Primary aluminium weekly recap: Meridian Energy and NZAS sign agreement for 20MW electricity boost

In 2024, the market outlook for primary aluminium is forecasted to be mixed, with both upside and downside. The persistent global economic uncertainty is poised to exert a sustained influence on the outlook of the aluminium industry. As per AL Circle's report, "Global Aluminium Industry Outlook 2024," primary aluminium production is estimated to increase by about 1.82%, reaching 70.3 million tonnes in 2023. Grab a copy of AL Circle's "Global Aluminium Industry Outlook 2024" report to know how the primary aluminium industry will function. Below is a list of the top news that created a buzz in the industry throughout the week:

New Zealand Aluminium Smelters (NZAS) signed an agreement with Meridian Energy to offer 20MW of electricity to the national grid if required over 12 weeks this winter. This arrangement enables Meridian to inject 20MW back into the system during the peak winter demand periods when the national grid experiences its most substantial strain. The United States has recently made headlines by excluding Russian aluminium and nickel from its latest round of sanctions, garnering significant media attention since early February 2024. As of the most recent report on Monday, February 26, the U.S. has imposed sanctions on over 500 individuals and entities in Russia but has opted not to target base metals such as aluminium and nickel. As anticipated, aluminium prices have not improved at the start of this year compared to 2023. Analysts at AL Circle have indicated that the global aluminium market in the first half of 2024 is expected to resemble the trends seen in 2023.

New Zealand Aluminium Smelters (NZAS) has agreed with Meridian Energy to provide 20MW of electricity to the national grid if needed over 12 weeks this winter. This pact allows Meridian to inject 20MW back into the system during winter's peak demand periods when the national grid faces its most significant strain.

To know more: https://www.alcircle.com/news/nzas-inks-an-agreement-with-meridian-energy-to-supply-20mw-of-electricity-to-the-grid-109040

The United States has reportedly ruled out Russian aluminium and nickel from its new set of sanctions, which made several roundups in the media since early February 2024. According to the latest report on Monday, February 26, the United States declared sanctions on more than 500 people and entities in Russia and eliminated base metals, including aluminium and nickel.

To know more: https://www.alcircle.com/news/us-eliminates-russian-aluminium-from-its-brand-new-sanction-list-109036

Base metals prices on the London Metal Exchange (LME) generally trended positively for the week ending on February 23, except aluminium, which saw a decline of 1.7 per cent due to increasing stocks. Aluminium stocks at LME warehouses notably rose by over 8 per cent to 580,275 tonnes from 534,925 tonnes.

To know more: https://www.alcircle.com/news/aluminium-stocks-at-lme-warehouses-ascended-by-8-to-580-275-tonnes-109026

On February 27, 2024, the China state-backed research institution Antaike reported that China's aluminium consumption is projected to experience a slower growth rate this year. Specifically, construction sector demand has decreased due to troubled property markets.

To know more: https://www.alcircle.com/news/china-s-aluminium-consumption-to-experience-modest-growth-in-2024-antaike-reports-109037

On February 20, He Shuping, secretary of the Guangyuan Municipal Party Committee, chaired the eighth meeting of entrepreneurs in Guangyuan City along with the Forum on aluminium ingot trade.

To know more: https://www.alcircle.com/news/eighth-entrepreneur-meeting-and-aluminium-ingot-trade-symposium-organised-in-guangyuan-city-109024

To comply with the national energy-saving policy and advance Chinalco Group's "double carbon" agenda, Southwest Aluminum and Chinalco Environmental Protection and Energy Conservation Technology (Hunan) have recently achieved the energy-saving refurbishment of their smelting furnace. This move underscores their commitment to green development, focusing on energy conservation and emission reduction.

To know more: https://www.alcircle.com/news/major-milestone-southwest-aluminum-s-furnace-upgrade-cuts-natural-gas-usage-by-over-20-109049

On Friday, March 1, Vedanta Aluminium announced that it is very close to its goal of having 30 per cent female employees in the workforce. The company is hopeful of achieving this milestone by the end of FY2025, much ahead of the original timeline of 2030 set by Vedanta.

To know more: https://www.alcircle.com/news/vedanta-aluminium-is-on-track-to-achieve-30-women-employment-goal-by-fy2025-109075