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, af- ter 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. Copyright © 2015 Argus Media Ltd Licensed to: Andrew Johnson, Argus Media Limited (London) Argus Minor Metals Issue 15-34 | Tuesday 13 October 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 per- sistent 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 partici- pants' 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 Copyright © 2015 Argus Media Ltd Page 2 of 24 Licensed to: Andrew Johnson, Argus Media Limited (London) Argus Minor Metals Issue 15-34 | Tuesday 13 October 2015 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.