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.
A00 aluminium ingot price grows on declining inventory due to limited arrivals; alloys price remains unchanged
Primary aluminium inventory across eight major consumption areas in China, including SHFE warrants, shrank 14,000 tonnes further from last Thursday, July 26, to stand at 1.78 million tonnes as of Thursday, August 2, 2018, Shanghai Metals Market research found. Limited arrivals from smelters accounted for the drop, although slower from a week-on-week decline of 28,000 tonnes recorded on July 26. In the meanwhile, the inventories had gained during the week by 1,000 tonnes from Monday, July 30. Below chart shows the inventory status across all the Chinese markets in more details: On the face of declining inventory and tight supply in the market, A00 aluminium ingot price climbed today, August 3, to RMB 14280 per tonne after a drop in past two days in a row, SMM learned. The average prices...
Malaysian Ministry to meet bauxite miners in Pahang over future of bauxite mining
Followed by the announcement to extend bauxite mining moratorium through December in Malaysia, Minister of Water, Land and Natural Resources Dr. A. Xavier Jayakumar said the Pahang State government would be the one to decide on whether to lift the moratorium or not in the future. Speaking to reporters at Parliament lobby today, August 3, Xavier said he would soon hold a meeting with bauxite miners, state assembly representatives, and Pahang Members of Parliament to explain the current bauxite mining status in the state. "We want to know if they are interested in pursuing it or that they want to say that they don't want bauxite mining in Pahang.” Dr. Xavier also added while speaking to the reporters that he would prefer holding two meetings, the first with Pahang MB Datuk Seri Wan Rosdy...
Shanxi sets up fund of RMB 4 billion for development of the car industry
Shanxi province in China is about to set up a fund of RMB 4 billion which will be used for the development of the automobile industry. This action plan has been issued by the municipal government this week, according to Shanghai Metals Market. Each city in the province will receive around RMB 120 million for boosting 100,000 units of vehicles. Taxpayers who are identified as a high-tech enterprise will pay a lower rate of corporate tax, at 15%. Additional 30 per cent of allowance will be paid by the province, on top of the current national subsidy for replacing vehicles designated for use in the public sector with new-energy vehicles. Against every purchase of a locally-manufactured car or heavy truck that runs on clean fuels, buyers will get a subsidy of RMB 10,000, while against the...
Saudi Arabia to yield more revenue from aluminium scrap export this year backed on increasing volume
The Kingdom of Saudi Arabia has been boasting over the years as one of the major exporters in the aluminium scrap industry while generating a significant amount of revenue. Both its export volume and revenue have been witnessing a year-on-year growth, and 2018 is estimated to be no exception, as per the data shown by the international export-import research. The aluminium scrap in Saudi Arabia is gathered from various sources such as used beverage cans, which account for almost 50 per cent for sourcing scrap, old buildings, vehicle engine blocks, utensils, and electric cables. Development on expanding aluminium smelting capacity is also at peak in the Kingdom which is expected to generate a larger amount of scrap and thereby boost the export volume. For instance, Aluminium Bahrain (Alba)...
Weiqiao raises its pre-baked anode purchasing price while ingot price shrinks despite narrow spot discounts
After seven consecutive months of decline, Weiqiao Group has raised its purchasing prices for pre-baked anode by RMB 180 per tonne for August. The price is now standing at RMB 3280 per tonne in cash and RMB 3135 per tonne on acceptance, according to the latest update by Shanghai Metals Market. SMM believes that this upward adjustment indicates the beginning of a new round of restocking for the winter. Also, this negotiation further occurred as many producers were not accepting an earlier downward adjustment of RMB 150 per tonne because of the losses in the market for pre-baked anode. According to another update by SMM, East Hope Group in China has commissioned part of its primary aluminium project in Guyang county, Baotou city in Inner Mongolia on August 1. The project includes capacity...
Rio Tinto’s aluminium business records 15% higher gross sales revenue in H1 2018
Rio Tinto has announced yet another strong set of results in H1 2018 with an underlying EBITDA of US$9.2 billion and operating cash flow of US$5.2 billion for the entire group of companies, followed by declaring its superior returns of US$7.2 billion to shareholders comprising of US$3.2 billion from operations and US$4 billion from asset disposals. The Aluminium group’s underlying EBITDA in H1 2018 stood at US$1, 831 million, up 10 per cent from H1 2017, primarily driven by stronger pricing. Net cash flow from operating activities increased as well by 1 per cent to stand at US$ 1.1 million, while capital expenditure grew by 76 per cent to stand at US$ 8,06,000, as construction at Amrun accelerated in H1 2018. However, the company’s total aluminium production plunged a little in H1 2018 at...
