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.
Chinese aluminium billet inventories record a rise, but slower from last week
According to Shanghai Metals Market, aluminium billet inventories in China have extended their growth this week, although slower from a week ago. Increased shipments from warehouses have been the main reason behind another week of a rise in billet inventories. SMM data shows the stocks of 6063 aluminium billet have grown by 6,400 tonnes over the week across five major consumption areas in China, in contrast to a growth of week-on-week 19,300 tonnes last Thursday, February 27. The inventories, as of March 5, stand at 218,900 tonnes. <iframe width="500" height="300" src="https://www.youtube.com/embed/1pdOZcEbQuc" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe> The chart below shows the current status of aluminium...
Chinese A00 aluminium ingot price grows by RMB50/t, and so the price of aluminium alloys (A356)
According to Shanghai Metals Market, the A00 aluminium ingot price has recorded a hike of RMB 50 per tonne on Thursday, March 5, followed a significant decline of RMB 130 per tonne to RMB 13,010 per tonne. The ingot price today stands at RMB 13,060 per tonne, down by RMB 330 per tonne week-on-week. This indicates the Chinese primary aluminium prices are currently recording rapid downfall due to the continued weak demand among downstream consumers and surge in inventories. The average prices, as of today, are expected to range between RMB 13,040 per tonne and RMB 13,080 per tonne, with spot contract to be traded at a discount price of RMB 70 per tonne to RMB 30 per tonne. The price in Gongyi has grown the highest by about RMB 85 per tonne to RMB 13,000 tonnes, followed by Shenyang, where...
LME aluminium price inched up to US$1723.5/t while the US dollar recovered lost ground
The US dollar recovered lost ground on Wednesday, March 4, after a day of an emergency interest rate cut by the Federal Reserve knocked the greenback to an eight-week low. The dollar index, which tracks the greenback against a basket of other currencies, bounced back 0.43% and hit an intraday high of 97.6. Three-month LME aluminium slipped to as low as US$ 1,717 per tonne overnight before easing some losses and ending down 0.26 per cent on the day. Limited improvement in fundamentals kept aluminium prices under pressure. LME aluminium is expected to be traded between US$1,705 per tonne and US$ 1,750 per tonne. LME aluminium cash (bid) price, as of Wednesday, March 4, continued to extend its growth significantly by US$ 17 per tonne to stand at US$ 1722.5 per tonne, while LME official...
US alumina exports to Mexico, Canada saw a Q-o-Q fall of 18% and 21% in Q3 2019
According to the United States Geological Survey, the country in the third quarter of 2019 ending September 30 had exported 10,000 tonnes of alumina to Mexico, whereas in the second quarter had supplied 12,200 tonnes. The USGS data found that this downfall of about 18 per cent in Q3 was a continued affair, as the United States’ alumina exports in Q2 2019 was also down by about 32 per cent from the previous quarter’s 14,700 tonnes. Year-on-year, the United States alumina exports to Mexico in Q3 2019 had recorded a decline of 29 per cent from 14,000 tonnes. Mexico was the leading destination of the United States alumina exports in the third quarter of 2019, followed by Canada. The US in Q3 had exported 7,350 tonnes of alumina to Canada, down 21 per cent from 9,280 tonnes in Q2. In Q1, the...
CANPACK expanding capacity in Colombia and Russia by more than 1 billion cans annually
According to a recent report, CANPACK is expanding its capacity by more than 1 billion cans annually in Colombia and Russia, as the aluminium cans market in those two countries shows a positive sign of growth. Companies in both Colombia and Russia seek additional capacity for their products, driven by the renewed focus on environmental sustainability and growth in sales. Roberto Villaquirán, CEO of CANPACK Group commented: “We are excited to increase capacity in these markets and continue to offer clients a wide range of aluminium packaging innovations. With a renewed focus on environmental sustainability and continued growth from sectors beyond beer, soft drinks and energy drinks like wine, coffee, teas and water, more brands are turning to CANPACK to help them bring products to market.”...
Ducab sets up a new dedicated unit to supply aluminium, copper solutions to its global customer base
Ducab, aluminium and copper cables manufacturer owned by Abu Dhabi’s General Holding Corporation and Investment Corporation Dubai, has reportedly launched a new subsidiary unit Ducab Metals Business (DMB), aiming at supplying locally-manufactured aluminium and copper solutions to a global customer base. As per the report, Ducab has already consolidated its metal operations into its newly launched unit. The Ducab subsidiary exports 75 per cent of its production to more than 35 countries in the wider MEA region, Asia, Europe, and America. In 2019, before establishing the dedicated unit, Ducab’s copper and aluminium business had generated revenue above $544.5 million. Ducab Metals Business will primarily cater to companies in the electrical manufacturing industry. It will have the capacity...
