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.
Global aluminium producer seeks $85/t premium from Japanese buyers for Q3 primary metal shipments
According to a recent report, a global aluminium producer has asked for a premium of $85 per tonne from Japanese buyers for primary metal shipments during the September quarter of 2020. This is 3.7 per cent higher than the current quarter premium, reported three sources directly involved in quarterly pricing talks on Monday, June 1. For the April-June quarter, Japanese buyers agreed to pay a premium of $82 per tonne, down 1.2 per cent from the prior quarter and the lowest since the October-December quarter in 2016. A year ago, top aluminium producers had sought a premium of $115-120 per tonne from Japanese buyers for the September quarter, up 10 to 14 per cent from $105 per tonne of premium agreed for the June quarter. The above data represents that the premium offered for the September...
New Day Aluminum Holdings appoints John Habisreitinger as new Chief Operating Officer
New Day Aluminum Holdings LLC has announced that it has appointed John Habisreitinger as Chief Operating Officer, who would be responsible for the global operations of New Day’s business. New Day Aluminum Holdings LLC is the parent company of Noranda Bauxite, Noranda Alumina, and NICHE Industrial Chemicals. Mr Habisreitinger comes with over 30 years of industry experience in the aluminium and alumina sectors. He was earlier associated with New Day Aluminum as Executive Vice President and then with NICHE Industrial Chemicals as President. Prior to that, he was the President of Noranda Alumina LLC. He also held senior-level positions with Kaiser Aluminum, Norandal, and Noranda. Mr Habisreitinger graduated from Southeastern Louisiana University and completed an MBA from the University of New...
China’s car sales in May continue to inch up M-o-M: CAAM
The automobile market in China continued to inch up in May 2020, as found by the China Association of Automobile Manufacturers (CAAM). Sales rose 11.7 per cent year-on-year to come in at 2.14 million tonnes, according to the flash estimate by CAAM. Month-on-month, the sales in May recorded an increase of 3.2 per cent, as the total units sold in April were 2.07 million, registering a year-on-year increase of 4.4 per cent, the first rise in 22 months. Month-on-month, the growth in April was by 39.8 per cent. In March, automobiles sales in China recovered significantly from a month ago and stood at 1.43 million units, rising 361.1%. In the first five months of 2020, China’s car sales are estimated to reach 7.9 million units, down 23.1 per cent from the corresponding period last year. In the...
Alumina spot price grows by RMB16/t after remaining restrained for a day; A00 aluminium ingot price drops further
According to Shanghai Metals Market, the average alumina spot price has recorded a hike of RMB 16 per tonne or 0.72 per cent to stand at RMB 2,236 per tonne, as of Wednesday, June 3. The price in the central has registered the highest growth of RMB 25 per tonne to stand at RMB 2,240 per tonne, while that in the north has grown by RMB 15 per tonne to hover at RMB 2,240 per tonne. In the east and south, the alumina price has, however, recorded no change from RMB 2,215 per tonne and RMB 2,520 per tonne, respectively. The imported alumina price and also the Australian alumina FOB price have remained restrained on June 3 at RMB 2,190 per tonne and US$ 250 per tonne, found SMM. The A00 aluminium ingot price, on the other hand, has continued to drop, according to SMM data. The price today is...
COVID-19 hit: Rusal loses 70-80% of its customers’ usual aluminium demand
Aluminium producer Rusal is seeing a 70-80 per cent cut in demand from customers, after the market slowed down in April due to the COVID-19 pandemic. The news came after Roman Andryushin, Rusal’s head of sales and marketing, told Reuters that its customers are returning with 20-30 per cent of their usual demand. Rusal, the world’s largest aluminium producer outside China, has been dealing with a drop in demand for the metal from some of its major consumers, primarily from car and aviation industries. But the second quarter of 2020 is likely to be the worst of the crisis. Andryushin estimates that the second quarter of 2020 to be even worse than the fourth quarter of 2008 when the purchase sentiment on the London Metal Exchange (LME) was at the lowest due to the global financial crisis....
Vedanta’s operations have had a limited impact by the COVID-19 lockdown, says Crisil
According to Crisil analysis, the COVID-19 induced lockdown has had a little impact on Vedanta’s operations. An increase in exports during the lockdown, supported by the company’s low-cost position in key businesses, has offset the sluggish domestic demand, showed Crisil. However, disruptions in supply chain and decrease in sales volume that Vedanta has faced on account of the prolonged global pandemic shall be monitored, added Crisil. According to the report, Vedanta is expected to adopt cash preservation measures by reducing capital expenditure (CAPEX) and limiting dividend payout in the financial year 2021 to address liquidity concerns. The company has also reportedly availed moratorium on its term debt obligation as per RBI guidelines after approval from respective banks to preserve...
