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.
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...
SA startup Uncanny Wines looks up to aluminium cans as a convenient alternative to bottles
A South African startup Uncanny Wines is reportedly planning to cash in on a growing global taste for canned wines as a lighter and more convenient alternative to bottles. The company says it is targeting the domestic market first before eyeing the export market. Canned wines are already on sale in the United States, parts of Europe and elsewhere, but new in South Africa, which is one of the world’s top 10 wine producers. The global wine industry is estimated to be worth nearly US$400 billion. South Africa’s Wine and Spirit Board will certify the company’s cans of premium red and white wines. According to the report, Uncanny sells its Chenin Blanc wine and Merlot grape varieties in 250ml aluminium can at approximately R40 each, while Pinotage Rosé in cans is expected to be launched soon....
Rio Tinto posts strong financial results for 2019; Revenues stand 7% above 2018
Rio Tinto has announced its full-year financial results of 2019, where it reveals strong safety performance with no fatalities and a slightly improved all injury frequency rates, coming from a strong base. The company’s net cash generated from operating activities stood at US$ 14.91 billion, up 26 per cent from US$ 11.82 billion in 2018. Free cash flow, as a result, rose by 31 per cent from US$ 6.97 billion to US$ 9.15 billion. Both are presented after $0.9 billion tax paid in 2019 relating to the 2018 coking coal disposals. Rio’s 2019 capital expenditure remained consistent at US$ 5.48 billion, compared to US$ 5.43 billion in the previous year. Underlying EBITDA and underlying earnings came in at US$ 21.19 billion and US$ 10.37 billion, respectively, recording a growth of 17 per cent and...
Average alumina spot price expands by RMB3/t; A00 aluminium ingot price grows after its restraint last day
The average alumina spot price has extended growth by RMB 3 per tonne to RMB 2,525 per tonne, according to Shanghai Metals Market. Limited supply of the ore in the market due to lower production at refineries is primarily responsible for the continued growth in the alumina spot price. In the east, the price has also come in at RMB 2,525 per tonne, but after the growth of RMB 5 per tonne. In the central, north, and south, the price has recorded no change. The Australian alumina FOB price has remained restrained as well at US$ 299 per tonne, found Shanghai Metals Market. The A00 aluminium ingot price has also recorded a growth today, followed after a restraint at RMB 13,410 per tonne on the previous day. The SMM data shows the aluminium ingot price has expanded by RMB 20 per tonne to RMB...
AlCircle Global Aluminium Industry Outlook 2020
The economic downturn in many regions of the world, particularly in China, combined with trade issues raised by the US, resulted in significant slow-down in aluminium demand in 2019. Contrary to our expectations at the beginning of the year, the demand growth was barely 0.5% in 2019, owing to weak demand from the automobile, building & construction sectors around the globe. The total aluminium usage across the world, comprising primary and recycled metal, was near stagnant at 88.1 million tonnes throughout the year. Towards the year-end, however, the Chinese and the US Governments were moving towards a preliminary agreement. But lack of clarity on resolving the trade issues will leave the aluminium industry in some uncertainty, for at least, during the first half of 2020. While the...
Launched! “Aluminium LeaderSpeak 2020”
AlCircle takes pleasure in announcing that it has launched the second edition of its flagship e-magazine “Aluminium LeaderSpeak 2020” . It is an exclusive e-magazine, whereby top industry leaders from the complete aluminium value chain have shared their views on how the year may transpire for them as an organisation as well as for the industry. They have also shared their business strategies and outlook for the Aluminium Industry to wind up in 2020. The year 2019 was an aftermath of trade wars, restrictive tariffs, sanctions, capacity cuts, and price volatility that impacted the entire aluminium value chain. Incessant drops in aluminium prices and input costs amidst low demand for the metal, both globally and China, were the recurrent scenario throughout the year. <iframe width="500"...
China’s bauxite imports for the first time crossed 100 million tonnes in 2019
According to China customs data, the country in the entire year of 2019 imported 100.66 million tonnes of bauxite, compared to 82.57 million tonnes in 2018. This means the year saw an increase of 21.91 per cent in the import volume, exceeding the 100 million tonnes level for the first time. The Republic of Guinea, Australia, and Indonesia remained the top three bauxite exporters to China, accounting for over 94 per cent of China’s bauxite imports in total. From Guinea, China imported 44.45 million tonnes, up 16.49 per cent year-on-year. Imports from Australia expanded 21.08 per cent to 36.04 million tonnes, as demand from refineries in coastal regions in Shandong and Inner Mongolia held stable and that from northwest China such as Chongqing grew. In the future also, the demand for...
Primary aluminium inventories extend growth over the weekend, but slower than the previous week
On Monday, February 24, the social inventories of primary aluminium extended its growth over the weekend, as demand recovered slowly than expected due to Coronavirus, learned Shanghai Metals Market. The data shows the inventories across eight major Chinese consumption areas, including SHFE warrants, increased 84,000 tonnes from Thursday, February 20, to stand at 1.314 million tonnes, as of Monday. On February 20, the inventories stood at 1.23 million tonnes after building up by 137,000 tonnes over the week. The below chart shows the current status of primary aluminium inventories across China in more details: In Wuxi, Shanghai, and Nanhai, the primary aluminium stocks on Monday increased by 35,000 tonnes, 7,000 tonnes, and 42,000 tonnes to stand at 482,000 tonnes, 118,000 tonnes, and...
