LME aluminium prices softened on September 22, with the cash and three-month contracts declining from the previous trading session, while LME aluminium opening stocks also edged lower on September 23. On September 22, the LME aluminium cash bid price stood at USD 3,240 per tonne, down 0.66 per cent from USD 3,261.5 per tonne on September 21. The cash offer price was USD 3,242 per tonne , down 0.63 per cent from USD 3,262.5 per tonne. The LME aluminium 3-month bid price stood at USD 3,263.5 per tonne on September 22, compared with USD 3,272.5 per tonne on September 21, representing a decline of 0.28 per cent. The 3-month offer price fell 0.27 per cent to USD 3,264 per tonne from USD 3,273 per tonne. Explore the production, demand and consumption forecasts of bauxite and alumina in our...
SHFE aluminium closed at RMB 24,245 per tonne, edging up 0.02 per cent. The price stood above the MA10 (24,236) but was capped by the MA5 (24,386), still well above the MA30 (24,084) and MA60 (23,729.92). The medium-term bullish structure remained intact, while short-term moving average resistance was evident. On the MACD indicator, DIF stood at 102.44 and DEA at 125.85, with the high-level death cross persisting. The green bar narrowed to -46.80 (previous day -50.36), indicating slightly weakening bearish momentum. Trading volume shrank to 52,300 lots, reflecting a strong wait-and-see sentiment in the market. The suggested core trading range for SHFE aluminium is 24,000-24,600. LME aluminium closed at USD 3,266 per tonne, up 0.21 per cent. The price was slightly below the MA5 (3,275.6)...
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The US dollar continued to edge lower on Tuesday, June 23, hitting the lowest level in more than a week, as the US President Donald Trump boosted investors’ optimism after he tweeted that the trade deal with China was “still intact”. This followed an increase in the greenback when the markets were unsettled by surprise comments from White House trade adviser Peter Navarro who said the hard-won deal was “over”. Three-month LME aluminium consolidated weakly around the five and 10- day moving averages on Tuesday, falling to an intraday low of US$1,590.5 per tonne near closing and paring some losses to end 0.59% lower on the day. As of Tuesday, June 23, LME aluminium cash (bid) price and LME official settlement price increased from US$ 1573 per tonne to US$ 1577.50 per tonne. 3-months bid...
On World Environment Day, Assan Aluminyum a subsidiary of Kibar Holding made public its "Protecting Biodiversity Project," that aims to conserve biodiversity through a research partnership with the Kocaeli University (KOU) Biology Department. The company, one of the leading manufacturers in the flat-rolled aluminium industry, continues to contribute to sustainability with this project, which has begun by reintroducing the endangered endemic "Amsonia Orientalis" plant back to nature. The project began with the "Amsonia Orientalis" plant, also known as "Blue Star," which has been identified by the European Commission in 2002 as a plant species that need to be preserved in the flora. This particular endemic plant is currently known to only exist in a few locations in the Marmara Region of...
Hindalco is exporting more than 80 per cent of the total output to minimise inventory build-up and to absorb plant fixed costs. Countries like Korea, the USA, Malaysia, Brazil, and Japan are leading importers of these products. The demand from the domestic market is down due to the Covid-19 pandemic. Domestic aluminium consumption declined 6% YoY to 3.72 million tonnes in FY20 and 11% in Q4. “We are exporting more than 80 per cent of our total output to countries like Korea, USA, Malaysia, Brazil, Japan, while minimizing our inventory build-up and absorbing the plant fixed costs. Our aluminium downstream plants in India had shut down initially, except at two plants, while other downstream facilities continued to operate and serve essential sector customers”, said Satish Pai, managing...
Fitch Ratings has amended the Outlook on Mytilineos S.A.'s long-term Issuer Default Rating (IDR) to Negative from Stable and affirmed the IDR and senior unsecured ratings at 'BB'. The amendment of the Outlook exhibits the weak macro environment with prolonged low commodity prices, material pressure on aluminium consuming industries, the expected underperformance of engineering, procurement and construction (EPC) business and uncertainties around the COVID-19 situation/shape of the recovery. The current three-month LME aluminium price is trading short of USD1,600/t, a reduction of around 12% from the 2019 average price. The company has revised its aluminium price assumptions down for the second time this year and it expects 2020 and 2021 LME prices to average USD1,560/t and USD1,600/t,...
Iran's production of aluminium ingots stood at 65,170 tonnes during the first two months of the current Iranian year (March 20-May 20), an increase of 58% compared with the same period last year, according to the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO). Iran’s flagship aluminium producer Iran Aluminum Company (IRALCO) contributed 31,984 tonnes of the total output. The output records a 4% growth year-on-year, Fars News Agency reported. Hormozal Aluminum Company produced 13,537 tonnes, which was a 163% rise on the year. Almahdi Aluminum Company’s production came in at 11,881 tonnes, up 128% year-on-year. The output from South Aluminum Company (SALCO) stood at 4,493 tonnes. Iran Alumina Company produced 3,275 tonnes. Iran has an estimated...