Bearish global aluminium spot price encouraging investors to take part in metal storage trade
According to a recent survey, commodity investors are rushing to make profit from a surplus supply of aluminium. They are buying the metal to store and sell it for future delivery when millions of tonnes of lightweight metal are being produced across the world. As smelters are continuing to produce aluminium, despite the sluggish demand from carmakers and other industrial consumers, their stocks are increasing, resulting in price fall. This is allowing commodity traders, hedge funds, and banks to make so-called financing trades, whereby they buy the metal at low cost, store it in warehouses, and sell it in the futures market. “One of the best risk-free trades in the world at the moment is to get some aluminium and stick it in a warehouse,” said Eoin Dinsmore of CRU, a consultancy. “It’s...
Three-month LME aluminium stepped down from two-month highs; SHFE down to US$1869/t
The US dollar fell against a basket of rivals for a fifth straight trading day on Monday as risk sentiment improved on optimism that the worst of the economic downturn caused by the global spread of the coronavirus may be in the past. Three-month LME aluminium pulled back from two-month highs on Monday, easing 0.58 per cent to US$ 1,538 per tonne. As of Monday, June 1, LME aluminium cash (bid) price and LME official settlement price stood at US$ 1511.50 per tonne after declining by US$ 3.5 per tonne from the previous day. But 3-months bid price and 3-months offer price increased by US$ 3.5 per tonne to hover at US$ 1540 per tonne. Dec 21 bid price and Dec 21 offer price grew as well by US$ 6.5 per tonne to come in at US$ 1654 per tonne. The LME aluminium opening stock stood at 1496050...
COVID-19 Impact: Sri Lanka’s aluminium extrusions market to drop 40% due to lower demand and sales
The aluminium extrusions market in Sri Lanka is anticipated to drop 40 per cent, owing to the hit on the property sector by the COVID-19 pandemic, said Lanka Aluminium Industries Plc in a stock exchange filing. “We expect the market size for aluminium extrusions by approximately 40 percent and remain so until a permanent solution for Coronavirus is found,” said the company. Lanka Aluminium closed its factories due to curfews on March 19, and since then the sales slowed down. The company reported that there were, in fact, no sales in April and May. However, on May 11, production recommenced at some of the factories with restricted staff. Dealers around the company also re-opened but reported lower demand and sales. In the March 2020 quarter, Lanka Aluminium generated revenues of 397...
US aluminium crude metal and alloys exports to Mexico grow above 55% in February
According to the United States Geological Survey data, the US aluminium crude metal and alloys exports to Mexico recorded a month-on-month hike of 55.67 per cent in February 2020 to stand at 9,200 tonnes. In January, the US’ exports to Mexico were 5,910 tonnes after plunging by 3.7 per cent from 6,140 tonnes in December 2019. In November last year, the United States had exported 6,870 tonnes of aluminium crude metals and alloys to Mexico, which represents the fact that the exports in December had also registered a month-on-month fall of 10.63 per cent. The above data also indicates the fact that the United States aluminium crude metal and alloys exports to Mexico grew in February after two consecutive months of downfall. Year-on-Year, the United States exports in February 2020 were down...
China’s aluminium imports may hit a decade high with increasing arbitrage opportunity post COVID-19 recovery
According to Reuters report, traders and analysts estimate a significant rise in China’s aluminium imports to hit the highest level in a decade, as an arbitrage opportunity created by demand recovery after coronavirus outbreak has made the aluminium import cheaper than sourcing the metal from domestic smelters. China, the world’s top aluminium producer, usually has a little need to import primary aluminium. The country’s imports in 2019 totalled just over 75,000 tonnes versus output of 35 million tonnes. But this year in May alone, China’s aluminium imports are set to top 100,000 tonnes, as demand for aluminium in the rest of the world has collapsed, while metal consumption in China has recovered from the COVID-19 pandemic. The draw is that Shanghai aluminium prices above RMB 13,000...
China’s average alumina price extends growth to RMB2220/t; A00 aluminium ingot price up by RMB20/t
The average alumina spot price in China has grown for the second consecutive day by RMB 7 per tonne or 0.32 per cent to stand at RMB 2,220 per tonne, as of June 1, found Shanghai Metals Market. In the east, the alumina price has jumped by RMB 25 per tonne after a week-long restraint, with average prices estimated to hover between RMB 2,180 per tonne and RMB 2,250 per tonne. In the central, the alumina price has increased by RMB 15 per tonne to RMB 2,215 per tonne. The average prices there are likely to range between RMB 2,200 per tonne and RMB 2,230 per tonne. In the north and south, however, the prices have remained restrained at RMB 2,225 per tonne and RMB 2,520 per tonne, respectively. The Australian alumina FOB price has gained US$ 4 per tonne to stand at US$ 250 per tonne on June 1,...
