Downstream aluminium is where geopolitics meets the shop floor. Tariffs, shipping disruption, regulation and shifting demand are deciding who rolls the metal, who gets it and what it becomes, whether a beer can, a battery housing or a length of wire. Fifteen recent developments across North America, Europe, Asia, the Middle East and Oceania depict how aluminium flat rolled products (FRPs), packaging and electric vehicle (EV) demand are being rerouted, and where traders, exporters and buyers may need to adjust. Aluminium FRP and wire: tariffs and policy redraw the flows The tariff debate has reached the bar counter. In Virginia, Democrat Tom Perriello is campaigning on aluminium tariffs that he says raise brewers’ packaging costs. Across the border, a Windsor, Ontario brewery reports its...
The global aluminium industry is entering a new phase of competition, with access to raw materials, affordable energy and production capacity increasingly shaping the position of major producers. China is preparing a large overseas smelting expansion, Ghana is attracting investment in its bauxite reserves, and India and Vietnam are advancing new aluminium projects. However, the expansion drive comes against a complicated market backdrop. Alumina prices have fallen sharply, energy and logistics costs remain significant, and trade policies are reshaping the economics of production and exports. Together, these developments point to a market in which securing resources is only part of the challenge; converting them into competitive aluminium will matter just as much. Africa’s bauxite...
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The Malaysia-based aluminium company with a profound global presence, Press Metal is functioning up its production capability to manufacture more value-added aluminium products ensuing the thorough commissioning of its new phase three smelter in Samalaju Industrial Park in Bintulu, the central region of Sarawak. Tan Sri Paul Koon Poh Keong, the Group CEO said, “Press Metal is working to further enhance its value-added capabilities and extrusion product portfolio.” “The move is aimed at increasing the group’s presence in the global consumer product-related sectors.” The world-class aluminium producer, Press Metal holds two extrusion plants in Klang, Selangor and Guangzhou, China with an annual production capacity of 50,000 tonnes and 160,000 tonnes, respectively. The facilities produce an...
Following a decline in price on Friday, the A00 aluminium ingot price has recorded a sharp increase of RMB 420 per tonne to score at RMB 23,860 per tonne, as of Monday, March 7. According to the Shanghai Metal Market, the average prices are expected to hover between RMB 23,840 per tonne and RMB 23,880 per tonne, with spot contract to be traded at a premium price of RMB 110-70 per tonne. For the same day in Gongyi and Wuxi, the price has hiked by RMB 410 per tonne to register at RMB 23,670 per tonne and RMB 23,850 per tonne. In other Chinese provinces like Shenyang and Tianjin, the price has heightened by RMB 420 per tonne to come in at RMB 23,790 per tonne, found the Shanghai Metals Market. In Foshan and Hangzhou as well, there was a gradual uptrend of RMB 420 per tonne and RMB 415 per...
Three-month LME aluminium opened at US$3,765 per tonne last Friday and hit a high of US$3,867 per tonne before closing at US$3,840.50 per tonne, an increase of $74 per tonne or 1.96 per cent. On Friday, March 4, LME aluminium benchmark prices continued to rise exponentially to exceed US$3,800 per tonne, driven by the on-going fear of supply disruption due to sanctions on major producer Russia. While LME aluminium cash bid price surged by US$122 per tonne to stand at US$3,850 per tonne, LME aluminium official settlement price soared by US$122.50 per tonne to come in at US$3,851 per tonne. 3-month bid price and 3-month offer price expanded by US$115.50 per tonne and US$116 per tonne, respectively, to close at US$3,819 per tonne and US$3,820 per tonne. December 23 bid price and December 23...
The holding company of Russian aluminium behemoth United Company RUSAL is envisaging by creating its global business to a different organization, as reported by industry experts to whom the company management and non-Russian investors claimed. However, the discussion inherits that the Ukraine-Russia military standoff has shot down the shade on any expectations of corporate integration among Russia and the world. Assuming, the deal gets approval, it would be far-flung to unravel the 2007 combination that created the present-time Rusal with the aspiration of building a Russian assets giant that might confront any façade of Rio Tinto Group and BHP Group on the global platform. The anticipated deal is designed in a way that would leave it in two companies, which is illustrated by, “A new...
The Ireland government has been petitioned to disallow all Russian ships to enter Irish territorial waters following a Russian cargo ship rejected its strive to collect a bulk load of alumina produced at the Rusal owned Aughinish Alumina refinery near Askeaton on 2 nd February 2022. According to the marine traffic tracker website, a 2018 built general cargo ship, Pola Feodosia, currently sailing under the Russian flag and whose home port is St Petersburg took a one-eighty degree turn in the Shannon Estuary and was navigating for Denmark. The Russian aluminium giant, Rusal operated Aughinish Alumina refinery is the largest alumina producer in Europe and employs more than 450 staff. Dr Cathal Berry, an Independent TD for the constituency of Kildare South, who has spent 23 years in the Irish...
