Argus Minor Metals Global Market Prices, News and Analysis

Argus Minor Metals Global market prices, news and analysis

Issue 15-34 | Tuesday 13 October 2015

Market Highlights prICES

Market snapshot Analysis: Lithium mines line up battery supply 13 Oct Unit Low High ± The prospects for increased lithium demand in the coming years run counter to general weakness in the minor met- Antimony Regulus grade II min 99.65% Sb du als markets, as projects are bought up in the US and supply $/t 5,850 5,950 -112 Rotterdam lines put in place for the next generation of lithium prod- Cobalt ucts. p7 Min 99.8% alloy grade du Rotterdam $/lb 12.80 13.50 - Indium Analysis: European magnesium prices weaken Min 99.99% du Rotterdam $/kg 230.00 290.00 - The European magnesium market has fallen to a fresh eight- Manganese year low after six weeks of stability, but renewed demand is Flake min 99.7% du Rotterdam $/t 1,480 1,520 -100 expected in November as consumers look to secure supplies Tungsten for early 2016. p7 APT du Rotterdam $/mtu WO3 175.00 185.00 -5.000 Markets: Prices resume fall post China holiday Tantalum Prices for several metals fell following the Golden Week Min 99.8% du Rotterdam $/kg 315.00 325.00 -7.50 0 national holiday (1-7 October), as producers lowered their ± value represents week-on-week change offers in response to weak demand. p2-6 Manganese flake 99.7pc du Rotterdam, $/t LME calls for tailored EU metals regulation 2,100 The risks in metals trading are different from those in the 2,000 financial markets and require tailored EU regulation, the 1,900 London Metal Exchange (LME) said. p9 1,800

Vanadium: Market to cut back amid oversupply 1,700

The vanadium market is turning around and expected to go 1,600 through a period of production cutbacks and restocking, after several years of oversupply, US-based vanadium, molyb- 1,500 denum and titanium distributor Motiv Metals said. p9 1,400 14 Apr 15 28 May 15 14 Jul 15 27 Aug 15 13 Oct 15 contents

Market commentary 2-6 Electronic metals prices 2 Battery metals prices 3 Light metals prices 4 High-temperature metals prices 5 Market news and analysis 7-16 The service also incorporates price assessments Price indexes (monthly averages) 17-18 from MetalPrices.com, which Argus Media acquired Price summary 19-23 in January 2015.

Europe market COMMENTARY Prices

High-temperature metals lead losses Electronic metals price assessments Markets for high-temperature and light metals in particular 13 Oct Unit Low High ± moved down to fresh lows following recent stability as persistent weak demand eroded offer prices. Arsenic Min 99% du Rotterdam $/lb 0.90 1.05 - Min 99% fob US (09 Oct) $/lb 0.98 1.20 0.010 Antimony Bismuth The range for 99.65pc grade II metal narrowed to $5,850- Min 99.99% du Rotterdam $/lb 4.90 5.30 - 5,950/t from $5,925-6,100/t previously as the market re- Bismuth min 99.99% ex-works China Yn/t 70,000 72,000 -3,500 mained under downward pressure. Stocks are building up in Bismuth min 99.99% fob China $/lb 5.00 5.30 -0.200 Bismuth Ingot min 99.99% fob US Hunan province warehouses despite the recent closure of a $/lb 4.60 5.05 -0.100 number of producers and export prices fell by $100/t. (09 Oct) Gallium Min 99.9999% ex-works China Yn/kg 1,150 1,250 - Cadmium Min 99.99% ex-works China Yn/kg 850 950 - Consistent demand saw price ranges for the metal rise at Min 99.99% fob China $/kg 135.00 160.00 - the top end, assessed up to 37-44¢/lb and 39-45¢/lb for Min 99.99% cif Main Airport $/kg 180.00 200.00 - 99.95pc and 99.99pc material respectively. Indian consum- Germanium ers continued to buy up available material from European Dioxide min 99.999% ex-works China Yn/kg 7,30 0 8,000 - producers and were willing to pay higher prices for prompt Dioxide min 99.999% fob China $/kg 1,250 1,350 - Dioxide min 99.99% du Rotterdam $/kg 1,145 1,195 - delivery as the festival season approaches. Metal (zone refined ingot) min Yn/kg 10,800 11,800 - 99.999% ex-works China Cobalt Metal min 99.99% cif Main Airport $/kg 1,725 1,800 - Prices were assessed flat for a third week with trading activ- Min 99.999% fob China $/kg 1,750 1,850 - ity curtailed by London Metal Exchange week. Russian-grade Indium Min 99.99% du Rotterdam $/kg 230.00 290.00 - 99.3pc metal held at $12.40-13/lb, with 99.6pc chemical Min 99.99% ex-works China Yn/kg 1,500 1,700 - grade used widely in the battery sector at $12.60-13.20/ Min 99.99% fob China $/kg 240.00 280.00 - lb. Alloy-grade 99.8pc metal remained in a $12.80-13.50/lb Ingot min 99.99% fob US (09 Oct) $/kg 240.00 300.00 -2.500 range. But a spread appears to be opening between participants' views of the market ahead of annual negotiations. Min 99% ex-works China Yn/kg 1,300 1,500 - Selenium Dioxide min 99% ex-works China Yn/kg 85.00 95.00 - Magnesium Min 99.5% du Rotterdam $/lb 8.00 10.00 - Lower Chinese export prices weighed on the market, which moved down after holding steady since the start of Septem- Min 99.5% fob US (09 Oct) $/lb 7.50 10.00 -0.375 ber (see separate story). The range for 99.9pc ingot fell to Powder min 99.9% ex-works China Yn/kg 140.00 160.00 - $2,050-2,100/t, from $2,080-2,120/t previously and a fresh Tantalum Tantalite basis 30% Ta O du Rot- 2 5 $/lb Ta O 60.00 65.00 -2.500 eight-year low. Sellers reported deals at $2,080/t for single terdam 2 5 25t containers being shipped in early November. Min 99.8% du Rotterdam $/kg 315.00 325.00 -7.50 0 Tellurium Manganese 99.99% ex-works China Yn/kg 290.00 330.00 - The flake market fell by $100/t in the past week to $1,480- Min 99.99% du Rotterdam $/kg 40.00 60.00 -2.500 1,520/t, its lowest level since November 2006, on weak Min 99.95% fob US (09 Oct) $/kg 45.00 65.00 -12.500 demand from ferro-alloy producers that supply to the steel Zirconium sector. Chinese exporters offered material at $1,500-1,550/t Fused zirconia 98.5% ZrO ex-works Yn/t 18,800 19,000 - fob, down by $50/t. Consumer demand in the construction China Oxychloride 36% Zr(Hf)O ex-works 2 Yn/t 8,200 8,800 - and energy sectors, where manganese-contained steel is China used in tubes and pipes, has been weakening in 2015, with Oxychloride 36% Zr(Hf)O2 fob China $/t 1,420 1,470 - flat steels lagging but also getting weaker. There have been Silicate 65% Zr(Hf)O2 ex-works China Yn/t 9,400 9,700 - production cuts at southern and eastern European steelmak- Sponge 99.4% Zr+Hf ex-works China Yn/kg 152.00 157.0 0 - ers and news this week that SSI in the UK has failed to find ± value represents week-on-week change

a buyer and will shut permanently its 2.5mn t/yr blast steel- Prices making furnace after going into liquidation. Battery metals price assessments Molybdenum 13 Oct Unit Low High ± There was little sign of an end to the recent slide in roasted concentrate prices, with material assessed lower for a third Antimony week at $4.40-4.60/lb from $5.00-5.20/lb previously. Ingot min 99.65% ex-works China Yn/t 37,000 39,000 -500 Ingot min 99.65% fob China $/t 6,100 6,300 -100 Min 99.65% cif US ports (09 Oct) $/lb 2.88 3.03 -0.020 Silicon Regulus grade II min 99.65% Sb du Rot- $/t 5,850 5,950 -112 Reluctance among suppliers to cut their offer prices despite terdam Regulus Trioxide grade min 99.65% Sb low demand from consumers kept prices unchanged for a $/t 5,950 6,050 -150 du Rotterdam third week. But the market could make further gains in the Trioxide min 99.5% ex-works China Yn/t 34,000 35,000 -500 coming weeks, having bottomed out last month. The end of Trioxide min 99.5% fob China $/t 5,400 5,700 -100 the rainy season in China will increase hydropower costs in Cadmium the south of the country and in turn the cost of silicon pro- Min 99.99% du Rotterdam $/lb 0.39 0.45 0.005 duction in the region. There have also been production cuts Min 99.99% ex-works China Yn/t 7,8 0 0 8,800 - in China, and supplies are expected to tighten. Min 99.99% cif India Rs/kg 114.00 118.00 - Min 99.99% fob US (09 Oct) $/lb 0.37 0.43 - Tantalum Min 99.95% du Rotterdam $/lb 0.37 0.44 0.005 Min 99.95% fob US (09 Oct) $/lb 0.35 0.40 - Ore prices have come under pressure from overcapacity in Min 99.95% cif India Rs/kg 103.00 110.00 - the downstream sector, falling to $60-65/lb Ta2O5 for 30pc Oxide min 99.5% ex-works China Yn/t 10,000 11,500 - grade material from $62-68/lb Ta2O5 a week earlier, while Cobalt 99.8pc metal moved down to $315-325/kg from $320-335/ (Electrolytic metal) min 99.8% ex-works Yn/kg 210.00 220.00 2.000 kg. The Tantalum-Niobium International Study Center has China warned its members to be vigilant after a container load Chloride min 24% ex-works China Yn/t 45,500 48,000 - Min 99.8% alloy grade du Rotterdam $/lb 12.80 13.50 - Rwandan columbite-tantalite ore tagged by the International Min 99.8% fob US (09 Oct) $/lb 13.20 13.50 - Tin Research Industry's Tin Supply Chain Initiative (iTSCi) Min 99.6% chemical grade du Rotterdam $/lb 12.60 13.20 - was reported stolen recently in the Tanzanian port of Dar es Min 99.3% Russian grade du Rotterdam $/lb 12.40 13.00 - Salaam, the main export shipping route for minerals out of Min 99.3% fob US (09 Oct) $/lb 12.75 13.05 - central Africa. Oxide 72% ex-works China Yn/kg 150.00 154.00 - Powder min 99.8% ex-works China Yn/kg 230.00 250.00 - Tellurium Sulphate min 20% ex-works China Yn/t 39,500 42,500 - The price range narrowed amid limited business, moving Tetroxide min 73% ex-works China Yn/kg 153.00 157.0 0 - Lithium cobalt oxide to $40-60/kg from $40-65/kg. Consistently low prices have Min 60% Co ex-works China Yn/kg 169.00 171.00 - pushed some producers to consider halting production to Mercury wait for any future rises. Persistent low offers could result Min 99.99% du Rotterdam $/Flask 1,800 2,100 - in larger and more robust producers edging out smaller busi- ± value represents week-on-week change nesses while absorbing losses. London Metal Exchange official closing cobalt prices $/t Tungsten 12 Oct 5 Oct ±

