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...
Grow with
AL Circle
National Aluminium Company Limited (NALCO) has hiked its aluminium ingot and aluminium products prices for the fourth time in a row, with effect from March 1, 2022, in line with the LME aluminium price surge as an effect of several international sanctions on major producer Rusal. NALCO has increased its aluminium ingot price by INR 8,800 per tonne or 2.93 per cent to INR 309,250-312,750 per tonne. On February 25, the price saw the last rise of INR 20,000 per tonne to INR 300,450- 303,950 per tonne. With effect from March 1, NALCO’s aluminium wire rod price also saw an increase of INR 8,800 per tonne to INR 311750-316,100 per tonne from INR 302,950- 307,300 per tonne on February 25. Aluminium billets price came in at INR 312,700-315,350 per tonne versus INR 303,900- 306,550 per tonne on...
On 2 nd March 2022, the Doha headquartered Qatar Aluminium Manufacturing Company (Qamco) said that it is abided to focus on its five-year strategic plan to compel its joint venture (JV) to brace the market position. However, its funding strategy will not only vitalize shareholder value creation but also enable sustainable pay-outs despite negative externalities. Additionally, the worldwide marketing partnership of Qamco with other JV associates dispensed access to strategically potential markets, which drives it to become more competitive in comparison to other international peers, notwithstanding supply chain confrontation that remained apparent continuously. The board of directors of the Qatari aluminium company emphasized during the general assembly meeting held virtually, where the...
Domestic primary aluminium production in the United States in December 2021 stood at 79,000 tonnes, an increase of 4,000 tonnes or 5.33 per cent month-on-month, showed the US Census Bureau’s recently reported data. In November 2021, the United States’ primary aluminium output was 75,000 tonnes, down by 1,000 tonnes from the previous month. Hence, the total production the last quarter of the year ended December 31 amounted to 230,000 tonnes. On a year-on-year calculation, domestic primary aluminium production in the US in December 2021 stood 2,000 tonnes or 2.6 per cent higher than 77,000 tonnes. The average daily production in December 2021 was 2,560 tonnes in comparison with 2,510 tonnes in November 2021 and 2,480 tonnes in December 2020. In full-year 2021, the United States domestic...
On December 2021, US exported 18,400 tonnes of aluminium plates, sheets and bars to Mexico, found the US Geological Survey (USGS). On a month-on-month scale, the country witnessed plunge of 2,400 per tonne or 11.53%. In November 2021, 20,800 tonnes of US aluminium plates, sheets and bars was exported to Mexico, showing a fall of 500 tonnes or 2.46% from 20,300 tonnes in October 2021. On a year-on-year calculation, US aluminium plates, sheets and bars exported to Mexico further declined by 2,900 tonnes or 13.61% from 21,300 tonnes in December 2020, shows USGS. From January to December, the exported aluminium plates, sheets and bars closed at 264,000 tonnes. For the same period last year, the amount registered at 265,000 tonnes. According to the USGS statistics, the total amount of plates,...
The Russia-Ukraine conflict has stirred the metal industry to the core, causing the aluminium prices to inflate further as more sanctions on Russia were imposed, as of Thursday, March 3. The A00 aluminium ingot price has jumped again by RMB 690 per tonne to stand at RMB 23,540 per tonne, found the Shanghai Metals Market. The average prices are expected to orbit between RMB 23,520 per tonne and RMB 23,560 per tonne, with spot contract to be traded at a premium price of RMB 130-90 per tonne. According to the Shanghai Metals Market, the A00 aluminium ingot price in Shenyang and Tianjin has shown growth by RMB 670 per tonne to come in at RMB 23,460 per tonne, respectively. In Foshan and Chongqing the price has heightened by RMB 680 per tonne to total at RMB 23,520 per tonne and RMB 23,430 per...
The Norwegian aluminium and renewable energy giant, Norsk Hydro has declared that it will not sign any fresh agreements with the Russian organisations. Hydro said, “The decision has been taken due to the Russian invasion of Ukraine, and sanctions imposed on Russia by the EU and the international community.” The Oslo headquartered multination aluminium company by all accounts is re-examining options for existing commitments and is assessing an inherent confine of commercial alliance with Russian businesses. Hilde Merete Aasheim, The CEO and President of Hydro said, “We are deeply shocked and saddened by the devastating situation playing out in Ukraine.” The Norwegian Confederation of Trade Unions (LO) in Hydro and Hydro’s European Works Council (EWC) has initiated a fundraising campaign...
