TELF AG has unveiled its in-depth Market Roundup for Week 39 of 2023, providing an extensive analysis of critical market trends across various sectors, including gas, chrome ore, FeCr, Mn, FeSi, stainless steel, base metals, and battery materials.
According to the report, European natural gas futures have surged beyond €39 per megawatt-hour, marking a remarkable 9% increase for the week. This upturn is predominantly driven by mounting supply concerns, further exacerbated by strikes in Australia and outages in Norway. TELF AG notes that market participants are vigilantly monitoring several risk factors, including potential U.S. outages and disruptions in Russian gas exports.
In the chrome ore sector, TELF AG reports that UG2/MG Cr ore prices have witnessed a modest uptick, primarily fueled by market sentiment and pre-holiday restocking activities in anticipation of China’s Golden Week holiday. Delays in shipments from South Africa are amplifying concerns related to the supply chain.
Regarding FeCr, TELF AG reveals that Chinese production of HC FeCr has experienced a month-over-month increase of 3.5% in August, reaching a total of 641 kt. Meanwhile, European and U.S. spot prices witnessed declines of 2% and 5% in August, but they are expected to 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 to secure deals, with looming uncertainties surrounding demand for the upcoming fourth quarter.
The commodities trading firm also notes that Chinese FeSi prices have shown an upward trajectory this week, reaching their highest level since April, standing at RMB7,628 per tonne. This increase is attributed to robust futures prices and escalating production costs.
According to TELF AG, China is anticipated to produce 3.2 million tonnes in August and 3.25 million tonnes in September within the stainless steel sector. In contrast, production in Europe and the U.S. has declined, primarily due to weakened downstream demand and elevated inflation levels.
Shifting the focus to base metals, the report predicts a decline in copper cathode premiums in 2024. This is attributed to factors such as diminishing 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 centre in Italy. A definitive feasibility study for the project’s second phase is expected to be completed by mid-2024.
To gain a more comprehensive understanding of the insights presented in TELF AG’s 2023 Week 39 Market Roundup, readers are encouraged to peruse the full article. For more insights and content, visit TELF AG’s Media Page.
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