Ammonium paratungstate (APT) resumed its decline after Cash buyer 27,49 0 27,74 0 -250 holding steady for the past two weeks, with prices down to Cash seller 27,50 0 27,750 -250 $175-185/mtu from $180-190/mtu. Prices had been at their 3-month buyer 27,250 27,50 0 -250 lowest levels since July 2009, but with the latest decline 3-month seller 27,750 28,000 -250 have fallen to a level not seen since March 2005. 15-month buyer 27,730 27,710 20 15-month seller 28,730 28,710 20 Vanadium London Metal Exchange cobalt stocks t Thinly-traded pentoxide fell further after stabilising in the 12 Oct 5 Oct ± previous week, with prices for 98pc fused flake assessed at $2.50-3.00/kg from $2.90-3.20/kg previously. Stocks 558 558 -

us market commentary prices

Markets extend losses on destocking Light metals price assessments The US dollar weakened in recent days on indications that 13 Oct Unit Low High ± the Federal Reserve could hold off on raising interest rates before the end of the year. The strong dollar has weighed on Magnesium exports of minor metals in recent months, and prices contin- Alloy min 90% Mg AZ91 ex-works China Yn/t 14,000 14,300 - ued to fall in the past week. Alloy min 90% Mg AZ91 fob China $/t 2,320 2,370 - Min 99.9% ddp US $/kg 1.73 1.83 -0.020 Min 99.9% du Rotterdam $/t 2,050 2,100 -25 Cobalt Min 99.9% ex-works China Yn/t 12,400 12,800 - The market held onto late September's gains for a second Min 99.9% fob China $/t 2,040 2,100 -20 week, with 99.3pc grade metal assessed flat at $12.75- Powder 99.9% Mg 20-80 mesh ex-works Yn/t 13,500 13,700 - 13.05/lb and 99.8pc grade at $13.20-13.50/lb. Global prices China have found some support from news of Glencore subsidiary Powder 99.9% Mg 20-80 mesh fob China $/t 2,150 2,200 - Katanga Mining's 18-month production suspension and the Manganese Chinese government's stockpiling of 400t of metal. Briquette 97% Mn fob China $/t 1,550 1,600 -30 Electrolytic metal min 99.7% fob US (08 $/lb 1.09 1.12 - Oct) Indium Flake 99.7% Mn ex-works China Yn/t 9,500 9,700 -200 The extended run of losses continued on an absence of Flake min 99.7% fob China $/t 1,500 1,550 -30 demand, with 99.99pc metal assessed down to $240-300/lb Flake min 99.7% du Rotterdam $/t 1,480 1,520 -100 from $245-300/lb. But the market remained higher than in Lump 95% Mn fob China $/t 1,590 1,670 -30 Europe at the top end of the range, commanding a premium Silicon for prompt delivery. 5-5-3 min 98.5% Si dat Chinese ports Yn/t 10,300 10,500 - 5-5-3 min 98.5% Si fob China $/t 1,610 1,640 - 5-5-3 min 98.5% Si ddp Europe works €/t 2,000 2,050 - Magnesium 5-5-3 min 98.5% Si ddp US $/lb 1.19 1.24 - Lower offer prices appeared on the market as suppliers tried 4-4-1 min 99% Si dat Chinese ports Yn/t 11,050 11,250 - to entice potential buyers off the sidelines. The range for 4-4-1 min 99% Si fob China $/t 1,750 1,780 - 99.9pc metal edged down by 2¢/lb to $1.73-1.83/lb. Demand 4-4-1 min 99% Si ddp Europe works €/t 2,120 2,170 - was not expected to rise in the near term with consumers Titanium well supplied and the focus turning to annual contracts. Concentrate 50% TiO ex-works China 2 Yn/t 770 800 - (VAT unpaid) Concentrate 46% TiO ex-works China Silicon 2 Yn/t 510 530 - (VAT unpaid) The 5-5-3 market held at a five-year low of $1.19-1.24/lb. The Ingot min 99% Ti pure TA1 ex-works Yn/t 58,000 60,000 - market has found some support as a recent wave of lower China Ingot min 99% Ti pure TA2 ex-works offers hitting the market has slowed, and a recent move by Yn/t 56,000 58,000 - China consumers to switch over to aluminium scrap has started to Ingot min 99% Ti pure TA3 ex-works Yn/t 60,000 62,000 - ease with scrap availability tightening. China

Slag min 92% TiO2 ex-works China Yn/t 4,200 4,300 - Tellurium Sponge 99.7% Ti ex-works China Yn/t 48,000 49,000 - Falling demand has seen sellers increasingly look to offload Sponge 99.6% Ti ex-works China Yn/t 47,000 48,000 - Sponge TG-Tv 10x30mm du Rotterdam $/kg 5.00 5.20 - inventory rather than wait for prices to rebound. The range Tetrachloride min 99.9% TiCl ex-works 4 Yn/t 5,600 5,700 - for 99.95pc metal dropped by $12.50/kg to $45-65/kg from China $55-80/kg a week earlier, its lowest level since March 2007. Scrap 6Al 4V bulk weldable fob US (08 $/lb 3.25 3.35 - Oct) London Metal Exchange official closing aluminium price $/t Scrap 6Al 4V clips fob US (08 Oct) $/lb 2.95 3.05 - Scrap grade 1 CP solids fob US (08 Oct) $/lb 2.15 2.20 -0.050 12 Oct 5 Oct ± Scrap grade 2 CP solids fob US (08 Oct) $/lb 1.85 1.95 -0.050 Cash buyer 1,607.0 0 1,546.50 60.50 Scrap grade 3-4 CP solids fob US (08 Oct) $/lb 1.65 1.70 -0.025 Cash seller 1,607.50 1,547.0 0 60.50 Scrap 6Al 4V turnings aero quality fob $/lb 2.10 2.20 - 3 months buyer 1,626.50 1,555.50 71.00 US (08 Oct) 3 months seller 1,627.0 0 1,556.00 71.00

china market COMMENTARY prices

Markets resume downward trend post holiday High-temperature metals price assessments Prices for several metals fell following the Golden Week 13 Oct Unit Low High ± national holiday (1-7 October), as producers lowered their offers in response to weak demand. Chromium (alumino-thermic) min 99% du Rot- $/t 7,9 0 0 8,350 -225 terdam Antimony (aluminothermic) min 99% Cr ex- Yn/t 60,000 65,000 - Metal and trioxide producers continued to reduce their of- works China fer prices. But business was thin as buyers waited for the Molybdenum market to bottom out. The range for 99.65pc metal was as- Oxide min 57% Mo du Rotterdam $/lb Mo 4.40 4.60 -0.600 sessed at Yn37,000-39,000/t, a Yn500/t decrease from before Oxide min 57% fob US (08 Oct) $/lb 5.70 5.85 -0.075 the holiday, while trioxide prices also declined by Yn500/t to Rhenium Yn34,000-35,000/t. APR min 69.2% Re (basic grade) du $/kg Re 1,350 1,450 - Rotterdam APR min 69.4% Re (catalyst grade) dp Bismuth $/kg Re 2,600 2,750 - Rotterdam Prices continued to retreat from September's two-month APR min 69.4% Re ex-works China Yn/kg 8,400 9,300 - high. Producers were looking to liquidate stocks before Pellets min 99.9% Re dp Rotterdam $/lb 870 1,130 - prices fall further but buying interest has ebbed as consum- Tungsten ers have finished restocking and are avoiding capital tight- APT du Rotterdam $/mtu WO3 175.00 185.00 -5.000 ness. Prices for 99.99pc metal fell to Yn70,000-72,000/t from APT fob China $/mtu WO3 168.00 178.00 -2.000 Yn72,000-75,000/t previously. APT min 88.5% ex-works China Yn/t 89,000 91,000 -3,000

Carbide min 99.7% ex-works China Yn/kg 150.00 153.00 -4.000 Cobalt Carbide powder (3-4micron) fob $/kg 24.00 25.00 -0.500 The market lost its pre-holiday upward momentum in recent China days as consumer demand remained unchanged. The market Oxide (Yellow/Blue oxide) fob China $/t 17,8 0 0 18,800 -200 was pushed up by national stockpiling late last month, and Oxide min 99.95% ex-works China Yn/t 105,000 109,000 -3,500 was assessed up by Yn2,000/t at Yn210,000-220,000/t. Prices Concentrates min 65% ex-works China Yn/t 59,000 61,000 -1,000 could turn lower as buyers have not accepted higher prices. Vanadium Pentoxide fused flake min 98% du $/lb V O 2.50 3.00 -0.300 Rotterdam 2 5 Gallium Pentoxide 98% V2O5 ex-works China Yn/t 38,000 40,000 -1,500 Prices remained rangebound at Yn850-950/kg, although pro- ± value represents week-on-week change ducers expect more orders from overseas consumers as they are likely to replenish stocks this month. Export prices have London Metal Exchange official closing molybdenum prices $/t been steady at $135-160/kg fob for more than two weeks. 12 Oct 5 Oct ±

Cash buyer 10,200.00 11,050.00 -850.00 Indium Cash seller 10,700.00 11,550.00 -850.00 Producers were reluctant to accept lower prices in view of 3-month buyer 10,200.00 11,050.00 -850.00 firm production costs and prices were assessed unchanged 3-month seller 10,700.00 11,550.00 -850.00 for a second week at Yn1,500-1,700/kg for 99.99pc metal, 15-month buyer 10,440.00 11,300.00 -860.00 with 99pc grade at a Yn200/kg discount. The Wuxi Stain- 15-month seller 11,440.00 12,300.00 -860.00 less Steel Exchange listed 99.99pc grade at Yn1,403/kg on 13 October. Export prices for 99.99pc grade held at $240-250/ London Metal Exchange molybdenum stocks t kg fob, with no deals reported. 12 Oct 5 Oct ±

Magnesium Stocks 132 132 - Prices were rangebound between firm production costs and low consumer buying. Stocks accumulated after the holiday and producers are looking to sell off stocks, pointing to downside potential. Producers remain cautious about the

outlook for the remainder of the year amid tight cash flow additional material. The market is expected to remain under and year-end stock liquidation. downward pressure from sustained oversupply.