Aluminium export from Russia to see a growth in CY2018 on the ease of US sanctions against Rusal
According to the global export-import data, aluminium export by the Russian Federation is expected to grow in CY2018 totalling 4.6 million tonnes, 15 per cent up from 4 million tonnes in CY2017; while in 2016, the aluminium export recorded at 3.8 million tonnes. This shows the Russia Federation is expected to see year-on-year growth as far as the aluminium export is concerned. Besides global export, Russia’s aluminium export to the United States is also estimated to grow, compared to the last calendar year. The estimation in CY2018 stands at 877669 tonnes, higher from the actual export volume of 697804 tonnes in 2017 and 704961 tonnes in 2016. Along with the increase in export volume, Russia’s export revenue is also expected to grow to US$ 21147 million in CY 2018, from US$ 7436 million...
Honda’s operating profit records at $2.69 billion in Q1 FY2018-19, highest in more than a decade
The promising results and earnings outlook from Japan’s No. 3 automaker Honda Motor stands in stark in contrast to the bearish forecasts from several other automakers hurt by rising raw material costs due to additional US metal tariffs and possible higher duties on imported vehicles. Resisting the impact of US aluminium and steel tariffs, Honda could record a surprising jump in quarterly profits to their highest in more than a decade. The improvement in North American sales could be attributed to this positive result. About 7.7 per cent sales grew in North America and 3 per cent grew across the globe in Q1 FY2018-19 that drove Honda’s operating profit to US$ 2.69 billion, highest since early 2006. Honda Senior Managing Director Kohei Takeuchi said at an earnings briefing on Tuesday, July...
Weaker demand and cash flow weigh on downstream aluminium sector, affecting primary aluminium consumption further
According to the latest update by Shanghai Metals Market, demand in the aluminium plate/sheet and strip industry weakened in China, which as a result boosted the inventories of finished products across all major Chinese consumption areas. Plants grappled with tight cash flows amid growing competition due to increasing recommencement of productions and also because of the narrow export market, as a consequence of the United States higher anti-dumping and anti-subsidy measures on China. The aluminium foil industry also showed a dent in its performance in the month of July, buoyed by a plunge in demand for beer foil, household foil, and air-conditioner foil, observed SMM. New orders for air-conditioner foil fell sharply as most air-conditioner manufacturers began a seasonal break. The low...
Tiwai recruits 90 extra staff for its fourth potline bringing total workers to 900
The Tiwai Point aluminium smelter has recruited 90 extra staff for its fourth potline and is already training them. This brings the total number of workers at the plant to 900, including contractors. Smelter general manager Stewart Hamilton says this recent recruitment drive has been the biggest since the 1990s. The fourth potline at the smelter will begin its operation by the end of the year and gradually increase production with a hike in orders. Out of these 90 new workers, most of them are from Southland. Hamilton reports this was a challenge to bring people from an outside environment to a large industrial high-tech environment, stating further "We have to make sure people are aware of the safety hazards and risks, know how to operate the equipment and be able to do it in a timely...
China’s aluminium foil export to US likely to see a decline in CY2018 after YoY growth in two previous years
According to the global export-import data, China’s aluminium foils export to the United States is estimated to see a decline in calendar year 2018 after successive hikes in past two consecutive years. In 2018, the expected export volume from China to the US stands at 1, 80, 475 tonnes, 9.5 per cent down from 1, 97, 704 tonnes in calendar year 2017. In contrast to this, both the calendar years 2016 and 2017 recorded sweeping growth in aluminium foils export from China to the United States. In 2016, the volume rose by 51 per cent from 1, 12, 699 tonnes in 2015 to stand at 1, 70, 803 tonnes, followed by a further hike by 15 per cent to 1, 97, 704 tonnes in 2017. Along with the volume, the export revenue also recorded a surge. In 2016, China’s aluminium foils export revenue from the US...
Galuminium Group introduces a new aluminium casement door with wind resistance
Galuminium Group, one of the leading companies in the aluminium sector in Guangzhou, China, has recently added a brand new product to its range, aiming to meet the needs of customers living overseas. It is an aluminium casement door this time with special wind resistance capability. Expressing the mighty pride, the head of International Marketing Department of Galuminium Group Kenny Ye said, “A common saying is that no one ever made a difference by being like everyone else. The same is true for a company. It should from time to time make an impact when launching new products. So this time we adopt the new technology to improve product's air-tightness and water-tightness and introduce the new Aluminium Casement Door." This newly-launched aluminium casement door is made of alloy and...
