid
basis, 6 April, according to IM’s
sister publication Metal Bulletin.
Alumina prices in early April dropped 17% or Rmb430 compared
to prices on 2 March, according to Metal Bulletin data.
While WFA spot prices followed alumina’s
downward trend, the decrease was limited by the ongoing
anti-pollution related output disruptions in China.
Spot refractory-grade WFA (99.0% Al2O3
min, in 25kg bags) prices were assessed at €700-750/tonne
on a CIF Europe basis on 6 April, down €45/tonne or 6%
compared with €720-820/tonne in March.
"The drops in alumina prices were too small to impact WFA
prices," one Chinese producer told IM.
China is one of the largest fused alumina producers in the
world but strict environmental policies have led to wide-scale
production shutdowns in the country since July 2016.
Many WFA plants that did not meet environmental standards
were shut down in 2016 and may not re-open due to the
government’s perceived commitment to uphold its
new tougher stance on pollution, according to market
sources.
Furthermore Chinese WFA producers who have met environment
standards told IM that they are selling
increased volumes in the domestic market to meet local demand,
leaving less material available for the export market.
Reduced Chinese WFA exports have led to increased enquiries
in Europe, as consumes who normally depend on Chinese material
seek other supply sources.
Nonetheless, China is still a significant supplier in
Europe, one Europe-based producer said.
However, if the supply disruption worsens in China due to
Beijing’s tougher environmental stance, it could
potentially cause severe supply shortage.
"China is the world number one producer in WFA, if they
don’t want to supply, nobody could cope," said the
Europe-based producer.
At the same time, European producers could be incentivised
to ramp up production capacity to meet demand if WFA prices
increase.
Fused alumina, white, 25kg bags, CIF Europe,
€/tonne |
|
Source: Industrial Minerals |
Pricing notice: Industrial Minerals
will launch five new silicon carbide grades in
April.
Following market consultation, Industrial Minerals
will be launching five new silicon carbide prices, with
effect from 19 April.
The following grades will be assessed twice a month
on Wednesdays.
• Silicon Carbide FEPA 8-220 Black min 99% SIC,
Acid wash, DDP Europe €/tonne
• Silicon Carbide FEPA 8-220 Black min 99% SIC,
Water wash, DDP Europe €/tonne
• Silicon Carbide FEPA 8-220 Green min 99.5%
SiC, DDP Europe €/tonne
• Silicon Carbide Refractory grade min 95% SiC
DDP Europe €/tonne
• Silicon Carbide Refractory grade min 98% SiC
DDP Europe €/tonne
Additionally, the following grades will be delisted
with effect from 25 May:
• Silicon Carbide FEPA 8-220, CIF Continental
Europe, Black about 99% SIC Grade 2 £/tonne
• Silicon Carbide, FEPA 8-220, CIF Continental
Europe, Black about 99% SIC Grade 1 £/tonne
• Silicon Carbide, green, over 99.5% SiC, FEPA
8-220 mesh, CIF, £/tonne
• Silicon Carbide, Refractory grade, min 95%
SiC, €/tonne
• Silicon Carbide, Refractory grade, min 98%
SiC, €/tonne
• Silicon Carbide, SiC, FEPA 8-220, CIF UK,
black, about 99% SiC Grade 1, €/tonne
• Silicon Carbide, SiC, FEPA 8-220, CIF UK,
black, about 99% SiC Grade 2, €/tonne
If you have any questions or comments, please
contact Industrial Minerals’ head of
market reporting Yoke Wong at yoke.wong@indmin.com.
|