AlCircle News Edited By "Debanjali Sengupta"
Debanjali Sengupta is a passionate content writer with 10 years of experience in Business writing, Web Content writing, Blogging, Editing and Research. She is responsible for generating and editing content for AlCircle Newsletter and other online and offline content for enhancing the brand value and its visibility among global users.
India: Primary aluminium producers to face compressed operating margin due to soaring production cost
On Monday, October 31, a report from CRISIL showed a high possibility of Indian primary aluminium producers’ lower operating margin by more than 1200 basis points (bps) this financial year to 22-24 per cent, owing to decreased realisations and soaring production costs. Last fiscal year, primary aluminium producers experienced a record operating margin at a decade high of 36 per cent, backed by strong realisations for historically high global aluminium prices amid post-Covid economic recovery. This year, the operating margin is expected to downtrend to match past levels but be higher than the average of 17 per cent over FY2017-21, found CRISIL based on the analysis of three companies that account for the entire domestic capacity of 4.1 million tonnes. However, amid a dip in operating...
South Africa: Industrial Development Corporation expands shareholding in Mozal Aluminium to 32.45%
According to a report on Monday, October 31, South Africa’s Industrial Development Corporation (IDC), a national development finance institution, has expanded its shareholding in Mozambique’s Mozal Aluminium to 32.45 per cent. Earlier, IDC had a 24 per cent share in the hydropowered smelter, located 20 Km west of Maputo. Mozal dates back to 1998, formed by a partnership between IDC, BHP Billiton, now South32, Mitsubishi and the Mozambican government. The operation started in late 2000 and soon after underwent expansion plans to double its capacity. As the demand for aluminium is at an optimum level to achieve a low-carbon future, metal companies are increasingly attracting investors’ interest. Last year, South32 acquired an additional 8.445 per cent share in Mozal, which increased its...
MYTILINEOS S.A. receives ASI Chain of Custody (CoC) Standard V1 (2017) Certification for its upstream activities
MYTILINEOS S.A., a Greece-based industrial conglomerate, has bagged the ASI Chain of Custody (CoC) Standard V1 (2017) Certification for its corporate headquarters and upstream activities, including bauxite mining, alumina refining, and aluminium smelting and casting. The news came after the Aluminium Stewardship Initiative (ASI) announced the successful certification of MYTILINEOS for bauxite mining activities at Distomon site; refining, smelting and casthouse activities at the Aluminium Of Greece Plant; port facilities at the Aluminium Of Greece Plant; and corporate headquarters at Athens. The company’s upstream annual production capacity exceeds 198,000 tonnes of aluminium, 860,000 tonnes of alumina, and 630,000 tonnes of bauxite. In 2021, MYTILINEOS achieved the ASI Performance...
Lower cargo arrivals continue to cause primary aluminium inventories downfall across China
Social inventories of primary aluminium across China’s eight major consumption areas, including SHFE warrants, stood at 613,000 tonnes, after being slipped by 8,000 tonnes or 1.29 per cent over the weekend from 621,000 tonnes, found the Shanghai Metals Market data. On a week-on-week calculation, the inventories fell by 13,000 tonnes from 626,000 tonnes on October 24. The continued decline in inventories could be attributed to the ongoing closure of Gongyi Railway Station as it had been hindering cargo arrivals. The chart below represents the current status of primary aluminium inventories across China in more details: According to SMM data, primary aluminium inventories in Wuxi decreased by 5,000 tonnes over this weekend ended October 31 to stand at 205,000 tonnes, followed by the...
Vedanta reduces its aluminium wire rod & billet prices by INR6250/t with effect from October 29
Vedanta Limited’s aluminium products prices saw a cut on Saturday, October 29, soon after they increased by INR 2,000 per tonne on the previous day. As per the last updated price chart, Vedanta’s aluminium wire rod price is standing at INR 220,500-228,000 per tonne since October 29, down by INR 6,250 per tonne or 2.76 per cent from INR 226,750-234,250 per tonne on October 28. Vedanta’s aluminium billet price came in at INR 222,000 per tonne on October 29 after being slashed by INR 6,250 per tonnes from INR 228,250 per tonne on October 28. The company’s aluminium ingot price is ranging between INR 213,000-243,500 per tonne since October 29, compared to INR 219,250-249,750 per tonne on a day earlier. Vedanta reduced its aluminium prices on October 29 in response to the downfall of the...
Disruptions in power supply won't stop China Hongqiao Group from shifting 2 Mt to Yunnan
On November 1, 2022, China Hongqiao Group said it would move 2 million tonnes of its capacity to the country’s southwest by the end of next year, as was decided earlier, despite the recent electricity supply disruptions there. The news came after Ron Knapp, adviser to the office of the chairman, told Reuters on Monday that Hongqiao Group built 850,000 tonnes of capacity in Yunnan this year, and by the end of 2023, it would build a total 2.03 million tonnes of capacity in Yunnan Hongtai plant. He clarified that relocation would occur despite Yunnan's ongoing power supply disruptions. The world’s top private aluminium producer had previously said it would move more than 60 per cent of its 6.46 million tonnes of capacity to Yunnan province from northern Shandong province by the end-2025 to...