Manganese Titanium The market resumed its decline on weak demand from stain- Sponge prices have been rangebound for more than a month less steelmakers. Flake prices were assessed Yn200/t lower on sparse business from downstream mill product manufac- at Yn9,500-9,700/t for 99.7pc grade, its lowest level since turers. There has been a small number of enquiries, none of November 2006. A large stainless steelmaker that purchased which translated into concluded deals. Producers have con- 320t/month of 97pc lump in 2014 has not purchased lumps trolled output, with profit margins squeezed by low prices for nearly six months as they have cut manganese applica- paid by mill products manufacturers and higher production tion in stainless production. In line with the lower domestic costs. Prices for 99.7pc grade remained in a Yn48,000- prices, export prices dipped by $30/t to $1,500-1,550/t fob. 49,000/t range, with 99.6pc at a Yn1,000/t discount. Posco, one of the world's largest manganese consumers, has not begun its monthly purchase for October requirements. Tungsten Producers lowered their offer prices in view of reduced Selenium demand from the cemented alloy sector. Prices for 65pc Consumers were well supplied after restocking before the wolframite declined by Yn1,000/t to Yn59,000-61,000/t. holiday and prices were unchanged. The range for 99pc diox- Prices for ammonium paratungstate (APT) and carbide also ide held at Yn85-95/kg, with 99.9pc powder at Yn140-160/kg. declined in response to the downturn for raw material. Busi- Both markets ticked up by Yn5/kg in September, although ness has been thin as downstream buyers are seeing reduced dioxide prices subsequently fell back. Prices were expected orders from customers. to remain flat amid low import costs and weak consumption from the manganese and glass industries. Vanadium The pentoxide market resumed its decline as buying from Silicon ferro-vanadium and vanadium nitrogen alloy smelters has A number of smelters in Inner Mongolia resumed produc- eased on account of falling tender prices and reduced tion over the holiday period on tight spot supply, although demand from steelmakers. The range for 98pc flake fell to prices remained flat. Prices for 5-5-3 grade have been at Yn38,000-40,000/t, down from Yn40,000-41,000/t previously. Yn10,300-10,500/t for two weeks, with 4-4-1 grade also flat at Yn11,050-11,250/t. Export prices have been stable for Zirconium more than a month, although there has been active interest Production capacity utilisation of Chinese zirconium sponge from overseas buyers looking to build up inventory. has been falling on account of slow purchases from consumers inside and outside of China. Guangdong Orient Zirconic Tellurium Ind Sci & Tech and Aohan Huatai Metal Industry have not re- Spot trading has dried up and consumers are sufficiently sup- sumed operations. Prices for 99.4pc grade zirconium sponge plied by deliveries from long-term contracts and seldom buy have been in a Yn152-157/kg range since late August.

Fanya Metal Exchange indium stocks t Fanya Metal Exchange bismuth stocks t

3,650 20,000

3,600 19,600

3,550 19,200

3,500 18,800

3,450 18,400

3,400 18,000 02 Jan 15 14 Mar 15 24 May 15 03 Aug 15 13 Oct 15 02 Jan 15 14 Mar 15 24 May 15 03 Aug 15 13 Oct 15

market news and analysis

spite increased enquiries from consumers that are not fully Analysis: Magnesium resumes decline in Europe covered under full-year contract delivery requirements and The European magnesium market has fallen to a fresh eight- are looking for new supplies. year low after six weeks of stability. But renewed demand is The onset of China's dry season does not affect magne- expected next month as consumers look to secure supplies sium production costs — minor metals producers are in the for early 2016. the north of the country where power supply is mainly coal The market in Europe has dropped in line with lower fired. magnesium export prices from key supplier China. The range Freight rates have fallen to around $600/container, from for 99.9pc ingot in-warehouse Rotterdam has moved down as much as $1,500/container in the previous quarter. Rates to $2,050-2,100/t, having held steady at $2,080-2,120/t since are usually available on ships in the coming week or two, al- the start of September. The price in Europe was last this low though the trend this year has been for prices to rise around in February 2007. the start of a calendar month before falling in the following The European market has been in decline since May weeks. 2014 — falling demand and oversupply have weighed heavily European magnesium prices fell in the days after China on prices across minor metals markets. And there has been devalued its currency in mid-August, although some of that increased availability of aluminium alloy scrap with a high drop was absorbed by a subsequent increase in sea freight magnesium content, which some consumers have favoured rates. over higher-priced magnesium metal. But consumers are less keen to commit to longer-term A slowdown in Chinese demand has resulted in increased deliveries, opting instead for spot settlements to avoid build- aluminium scrap availability in the Atlantic basin. US mag- ing inventories. Demand for finished products has weakened nesium prices have fallen on this increased availability and and falling prices mean that they can probably restock at rising imports because of the stronger dollar. US prices had lower prices. been supported up to December by a shortage exports from Magnesium is primarily used as an alloy with aluminium, countries such as Russia and Kazakhstan. accounting for some 45pc of total world consumption. Magnesium prices in China have been steady for five Another 35pc is consumed in magnesium alloys in structural weeks — prices are close to output costs and producers metals, about 13pc in steel making, with the rest used in are reluctant to cut. But domestic demand from the down- electro-chemical and other sectors. stream aluminium, magnesium alloy and magnesium powder industries shows no signs of picking up after the low-demand Analysis: Lithium mines line up battery supply summer period. The prospects for increased lithium demand run counter to Chinese exporters have tried to hold prices stable since general weakness in the minor metals markets. But projects returning from the week-long national holiday at the start of are being bought in the US and supply lines established for this month, but international market fundamentals remain the next generation of lithium products. weak. Prices have dropped by $20/t to $2,040-2,100/t de- The acquisition of two US lithium exploration projects in Nevada by explorer Nevada Sunrise Gold reflects expecta- tions of increased demand, despite falling prices for other Magnesium min 99.9% du Rotterdam, $/t minor metals. 2,500 And share prices are reflecting optimism about the 2,400 lithium market's prospects. Australia-listed explorer Pilbara Minerals' shares rose by 21.5pc on 12 October to a 52-week 2,300 after it revealed a supply agreement for lithium-containing spudomene from its Pilgangoora project in Western Austra- 2,200 lia. Pilgangoora holds 52.2t grading at 1.28pc lithium oxide (LiO), which should yield 668,000t of LiO. 2,100 Prices for other battery and electronic minor metals, such as bismuth and indium, have fallen consistently for 2,000 02 Jan 15 14 Mar 15 24 May 15 03 Aug 15 13 Oct 15 months — bismuth is assessed at $4.90-5.30/lb in Europe, down from $10.60-11.20/lb at the start of this year, while

market news and analysis indium has dropped to $230-290/kg from $670-730/kg. And X car could prove an obstacle to widespread adoption. And markets will remain under pressure in the near term and there are questions surrounding the company's ability to ful- could remain lower into the second quarter of 2016, accord- fil orders ahead of the planned launch of the Mark 3 in 2017. ing to some market participants. The price trajectory of other battery and electronic met- The prospects for new and sustained commercial ap- als in recent years could offer warning signs — oversupply plications for lithium is largely attributable to battery and and lower-than-expected demand have driven down prices. electric-vehicle manufacturers such as US firm Tesla. Its am- The gallium market, for example, ramped-up production bitious production targets — 500,000 electric-powered cars capacity in anticipation of widespread adoption of LED light- a year by 2020 — would demand a significant jump in global ing. But the higher consumption failed to materialise, leaving production of lithium-ion batteries. a supply surplus that will take the market a long time to Tesla's under construction Gigafactory in Nevada will pro- absorb. duce 50 GWh/yr of battery capacity, absorbing high quanti- ties of lithium. Lithium: Nevada Sunrise to acquire two projects Nevada state holds significant lithium and lithium-brine Canada-based mineral exploration firm Nevada Sunrise Gold deposits, many of which are producing or in the process of is to acquire two additional lithium exploration properties in development. And US consumers are keen to source more Esmeralda County in the US state of Nevada. supply from closer to home. Supply arrangements for the According to an interim agreement, the Vancouver-based Gigafactory are in place with Canadian miner Pure Energy company will purchase the Clayton Northeast property, Minerals, which operates Nevada's Clayton Valley lithium which consists of 16 unpatented association placer claims brine project, and Bacanora Minerals, which is constructing totalling 526 acres (2km²), and the Jackson Wash property the Sonora project in northern Mexico. Much of the supply made up of 58 unpatented association placer claims totalling now is mined in Australia and South America. about 2,215 acres. And Tesla vehicles are not the only potential driver of Both properties are near the Silver Peak lithium mine market growth. The use of wall-mounted lithium-ion battery property operated by US specialty chemicals group Albe- systems could rise significantly as consumers seek to offset marle. rising electricity prices and fluctuations in grid supply. US Nevada Sunrise Gold announced last month that it had property developer Irvine plans to install battery-powered entered into an agreement to [purchase the Neptune lithium energy systems, supplied by Tesla, in each of its 15 office project in Clayton Valley, Nevada](http://direct.argusmedia. buildings to use at peak demand times. com/newsandanalysis/article/1097200). And demand for lithium-ion batteries used in personal A number of US lithium projects are under development, electronics, such as tablets, mobile phones and laptops, en- as explorers look to exploit resources outside traditional sures continuing demand as these devices become cheaper lithium-producing locations such as Australia and South and more accessible. America. But whether lithium consumption fulfils this promise Market sentiment is positive as lithium-ion battery remains to be seen. The $80,000 base price of Tesla's Model manufacturer Tesla has signed a number of agreements with producers, aimed at supplying its Gigafactory sites.

