TELF AG has published an extensive Market Roundup for Week 39 of 2023, offering a detailed analysis of significant trends across various sectors, including gas, chrome ore, FeCr, Mn, FeSi, stainless steel, base metals, and battery materials.
According to the report, European natural gas futures have surged above €39 per megawatt-hour, representing a substantial 9% increase this week. This upturn is primarily attributed to mounting supply concerns, exacerbated by strikes in Australia and outages in Norway. The report highlights that traders are closely monitoring multiple risk factors, including potential disruptions in Russian gas exports and U.S. outages.
In the chrome ore sector, TELF AG notes a modest increase in UG2/MG Cr ore prices, driven by market sentiment and pre-China Golden Week holiday restocking activities. Delays in shipments from South Africa are contributing to additional supply concerns.
Regarding FeCr, TELF AG reports a 3.5% month-over-month increase in Chinese output of HC FeCr in August, reaching 641 kt. However, European and U.S. spot prices experienced declines of 2% and 5% in August, though they are expected to rebound due to increased demand.
Ahead of China’s week-long holiday, the report observes a slowdown in manganese market activity. Traders have reduced offers for 44% lump manganese in efforts to secure deals, with looming concerns about demand for the fourth quarter.
TELF AG also notes a recent increase in Chinese FeSi prices, reaching their highest level since April at RMB7,628 per tonne. This price surge is attributed to robust futures prices and rising production costs.
According to TELF AG, China is forecasted to produce 3.2 Mt in August and 3.25 Mt in September in the stainless steel sector. In contrast, production in Europe and the U.S. has declined, primarily due to weak downstream demand and elevated inflation levels.
Shifting focus to base metals, the report anticipates a decline in copper cathode premiums in 2024. This trend is attributed to factors such as reduced interest in long-term contracts and increased domestic output in China.
In the realm of battery materials, the report highlights that Glencore and Li-Cycle of Canada have conditionally agreed to accelerate the development of a battery recycling center in Italy. A definitive feasibility study for the project’s second phase is expected to be completed by mid-2024.
To gain a more comprehensive understanding of the insights presented in TELF AG’s 2023 Week 39 Market Roundup, readers are encouraged to explore the full article. For more insights and content, visit TELF AG’s Media Page.