China’s aluminium extrusion exports in nine months of 2022 grow 2.6% YoY due to low SHFE/LME price ratio
According to the Shanghai Metals Market, China’s aluminium extrusion imports from January to September 2022 stood at 26,000 tonnes, reflecting an increase of 12.4 per cent year-on-year. The trend suggests that the total import volume through 2022 will record growth after six consecutive years of year-on-year decline, thanks to increased imports from Taiwan this year. China’s exports of aluminium extrusion from January to September 2022 amounted to 707,000 tonnes, up by 2.57 per cent Y-o-Y. By the end of the year, a slight growth in total export volume of extrusion is expected after the implementation of anti-dumping policies by many countries over the past two years, which resulted in sharp declines in the previous year. Export volume is likely to increase this year as the energy crisis...
Hindalco’s aluminium ingot price sees a slash of 3% on October 29 after a significant hike the previous day
Hindalco Industries Limited axed its aluminium ingot and aluminium products prices, effective from Saturday, October 29, following a hike on a day before. On Friday, October 28, Hindalco increased its aluminium ingot price by INR 11,500 per tonne to sell the item at INR 217,000, while on October 29, the company reduced it by INR 6,500 per tonne or 3 per cent to INR 210,500 per tonne. Hindalco’s aluminium wire rod price also saw a cut of INR 6,500 per tonne on October 29 to come in at INR 221,600 per tonne after it rallied by INR 11,500 per tonne on the previous day to peg at INR 228,100 per tonne. The company’s aluminium billets price is currently summed up at INR 224,600 per tonne, with effect from October 29, versus INR 231,100 per tonne on October 28. Hindalco Industries Limited cut...
World alumina production grows 1.22% Q-o-Q to 35.677 Mt in 3Q2022 despite drops in August & September
In the third quarter of 2022 ended September 30, world alumina production edged an increase of 1.22 per cent Q-o-Q to stand at 35.677 million tonnes, found the International Aluminium Institute. In the second quarter, the output was at 35.246 million tonnes, reflecting a rise of 6.18 per cent from 33.196 million tonnes in Q1 ended March 31. These data showed a consistent hike over each quarter this year though the rate of growth decreased in the third quarter compared to the second. However, in September 2022, world alumina production recorded a decline of 3.39 per cent month-on-month to 11.596 million tonnes. The output in August also stood lower at 12.003 million tonnes versus 12.078 million tonnes in July. But on a year-on-year basis, world alumina output in September grew 3.61 per...
Vedanta’s aluminium wire rod & billet prices accumulate INR9500/t on October 27
Vedanta Limited hiked its aluminium wire rod and billet prices, effective from Thursday, October 27, following a slash of INR 6,000 per tonne on October 22. The company’s aluminium wire rod price witnessed a gain of INR 9,500 per tonne on October 27 to come in at INR 224,750-232,250 per tonne versus INR 215,250- 222,750 per tonne last week. Vedanta’s aluminium billet price has clocked in at INR 226,250 per tonne, up by INR 9,500 per tonne or 4.38 per cent from INR 216,750 per tonne on October 22. Aluminium ingot price has also been raised by INR 9,500 per tonne by Vedanta, with effect from October 27, to sell the item at INR 217,250-247,750 per tonne. Vedanta links its aluminium prices to the three-month futures of aluminium on the London Metal Exchange, which surged by US$110 per tonne...
Africa’s primary aluminium production edges a 3.5% fall M-o-M to 136,000 tonnes in Sept. but Q3 output improves 2.7% QoQ
According to the International Aluminium Institute, Africa’s primary aluminium production stood at 136,000 tonnes in September 2022, registering a downfall of 3.55 per cent or 5,000 tonnes from 141,000 tonnes in August. However, on a year-on-year basis, the output edged 4,000 tonnes or 3.03 per cent higher than 132,000 tonnes. During the third quarter of the year, the consolidated output of primary aluminium in Africa summed at 416,000 tonnes, up by 2.72 per cent from 405,000 tonnes in Q2 2022 and 3.23 per cent more than 403,000 tonnes in Q3 2021. In the entire nine months of 2022, Africa’s primary aluminium production totalled 1.218 million tonnes versus 1.184 million tonnes during the same period last year. That reflected a year-on-year increase of 2.87 per cent. Africa’s daily average...
NALCO slightly reduces its aluminium ingot price by INR1400/t with effect from October 26
National Aluminium Company Limited (NALCO) has slightly cut its aluminium ingot and aluminium products prices compared to the previous slash last week, October 19. This week, Nalco has reduced its aluminium ingot price by only INR 1,400 per tonne or 0.7 per cent to INR 210,450-213,950 per tonne as of October 26. NALCO’s aluminium wire rod price has also seen a cut of INR 1,400 per tonne to stand at INR 213,950- 218,300 per tonne on October 26 versus INR 215,350-219,700 per tonne on October 19. Aluminium billets price is currently ranging between INR 214,900- 217,550 per tonne, with effect from October 26, as against INR 216,300-218,950 per tonne last week. Like other Indian aluminium giants, NALCO links its aluminium prices to the three-month futures of aluminium on the London Metal...
