EUROPEAN MORNING BRIEF 30/01: SHFE base metals prices correct; zinc miners try to halve annual concentrate TCs; European alloy steel surcharges rise sharply

Good morning from Metal Bulletin’s office in Shanghai, as we bring you the latest news and pricing stories on Tuesday January 30.

Base metals prices on the Shanghai Futures Exchange were all weaker during Asian morning trading on Tuesday, with a correction underway across the complex following a strong performance in the previous session.

Check Metal Bulletin’s live futures report here.

LME snapshot at 02.04 am London time
Latest three-month LME Prices
Price ($ per tonne)  Change since yesterday’s close ($)
Copper 7,118 33
Aluminium 2,232.5 7.5
Lead 2,620 18
Zinc 3,553.5 3.5
Tin 21,870 -55
Nickel 13,895 90

SHFE snapshot at 10.04 am Shanghai time
Most-traded SHFE contracts
Price (yuan per tonne)  Change since yesterday’s close (yuan)
Copper (March) 53,500 -100
Aluminium(March) 14,590 -80
Zinc(March) 26,980 -75
Lead(March) 19,650 -150
Tin (May) 150,820 -130
Nickel (May) 105,810 -110

Zinc miners hope to halve the annual concentrate treatment charges (TCs) in initial offer prices to smelters this year, while the market prepares for what could be one of the most vibrantly contested negotiations for years.

European alloy surcharges for January deliveries of grade-316 cold-rolled stainless steel sheet have risen sharply month on month amid higher nickel and molybdenum costs.

Metal Bulletin has updated its list of key contract negotiations at the world’s leading copper mines this year. Click here to view the status of such talks as of Monday.

Codelco has reached an early wage deal with unionized workers at its Andina division, the Chilean copper producer said on January 27.

The commodities market is a fickle beast, and few know that better than Giulio Bonifacio, chief executive officer and president of Nevada Copper, which has given its Pumpkin Hollow project the green light.

There is more to excite the metals industry than the batteries boom, with the global economy’s gradual emergence from the 2008 recession boding well for metal demand, according to Lord Copper.

Tight supplies and trader buying continued to push spot cobalt prices higher in the week ended Friday January 26, but currency moves deterred large spot purchases of cobalt in the second half of last week. 

Chinese ferro-silicon prices have been steady in the past week, stabilizing losses made through the month when idled production was restarted; meanwhile, the European price set another record high, and US prices climbed after a period of inactivity due to strong overseas prices. Check the latest global ferro-silicon wrap here.

Major Chinese stainless steel mill Tsingshan Group has raised its high-carbon ferro-chrome tender price for February delivery due to tight supplies both domestically and overseas on Monday after Baosteel and Taiyuan Iron & Steel raised ferro-chrome tender prices for February last week.

What to read next
Fastmarkets proposes to amend the frequency of the publication of several US base metal price assessments to a monthly basis, including MB-PB-0006 lead 99.97% ingot premium, ddp Midwest US; MB-SN-0036 tin 99.85% premium, in-whs Baltimore; MB-SN-0011 tin 99.85% premium, ddp Midwest US; MB-NI-0240 nickel 4x4 cathode premium, delivered Midwest US and MB-NI-0241 nickel briquette premium, delivered Midwest US.
The news that President-elect Donald Trump is considering additional tariffs on goods from China as well as on all products from US trading partners Canada and Mexico has spurred alarm in the US aluminium market at a time that is usually known to be calm.
Unlike most other commodities, cobalt is primarily a by-product – with 60% derived from copper and 38% from nickel – so how will changes in those markets change the picture for cobalt in the coming months following a year of price weakness and oversupply in 2024?
Copper recycling will become increasingly critical as the world transitions to cleaner energy systems, the International Energy Agency (IEA) said in a special report published early this week.
Fastmarkets proposes to lower the frequency of its assessments for MB-AL-0389 aluminium low-carbon differential P1020A, US Midwest and MB-AL-0390 aluminium low-carbon differential value-added product US Midwest. Fastmarkets also proposes to extend the timing window of these same assessments to include any transaction data concluded within up to 18 months.
Fastmarkets invited feedback from the industry on its non-ferrous and industrial minerals methodologies, via an open consultation process between October 8 and November 6, 2024. This consultation was done as part of our published annual methodology review process.