1. Macro perspective The US-Iran conflict entered its second week. After the escort coalition intervened, traffic through the Strait of Hormuz partially recovered, but war risk insurance rates remained elevated. Brent crude pulled back from a high of USD 101 to consolidate around USD 95, with energy cost support weakening from earlier levels but not yet fading. The US Fed delivered a 25bp rate hike at its September FOMC meeting, and the dot plot indicated one more hike may still occur this year. Chair Warsh struck a hawkish tone in his post-meeting remarks, and the US dollar index held at a 13-month high. Next week, attention turns to China's official PMI on September 30, as well as US PCE and non-farm payrolls data during the National Day holiday—with China's market closed for seven days...
According to data released by the General Administration of Customs of the People's Republic of China (GACC), China's total primary aluminium imports reached 185,500 tonnes in August 2026, down 14.65 per cent year-on-year but up 0.16 per cent month-on-month. Total imports for January-August amounted to 1.66 million tonnes, a decrease of 3.41 per cent year-on-year. The 14.65 per cent year-on-year decline in August imports, coupled with a nearly flat month-on-month performance, indicates that imports have not collapsed but rather maintained a steady inflow. In August, China's total primary aluminium exports stood at 21,900 tonnes, down 14.53 per cent year-on-year and 30.48 per cent month-on-month. Cumulative exports for January-August totalled 167,500 tonnes, up 9.26 per cent year-on-year....
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The US dollar dipped and fell to a two-week low after Federal Reserve officials expressed caution over the global growth, prompting traders to reassess the pace of future US interest rate increases. LME aluminium continued to trade weakly given negative fundamentals. The contract however closed Monday’s trading slightly higher than Friday at US$ 1918 per tonne. A weakened US dollar lifted the contract to a high of US$1,953 per tonne at night but it slid below the daily moving average gradually. It is expected to continue the decline with trading range at US$1,920-1,960 per tonne today. As on November 19, Monday, LME aluminium cash (bid) price stood at US$ 1917.50 per tonne, LME official settlement price stands at US$ 1918 per tonne; 3-months bid price stands at US$ 1940.50 per tonne,...
According to a recent update by Shanghai Metals Market, primary aluminium capacity cuts expanded sharply in the second half of 2018 as weak aluminium prices and high operating costs caused an immense loss to the producers. Per the SMM research, production cuts for the year are likely to exceed 2 million tonnes. A total of 1.98 million tonnes of primary aluminium capacity across 15 plants has been cut or will be cut this year, showed SMM as of November 19. The second half of the year saw major cuts of around 1.81 million tonnes. According to another update by SMM, the A00 aluminium ingot price today, on November 20, plunged by RMB 10 per tonne after a rise for the past two consecutive days. The price today clocked at RMB 13,740 per tonne. The average prices are expected to range between...
According to Rio Tinto, aluminium inventories in the world outside China would decline in next two to three years as demand will see a quicker growth. Alf Barrios, the chief executive officer of Rio Tinto Aluminium said this in an interview recently. “We see aluminium demand growth being extremely healthy,” Barrios said. Aluminum producers outside China will need to build additional smelting capacity as inventories will decline with growing demands and closed capacity. According to him, North American consumption would gain as the Electric Vehicle revolution is getting momentum. “People believed China was going to be a significant net exporter to the rest of the world in the future, I think people now see China being more balanced,” he said emphasising on the changing role of China from...
Shanghai Metals Market found a sharp plunge in purchasing enthusiasm of spot aluminium among downstream consumers in China as on Monday, November 19. As per the SMM analysis, it could be because of the rise in primary aluminium future prices and the support that downstream production got from the existing primary aluminium stocks at the beginning of the week. The SHFE 1812 contract climbed in morning trades. In Shanghai, most spot transactions were seen at RMB 13,750 per tonne to RMB 13,760 per tonne, with discounts of RMB 30 per tonne to RMB 20 per tonne against the December contract. Transactions in Wuxi were also found the same as that in Shanghai, but Hangzhou recorded a transaction at RMB 13,750 per tonne to RMB 13,770 per tonne. The primary aluminium price gains, however,...
The US dollar closed lower against a basket of the currencies on November 16, Friday night. The pound rallied on Friday but remained under heavy pressure as UK Prime Minister Theresa May fought to justify the Brexit deal. LME aluminium closed the day’s trading at US$ 1914 per tonne on Friday. Weak fundamentals saw LME aluminium unsuccessfully testing pressure around US$1,947 per tonne twice last Friday night. With support below, it rebounded after it dipped below the Bollinger lower band, and settled slightly up on the day at US$1,947 per tonne. The contract is expected to trade within a range of US$ 1,910-1,960 per tonne. As on November 16, Friday, LME aluminium cash (bid) price stood at US$ 1913.50 per tonne, LME official settlement price stands at US$ 1914 per tonne; 3-months bid price...
