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Higher nickel prices raise superalloy costs in July

  • Spanish Market: Metals
  • 04/08/20

The cost of nickel-based superalloys for the aerospace industry climbed last month on rising nickel prices, but reduced superalloy demand could limit end-user exposure to the price increase.

Argus estimates that the total intrinsic value of Inconel 718 alloy, with 52pc nickel, 19pc chromium, 5pc niobium and 3pc molybdenum, rose to $5.8355/lb on 30 July, up from $5.5996/lb at the start of the month. This increase was underpinned by the value of nickel in this alloy moving up to $6.376/lb by the end of July from $5.927/lb on 1 July, with prices for molybdenum, chromium and niobium all remaining broadly flat over the period.

Overall, the official three-month LME nickel contract surged to a six-month high of $13,806/t on 31 July, its highest since $13,840/t on 21 January, as prices realigned more closely with fundamentals and cost curves, following a sharp knock in March as Covid-19 ripped across industry globally. The nickel market is also being bolstered by expectations of growing longer-term demand from battery manufacturers.

This rise in costs for nickel-based superalloys may discourage buyers in the aerospace and oil and gas industries, which have been hit hard by the pandemic. But the impact may be diminished as low consumption rates encourage consumers to rely on their existing inventories rather than buy top ups in the spot market.

Nickel-based alloys used in the aerospace industry are corrosion resistant and high creep-rupture strength alloy that can withstand temperatures as high as 700°C. In the battery sector, nickel is a key component in lithium-ion, nickel-cobalt-aluminium (NCA) and nickel-cobalt-manganese (NCM) batteries, offering greater energy density and increased storage capacity.

Cr drops to 14-year low, Co edges up

Chromium prices in Europe and the US plummeted last month to their lowest since mid-2006, as the aerospace sector's malaise continued to permeate the high-temperature materials space.

Argus-assessed prices for min 99pc aluminothermic chromium reached $5,800-6,000/t dp Rotterdam on 7 July, their lowest since $5,900-6,100/t on 31 May 2006. By mid-2020, the market had erased March's gains in response to tighter feedstock availability and higher input costs. Similarly, prices for aluminothermic chrome sank to a 14-year low of $2.95-3.05/lb on 31 July.

By contrast, and despite weak superalloy demand, the US cobalt market registered a slight recovery in July, with rising costs for hydroxide and delays to shipments from South Africa and the Democratic Republic of the Congo supporting prices. Fob US prices for min 99.8pc cobalt warehouse fell to $13.28-14.10/lb on 14 July, but then rose for the first time in 21 weeks to reach $13.50-14.00/lb on 21 July. The market extended these gains to reach $13.70-14.20/lb on 28 July.

In Europe, higher hydroxide prices and tighter supply boosted prices for the chemical grade cobalt but the alloy grade remained unchanged.

European prices for 99.8pc min chemical grade cobalt rose to $14.25-14.70/lb on 30 July, swinging to a premium to the alloy grade for the first time since June 2019. Alloy grade cobalt on 30 July was assessed at $14.10-14.60/lb on limited demand.

Ti turnings supply tightens in Europe

Prices for titanium turnings in Europe strengthened slightly in late July on the back of a supply shortfall, as reduced aerospace manufacturing dented their production as shavings during the manufacturing processes.

Supply tightness was sufficient to more than offset a drop in consumption, with some European ferro-titanium producers moving to cut output to 50-60pc in anticipation of this turnings shortfall in the third quarter.

Argus-assessed European prices for unprocessed 6Al4V titanium turnings at 72-80¢/lb in late June — their lowest in more than three years — but values then rebounded to 74-81¢/lb on 21 July. Consumers of turnings typically do not build up inventories due to the material being a fire hazard.

Meanwhile, US dealers and recyclers — which have been struggling to sell aerospace-grade titanium scrap — began to bundle excess supply along with ferrous-grade scrap, targeting opportunities to sell into Europe.

US titanium demand was little changed in July from June, with mill capacity having been significantly scaled back. Scrap availability in the US market is higher because defence production is ring-fenced by the government, and does not slow even amid challenging economic conditions.

Dealer buying prices for ferro-titanium turnings (85pc Ti non-tin bearing) hovered near a 3.5-year low of 20-25¢/lb on 30 July. They were last assessed in the same price range on 29 December 2016.