Hindalco Industries Limited’s aluminium products and aluminium ingot prices have witnessed a surge yet again in line with the LME aluminium benchmark price rally as investors’ fear has heightened concerning tight metal shipments and logistic costs due to several sanctions on major producer Russia. With effect from March 3, 2022, Hindalco has hiked its aluminium billets price by INR 13,750 per tonne or 4.42 per cent to INR 324,850 per tonne from INR 311,100 per tonne on March 1. The recent raise has brought the company’s aluminium wire rod price to INR 321,850 per tonne, also up by INR 13,750 per tonne from INR 308,100 per tonne. Hindalco’s aluminium ingot price has come in at INR 310,750 per tonne, with effect from March 3, versus INR 297,000 per tonne on the previous day. Hindalco links...
Three-month LME aluminium opened at US$3,487 per tonne on Wednesday, March 2, and closed at US$3,576 per tonne, an increase of US$90 per tonne or 2.58 per cent. Much to the anticipation of market analysts, including Alcoa’s chief financial officer Willian Oplinger, LME aluminium prices jumped to a fresh record peak on investors’ fear of logistical challenges that may block metal supplies due to tough sanctions on Russia. Importers may soon face higher transports costs and severe delays in shipments. On March 2, both LME aluminium cash (bid) price and LME official settlement price soared by US$109.50 per tonne to stand at US$3,604.50 per tonne and US$3,605 per tonne, respectively. 3-month bid price and 3-month offer price surged by US$106 per tonne to come in at US$3,568 per tonne and...
The chief executive officer of Tomago Aluminium, Matt Howell, has expressed his intent to step down following over his eight years of service from the capacity of a top executive with the effective end of May 2022. Howell, while mentioning his time as CEO, said, “I want to record my sincere gratitude for the privilege and opportunity to lead and be part of such a fabulous organisation. My time at Tomago and the many friendships forged has been without a doubt, the highlight of my working career.” “Knowing when to make the call is tough; history is peppered with leaders that stayed too long, whether in business, sport or politics. I know in my heart that this is the right decision for me and Tomago.” David Fallu, the Chairman at the Board of Directors of Tomago Aluminium, said “On behalf...
In January 2022, alumina production in Africa & Asia (ex-China) stood at 1.149 million tonnes, reflecting a month-on-month downfall of 1.46 per cent, found the International Aluminium Institute. In December 2021, the output was at 1.166 million tonnes in Africa & Asia (ex-China), up by 4.68 per cent from 1.114 million tonnes in November. On a year-on-year calculation, Africa & Asia’s (ex-China) alumina production in January 2022 stood 9.95 per cent higher than 1.045 million tonnes. In the last quarter of 2021, alumina output in Africa & Asia (ex-China) came in at 3.370 million tonnes, up by 0.60 per cent from 3.350 million tonnes in the September quarter. In full-year 2021, Africa & Asia’s (ex-China) alumina production totalled 13.174 million tonnes, 6.28 per cent more than 12.395 million...
Simon Coveney, Minister for Foreign Affairs in Ireland, has reportedly said that he is willing to work with management of the Aughinish Alumina refinery in Askeaton to mitigate the impact of sanctions on Russia for its invasion of Ukraine. Mr Coveney has asked the European Commission to consider a package of supports for EU countries, which are likely to be affected by sanctions and counter sanctions by Russia. He said there was “an overwhelming view now that we shouldn’t be holding back, even though this will have knock-on implications and some unintended consequences”. The Foreign Affairs minister said all this after Tánaiste Leo Varadkar met management at the refinery last week and told them the Government would render its support to help continuing the operations. Meanwhile, Russian...
The Emirates Environmental Group (EEG), a non-governmental organisation devoted to protecting the environment announced that their 26th ‘Can Collection Day,’ campaign participants had successfully collected 6,294kg of aluminium cans for recycling. The slogan for this year’s campaign was ‘Cancel the Linear, Enable the Circular.’ On a year-on-year calculation, a positive jump of 4,794kg can be seen from 1,500kg that was collected on February 25, 2021. As per Mrs Habiba Al Mar'ashi , Chairperson of Emirates Environmental Group (EEG), the company is starting their action programme for New Year with the, ‘Can Collection Day,’ campaign. The main aim of this campaign will be to accumulate 20,000 kg of aluminium cans for recycling by the end of this year. For this, EEG is encouraging people from...
