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Commodities News

Up-to-date news on raw materials


FT Mercati provides subscribers with a dedicated commodities news bulletin to stay up-to-date.
Here is a selection of the latest news:

11/14/2025

STELLANTIS ENDS THE CONTRACT WITH ALLIANCE NICKEL

Australian metals miner Alliance Nickel said that automaker Stellantis had terminated its binding offtake agreement for nickel and cobalt from the NiWest project in Western Australia, citing missed contractual milestones linked to challenging market conditions.
The termination would take effect on December 3, ending the supply deal announced in May 2023.
Alliance said the existing agreement had become “inoperative” as falling nickel prices and tighter financing conditions delayed project development.
Despite the termination, Stellantis has expressed interest in renegotiating new terms aligned with NiWest’s revised development timeline and current market realities.
“We understand the rationale for the Stellantis decision, and at the same time we recognise that this presents a good opportunity for both sides to negotiate on a new agreement which is more reflective of the revised project development timeline and forward strategy,” said MD Paul Kopejtka.
“I firmly believe that the long-term outlook for nickel and cobalt remains positive.”
Nickel prices have fallen sharply over the past two years, pressuring developers and complicating financing for new supply projects worldwide. Alliance said these conditions had forced it to defer project development activities while it sought funding “on terms that deliver value to shareholders".
The company is exploring strategic options, including a potential special purpose acquisition company transaction that could see it list on the Nasdaq, according to an earlier statement on October 28.
Alliance’s NiWest nickel/cobalt project, located near Leonora, is one of the country’s largest undeveloped battery metals projects, targeting production of high-purity nickel and cobalt for the electric vehicle market.

11/14/2025

BELL BAY ALUMINIUM SECURES ITSELF WITH A 12-MONTH ENERGY SUPPLY CONTRACT

Rio Tinto has reached a one-year extension to its energy supply agreement with Hydro Tasmania for the 195 kt/year Bell Bay smelter. The short-term agreement allows time to find a long-term solution, while Bell Bay's inclusion in the A$2 billion Green Aluminium Credit Scheme is being discussed in Australia. Energy costs remain a crucial challenge, although the authorities advocate a 10-15 year supply contract to ensure sustainability. The smelter's emissions fell to 3.97 tCO?e per tonne in 2024, the lowest level since 2023. Market analysts say the agreement temporarily reduces supply-side concerns, but does not eliminate the risk of future cuts.

11/14/2025

BASKET OPEC PRELIMINARY PRICE

OPECNA, the news agency of OPEC, announced the OPEC Basket preliminary price
13 november = $ 63.42 /b (down from previous daily value)
(The OPEC Reference Basket (ORB) introduced on 16 June 2005, is currently made up of the following: Algeria, Angola, Congo, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia , UAE and Venezuela.

11/14/2025

CHINA - TRADERS DIVIDED OVER DEMAND OUTLOOK; FUTURES HIT 1-YEAR HIGHS

At an industry conference in Xi'an, Chinese traders expressed mixed views on Aluminium demand. Some see weakness in consumption in construction, home appliances and solar and expect growth of just ~1.5% in 2026, while others point to falling inventories (627kt versus 649kt a month earlier) as evidence of resilience. SHFE futures rose 1.5% to 21,465 yuan/tonne (? $3,015/tonne), the highest in a year. The oversupply continues to weigh on the alumina and bauxite markets; spot alumina fob Australia remained around $316/tonne, close to three-year lows. The recovery of several mines in Guinea may put further pressure on bauxite prices ($72-74/tonne CIF China).

11/14/2025

CHINA - CRUDE STEEL OUTPUT SLUMPS TO NEAR FOUR-YEAR LOW IN LATE OCTOBER – CISA

Crude steel production among member mills of the China Iron & Steel Association (CISA) in late October fell close to the lowest level since late November 2021, according to the latest data published by the association on Wednesday November 5.
Output for October 21-31 (compared with October 11-20)
Crude steel: 1.82 million tonnes per day, down by 9.8%
Hot metal: 1.74 million tpd, down by 5.8%
Finished steel: 2.00 million tpd, up by 0.9%

CISA partly attributed the sharp drop in crude steel output to environmental restrictions in certain regions.
“Steelmakers are witnessing further pressure on profit margins, mainly due to surging raw materials costs,” a Shanghai-based iron ore trader said.
The notable decline in crude steel output also led to a reduction in steel inventories held by the steel mills and in warehouses.
CISA estimates for national production in late-October:
Crude steel: 2.22 million tpd,
Hot metal: 2.05 million tpd,
Finished steel: 3.99million tpd.

11/14/2025

ZINC DOWN LAST WEEK; GLOBAL ECONOMIC GROWTH CONCERNS

London Metal Exchange copper futures and the rest of the base metals declined during the week to Friday November 7 while prices consolidate after the previous week’s rally and amid concerns of economic growth slowing down in China, US and Europe.
The ZINC metal declined by 0.9% week on week to $3,060 per tonne. Zinc jumped to $3,115 per tonne on November 3 buoyed by low stock levels in the LME warehouses.
Zinc stocks in the exchange’s warehouses were 34,900 tonnes on Friday after 850 tonnes of the metal were delivered overnight. The LME held 35,300 tonnes of the metal previous week.
Zinc supply outside of China is tight, raising prospects for more price upside in the short term, Fastmarkets analyst James Moore said.
Still, zinc’s price gains could also be viewed as an opportunity by some traders to book profits because the metal’s fundamentals are set to weaken as supply picks up, Moore said.