The US dollar fell on Monday. Overnight, LME and SHFE base metals closed mostly higher. LME aluminium added 0.95% and SHFE aluminium increased 0.96%. Three-month LME aluminium rebounded after initially falling to a session low of US$1,581.5 per tonne. It ended up 0.95% on the day at US$1,601 per tonne. As of Monday June 22, LME aluminium cash (bid) price stands at US$ 1573 per tonne, LME official settlement price stands at US$ 1573 per tonne; 3-months bid price stands at US$ 1590.50 per tonne, 3-months offer price is US$ 1590.50 per tonne; Dec 21 bid price stands at US$ 1696 per tonne, and Dec 21 offer price stands at US$ 1696 per tonne. The LME aluminium opening stock stood at 1617825 tonnes. Live Warrants totalled 1420600 tonnes, and Cancelled Warrants were 197225 tonnes. LME aluminium...
National Aluminium Company Limited (NALCO) has again increased its aluminium prices with effect from Saturday, June 20, following a cut on Wednesday, June 17. According to the prices revealed by the company, aluminium ingots prices are now ranging between INR 140050 per tonne and INR 143,550 per tonne, up by INR 1000 per tonne or nearly 1 per cent from INR 139050-142550 per tonne on June 17. With the latest hike, the prices of aluminium billets have come in at INR143500-146150 per tonne compared to INR142,500-145,150 per tonne after the previous cut, while the prices of aluminium wire rods have clocked at INR 144,550-148,900 per tonne as against INR 143,550 – 147,900 per tonne on June 17. The above data shows that both the prices of aluminium billets and aluminium wire rods of NALCO have...
On a further downfall of the social inventories of primary aluminium ingots in China on a brisk consumption on Monday, June 22, the price of A00 aluminium ingot has recorded a hike of RMB 70 per tonne to RMB 14,030 per tonne, found Shanghai Metals Market. This marks the second consecutive growth of A00 aluminium ingot price, crossing the benchmark price of RMB 14,000 per tonne. The average prices are expected to range between RMB 14,010 per tonne and RMB 14,050 per tonne, with spot contract to be traded at a premium price of RMB 220-240 per tonne. Chongqing has seen the highest growth in A00 aluminium ingot price today of about RMB 90 per tonne to RMB 14,020 per tonne, followed by Foshan, where the aluminium ingot price has increased by RMB 70 per tonne to stand at RMB 14,110 per tonne....
The United States of America is planning to re-impose tariffs on aluminium imports from Canada, as reported late on 22 nd June’20, mentioning people familiar with the matter. The announcement is expected to come by the end of the week. If Canada declines to impose export restrictions, the United States will announce on Friday, 26 th June’20, the re-imposition of 10% tariffs on aluminium from the country, as per the report. The report also added that tariffs will be implemented by 1 st July’20.
Global primary aluminium production stood at 5.448 million tonnes in May, an increase of 0.7% from 5.410 million tonnes in May 2019, according to the latest data showed by the International Aluminium Institute (IAI) on Monday 22 June 2020. On a month-on-month comparison, the output increased by 3.3% from 5.274 million tonnes. Total aluminium production amounted to 26.771 million tonnes in the first five months of 2020, an increase of 1.44% from 26.392 million tonnes in the first five months of 2019. In Asia ex-China, aluminium production reduced by 8.56% year-on-year but up 2.7% month-on-month to 342,000 tonnes in May. In January-May, output came in at 1.712 million tonnes, a decrease of 6.6% from 1.833 million tonnes in January-May 2019. In the Middle East, primary aluminium production...
In a spectacular development, China has lost a dispute to the European Union at the World Trade Organization (WTO) for a market economy status, as the former allowed the dispute to lapse. The development occurs after four years of battle for the market-economy status by China. The designation would have put the country in a stronger position in respect of its commercial and trade partners. The WTO Secretariat said China allowed the dispute to lapse. “At the request of China, the panel suspended its work on 14 th June 2019 (WT/DS516/13). Since the panel has not been requested to resume its work, according to Article 12.12 of the DSU, the authority for the establishment of the panel lapsed as of 15 th June 2020.” As per the European Union, China subsidises its industries to a great extent,...
