Battery Metals

Automotive magnesium alloy is defined as the mixture of magnesium with other metals such as aluminum, silicon, copper, zinc, manganese, zirconium, and rare earth metals. Aluminum is a common alloying element. It possesses various properties such as hexagonal lattice structure, high strength, high thermal stability, rigidity, high specific strength, and ductility which make it a light metal alloy that is used extensively in the manufacturing of automobile and original equipment manufacturing (OEM). Automotive magnesium alloy is used in the manufacturing of various interior parts of a vehicle, chassis such as in crank shaft, mounts, housings, oil pumps, cylinder crankcase, radiator support or carrier magnesium alloys, and other body parts which improve the aero dynamic performance of the vehicle by reducing its overall weight in the front of the vehicle. Magnesium alloys, in their cast forms, are generally used in applications such as high-performance vehicles, die-cast magnesium, camera bodies, and components in lenses. It also possesses properties such as scratch resistance as compared to aluminum and steel and helps in reducing vibrations and noise. In terms of chemical composition, most of the commercial magnesium alloys contain aluminum (3% to 13%) and manganese (0.1% to 0.4%). Many of them also contain zinc (0.5% to 3%) and some are hardened by heat treatment. They are suitable for use in more than one product form. For the purpose of extrusion, a wide range of shapes, bars, and tubes are made from M1 alloy where low strength is sufficient.

Factors such as trend in the automotive industry toward reducing the weight of vehicles to improve its performance is a major driver of the automotive magnesium alloy market. In addition to this, increase in investment in automotive manufacturing by emerging economies such as China and India is also boosting the automotive magnesium alloy market. Furthermore, improved R&D in providing vehicles with specifications such as aerodynamics and center of gravity is also propelling the growth of the automotive magnesium alloy market.

Factors such as poor corrosion resistance properties, variable properties of magnesium alloy in high pressure die cast (HPDC) parts, etc. are hindering the growth of the automotive magnesium alloy market. Moreover, magnesium, being a flammable element, is a major deterrent to the growth of the automotive magnesium alloy market.

Expectations of a rebound in steel production in China, along with signs of softening demand, are combining to cast a shadow over the valuation of listed Chinese steel companies.

Steel prices in China have weakened this year following a two-year bull run, with Shanghai-traded steel rebar falling 15 percent from a peak in December amid worries of renewed production growth and tepid demand.

Shares of most Chinese steelmakers like Baoshan Iron & Steel Co Ltd, Angang Steel Co Ltd and Maanshan Iron & Steel Co Ltd saw a sharp correction in February and March before staging a minor rebound. Reflecting investor caution over the sector’s outlook, price-to-earnings ratios of the shares of Baoshan, Angang and Maanshan are still hovering around one-year lows.

“I don’t see a lot of opportunities in steel sector,” said Pan Jiang, chief executive officer of private investment fund Shanghai V-Invest Co. “The supply-side reform has created a lot of positive effect in the last few years but does not look likely to gain much further momentum this year.”

Driven by Xi Jinping’s supply-side reform aimed at reducing industrial capacity and tackling emissions, China closed many illegal and polluting plants across the country in the last two years. The move sparked a major rally in prices of commodities from steel to aluminum as well as Hong Kong and mainland-listed shares of Chinese steel mills, which have long been plagued by overcapacity. Major steelmakers like Baoshan, Angang and Maanshan were the main beneficiaries of the reform as they gained more pricing power.

Now rising production and falling steel prices have started to weigh on the profits of steelmakers. China’s iron and steel industry, the biggest in the world, posted a slide in its profits for the first quarter. Baoshan and Angang are expected to see a drastic slowdown in their earnings growth this year, according to data compiled by Bloomberg. Maanshan Iron & Steel is likely to post a drop in earnings.

