1. Macro perspective The US-Iran conflict entered its second week. After the escort coalition intervened, traffic through the Strait of Hormuz partially recovered, but war risk insurance rates remained elevated. Brent crude pulled back from a high of USD 101 to consolidate around USD 95, with energy cost support weakening from earlier levels but not yet fading. The US Fed delivered a 25bp rate hike at its September FOMC meeting, and the dot plot indicated one more hike may still occur this year. Chair Warsh struck a hawkish tone in his post-meeting remarks, and the US dollar index held at a 13-month high. Next week, attention turns to China's official PMI on September 30, as well as US PCE and non-farm payrolls data during the National Day holiday—with China's market closed for seven days...
The Czech mineral water brand has entered the emerging canned water category with a 250 ml Slim aluminium can, combining its heritage positioning with a modern packaging format. Vincentka, a long-established Czech natural mineral water brand, has introduced a 250 ml Slim aluminium can in partnership with CANPACK. The move brings the brand into an emerging mineral water packaging category, where aluminium cans offer an alternative format for consumers seeking refreshment on the go. Produced at CANPACK’s facility in Brzesko, Poland, the can features a Superwhite effect and Matt varnish finish. The design aims to give the packaging a premium appearance while retaining Vincentka’s natural brand identity. A heritage brand enters a new format Vincentka’s move into aluminium packaging brings its...
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Kaili municipal government of Guizhou signed an investment agreement with Sichuan Qiya Aluminium Industry on December 6. Under the agreement, Qiya will supply 500,000 tonnes of recycled aluminium, 300,000 tonnes of aluminium processing projects, 20GW monocrystalline silicon rods and 20GW photovoltaic slices. The agreement was signed under the presence of Li Jian, the Vice Chairman of Guizhou Provincial People's Political Consultative Conference and Secretary of Qiandongnan Provincial Party Committee, along with Yang Guangjie, the Deputy Secretary of the Provincial Party Committee and Governor, held a meeting with Tong Wenqi, the Chairman of Qiya Group Co., LTD. About the investment Li Jian and Yang Guangjie greeted Tong Wenqi and his entourage on behalf of the state party committee and...
LME aluminium opened at US$2237 per tonne yesterday, with its high and low at US$2248 per tonne and US$2222 per tonne, respectively, before closing at US$2248 per tonne, up 0.11 per cent. On December 21, the LME aluminium live price chart showed descending price trends. The LME aluminium cash bid price and the LME aluminium official price dampened by US$12.50 per tonne or 0.57 per cent and US$12 per tonne or 0.53 per cent to officially close at US$2,179 per tonne and US$2,180 per tonne. The highest recorded hike of the year was on January 18, when the LME aluminium price stood at US$2,636 per tonne. In a matter of eight months, the aluminium price fell by 21.53 per cent to US$2,068.50 per tonne on August 21, the lowest recorded rate of the year. On December 11, the aluminium price marked...
According to the International Aluminium Institute data, primary aluminium production in Africa amounted to 132,000 tonnes during November 2023, bringing the total output to 1.46 million tonnes in eleven months. The production in November fell by 7,000 tonnes or 5.04 per cent month-on-month from 139,000 tonnes but grew by 6,000 tonnes or 4.76 per cent from 126,000 tonnes. The month-on-month decline in November 2023 followed a hike in the previous month by 4.5 per cent from 133,000 tonnes to 139,000 tonnes. The total production from January to November 2023 also marked a drop of 1.35 per cent from 1.48 million tonnes during the corresponding period of the previous year. Africa’s daily average production in November 2023 was 4,400 tonnes, down by 100 tonnes from the previous month and up by...
On Friday, December 22, China's average alumina spot price increased by RMB 6 per tonne after remaining unchanged since December 19. As per the data, the alumina price as of today has clocked at RMB 3,004 per tonne, followed by a growth of RMB 10 per tonne in Shandong and Shanxi to close at RMB 2,955 per tonne and RMB 3,020 per tonne. In Henan the alumina price has added RMB 5 per tonne to settle at RMB 3,015 per tonne. Previously, SMM had predicted that the overall aluminium production in December may record a Y-o-Y ascend of 3.5 per cent. China's total aluminium production in 2023 is predicted to be 41.5 million tonnes, a 3.6% increase year on year. This can be one of the reasons for the growth in the price of alumina. As per the Shanghai Metals Market (SMM), China's A00 aluminium ingot...