Lithium: Avalon to complete pilot project China Metals Week 2015 Canada's Avalon Rare Metals is due to complete a pilot plant 16-19 November programme at its Separation Rapids lithium project in Ke- Marriot Guangzhou Tianhe, China Discover global market outlook from three independent nora, Ontario, by the first quarter of next year. conferences for selected minor metals throughout the week: Lithium concentrate from the project will be available ▸ Antimony Conference ▸ Tungsten Conference for distribution in the first quarter, the company said. ▸ Electronic & Battery Metals Conference Avalon shipped a 30t bulk sample of crushed ore this

For enquiry, please contact Yuan Chang summer from the project and work is now under way in a at [email protected] Market Reporting German laboratory to process it. Consulting The sample will be processed using the company's flow illuminating the markets Events sheet to produce a high-purity lithium mineral (petalite)

market news and analysis concentrate in order to deliver further product samples to average $1,816/t this year and to rise to $2,000/t next year potential customers in the glass ceramics industry. and to $2,100/t in 2017, with growth increasing by 2.9pc next Critical materials consulting firm Stormcrow Capital esti- year and 4pc in 2017. mates that demand could reach 410,000t of lithium carbon- ate equivalent in 2025 compared with 200,000t in 2015. LME calls for tailored EU metals regulation The risks in metals trading are different from those in the Lithium: Electric car sales no threat to lead financial markets and require tailored EU regulation, the Lithium-ion batteries pose major competition to lead-acid London Metal Exchange (LME) said. batteries in electric cars but the proliferation of conven- “The LME supports EU regulators’ aims to increase trans- tional cars will keep overall lead demand stable over the parency and reduce risk in the markets," LME chief executive coming years according to an analyst at consultancy AME, Ian Garry Jones said. Warden. "But requiring the metals industry to comply with regula- Over 60pc of global lead is used in lead-acid batteries tion that is designed for other, completely different, asset in conventional cars, Warden told delegates at the annual classes may stifle participants’ ability to create world refer- London Metal Exchange Week seminar. But modern electric ence prices and manage their price risk," he said. vehicles use lithium-ion batteries. Electric car production is The wide scope of the EU's Markets in Financial Instru- the fastest-growing segment of the car industry, but these ments Directive (MiFID 2), Market Abuse Regulation, Bench- types of vechiles still make up only a small proportion of mark Regulation and European Market Infrastructure Regula- total sales — about 0.8pc of the 1.2bn units sold worldwide. tion mean that many in the LME markets, such as commodity Electric vehicle sales make up more than 1pc of total car traders, may face stringent new EU rules. sales in only four countries. But little attention has been focused by regulators, and Demand for new conventional cars, particularly in to some extent the industry, on how the new rules will af- emerging countries, is so high compared with electric ve- fect the metals markets in particular, the LME said. hicles that alternative metals in car batteries will not pose a “The LME is working with regulators to ensure that significant threat to lead demand for more than seven years, the cumulative effect of these rules on the metal trading Warden said. community is not underestimated," LME head of regulation Unlike in other metals, the supply response from produc- Kirstina Combe said. ers is fairly inelastic. Lead is mainly mined as a by-product The implementation dates of many of these rules are of other metals such as copper, silver or zinc and production rapidly approaching, and participants throughout the metals levels are dominated by the prices of the other metals. value chain should be thinking about what the changes mean Warden expects supply levels and demand growth to be for their business, she said. flat this year, but supply growth is likely to increase slightly over the next few years because of new projects. Vanadium: Market to cut back amid oversupply Several big closures of zinc-lead mines have not led to an The vanadium market is turning around and expected to go aggressive reduction in lead supply because production has through a period of production cutbacks and restocking, risen elsewhere. The closures of the Century mine in Aus- after several years of oversupply, the president of US-based tralia and the Lisheen mine in Ireland this year will remove vanadium, molybdenum and titanium distributor Motiv Met- about 120,000 t/yr from the supply chain. als, Terry Perles, said. China remains by far the biggest producer of the metal, Annual vanadium production has outstripped consump- making up 42pc of global refined lead output and 52pc of tion since 2010, except in 2013, Perles said. Vanadium stocks global lead mine output. This production may decline by grew during this period, but are expected to decline to the about 3pc in the medium term because the country has equivalent of less than a month of consumption, he said. introduced new environmental legislation that stipulates a Global vanadium production increased at a compound minimum mine size, requires better water treatment and annual growth rate (CAGR) of 5.5pc between 2003 and 2015, caps smelters's emission levels. with 95pc of this increase coming from China. The country The cost of production is on a declining trend, like in accounts for 54pc of global vanadium supply compared with other base metals, and will not provide any price support South Africa's 15pc share and Russia's 10pc. Europe had a 6pc if lead prices start to decline. Warden expects prices to share, with most of its output coming from South African

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declined significantly this year and will level out at 2,400 Vanadium pentoxide fused flake min 98pc du Rotterdam, $/lb V2O5 t/yr by the end of this decade. Commercial shipbuilding is 4.5 dominated by region-specific vessels such as icebreakers for arctic shipping and vessels designed for arctic explora- 4 tion and inland waterways. But a larger share of demand for titanium comes from military shipbuilding, including submarines, mini submarines and navy surface vessels. 3.5 Another major area of industrial titanium demand in Russia is power engineering, mainly in nuclear power plants 3 — with demand closely aligned with the timing of nuclear projects. Titanium is used in condensers built in Russia both 2.5 for the Russian market and for export. 14 Apr 15 28 May 15 14 Jul 15 27 Aug 15 13 Oct 15 Titanium is also consumed by the non-ferrous metal manufacturing and chemical processing industries in Russia. raw materials. It enjoys steady demand from the oil and gas sector for use Motiv expects vanadium production to fall to 82,000t in in production equipment, although this may change given 2015 from 92,000t last year, because of price declines and the fall in oil prices, Metz noted. Russian demand for tita- the bankruptcy of South Africa's Evraz Highveld Steel and nium in welded tubes dropped sharply this year, as a result Vanadium and as blast furnaces that produce vanadium slag of the downturn in this sector, to 450t from 850t in 2014, are idled in China. Most of this reduction will happen in the but is set to recover to average 700 t/yr in the coming years. second half of this year as blast furnaces close, with 65-70pc Over the next 5-6 years, overall Russian industrial demand of global vanadium production coming from slag gener- for titanium is set to average 5,000-6,000 t/yr, compared ated as a by-product of the steel industry, while some 20pc with 6,500t in 2014. comes from primary titanium-iron-magnetite ore and 13pc Russian aerospace accounts for 28pc of titanium con- from secondary materials including oil industry waste. sumption in airframes and 29pc in engines. Titanium demand Just eight steel mills in the world generate raw materials in this sector is projected to rise to 8,000 t/yr from 7,000 t/ for 80pc of vanadium production and the vanadium industry yr by the start of the next decade, Metz said. is losing this supply as the mills cut output, Perles said. Russian aircraft production is growing and is led in the Vanadium consumption growth has been consistently commercial sector by the Sukhoi SuperJet, which is expect- higher than steel production, which is increasing at a CAGR ed to see a 60pc increase in build rates. Production capacity of 5pc. Two-thirds of the growth in vanadium consumption is set to reach 48 aircraft in 2019 from 21 in 2015. Output of comes from increasing steel production and about one-third the new MS21 single aisle aircraft is expected to triple to 18 from the rising vanadium content in steel. Motiv expects this by 2021 from 6 built in 2015. split to change to 50:50. Build rates are also rising in the defence sector, including for the military Sukhoi jet and Ilyushin aircraft. The produc- Titanium: Russian demand to remain steady tion of Be-20 amphibious aircraft is set to rise to six each Russian titanium consumption is expected to remain stable year by the end of the decade from two next year. at 12,000-13,000 t/yr of mill products over the next 5-6 years, according to the president of VSMPO-Tirus US, Mike Titanium: Japanese shipments rising in 2015 Metz, who was speaking at the ITA Titanium 2015 conference Japanese titanium sponge shipments are set to rise to in Orlando, Florida. 45,000t this year from around 35,000 t/yr in 2013-2014, Toho New commercial aircraft programmes are expected to Titanium president and Japan Titanium Society chairman grow, although they will add to stable business in industrial Kazuo Kagami told the ITA Titanium 2015 conference. market. The titanium market in Russia differs from that in Supplies to domestic and export markets have fallen in western countries in that it is dominated by industrial ap- recent years from over 55,000t in 2012, as a result of the in- plications led by shipbuilding, which alone accounts for 25pc creased use of scrap and lower demand for titanium sponge, of consumption. particularly in the industrial markets as nuclear projects Demand in shipbuilding peaked at 4,200t in 2014 but were delayed in the wake of the Fukushima disaster. But

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Japanese titanium manufacturers are now seeing an increase end of the first quarter, industry consultancy TZMI managing in demand for both sponge and mill products and are gradu- director David McCoy told the ITA Titanium 2015 conference ally increasing production. But while volumes are increas- in Orlando. ing, this is not being matched by an improvement in prices Output from the largest aerospace-grade titanium pro- according to market participants. ducer, Russian firm VSMPO-Avisma, has dropped to around Kagami told the conference that given the slowdown in 30,000t from 42,000t in 2012, McCoy said. The company is the Chinese economy, there is some uncertainty about the not fully integrated and relies on imports of raw material market, but infrastructure projects in the Middle East are ilmenite, from Ukraine and Australia. But VSMPO-Avisma expected to boost titanium demand. plans to invest $300mn-400mn to develop the Centralnoye The Japan Titanium Society forecast that Japanese titanium-zircon sands deposit in Russia to provide a local titanium mill product shipments will rise to 14,000t this year source of ore. from 13,000t last year, based on shipments of 7,000t in the Japan's Osaka Titanium is running slightly below 2012 first half of 2015. The metal is being incorporated into new production of 40,000t, while fellow Japanese producer Toho alloys and applications in Japan, which is helping to bolster Titanium has output of around 32,000t, McCoy said. Toho domestic demand. Titanium sheet is being used in heat Titanium commissioned its Wakamatsu plant in 2011 but cut exchangers for ocean thermal energy conversion in Okinawa output at Chigasaki last year. Japan's exports dropped to and Hawaii. 16,000t last year, from 19,000t in 2013 and 31,000t in 2012, New alloys include the TNCZ strength, lightweight alloy in line with lower production. (Ti-20Nb-5Cr-4Zr) developed by Daido Steel. A titanium-alu- But Toho Titanium has entered a joint venture to build a minium-iron alloy (Super-TIX51–Ti-5Al-1Fe) which offers good titanium sponge plant in Saudi Arabia with titanium dioxide balance between machinability and workability is used in manufacturer Cristal Global and Saudi state-owned Tasnee. the connecting rod for the new Yamaha sports motorcycle. The 15,600 t/yr facility is under construction and target- Meanwhile Toyota Mirai, the first commercial hydrogen fuel ing first production in late 2017. It will benefit from lower call car, uses titanium in separators for its fuel cell stack energy costs, compared with Japan, and from associated which forms part of the powertrain. Titanium is also used in infrastructure at the existing Yanbu industrial complex. roof tiles, including in temple renovation projects, and the TZMI estimates US sponge production increased to roof on the Kyushu National Museum is made from blue an- 12,000-15,000 t/yr last year from 9,000-10,000 t/yr three odized titanium and worked from a 120m single roof sheet. years earlier — official industry figures are not released, particularly following industry consolidation. “US capacity Titanium: Sponge capacity overhang persists is around 24,000 t/ty and operations are running at 50pc of Global titanium sponge capacity continues to outstrip de- capacity,” McCoy said. mand despite growth in its main consuming market, aero- TZMI puts China’s titanium sponge production at 68,000t, space. an estimated 45pc utilisation rate of its 150,000 t/yr capac- Stocks of titanium sponge worldwide were 25,000t at the ity. Capacity has raced ahead of output, growing by 50pc in the past 10 years to account for 40pc of the global produc- Titanium sponge TG-Tv 10x30mm du Rotterdam, $/kg tion capacity. 6.2 China exported 6,000t of titanium sponge in last year, 6 compared with 4,000t in 2013 and 5,000t in 2012, McCoy said. 5.8 Under Beijing's 12th five-year plan, China is phasing out titanium sponge plants with less than 5,000 t/yr of capac- 5.6 ity and is targeting reduced electricity costs of 26 MW/t of 5.4 sponge. Any new Chinese plant must have a capacity of at least 10,000 t/yr. 5.2