“The overall steel demand is falling from last year. We are relatively pessimistic,” said Yang Kunhe, an analyst with Pacific Securities Ltd, adding that China’s real estate and infrastructure spending are now in a downward trend, and that is unlikely to be offset by a recovery in manufacturing.

The A-shares of most Chinese steelmakers weakened on Monday, under-performing a slight increase in the benchmark Shanghai composite Index. Shares of Baoshan continued to rise after the company announced a price hike for some hot-rolled steel products last week. The stock gained 1.4 percent on Monday.

Yang’s industry view is largely in line with what Mysteel Research forecast at the end of last year. The consultancy expected the Chinese market to swing to surplus from deficit this year. It said steel production in China is likely to rise while demand would remain flat as a price rally to the highest in nine years prompts a surge in supply.

Citigroup is a bit more optimistic, expecting China’s steel demand growth to slightly outpace production increase. According to an April 15 note from the U.S. bank, China’s steel output is expected to rise 1.4 percent to 855 million metric tons this year, while demand will expand 1.5 percent to 752 million metric tons.

Chromium carbide market is likely to generate incremental dollar opportunity at a relatively moderate growth rate.Comparatively complex production procedures and corresponding higher prices for chromium carbide are anticipated to result in it being used in higher value applications. Furthermore, chromium carbide market encompasses relatively few core global players and several small and medium-size players operating in the market.In order to stay competent in the market, the players in the market are adopting several differentiating strategies. The companies in the market are strengthening their product portfolio by concentrating on certain strategic acquisitions and mergers that are intended to leverage the strength of the product of the company that has been acquired.

Other than this, gaining access to the leading clients in core industries such as power, oil and gas, and mining is likely to emerge as a noteworthy strategic approach. The companies operating in the market are OC Oerlikon Corporation AG, Pfäffikon, H.C. Starck GmbH, Praxair S.T. Technology, Inc., Alfa Aesar, Strem Chemicals, Inc., Changsha Langfeng Metallic Material Co., Ltd., and NewMet Ltd., among others.According to the PMR analyst, “The global chromium carbide market is expected to increase at a CAGR of 5.9% from 2018 to 2026. In 2017, the market was worth US$ 123.3 Mn and is expected to touch a valuation of US$ 206.7 Mn by the end of 2026.”

Consumption in Welding Electrode Applications to Augur Well for the Market : The use of chromium carbide in welding electrode applications presents considerable advantages. For instance, the deposited weld metal could be ground and is highly resilient to abrasive wear with moderate impact and is suggested for general hard facing applications on carbon steels, manganese steels and cast iron.Deposits are restricted to two layers to eradicate relief checks. Such welding electrode application advantages make chromium carbide a preferred choice for general hard facing applications on alloy steel, carbon steel, and cast iron parts. Unique components which are subject to such welding are dredger buckets, dragline teeth, bulldozer cutting edges, excavator shovels and agricultural implements.

Lately, chromium carbide has been finding key industrial applications in areas where wear resistance caused by abrasion, cavitation and particle erosion at high temperatures drastically reduces the life of an equipment. Chromium carbide surfacing has been found to resist oxide pick-up in high temperature atmospheres for steel production. Chromium carbide powder also has been finding increasing applications in areas where the coated part needs to function in an environment with moving solid particles and corrosive or erosive gases.

Unfavorable Features to Dampen Market Growth : Chromium carbide based cermets though find multiple applications on account of their special characteristics such as high levels of hardness of chromium carbide-nickel cermets, also display some undesired features such as comparatively poor mechanical properties.Moreover, in the case of certain stabilized stainless steel grades, chromium carbide has been found to be harmful to the corrosion resistance property of stainless steels. These dynamics, to an extent, have been restricting the use of chromium carbide, thereby dampening the market growth.

The rise of green energy technologies required for a low-carbon future is expected to lead to significant growth in demand for a wide range of minerals and metals, such as aluminum, copper, lead, lithium, manganese, nickel, silver, steel, and zinc and rare earth minerals, according to a new World Bank report, “The Growing Role of Minerals and Metals for a Low-Carbon Future.”