Primary aluminium extends price hike amid narrow spot discounts in east China on active trading
Primary aluminium spot discounts in east China narrowed on Monday, July 30, as local traders showed keen interest to purchase, Shanghai Metals Market learned. Discounts stood at RMB 70 to RMB 60 per tonne after dropping from RMB 90 to RMB 80 per tonne as on Friday, July 27. The SHFE August contract, however, gained in the morning trading session on Monday, July 30. Active liquidity among traders primarily drove the trading activity in east China. Some local traders held back as some had long-term contracts to fulfil. Some sellers also held on to cargoes because of the recent hike in aluminium prices. In Shanghai and Wuxi, most transactions were seen at RMB 14290 per tonne to RMB 14300 per tonne, while in Hanhzhou, transactions were heard at RMB 14300 per tonne to RMB 14320 per tonne....
The White House Economic Council Director shares opinion on US aluminium tariffs on China and EU
The director of the White House National Economic Council on Sunday, July 29, staunchly defended the US President Donald Trump’s use of targeted tariffs against China and appreciated President’s no tariffs decision on the European Union. During an interview on CNN’s State of the Union, Larry Kudlow said, “You know, if they're targeted for good purpose, as per China, I think the answer is absolutely yes.” “That's always been my view. Most free traders agree. China has not played by the rules. And the trading system is broken, largely because of them.” Then commenting on the US no tariffs decision on the EU, he said, “Now, I hope we get to our EU trade deal,” “The president has adopted a view with which I completely agree. He's a free trader. And he wants to have no tariffs.” He further...
Aughinish Alumina could be free from a threat to job loss with US softer approach towards sanctions
The announcement that the US may consider dropping severe sanctions against Rusal could be resulted in easing threat to up to 1,000 jobs at Limerick’s Aughinish Alumina. Aughinish Alumina, owned by Russian giant UC Rusal, had been under threat since April 2018, when the US Treasury Department had announced harsh sanctions against the company, along with a handful of other Russian aluminium companies. In April, the US Treasury had granted time till 23 rd of October to Rusal’s American customers to comply with sanctions, and also said it would consider lifting sanctions if Rusal’s major shareholder Oleg Deripaska ceded control of the company. But now, US Treasury Secretary Steven Mnuchin announced that the department would be opening to removing Rusal from the list of companies which were...
Nissan’s net profit reportedly dipped 14% in Q1 FY2018-19 amid US aluminium and steel tariffs
On Thursday, July 26, Nissan Motor Co. echoed Detroit’s concerns over material costs hike due to higher aluminium and steel tariffs. Increased prices of the metals on the face of heavy tariffs were the biggest drag on Nissan’s profitability in the first quarter of FY2018-19 ended on June 30. More than half of the US$396 million declined year-on-year in operating profit, while the net profit shrank 14 per cent to stand at US$ 1042 million, in contrast to US$ 1214 million in the last financial year. Ford Motor Co. and General Motors Co. also reported on Wednesday, July 25, that increased commodity prices led to a fall in their quarterly results by US$ 300 million, compared to year earlier. Nissan’s dip in profit could also be attributed to investors’ higher price bid for the metals in...
Paya Besar MP reports his concern over bauxite moratorium as government remains silent
The Energy, Technology, Science, Climate Change and Environment Ministry has not made any statement yet on behalf of the government over the issue of bauxite moratorium after it officially ended on June 30, 2018, reported Paya Besar Member of Parliament Mohd Shahar Abdullah. He said he would bring up the issue in Dewan Rakyat on July 31 so that the ministry could explain the government’s stand and end public concern if any over the issue. Government’s silence, according to him, is making things difficult for the owners of land on which bauxite had been mined before the moratorium, started from January 15, 2016. “As it is now, the mines have been abandoned and if they cannot go ahead (with mining bauxite), it should be stated so that they can go ahead and start replanting the area with oil...
Average A00 aluminium ingot price grows amid inventory hike in China
Primary aluminium inventory in China continued to shrink over the weekend ended on July 30, 2018, as consumption was bolstered by exports despite a low season in the domestic market, Shanghai Metals Market research found. The inventory across eight major consumption areas, including SHFE warrants, decreased 15,000 tonnes from last Thursday, July 26, to stand at 1.78 million tonnes, SMM data showed. The slow commissioning of new capacity dragged by rebounding costs could also be attributed to this further decline in inventory. In Wuxi and Jiangsu, the inventory today stood at 761,000 tonnes, while the inventory in Shanghai registered at 415,000 tonnes. In Nanhai and Guangdong, and Gongyi and Henan, the inventory recorded 229,000 tonnes and 162,000 tonnes, respectively. To know more, refer...
