Asian Metal meets MRI Trading during LME week

On 8th Oct 2013, Asian Metal analysts, Chi Hin Ling, Elliott Day and Scott Yarham, met with Martin Nunez from MRI Trading AG.

MRI Trading AG, based in Zug, Switzerland, is a leading metal and mineral trading house, specialising in non-ferrous ores, concentrates, ferroalloys, minor metals and their derivatives.

Martin explained to Chi, responsible for the EMEA Chrome and Manganese Department at Asian Metal, that he is now focusing more on the chrome and manganese business – supplying African and South American material to the Asian, Chinese and European markets, as he believes that this business can fully utilise the MRI strength in the local and international knowledge and market intelligence acquired through their field offices around the globe. Over the discussion with Chi, Martin agreed that the chrome and manganese markets are unlikely to see significant rebounds for the remainder of this year, but he is confident that an improved Chinese demand will help the markets to recover in Q2, 2014.

Elliott Day, European Noble Ferroalloy Market Analyst for Asian Metal, enjoyed meeting with Martin to exchange views and opinions on the international ferrovanadium and vanadium markets. Mr Nunez agreed that the thinly traded European ferrovanadium 80%min spot market will remain subdued through the remainder of this year as major steel groups continue to take sufficient levels of material through existing long term supply contracts with western producers. Martin held a more positive outlook for next year, claiming that a resurgence in Chinese manufacturing output and a brighter picture in the eurozone should lead to a recovery in the European ferroalloy markets in Q2, 2014. Martin was also interested in discussing near term vanadium mining projects, either close to production in the case of Largo Resources in Brazil, as well as the Atlantic Ltd Winidumrra project in Australia which has been ramping up projection in recent months.

Scott Yarham, Minor Metals Analyst for Asian Metal, discussed the current cobalt market and the potential scenarios that the market may witness moving forward into Q4. Mr. Nunez explained that the biggest concern currently is the power issues being experienced in the DRC that has negatively affected Tenke’s production. He was interested in learning more about the proposed export ban that the Congolese Government has stated will come into effect in December this year. The common feeling was that this ban will not come into place and simply be replaced by a higher tax, however it is expected that prices will rise in the period leading up to this, predominantly driven by speculation in the market. Martin explained that right now demand is rather soft with the hope that the battery market, particularly within battery operated vehicles, will result in a far more healthy market in 2014.

Martin showed appreciation to Asian Metal services and confirmed that Asian Metal is a useful tool on making market calls. He added that he would like to strengthen the cooperation between the two parties for mutual benefits in the future.