METALS & MINING ALERT：DAILY PRICES AND NEWS：OPEC EXTENSION

Industrials (/lb): aluminum $0.89 (+0.8%), copper $2.60 (+0.7%), lead $0.95(+0.4%), molybdenum $7.82 (+0.0%); nickel $4.10 (-0.7%); zinc $1.19 (-0.1%);Precious (/oz): gold $1,256 (-0.2%), silver $17.32 (+0.9%); Steel (/mt): ChinaHRC $496 (0.0%), SHFE Rebar $469 (-1.1%), MB Scrap Index $265 (+0.0%);Bulks: iron ore (/dmt) $59 (-2.6%), coking coal (/mt) $155 (+0.0%), freight (BCI)1,595 (-3.6%); Energy: Brent (/bbl) $51.46 (-4.6%), WTI (/bbl) $48.90 (-4.8%),natural gas (/mmBtu) $3.18 (-0.8%), thermal coal (/t) $74 (+0.0%).Oil production cut extended for nine months at last OPEC meeting. Coalition ofoil producers reduced output by ~1.8Mbpd six months ago, but failed toachieve sustainable price recovery, as global oil inventories remain high on USshale production. Surplus inventories likely remaining until 2018/early 2019,while OPEC believes the end to be 2017. (AME, DB)

    US steel import permits for May through 5/23 total 2.7m st. If adjusted to a fullmonth, imports would be 3.7m st (+28% YoY), vs. April permits of 3.5m st andimports of 3.3m st. Semis (+263kt, +32%) appear to increase the most MoM,followed by wire rods (+57kt, +38%) and rails (+40kt, +185%), whereas, oilcountry tubular goods (-79kt, -23%), hot-rolled sheets (-40kt, -23%) andstructural shapes (-30kt, -31%) permits are decreasing. (US Import Administration)Possible Free Trade Agreement between Australia and Peru, could unlockopportunities for Australian miners and lead to further market access. Bothcountries have significant potential for mining synergies. (Mining weekly)

    Nucor to build $176m 0.5mt galvanizing and pickling line at Gallatin sheet millin Ghent, KY. The line should expand product portfolio and cater to newautomotive market segments. Nucor’s automotive sheet/engineered barshipments totaled 1.6m tons (~8% of mill total) in 2016, and targets to achieve2m tons by 2018. (Company, DB)

    Barrick (ABX) 2017 guidance unchanged after Tanzanian governmentallegations against Acacia Mining understating contents of its exports. AcaciaMining, 63.9% owned by ABX, is expected to contribute 545-575koz ofattributable gold, ~10% of Barrick’s full guidance. Operations impacted by thecurrent exports (Bulyanhulu and Buzwagi) account for ~6%. (Company)Continued strike at Freeport’s (FCX) Grasberg, Indonesia mine likely to impactmining and milling rates. >9,000 workers extended strike to a 2nd month onemployment term dispute, ~4,000 miners considered as to have resigned. FCXto re-allocate resources and train additional workforce. (Reuters)

    Missouri's House passes bill which may allow New Madrid aluminum smelter(263ktpa) to restart. Bill to discount electrical rates for users of >50MW/month.The smelter has been idled since 2016 and is currently owned by ARGInternational. Restarting of smelter would likely pressure Midwest premium.(Wichita Eagle, DB)