Primary aluminium weekly recap: China’s Yunnan province might restrict aluminium production due to energy crisis; Government of India to sell remaining BALCO stakes
At this moment, the primary sector is the most vulnerable area in the aluminium value chain, with the global energy crisis at its peak and the Russia-Ukraine crisis causing enough turfs in the economic conditions. Last week, there were reports of China facing a recurring energy shortage in the southwest, due to which the world’s largest aluminium producer restrained its production in Yunnan Province, the core of south China’s aluminium industry. The Government of India announced the disownment of its remaining stake in BALCO, which is now partially owned by Sterlite Industries Ltd, a unit of Vedanta Ltd. The LME aluminium price grew US$33 per tonne to begin the week at US$2,298 per tonne and kept increasing gradually to halt at US$2,344 per tonne on March 30, with a US$46 per tonne spike W-o-W. At the same time, the SHFE aluminium price scored US$2 per tonne at the beginning of the week, with the price pegging at US$2,683 per tonne on Monday, March 31. Over the week, it jumped by US$44 per tonne to US$2,727 per tonne on March 31.
On March 30, Wednesday, the LME aluminium cash bid price and the LME aluminium official settlement price slumped by US$22 per tonne or 0.93 per cent to close at US$2,343.50 per tonne and US$2,344 per tonne.
On Friday, December 31, China’s A00 aluminium ingot price has grown by RMB 90 per tonne to stand at RMB 18,670 per tonne, with the average prices standing between RMB 18,650 per tonne and RMB 18,690 per tonne. The spot contract price is expected to be traded at a discount price of RMB 90 to RMB 50 per tonne.
As part of the United States administration's effort to exempt aluminium and steel exports from the carbon border levy (CBAM), a broader metal accord may be complicated by the allies imposing tariffs and retaliatory measures on each other's goods that could result in billions of dollars in tariffs and retaliatory measures.
To know more: https://www.alcircle.com/news/us-seeks-exemption-from-eu-s-cbam-to-resolve-the-tariff-dispute-92361
Norsk Hydro, the leading industrial company committed to a sustainable future, appointed Martine Rambøl Hagen as the new Head of Investor Relations, effective May 1, 2023. She will be in charge of communicating with investors and the financial markets on behalf of Hydro.
To know more: https://www.alcircle.com/news/hydro-appoints-martine-rambol-hagen-as-the-head-of-investor-relations-92373
The government of India is likely drawing up to sell its remaining stake in Bharat Aluminium Company Ltd (Balco) in the next financial year, as per reported by a media house.
To know more: https://www.alcircle.com/news/india-govt-likely-to-sell-balco-stake-in-the-next-financial-year-92400
The 18th edition of Aluminium China, one of the biggest aluminium trade fairs in the world and a leading indicator of the sector will take place in Shanghai in July. The event, dedicated to advancing the sustainable growth of the global aluminium industry, will bring together new goods, technologies, procedures, and applications from all facets of the aluminium value chain to enable the industry to move in that direction.
China, the world's largest aluminium producer, is again in a precarious position. In this instance, the primary cause is a problem with the nation's power supply in the southwest. Due to a severe water constraint, the Yunnan province, the centre of southern China's aluminium manufacturing industry, is restricting metal production.
To know more: https://www.alcircle.com/news/energy-crisis-expected-in-yunnan-throughout-2023-aluminium-production-may-be-affected-92407
The possibility that the United States and its allies would impose economic penalties against Russia's aluminium in response to the ongoing geopolitical issue with Ukraine was one of the biggest unpredictability in the global aluminium sector while driving into 2023.
To know more: https://www.alcircle.com/news/us-tariffs-on-russian-aluminium-unlikely-to-impact-the-metal-price-92411
The American University in Dubai is announced as a winner of EGA’s this year’s AI Robot competition. Al Robot is an annual competition hosted by EGA, challenging students from UAE universities and higher education institutions to design and make prototype industrial robots for use at EGA’s aluminium smelters.
To know more: https://www.alcircle.com/news/the-american-university-in-dubai-wins-egas-ai-robot-competition-by-presenting-r-fact-92431
On Thursday, March 23, the inventories came in at 1,126,000 tonnes, which in comparison with the third Monday of this month, March 20, plummeted by 38,000 tonnes. The social aluminium inventories built up 85,000 tonnes Y-o-Y but have continuously fallen 143,000 tonnes from the highest recorded number in March.
To know more: https://www.alcircle.com/news/chinas-primary-aluminium-inventory-plummets-85-000-tonnes-w-o-w-on-march-24-92369
According to the Shanghai Metals Market, Malaysia, Thailand, Vietnam, South Korea, and Pakistan were the five top suppliers of unwrought aluminium alloy to China during January-February 2023. In the first two months of the year, China imported 168,900 tonnes of unwrought aluminium alloy, reflecting a year-on-year plunge of 39,500 or 18.9 per cent.
On March 27, 2023, Marubeni Corp. reported that aluminium stocks at three major Japanese ports, Yokohama, Nagoya and Osaka, dipped by 2.6 per cent to 382,400 tonnes at the end of February 2023 from 392,500 tonnes from January 2023.
To know more: https://www.alcircle.com/news/marubeni-reports-japan-s-aluminium-stocks-declined-by-2-6-in-february-92392
According to China Customs data, China exported 321,300 tonnes of the prebaked anode during January-February 2023. That reflected a year-on-year increase of 1.22 per cent. In January, China exported 189,900 tonnes, which decreased by 30.81 per cent to 131,400 tonnes the following month.
The surge in global aluminium output coincided with growing concerns that an economic slowdown would reduce demand for the metal. Europe's industrial economy suffered greatly due to the geopolitical-induced energy crisis. Fears of a recession were raised in the US due to inflation and rising interest rates.
To know more: https://www.alcircle.com/news/us-european-economic-slowdown-cools-the-demand-for-aluminium-92417
According to the Shanghai Metals Market, China’s social inventories of aluminium ingot further lost 38,000 tonnes over a week across the eight major consumption areas, including SHFE warrants, to stand at 1.09 million tonnes as of Thursday, March 30. But it is to be noted that the weekly decline slowed down from the drop of 85,000 tonnes in the week of March 20-26.
Glencore, the Swiss multinational commodity trading house, has unloaded more than 100,000 tonnes of aluminium at the LME-registered warehouses in the South Korean port of Gwangyang, as reported by one of the world's largest news agencies.
To know more: https://www.alcircle.com/news/glencore-deposits-100-000-tonnes-of-russian-aluminium-at-the-lme-warehouse-in-south-korea-92442
India’s top three aluminium players – NALCO, Hindalco, and Vedanta have elevated their aluminium ingot and aluminium products this week in tandem with the LME aluminium benchmark price hike. NALCO this week, with effect from Tuesday, March 28, lifted its aluminium ingot price by INR 5,600 per tonne or 2.6 per cent to INR 221,450-224,950 per tonne versus INR 215,850- 219,350 per tonne on March 18.
To know more: https://www.alcircle.com/news/nalco-hindalco-vedanta-lift-aluminium-ingot-price-this-week-in-response-to-lme-price-rally-92449
Aluminium Bahrain (Alba), one of the world's largest aluminium smelters ex-China, announced that the Power Station 5 (PS5) Block 4 Project is progressing per the schedule. Alba's Chairman of the Board of Directors, Shaikh Daij bin Salman bin Daij Al Khalifa stated that the Power Station 5 (PS5) Block 4 Project is progressing without any problems.
To know more: https://www.alcircle.com/news/albas-ps5-block-4-project-on-track-and-will-be-completed-by-2024-92379
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