Three-month LME aluminium extended growth by 0.67% on the lowest dollar index since early this year
The US dollar fell across the board after the US Federal Reserve cut interest rates on Tuesday, March 3, in an emergency move designed to shield the economy from the impact of the coronavirus.The dollar index, which tracks the greenback against a basket of other currencies, slipped to the lowest level since January 8 at 96.92. In a statement, the US central bank said it was cutting rates by a half percentage point to a target range of 1.00% to 1.25%. Three-month LME aluminium rose to an intraday high of US$ 1,734 per tonne and finished 0.67 per cent higher on the day at US$ 1,728 per tonne, as the surprise interest rate cut from Fed lifted market sentiment. Trading range is expected at US$ 1,705 per tonne to US$ 1,750 per tonne. LME aluminium cash (bid) price, on Tuesday, March 3,...
Novelis establishes new recycling system with one of its automotive customers in Germany
Novelis Incorporation, the world-leading aluminium rolling and recycling company, announced on Monday, March 2, that it established a recycling system with one of its automotive customers in Lower Bavaria, Germany. Novelis secures automotive aluminium scrap from BMW Group’s Dingolfing production plant to recycle at its facilities. By the efficient alloy separation process, Novelis transform production scrap into the same high-quality products without any loss of quality. During the recycling process, the aluminium scrap is remelted, alloyed, and then pressed into ingots. The ingots are then further processed into aluminium sheet at Novelis’ production plants before being sent to customers for production. Novelis also operates closed-loop systems with Ford Motor Company, Jaguar Land Rover,...
Coronavirus Outbreak affects China’s aluminium processing PMI to record low to 34.7 in February
Amidst the outbreak of epidemic Coronavirus, China’s aluminium processing industry recorded a sharp decline in February. The outbreak of the virus kept plants shut until the second half of the month and reduced new orders. The latest Shanghai Metals Market survey showed the composite purchasing manager’s index (PMI) across manufacturers of aluminium sheet/plate and strip, foil, wire and cable, construction and industrial extrusion, primary and secondary alloy in China dropped to 34.7 in February, marking the lowest since SMM began to conduct monthly survey in May 2018. Sub-index of production plunged from 20.6 in January to 19.7 in February and reading of new orders from 36.1 to 25. Labour conditions remained tight as well, due to travel restrictions; sub-reading for employment declined...
A00 aluminium ingot price records a growth of RMB90/t after three consecutive declines on continued inventory rise
After the three consecutive declines to RMB 13,050 per tonne, as of March 2, the A00 aluminium ingot price has recorded a rise of RMB 90 per tonne on 3 rd of March to come in at RMB 13,140 per tonne, found Shanghai Metals Market. The average prices are expected to range between RMB 13,120 per tonne and RMB 13,160 per tonne, with spot contract to be traded at a discount price of RMB 110 per tonne to RMB 70 per tonne. Wuxi and Hangzhou have seen the highest rise of RMB 120 per tonne today to RMB 13,150 per tonne and RMB 13,160 per tonne, respectively. In Shenyang, the price has increased by RMB 110 per tonne to RMB 13,165 per tonne, while that in Chongqing and Gongyi by RMB 100 per tonne to stand respectively at RMB 13,160 per tonne and RMB 13,060 per tonne. In Foshan, Linyi, and Tianjin,...
Alumina spot price in China recorded growth of RMB49/t this week; A00 aluminium ingot price declined by RMB240/t
As the week comes to an end, let’s look back at the status of Chinese aluminium and input costs recorded throughout the week. The average alumina spot price during February 24-28 recorded interrupted growth of RMB 49 per tonne ranging between RMB 2,516 per tonne and RMB 2,565 per tonne, showed Shanghai Metals Market. In the east, the price rallied by RMB 50 per tonne from RMB 2,520 per tonne to RMB 2,570 per tonne over the week, while that in the central and north, the price grew by RMB 40 per tonne and RMB 50 per tonne, from RMB 2,525 per tonne to RMB 2,565 per tonne and RMB 2, 530 per tonne to RMB 2,580 per tonne, respectively. Limited availability of alumina due to production cut at several refineries in China amidst deadly Coronavirus whilst stable production of primary aluminium...
Rusal’s primary aluminium production in Q4 2019 grew around 1%, while in the full year remained flat
United Company Rusal, the world’s second-largest aluminium company by primary production, posted that its primary aluminium output in the whole year of 2019 remained flat at 3.757 million tonnes, in contrast to 3.756 million tonnes in 2018. In the fourth quarter of the year, the growth in primary aluminium output was marginal. From 942,000 tonnes in Q3, the production grew to 949,000 tonnes in Q4, up by about 1 per cent. Production of Rusal’s aluminium foil and packaging products remained flat in Q4 2019 at 25,000 tonnes, but in the whole year increased by 10.2 per cent from 89,000 tonnes in 2018 to 98,000 tonnes. Aluminium sales in Q4 totalled at 1.107 million tonnes, up 1.5 per cent from 1.091 million tonnes in Q3. During that period, sales of value-added products (VAP) increased to...
