The most-traded SHFE aluminium 2612 contract closed at RMB 23,280 per tonne, down RMB 85 or 0.36 per cent from the previous trading day's settlement price. It opened at RMB 23,375 per tonne during the day and fluctuated within a range of RMB 23,250-23,445 per tonne. Prices traded below the MA5 (23,386.00), MA10 (23,300.00), MA30 (23,570.00), and MA60 (23,778.00) moving averages, weakening again after a rebound and showing a consolidating-on-a-subdued-note structure, with the moving averages above forming key resistance pressure. The MACD DIF (-121.7235) remained above the DEA (-168.5361), with the MACD red bar at 93.6251, indicating some convergence in bearish momentum. The core trading range for SHFE aluminium is suggested at RMB 23,000-23,600 per tonne. The LME aluminium 3M contract...
Investor sentiment towards aluminium has turned increasingly bearish, but analysts believe the market may be underestimating the metal's underlying strength. Despite growing pessimism, resilient demand and historically low inventories could support higher prices, with analysts forecasting aluminium to reach USD 3,625 per tonne in 2027. Discussions with market participants have pointed to unusually negative sentiment towards the metal. However, analysts argue that the underlying supply-demand fundamentals paint a more constructive picture, challenging the prevailing pessimism surrounding the aluminium market. Their assessment follows Norsk Hydro's third-quarter financial results, which showed stronger earnings compared with the previous year but fell short of market expectations. The...
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According to the union, the National Union of Metalworkers of South Africa (Numsa) and South32's wage negotiations reached a standstill over the weekend. Members of Numsa who work at the KwaZulu-Natal province's Hillside aluminium smelter are involved in the conflict. South32's suggestion that Numsa submits a monetary bid "across the board" was rejected by Numsa. The Commission for Conciliation, Mediation, and Arbitration oversaw the meetings (CCMA). “So in this instance, South 32 is offering 3.1% increase across the board. And then on top of that it is offering a once-off increase of 4% which is paid for only one month in cash. South32 has not been fair in its approach to wage talks. They have already offered white collar workers, who earn much more than ordinary blue collar workers,...
LME aluminium opened at US$2,302 per tonne on Monday and closed at US$2,288 per tonne. On Monday, September 5, both LME aluminium cash bid price and LME aluminium official settlement price slumped by US$18 per tonne or 0.77 per cent and US$18.5 per tonne or 0.80 per cent to settle at US$2,290 per tonne and US$2,290.50 per tonne. 3-month bid price and 3-month offer price slipped by US$11 per tonne or 0.47 per cent to rest at US$2,289 per tonne and US$2,290 per tonne. December 23 bid price and December 23 offer price went down by US$10 per tonne or 0.42 per cent to stop at US$2,347 per tonne and US$2,352 per tonne. LME aluminium opening stock closed at 277050 tonnes. Live warrants and Cancelled warrants settled at 193600 tonnes and 83450 tonnes. LME aluminium 3-month Asian Reference Price...
Social inventories of primary aluminium in China have dropped over the weekend ended Monday, September 5, across eight major consumption areas, including SHFE warrants, following rises last week. Shanghai Metals Market data shows inventories have totalled 681,000 tonnes, down by 2,000 tonnes over the weekend and 1,000 tonnes compared to the last Monday. On Thursday, September 1, China’s primary aluminium inventories stood at 683,000 tonnes, accumulating 4,000 tonnes week-on-week. On Monday, August 29, the inventories amounted to 682,000 tonnes, gaining 3,000 tonnes over the weekend. The decrease in inventories over the weekend is primarily backed by Tianjin, Nanhai, and Chongqing as shown in the below chart: According to SMM, primary aluminium inventories in Tianjin have decreased by...
After Sichuan, another southwestern Chinese province that emerges as being affected by hydropower shortages is Yunnan, triggering concerns over potential output reduction in the province. According to the latest survey by Shanghai Metals Market, many smelters in Yunnan have expressed concerns over power supply, though having normal operations to date. A possible production cut in Yunnan, a major aluminium producing province leveraging hydropower, is anticipated to be adversely impactful for the entire aluminium industry. Yunnan, for having substantial hydropower resources and favourable policies for smelting, could manage to attract a sizeable amount of aluminium capacity over a few years. As per the current data, the installed aluminium capacity in Yunnan currently stands at around 5.63...