As updated by Shanghai Metals Market, social inventories of primary aluminium across eight consumption areas in China, including SHFE warrants, continued to trend lower over the weekend on brisk demand. Inventories decreased 17,000 tonnes from last Thursday June 18 to 737,000 tonnes as of Monday June 22. The chart below shows the current status of the primary aluminium inventories across China in more details: Primary aluminium stocks in Wuxi, Nanhai and Hangzhou decreased by 13,000 tonnes, 10,000 tonnes and 2,000 tonnes to stand at 253,000 tonnes, 154,000 tonnes and 102,000 tonnes on June 22. Inventories of aluminium in Tianjin and Linyi remained unchanged at 59,000 tonnes, and 10,000 tonnes. Stocks in Chongqing stood at 5,000 tonnes on Monday, 22 June 2020, down 2,000 tonnes from June...
A00 aluminium ingot price registered an increase of RMB 50 per tonne from Friday’s price of RMB 13910 per tonne. The price now stood at RMB 13960 per tonne on Monday, 22 June 2020 and is expected to move within a range of RMB 13940-13980 per tonne. In Foshan and Wuxi, the price rose by RMB 40 per tonne and RMB 70 per tonne to stand at RMB 14040 per tonne and 13980 per tonne. Their average prices are expected to range within RMB 14020-14060 per tonne and RMB 13970-13990 per tonne. Aluminium prices in Hangzhou and Chongqing came in at RMB 13990 per tonne and 13930 per tonne, up RMB 70 per tonne and RMB 60 per tonne. Aluminium ingot prices in Shenyang, Tianjin, Linyi, and Gongyi increased to stand at RMB 13910 per tonne, RMB 13950 per tonne, RMB 13960 per tonne, and RMB 13915 per tonne. The...
The US dollar rose for the fourth consecutive day last Friday and posted its best weekly gain in a month, as fears of a second wave of coronavirus infections boosted demand for safe-haven assets. The dollar index, which measures the greenback against six major peers, was up 0.2% at 97.622, notching a four-day winning streak. Three-month LME aluminium finished lower at US$ 1,586 per tonne last Friday as it came off after climbed to a session high of US$ 1,605.50 per tonne, with investors covering their bullish positions. Open interest lost 2,775 lots to 831,000 lots. On Friday, June 19, both LME aluminium cash (bid) price and LME official settlement price stood at US$ 1578 per tonne after inching down from 1586.50 per tonne on Thursday, June 18. 3-months bid price and 3-months offer price...
Aluminium demand is likely to rebound in the second half of 2020 as China’s economy has begun to revive leading to the global recovery from the COVID-19 pandemic. But the overcapacity may continue to pose challenges to the industry, pointed out Alcoa CFO William F. (Bill) Oplinger in early June. Oplinger, while participating during a virtual presentation for the Deutsche Bank Global Industrials & Materials Summit, said: “China is leading the recovery, and we are seeing some sectors in China reporting growth higher than 2019 levels in areas like industrial production, vehicle production, commercial starts and food and drink sales.” He added, “On top of that was the recently announced Chinese stimulus plan that makes provisions for investments in traditional and new infrastructure areas, so...
On 19 th June’20, The London Metal Exchange (LME) stated that it had penalized warehouse operator ISTIM 30,000 pounds ($37,000) for violating aluminium warrant rules. The LME stated in a notice to members: “Between 12 th September’19 and 9 th December’19, ISTIM erroneously instructed its London Agent to issue primary aluminium warrants containing incorrect brand names and/or shapes on five separate occasions.” It has been declared that ISTIM had also stored metal for 1,107 warrants in a warehouse that was not the one listed on the LME’s system. However, it has been brought to notice that both issues appeared to be the result of human error.
The US has shown a desire to restore the duty benefits to Indian exporters under its Generalised System of Preferences if it receives a competent counter-offer from the Government of India. The officials of the Ministry of Commerce were closed-lipped on the kind of quid-pro-quo concession India Government would offer. However, they said the removal of the GSP benefits had a marginal impact on Indian exporters. The US-India relationship will stand stronger than before as the restoration of the benefits will be an added value. Robert Lighthizer, US Trade Representative, communicated to the US Senate Finance Committee: “We are in negotiations with India, we took away their GSP, and we’re in the process of restoring it if we can get an adequate counterbalancing proposal from them.” Lighthizer...
Hindalco Industries Limited has planned to sell about two-thirds of its aluminium production overseas this year on lower local demand due to the coronavirus pandemic, Bloomberg reported. Managing Director Satish Pai said exports will increase by around 65% of total production compared with last year’s 50%. Hindalco expects to sell 75% to 80% of its total aluminium production to overseas in the April-June quarter. The demand for aluminium in India has decreased due to the coronavirus lockdown. “In the months of April and May, domestic demand was quite low due to the lockdown. This condition is currently mitigated by higher exports by domestic producers,” Pai said in an interview. “Hindalco has exported around 80%-90% of its output in the last two months.” Increased exports would add to...