Rusal announces its Q4 and full-year results of 2019: Both bauxite and alumina production record growth
United Company Rusal has announced its fourth-quarter and full-year results of 2019 ending December 31, revealing that its bauxite production in the fourth quarter stood at 4.026 million tonnes, up 2 per cent from 3.948 million tonnes in the third quarter. In the full year, the company’s bauxite output came in at 16.047 million tonnes, 15.9 per cent higher than 13.847 million tonnes in the previous year. Production of alumina by Rusal grew as well, both in the fourth quarter as well as the full year. Rusal in Q4 2019 produced 2.050 million tonnes of alumina, up 4.7 per cent from 1.957 million tonnes in Q3. In the whole year, their total alumina production came in at 7.858 million tonnes, 1.1 per cent higher than 7.774 million tonnes in 2018. Rusal’s third-party bauxite sales in Q4 were...
Three-month LME aluminium at its three-year low; SHFE extended decline to US$1,911/t
The US dollar fell on Thursday as investors bet the Federal Reserve would cut interest rates to offset the impact of the spreading coronavirus amid the rapid rise in the number of COVID-19 cases. The dollar index, which tracks the greenback against a basket of other currencies, slipped to 98.36, the lowest level since February 6, and ended down 0.65 per cent at 98.47. Three-month LME aluminium slipped to the lowest level in three years at US$ 1,682.5 per tonne before it closed 0.68 per cent lower on the day at US$ 1,690.5 per tonne. While LME aluminium inventories extended slide and the US dollar softened, prices of the base metals will remain under pressure before the epidemic is contained. Today, LME aluminium is expected to trade at US$ 1,670 per tonne to US$ 1,710 per tonne. As of...
Chinese aluminium firm Zhongwang announces to sell its smelter for $656 million
One of the world’s biggest aluminium extrusions manufacturer, China Zhongwang Holdings, on Wednesday, February 26, announced that it would sell its loss-making smelter for $655.94 million. According to the report, Zhongwang has agreed to sell its 100 per cent stake in Zhongwang Aluminium Material, the unit that holds 800,000 tonnes per annum of primary aluminium smelting capacity in China’s North-eastern Liaoning province. Yidian Holding Group will purchase the smelter, which will make its capacity double than its existing 600,000 tonnes per annum. "Due to the high production costs including costs of electricity, the electrolytic aluminium business has been loss-making in recent years," Zhongwang said in a statement. Zhongwang noted that in 2018 and 2019, the unit recorded net losses of...
Chinese primary aluminium inventories trending higher W-o-W amidst weaker demand in compare to production
According to Shanghai Metals Market, the social inventories of primary aluminium in China have continued to trend higher this week, as demand has recovered slowly than expected. The SMM data shows, the inventories have built up by 155,000 tonnes over the week across eight major consumption areas, including SHFE warrants, to come in at 1.385 million tonnes, as of Thursday, February 27. On last Thursday, February 20, the inventories stood at 1.23 million tonnes after increasing by 137,000 tonnes from the previous week. The below chart indicates the current status of primary aluminium inventories across China in more details: In Wuxi, Shanghai, and Nanhai, the inventories have increased by 80,000 tonnes, 10,000 tonnes, and 68,000 tonnes week-on-week to stand at 527,000 tonnes, 121,000...
Coronavirus takes massive toll on China’s aluminium value-chain market: Source
Just when the demand for aluminium was rebounding and manufacturing revival was showing encouraging signs towards the end of 2019, the deadly Coronavirus made its appearance in China at the beginning of 2020 and took a toll on almost all parts of the world. The global aluminium market in 2019 was anyway shaken by the economic downturn, resulting in production cut at refineries and smelters and drops in sales of end-users products. However, some expectations of a demand recovery were resting on China, which now reflects no promising scenario for the near-term, at least. The virus and the accompanying quarantine measures have since chilled economic activity, a short-term demand for the metal is least expected to have a turnaround time. The London Metal Exchange (LME) aluminium price, which...
Average alumina spot price shoots up today by RMB18/t, while A00 aluminium ingot price records another drop
The average alumina spot price continues to expand in China amidst the limited production at refineries and weak supplies in the market. Today, on February 27, the alumina price has grown by RMB 18 per tonne to stand at RMB 2,543 per tonne, according to Shanghai Metals Market. With the continued rise, the alumina price over the month has increased by RMB 89 per cent, in contrast to the escalation of RMB 17 per tonne in the month earlier. In the north, the average alumina spot price has grown by RMB 20 per tonne to RMB 2,560 per tonne, followed by the east and central, where the price has jumped by RMB 15 per tonne to RMB 2,540 per tonne and RMB 2,545 per tonne, respectively. In the south, however, the price has remained restrained at RMB 2,520 per tonne. But while the alumina price in the...