5 Titanium: VSMPO to increase machined output 14 Apr 15 28 May 15 14 Jul 15 27 Aug 15 13 Oct 15 Russian titanium producer VSMPO-Avisma is increasing the proportion of finished machined forgings and stampings in its

market news and analysis titanium mill product mix. government extended sanctions related to arms non-prolif- The company is on course to produce between 28,500- eration in Syria to Russian state arms company Rosoboronex- 29,000t of titanium mill products this year, executives told port, a subsidiary of state corporation Rostec which also Argus. holds a minority stake in the titanium producer. But neither The company reported output of 29,264t of titanium mill the US nor the EU have extended sanctions to Rostec-affiliat- products in 2014, up from 28,855t the previous year. While ed non-defence companies. the company’s melting volumes are rising from year to year, Boeing and VSMPO-Avisma told Argus that their long-term the mill product volumes this year reflect an increased pro- contracts and new business have not been impacted by sanc- portion of finished machined forgings and stampings in the tions. “We are taking steps to mitigate any risk to our supply product mix. chain, but VSMPO remains an important supplier to Boeing VSMPO is the leading supplier of titanium to both Boeing commercial aircraft programs,” William Shaffer, Boeing’s and Airbus aircraft programmes and operates a joint venture director material and standards, said. with Boeing — Ural Boeing Manufacturing — in Verkhnaya Salda, which machines titanium parts for Boeing aircraft. Titanium: Alcoa signs $1.1bn Lockheed contract The company is also close to completing construction on US aluminum producer Alcoa was awarded a contract to pro- its own new machining plant in the Titanium Valley special vide titanium for Lockheed Martin's F-35 Lightning II aircraft economic zone developed around its works in Russia’s Sverd- program at an estimated value of $1.1bn. lovsk region, which will serve a number of customers. The company will supply titanium for the airframe struc- VSMPO's titanium sponge plant Avisma in Berezniki tures of all three F-35 variants from 2016 to 2024. produces its own magnesium for use as reductant and has Under a different contract, the company will forge previously exported a significant surplus to overseas mar- the largest titanium bulkheads for the F-35A conventional kets. But, with the magnesium market dominated by Chinese takeoff and landing (CTOL) aircraft at facilities in Cleve- production, Avisma's magnesium output has been reduced to land, Ohio. Approximately 75pc of F-35s produced today are only about 6,000t/yr, most of which is consumed internally, CTOLs. Bulkheads are structural components that divide the the company said. aircraft into compartments. Meanwhile, after suspending them earlier in the year, Lockheed Martin aims to produce 13 aircraft per month Avisma has resumed imports of the titanium raw material by the mid-2020s, up from an average of three aircraft per ilmenite from Ukraine, where the control of Volnogorsk min- month in 2014. ing complex passed from private operator Group DF to state Alcoa produces aluminum bulkheads, aluminum die forg- owned United Mining Chemical Company. ings, and fasteners for COTL craft, in addition to aluminum The titanium trade between Russia and Ukraine and and titanium vane box assemblies that direct airflow in between Russia and the US has continued despite politi- vertically landing F-35s. cal frictions and US and EU sanctions particularly affecting Yesterday, Alcoa appointed Roy Harvey as president of due-purpose technology supply to Russia. Last month the US global primary products, which follows last week's announcement that the company plans to divide itself into two Titanium sponge 99.7% Ti ex-works China, Yn/t publicly traded firms. One half will focus on primary alumi- 50,500 num and the other will focus on value-added products.

50,000 Tiantium: Sierra Rutile warns of rutile shortfall Global demand for high-grade titanium mineral rutile is 49,500 expected to outpace supply, the chief marketing officer of 49,000 London-based mining company Sierra Rutile, Derek Folmer, told the ITA Titanium 2015 conference in Orlando. 48,500 Declining reserves and grades will constrain future availability of rutile, the titanium oxide mineral favoured as a 48,000 high-grade raw material by pigment and titanium metal 15 Apr 15 29 May 15 14 Jul 15 28 Aug 15 13 Oct 15 industries, he said. The warning comes as the company, which mines tita-

market news and analysis nium minerals in Sierra Leone, targets the metals industry Tungsten APT fob China, $/mtu for some of its 2016 sales, having contracted all its planned 275 sales in 2015, and is working to boost production. Sierra Ru- 250 tile recently started construction on the Gangama dry mine, and first production is expected in June 2016, Folmer said. 225 It will ultimately boost production capacity at Sierra

Rutile from 125,000 t/yr of rutile to in excess of 160,000 t/ 200 yr. This is the latest step in the company's transition from dredging to more economic dry mining in Sierra Leone, but 175 lower-quality grades are a challenge. “Whereas we used to mine 3-4pc rutile, now we work 150 with half of that rutile content, which means we have to 15 Apr 15 29 May 15 14 Jul 15 28 Aug 15 13 Oct 15 mine twice as much raw material to process as much rutile,” Folmer said. “These lower-quality deposits require more Tungsten: Hunan Chenzhou halts APT output selective mining methods, more investment in processing China's Hunan Chenzhou Mineral halted production at its capability.” ammonium paratungstate (APT) plant earlier this month to Demand for titanium dioxide (TiO2) supply will outpace carry out equipment maintenance. It will resume production demand, Sierra Rutile said, and vertical integration by pig- at the end of October. ment companies is driven by a desire to lock in raw material The company opted to carry out the maintenance work supply. Almost a third of today's rutile supply is locked into in October because of a seven-day national holiday period long-term contracts by TiO2 pigment companies, Folmer and sluggish market. Chenzhou has more than 100t of APT said. New demand is expected to emerge over the next 3-5 stocks. years as China's chloride TiO2 industry develops. China's APT prices have been sliding in response to Around 745,000t of rutile was produced worldwide last reduced buying and ample supply. The market has been year, with Australia accounting for half of this. Only three stagnant and the majority of producers have halted or cut companies — UK-Australian group Rio Tinto, Australia-based production amid slim profit margins. Only a few producers Iluka and Sierra Rutile — have the capacity to produce are maintaining normal production by using lower-grade more than 100,000 t/yr of rutile, and most of this supply is scheelite or tungsten scrap as raw materials to save on pro- sourced from mines that have less than 15 years of life left. duction costs. Supply is expected to barely maintain existing levels Chenzhou Mineral, which is based in Yuanlin county in and is likely to plateau at around 800,000 t/yr in 2016-18, Hunan province, has a production capacity of 20,000 t/yr of Folmer said. Supply from Africa, including Sierra Leone, will antimony metal, 20,000 t/yr of antimony trioxide and 5,000 increase while Australian supply will depend on investment t/yr of APT. decisions. Sierra Rutile is targeting output of 150,000t next year China rare metal exports rise in August and 160,000t in 2017, and hopes to raise production to China reported combined exports of gallium, hafnium and 200,000t in 2018. But without investment its production is rhenium at 9,721kg in August, up by 21.57pc compared with likely to decrease from 2016-17, Folmer said. 7,996kg exported in August last year. Rutile, in preference to the bulk iron-titanium oxide ore Official customs data does not identify individual vol- ilmenite, is especially important for companies concerned umes for each of the metals. All exports in August were about the supply of strategic high-purity material. Rutile is wrought materials, according to the data. high in TiO2 and low in tin, which is vital for aerospace ap- China's exports of chromium metal fell by 77.92pc to plications, and low in alkali and trace metals, both impor- 109.3t in August compared with the same month last year, tant for chlorination and the subsequent quality of titanium when exports were 495t. tetrachloride (TiCl4), the intermediate metal feedstock. It China's exports of chromium metal fell by 15.48pc to also has low radioactivity, which is important for safe opera- 3,304t in January-August compared with the same period tion of titanium sponge plants. last year, when exports were 3,909t.

