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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Alba announced its financial results for the third quarter and nine months of 2018. Alba said its top-line and bottom-line for Q3 and nine months of 2018 were primarily driven by higher metal sales’ volume and partially offset by higher alumina prices. For the Third quarter of 2018, Alba reported a net income of BD 14.3 million (US$ 38 million), down 44% YoY on higher alumina prices, compared to BD 25.8 million (US$ 68.5 million) in Q3 2017. Total sales/revenues decreased to BD 234.6 million (US$ 623.8 million) versus BD 235.3 million (US$ 625.8 million) in Q3 2017. For the nine months of 2018 , the company’s net income stood at BD 77.3 million (US$ 205.6 million up 12% YoY, compared to BD 69 million (US$ 183.5 million) in nine months in 2017.Total Sales/Revenues rose 16% YoY to reach BD...
The US dollar followed Wall Street lower on Friday, falling from highs earlier in the day after third-quarter GDP data performed stronger than expected. Both LME and SHFE base metals ended in mixed performance on Friday night. Aluminium rose by 0.8%. LME aluminium closed the day’s trading at US$ 1961 per tonne on Friday. It then recovered some losses overnight but potential resumption of Hydro’s alumina refinery and strengthened US dollar depressed LME aluminium to a low of US$1,975 per tonne during night trading. It then rebounded to settle at US$2,006 per tonne. The contract is likely to trade at US$1,970-2,010 per tonne today. As on October 26, Friday, LME aluminium cash (bid) price stands at US$ 1960 per tonne, LME official settlement price stands at US$ 1961 per tonne; 3-months bid...
According to the update from Commerce and Industry Minister Suresh Prabhu, India and the United States have exchanged offers for a possible trade deal to resolve issues related to bilateral commerce. “The negotiations are ongoing,” he said, while adding that the US has given an offer which in return India has given a counter-offer and the negotiation is working on it. India has deferred a notification for hiking import duties on as many as 29 US products. The country had announced to increase customs duty on 29 products, including pulses and iron and steel items, imported from the US as a retaliatory action against the tariff hike by the Trump administration. This new import duty would come into effect from November 2, 2018. The move had come in the wake of reports that US may be willing...
Social inventories of primary aluminium inventories across eight consumption areas in China, including SHFE warrants, declined by some 10,000 tonnes from Thursday October 25 to stand at 1.528 million tonnes as of Monday October 29, Shanghai Metals Market data showed. The decline in inventories of primary aluminium was slower from the drop of 27,000 tonnes during Thursday, October 18 to last Monday, as aluminium producers stepped up operation. In Wuxi and Jiangsu, the inventory declined to 663,000 tonnes today, from 669,000 tonnes on Thursday October 25; in Shanghai and Nanhai, Guangdong, the inventory came in at 347,000 tonnes and 229,000 tonnes respectively. In Gongyi, Henan, the inventory remained unchanged at 91,000 tonnes. The current inventory status in the major Chinese cities is as...
The US dollar strengthened as the euro and pound slipped on Thursday after the European Central Bank (ECB) kept interest rates unchanged in their October policy meeting. LME aluminium dropped below US$2,000 per tonne level and closed at US$ 1981 per tonne. It has closed lower for seven consecutive trading days and is likely to continue its weak performance in the short term. The contract closed near its day lows overnight and is likely to trade within a range of US$1,980-2,020 per tonne today. As on October 25, Thursday, LME aluminium cash (bid) price stands at US$ 1980 per tonne, LME official settlement price stands at US$ 1981 per tonne; 3-months bid price stands at US$ 1998 per tonne, 3-months offer price is US$ 1998.50 per tonne; Dec 19 bid price stands at US$ 2053 per tonne, and Dec...
Century Aluminum Company announced results for the third quarter of 2018. The company reported a net loss of $20.3 million for Q3 2018 in comparison to net income of $19.4 million for Q2 2018. The adjusted net income was $2.3 million for Q3 2018 compared to adjusted net income of $30.9 million for Q2 2018. Century Aluminium reported adjusted EBITDA of $28.7 million, down $25.8 million from Q2 2018. The decrease was primarily attributable to higher alumina costs, partially offset by higher LME prices and regional premiums. Michael A. Bless, President and Chief Executive Officer said: “Downstream demand continues to show strong growth and forward indicators suggest this trajectory should continue. Global primary aluminium inventories have decreased as forecasts call for a production deficit...
