Primary aluminium weekly recap: LME aluminium price hits 16-month low on weak demand; Alcoa curtails production at Norway's Lista aluminium smelter for soaring energy prices
This week, the primary aluminium industry has been in the news for multiple reasons. To begin with, China, the largest user of primary aluminium raw materials worldwide, expressed concern about the likelihood of a global recession and economic stagnation and warned of the prospect of reduced market size. As a result, the industry's purchasing power decreased significantly. Due to this, LME aluminium official price nosedived by US$88.5 per tonne to settle at US$2,406.50 per tonne. Besides this, on Thursday, the LME aluminium benchmark price fell to its lowest level in 16 months as new concerns about poor demand arose in the wake of disappointing economic data. On the other hand, rising energy prices caused Alcoa to reduce the output at the Lista aluminium smelter by one-third. Apart from this, on a positive note, researchers from the University of California made a breakthrough discovery by creating a unique aluminium alloy that reacts with water to produce hydrogen at room temperature. Also, Aluminum Bahrain BSC (Alba) became the first smelter in the area to reach the historic milestone of 30 Million Safe Working Hours without Lost Time Injury (LTI).
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Alcoa has decided to decrease one-third production capacity of the Lista aluminium smelter in Norway because of the aggravating energy prices in Europe and also for the heightened operational costs of the particular site.
To know more: https://www.alcircle.com/news/alcoa-curtails-production-at-norway-s-lista-aluminium-smelter-for-soaring-energy-prices-83435
On September 1, 2022, Aluminium Bahrain B.S.C. (Alba) emerged as the first smelter in the region to achieve a historic milestone of 30 Million Safe Working Hours without Lost Time Injury (LTI). This is the best milestone in Safety achieved to date, and it reflects Alba’s commitments and efforts towards strong safety culture and value.
Mr. Anthony Tropeano, a distinguished expert in the aluminium industry, joins AlCircle as the North American Strategic Advisor. Currently, Mr. Tropeano serves as the President of TT Consulting Inc., a US-based firm that provides management consulting services in the metals, mining, and contracting sectors.
In a novel breakthrough, University of California scientists have developed a special aluminium alloy that produces hydrogen at room temperature by reacting with water. Aluminium is a reactive material that already separates oxygen from water molecules, leaving hydrogen behind. According to Santa Cruz Works, the novel aluminium nanoparticles combine with water to produce hydrogen at room temperature.
According to the International Aluminium Institute, primary aluminium production in North America during July 2022 continued to decline month-on-month by 6,000 tonnes or 1.92 per cent standing at 306,000 tonnes. The output in June plunged by 13,000 tonnes from 325,000 tonnes in May to 312,000 tonnes.
The high possibility of global recession and economic stagnation has already alarmed countries like China, the world’s largest consumer of primary aluminium raw materials, flagging the risk of downsized markets. China, who has been battling with increased energy costs and heat wave, previously reported some aluminium and alumina capacity cut at Sichuan and Chongqing provinces.
On Thursday, the price of aluminium fell to its lowest level in 16 months as new concerns about poor demand arose in the wake of disappointing economic data. As per the data, both LME aluminium cash bid price and LME aluminium official settlement price nosedived by US$62.5 per tonne or 2.63 per cent to settle at US$2,305.50 per tonne and US$2,306 per tonne.
A00 aluminium ingot price has plummeted by RMB 240 per tonne to close at RMB 18,110 per tonne, as the Shanghai Metals Market recorded on Friday, September 2. The average prices are expected to range between RMB 18,090 per tonne and RMB 18,130 per tonne, with spot contracts trading at discount prices of RMB 50 per tonne and RMB 10 per tonne.
Social inventories of aluminium ingot across eight major Chinese consumption areas, including SHFE warrants, grew by 3,000 tonnes over the weekend to stand at 682,000 tonnes as of Monday, August 29, found the Shanghai Metals Market. But week-on-week, the inventories stood 1,000 tonnes lower than 683,000 tonnes on August 22.
China customs data revealed last week that the country’s prebaked anode export volume rebounded to the 200,000 tonnes level in July 2022, attaining 206,500 tonnes. This is the second time this year that China’s prebaked anode export has exceeded 200,000 tonnes, driven by strong demand from overseas aluminium smelters.
Through the first half of 2022, the North American aluminium industry (U.S. and Canada) recorded a year-to-date growth of 6.6 per cent, said the monthly Aluminium Situation report released by the Aluminum Association. This is an addition to a nearly 8 per cent year-over-year growth predicted for 2021, based on demand levels expected for the first quarter.
The United States’ domestic primary aluminium production in June 2022 stood at 78,000 tonnes, bringing the total output of the first half of the year to 485,000 tonnes, showed the US Census Bureau. The United States’ primary aluminium production in June reflected a decrease of 6,000 tonnes or 7.14 per cent from 84,000 tonnes.
One of the largest manufacturers of aluminium in the world, Novelis Inc., stated that it will not take Russian aluminium in any prospective new contracts to supply its European facilities in the coming years. This decision might set the tone for future contract discussions throughout the sector.
Four GT13E2 gas turbines and four generators placed at Sohar Aluminium's facility in the Sultanate of Oman will get repairs, maintenance, and components for ten years thanks to a services agreement inked with GE Gas Power (NYSE: GE). For the duration of the deal, GE Digital will also supply its Asset Performance Management (APM) software.
To know more: https://www.alcircle.com/news/sohar-aluminium-inks-power-service-contract-with-ge-gas-for-10-years-83419
On August 29, an INR 2005.89 crore investment accord was inked by the Government of Odisha to set up ten industrial projects employing more than 3,545 people in the Indian state. The principal approvals were made for the metal industry following its downstream activities, along with citing proposals for the pharmaceutical, chemical, infrastructure, and tourism sectors.
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