According to the Shanghai Metals Market data, aluminium billet inventories in China have recorded a plunge of 17,300 tonnes or 21.05 per cent week-on-week across the five major Chinese consumption areas. Thus, the inventories have come in at 64,900 tonnes on December 21 compared to 82,200 tonnes on December 14. The W-o-W decline on December 21 was primarily contributed by Foshan, followed by Huzhou and Wuxi. The chart below indicates the current status of Chinese aluminium billet inventories in more details: In Foshan, aluminium billet inventories shrank by 9,800 tonnes from a week ago to settle at 30,100 tonnes as of December 21. Huzhou is the second-highest contributor to the weekly downfall in China’s aluminium billet inventories, as the province recorded a fall of 4,000 tonnes to...
Santos has embarked on a Memorandum of Understanding (MOU) with JX Nippon Oil & Gas Exploration Corporation (JX) and ENEOS Corporation (ENEOS) to conduct a joint feasibility study on capturing, transporting, and sequestering emissions from Japan. The Australian parliament has recently passed legislation enabling cross-border transfer of CO2, and Santos has taken swift action to capitalise on this opportunity. It has announced the alliance with two major Japanese energy companies to collaborate on carbon capture and storage (CCS) technology so that the partnership can expand the Moomba CCS project and transform the Cooper Basin into a hub for decarbonisation and low-carbon fuels. Reason for collaboration This cooperation would support the expansion of the Moomba CCS project and enable the...
In Q3 2023, which ended September 30, the United States exported 532,000 tonnes of aluminium scrap compared to 543,000 tonnes in the previous quarter, according to the US Geological Survey data. That recorded a sequential decline of 2.03 per cent, following a quarter-on-quarter rise of 7.1 per cent in Q2 from 507,000 tonnes. In September, the United States aluminium scrap exports stood at 180,000 tonnes, reflecting an increase of only 1,000 tonnes from 179,000 tonnes in August. On a year-on-year basis, the exports edged a hike of 10,000 tonnes or 5.88 per cent from 170,000 tonnes. In nine months, the United States aluminium scrap exports totalled 1.57 million tonnes, up by 3.97 per cent from 1.51 million tonnes during the corresponding period of the last year. India, the highest importer...
Henan Zhongzhou Aluminium, one of the prominent manufacturers of aluminium alloy plates and coils in Series 1xxx, Series 3xxx, and Series 5xxx, was honoured with the pilot enterprise of industrial wastewater recycling 2023 in Henan Province. The China-based company is the only aluminium-related firm on the list. The Henan Provincial Department of Industry and Information Technology released the pilot list for industrial wastewater recycling on December 7. Zhongzhou Aluminium has continued to enhance wastewater recycling in recent years, and the reuse rate of industrial water has grown dramatically. All industrial wastewater may be utilised by increasing the capacity of industrial wastewater treatment. The usage of cascade water replenishment technology has been encouraged to increase...
Aluminium ADC12 alloy ingot automobile spot prices in India rose by INR 2,000 per tonne to INR 183,000 per tonne, tracking higher Tense scrap prices by INR 1,000 per tonne to INR 154,000 per tonne exy Delhi, excluding GST, w-o-w, as per SteelMint's assessment. This is due to the limited availability of recyclable material, resulting in matching minimum spreads. The three-month futures for aluminium currently hover at $2,260 per tonne, reflecting a weekly increase of approximately $100-120 per tonne. However, the difference between Tense and ADC12 is around INR 29,000-30,000 per tonne. The Tense scrap prices in India have witnessed an uptrend in prices by INR 1,000 per tonne and are at INR 154,000 per tonne exy Delhi. Imported Tense scrap prices from the Middle East region, particularly...
The biggest development of the twenty-first century is the international recognition of global warming and its adverse effects on the Earth's climate. Excessive carbon emissions or GHG footprints primarily cause overheating of the atmospheric dome, which may cause the protective ozone layer to erode, increasing the planet's temperature. Rising temperatures are a massive concern for the Earth's troposphere as it might not be able to deflect the heat waves, rather trapping them to turn the world into a blazing ball of fire. Naturally, this will cause the glaciers to melt, resulting in massive floods and augmented sea levels. It won't be long before the story of Noah's Ark gets repeated by a new clan of people after we get washed away by the gushing waters of the oceans and seas. The...
Norsk Hydro ASA, a Norwegian aluminium and renewable energy company, reports estimated impairment losses of NOK 5.9 billion for the fourth quarter of 2023 to be ended on December 31. Challenging alumina market condition coupled with Australian power price insecurity caused this loss to Hydro. “The bauxite and alumina operations are a key enabler for Hydro to pioneer the green aluminium transition by significantly reducing the upstream carbon footprint. In the short and medium term, we see challenging alumina markets and weak cash flow generation in B&A coming from market volatility in times of geopolitical turmoil, impacting the current valuation of the assets,” says President and CEO Hilde Merete Aasheim. She added, “Longer term, we expect a higher share of greener earnings in B&A, as we...