According to our report from the Gulf region, the Crown Prince and Prime Minister of Bahrain Salman bin Hamad Al-Khalifa, has issued an order to restructure the board of sovereign wealth fund Mumtalakat Holding with Finance Minister Salman bin Khalifa Al-Khalifa as its chairman. Mumtalakat reported its standalone annual results in June 2022, which revealed a rise in profit for 2021 from a loss in 2020. Further, Mumtalakat has slightly more than $18 billion in assets under management. The investment holding company’s strategic investments division holds a portfolio of Bahrain-based strategic investments in companies like Gulf Aluminium Rolling Mill Company (GARMCO). Today, with an annual production capacity of over 165,000 tonnes, it ranks as one of the region's largest manufacturers of...
LME aluminium opened at US$2,310.5 per tonne last Friday and closed at US$2,305 per tonne. On the bright side power supply at Sichuan province has increased leading to a recovery of balance in the economy with aluminium production rising up. LME aluminium cash bid price stopped at US$2,308 per tonne, with a 0.11 per cent or US$2.50 per tonne hike on Friday, September 2, while LME aluminium official settlement price rested at US$2,309 per tonne, experiencing an increase of US$3 per tonne or 0.13 per cent. 3-month bid price witnessed a 0.02 per cent or 50¢ per tonne slump to stand at US$2,300 per tonne and the 3-month offer price also had a similar percentage subtracted from it, arriving at US$2,301 per tonne. December 23 bid price and December 23 offer price expanded by US$5 per tonne or...
IMIDRO reported that its subsidiaries had produced 222,053 tonnes of primary aluminium in the current fiscal year's first four months (March 21-July 22) to register a 27% increase in production compared with the same phase of the previous fiscal year. The Iranian Mines & Mining Industries Development & Renovation, known as IMIDRO, is a major state-owned holding company active in the mining sector in Iran. The South Aluminum Company contributed 95,853 tonnes to the total output. Iran Aluminum Company followed it with 61,478 tonnes, Almahdi Aluminum Company with 52,456 tonnes and Iran Alumina Company with 12,266 tonnes. Iran Alumina Company produced 80,986 tonnes of alumina powder in four months, the sole producer of alumina powder in Iran. The output increased by 7% compared to 75,396...
The supply resumption of one of Russia's main gas routes to Europe on 3rd September 2022 was scraped, which sparked fears of winter fuel shortages. It highlighted a dispute between Gazprom and Siemens Energy over repairs to the pipeline. After its short maintenance, the Nord Stream 1 pipeline was expected to resume its flow this week as European governments battle to control soaring gas prices. In spite of this, Russia abruptly cancelled the restart, citing an oil leak in a turbine. In the aftermath of the Russia-Ukraine geopolitical crisis, Europe has accused Russia of weaponizing energy supplies, whereas Moscow blames Western sanctions and technical difficulties. Nord Stream's latest shutdown, which Russia says will last for as long as necessary to complete repairs, has added to fears...
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...
Vedanta Limited further reduced its aluminium ingot and aluminium products prices on September 2, in line with the continued downfall of the global aluminium price on LME. As per the revised price list shared by the company, Vedanta cut its aluminium ingot price by INR 6,250 per tonne to INR 212,000-241,500 per tonne. Vedanta’s aluminium wire rod price also saw an increase of INR 6,250 per tonne from INR 225,750-233,250 per tonne on September 1 to INR 219,500-227,000 per tonne on September 2. Aluminium billet price also experienced a back-to-back slash on September 2 to come in at INR 221,000 per tonne. Vedanta links its aluminium ingot and aluminium products prices to the three-month futures of aluminium on the London Metal Exchange, which slid by US$62.50 per tonne or 2.64 per cent on...