The increased number of sanctions due to the Russia-Ukraine conflict has sent shockwaves across the metal industry, including the alumina industry. As a result of which, Russian aluminium producer Rusal ceased alumina export from its Nikoleav refinery in Ukraine, resulting in increased supply disruptions across the alumina market. Also, Ireland's Foreign Minister, Simon Coveney, is claimed to be eager to engage with the management of the Aughinish Alumina refinery in Askeaton to lessen the impact of sanctions imposed on Russia for its invasion of Ukraine. Apart from this, there was significant slump of alumina output in Europe (including Russia) fell by 3,000 tonnes or 0.34% month-on-month in January 2022, to 885,000 tonnes. On 25th February 2022, the Mumbai, India headquartered Hindalco...
Supply disruptions, high logistical costs driven by Russia-Ukraine conflict and several international sanctions on Russia were some of the concerns in the global primary aluminium market, resulting in rallied metal prices. Starting the week on February 28 at US$3,450 per tonne, LME aluminium benchmark price surged through the week to stand at an all-time high of US$3,728.50 per tonne. 3-month bid price and 3-month offer price closed the week higher at US$3,703.50 per tonne and US$3,704 per tonne, respectively. To know more: https://www.alcircle.com/news/lme-aluminium-hits-all-time-high-at-us3728-50-t-amidst-supply-woes-shfe-price-descends-by-us6-t-76766 Alcoa’s chief financial officer Willian Oplinger also predicted this week that aluminum prices would continue to inflate while alumina...
Hindalco Industries Limited yet again increased its aluminium ingot and aluminium products prices significantly, with effect from Friday, March 4, in line with the LME aluminium price hike to an all-time high on rising fear of supply disruptions. Hindalco’s aluminium ingot price experienced a surge of INR 10,000 per tonne or 3.22 per cent to INR 320,750 per tonne from INR 310,750 per tonne on March 3. Hindalco Industries grew its aluminium wire rod price also by INR 10,000 per tonne to INR 331,850 per tonne, with effect from March 4. On Thursday, March 3, the price stood at INR 321,850 per tonne, seeing a rise of INR 13,750 per tonne from the previous day. The company’s aluminium billets price came in at INR 334,850 per tonne versus INR 324,850 per tonne on March 3. Hindalco links its...
On 3 rd March 2022, the primary stock exchange in the United Kingdom and the largest in Europe, the London Stock Exchange (LSE) announced that it had suspended with immediate effect the trading of global depository receipts (GDRs) of various Russia-based companies including En+ Group. The London Stock Exchange has 24 companies incorporated in Russia trading on its bourse, out of which 17 are suspended. However, GDRs are negotiable certificates provisioned by a bank that represent shares in a foreign company but traded locally. Notwithstanding, the suspension also impacted several other Russian companies such as En+ Group, the majority owner of Rusal, which is incorporated in the United Kingdom. LSE revealed in a statement, "Further to recent sanctions in connection with events in Ukraine,...
In January 2022, alumina production in Europe (incl. Russia) recorded a downfall of 3,000 tonnes or 0.34 per cent month-on-month to stand at 885,000 tonnes, found the International Aluminium Institute. In December 2021, alumina output in Europe amounted to 888,000 tonnes, up by 50,000 tonnes from 838,000 tonnes in November. On a year-on-year calculation as well, alumina production in Europe (incl. Russia) in January 2022 stood lower by 4,000 tonnes or 0.45 per cent from 889,000 tonnes. In the last quarter of 2021, alumina production in Europe (incl. Russia) totalled 2.598 million tonnes, down by 1.85 per cent from 2.647 million tonnes in the previous quarter. World alumina production in January 2022 stood at 11.569 million tonnes, 0.13 per cent lower than 11.584 million tonnes in December...
According to the US Geological Survey (USGS) statistics, 196,000 tonnes of US aluminium crude metals and alloys were imported from Canada on December 2021, showing a month-on-month sharp decline of 39,000 per tonne or 16.59%. In November 2021, US imported 235,000 tonnes of US aluminium crude metals and alloys to Canada, showing a hike of 2,000 tonnes or 0.85% from 233,000 tonnes in October 2021. Imports of US aluminium crude metals and alloys from Canada escalated by 35,000 tonnes or 21.73% year-on-year, from 161,000 tonnes in December 2020. From January to December, the imported aluminium crude metals and alloys settled at 2,530,000 tonnes. For the same period last year, the amount scored at 2,300,000 tonnes. The total amount of US aluminium plates, sheets, bars, crude metals and alloys,...