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Cobalt imports fall levels in April-August, it would need to raise output to 2,792 China's cobalt concentrate imports declined in August, t/month from September 2015 to March next year to reach with the devaluation of the yuan in the middle of the month the target in its first year. increasing the cost of imports at the same time as consumer But this would be difficult after prices hit a 12-year low demand for the metal was weak. of $4.80-4.90/lb on 8 October, almost half levels of $9.05- China imported 17,939t of cobalt concentrate in August, 9.15/lb at the start of 2015. The decline has prompted a down by 1.59pc compared with 18,228t a year earlier. Prices number of secondary and by-product molybdenum producers averaged $1,722/t, down by 16.16pc on the year. China to cut or suspend output, and could have a similar effect on imported 160,276t of cobalt concentrate in the first eight primary production. months of 2015, up by 32.86pc compared with 120,633t in the same period last year. Molybdenum: Thompson Creek sells 3mn lb Colorado-based mining firm Thompson Creek Metals, which Molybdenum: American CuMo to drill in Idaho has idled its North American molybdenum mines because of Canadian molybdenum producer American CuMo Mining has low prices, sold 3mn lb of molybdenum concentrate in the received clearance to undertake exploratory molybdenum, third quarter of this year. copper and silver drilling at its CuMo project in the US state Of that total, 600,000lb came from inventory at Thomp- of Idaho. son Creek's mines, with 2.4mn lb from material sourced from The Vancouver-based company has put forward plans to third parties. It was the third successive quarter in which start drilling in an area of 3,000 acres in the Boise National Thompson Creek posted sales-only figures for molybdenum Forest, hailing the site as the world's largest un-mined mo- processed at its Langloth plant in Pennsylvania, US. lybdenum project. The company shipped 4.3mn lb in the first quarter of Environmental groups have opposed plans for an open pit this year and 2.2mn lb in the second quarter, compared with mine at the site, fearing it will lead to contamination of a 6.7mn lb in the third quarter of 2014. local river. The firm's Thompson Creek mine in Idaho, US, was put Authorities said permits issued for use at the Boise on care and maintenance at the end of last year and the sus- County site only cover exploration drilling and do not include pended Endako mine in British Columbia, Canada, followed mining, for which the company would have to seek separate suit in June. The mines produced a combined 26.3mn lb in authorisation. 2014, accounting for 4.5pc of total global output of 583.7mn lb. Molybdenum: Sierra output growth slower Roasted molybdenum concentrate prices have slumped Polish mining company KGHM's Sierra Gorda mine in Chile to 12-year lows of $4.80-4.90/lb from $9.05-9.15/lb at the produced 618t (1.36mn lbs) of molybdenum concentrate in start of this year. August, data from Chilean copper commission Cochilco show. With its molybdenum mines off line, Thompson Creek The mine, in Chile's northern Atacama desert region, is concentrating on ramping up production at its Mt Mil- started producing in April. It produced 3,164t in its first five months of operation, an average rate of 633 t/month. Molybdenum oxide min 57% Mo du Rotterdam , $/lb of Mo The highest monthly output was in July, when Sierra Gorda 9.00 produced 986t. 8.00 Production in the nine months since April could hit 5,695t if the mine continues output at its current rate, or an an- 7.00 nualised 7,594t.

Production was forecast at 50mn lbs/yr (23,000 t/yr) 6.00 in the first five years, equivalent to about 8.6pc of global output based on the 583.7mn lbs total production in 2014. 5.00 Output is forecast to fall to around 20mn lbs/yr for the remainder of its mine life of 20 or more years. 4.00 Sierra Gorda would need to produce around 1,900 t/ 14 Apr 15 28 May 15 14 Jul 15 27 Aug 15 13 Oct 15 month to meet its 50mn lbs/yr target. But given production

market news and analysis ligan copper-gold mine in British Columbia. Copper produc- mately 50,000 t/yr of copper in concentrate. tion reached 16.3mn lb in the third quarter, in addition to The start of the sale process “will allow potential buyers 53,800oz of gold. Sales of copper totalled 24.4mn lb with to bid to purchase either one or both of the mines and may gold sales at 75,400oz. or may not result in a sale”, Glencore said. The Hong Kong and London-listed company requested a Ford to invest $1.8bn in China smart cars trading halt in Hong Kong with today’s announcement and US car maker Ford Motor will invest 11.4bn yuan ($1.8bn) to plans to issue an update only when a sale of its copper as- research and develop smart cars in China, the company said. sets is agreed or disclosure is otherwise required. Under the five-year investment, Ford plans to research The news comes on the back of Glencore’s decision last how to add greater smartphone connectivity, autonomous month to idle copper production at its [Katanga and Mo- driving and other smart car features to its Chinese vehicles. pani](https://direct.argusmedia.com/newsandanalysis/arti- The investment will allow Ford to build up its research cle/1102940) operations in the Democratic Republic of Congo and development capabilities in the country — especially at and Zambia, respectively, over an 18-month period with its Nanjing Research and Engineering Center — and will help a loss of 400,000t of copper cathode equivalent produc- Ford create more vehicles in China, the company said. tion and 3,000t of cobalt. Glencore last week announced a Many minor metals and alloys, such as magnesium, ferro- 500,000 t/yr [cut to zinc production](https://direct.argusme- manganese, ferro-silicon, antimony, cadmium, vanadium dia.com/newsandanalysis/article/1116510) across its opera- and molybdenum, are used in car production, along with tions in Australia, South America and Kazakhstan. rare earths. And smart car features require increased use of electronic metals. Tellurium: Singulus cuts 2015 business forecast With the introduction of these vehicles and technologies, German optical disc and solar product manufacturer Singulus Ford said that by 2020 its customers are expected to reduce Technologies has revised its business forecast for 2015 as fuel consumption by more than 200 litres/yr compared with demand for Blu-Ray discs — one of its key sectors — falls. 2015. Conversations with key customers in the sector are continuing but the company expects that new orders of its Molybdenum: Glencore to sell two copper mines Bluline II technology are unlikely in the near future. Develop- Switzerland-based mining and commodities trading firm ment of new production technology for the Ultra-HD Blu-ray Glencore is starting the process to sell its wholly-owned Co- disc is not expected. Tellurium is a key component of the bar copper mine in Australia and Lomas Bayas copper mine media layer of optical discs. Falling demand from this sector in Chile. may weigh on prices for the metal, which are already falling Glencore has started the sale process in response to on the back of low demand from consumers. receiving a number of unsolicited expressions of interest But Singulus expects a significant rise in revenues in its for these mines from various potential buyers, the company solar division, with sales in this sector exceeding €57mn said. Glencore is seeking to reduce its debt and indicated ($64.4mn) in the first half of this year. last month that it may divest some of its non-core assets Singulus is working on larger copper-indium-gallium-sele- following a cut back on its copper and zinc production amid nide (CIGS) projects, chief executive Stefan Rinck said. low prices. The Lomas Bayas open pit copper mine is located in the Kariba levels impact Zambia, Zimbabwe mines Atacama desert in Chile, 120km northeast of the port of Low water levels at the Kariba dam are causing major Antofagasta. The low-grade copper ore mined at this facil- problems for the mining industries in Zambia and Zimba- ity is processed by heap leaching and converted to copper bwe, which rely on the hydropower facility for much of their cathode after processing through a solvent extraction and power supply. electrowinning (SX-EW) plant. The Lomas Bayas operation With the dam’s level at less than 30pc, compared with produces approximately 75,000 t/yr of copper cathode. 70pc at the same time last year, its ability to produce Cobar, which is located in central western New South around 1,600MW of electricity for two power plants — one Wales, Australia, comprises a high-grade underground cop- each in Zambia and Zimbabwe — has been seriously af- per mine and a concentrate plant. The plant throughput is fected. Power utilities in both countries are urging mining approximately 1.1mn t/yr of ore and it produces approxi- companies to cut their power usage by 25-30pc.

market news and analysis

The drawdown of water for power generation at the dam Canada, said chief executive Doug Suttles. has exceeded agreed threshold levels, causing water levels The US rig count had recovered in end-August and early to drop to historically low levels, the Zambia Engineers September, from a previous trough of 857, in part driven by Institute said. a recovery in prices in the second quarter. But those gains Copper producers in Zambia have had their power supply have all been wiped out as the market witnessed a double cut by up to 30pc over the past few months, while the Zim- dip. It had risen to 885 on 21 August, at par with the highest babwean government this week said platinum and chrome since 22 May. The latest count shows the number dropping producers in the country need to reduce their consumption by 90 since then. by 25pc. The count is now down by 59pc from last year's peak of The rainy season, which runs from October to April, 1,931 and 57pc lower than end-2014 levels. The number of is likely to improve dam levels, but long-range weather rigs drilling for oil fell by nine to 605. Those drilling for gas forecasts suggest a hot, dry summer for much of southern fell by six to 189. Africa, with below average rainfall. South Africa is experiencing its worst drought for two decades but its mining industry is reliant on coal-fired power plant rather than hydropower. Zimbabwe’s power shortage is exacerbated by the fact that two power plants are off line for maintenance, reducing grid capacity. Also of concern for Zimbabwe and Zambia, respectively Argus European Africa’s second-largest chrome and copper producers, is the physical state of the Kariba dam, which was opened in 1959. Light Metals 2015 The Zambezi River Authority has over the past couple of years warned that the dam’s bedrock is eroding. The dam is The premier metals event for adjacent to Lake Kariba, the world’s largest man-made lake, Aluminium, Magnesium, Silicon stretching 280km in length. There are concerns that if the dam wall bursts, it would send massive amounts of water and Manganese professionals. down the Zambezi river to Mozambique where it would destroy the Cahora Bassa dam, wiping out most of southern Africa’s remaining hydropower capacity.

US rig count below 800 in current downturn The US drilling rig count dipped below 800 for the first time in the current market downturn, in its seventh straight week of declines. The total fell by 14 to 795 this week, oil field services provider Baker Hughes said. That is the weakest since the 776 seen in May 2002. A prolonged weakness in the crude market that’s lasted a Exclusive discounts available for aluminium year is forcing producers to make even deeper cuts to their producers and China-based metal producers. capital expenditure (capex) by pulling back drilling plans. In the latest example of producers hunkering down, Canadian Book before 2 September to save €700 independent Encana announced selling its Denver Julesburg argusmedia.com/Light-Metals (DJ) basin assets in Colorado for $900mn to lower debt and shore up its balance sheet. Market Reporting Metals The sale is part of a plan to focus operations "on our four Consulting most strategic assets" in the Permian and the Eagle Ford in illuminating the markets Events Texas, Duvernay in western Canada and Montney in Alberta,

price indexes

Argus minor metals indexes (monthly averages) Month index Month index Month index Month index Unit Oct 2015 low Oct 2015 high Sep 2015 final low Sep 2015 final high

Electronic metals Arsenic Min 99% du Rotterdam $/lb 0.90 1.05 0.90 1.05 Min 99% fob US $/lb - - 0.95 1.15 Bismuth Min 99.99% du Rotterdam $/lb 4.90 5.30 4.91 5.32 Min 99.99% fob China $/lb 5.15 5.45 5.06 5.42 Ingot min 99.99% fob US $/lb - - 4.73 5.22 Gallium Min 99.99% fob China $/kg 135.00 160.00 140.56 163.89 Min 99.99% cif Main Airport $/kg 180.00 200.00 180.00 200.00 Germanium Dioxide min 99.999% fob China $/kg 1,250.00 1,350.00 1,250.00 1,366.67 Dioxide min 99.99% du Rotterdam $/kg 1,145.00 1,195.00 1,145.00 1,195.00 Metal min 99.99% cif Main Airport $/kg 1,725.00 1,800.00 1,725.00 1,800.00 Dioxide min 99.999% fob China $/kg 1,250.00 1,350.00 1,250.00 1,366.67 Min 99.999% fob China $/kg 1,750.00 1,850.00 1,750.00 1,867.0 0 Indium Min 99.99% du Rotterdam $/kg 232.50 292.50 267.78 315.56 Min 99.99% fob China $/kg 240.00 280.00 248.89 298.33 Ingot min 99.99% fob US $/kg - - 260.00 315.00 Selenium Min 99.5% du Rotterdam $/lb 8.00 10.00 8.67 10.67 Min 99.5% fob US $/lb - - 8.42 10.67 Tantalum