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31/01/25

Trump tariffs on Canada, Mexico to include oil: Update

Trump tariffs on Canada, Mexico to include oil: Update

Updates with comments from Trump, plan for 10pc crude tariff. Washington, 31 January (Argus) — President Donald Trump said late Friday he will proceed with plans to impose 25pc tariffs on imports from Canada and Mexico on 1 February, with crude imports likely to be taxed at a lower 10pc rate. Trump separately plans to impose tariffs on imports from China on 1 February. Asked if his Canada tariffs would include crude imports, Trump said, "I'm probably going to reduce the tariff a little bit on that," he told reporters at the White House. "We think we're going to bring it down to 10pc." Trump, who previously tied tariffs on imports from Canada, Mexico and China to their alleged inability to stem the flow of drugs and migrants into the US, today insisted that the tariffs he plans to impose on Saturday in fact have a strictly economic rationale and are non-negotiable. The tariffs expected on Saturday "are not a negotiating tool", Trump said. "No, it's pure economic … we have big deficits with all three of them." Trump, in a wide ranging gaggle with reporters, separately mentioned that he would impose tariffs on imported chips and oil and natural gas. "That'll happen fairly soon, I think around 18 February," he said. It was not clear from his remarks if he meant that all oil and gas imports into the US would be taxed, or if he referred to supply only from Canada and Mexico. Trump said he would also raise tariffs on imported steel, aluminium and eventually copper as well. Trump brushed away criticism of potential negative impacts from his tariffs. "You will see the power of the tariff," Trump said. "The tariff is good, and nobody can compete with us, because we have by far the biggest piggy bank." The looming face-off on tariffs has unnerved US oil producers and refiners, which are warning of severe impacts to the integrated North American energy markets if taxes are imposed on flows from Canada and Mexico. Industry trade group the American Petroleum Institute has lobbied the administration to exclude crude from the planned tariffs. Canadian prime minister Justin Trudeau reiterated today that Ottawa would retaliate against US tariffs. Mexican president Claudia Sheinbaum also said her country has prepared responses to US tariffs . Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Canadian producers have much less flexibility, as more than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Canadian crude that flows through the US for export from Gulf coast ports would be exempt from tariffs under current trade rules, providing another potential outlet for Alberta producers — unless Trump's potential executive action on Canada tariffs eliminates that loophole. Tariffs on imports from Canada and Mexico would most likely have the greatest impact on US Atlantic coast motor fuel markets. New York Harbor spot market gasoline prices are around $2/USG, meaning a 25pc tariff on Canadian imports could up that price by as much as 50¢/USG. This could prompt buyers in New England or other US east coast markets to look to other supply options. Canadian refiners could also start sending their product to west Africa or Latin America. US refiner Valero said that the tariffs could cause a 10pc cut in refinery runs depending on how the tariffs are implemented and how long they last. Gas, petchems, steel and ags threatened The tariffs may affect regional natural gas price spreads and increase costs for downstream consumers, but there is limited scope for a reduction in gas flows between the two countries — at least in the short term. The US is a net gas importer from Canada, with gross imports of 8.36 Bcf/d (86.35bn m³/yr) in January-October, according to the US Energy Information Administration (EIA). The US' Canadian imports far exceeded the 2.63 Bcf/d it delivered across its northern border over the same period, EIA data show. Tariffs on Canadian and Mexican imports also will disrupt years of free flowing polyethylene (PE) and polypropylene (PP) trade between the three countries, market sources said. North American steel trading costs could rise by as much at $5.3bn across the three nations, since Mexico and Canada are expected to issue reciprocal tariffs against the US, as it did when Trump issued tariffs in his first term. The tariffs could also disrupt US corn and soybean sales , since China and Mexico account for 48pc of US corn exports and 61pc of US soybean exports since 2019, according to US Department of Agriculture (USDA) data. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexican GDP growth in 4Q lowest since 2021


31/01/25
31/01/25

Mexican GDP growth in 4Q lowest since 2021

Mexico City, 31 January (Argus) — Mexico's economy slowed in the fourth quarter to its lowest pace since early 2021, as the agriculture and industrial sectors dragged on growth. Mexico's gross domestic product (GDP) growth slowed to annualized rate of 0.6pc, statistics agency Inegi reported. This is down from an annual 1.6pc in the third quarter and 2.1pc growth in the second quarter, which was the strongest quarter last year. The result marks the slowest growth in 15 quarters for Mexico, coming in below estimates. This was largely due to annualized 4.6pc decline in the agriculture sector, swinging from 4.1pc growth in the third quarter as drought conditions return. Inegi reported the industrial component of GDP also contracted, down 1.7pc in the fourth quarter, compared with a 0.5pc expansion in the previous quarter, on slowing construction and persistent declines in the oil component. Services, meanwhile, expanded an annualized 2.1pc in the fourth quarter, compared with a 2.2pc expansion in the previous quarter. Inegi reported full-year GDP growth at 1.5pc in 2024, slowing from 3.3pc in 2023 and the lowest level since the pandemic-stricken downturn in 2020. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump tariffs to hit Canada, Mexico, China on 1 Feb