Hulamin, a South African aluminium supplier and exporter, announced robust earnings, with a hike of 147 per cent for the first half of 2022 ended June 30. Revenue rose by 45 per cent to R7.9 billion, and operating profit surged by 144 per cent to R223 million amid the challenges posed on working capital by a record high LME aluminium price during the said period. Outgoing Hulamin CEO Richard Jacob said: “… 2022 began with solid demand, firmer prices than in recent years, and a weaker rand/dollar exchange rate. Turnover increased by 45 percent, and profits increased by 144 percent, despite the constraints experienced at Durban Port; the impact on the automotive market due to the KwaZulu-Natal floods; and the challenges posed on working capital by the record-high LME Aluminium prices...
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. Russia is a major producer of aluminium, nickel, and copper, all of which have not been sanctioned by Europe or the United States. Although many in the industry, particularly in Europe, have avoided Russian metal since the Ukraine invasion, global trade continues through multi-year or annual deals already in place when the conflict began. As one of the world's major aluminium manufacturers, Novelis has placed a bid on 2023 supply to its European plants that prohibits any Russian metal from being...
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. According to Ali Al Baqali, Alba’s Chief Executive Officer, there is no better policy than ensuring safety of employees. The aim should be to achieve more than this milestone, hit higher benchmarks, and accomplish zero-accident work environment. Mr Baqali said: “30 Million Safe Working Hours without LTI is a legacy for future generations not just in Alba but also in the Region. Achieving such a historic Safety record alongside our best-ever financial...
LME aluminium opened at US$2,310.5 per tonne on Thursday and closed at US$2,316.5 per tonne, an increase of US$11.5 per tonne or 0.5 per cent. 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. 3-month bid price and 3-month offer price also plunged by US$55.5 per tonne or 2.35 per cent to rest at US$2,300.50 per tonne and US$2,301.50 per tonne. December 23 bid price and December 23 offer price tumbled by US$53 per tonne or 2.20 per cent and 2.19 per cent to score at US$2,352 per tonne...
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. In the second quarter of 2022 (from April to June), the United States churned out 244,000 tonnes of primary aluminium – 1.24 per cent or 3,000 tonnes higher than 241,000 tonnes in Q1 2022. The daily averageproduction in June 2022 was 2,620 tonnes, down by 2.96 per cent from 2,700 tonnes in May but 9 per cent higher than in June 2021. Total aluminium recovered from scrap in June 2022 was 286,000 tonnes – 6,000 tonnes or 2.05 per cent less than 292,000 tonnes in May...
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. Since 2021, the Aluminium Association member firms have announced more than $3.7 billion in domestic manufacturing activities, including the first brand-new greenfield U.S. sites. Over $4 billion in new aluminium investments have been reported by other companies in recent months. “We are seeing strong demand and truly unprecedented levels of investment in the U.S. aluminum industry today. America is one of the best places in the world to...
According to the Shanghai Metals Market, social inventories of primary aluminium across eight major Chinese consumption areas, including SHFE warrants, have gained 4,000 tonnes over the week ended Thursday, September 1, to reach 683,000 tonnes. From Monday, August 29, the inventories are up by 1,000 tonnes; and higher by 5,000 tonnes than at the beginning of August. The week-on-week increase in inventories on September 1 has primarily been contributed by Wuxi, while other provinces have either recorded downfall or remained restrained. The chart below indicates the current status of primary aluminium inventories across China in more details: In Wuxi, primary aluminium inventories have surged by 16,000 tonnes week-on-week to stand at 216,000 tonnes as of September 1, but that in Nanhai and...
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. Having worked in the ferrous and non-ferrous industries for 40 years, Mr. Tropeano retired from FATA S.p.A. (part of the Danieli Group) in February 2018. As Chief Executive Officer of FATA, he successfully led its two operating divisions, FATA Hunter (engineering and equipment supplier for aluminium flat rolled products) and FATA EPC (supplier of complete plants on an LSTK-EPC basis). Before joining FATA, Mr. Tropeano served as Executive V.P. and COO of Italimpianti of America, Inc. -...