Tantalite basis 30% Ta2O5 du Rotterdam $/lb Ta 2O5 62.25 68.25 70.11 73.00 Min 99.8% du Rotterdam $/kg 318.75 332.50 322.22 340.56 Tellurium Min 99.99% du Rotterdam $/kg 42.50 65.00 63.33 75.00 Min 99.95% fob US $/kg - - 60.00 85.00 Zirconium

Oxychloride 36% Zr(Hf)O2 fob China $/t 1,420.00 1,470.00 1,420.00 1,470.00

Battery metals Antimony Ingot min 99.65% fob China $/t 6,175.00 6,375.00 6,400.00 6,600.00 Min 99.65% cif US ports $/lb - - 3.00 3.17 Regulus grade II min 99.65% Sb du Rotterdam $/t 5,912.50 6,075.00 6,155.56 6,383.33 Regulus Trioxide grade min 99.65% Sb du Rotterdam $/t 6,062.50 6,162.50 6,261.11 6,455.56 Trioxide min 99.5% fob China $/t 5,475.00 5,775.00 5,655.56 5,922.22 Cadmium Min 99.95% du Rotterdam $/lb 0.37 0.43 0.37 0.42 Min 99.95% cif India Rs/kg 103.00 110.00 103.00 110.67 Min 99.99% fob US $/lb - - 0.37 0.42 Min 99.99% du Rotterdam $/lb 0.39 0.44 0.39 0.45 Min 99.95% fob US $/lb - - 0.35 0.40 Min 99.99% cif India Rs/kg 114.00 118.00 114.67 118.67 Cobalt Min 99.8% alloy grade du Rotterdam $/lb 12.80 13.50 12.80 13.49 Min 99.8% fob US $/lb - - 13.10 13.47 Min 99.6% chemical grade du Rotterdam $/lb 12.60 13.20 12.60 13.24 Min 99.3% Russian grade du Rotterdam $/lb 12.40 13.00 12.39 13.09 Min 99.3% fob US $/lb - - 12.77 13.02

price indexes

Argus minor metals indexes (monthly averages) Month index Month index Month index Month index Unit Oct 2015 low Oct 2015 high Sep 2015 final low Sep 2015 final high

Light metals Magnesium Alloy min 90% Mg AZ91 fob China $/t 2,320.00 2,370.00 2,320.00 2,370.00 Min 99.9% ddp US $/kg 1.75 1.85 1.79 1.88 Min 99.9% du Rotterdam $/t 2,072.50 2,115.00 2,080.00 2,120.00 Min 99.9% fob China $/t 2,055.00 2,115.00 2,060.00 2,120.00 Powder 99.9% Mg 20-80 mesh fob China $/t 2,150.00 2,200.00 2,150.00 2,200.00 Manganese Briquette 97% Mn fob China $/t 1,572.50 1,622.50 1,602.22 1,652.22 Electrolytic metal min 99.7% fob US $/lb 1.09 1.12 1.09 1.12 Flake min 99.7% fob China $/t 1,522.50 1,572.50 1,552.22 1,602.22 Flake min 99.7% du Rotterdam $/t 1,555.00 1,595.00 1,608.89 1,653.33 Lump 95% Mn fob China $/t 1,612.50 1,692.50 1,642.22 1,722.22 Silicon 5-5-3 min 98.5% Si fob China $/t 1,610.00 1,640.00 1,610.00 1,640.00 5-5-3 min 98.5% Si ddp Europe works €/t 2,000.00 2,050.00 1,984.44 2,050.00 5-5-3 min 98.5% Si ddp US $/lb 1.19 1.24 1.22 1.27 4-4-1 min 99% Si fob China $/t 1,750.00 1,780.00 1,750.00 1,780.00 4-4-1 min 99% Si ddp Europe works €/t 2,120.00 2,170.00 2,117.78 2,190.00 Titanium Sponge TG-Tv 10x30mm du Rotterdam $/kg 5.13 5.30 5.59 5.67 Scrap 6Al 4V bulk weldable fob US $/lb 3.25 3.35 3.25 3.35 Scrap 6Al 4V clips fob US $/lb 2.95 3.05 2.95 3.05 Scrap grade 1 CP solids fob US $/lb 2.18 2.23 2.23 2.31 Scrap grade 2 CP solids fob US $/lb 1.88 1.98 2.11 2.18 Scrap grade 3-4 CP solids fob US $/lb 1.65 1.73 1.79 1.89 Scrap 6Al 4V turnings aero quality fob US $/lb 2.10 2.20 2.13 2.23

High-temperature metals Chromium (alumino-thermic) min 99% du Rotterdam $/t 7,950.0 0 8,525.00 8,144.44 8,677.78 Molybdenum Oxide min 57% Mo du Rotterdam $/lb Mo 4.91 5.06 5.63 5.83 Oxide min 57% fob US $/lb 5.73 5.90 5.76 5.96 Rhenium APR min 69.2% Re (basic grade) du Rotterdam $/kg Re 1,350.00 1,450.00 1,361.11 1,450.00 APR min 69.4% Re (catalyst grade) dp Rotterdam $/kg Re 2,600.00 2,750.00 2,600.00 2,750.00 Pellets min 99.9% Re dp Rotterdam $/lb 870.00 1,130.00 867.78 1,126.67 Tungsten

APT du Rotterdam $/mtu WO3 177.50 187.50 183.89 193.89

APT fob China $/mtu WO3 169.50 179.50 177.22 187.22 Carbide powder (3-4micron) fob China $/kg 24.38 25.38 25.46 26.44 Oxide (Yellow/Blue oxide) fob China $/t 17,950.0 0 18,950.00 18,722.22 19,722.22 Vanadium

Pentoxide fused flake min 98% du Rotterdam $/lb V2O5 2.80 3.15 3.30 3.60

price Summary

Electronic metals price assessments 13 Oct 8 Oct Unit Low High ± 8 Oct Low High ± 6 Oct

Arsenic Min 99% du Rotterdam $/lb 0.90 1.05 - 0.90 1.05 - Bismuth Min 99.99% du Rotterdam $/lb 4.90 5.30 - 4.90 5.30 - Bismuth min 99.99% ex-works China Yn/t 70,000 72,000 -2,500 72,000 75,000 -1,000 Bismuth min 99.99% fob China $/lb 5.00 5.30 -0.200 5.20 5.50 - Gallium Min 99.9999% ex-works China Yn/kg 1,150 1,250 - 1,150 1,250 - Min 99.99% ex-works China Yn/kg 850 950 - 850 950 - Min 99.99% fob China $/kg 135.00 160.00 - 135.00 160.00 - Min 99.99% cif Main Airport $/kg 180.00 200.00 - 180.00 200.00 - Germanium Dioxide min 99.999% ex-works China Yn/kg 7,30 0 8,000 - 7,30 0 8,000 - Dioxide min 99.999% fob China $/kg 1,250 1,350 - 1,250 1,350 - Dioxide min 99.99% du Rotterdam $/kg 1,145 1,195 - 1,145 1,195 - Metal (zone refined ingot) min 99.999% ex-works China Yn/kg 10,800 11,800 - 10,800 11,800 - Metal min 99.99% cif Main Airport $/kg 1,725 1,800 - 1,725 1,800 - Min 99.999% fob China $/kg 1,750 1,850 - 1,750 1,850 - Indium Min 99.99% du Rotterdam $/kg 230.00 290.00 - 230.00 290.00 - Min 99.99% ex-works China Yn/kg 1,500 1,700 - 1,500 1,700 - Min 99.99% fob China $/kg 240.00 280.00 - 240.00 280.00 - Min 99% ex-works China Yn/kg 1,300 1,500 - 1,300 1,500 - Selenium Dioxide min 99% ex-works China Yn/kg 85.00 95.00 - 85.00 95.00 - Min 99.5% du Rotterdam $/lb 8.00 10.00 - 8.00 10.00 - Powder min 99.9% ex-works China Yn/kg 140.00 160.00 - 140.00 160.00 - Tantalum

Tantalite basis 30% Ta2O5 du Rotterdam $/lb Ta 2O5 60.00 65.00 -2.500 62.00 68.00 - Min 99.8% du Rotterdam $/kg 315.00 325.00 -7.50 0 320.00 335.00 - Tellurium 99.99% ex-works China Yn/kg 290.00 330.00 - 290.00 330.00 - Min 99.99% du Rotterdam $/kg 40.00 60.00 -2.500 40.00 65.00 - Zirconium Fused zirconia 98.5% ZrO ex-works China Yn/t 18,800 19,000 - 18,800 19,000 -

Oxychloride 36% Zr(Hf)O2 ex-works China Yn/t 8,200 8,800 - 8,200 8,800 -

Oxychloride 36% Zr(Hf)O2 fob China $/t 1,420 1,470 - 1,420 1,470 -

Silicate 65% Zr(Hf)O2 ex-works China Yn/t 9,400 9,700 - 9,400 9,700 - Sponge 99.4% Zr+Hf ex-works China Yn/kg 152.00 157.0 0 - 152.00 157.0 0 -

price Summary

Battery metals price assessments 13 Oct 8 Oct Unit Low High ± 8 Oct Low High ± 6 Oct

Antimony

Ingot min 99.65% ex-works China Yn/t 37,000 39,000 -500 37,50 0 39,500 -

Ingot min 99.65% fob China $/t 6,100 6,300 -100 6,200 6,400 -

Regulus grade II min 99.65% Sb du Rotterdam $/t 5,850 5,950 -112 5,925 6,100 -

Regulus Trioxide grade min 99.65% Sb du Rotterdam $/t 5,950 6,050 -150 6,100 6,200 -

