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.
European Union monitoring aluminium imports following US tariffs
The European Union official journal reported on Thursday that EU has started monitoring imports of aluminium to determine whether the imported aluminium and steel tariffs imposed by the US have triggered a surge in metal shipments into the Europe or not. The European Union collects data on the quantity and value of incoming aluminium products in order to analyse if measures are needed to be taken to limit imports. The surveillance will apply to imports of aluminium exceeding 2.5 tonnes. The European Commission, which overseas trade policy in the 28-nation EU, believes that the 10 per cent tariff levied by the US on aluminium would increase the risk of more aluminium being diverted to Europe at depressed prices. According to the EU official journal data, the aluminium product imports have...
Nalco expects double EBITDA margin in FY19 on growing alumina and aluminium prices
Asia’s largest integrated aluminium complex, National Aluminium Company (Nalco) hopes to have a double EBITDA margin in FY19. According to Tapan Kumar Chand, CMD of Nalco, EBITDA margin is expected to increase from 20 per cent at the end of Q3 FY 19 to 40 per cent by the end of FY19 backed by the soaring demand and prices of both alumina and aluminium. “Prices of alumina and aluminium have been firming up, if this trend is maintained, then we expect our margins to double by the end of FY19,” Chand told on the sidelines of The People Management Conclave, organised by the Bengal Chamber of Commerce and Industry. Aluminium prices, which were always on the uptrend since August 2017 owing to the global deficit in production, are continuing to grow even higher in the recent time on the back of...
China’s aluminium inventory dips further on shrinking future price
After a decline of aluminium inventory on 23 rd of April 2018, from 2.248 million tonnes to 2.231 million tonnes, it witnessed a further plunge to 2.21 million tonnes on Thursday April 26, 2018, down 21,000 tonnes from 2.231 million tonnes on April 23 and RMB 38,000 tonnes from 2.248 million tonnes on April 19, according to Shanghai Metal Market. This decline of the aluminium inventory on Thursday was primarily due to the lowering of future price, as a large number of downstream consumers are now putting less money on the future contract and more on the spot price, therefore, resulting in forbidding stockpile for the time ahead. Transactions across the major Chinese cities also went down or remained unchanged, as SMM observed. More details are as follows: On the other hand, SMM updates...
Iran to launch aluminium smelter Salco early 2019
Iran is rapidly progressing to launch a new aluminium smelter South Aluminium Company (Salco) in early 2019 in the Lamerd special economic zone in the south of the country near the Persian Gulf. The smelter is expected to boost the country’s aluminium production by 70 per cent and make it self-sufficient by taking advantage of rich natural gas reserves. Media Barbadian, deputy minister of industry, mining and trade told the CRU Aluminium conference in London on Tuesday, April 24, 2018, the construction of the smelter is underway and due to produce 300,000 tonnes per year in the first phase. Karbasian, the chairman of IMIRDO, the state-owned Iranian Mines and Mining, Industries, Development and Renovation Organisation, owns 49 per cent share of the smelter, while another 51 per cent is...
India’s safeguard duty on imported solar cells draws criticism from EU and Japan
India’s decision to impose safeguard duty on imported solar cells drew criticism both from the European Union and Japan on Monday, April 23, 2018, at the World Trade Organisation. The European Union representative slammed India for its casual analysis. According to the former, the injury analysis of imported solar cells was inconclusive as injury to other domestic producers was not properly analysed. Japan suggested that there were flaws in the investigation process, which involved reasonable public notice. At the WTO’s safeguards committee meeting, the EU even pointed out that safeguard measures were meant to be imposed under exceptional circumstances, especially if imports from any particular country cause problems. Indian officials, however, have countered the criticisms by saying that...
Aluminium Association seeks quota-free aluminium tariff exemption under section 232
Aluminium Association, the leading voice for aluminium industry representing the US and other foreign-based companies and their suppliers throughout the value chain, right from primary production to value-added products and recycling, has written a letter to US President Donald Trump on April 24, 2018, asking for permanent, quota-free exemptions from imported aluminium tariff under administration’s section 232 for all responsible trading partner countries. In the letter, Aluminium Association president & CEO Heidi Brock says, “As you continue to evaluate and implement the Section 232 remedy, I urge you to grant permanent exemptions – without quotas – for our aluminium trading partners that operate as market economies. I also encourage you to engage China to address structural aluminium...
