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.
Brazilian primary aluminium industry climbs from 12th to 8th rank, regaining production and investment capacity
Brazil has reclaimed its position as a top ten player in the global aluminium industry, ramping up the production of primary aluminium and raw materials. Once, the country, which used to be the world's sixth largest aluminium producer, lost its momentum for an interim period and ranked 12th in 2022. However, in the subsequent year, Brazil's aluminium industry showed resurgence through advanced strategies and transformative initiatives in operations. Overview and analysis of primary aluminium production From the start of 2023, the Brazilian aluminium industry has been steadfast in raising domestic production with a strong focus on reducing reliance on imported products. The country successfully increased its primary aluminium production by 26 per cent to 1,021.7 thousand tonnes versus...
LME aluminium price extends double-digit fall for the ninth day; SHFE price exceeds a decline of US$100/t M-o-M
The previous trading day, the three-month LME aluminum contract opened at US$2,405.50 per tonne, reached a high of US$2,430 per tonne, a low of US$2,380 per tonne, and eventually closed at US$2,385.50 per tonne, down US$20 per tonne. It is the ninth day and counting, but the LME aluminium benchmark price shows no sign of improvement amid market surplus due to higher production and weaker demand. Over a week, the price experienced a sharp fall of US$93.50 per tonne. On July 18, the LME aluminium cash bid price shrank by US$ 28.50 per tonne, standing at US$2,334 per tonne, and the LME aluminium official settlement price contracted by US$28 per tonne to reach US$2,335 per tonne. The 3-month bid price and 3-month offer price also continued to decline, settling below the US$2,400 per tonne...
India: MRAI demands the elimination of 2.5% import duty on aluminium scrap
The Material Recycling Association of India (MRAI) has reportedly urged the government to waive the 2.5 per cent import duty on aluminium scrap, following the Aluminium Association of India's demand for a rise in the same tariff to 7.5 per cent . Although AAI and MRAI's appeals are contradictory, both have come ahead of the Union Budget 2024. MRAI has made the elimination request, highlighting the critical role of recycled aluminium in reducing carbon emissions and stimulating a circular economy. MRAI President Sanjay Mehta emphasised, "India's aluminium recycling industry plays a pivotal role in harmonising efforts to combat climate change and bolster environmental sustainability." He further asserted that recycling aluminium also reduces the usage of raw materials and protects natural...
May 2024: Higher profitability due to price surge strengthens primary aluminium production in Europe
In May 2024, upstream aluminium production (primary metal and alumina) scaled up across Europe, driven by higher profitability for producers due to increased aluminium prices. Throughout May, the aluminium benchmark price on the London Metal Exchange rallied by 5.19 per cent, reaching US$2,677 per tonne from US$2,545 per tonne on April 30. Overview of primary aluminium production According to the International Aluminium Institute, primary aluminium production in both Western & Central Europe and Russia & Eastern Europe saw a significant month-on-month increase. While the production in Western & Central Europe saw a hike of 4.42 per cent to 236,000 tonnes, the output in Russia & Central Europe experienced an increase of 3.88 per cent to 348,000 tonnes. On an annual basis, Western & Central...
US primary aluminium production trends down 11% through April 2024, opening doors for increased overseas imports
According to the US Geological Survey, domestic primary aluminium production in the United States trended down in April 2024, recording a month-on-month drop of 3.51 per cent and a year-on-year decline of 12.7 per cent. Source: USGS The data from USGS indicates that the Y-o-Y drop in full-month output resulted from a dip in daily average production during April 2024, reaching 1,850 tonnes versus 2,100 tonnes in April 2023. However, on a month-on-month basis, the daily output in April mainly remained unchanged compared to 1,840 tonnes. The United States’ full-month primary aluminium production in April stood at 55,000 tonnes, compared to 57,000 tonnes in March 2024 and 63,000 tonnes in April 2023, reinforcing growing reliance on secondary aluminium sourced from scrap for producing end-user...
Hong Leong Investment Bank projects Press Metal’s Q2 earnings to record a double-digit growth
Hong Leong Investment Bank (HLIB) reportedly expects Press Metal Aluminium Holdings Bhd’s core earnings to increase by up to 20 per cent Q-o-Q and 60 per cent Y-o-Y in the second quarter of CY2024, led by higher prices of the metal. According to Hong Leong’s projection, the company’s Q2 earnings will range between RM480 million and RM500 million, resulting in the first half’s earnings surging by 51 per cent to RM897-RM917 million. This positive forecast is based on robust prices of global aluminium on LME, especially during the end of May, reaching RMB 2,677 per tonne on May 31, said HLIB, maintaining a “buy” call on Press Metal with an unchanged target price of RM6.51. Supported by the strong aluminium prices, HLIB considers Press Metal’s risk and reward profile favourable and is set to...
