Primary Aluminium Weekly Recap: China’s August aluminium output falls for the fourth straight month to 3.16 MT; Japanese buyer to pay $220/t premium for Q4 aluminium shipments

The most notable event we witnessed this week in the global primary aluminium sector was the LME aluminium price leap to a 13-year high at US$3,000 per tonne, fuelled by raw materials supply disruptions in Guinea coupled with production restrictions in China. But both the LME aluminium cash (bid) price and LME official settlement price dropped the same day to close at US$2,949 per tonne and US$2,950 per tonne, however, up by 1.8 per cent from the previous day. The prices ended the week at US$2,914 per tonne and USS$2,915 per tonne, respectively.

To know more: https://www.alcircle.com/news/lme-aluminium-price-ends-this-week-lower-at-2915-t-after-touching-3000-t-shfe-price-closes-at-3516-t-70398

A00 aluminium ingot price in China started the week on September 13 at a peak of RMB 23,420 per tonne, which decreased the next day on September 14 at RMB 22,890 per tonne. On Wednesday, September 15, the price edged further down sharply by RMB 650 per tonne to come in at RMB 22,240 per tonne. On September 17, the price surged by RMB 500 per tonne to stand at RMB 22,740 per tonne, while remained restrained the next day on Friday, September 18.

To know more: https://www.alcircle.com/news/raw-materials-supply-distress-globally-drives-chinas-imported-alumina-price-to-a-3-year-high-at-us492-t-shows-smm-70386

China’s social inventories of primary aluminium built up by 15,000 tonnes week-on-week across eight major consumption areas, including SHFE warrants, to stand at 766,000 tonnes as of September 16, found the Shanghai Metals Market. This week, the rise in inventories was primarily contributed by Wuxi, Nanhai, and Gongyi. In Wuxi, primary aluminium inventories increased by 7,000 tonnes on the week to come in at 237,000 tonnes, while inventories in Nanhai and Gongyi grew by 6,000 tonnes to peg at 226,000 tonnes and 66,000 tonnes, respectively.

To know more: https://www.alcircle.com/news/chinas-primary-aluminium-inventories-gain-15-000-tonnes-this-week-to-stand-at-766-000-tonnes-smm-70378

The National Bureau of Statistics showed on Wednesday, September 14, that China’s aluminium output in August fell for the fourth straight month, attributing to tight restrictions on metal production and power usage.  The world’s top aluminium producer churned out 3.16 million tonnes of primary aluminium in August, down 3.2 per cent from 3.263 million tonnes in July but up 0.4 per cent year-on-year.

To know more: https://www.alcircle.com/news/chinas-primary-aluminium-output-in-august-drops-3-m-o-m-to-3-16-million-tonnes-on-strict-production-restrictions-nbs-70367

Yunnan located in Southwest China has reportedly asked the local smelters to reduce the production of aluminium by 30 percent for the rest of the year to help them in meeting their goals of reducing greenhouse emissions and energy use.

According to Antaike, the state backed research house, around 1 million tonnes of power capacity were already shut down by Yunnan aluminium smelters in August. 

To know more: https://www.alcircle.com/news/yunnan-province-china-enforces-output-curbs-on-aluminium-smelters-70358

After month-long negotiations, a Japanese buyer has reportedly nodded to pay a premium of $220 per tonne for aluminium shipments for the December quarter of 2021, an increase of 19 per cent from the current quarter in tandem with the higher overseas premium, said two sources directly involved in the pricing talks.

For July-September shipments, Japanese aluminium buyers are paying $185. The increase in premium for the next quarter marks the fifth consecutive quarterly rise and the highest since the April-June quarter in 2015.

To know more: https://www.alcircle.com/news/japanese-aluminium-shipments-premium-for-q4-2021-agreed-at-220-t-highest-since-june-quarter-2015-70387

Yunnan Aluminium Co., Ltd. has reduced its 2021 production target by more than 500,000 tonnes or almost 18 per cent after the local government enforced production curb for the rest of the year. The news came after the company, which uses Yunnan’s hydropower sources for the energy-intensive smelting process, said in a filing on Thursday, September 16, that its primary aluminium output was expected to fall to 2.36 million tonnes this year.

To know more: https://www.alcircle.com/news/yunnan-aluminium-co-ltd-reduces-2021-output-target-by-2-to-2-36-million-tonnes-due-to-new-production-restrictions-70391

National Aluminium Company Limited (NALCO) has decreased its aluminium ingot and aluminium products prices as the LME aluminium benchmark price signs off from the 13-year high. With effect from Friday, September 17, NALCO’s aluminium ingot price has come in at INR 242,850-246,350 per tonne, down by INR 3,000 per tonne or 1.2 per cent from INR 245,850-249,350 per tonne on September 11.

To know more: https://www.alcircle.com/news/nalco-cuts-aluminium-ingot-price-by-inr3000-t-as-lme-aluminium-price-quits-13-year-high-70394

The Shanghai Metals Market (SMM) survey revealed that in 2021, Guizhou Provincial Energy issued a notice on the orderly power utilisation plan in Guizhou Province. The main motive behind the plan was to respond to the power supply issue in the local regions and also to ensure a safe and stable operation of the Guizhou power grid. The implementation comes with three parts: prevention and pre-control, graded early warning, and graded response.

To know more: https://www.alcircle.com/news/strict-power-rationing-in-guizhou-and-guangxi-may-affect-4-4-million-mt-of-annual-aluminium-production-capacity-70392