LUGANO, SWITZERLAND, September 29, 2023 - TELF AG has released its in-depth Market Roundup for Week 39 of 2023, offering a detailed analysis of key market trends in sectors including gas, chrome ore, FeCr, Mn, FeSi, stainless steel, base metals, and battery materials.
According to the report, European natural gas futures have risen above €39 per megawatt-hour, marking a more than 9% increase this week. This uptick is mainly influenced by supply concerns that have been exacerbated by Australian strikes and Norwegian outages. As per the company, traders are keeping a watchful eye on multiple risk factors, including U.S. outages and potential disruptions in Russian gas exports.
In the chrome ore sector, TELF AG states that UG2/MG Cr ore prices experienced a modest increase, driven by market sentiment and restocking activities ahead of China's Golden Week holiday. Delays in shipments from South Africa are creating additional supply concerns.
As for FeCr, TELF AG said the Chinese output of HC FeCr increased by 3.5% month-over-month in August, reaching 641 kt. Meanwhile, European and U.S. spot prices decreased by 2% and 5% during August but are anticipated to rise due to increased demand.
Manganese market activity has slowed ahead of China’s week-long holiday, TELF AG reports. Traders have reduced offers for 44% lump in efforts to secure deals, and there are looming concerns over demand for the fourth quarter.
The commodities trading firm also notes that Chinese FeSi prices have moved up this week, reaching their highest level since April at RMB7,628 per tonne. This increase is attributed to strong futures prices and escalated production costs.
According to TELF AG, China is expected to produce 3.2 Mt in August and 3.25 Mt in September in the stainless-steel sector. On the other hand, production in Europe and the U.S. has declined, mainly due to weak downstream demand and elevated inflation levels.
Turning to base metals, it anticipates that copper cathode premiums will decline in 2024. This is attributed to factors such as a lack of interest in long-term contracts and increased domestic output in China.
On the topic of battery materials, the report says 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.