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....
Grow with
AL Circle
The US dollar inched up 0.01% to close at 95.1, following news of improved manufacturing activity in the UK in August. Base metals, except for lead, dropped across the board. LME aluminium slumped 1.4%. Poor downstream demand in the expected high season weighed on aluminium prices, but higher costs of raw materials continued to prevent further downward room. LME aluminium slumped sharply below the 60- and 10-day moving averages to a low of US$2,080 per tonne overnight after settling at US$ 2083.50 during the day’s trading. Shanghai Metals Market expects LME contract to trade at US$2,075-2,105 per tonne. As on September 3, LME aluminium cash (bid) price stands at US$ 2082.50 per tonne, LME official settlement price stands at US$ 2083.50 per tonne; 3-months bid price stands at US$ 2109.50...
The A00 aluminium ingot price continues to decline across China. The A00 aluminium ingot price dropped RMB 30 per tonne to RMB 14690 per tonne on Tuesday, September 4, 2018, from RMB 14720 per tonne on September, 3, 2018. The prices are expected to range between RMB 14670 per tonne and RMB 14710 per tonne, with spot discounts to settle at RMB 50 to RMB 10 per tonne. A00 aluminium ingot price in China’s major markets have also registered a drop today. In the east, the price decreased RMB 25 per tonne to stand at RMB 14700 per tonne on September 4, compared to RMB 14725 per tonne on September 3. In the south and north, the price dropped RMB 50 per tonne and RMB 30 per tonne to stand at RMB 14790 per tonne and RMB 14700 per tonne, respectively. As far as the raw material prices are...
According to the new Vedanta CEO Srinivasan Venkatakrishnan’s statement shared with PTI in an interview, the firm (oil-to-aluminium group) holds a huge potential to become one of the world’s largest resource companies by expanding outside India without compromising on growth within the country. Venkatakrishnan, a highly regarded mining executive who worked at AngloGold, one of the world’s biggest gold producers, for 18 years, has taken over as the chief executive officer of Vedanta Resources on August 31, replacing Tom Albanese, the former head of Rio Tinto. The 53-year-old wants to give it back to India by building the company into a giant producer of commodities, create jobs, and reduce poverty. "If you look at diversified companies, they come with a bright and strong heritage. Vedanta...
After gaining over the last week ended on Thursday, August 30, the primary aluminium inventories across eight major consumption areas in China shrank over the weakened as limited deliveries arrived, Shanghai Metals Market learned. As of today September 3, the primary aluminium stocks, including SHFE warrants, dipped by some 12,000 tonnes from Thursday to stand at 1.735 million tonnes, according to SMM data. The inventory in Wuxi and Jiangsu stood at 727,000 tonnes; while in Shanghai, Nanhai and Guangdong, and Gongyi and Henan, the inventories were heard at 386,000 tonnes, 238,000 tonnes, and 162,000 tonnes, respectively. For more detail, refer to the chart below: But despite the drop in inventories on limited arrivals, the A00 aluminium ingot spot price has registered a further decrease...
The US dollar registered growth for a second consecutive trading day last Friday after it was reported that the US and Canada ended trade negotiations without any agreement. The greenback is on track to end the month of August on a positive note, up about 0.6% amid trade tensions. It has advanced in four of the last five months, gaining nearly 9%. Base metals traded with pressure. LME aluminium closed Friday’s trading at US$ 2112 per tonne. The contract then slid overnight after an initial gain, to a low of US$2,116 per tonne driven by a strengthened US dollar. LME aluminium is expected to trade at US$2,105-2,135 per tonne today. As on August 31, LME aluminium cash (bid) price stands at US$ 2111.50 per tonne, LME official settlement price stands at US$ 2112 per tonne; 3-months bid price...
The last week of August was marked by a falling US dollar index and a rising LME aluminium graph. August 27 was a holiday for LME and it started the week with a 1.26 % gain on August 28. The light aluminium contract traded within a range of US$ 2088 to US$ 2112 per tonne over the week. US dollar rebounded for the first time in five trading days on Friday August 31 and pushed the LME slightly lower. LME aluminium and SHFE contracts registered smaller drops compared with other base metals when the US dollar rebounded overnight. The benchmark aluminium price on Shanghai Metal Exchange started the week at US$ 2151 per tonne on August 27 and after reaching the height of US$ 2175 per tonne mid-week, the week was closed at US$ 2161 per tonne on August 31. As on August 31, LME aluminium cash...