Aluminium Stewardship Initiative has certified Hindalco’s Mouda aluminium plant near Nagpur, Maharashtra, against the Performance Standard for sustainable and responsible casting and rolling operations and sourcing and stewardship of aluminium. Hindalco’s Mouda aluminium plant manufactures diversified foil products, which account for 30 per cent of pharmaceutical foil in the country. It is the first operation of its kind to achieve ASI Performance Standard Certification in India. Foils produced at the plant are primarily used for sensitive medicines that cannot be packed with plastic film barriers. On receiving the certification, Mr. Arun Kumar B., Senior President & Head – Downstream Business, Hindalco Industries, said: “Hindalco has been ranked the world’s most sustainable aluminium...
On 25 th February 2022, the Sept-Iles, Quebec based aluminium smelter reported being hit by a cyberattack, regardless the production remained uninfluenced. The largest aluminium smelter in the Americas with an annual production capacity of more than 600,000 tonnes of primary aluminium, Aluminerie Alouette stated that it is still engaged to reinstitute all the computer systems that were malware impacted. The company further added by saying, “Operations are under control and aluminium production has continued. Emails and landlines are still not operational at the company.” "Despite the quality of its modern infrastructure, Alouette is not immune from these cyberattacks.” Aluminerie Alouette, the 22 nd largest aluminium smelter in the world and also the producer of 25% of all aluminium in...
LME aluminium opened at US$3,575.5 per tonne on Thursday and closed at US$3,766.5 per tonne, an increase of US$190.5 per tonne or 5.33%. On Thursday, March 3, LME aluminium prices recorded their greatest weekly rise, as supply disruption worries intensified among new sanctions against Russia. Both LME aluminium cash bid price and LME aluminium official settlement price skyrocketed by US$123.5 per tonne or 3.42% to score at US$3,728 per tonne and US$3,728.50 per tonne. 3-month bid price and 3-month offer price settled at US$3,703.50 per tonne and US$3,704 per tonne. December 23 bid price and December 23 offer price also soared up to peg at US$3,323 per tonne and US$3,328 per tonne. LME aluminium opening stock plunged further to register at 801100 tonnes. Live warrants and Cancelled...
According to the Shanghai Metals Market, the average alumina spot price in China has continued to decline by RMB 39 per tonne to stand at RMB 2,981 per tonne on Friday, March 4. This marks the eighth consecutive day of fall since February 22. In Henan, alumina spot price has slipped by RMB 45 per tonne to come in at RMB 3,000 per tonne on March 4, followed by the decrease of RMB 40 per tonne in Guizhou to RMB 2,980 per tonne. In Guangxi and Shanxi, alumina price has shrunk by RMB 35 per tonne to RMB 2,965 per tonne, while the price in Shandong has dropped by RMB 25 per tonne to close at RMB 2,975 per tonne. However, the Australian alumina FOB price has increased by US$8 per tonne, marking the third day of rise in a row, to settle at US$460 per tonne. A00 aluminium ingot price has also...
The Spanish Government supported Productive Industrial Investment Support Fund (FAIIP), promoted by the Ministry of Industry, Trade and Tourism and managed by the public company SEPIDES, has approved financing through loans for the Latem Aluminum project, endowed with €59.4 million. The objective is the start-up of a new circular aluminium industry in Castile and León. To this end, the company has undertaken an investment project that will empower it to furnish itself with two production centres, in Villadangos del Páramo (León) and Villabrázaro (Zamora), for the production of secondary aluminium from aluminium scrap and the production of natural and lacquered aluminium coil, respectively. However, from the production point of view, it will mean more than doubling the company's aluminium...
According to the Shanghai Metals Market, social inventories of primary aluminium have continued to grow week-on-week to total 1.12 million tonnes. This week, as of March 3, the inventories have grown by 21,000 tonnes from 1.1 million tonnes on last Thursday across eight major consumption areas, including SHFE warrants. In the spot market, smelters and traders had a strong willingness to ship goods, but high aluminium prices and the slow recovery of consumption suppressed downstream purchases. But next week, the inventories are expected to grow very slightly, with eyes on arrivals and consumption recovery. The chart below indicates the current status of primary aluminium inventories across China in more details: In Wuxi, primary aluminium inventories have surged by 23,000 tonnes from the...
Some major aluminium extruders have begun production, while others will not be fully operational until late February or early March. Due to the Russia-Ukraine conflict, price of aluminium has been increasing consistently, causing several downstream companies to choose aluminium billets over ingots, resulting in decline of aluminium billet inventories. As updated by the Shanghai Metals Market, China’s aluminium billet inventories declined for the third consecutive week by 19,200 tonnes or 7.35% week-on-week. As a result, the inventories closed at 241,500 tonne, as of Thursday, March 3. Given the high price of aluminium, it's unclear how much and how long the aluminium billet stockpile will decrease. The chart below indicates the current status of aluminium billet inventories across China...
