Primary aluminium weekly recap: China’s A00 aluminium ingot price uptrends on improved buying sentiment, German companies support sanctions against Russia

This week continued to witness a downtrend in the global aluminium benchmark price, so much so that it stood month-on-month lower for a day. The LME aluminium price started the week at US$3,399 per tonne, reflecting a sharp downfall of US$73 per tonne from US$3,472 per tonne on March 11. The price further nosedived on March 15 by US$181.50 per tonne to come in at US$3,217.50 per tonne, month-on-month down by US$5.5 per tonne. The LME prices recorded incessant decline on the anticipation of stock release in the market. On March 13, Hydro confirmed 4000 tonnes of Russian aluminium to arrive at its Karmøy facility. On Wednesday, March 16, LME aluminium price rose for an intermittent period to US$3,306 per tonne but fell the next day to US$3,288 per tonne.

To know more: https://www.alcircle.com/news/lme-aluminium-price-drops-by-us18-t-to-us3-288-t-shfe-price-continues-to-ascend-by-us68-t-77860

China’s domestic price of A00 aluminium ingot, on the other hand, registered uptrend this week, driven by the recovery in buying sentiment among the downstream market. According to the Shanghai Metals Market, China’s primary aluminium ingot price on March 14 increased by RMB 20 per tonne to stand at RMB 21,900 per tonne, followed by an intermittent decline on the next day to RMB 21,730 per tonne. On Wednesday, March 16, A00 aluminium ingot price increased by RMB 40 per tonne to stand at RMB 21,770 per tonne, and rose further on March 17 significantly by RMB 310 per tonne to come in at RMB 22,080. On Friday, the price closed the week even higher at RMB 22,520 per tonne.

To know more: https://www.alcircle.com/press-release/a00-aluminium-ingot-price-in-china-further-surges-by-rmb440-t-on-improved-buying-sentiment-77861

In response to the LME aluminium price fall, National Aluminium Company Limited reduced its aluminium ingot and aluminium products prices by INR 24,800 per tonne, with effect from March 16. That brought its aluminium ingot price to INR 281,050-284,550 per tonne, down by INR 24,800 per tonne from INR 305,850-309,350 per tonne on March 11.

To know more: https://www.alcircle.com/news/nalco-aluminium-ingot-price-experiences-further-cut-of-inr24800-t-w-e-f-march-16-77850

Talking of the improved buying sentiment in China market, social inventories of primary aluminium in the country decreased on Thursday, March 17, after six consecutive weeks of rising. According to the Shanghai Metals Market, inventories dwindled by 53,000 tonnes across eight major Chinese consumption areas, including SHFE warrants, to come in at 1.09 million tonnes versus 1.14 million tonnes last Thursday, March 10.

In the spot market, the goods holders actively made shipments amid falling futures prices, along which the downstream demand picked up, reviving the tractions of aluminium ingot.

To know more: https://www.alcircle.com/news/chinas-primary-aluminium-social-inventories-decline-by-53-000-tonnes-on-improved-buying-sentiment-77859

According to the data released by the National Bureau of Statistics this week, China’s aluminium output in the first two months of 2022 totalled 6.33 million tonnes, which reflected a year-on-year downfall of 1.4 per cent. During the corresponding period last year, China’s aluminium production had amounted to 6.45 million tonnes. NBS data also showed that the daily average output in January and February combined was 107,288 tonnes, the highest since June 2021, according to Reuters' calculations.

To know more: https://www.alcircle.com/news/chinas-jan-feb-daily-aluminium-output-records-highest-since-mid-2021-at-107-288-tonnes-shows-nbs-77836

Germany’s BGA trade association’s survey showed that German businesses abetted Berlin’s economic sanctions against Russia for its invasion of Ukraine, knowing the ensuing economic slowdown that it could usher or threaten the supply chain of aluminium. While corresponding with the press about the survey, BGA President Dirk Jandura pointed out that the constriction in the aluminium supply chain could turn the industry economic growth, as was predicted earlier, upside down. BGA added about two-thirds of its members expect an economic slowdown due to the sanctions. Yet, German companies joined each other in support of imposing sanctions on Russia.

To know more: https://www.alcircle.com/news/german-companies-in-support-of-sanctions-against-russia-knowing-possible-impact-on-aluminium-supplies-77846

Four major players in the Middle East from the aluminium and energy sector announced a joint initiative that would unlock significant development of solar power generation capacity in Abu Dhabi, progress power asset and generation optimisation, and decarbonise EGA’s aluminium production in the UAE. The companies that conceived the initiative are - Emirates Global Aluminium (EGA), Abu Dhabi National Energy Company PJSC (TAQA), Dubal Holding, and Emirates Water and Electricity Company (EWEC).

The initiative is expected to advance TAQA and Dubal Holding’s growth strategies, enable EGA to become a leader in the global aluminium industry’s net zero drive by 2050, and aid EWEC reduce carbon intensity of the energy sector.

To know more: https://www.alcircle.com/news/ega-taqa-dubal-holding-and-ewec-conceive-an-initiative-to-develop-solar-power-generation-capacity-and-decarbonise-aluminium-production-77830

Dr Tapan Kumar Chand, the former Chairman and Managing Director of Nalco and presently the President of Vedanta’s Odisha and Chattisgarh aluminium operations, stated that the state government of Odisha needs to step up to resolute the coal crisis. Following the challenge of the coal crisis, the local industries are countering which is driving to power shortage. However, this will impact the competitiveness of enterprises since power is the vital source for running manufacturing facilities.

To know more: https://www.alcircle.com/news/odisha-govt-needs-to-resolute-the-coal-crisis-dr-tk-chand-former-cmd-of-nalco-7782