India produced 915 thousand tonnes of primary aluminium during April-June quarter, an increase of 18.2 per cent. The rise in aluminium production was on account of better capacity utilisation and addition, according to a report by Care Ratings. The country’s aluminium consumption grew 15.1 per cent to 582 thousand tonnes in the mentioned period, on development of smart cities, rural electrification, focus on building renewable energy projects and growth in the transportation segment. Aluminium exports rose 15.9 per cent, while imports declined 6.9 per cent in June quarter, the report said. India exported the metal to South Korea, Turkey, Mexico, Italy, the US, Japan and Greece. Aluminium demand in India is projected to grow around 5 per cent to 2,200 thousand tonnes in FY19 driven by the...
The US dollar index rebounded for the first time in five trading days. LME aluminium and SHFE contracts registered smaller drops compared with other base metals when the US dollar rebounded overnight. LME aluminium contract closed a little higher at US$ 2127 per tonne yesterday. As on August 30, LME aluminium cash (bid) price stands at US$ 2126 per tonne, LME official settlement price stands at US$ 2127 per tonne; 3-months bid price stands at US$ 2148.50 per tonne, 3-months offer price is US$ 2149 per tonne; Dec 19 bid price stands at US$ 2185 per tonne, and Dec 19 offer price stands at US$ 2190 per tonne. The LME aluminium opening stock dropped to 1073050 tonnes. Live Warrants totalled at 781475 tonnes, and Cancelled Warrants were 291575 tonne. LME aluminium 3-months Asian Reference...
Shanghai Metals Market research found that some 730,000 tonnes of primary aluminium capacities across China closed during June-August because of high costs and relatively low prices of aluminium. Capacities belonged to five aluminium manufacturers, including Shaanxi Tongchuan Aluminum, Lanzhou Liancheng Aluminium, and Shandong Zouping Aluminium. Data also showed that about 900,000 tonnes of primary aluminium capacities have been permanently shut so far this year. According to SMM, the A00 aluminium ingot price has again extended a plunge today, August 31, by RMB 40 per tonne to stand at RMB 14770 per tonne. The spot discounts climbed RMB 10 per tonne and settled at RMB 70 to 30 per tonne. The average prices are expected to range from RMB 14750 per tonne and RMB 14790 per tonne today. In...
STAS has announced through a press release that it has purchased technologies from o.d.t. Engineering PTY. LTD finalized in April 2018. O.d.t. Engineering is a family owned Australian company specialized in the design and supply of casting and material handling equipment and production consumables for magnesium and aluminium casthouse. Since the late 1980’s, STAS has been supplying various equipment and solutions for the casthouse as well for the electrolysis, carbon and crucible shop areas in the aluminium industry. This transaction further enhanced its position as a world class supplier of innovative equipment for the aluminium sector and paved the way for new business opportunities. The transaction includes the capacity, without limitation, and a right to operate the business...
AMETEK Surface Vision, a world leader in automated online surface inspection solutions for the metals industry, will exhibit at SIS.EUROPE 2018 – Surface Inspection Summit, September 18-19, at the TEMA Pyramid, Aachen, Germany, The summit combines presentations from experts from the steel and non-ferrous metals industries with an exhibition by leading suppliers of surface vision and quality assurance systems. The summit offers a unique opportunity for users of surface inspection systems and providers of surface inspection products and services to come together at a single location. As a leading developer of software-enabled vision systems, AMETEK Surface Vision will showcase its latest in-line image processing technology for optimized surface inspection and monitoring as well as process...
The U.S. Commerce Department said on Wednesday that U.S. President Donald Trump approved targeted relief from quotas on steel and aluminium from some countries. The statement confirmed that Trump signed proclamations allowing relief for South Korea, Brazil and Argentina for steel and on aluminium from Argentina. “Companies can apply for product exclusions based on insufficient quantity or quality available from U.S. steel or aluminium producers,” the statement said. “In such cases, an exclusion from the quota may be granted and no tariff would be owed.” The tariffs on steel and aluminium imports, which were implemented in March for some countries, took effect for European Union, Canada and Mexico from June 1. On May 31, Commerce Secretary Wilbur Ross said that arrangements had been made...
