Primary aluminium weekly recap: Alcoa promotes Matt Reed to Chief Operations officer; LME to include SHFE prices to its portfolio

Amid continued decreasing inventories, China’s domestic primary aluminium price was found to exceed the RMB 19,000 per tonne level this week after more than a month. Besides this, other prime events occurred this week were the appointment of Matt Reed as Alcoa’s Executive Vice President and Chief Operations Officer, Yunnan Wenshan Aluminium making to the list of 2023 Intelligent Manufacturing Demonstration Factory, and inclusion of aluminium in Australia’s Strategic Materials List.

Before we start detailing these events, let us take a glance at this week’s aluminium price movement.

According to the Shanghai Metals Market, China’s domestic A00 aluminium ingot price grew through the week from December 18 to 22 by RMB 350 per tonne. The price started the week on December 18 at RMB 18,900 per tonne, reflecting an increase of 0.69 per cent over the weekend. The next day, the price move up further to RMB 18,940 per tonne, and continued increasing for the rest of the week until reaching RMB 19,120 per tonne on December 22.

The LME aluminium benchmark price, on the other hand, marked a downfall this week from US$2,213 per tonne on December 18 to US$2,180 per tonne on December 21. On the first two days of the week, the price grew by US$17 per tonne and US$2.5 per tonne, respectively, but fell back-to-back in the two successive days.

This week, Alcoa Corporation, a global leader in the aluminium industry, announced the appointment of Matt Reed as its Executive Vice President and Chief Operations Officer, effective January 1, 2024. As Chief Operations Officer, Reed will lead Alcoa's global operations, overseeing bauxite mines, alumina refineries, and aluminium smelters. His responsibilities will encompass operational excellence, focusing on safety, environmental management, productivity, cost management, and long-term strategic planning.

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The London Metal Exchange announced this week that it intends to introduce new metal contracts utilising prices from the Shanghai Futures Exchange (SHFE), according to three sources within the industry, as reported by Reuters. This move is anticipated to amplify China's impact on global metals markets.

To know more: https://bitly.ws/36Unn

According to a report this week, Yunnan Wenshan Aluminium made to the list of 2023 Intelligent Manufacturing Demonstration Factory for having a Green Aluminium Intelligent Manufacturing Demonstration Factory. It is the only intelligent manufacturing demonstration factory in the electrolytic aluminium industry and serves as an important achievement for Yunnan Aluminium Wenshan in building a "smart factory".

To know more: https://bitly.ws/36UfJ

Australia’s aluminium is included this week in the Strategic Materials List to support the global shift towards a net-zero future. The Australian Aluminium Council (AAC) backed this move. With a press release, ABx Group also announced that its subsidiary ALCORE's main production choice, fluorine, has also been added to the list.

To know more: https://bitly.ws/36UgR

Century Aluminum Company, a leading player in the U.S. primary aluminium industry, expressed its appreciation towards the U.S. Treasury Department for issuing interpretive guidance on Section 45X of the Inflation Reduction Act. This new guidance specifically focuses on the implications of the act for the U.S. primary aluminium industry.

Century Aluminum's CEO, Jesse Gary, expressed the company's gratitude towards the Biden Administration for its unwavering support of the U.S. aluminium industry. Mr Gary's remarks highlighted the positive impact of the administration's policies on the industry and emphasised the importance of continued government collaboration to maintain a robust and competitive domestic aluminium sector.

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This week, International Aluminium Institute’s data found the world primary aluminium production in November 2023 stood at 3.5 million tonnes, marking a downfall of 4.1 per cent month-on-month from 3.65 million tonnes. On a year-on-year calculation, China’s primary aluminium production in Nov’23 registered a rise of 3 per cent from 3.39 million tonnes.

In eleven months of the year, the global primary aluminium production amounted to 64.516 million tonnes – 2.21 per cent more than 63.119 million tonnes a year ago.

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Africa’s primary aluminium production in November 2023 was 132,000 tonnes, experiencing a downfall of 7,000 tonnes or 5.04 per cent month-on-month from 139,000 tonnes. But on a yar-on-year basis, the output grew by 6,000 tonnes or 4.76 per cent from 126,000 tonnes, found the International Aluminium Institute’s data this week.

Africa’s daily average production in November 2023 was 4,400 tonnes, down by 100 tonnes from the previous month and up by 200 tonnes from 4,200 tonnes a year earlier.

To know more: https://bitly.ws/36UkS

According to the Shanghai Metals Market data, aluminium billet inventories in China recorded a plunge of 17,300 tonnes or 21.05 per cent this week across the five major Chinese consumption areas.  Thus, the inventories have come in at 64,900 tonnes on December 21 compared to 82,200 tonnes on December 14.

The W-o-W decline on December 21 was primarily contributed by Foshan, where aluminium billet inventories shrank by 9,800 tonnes from a week ago to settle at 30,100 tonnes as of December 21.

To know more: https://bitly.ws/36Umu