Alumina prices surge further: Expected to support aluminium prices – SMM learned
Shanghai Metal Market (SMM) believes that the aluminium prices, which fell drastically on London Metal Exchange (LME) on Tuesday, April 24, 2018 following the US eased sanctions on Russia, are going to gain some support from the higher alumina prices. Last week, alumina was traded at US$800 per tonne in Brazil, while in Australia the prices were hovering at US$710 per tonne on Thursday, April 19, 2018, up US$225 per tonne from April 13. 50 per cent production cut at Norsk Hydro’s Alunorte in Brazil since late February and poor supply of Russian alumina due to US sanctions on Rusal and other major producers were the prime reasons for the pick and is estimated to affect around 319,000 tonnes of alumina output each month, according to SMM. The turning point for alumina production is,...
EU to join US-China consultation over aluminium and steel tariffs at WTO
According to the report by WTO on Monday April 23, 2018, The European Union has formally made a request to join discussions over US imported aluminium and steel tariffs, initiated by China at the World Trade Organisation (WTO). China had initiated the dispute earlier this month amid tensions between Beijing and Washington over US imported aluminium and steel tariffs. Moreover, Trump had introduced extra tariffs on US$60 in Chinese exports over allegations of intellectual property theft. The statement published on Monday reads, "The European Union (the EU) hereby notifies the Government of the United States, the Government of China, and the Dispute Settlement Body that, in the light of its substantial trade interest, it desires to be joined in the consultations requested by China in a...
Aluminium price hike may affect Indian automotive industry’s profitability: ICRA estimates
The Indian rating agency ICRA estimates that the sudden surge in aluminium price by 30 per cent over the last two weeks owing to US sanctions against Rusal may impact the Indian automotive industry’s profitability and also the profitability of auto component suppliers as well as OEMs in the near term, leading to a surge in vehicle price, especially of those that are primarily made of aluminium, as vehicle manufacturers would be passing the cost pressure to the customers, as analysed by ICRA. The US sanctions imposed on Rusal is estimated to take away more than 6 per cent of global aluminium supply and 14 per cent outside China, as per the reports. Ashish Modani, Assistant Vice President, Corporate Sector Rating, ICRA said, “Already, automobile industry is grappling with commodity prices...
Average A00 aluminium ingot price declines today, input costs remain unchanged: SMM update
After witnessing a marginal rise from RMB 14870 per tonne to 14940 per tonne on April 23, 2018, the average A00 aluminium ingot price reversed its course to close at RMB 14480 per tonne today April 24, 2018, according to Shanghai Metal Market. The prices are expected to range between RMB 14460 per tonne and RMB 14500 per tonne, with spot discounts to settle at RMB 50 to RMB 90 per tonne. To say the truth, aluminium ingot price has been oscillating at an interval over a period of time following the production cut at aluminium plants across the globe due to unavailability of alumina, owing to 50 per cent production curtail at Norsk Hydro’s alumina refinery. On 20 th of April, 2018, the aluminium ingot price had plunged considerably from RMB 15070 per tonne to RMB 14870 per tonne and just...
Aluminium ingot production in Iran registers 340,000 tonnes: FY2017-18
According to Iran’s annual performance report of aluminium sector FY2017-18, released by Iranian Mines and Mining Industries Development and Renovation Organization (IMIRDO) today April 23, 2018, about 340,000 tonnes of aluminium ingots were produced over the year, with the production capacity of 487,000 tonnes and estimated to rise to 780,000 tonnes by 2020 and 1.2 million tonnes by 2025. However, the country’s aluminium ingot production accounted for 18,300 tonnes in the one-month period. Iran’s three leading companies Iranian Aluminium Company (IRALCO), Al-Mahdi Aluminium Corporation (AAC) and Hormozal produced 337,608 tonnes of aluminium ingots in the 12-month period, down 1 percent less year-on-year. In the meanwhile, the demand for aluminium in Iran stands at about 500,000 tonnes....
Secondary aluminium market suffering tight raw material supply and sluggish demand
According to Shanghai Metal Market report on April 23, 2018, the secondary aluminium industry is being hit hard by tight raw material supply and sluggish demand following the US-China trade war started in March 2018. Aluminium scrap prices have been staying high since then, due to the lack of specialised invoice in the Chinese domestic market and country’s restrictions on imports. Invoice tax point has also increased to 12 per cent due to this, up 2.5 to 3 per cent compared to the same period last year. The maximum impurity content of imported materials which was lowered from 2 per cent to 1 percent on March 1 has driven the price surge of aluminium scrap, in addition. The supply is also tight as secondary aluminium producers in China have stopped sourcing aluminium scrap from the US...
