Metals &Mining Alert:Daily prices and news,Iron ore price could decline further in short-term

Industrials (/lb): aluminum $0.84 (-0.2%), copper $2.63 (-0.1%), lead $1.02(+1.1%), molybdenum $7.14 (+0.0%); nickel $4.09 (-0.6%); zinc $1.23 (+0.6%);Precious (/oz): gold $1,245 (-1.0%), silver $16.61 (-0.6%); Steel (/mt): ChinaHRC $512 (+1.8%), SHFE Rebar $455 (+1.7%), MB Scrap Index $276 (+0.0%);Bulks: iron ore (/dmt) $57 (+0.0%), coking coal (/mt) $148 (+0.0%), freight (BCI)1,005 (+1.8%); Energy: Brent (/bbl) $45.83 (+0.6%), WTI (/bbl) $43.38 (+0.9%),natural gas (/mmBtu) $3.03 (+3.3%), thermal coal (/t) $81 (-0.1%).

    Iron ore price may come under pressure from seasonal downturn in steeldemand during the Chinese summer. (2H17 average DBe price $53/t vs. spot$57/t) Port inventories continued upward trend and touched a record high of132m tons (+3.4 tons WoW). While Chinese demand is robust right now,additional supply is expected to outweigh demand. BHP Billiton confirmed theyare expanding capacity from 260mt/pa to 290mt over the next few years andongoing expansions from Vale (S11D) will also contribute to global supply andweigh on prices. (SBB, Bloomberg Finance LP).

    China exported 3.9mt of flat steel (+6% MoM, +2% YoY) and 1.5mt of bar(+18% MoM, -62% YoY) in May. YTD (through May), China’s flat steel exportvolume decreased 3% to 18.8mt, while bar exports fell 55% to 8.5mt. Increasein May exports was due to shipments being booked in March and April whendeclining Chinese prices renewed global market competitiveness. Juneshipments expected to remain strong as prices were weak in April. (SBB)Russia and Kazakhstan raise gold holdings in May to 1,707 (+20 MoM) and275 tons (+5 MoM), respectively. Turkey, the world’s 4th largest consumer ofgold also raised holdings to 441 tons (+5 MoM). (Reuters).

    South Africa’s Chamber of Mines challenges new charter in court despitebeing offered to negotiate by mining minister. The Chamber of Mines,representing companies like Anglo American and Glencore, are against blackownership being raised to 30% from 26% and the 1% fee which is payable onannual sales. (Reuters).

    US steel output decreases 0.6% WoW to 1.73m st (-1.5% YoY), with utilizationat 74.2% (-40bps WoW, -90bps YoY) for week ending 6/24 on lower outputfrom Great Lakes and Southern Mills. YTD output totals ~43m st (+2.3% YoY)with utilization at 74.4% (+180 bps YoY). (AISI).

    Commercial Metals announces promotion of Barbara Smith to CEO from COO,effective September 1, 2017 as part of its long-term succession plan. JosephAlvarado (former CEO) will continue serving as Chairman of Board untilJanuary 2018. Separately, company announces public offering for $300m ofSenior Notes, under a debt self registration. Net proceeds to be used to fund acash tender offer for $300m of 7.35% Notes due 2018 and to redeemremaining 2018 Notes (~$400m outstanding). (Company)