Shanghai Metal Market research found a further drop in social inventories of primary aluminium across eight major consumption areas in China. The stock, including SHFE warrants, came in at 1.438 million tonnes over the weekend ended on Monday, November 19, down some 15,000 tonnes from last Thursday, November 15. The reason for this incessant week-on-week fall in primary aluminium inventories could be the production cuts across smelters due to increased losses. Compared to last Thursday, inventories in Wuxi and Jiangsu plunged by some 15,000 tonnes to stand at 613,000 tonnes while that in Nanhai and Guangdong, and Gongyi and Henan dropped by some 2,000 tonnes and 1,000 tonnes to clock at 207,000 tonnes and 75,000 tonnes, respectively. On the other hand, inventories in Shanghai and...
National Aluminium Company Limited ’s (NALCO) hi-tech pavilion at the Make in Odisha Conclave 2018 used the latest technologies including 3d holographic display, virtual reality (VR), touch screen, gesture driven interactive wall etc to showcase its production units, products, CSR activities, achievements etc. Hi-tech pavilion was held in Bhubaneswar from November 11 to 15. According to Nalco press release, the VR technology was an instant crowd puller that gave the visitors a unique and engrossing experience of virtually visiting the picturesque NALCO’s Panchpatmali Bauxite mines and other operating units at Angul and Damanjodi. NALCO CMD Dr. Tapan Kumar Chand said that the emergence of the 4th Industrial Revolution, Artificial Intelligence, Internet of Things, Robotics, Augmented...
On November 8, around 10,000 Spanish workers reportedly marched in Aviles, Spain, protesting the US-based aluminium giant Alcoa’s proposal to close down two of its smelters. They even sought for the intervention of the government regarding the said matter but received a hostile response. According to the report, the shutdown of Alcoa’s two smelters could threaten up to 700 jobs. Rejecting the demand from the workers, Magdalena Valerio, minister of labour, migration and social security, categorically stated on November 11, “We are not in a state-run economy, how [do we] intervene in the company. We are not in a communist regime.” It was on October 17 when Alcoa announced its decision to close two of its smelters in Aviles and La Coruna. The two smelters together have the potential to...
Aluminum Association President & CEO Heidi Brock, on Friday November 16, gave a testimony at the U.S. International Trade Commission (USITC), highlighting the urgent need for full, quota-free tariff exemptions for Canada and Mexico as part of the final U.S.-Mexico-Canada Agreement (USMCA). The comments were made as part of the USITC’s hearing titled “United States-Mexico-Canada Agreement: Likely Impact on the U.S. Economy and Specific Industry Sectors”. Brock said: “The [USMCA] simply cannot work as intended for the aluminium industry and our customers with tariffs – or quotas to limit access to supply – in place. Full, quota-free exemptions for Canada and Mexico from aluminium tariffs as part of this agreement will benefit the U.S. aluminium industry and the hundreds of thousands of...
The US dollar held steady against a currency basket while the pound dipped amid uncertainty over Brexit issues. LME aluminium continued to trade weakly over the weak. The contract saw a trading range of US$1,914-1,934 per tonne. The LME aluminium contract started the week at US$1,934 per tonne and continued its downward trend with the US dollar holding steady against a currency basket and in absence of strong market fundamentals. The contract tried to regain some losses but failed to break resistance at the 60-day moving average. LME aluminium wrapped up Friday’s trading at US$ 1917 per tonne. The contract is trading at a level last seen in August 2017. As on November 16, Friday, LME aluminium cash (bid) price stood at US$ 1913.50 per tonne, LME official settlement price stands at US$...
On Wednesday, November 14, the state-owned National Aluminium Company Limited (Nalco) announced share buyback offer worth INR 505 crore. “The date of opening of the buyback is Tuesday, 13 November, and the date of closing of the buyback offer is Wednesday, 28 November,” National Aluminium Company (Nalco) said in a filing to BSE. The company added about its extensive plans for brown field and green field expansion that also include the ongoing fifth stream refinery of 1 million tonne per annum capacity in its existing alumina refinery at Damanjodi, and 60,000 million tonne per annum capacity of aluminium alloy wire rod plant at existing smelter and development of Pottangi bauxite mines. Last month, the company said that its board approved a proposal to buy back shares worth INR 504.8...
Shanghai Metals Market research found brisk transactions between traders widened spot aluminium premiums in Shanghai on Friday, 16 November 2018. The SHFE 1812 contract rose in the second session of morning after trading rangebound in the first session. Spot premiums in Shanghai stood at RMB30-40 per tonne over the SHFE 1812 contract, compared to RMB20-30 per tonne in the previous day. Most transactions were done at RMB13,660-13,670 per tonne in Shanghai and Wuxi and RMB13,670-13,690 per tonne in Hangzhou. Most transactions in Guangdong were heard at RMB13,740-13,760 per tonne , with Guangdong – Shanghai spread at RMB90 per tonne. In Guangdong, billet processing fees were heard at RMB460-500 per tonne for 90mm and RMB440-480 per tonne for 110/120 mm and 150/178 mm. Trades among traders in...