Royal Huisman reveals new lightweight aluminium 46-metre cruiser sloop
Dutch shipyard Royal Huisman has reportedly revealed a new lightweight aluminium 46-metre high-performance cruiser sloop – Nauta Reichel Pugh 151. As per the report, Nauta Design has produced the exterior and interior styling of the yacht, while Reichel/Plugh has designed the yacht’s naval architecture. Rondal did carbon Panamix rig, and Royal Huisman provided its most-qualified engineering and construction skills for the optimal result. Royal Huisman Project 405 is built of lightweight aluminium and carbon composite, and is believed to present formidable competition to existing carbon yachts. Royal Huisman promptly adopted intelligent lock-down measures implemented in the Netherlands since mid-March 2020. These measures allow the shipyard team to continue working in strict observance of...
Japan aluminium stocks climb 4% M-o-M in April 2020
Following a drop of 0.4 per cent at the end of March, Aluminium stocks at three major Japanese ports rose 12,000 tonnes or 4 per cent by April end, trading house Marubeni Corp reported on Friday, May 29. In March 2020, the stocks were 297,100 tonnes, which in the next month increased to 309,000 tonnes. Marubeni collects stock related data from the ports of Yokohama, Nagoya and Osaka. Aluminium stocks (in tonnes) at the three major ports in April were as follows: So, as the above chart indicates, the aluminium stocks at Yokohama port in April 2020 increased by 4,000 tonnes or 2.56 per cent month-on-month to stand at 160,500 tonnes. Year-on-year, the stocks grew by 9,600 tonnes or 6.36 per cent from 150,900 tonnes in April 2019. At Nagoya port, the aluminium stocks in April increased by...
LME aluminium price recorded growth this week to US$1515/t; SHFE increased to US$1864/t
The US dollar started the week on May 25 with a hike against a basket of rivals. On Tuesday, the dollar slipped as risk sentiment returned to the market amid a reopening world economy and subdued demand for the safe-haven currency. On Wednesday and Thursday, it plunged further to a two-month trough against a basket of currencies. On Monday, May 25, the London Metal Exchange was closed for spring bank holiday. On Tuesday, the three-month LME aluminium climbed and found steady support from US$ 1,520 per tonne ending the day 1.2 per cent higher at US$ 1,521.5 per tonne. On Wednesday, it advanced to US$1,534 per tonne and hit a two-month peak of US$1,541 per tonne on Thursday, May 28. This week during May 25-29, both LME aluminium cash (bid) price and LME official settlement price edged...
Primary aluminium inventories in China continue to fall sharply by 86,000 tonnes on May 28
China's social inventories of primary aluminium ingots have expanded their decline today, on May 28, by 7,000 tonnes from the previous week, found Shanghai Metals Market. Last week, on May 21, the inventories plunged by 79,000 tonnes, whereas this week they fell by 86,000 tonnes across eight major Chinese consumption areas, including SHFE warrants, to stand at 893,000 tonnes. This continuous fall in primary aluminium inventories could be attributed to the lower supplies to warehouses in comparison with consumption. The chart below indicates the current status of primary aluminium inventories across China in more details: Wuxi, among all the major Chinese cities, has seen the highest decline of 48,000 tonnes to stand at 354,000 tonnes on May 28, followed by the decline of 21,000 tonnes in...
Chinese aluminium billet inventories extend downfall over the week ending May 28
According to Shanghai Metals Market, the aluminium billet inventories in China have continued to decline this week ending Thursday, May 28, driven by healthy demand and limited arrivals of stocks to warehouses. SMM data shows the aluminium billet inventories have decreased by 15,600 tonnes over the week across five major consumption areas to stand at 77,100 tonnes. Last week, on May 21, the aluminium billet inventories were at 92,800 tonnes after declining by 20,000 tonnes from the week ago. This means the decline this week has slowed down by 4,400 tonnes. The chart below indicates the current status of aluminium billet inventories across China in more details: So, as the above chart shows, Foshan has seen the highest fall of aluminium billet inventories by 9,900 tonnes to stand at...
Chinese aluminium industry’s prosperity index plunged to the lowest in April 2020
Chinese aluminium industry’s prosperity index declined to the lowest in April 2020 since the first report launched in November 2015, according to the latest report released by China Nonferrous Metals Industry Association. Decreasing by 1.2 points, the prosperity index of China’s aluminium industry came in at 17.8 points in April, shows the report. Despite the anticipated growth in China’s primary aluminium demand in the coming months along with the estimated recovery in economic activity, the index is likely to remain low for some time to come. This could be primarily due to the uncertainty of the lasting impact of COVID-19 pandemic on the downstream aluminium demand. The COVID-19 outbreak already affected the fixed asset investment in the aluminium smelting industry, leading to a fall by...