The report indicates that this would open a new window of opportunities in the extractive sector for resource rich countries. This calls for appropriate strategies and investments in the sector to ensure that they benefit fully.
There has been a global concern for the world to reduce global warning by 2 C in order to meet the 2015 Paris Climate Agreement.

Furthermore many developing countries lack geographical data on good geographical data on mineral deposits. There is the need to develop geographical mapping in these areas. Africa has not rare data for the continent’s deposits minerals and metals.

In addition, in a bit by countries to exploit this resource comes with environmental challenges that might derail the chances of meeting global target of fighting climate change.

Careful planning should be put in place to ensure that communities, ecosystem are not destroyed

According to the world economic forum, an efficient solar cells has been developed that keeps power up to 45% level than previously. This has made a stronger for argument for green technologies going to the future.

The International Energy Agency (EIA) projects that solar feasible become the world’s largest source of energy by 2050 due to its falling cost and increasing convenience

Solar energy can help us reduce our reliance on fossil fuel, which we need desperately need to do as our net emission of 37 gigatonnes of CO2 per year are causing destruction on the planet, causing global warming, extreme weather events, and many death

Now, the raw materials for these solar panels and cells are gotten from the extractive sectors. So how would the extractive sector contribute toward to a low-carbon future?

This calls for tradeoffs between developing these natural resources and the need to fight climate change and the allocation of financial resources. Resource rich countries would argue they need it to develop their economies and the argument for a low carbon future.

Are there other ways to reducing greenhouse emission than switching to low –carbon energy future?

The World steel association agrees that it produces Co2 into the atmosphere thereby causing global warming, it has come out with an improved steel that produces less Co2. More so, it is easily recycled in order to avoid the impact on the environment.

According to the UNEP, building account for 45% of global Greenhouse emissions. There are partially abatement options in the use of energy in lighting, heating and ventilation and the muse of appliances.

Building are currently concentrated in the cities: Urban population are 50% of the world’s population and make up 75%GHE.According to Arup Associates.

The IEA also projects that in order to half global GHE 2C energy efficiency would have to pay a huge role in that respect. Multiple energy efficiency methods would have come in building and the transport sectors. Changing vehicle make up and the materials used to manufacture the car could save energy and generally switching from the use of diesel to the use of electric cars whose parts would be made of minerals.

The C40 Fossil -Fuel-Free Street Declaration, the pioneering city leaders pledged to procure only zero emission buses from 2025 and ensure that major area of their city is zero emission by 2030.This an initiative by the majors of these big cities meeting the sustainable development goals. How can developing countries replicate such a move to ensure their cities area also emission free?

China is leading the way in renewable energy development thereby driving toward low carbon energy future. Ghana recently entered into a deal with China to mine bauxite in Ghana worth $460m at the current market price to unlock about $15billion of money from china to finance infrastructures in the country. Ghana according to the Ghana News Agency has a proven reserves of about 2.8billion metric tonnes of iron ore, 160 million metric tonnes of bauxite; 430 million metric tons of manganese and 430 metric tons of limestone excluding gold and oil.

This would help China in its renewable energy development drive.

The indigenes protested against this move by the government to use the Atiwa forest reserves for the mining of bauxite. The question is, should we leave it underground and not exploit it for the economic development? I do think we should approach the exploitation with an environmentally and Community -based strategy that would be mutually beneficial to the country. The communities would not be worse off and the country would also benefit.

There are two points of view regarding the extraction of natural resources being held by naturalists. The first point of view believes that the exploitation of natural resource is vital for development due to the fact that it brings about changes which promote economic growth.

The other school of thought sees it exploitation that leads to the impoverishment of the indigenes and does not promote economic growth and development, this is totally different from to what the first group believes. They said it exploitation leads to what they term the resource “curse’’.