The A00 aluminium ingot price in China continues to witness a drop today, on October 26, 2018, even on the backdrop of shrinking social inventories of primary aluminium across eight major consumption areas, Shanghai Metals Market found. The price today has declined RMB 50 per tonne to stand at RMB 14090 per tonne. The average prices are expected to range between RMB 14070 per tonne and RMB 14110 per tonne, with spot discounts to settle at RMB 70 per tonne to RMB 30 per tonne. The decline in ingot price has also touched the major markets in China. In the east, the price has plunged RMB 65 per tonne from RMB 14135 per tonne, as on October 25, to RMB 14070 per tonne. In the south and north, the prices have plunged RMB 40 per tonne and RMB 35 per tonne respectively to stand at RMB 14170 per...
The US dollar strengthened against the euro on Wednesday after European data signalled that economic growth could be waning across the Eurozone. Both LME and SHFE base metals ended in mixed performance overnight. As the dollar strengthened, LME aluminium closed the European trading session lower at US$ 1987.50 per tonne on Wednesday. The contract continued to make losses during Asian trading sessions and tumbled to US$1,996 per tonne overnight, the lowest in close to six months. It rebounded slightly by closing time and settled at US$2,004 per tonne. It has closed lower for six consecutive trading days. The contract is likely to trade at US$1,990-2,020 per tonne today. As on October 24, Wednesday, LME aluminium cash (bid) price stands at US$ 1987 per tonne, LME official settlement price...
Social inventories of primary aluminium inventories across eight consumption areas in China, including SHFE warrants, declined by some 45,000 tonnes from Thursday October 18 to stand at 1.538 million tonnes as of Thursday October 25, Shanghai Metals Market data showed. High costs and cash flow issues drove domestic producers to cut aluminium production and this accounted for the decrease in inventories of primary aluminium. In some of the Chinese cities like Wuxi, Shanghai and Nanhai, Gongyi the inventories declined over the week. In Wuxi and Jiangsu, the inventory stood at 669,000 tonnes; in Shanghai and Nanhai, Guangdong, the inventory came in at 348,000 tonnes and 230,000 tonnes respectively. In Gongyi, Henan, the inventory declined to 91,000 tonnes. The current inventory status in the...
Norwegian aluminium and renewable energy company Norsk Hydro ASA announced the financial and production results for the third quarter and first nine months of 2018. As per the report, the company’s revenue for the third quarter stood at NOK 39766 million, up 74 per cent from NOK 22799 million in Q3 2017, but stood 4 per cent down from NOK 41254 million in Q2 2017. In the first nine months of 2018, the revenue was at NOK 120,991 million, compared to NOK 70,416 million in the same period last year. Underlying EBIT for primary aluminium declined compared to the third quarter last year due to higher raw material and fixed costs, partly offset by higher all-in metal prices. In addition, there was a positive contribution from the sale of excess power following the production curtailment of the...
The US dollar fell on Tuesday after Wall Street opened lower, spurring a risk-off move that benefited the safe-haven Japanese yen and Swiss franc against the greenback. Both LME and SHFE base metals ended in mixed performance overnight. LME aluminium lost 0.35%. LME aluminium fluctuated and posted a five-day losing streak on Tuesday with pressure at the five-day moving average. The light metal contract dipped below US$2000/t level and settled at US$ 1997 per tonne on Tuesday. It is expected to trade at US$2,000-2,030 per tonne today. As on October 23, Tuesday, LME aluminium cash (bid) price stands at US$ 1996 per tonne, LME official settlement price stands at US$1997per tonne; 3-months bid price stands at US$ 2015 per tonne, 3-months offer price is US$2016 per tonne; Dec 19 bid price...
According to the latest update from Shanghai Metals Market, the A00 aluminium ingot price again sees a rise today, on October 24, after a slight drop in the previous day. Today, the ingot price is hovering at RMB 14190 per tonne in contrast to RMB 14110 per tonne yesterday. Hence, this marks a growth by RMB 80 per tonne. The average prices are expected to range between RMB 14170 per tonne and RMB 14210 per tonne, with spot discounts reduced by RMB 10 per tonne to RMB 70 per tonne to RMB 30 per tonne. The rise is seen despite the cost restraint of alumina at RMB 3040 per tonne from October 18 to October 23, SMM found. However, bauxite price on the other hand, according to the last update on SMM on October 22, has seen a rise and hovering at RMB 590 per tonne. Other input prices such as...