On 2 nd March 2022, the Indian stock market demonstrates the upward movement of the share prices of the Indian metal companies in a weak market, following the Russia Ukraine combat, which generated opportunities for the metal firms to boost their export, as imposed sanctions and intensifying ties with nations would hugely impact Russia’s overall trade. However, on 1 st March 2022, EN+ Group International PJSC stated its UC Rusal Ltd. subsidiary has been forced to temporarily halt alumina production at the Nikolaev alumina refinery due to the war in Ukraine. The Russian aluminium company commented that although UC Rusal's alumina production will be severely curtailed in the short term at this site due to the logistical and transport challenges stemming from the conflict. Although, Rusal...
According to Platts report, Alcoa’s chief financial officer Willian Oplinger shared his forecast that aluminum prices would continue to inflate while alumina supply to become tighter as a result of international sanctions imposed on Russia due to its military invasion of Ukraine. “It’s a very fluid situation … it will really depend on how long this drags out and how long the sanctions are in place,” CFO stated during a presentation at the Deutsche Bank Global ESG Conference on Monday, February 28. Market demand for aluminum is likely to remain unfulfilled in Europe and the US by the Russian aluminum producers, resulting in heightening pressure on the recent high level of premiums in both regions, pointed out Oplinger. Platts found out that spot price of 99.7% P1020 US aluminum was...
On November 2021, 30,600 tonnes of US aluminium scrap was imported from Canada, according to the US Geological Survey (USGS). On a month-on-month scale, there was a sharp decline of 3,200 per tonne or 9.46%. In October 2021, 33,800 tonnes of US aluminium scrap was imported from Canada, displaying a plunge of 2000 tonnes or 5.58% from 35,800 tonnes in September 2021. According to the US Geological Survey (USGS), on a year-on-year forefront, US aluminium scrap imported from Canada plummeted by 4,400 tonnes or 12.57% from 35,000 tonnes in November 2020. From January to November, the imported aluminium scrap from Canada in November pinned at 374,000 tonnes. For the same period last year, the amount scored at 3,22,000 tonnes. Based on the data from the USGS, the total amount of plates, sheets,...
On 1 st March 2022, Switzerland headquartered Anglo-Swiss multinational commodity trading and mining company Glencore stated that it is evaluating all its business activities in Russia comprising equity stakes in aluminium and hydropower group giant En+ Group among other firms in different sectors. The world's largest globally diversified natural resource company, Glencore, which is also listed at London Stock Exchange (LSE) holds a 10.5% stake in En+ Group, the dominion shareholder of the Russian aluminium giant. Glencore also has a 0.57% stake in Rosneft. Glencore further added, “We have no operational footprint in Russia and our trading exposure is not material for Glencore.” However, a set of Western companies has been splitting strap with Russia following its stand-off with Ukraine,...
As the fear of metal supply disruptions has heightened across the world due to sanctions on Russia, A00 aluminium ingot price in China has increased by RMB 300 per tonne to stand at RMB 22,850 per tonne on Wednesday, March 2, found the Shanghai Metals Market. China’s domestic aluminium market has seen the surge today after two consecutive days of fall from RMB 22,820 per tonne to RMB 22,550 per tonne. The average prices are expected to range between RMB 22,830 per tonne and RMB 22,870 per tonne, with spot contract to be traded at a premium price of RMB 90-50 per tonne. A00 aluminium ingot price in Wuxi and Chongqing, has also built up by RMB 300 per tonne to come in at RMB 22,840 per tonne and RMB 22,750 per tonne, respectively, followed by the surge of RMB 295 per tonne in Hangzhou to...
LME aluminium opened at US$3,390 per tonne yesterday and closed at US$3,486 per tonne, an increase of US$91 per tonne or 2.68%. LME aluminium benchmark prices have been on a structural uptrend due to the Russia-Ukraine conflict. On Tuesday, March 1, LME aluminium cash bid price expanded by US$47 per tonne or 1.36% to close at US$3,495 per tonne. For the same day, LME aluminium official settlement price also levelled up by US$45.5 per tonne or 1.31% to score at US$3,495.50 per tonne. 3-month bid and 3-month offer price also grew by US$17 per tonne to settle at US$3,462 per tonne and US$3,464 per tonne. December 23 bid price and December 23 offer price closed at US$3,175 per tonne and US$3,180 per tonne. LME aluminium opening stock recorded at 814275 tonnes. Live warrants and Cancelled...