Kaiser Aluminum reports an annual marginal dip in net sales for 3Q2022 but grows in nine-month by 50% to $2.7 billion
Kaiser Aluminum Corporation, an American producer of semi-fabricated speciality aluminium products, published its quarterly and consolidated nine-month results of 2022 last week, wherein it reported net sales for Q3 at $749 million compared to $954 million in Q2 and $751 million in Q3 2021. That reflected a quarterly downfall of 21.5 per cent and annually 0.27 per cent, in line with the decrease in shipments by 15.82 per cent Q-o-Q and 10.48 per cent Y-o-Y to 282 million lbs. Value-added revenue, however, increased over the year by 16 per cent to $356 million, primarily driven by higher pricing to mitigate inflationary costs. Value-added revenue for the company’s aerospace/high strength applications also grew by 5 per cent to $86 million despite a decrease in shipments. That mirrored a...
Primary aluminium inventories in China fall 10,000 tonnes over weekend to total 626,000 tonnes
Social inventories of primary aluminium in China amounted to 626,000 tonnes across eight major consumption areas, including SHFE warrants, on Monday, October 24, according to the Shanghai Metals Market. SMM found the inventories decreased by 10,000 tonnes over the weekend but edged 6,000 tonnes higher than at the end of September. On a week-on-week basis, the inventories on October 24 were 38,000 tonnes lower than 664,000 tonnes. The continued downfall in inventories could be attributed to hindered transportation due to COVID restrictions. The Gongyi Railway Station in Henan province is currently in lockdown, with cargoes being banned from entering or leaving. The chart below indicates the current status of primary aluminium inventories across China in more details: In Gongyi and Nanhai,...
Launched! AlCircle’s new report on “Future of the Global Aluminium Castings Industry - Market analysis and industry forecast to 2027”
As the transportation industry is increasingly shifting its preference to lightweight and lower carbon emissions, the usage of aluminium castings is gaining notable importance for obvious reasons like high strength and infinitely recyclable. One of the distinguishing features of castings from other forms of aluminium is its ability to absorb large volumes of recycled aluminium produced from post-consumer scrap. Castings produced from recycled aluminium are used in mainstream automobile applications such as engines and wheels. Flexibility, fine surface finish, and high quality are some of the other factors that make aluminium castings popular in the automobile sector. It has been found that the average aluminium usage per car has grown significantly over the years and castings are the most...
LME aluminium benchmark price grows slightly by US$4.5/t; SHFE price descends to US$2538/t
Three-month LME aluminium opened at US$2,227.50 per tonne, with the highest and lowest prices at US$2,234.50 per tonne and US$2,170.50 per tonne before closing at US$2,177 per tonne, down US$41.50 per tonne or 1.87 per cent. On Monday, October 24, LME aluminium cash bid price and LME aluminium official settlement price inched up by US$3 per tonne and US$4.50 per tonne, respectively, to initiate the week at US$2,158 per tonne and US$2,160 per tonne. 3-month bid price and 3-month offer price settled at US$2,178 per tonne and US$2,179 per tonne, up by US$3.50 per tonne from the previous day. December 23 bid price and December 23 offer price increased by US$7 per tonne to peg at US$2,262 per tonne and US$2,267 per tonne as of October 24. LME aluminium opening stock slipped 475 tonnes to total...
Hindalco’s aluminium products prices loss INR6000/t on October 22 in line with LME price plunge
Hindalco Industries’ aluminium products prices suffered a loss of INR 6,000 per tonne on October 22, the same amount as they grew by the previous day. Therefore, the company’s aluminium billets price came in at INR 219,600 per tonne on Saturday, October 22, versus INR 225,600 per tonne on Friday, October 21. Hindalco’s aluminium wire rod price stood at INR 216,600 per tonne on October 22 compared to INR 222,600 per tonne on the previous day. Aluminium ingot price was no exception but also saw a cut of INR 6,000 per tonne on Saturday, October 22, to peg at INR 205,500 per tonne. Hindalco Industries Limited reduced its aluminium prices in response to a sharp downfall of US$98.50 per tonne in the three-month futures of aluminium on the London Metal Exchage on Friday. The price thus, slipped...
China’s primary aluminium output in Sept. 2022 grows 9% YoY but falls 2.5% MoM due to fresh power restrictions in Yunnan
According to the National Bureau of Statistics, China’s primary aluminium production rose 9.3 per cent year-on-year in September 2022 to stand at 3.42 million tonnes, as smelters in a few major regions ramped up output after the ease of power restrictions. Last year, China saw a drop in aluminium production as several regions imposed power curbs on energy-intensive industries like aluminium production due to electricity shortages. Even smelting hubs like Yunnan and Inner Mongolia had to order restrictions to meet energy consumption targets. This year, despite a year-on-year increase, September output still dropped from the previous month by 2.5 per cent from 3.51 million tonnes, especially because Yunnan asked its aluminium producers to cut power usage from September 10 for indefinite...