31/01/25
31/01/25

Trump tariffs to hit Canada, Mexico, China on 1 Feb

Washington, 31 January (Argus) — President Donald Trump will proceed with plans to impose 25pc tariffs on imports from Canada and Mexico and 10pc on imports from China on 1 February, the White House said today. The White House pushed back on reports that the tariffs would be delayed and declined to confirm whether Trump made a decision on whether to exclude Canadian and Mexican crude from the tariffs. "Those tariffs will be for public consumption in about 24 hours tomorrow, so you can read them then," the White House said. The looming face-off on tariffs has unnerved US oil producers and refiners, which are warning of severe impacts to the integrated North American energy markets if taxes are imposed on flows from Canada and Mexico. Industry trade group the American Petroleum Institute has lobbied the administration to exclude crude from the planned tariffs. Trump on Thursday acknowledged a debate over the application of tariffs to oil but said he had yet to make a decision on exemptions. The White House dismissed concerns about potential inflationary effects of Trump's tariffs. "Americans who are concerned about increased prices should look at what President Trump did in his first term," it said. Canadian prime minister Justin Trudeau reiterated today that Ottawa would retaliate against US tariffs. Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Canadian producers have much less flexibility, as more than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Canadian crude that flows through the US for export from Gulf coast ports would be exempt from tariffs under current trade rules, providing another potential outlet for Alberta producers — unless Trump's potential executive action on Canada tariffs eliminates that loophole. Tariffs on imports from Canada and Mexico would most likely have the greatest impact on US Atlantic coast motor fuel markets. New York Harbor spot market gasoline prices are around $2/USG, meaning a 25pc tariff on Canadian imports could up that price by as much as 50¢/USG. This could prompt buyers in New England or other US east coast markets to look to other supply options. Canadian refiners could also start sending their product to west Africa or Latin America. US refiner Valero said that the tariffs could cause a 10pc cut in refinery runs depending on how the tariffs are implemented and how long they last. The tariffs may affect regional natural gas price spreads and increase costs for downstream consumers, but there is limited scope for a reduction in gas flows between the two countries — at least in the short term. The US is a net gas importer from Canada, with gross imports of 8.36 Bcf/d (86.35bn m³/yr) in January-October, according to the US Energy Information Administration (EIA). The US' Canadian imports far exceeded the 2.63 Bcf/d it delivered across its northern border over the same period, EIA data show. Tariffs on Canadian and Mexican imports also will disrupt years of free flowing polyethylene (PE) and polypropylene (PP) trade between the three countries, market sources said. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Saudi 2mn t/yr steel mill to be sold


30/01/25
30/01/25

Saudi 2mn t/yr steel mill to be sold

London, 30 January (Argus) — A 2mn t/yr long and flat steel production plant in Dammam, Saudi Arabia, is up for sale, US-based global asset management company Gordon Brothers said. The mill, which has not operated for nearly two decades, houses two billet casters, a thin slab caster, a 5-stand 4-high hot strip mill, an induction furnace, an electric arc furnace, a ladle refining furnace, and diesel power generators. The plant was previously operated by Saudi steelmaker Al Tuwairqi. The company in 2006 contracted South Korea's Posco Engineering to supply machinery and equipment to the plant, but the equipment has remained unused since its shipment, coinciding with the global financial crisis in 2008. Al Tuwairqi has a 1.85mn t/yr long steel mill in Makkah, a billet and rebar production site with 1.5mn t/yr capacity in Dammam, and 500,000 t/yr of direct-reduced iron (DRI) capacity. The equipment in Dammam dates from 1994-2008 but could be upgraded if necessary, and the company could potentially commence production soon after, market sources said. Once the mill is operational, it is expected to increase domestic output. Market participants would welcome the additional capacity, given strong current demand bolstered by large-scale construction and infrastructure projects in the region. The addition of flat steel capacity is particularly attractive because the Gulf Co-operation Council region imports most of its flat steel and has few producers. A US steel company is considering purchasing the mill, market participants have suggested, although no official statements have been made. By Elif Eyuboglu Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Recent deep-sea and short-sea cfr Turkey scrap deals


30/01/25
30/01/25

Recent deep-sea and short-sea cfr Turkey scrap deals

London, 30 January (Argus) — A summary of the most recent deep-sea and short-sea cfr Turkey ferrous scrap deals seen by Argus. Ferrous scrap short-sea trades (average composition price, cif Marmara) Date Volume, t Price, $ Shipment Buyer Seller Composition Index relevant 27-Jan 3,000 350 February Marmara Romania Bonus Y 24-Jan 3,000 329 January Marmara Romania HMS 1/2 90:10 N 22-Jan 3,000 325 January Marmara Bulgaria HMS 1/2 90:10 Y Ferrous scrap deep-sea trades (average composition price, cfr Turkey) Date Volume, t Price, $ Shipment Buyer Seller Composition Index relevant 29-Jan 30,000 349 (80:20) February Iskenderun USA HMS 1/2 80:20, P&S, shred Y 28-Jan 40,000 340 (80:20) March Izmir UK HMS 1/2 80:20, bonus Y 28-Jan 30,000 342.50 (80:20) February Izmir Scandinavia HMS 1/2 80:20, P&S, bonus Y 28-Jan 30,000 342.50 (80:20) February Izmir USA Shred, bonus Y 22-Jan 18,000 332.50 (80:20) February Iskenderun Cont. Europe HMS 1/2 80:20, shred, bonus N 22-Jan 30,000 345 (90:10) February Iskenderun USA HMS 1/2 90:10, bonus (option) Y Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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