These different views being held by them are based on the observation that natural resources rich countries such as Norway and Botwsana have steadily grown in their economic growth path. However, other countries without natural resource also undergo dynamic economic growth. A third group, notwithstanding their continued exploitation of the resource experienced stagnant growth path and sometime experienced negative growth in times past.

Contracts for 15 new vessels over the past year have boosted the tanker and bulker orderbook to 43 ships. Of the four segments into which LNG World Shipping breaks down the LNG-fuelled fleet for this annual review, the tanker and bulker segment has the largest orderbook.

There have been two notable ship completions in this segment so far in 2018. In April China’s Avic Dingheng yard handed over Fure Vinga to Furetank Rederi AB. The 17,999 dwt chemical/product tanker is the lead vessel in a series of six LNG-fuelled sisterships that the shipbuilder is constructing for operation within the Gothia Tanker Alliance (GTA) pool.

In February, Hyundai Mipo Dockyard (HMD) delivered the 50,000 dwt Ilshin Green Iris to Ilshin Shipping for charter to the Korean steelmaker POSCO. The largest LNG-powered bulk carrier yet built, Ilshin Green Iris sports a 500 m3 bunker tank manufactured from a new cryogenic high-manganese steel developed by POSCO.

The majority of orders for new vessels in this segment over the past year are for Aframax and Suezmax oil tankers of over 100,000 dwt. There are now 19 such tankers under construction on behalf of Sovcomflot, AET, Teekay and Rosneft. All but four will be powered by low-pressure, two-stroke engines from Winterthur Gas & Diesel (WinGD).

AET of Singapore and Vancouver-based Teekay Offshore have each contracted four newbuildings at Samsung Heavy Industries (SHI). Two of the four 113,000 dwt AET ships will be built as North Sea shuttle tankers, while all four 130,000 dwt Teekay ships will serve in such a role. Shuttle tankers, which load crude oil at offshore facilities and ferry the cargoes to shoreside refineries, are extensively used in the North Sea.

Wärtsilä has been contracted to supply its volatile organic compounds (VOC) recovery technology, LNG fuel gas handling systems and the auxiliary engines for the two AET and the four Teekay shuttle tankers. AET has chosen two-stroke WinGD units as the main engines for its vessels, while Teekay has opted for a propulsion system in which four-stroke, dual-fuel Wärtsilä engines drive electric main propulsion motors.

The AET and Teekay shuttle tankers will operate on LNG as the primary fuel, but the VOCs – the gas evaporating from the oil cargo tanks – will also be utilised as fuel by mixing it with the LNG. Wärtsilä states that by recovering the VOCs and combining them with LNG from dedicated bunker tanks, each ship can save up to 3,000 tonnes of fuel per annum. The LNG/VOCs mix can be utilised as fuel in the shuttle tankers’ dual-fuel main and auxiliary engines.

Statoil is chartering the two AET shuttle tankers, as well as two of Teekay’s 130,000 dwt quartet. Although bunker tank capacities for the shuttle tankers have not been revealed, they could be less than that required by dual-fuel Aframax tankers engaged in more general trading, due to the relative proximity of North Sea LNG fuelling stations and bunker vessels.

The second pair in the AET quartet of LNG-powered Aframaxes have been taken on long-term charter by Shell for crude oil transport operations centred in the Atlantic Basin. It is estimated that LNG-fuelled Aframax tankers engaged in open market trading would require upwards of 5,000 m3 of LNG bunker tank space to enable autonomous operations of required duration between refuellings.

At a service center outside Cleveland, Majestic Steel receives and processes metal from U.S. mills, then stores it in seemingly endless aisles of rolled steel. Each cylinder weighs several tons and, after the steel is shipped to customers, its final form could take the shape of a household appliance or an office building.