According to the data showed by International Aluminium Institute (IAI), world primary aluminium output rose 2.5% year-on-year in September to stand at 5.301 million tonnes. The figure was down 3.4% from 5.485 million tonnes in August, while on a daily basis production was down month-on-month at 176,700 tonne per day. The total primary aluminium production stood at 48.02 million tonnes in January to September 2018 as against 47.86 million tonnes in January to September 2017.The figure was up by 0.3% year-on-year. In China, the primary aluminium production increased 3.6% year-on-year to 3 million tonnes in September. For the period January-September, the country produced 27.17 million tonnes of white metal, down 0.7% year on year. Europe primary aluminium production totalled at 644,00...
The US dollar rose on Monday as the pound fell on news that Brexit negotiations with the European Union over Northern Ireland remain in flux and as uncertainty over Italy's budget continued to lower the euro. LME base metals ended in the black across the board overnight. Aluminium edged up 0.17%. LME aluminium contract closed lower at US$ 2002.50 per tonne on October 22 from US$ 2022.50 per tonne on October 19. LME aluminium fell to an intraday low of US$2,002 per tonne from a high of US$2,032 per tonne on Monday morning, reports Shanghai Metals Market. The contract is expected to trade at US$1,990-2,030 per tonne. As on October 22, LME aluminium cash (bid) price stands at US$ 2002 per tonne, LME official settlement price stands at US$ 2002.50 per tonne; 3-months bid price stands at US$...
According to the Shanghai Metals Market report, spot aluminium discounts narrowed across the Shanghai market on the first trading day of the week as future prices fell in the morning trading hours. The SHFE contract for November delivery initially fell before it climbed in the morning trading hours. Spot discounts in Shanghai were heard at RMB50-70 per tonne against the SHFE 1811 contract, compared with RMB90-70 per tonne on Friday morning. Most transactions in Shanghai and Wuxi occurred at RMB14,100-14,120 per tonne and that in Hangzhou at RMB14,130-14,140 per tonne. Transactions in Guangdong were heard at RMB14,110-14,130 per tonne, with Guangdong-Shanghai spreads narrowing to RMB10-20 per tonne from RMB20-30 per tonne on Friday morning. Processing fees for billet in Guangdong were...
Qatar Aluminium (Qatulum) has revealed its total revenue during first six months of the year 2018 ended on June 30, which according to the report has jumped 10.72 per cent year-on-year to $0.74mn. Asia, Middle East, and North Africa have reportedly contributed 57 per cent to the revenue. Earnings before interest taxes depreciation and amortisation (Ebitda) stood $0.28mn with an Ebitda margin of 39% at the end of June 30, 2018, said the initial public offering (IPO) prospectus of Qatar Aluminium Manufacturing Company (Qamco). It also said The Asia and Mena regions’ revenue accounted for $0.42mn, while North America $0.15mn or 21%, Europe $0.14mn or 20% and Qatar $0.03mn or 3%. This shows revenues from Asia and Mena reported an 8.8% increase, Europe 26.36%, Qatar 36.92% and North America...
Alcoa announced on Wednesday, October 17, its intention to cease operations at its Avilés and La Coruña aluminium plants in Spain with a combined annual production of 180,000 tonnes. The Aviles and La Coruna plants were two of the least productive within the Alcoa system due to structural issues such as inefficient technology and high fixed costs and small production capacity. “Those problems, together with external market factors such as overproduction in China, high raw material prices and energy costs, have generated significant losses in these two plants in the last two years,” the company said. Per Spanish law, Alcoa will initiate a mandatory 30-day consultation period with the workers’ representatives to achieve the best possible outcome for the company and its workforce. “An...
Qatar Aluminum or Qatalum, a JV between Qatar Petroleum and Hydro Aluminium of Norway plans to sell 49 per cent of its shares in a public offering on Oct. 30. The state news agency QNA reported the news today. Norsk Hydro owns 50 per cent stake of Qatalum in the joint venture. State energy major and fifty per cent owner of Qatalum, Qatar Petroleum announced in May that it will list 49 per cent of its shares in the aluminium smelter plant Qatalum in a public offering during the last quarter of 2018. Qatar’s Financial Markets Authority had approved a request to publicly list shares of Qatar Aluminium (Qatalum) last week. The public offering will be priced at 10.1 Qatari riyals (US$2.77) a share, Qatar Petroleum said in a separate statement. Qatalum produces about 643,500 tons of primary...
