U.S. Gulf:
Spot sulfuric acid prices remained in the $130-$135/mt CFR range amid reports of a quiet market.
Gulf Coast:
Sources quoted domestic U.S. pricing at $85-$110/st DEL for 2021 Gulf Coast contracts.
Century Aluminum on March 25 announced a finalized three-year contract with electricity provider Santee Cooper to provide power to the company’s Mt. Holly aluminum smelter, ending uncertainty as to whether the smelter would be able to continue operation. Century previously issued a notice to employees of an intent to curtail 100 percent of production by the end of 2020 should no deal with Santee Cooper be reached.
The agreement, effective April 1 and slated to run through December 2023, is expected to reduce the smelter’s second-quarter electricity costs by $25 million compared with Q1. The new stability will allow Century to quickly raise production to 50 percent of capacity, followed by an expected lift to 75-80 percent of capacity by the end of the year.
Sulfuric acid contracts in the Lower Atlantic region were noted in the $90-$110/st DEL range for 2021.
Midwest:
Tons destined for Midwest distribution were reported even with the Gulf Coast at $85-$110/st DEL.
West Coast:
Agreements for delivery into the West Coast market ran in the $100-$130/st DEL range for 2021.
Brazil:
Last-done into Brazil continued to be heard in the $135-$140/mt CFR range, steady from one week earlier.
China:
Falling spot copper treatment and refining charges (TC/RC), the price mines pay smelters to process raw ore, has prompted the China Smelters Purchase Team (CSPT) to decline setting a TC/RC price floor for the second quarter, Reuters reported. This is only the third team in its history that the CSPT has elected to forego a price floor.
The CSPT explained the move by claiming Chinese smelters have already purchased adequate ore supply for the quarter, pointing to planned second-quarter smelter turnarounds that are projected to remove up to 2 million mt/y of capacity during the period, thus taking approximately 200,000 mt of copper out of the market.
Recent spot TC/RCs at China were noted falling to $33.50/mt, below the first-quarter CSPT floor of $53/mt. Spot TC/RCs in South America were noted facing additional pressure, registering tender awards in the high-$10s/mt.