China's Ecology and Environment Ministry redrafts import policy of secondary aluminium amid growing influx
The Ministry of Ecology and Environment has reportedly issued a letter seeking public opinion on the revised import policies of secondary aluminium alloy and aluminium alloy raw materials and secondary copper and copper alloy raw materials. It is a revised version of the “Announcement No. 43” issued in 2020. The revised version has amended the policies for secondary aluminium alloy imports, taking into account the status and recent developments in the field. Once the revised policies are implemented, high-quality raw materials of secondary aluminium alloys, such as wrought aluminium alloy and secondary pure aluminium, will possibly be allowed for imports. The revised draft includes the categories of secondary aluminium alloy to be imported, inspection standards, and index requirements....
China’s alumina production dips in June by 2.1% M-o-M as an effect of a significant fall in the operating rate at Hebei
In June 2024 (30 days), China's metallurgical-grade alumina output dipped 2.1 per cent M-o-M, standing at 6.842 million tonnes versus 6.989 million tonnes. However, on a year-on-year basis, the production in June 2024 edged an increase of 5.91 per cent from 6.46 million tonnes, according to the Shanghai Metals Market survey. The average daily production in June 2024 was 228,100 tonnes per day, down by 4,900 tonnes from 233,000 tonnes in May 2024 but up by 13,100 tonnes from 215,000 tonnes in June 2023 . Combining China's alumina output in each month of H1 2024, the country's total production of the ore amounted to 40.293 million tonnes, up 3.84 per cent Y-o-Y. At the end of June, China's installed capacity for metallurgical-grade alumina was 100.6 million tonnes, with an operating...
AAI emphasises its demand for 7.5% import duty on aluminium scrap ahead of Union Budget 2024
Ahead of the Union Budget 2024, Indian aluminium producers have sought an increase in the import duty on aluminium scrap to 7.5 per cent from the present 2.5 per cent. In addition, they have also asked to maintain the import duty on primary aluminium at the current rate of 7.5 per cent or a marginal rise to 10 per cent. These urges are to curb the excessive inflow of substandard aluminium products and protect the domestic industry, which provides livelihoods to more than 10 lakh people. This news came on Tuesday, July 16, after the Aluminium Association of India (AAI) asked the government to control aluminium scrap imports by increasing duties to 7.5 per cent, akin to those on primary aluminium. AAI is also advocating for the maintenance of the duty on primary aluminium imports, including...
Rio Tinto announces positive H1 2024 operation results, underlining 3% rise in aluminium production
On July 16, 2024, Rio Tinto announced its second-quarter production results, indicating growth in its aluminium and bauxite operations. According to Rio's quarterly report, aluminium production in Q2 stood at 824,000 tonnes, experiencing a 1 per cent growth Y-o-Y, owing to stable performance at all its smelters during the period. The steady sequential growth in Q2 aluminium production led to a 3 per cent rise in Rio's total aluminium output in six months, reaching 1.65 million tonnes. In Q2, ended June 30, Rio Tinto announced that its New Zealand Aluminium Smelters (NZAS) secured a 20-year power contract for the Tiwai Point Aluminium Smelter to enable it to continue producing high-purity, low-carbon metal, backed by renewable electricity. This arrangement is expected to further boost Rio...
Disrupted shipments from Guinea cause sharp reversal in China's May 2024 bauxite imports
China’s bauxite imports in May 2024, following a peak in April, reversed and stood below 14 million tonnes. According to China customs data, the country imported 13.549 million tonnes, registering a month-on-month decline of 4.84 per cent from 14.2376 million tonnes and year-on-year fall of 4.63 per cent. China’s bauxite imports decreased in May after two consecutive months of increase. China’s total bauxite imports in the first five months of 2024 amounted to 64.1288 million tonnes, slightly up from the corresponding period of the earlier year. Mainstream sources of ores Guinea continued to be the top supplier, albeit with a lower volume of ores than the previous month. According to customs data, Guinea supplied 9.4174 million tonnes of bauxite to China, which edged a fall of 10.27 per...
LME aluminium price plunges for the sixth day in a row, losing $71.5/t W-o-W; SHFE price declines by $21/t
On Monday, July 15, LME aluminum opened at US$2,479.50 per tonne, hit a high of US$2,489.50 per tonne, a low of US$2,458 per tonne, and closed at US$2,460 per tonne, down by 1.18 per cent. LME aluminium cash bid price and LME aluminium official settlement price further decreased, marking the sixth consecutive day of fall. While the former descended by US$17.50 per tonne to settle at US$2,403.50 per tonne, the latter shrank by US$18 per tonne to US$2,404 per tonne. On a week-on-week calculation, the LME aluminium benchmark price shed off a substantial amount of US$71.50 per tonne, and on a month-on-month basis, the price suffered a loss of about US$61.50 per tonne, according to the LME graph. The continuous loss in LME aluminium benchmark price is attributed to the growing rise of...