Alumina price is on rising spree, while aluminium inventory edges down: SMM learns
Along with aluminium price surge on London Metal Exchange (LME) due to US sanctions against Rusal, alumina prices are incessantly moving upward due to tight supplies and rising export margins, Shanghai Metal Market (SMM) learned. According to Shanghai Metal Market report, the average alumina price on Monday April 23, 2018 has seen a sharp rise to RMB 3118 per tonne, against the average price of RMB 2916 per tonne on April 20 in China’s four major markets, while Australian alumina prices hovered at US$710 per tonne on Thursday, April 19, US$ 225 per tonne higher than the last Friday. 50 per cent production cut at Norsk Hydro’s Alunorte in late February due to non-compliance with bauxite deposits holds the major responsibility for the price soar. It is also disrupting aluminium production...
US refuses to discuss aluminium and steel tariffs with India under “Safeguards Agreement”
With the US refusing to roll back its imported aluminium and steel tariffs from India, the latter dragged the matter to the World Trade Organisation (WTO) on April 17, 2018, requesting to consult with the United States over the tariffs and compensation for losses. Like China and European Union, India claimed the tariffs the “safeguards measures” under the WTO rules and asked for compensation for the losses, accordingly. But as per the current report on April 19, 2018, the United States has declined India’s request for consultation, stating that its tariffs on Indian aluminium and steel are not any safeguard measures. In its submission to the WTO on Thursday, the US said that the country, however, would have discussed the matter with India, provided the latter did not claim the tariffs the...
Manufacturers in the United States look for US aluminium and steel tariffs exemption
President Donald Trump’s tariffs on imported aluminium and steel are causing disruptions even to the manufacturers in the United States who buy those metals and thus, asking for relief to the US government. The Trump government imposed these tariffs last month with an aim to protect its domestic industry which was likely facing harm because of an increase in metal import. However, on repeated request for permanent exemption, the United States granted temporary exemptions to some of its important allies like European Union, Canada, Mexico, Argentina, Australia, Brazil and South Korea until May 1, 2018. Steel and aluminium consuming companies in the United States are also allowed to seek exemption from the Commerce Department on providing appropriate evidence that they can’t obtain the...
Oldendorff to shut bauxite transshipment operations at Guyana
The United States unleashed sanctions against Russian aluminium giant Rusal on Friday April 6, 2018. Just in two weeks’ time, the sanctions have left around innumerable consequences, starting with Glencore and Rio Tinto’s decision to declare force majeure on Russian contracts followed by German-headquartered bauxite transshipment company Oldendorff Carriers to shut operations at Guyana. The company with 200 Guyanese employees has decided to shut the operations at Guyana as a consequence of US sanctions against Russian aluminium company Rusal, according to a report. According to, Tradewindsnews report, Oldendorff told the publication “it will fully comply with US sanctions and therefore will be winding up its business in Guyana in a timely manner.” Raphael Trotman, minister of natural...
Kazakhstan looks for new markets for its alumina exports
Being concerned about US sanctions against Rusal that it could bring down a shadow over businesses and jobs, Kazakhstan is in search of new markets and opportunities for its alumina exports. Eurasian Resources Group (ERG), partially owned by the Kazakh government, produces 1.5 million tonnes of alumina every year, two-thirds of which used to be sourced by Rusal to make aluminium. Moreover, the company was preparing to boost its smelting capacity in anticipation of the Rusal contract expiring at the end of 2019. However, it has not commented much about the impact of Rusal sanctions on its operation. Timur Toktabayev, deputy minister for investments and development said on Thursday, April 19, 2018 that the cabinet is looking at various options for opening up new markets and avoiding...
Russia joins EU and China to communicate with the WTO over US aluminium and steel tariffs
After China and European Union who have already corresponded with the World Trade Organisation (WTO) over safeguards from the US aluminium and steel tariffs, now Russia joins the squad too. On April 20, 2018, Russia has approached the WTO arguing that 25 per cent tariff on steel and 10 per cent tariff on aluminium as imposed by the US is nothing but the “safeguard measures”, but without abiding by any of the rules set by the WTO. According to the WTO, safeguards are when the import of a product is temporarily restricted with the aim to protect a specific domestic industry from an increase in imports, which otherwise threatens to cause irreversible harm to the industry. The safeguard measures are allowed to be used subject to various conditions. One of them is, the country wishing to put...
