TELF AG has unveiled its comprehensive Market Roundup for Week 39 of 2023, offering an in-depth analysis of significant market trends across various sectors, including gas, chrome ore, FeCr, Mn, FeSi, stainless steel, base metals, and battery materials.
The report reveals that European natural gas futures have surged above €39 per megawatt-hour, registering a notable 9% increase for the week. This upward trajectory is primarily driven by growing supply concerns, exacerbated by strikes in Australia and outages in Norway. TELF AG highlights the vigilance of traders, who are closely monitoring multiple risk factors, including potential U.S. outages and disruptions in Russian gas exports.
In the chrome ore sector, TELF AG notes that UG2/MG Cr ore prices have seen a modest increase, influenced by market sentiment and restocking activities in anticipation of China’s Golden Week holiday. 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 HC FeCr output in August, reaching 641 kt. However, European and U.S. spot prices witnessed declines of 2% and 5% during August, with expectations of a rebound due to heightened demand.
TELF AG highlights a slowdown in manganese market activity ahead of China’s week-long holiday. Traders have adjusted their offers for 44% lump manganese in an effort to secure deals, and there are growing concerns about demand in the fourth quarter.
The commodities trading firm also observes that Chinese FeSi prices have risen this week, reaching their highest level since April at RMB7,628 per tonne. This increase is attributed to robust futures prices and escalating production costs.
According to TELF AG, China is expected to produce 3.2 Mt in August and 3.25 Mt in September within 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 is attributed to factors such as diminished interest in long-term contracts and increased domestic output in China.
In the realm of battery materials, TELF AG reports that Glencore and Li-Cycle of Canada have conditionally agreed to expedite 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.
For a more comprehensive understanding of the insights presented in TELF AG’s 2023 Week 39 Market Roundup, readers are encouraged to delve into the full article. For more insights and content, visit TELF AG’s Media Page.