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1) The London Metal Exchange (LME) announced new measures that it hopes will revive its nickel contract trading after last year's trading chaos. LME is working with China's Qianhai Mercantile Exchange, also owned by Hong Kong Exchange and Clearing, to launch a new lower-grade nickel contract. The disconnect between the high-grade nickel linked to the LME nickel contract and surging production of lower-grade metal was a key ingredient of the chaotic price action that took place last year. LME will also make permanent the price limits imposed on all metals and it will tighten the caps on main metals copper and aluminum from 15% to 12%. "The LME is committed to rebuilding liquidity in LME nickel and, alongside reopening Asian hours nickel trading earlier this week, is today introducing a fast-track listing approach and fee waiver for new LME nickel brands," its statement said.
2) Vale, the Brazilian iron-ore mining giant, has announced that it signed 7 agreements with different Chinese partners to reinforce its strategic agenda in Asia. Vale's subsidiary, PT Vale Indonesia, has signed a Project Investment Agreement with Taiyuan Iron & Steel Co. Ltd. and Shangdong Xinhai Technology Co, to build a Rotary Kiln-Electric Furnace (RKEF) ferronickel processing plant with a minimum production of 73,000 tons a year, along with other supporting facilities in the district of Morowali, Indonesia. It is expected to start up in 2025 and is anticipated to be a green and low-carbon project. Vale also signed multi-year memorandum of agreement with 2 Chinese banks, Industial and Commercial Bank of China (ICBC) and Bank of China (BOC), with intent to provide credit support to Cale through loan facilities, project finance, trade finance, asset finance, and bank guarantees. The Brazilian company also signed a cooperation agreement with Baoshan Iron & Steel that relates to the development of biochar in the steel industry. Vale will also buy several models of a motor grader from XCMG, a Chinese miner and construction machinery group, after it develops and tests its motor graders. Finally, Vale has signed a cooperation agreement with Central South University to strengthen technical cooperation, with Vale donating $5.8 million to the school.