Vedanta Resources Limited on Monday, November 12, announced interim results for the six months ended 30 September 2018.Vedanta reported revenue of US$7.1 billion in H1 FY2019, up 4% from US$6.8 billion in H1 FY2018. The increase in revenue was attributable to higher volumes at aluminium, acquisition of Electrosteel, and higher commodity prices, offset by lower volumes and ongoing closure of Tuticorin operations. EBITDA increased 1% year on year to US$1.71 billion in H1 FY2019, from US$1.69 billion in H1 FY2018. Adjusted EBITDA margin in the mentioned period was at 29% compared to 34% in the same period previous year. Free cash flow (FCF) post-capex of US$(174) million (H1 FY2018: US$232 million) due to higher net interest and higher capex investments into growth projects. Vedanta said its...
Social inventories of primary aluminium across eight consumption areas in China, including SHFE warrants, dropped by some 32,000 tonnes from Thursday November 8 to stand at 1.453 million tonnes as of Thursday November 15, Shanghai Metals Market data showed. Downstream buyers stockpiled as spot prices dipped on the week, and this accounted for decline in inventories. The week-on-week drop stood 8,000 tonnes lower from the decline last Thursday. In some of the Chinese cities like Wuxi, and Nanhai, Gongyi the inventories declined over the week. In Wuxi and Nanhai, the inventory stood at 669,000 tonnes and 209,000 tonnes. The current inventory status in the major Chinese cities is as follow: In another update from SMM, the A00 aluminium ingot price witnessed a hike today, on November 16,...
The US dollar held steady against a currency basket while the pound dipped amid uncertainty over whether Prime Minister Theresa May's draft Brexit plan will receive parliamentary approval. LME aluminium continued to trade weakly and closed Thursday’s trading at US$ 1917 per tonne. It regained some losses at night but failed to break resistance at the 60-day moving average and closed at US$1,938 per tonne. Its trading range is likely to be at a range of US$1,910-1,960 per tonne today. As on November 15, Thursday, LME aluminium cash (bid) price stood at US$ 1916 per tonne, LME official settlement price stands at US$ 1917 per tonne; 3-months bid price stands at US$ 1940 per tonne, 3-months offer price is US$ 1940.50 per tonne; Dec 19 bid price stands at US$ 2007 per tonne, and Dec 19 offer...
According to trade sources both Vedanta and Hindalco have cut prices of their products on November 14 and November 15. Vedanta Ltd has cut prices of aluminium ingots by 1% with effect from November 14. The company had cut prices by over 1% last week as well. With this price cut, prices of Vedanta’s products are at their lowest level since mid-August. Prices of ingots are now down 4% for the quarter. The three-month aluminium price in London Metal Exchange has fallen 4% since the start of the quarter and stood at US$ 1944.50 per tonne on November 15. After the cut, the price for Vedanta aluminium ingot stands at INR 1,58,250 (USD 2199) per tonne, down from INR 1,59,750 (USD 2220) per tonne on November 13. Hindalco Industries Ltd is also reported to have cut the prices of aluminium products...
Emirates Global Aluminium, the largest industrial company in the United Arab Emirates outside oil and gas, has been recognised by the American Society for Quality (ASQ) with an award for its commitment to innovation within the organisation. The company was presented with the ‘2018 ASQ MEA Innovation Award for the Government Sector’ during ASQ’s 4 th Regional Quality Conference, held in Dubai. ASQ noted the company leadership’s clear commitment to and strategy for innovation, its efficient implementation of a robust Innovation Management System, and the strong partnerships it has developed to help maintain this commitment. ASQ is a global community of quality professionals, with nearly 80,000 members dedicated to promoting and advancing quality tools, principles, and practices in their...
Chinalco sees the company’s future overseas, as told by Ao Hong, deputy general manager of Aluminum Corp. of China, or Chinalco in an interview. The company is looking at business opportunities overseas as the domestic market is crippled by metal aluminium oversupply and higher raw material costs. “We’re under huge pressure, so the company has to accelerate reform and cut costs internally,” Hong said. While Chinalco is still earning profit in its businesses, many smaller firms are making losses due to low aluminium and higher raw material prices. Recently, government has re-allocated the capacity of Chinalco. The company acquired Yunnan Metallurgical Group Co. to add extra capacity. Chinalco Chairman Ge Honglin had earlier told in a conference that the acquisition would expand the...