Trioxide min 99.5% ex-works China Yn/t 34,000 35,000 -500 34,500 35,500 -

Trioxide min 99.5% fob China $/t 5,400 5,700 -100 5,500 5,800 -

Cadmium

Min 99.99% du Rotterdam $/lb 0.39 0.45 0.005 0.39 0.44 -

Min 99.99% ex-works China Yn/t 7,8 0 0 8,800 - 7,8 0 0 8,800 -

Min 99.99% cif India Rs/kg 114.00 118.00 - 114.00 118.00 -

Min 99.95% du Rotterdam $/lb 0.37 0.44 0.005 0.37 0.43 -

Min 99.95% cif India Rs/kg 103.00 110.00 - 103.00 110.00 -

Oxide min 99.5% ex-works China Yn/t 10,000 11,500 - 10,000 11,500 -

Cobalt

(Electrolytic metal) min 99.8% ex-works China Yn/kg 210.00 220.00 - 210.00 220.00 2.000

Chloride min 24% ex-works China Yn/t 45,500 48,000 - 45,500 48,000 -

Min 99.8% alloy grade du Rotterdam $/lb 12.80 13.50 - 12.80 13.50 -

Min 99.6% chemical grade du Rotterdam $/lb 12.60 13.20 - 12.60 13.20 -

Min 99.3% Russian grade du Rotterdam $/lb 12.40 13.00 - 12.40 13.00 -

Oxide 72% ex-works China Yn/kg 150.00 154.00 - 150.00 154.00 -

Powder min 99.8% ex-works China Yn/kg 230.00 250.00 - 230.00 250.00 -

Sulphate min 20% ex-works China Yn/t 39,500 42,500 - 39,500 42,500 -

Tetroxide min 73% ex-works China Yn/kg 153.00 157.0 0 - 153.00 157.0 0 -

Lithium cobalt oxide

Min 60% Co ex-works China Yn/kg 169.00 171.00 - 169.00 171.00 -

Mercury

Min 99.99% du Rotterdam $/Flask 1,800 2,100 - 1,800 2,100 -

Tellurium 99.99pc ex works China, Yn/kg Selenium dioxide min 99pc ex works China, Yn/kg 550 200

500 175 450 150 400 125 350 100 300

250 75 15 Apr 15 29 May 15 14 Jul 15 28 Aug 15 13 Oct 15 15 Apr 15 29 May 15 14 Jul 15 28 Aug 15 13 Oct 15

price Summary

Light metals price assessments 13 Oct 8 Oct Unit Low High ± Low High ± 6 Oct

Magnesium Alloy min 90% Mg AZ91 ex-works China Yn/t 14,000 14,300 - 14,000 14,300 - Alloy min 90% Mg AZ91 fob China $/t 2,320 2,370 - 2,320 2,370 - Min 99.9% ddp US $/kg 1.73 1.83 -0.020 1.75 1.85 - Min 99.9% du Rotterdam $/t 2,050 2,100 -25 2,080 2,120 - Min 99.9% ex-works China Yn/t 12,400 12,800 - 12,400 12,800 - Min 99.9% ex-works China Yn/t 12,400 12,800 - 12,400 12,800 - Powder 99.9% Mg 20-80 mesh ex-works China Yn/t 13,500 13,700 - 13,500 13,700 - Powder 99.9% Mg 20-80 mesh fob China $/t 2,150 2,200 - 2,150 2,200 - Manganese Briquette 97% Mn fob China $/t 1,550 1,600 -30 1,580 1,630 - Flake 99.7% Mn ex-works China Yn/t 9,500 9,700 -200 9,700 9,900 - Flake min 99.7% fob China $/t 1,500 1,550 -30 1,530 1,580 - Flake min 99.7% du Rotterdam $/t 1,480 1,520 -100 1,580 1,620 - Lump 95% Mn fob China $/t 1,590 1,670 -30 1,620 1,700 - Silicon 5-5-3 min 98.5% Si dat Chinese ports Yn/t 10,300 10,500 - 10,300 10,500 - 5-5-3 min 98.5% Si fob China $/t 1,610 1,640 - 1,610 1,640 - 5-5-3 min 98.5% Si ddp Europe works €/t 2,000 2,050 - 2,000 2,050 - 5-5-3 min 98.5% Si ddp US $/lb 1.19 1.24 - 1.19 1.24 - 4-4-1 min 99% Si dat Chinese ports Yn/t 11,050 11,250 - 11,050 11,250 - 4-4-1 min 99% Si fob China $/t 1,750 1,780 - 1,750 1,780 - 4-4-1 min 99% Si ddp Europe works €/t 2,120 2,170 - 2,120 2,170 - Titanium

Concentrate 50% TiO2 ex-works China (VAT unpaid) Yn/t 770 800 - 770 800 -

Concentrate 46% TiO2 ex-works China (VAT unpaid) Yn/t 510 530 - 510 530 - Ingot min 99% Ti pure TA1 ex-works China Yn/t 58,000 60,000 - 58,000 60,000 - Ingot min 99% Ti pure TA2 ex-works China Yn/t 56,000 58,000 - 56,000 58,000 - Ingot min 99% Ti pure TA3 ex-works China Yn/t 60,000 62,000 - 60,000 62,000 -

Slag min 92% TiO2 ex-works China Yn/t 4,200 4,300 - 4,200 4,300 - Sponge 99.7% Ti ex-works China Yn/t 48,000 49,000 - 48,000 49,000 - Sponge 99.6% Ti ex-works China Yn/t 47,000 48,000 - 47,000 48,000 - Sponge TG-Tv 10x30mm du Rotterdam $/kg 5.00 5.20 - 5.00 5.20 -

Cadmium 99.99pc du Rotterdam, $/lb Antimony Regulus Grade II, $/kg 0.6 9,000

8,500 0.55 8,000

7,500 0.5 7,000

6,500 0.45 6,000

0.4 5,500 14 Apr 15 28 May 15 14 Jul 15 27 Aug 15 13 Oct 15 14 Apr 15 28 May 15 14 Jul 15 27 Aug 15 13 Oct 15

price Summary

High-temperature metals price assessments 13 Oct 8 Oct Unit Low High ± 8 Oct Low High ± 06 Oct

Chromium

(alumino-thermic) min 99% du Rotterdam $/t 7,9 0 0 8,350 - 7,9 0 0 8,350 -225

(aluminothermic) min 99% Cr ex-works China Yn/t 60,000 65,000 - 60,000 65,000 -

Molybdenum

Oxide min 57% Mo du Rotterdam $/lb Mo 4.40 4.60 -0.350 4.80 4.90 -0.250

Rhenium

APR min 69.2% Re (basic grade) du Rotterdam $/kg Re 1,350 1,450 - 1,350 1,450 -

APR min 69.4% Re (catalyst grade) dp Rotterdam $/kg Re 2,600 2,750 - 2,600 2,750 -

APR min 69.4% Re ex-works China Yn/kg 8,400 9,300 - 8,400 9,300 -

Pellets min 99.9% Re dp Rotterdam $/lb 870 1,130 - 870 1,130 -

Tungsten

APT du Rotterdam $/mtu WO3 175.00 185.00 - 175.00 185.00 -5.000

APT fob China $/mtu WO3 168.00 178.00 -2.000 170.00 180.00 - APT min 88.5% ex-works China Yn/t 89,000 91,000 -3,000 92,000 94,000 -

Carbide min 99.7% ex-works China Yn/kg 150.00 153.00 -4.000 154.00 157.0 0 -

Carbide powder (3-4micron) fob China $/kg 24.00 25.00 -0.500 24.50 25.50 -

Oxide (Yellow/Blue oxide) fob China $/t 17,8 0 0 18,800 -200 18,000 19,000 -

Oxide min 99.95% ex-works China Yn/t 105,000 109,000 -3,500 109,000 112,000 -

Concentrates min 65% ex-works China Yn/t 59,000 61,000 -1,000 60,000 62,000 -

Vanadium

Pentoxide fused flake min 98% du Rotterdam $/lb V2O5 2.50 3.00 -0.300 2.90 3.20 -

Pentoxide 98% V2O5 ex-works China Yn/t 38,000 40,000 -1,500 40,000 41,000 -

Argus Minor Metals Methodology Argus direct Web | Mobile | Alerts Argus minor-metal price assessments are for physical mate- Argus Direct is the next generation platform rial for spot delivery, with “spot” defined as deliverable from Argus Media. It is the premium way to within four weeks. Assessments reflect an average across access our reports, prices, market insight, the whole day on the date of assessment, expressed as a fundamentals data and markets. high-low range. Price assessments, news and analysis are produced by the Argus network of specialists reporters and editors in China, Europe, the US, India and South Africa.

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price Summary

Weekly US price assessments 09 Oct 02 Oct Metal Unit Low High ± Low High ±

Electronic metals Arsenic

Min 99% fob US $/lb 0.98 1.20 0.010 0.98 1.18 0.030

Bismuth

Ingot min 99.99% fob US $/lb 4.60 5.05 -0.100 4.70 5.15 -

Indium

Ingot min 99.99% fob US $/kg 240.00 300.00 -2.500 245.00 300.00 -5.000

Selenium

Min 99.5% fob US $/lb 7.50 10.00 -0.375 8.00 10.25 -0.250

Tellurium

Min 99.95% fob US $/kg 45.00 65.00 -12.500 55.00 80.00 -2.500

Battery metals price assessments Antimony

Min 99.65% cif US ports $/lb 2.88 3.03 -0.020 2.90 3.05 -0.050

Cadmium

Min 99.99% fob US $/lb 0.37 0.43 - 0.37 0.43 -

Min 99.95% fob US $/lb 0.35 0.40 - 0.35 0.40 -

Cobalt

Min 99.8% fob US $/lb 13.20 13.50 - 13.20 13.50 -

Min 99.3% fob US $/lb 12.75 13.05 - 12.75 13.05 -

Light metals price assessments Manganese

Electrolytic metal min 99.7% fob US (08 Oct) $/lb 1.09 1.12 - 1.09 1.12 -

Titanium

Scrap 6Al 4V bulk weldable fob US (08 Oct) $/lb 3.25 3.35 - 3.25 3.35 -

Scrap 6Al 4V clips fob US (08 Oct) $/lb 2.95 3.05 - 2.95 3.05 -

Scrap grade 1 CP solids fob US (08 Oct) $/lb 2.15 2.20 -0.050 2.20 2.25 -

Scrap grade 2 CP solids fob US (08 Oct) $/lb 1.85 1.95 -0.050 1.90 2.00 -0.075

Scrap grade 3-4 CP solids fob US (08 Oct) $/lb 1.65 1.70 -0.025 1.65 1.75 -0.050

Scrap 6Al 4V turnings aero quality fob US (08 Oct) $/lb 2.10 2.20 - 2.10 2.20 -

High-temperature metals price assessments Molybdenum

Oxide min 57% fob US (08 Oct) $/lb 5.70 5.85 -0.075 5.75 5.95 -

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