The Aluminium Association of India (AAI) has reportedly drawn the attention of the Prime Minister’s Office (PMO) to the critical coal shortage situation. The government had decided to allocate more coal-bearing railway rakes to the electricity generation sector which in turn has affected the power-intensive aluminium industry. In a letter written to the PM’s Office, the aluminium industry has demanded the resumption of regular fuel supply as per the contracted quantity and also complained about the reduction of supplies without prior notifications. AAI points out that coal rakes allocated to the segment has not been more than 15 per cent since July 2017. In June 2018, it was less than 9 per cent. Out of 63 million tonnes of requirement, the aluminium sector had reportedly received 40...
The US dollar index slumped to the lowest in four weeks, as investors lost confidence in the dollar after the US and Mexico reached a preliminary agreement to change parts of the North American Free Trade Agreement (NAFTA). Base metals closed mixed. Short supplies of alumina overseas provided more support to LME aluminium than to SHFE aluminium. After closing the day’s trading at US$ 2116 per tonne, the contract jumped 1.13% overnight. Shanghai Metals Market expects LME aluminium to trade at US$2,150-2,185 per tonne today. As on August 29, LME aluminium cash (bid) price stands at US$ 2115 per tonne, LME official settlement price stands at US$ 2116 per tonne; 3-months bid price stands at US$ 2141 per tonne, 3-months offer price is US$ 2142 per tonne; Dec 19 bid price stands at US$ 2172 per...
The primary aluminium inventories across eight major consumption areas in China have extended gains over the week as arrivals rebounded and consumption in Guangdong weakened, Shanghai Metals Market found. As of today, August 30, stocks, including SHFE warrants, have grown by some 9000 tonnes from a week ago and 8000 from Monday to stand at 1.747 million tonnes. The below chart shows the current status of the inventories in major Chinese markets: In this background, the A00 aluminium ingot price has recorded a little plunge to stand at RMB 14810 per tonne. Till yesterday, the price was at RMB 14820 per tonne. This shows that today the ingot price has dipped by RMB 10 per tonne. The average prices are expected to range between RMB 14790 per tonne and RMB 14830 per tonne, with spot discounts...
A strong Conference Board (CB) Consumer Confidence index for August lowered the US dollar index by 0.07% last night. Most LME and SHFE base metals gained. Tight supplies and higher purchasing prices of alumina in the overseas market pulled up LME aluminium, which soared to an intraday high of US$2,142 per tonne. It rose 2.35% higher from Monday closing price of US$ 2088 per tonne and closed at US$2,133 overnight. With open interests up 1,921 lots to 626,000 lots, Shanghai Metals Market expects LME aluminium to trade at US$2,110-2,130 per tonne. As on August 28, LME aluminium cash (bid) price stands at US$ 2087.50 per tonne, LME official settlement price stands at US$ 2088 per tonne; 3-months bid price stands at US$ 2114 per tonne, 3-months offer price is US$ 2115 per tonne; Dec 19 bid...
According to Shanghai Metals Market, Weiqiao Group on Tuesday, August 28, planned to increase its September’s purchasing price for pre-baked anode by RMB 220 per tonne but met opposition from domestic producers who demanded higher prices. SMM expects Weiqiao to make a bigger upward adjustment by over RMB 300 per tonne from that in August. The final purchasing price is still under negotiation. On August 1, Weiqiao had raised prices by RMB 180 per tonne to RMB 3280 per tonne on cash and RMB 3315 per tonne on acceptance, after seven consecutive months of decline. SMM believes this rebound in prices could be because of a new round of restocking for the 2018/19 winter from this month. The average pre-baked anode spot price in China is, however, continuing at RMB 3315 per tonne with no sign of...
Russia has a plan to support world No.2 aluminum producer Rusal against U.S. sanctions put in place in April, including by purchasing the metal for state stocks, Industry Minister Denis Manturov told reporters on Tuesday. The U.S. Treasury Department placed Russian businessman Oleg Deripaska and Rusal, which he controls, on a blacklist that month, freezing the bulk of the company’s exports, paralyzing its supply chain and scaring off many customers. The sanctions caused major disruptions to global aluminum markets, although Rusal’s international customers were given until Oct. 23 to wind down business with the company. En+ Group, Deripaska’s holding company, is also under sanctions. Industry sources told Reuters in June that Rusal will take a major hit if sanctions are not lifted by late...
