Industrials (/lb): aluminum $0.94 (+0.0%), copper $3.02 (+0.0%), lead $1.05(+0.0%), molybdenum $7.14 (+0.0%); nickel $5.21 (+0.0%); zinc $1.39 (+0.0%);Precious (/oz): gold $1,308 (+1.3%), silver $17.44 (+2.2%); Steel (/mt): ChinaHRC $622 (-0.6%), SHFE Rebar $587 (-0.7%), MB Scrap Index $347 (+0.0%);Bulks: iron ore (/dmt) $77 (-1.6%), coking coal (/mt) $208 (+2.4%), freight (BCI)2,406 (+0.0%); Energy: Brent (/bbl) $51.89 (-1.0%), WTI (/bbl) $46.57 (-2.7%),natural gas (/mmBtu) $2.93 (+1.1%), thermal coal (/t) $98 (-0.9%).
US steel industry assesses damage from Hurricane Harvey, which has struckthe Port of Houston Authority (POHA), the busiest port for steel imports. USSteel’s Offshore Operations Houston facility has been impacted as flooding hasclosed the railways leading to the plant. Market participants expect damage tothe steel stored in warehouses and some delays in shipments due to theshutdown of the port. Impact of the hurricane not completely assessed yet assome areas are still inaccessible due to flooding. (SBB)China plans to shut 6,000 non-coal mines by 2020 to reduce mining deathsand accidents, per State Administration of Work Safety. More than 500 peoplehave died in non-coal mining accidents in 2015 and Beijing aims to reducecausalities going forward by improving legislation and intensifying mineinspections. 37k illegal non-coal mines were operating in 2015. (Mining.com)US Department of Commerce sets preliminary countervailing duties of 1.7%-44.2% on carbon and alloy steel wire rod imports from Italian producers.
Turkish producers received 0-2.27%. Nucor was one of the US rod producerswho had petitioned the government for the investigation on March 28. Finalrate determinations to be announced in November, post which USInternational Trade Commission will make its final injury determinations. (SBB)US steel production declines 1.3% WoW to 1.74m st (+5.1% YoY), withutilization at 74.6% (-100 bps WoW, +380 bps YoY) for the week ending 8/26,mainly on lower output from North East and Great Lakes. YTD output totaled~59m st (+3% YoY), with utilization at 74.6% (+240 bps YoY). (AISI)Vale exercise right to redeem $1bn 5.625% guaranteed notes due 2019 andcommences cash tender offer to purchase $750m 4.625% guaranteed notesdue 2020. Tender Offer for 2020 Notes to expire on September 27. (Company)Freeport-McMoRan (FCX) agrees to divest 51% stake to government inGrasberg copper and gold mine, Indonesia. Timing and price of the stake is yetto be worked out. In return, Indonesia will allow FCX to immediately apply for a10-year permit extension beyond 2021 and secure a second extension before2031. FCX has also agreed to build a second smelter to meet government’srequirement of processing more ore domestically. Currently, it exports 67% ofcopper concentrate produced at Grasberg and processes 33% domestically.
CEO Richard Adkerson, emphasized that divestment and smelter constructionare “major concessions”. We value 100% of PT-FI at $12.1bn. (Reuters, DB)