Some customers, such as those making license plates or road signs, need the steel as soon as possible. Others, such as those making garage doors or elevators for real estate, place orders several months in advance. That has presented a predicament for Majestic CEO Todd Leebow, since the uncertainty around President Donald Trump’s tariff policies makes it difficult to price steel that far in advance.

“Customers are trying to figure out based upon these tariffs and potentially quotas how that changes their supply chain and who they are going to be buying their product from,” Leebow told CNBC.

In the last three months, steel imported from China, Japan and Russia has become 25 percent more expensive, due to a new set of tariffs the White House announced on March 8. Steel from Europe and other allies is excluded temporarily. And there are new limits to how much steel and aluminum can be brought in from South Korea.

Companies that had previously sourced their steel from those countries are seeing their bottom line and supply chain change dramatically — with more competing for a limited supply of steel from U.S. mills as a result.

“When the initial ruling came out, there was some chaos in the market. I think that’s settled a bit,” Leebow says. Now, “I think the customers just really need certainty in terms of how they can operate their business.”

In the most recent quarter, “uncertainty” was raised in the earnings calls of 19 companies with market capitalizations over $5 billion, according to a CNBC analysis of call transcripts.

While imported steel and aluminum are adjusting to new, shifting sands on the trade landscape, a wide range of other industries are bracing for further rounds of tariffs to hit their business.

On March 31, the U.S. Trade Representative announced tariffs on $50 billion of Chinese goods after months investigating China’s alleged theft of U.S. intellectual property. USTR did not say whether, or when, the tariffs would take effect, only saying the U.S. would be legally allowed to implement them in late May.

Robert Lighthizer, the U.S. Trade Representative, said May 22 is the last day comments can be made on that initial $50 billion list. “We’ll need some time to process that, and after that, we can legally put them into place,” he told a China business event hosted by the U.S. Chamber of Commerce.

Equipment for beer brewing is on the list of products targeted by potential tariffs. Maui Brewing Co. founder Garrett Marrero bought six new, stainless steel tanks from China for $400,000 in late 2017 and says he’s relieved he didn’t wait to do so.

“If we had to spend another $100,000 because of tariffs, we would’ve had to buy one less tank,” Marrero told CNBC. Forgoing that upfront investment would have cost Maui Brewing $1 million in potential revenue, Marrero said. In 2017, Maui Brewing recorded about $20 million revenue with 55 employees.

Marrero is also bracing for the price of its aluminum cans to rise, too, due to tariffs on foreign aluminum. Ball Corp., Maui’s vendor, already raised prices this year, and if it happens again, Marrero said he’d consider increasing the price of a case of beer to offset the cost. The problem: It could take up to 180 days for wholesalers, restaurants and retailers to process the change.

“We can make the decision quickly,” Marrero said. “It just takes a long time to put it into effect.”

The implementation of the tariffs could be stalled if trade negotiations with China make progress. China’s top economic official, Vice Premier Liu He, is visiting Washington to continue talks after a U.S. delegation traveled to Beijing in early May for “frank discussions” with their Chinese counterparts.

To increase the temperature ahead of those talks, Trump has suggested he could target another $100 billion in Chinese goods with tariffs, although neither he nor his trade officials have said what products would be included. Footwear and apparel companies are worried a net cast that wide would include their products, too.

Matt Priest, the CEO of the Footwear Distributors and Retailers of America, said he understands the approach of the Trump administration to use the tariffs as leverage but is unsure of its outcome.

“How certain is this policy actually going to be, and if it’s uncertain, do we go and make a certain business decision based on that uncertainty?” Priest said to CNBC.

Publicly traded shoe company Steve Madden manufactures roughly 90 percent of its shoes in China, the result of a long-term manufacturing decision that can’t be easily reversed because of change in Washington policy.

“Really what would happen is that would end up in the price of the goods to the consumer,” CEO Edward Rosenfeld told CNBC, referring to the potential for increased costs. “That’s the unfortunate reality of what these tariffs would mean.”