In the ever-evolving landscape of industry and commerce, Premium Aluminium embarked on a visionary journey with the ambitious goal of becoming the premier manufacturer of high-quality aluminium products like aluminium doors, windows, and profiles in the local market. The company's mission was clear - to meet and exceed its clients' expectations, contribute significantly to Pakistan's economic and social development, and establish a lasting legacy built on innovation and excellence. Since its inception, Premium Aluminium has recognised the pivotal role that clients, partners, and employees play in the success of their business. Acknowledging this, they have consistently directed their efforts towards fostering strong relationships with these stakeholders. The company's commitment to...
Alteria Aluminium Systems is dedicated to implementing a comprehensive sustainability strategy that entails collaborating with like-minded partners. As a demonstration of its unwavering commitment to providing an eco-friendly batten and cladding solution, they have entered into a partnership with Capral Aluminium to source its LocAl Green, a low-carbon aluminium variant, for all the company's flagship aluminium extruded products. Alteria had a crucial objective of promoting sustainability when developing its product range. In line with this goal, the company made it a priority to identify options that could reduce carbon emissions in order to source solutions that could effectively contribute to the Net Zero target. It's worth noting that some suppliers might provide Capral LocAl Green as...
The latest data from the International Aluminium Institute indicates a 2.21 per cent rise in the world’s year-to-date primary aluminium production to 64.516 million tonnes at the end of November 2023. During the same period last year, the world’s primary aluminium output was at 63.119 million tonnes. According to AL Circle’s prediction for 2023, the world’s primary aluminium output is estimated to stand at 70.01 million tonnes, meaning the world’s production will need to reach 5.494 million tonnes in December to meet the expected figure. Considering the average monthly production, the global primary aluminium output will most likely match AL Circle’s estimation at the end of 2023 unless any significant decline occurs in December’s output. According to IAI data, primary aluminium...
The London Metal Exchange (LME) reportedly intends to introduce new metal contracts utilising prices from the Shanghai Futures Exchange (SHFE), according to three sources within the industry, as reported by Reuters. This move is anticipated to amplify China's impact on global metals markets. Matthew Chamberlain, the London Metal Exchange Chief Executive (LME), briefly touched upon collaboration with the Shanghai Futures Exchange (SHFE) during the annual LME Week dinner in October 2023. However, no specific details were provided at that time. Cross Listing Two years ago, the concept of China permitting an overseas exchange to adopt domestic prices would have been met with hesitation. However, according to sources, there has been a significant shift in strategic direction at Chinese...
On December 19, the European Union announced that it would extend the suspension of its rebalancing tariffs on US products until March 31, 2025. This decision comes in return as the United States also prolongs the suspension of its tariffs on the EU, considering the historical trade volumes reflected in the Tariff-Rate Quota (TRQ) system established in January 2022. Initially, the rebalancing tariffs were implemented by the European Union during the Trump Presidency in response to the US “Section 232” tariffs on aluminium and steel. In 2018, the United States levied €6.4 billion in tariffs on European aluminium and steel exports. In return, the European Union introduced rebalancing tariffs of €2.8 billion on US exports. In 2022, the EU suspended these tariffs entirely until December 31,...
On December 21, the SMM aluminium price chart showed a linear growth, with the SMM aluminium price discarding RMB 20 per tonne to arrive at a rate of RMB 18,960 per tonne. The average prices have ranged between RMB 18,940 per tonne and RMB 18,980 per tonne. Comparison of price points If we take the whole year into consideration, the lowest SMM price was recorded on January 6 at RMB 17,700 per tonne, from which it has grown by RMB 1,260 per tonne or 7.12 per cent. On the other hand, the highest rate was marked on September 28 at RMB 19,850 per tonne, from which it had slumped by RMB 890 per tonne or 4.48 per cent. This indicates that aluminium prices are slowly stabilising at the end of the year, and it can be seen that the aluminium market in China is not facing a fate similar to that of...
In a groundbreaking move, Mytilineos SA has secured its position as the largest bauxite producer in the European Union with the approval of the acquisition of Imerys Bauxites by the Hellenic Competition Commission. This strategic development marks a significant milestone in the metallurgy sector as Mytilineos expands its operations and strengthens its commitment to sustainability. Largest bauxite producer in EU The merger of Imerys Bauxites' operations with Mytilineos' wholly-owned subsidiary, Delphi Distomon, propels the company to an annual bauxite production exceeding 1.2 million tonnes. This achievement establishes Mytilineos as the largest bauxite producer in Europe and positions it among the global leaders in bauxite production. Comprehensive integration of mining activities The...