Indonesia’s Ministry of Energy and Mineral Resources talks about bauxite export relaxation
Indonesia’s Ministry of Energy and Mineral Resources (ESDM) said it would possibly ease some restrictions on bauxite ore exports, according to statements from ministry spokesperson Agus Cahyono Adi. This proposition followed discussions between ESDM Minister Arifin Tasrif and members of Commission VII of the House Representatives (DPR) related to possible relaxations they might bring in. According to Agus, the discussions took place last week, and concrete decisions still need to be taken. He also cited that the government had given three years of export relaxation for bauxite ores before President Widdo banned it, with effect from June 2023, to shore up the domestic processing of its mineral resources. By doing this, Indonesia wanted to replicate its success in nickel processing after...
Demand-production gap prevents China’s A00 aluminium ingot price from rebounding to early-June level
China’s A00 aluminium ingot price has started the week on Monday, July 15, with a slight increase of RMB 40 per tonne, following a week-long decline of RMB 270 per tonne from July 8 to 12. According to the Shanghai Metals Market, the price has pegged at RMB 20,040 per tonne, with average prices to range between RMB 20,020 per tonne and RMB 20,060 per tonne. The spot contract is likely to be traded at a discount price of RMB 10 per tonne and a premium price of RMB 30 per tonne. In addition to week-on-week fall, A00 aluminium ingot price also stands lower by RMB520 per tonne than RMB 20,560 per tonne a month ago. Overall bearish price analysis The bearish price trend of China’s domestic A00 aluminium ingot is attributed to sluggish demand among the downstream sector in contrast to...
Upstream Aluminium Recap: LME price losses $67/t amid lower stocks due to meagre share of Indian origin; US levies 10% duties on Chinese imports via Mexico
This week, the upstream aluminium sector took centre stage, featuring numerous significant developments in price front, production, international trade policy, project clearance, and investment. The continuous price fall on the Shanghai Metals Market and London Metal Exchange throughout the week stemming from sluggish demand created sensation in the industry, in addition to an additional 10 per cent tariff announcement by the US President on Chinese aluminium and steel imports via Mexico that took the metal industry by storm. According to SMM, China’s domestic A00 aluminium ingot price shed off RMB 270 per tonne this week, settling at RMB 20,000 per tonne. Although the price recorded intermittent growth on July 9, marking a week-on-week increase of RMB 90 per tonne, it stood lower at the...
Century’s Jamalco refinery is back to full production after catastrophic cyclone in Jamaica
On Friday, July 12, Century Aluminum announced that its bauxite mining and alumina refining joint venture, Jamalco, resumed full production after recovering from the impact of the recent devastative cyclone Hurricane Beryl in Jamaica. Hurricane Beryl pounded upon Jamaica on July 3, bringing intense winds and heavy rain. Century Aluminum said that its JV witnessed no injuries or significant damages at its production facilities due to the cyclone. It also does not expect to face a material impact on its financial results. Century’s President and CEO Jesse Gary, said: “I want to say thank you to the entire Jamalco team who did a remarkable job preparing for and operating safely through this major storm.” He added, While we are thankful that our employees are safe and that no significant...
Aluminum Association and AEC appreciate Biden’s move to impose a 10% tariff on Chinese aluminium arriving via Mexico
In addition to Century Aluminum, many US-based aluminium associations have also applauded the President’s decision to impose an additional 10 per cent tariff on aluminium imports in coordination with Mexico. This strategic move by US President Joe Biden is to check the means of escaping the tariff levied on aluminium imports from China, Iran, Russia, and Belarus. To avoid paying the US tariff, these countries were transshipping their aluminium products through Mexico. Thus, the US administration has implemented an additional 10 per cent tariff on primary aluminium products smelted or cast in China, Iran, Russia, and Belarus and arriving via Mexico. The Aluminum Association said this move was important to combat the impact of unfairly trade that had been in practice across North America....
LME aluminium price sheds off US$67/t during July 8-11; SHFE price closes the week with a US$38/t fall
On Thursday, July 11, the three-month LME aluminium contract opened at US$2,480 per tonne, with a high of US$2,508.50 per tonne, a low of US$2,474 per tonne, and closed at US$2,474.50 per tonne, down US$3.50 per tonne from the previous closing price. The LME aluminium benchmark price continued declining for the fourth day this week, recording a total fall of US$67 per tonne or 2.68 per cent through the week. On Thursday, July 11, LME aluminium cash bid price decreased by US$3 per tonne to stand at US$2,428 per tonne, while LME aluminium official settlement price slipped by US$3.50 per tonne to reach US$2,428.50 per tonne. 3-month bid price and 3-month offer price parked at US$2,490 per tonne and US$2,490.50 per tonne, registering a slight drop of US$1 per tonne from the previous day....
