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 mining conglomerate Vedanta Resources has reported rising cost pressures despite an increase in annual profits on the back of higher commodity prices. As announced on May 5, 2018, the company, controlled by Indian tycoon Anil Agarwal, witnessed a 21 per cent rise in consolidated profit-after-tax (PAT) at INR 13,692 crore in the financial year 2017 to 2018 ended on March 31, 2018, higher from INR 11,319 crore in FY2016-17. Earnings before interest, tax, depreciation, and amortisation rose 27 per cent to close at US$4.1 billion, while revenue jumped 3 per cent to US$15.4 billion in FY2017-18. Despite, the London-listed company has reportedly experienced higher costs pressures, particularly in aluminium business. In this respect, Kuldip Kaura, company’s acting chief executive said in a...
LME aluminium stood rangebound and closed lower at US$ 2265.50per tonne on May 22 Tuesday from US$ 2278.5 per tonne on previous closing. The US dollar index dipped from its five-month high to close at 93.59 last night after US-Sino trade tension eased down. Base metals saw mixed trading overnight. According to Shanghai Metals Market LME aluminium lost upward momentum and dipped to a low of US$2,256.5 per tonne overnight. As alumina prices continued to fall, LME aluminium is expected to weaken further and trade at US$2,245-2,280 per tonne today. As on May 22, LME aluminium cash (bid) price stands at US$ 2265 per tonne, LME official settlement price stands at US$ 2265.50 per tonne; 3-months bid price stands at US$ 2273 per tonne, 3-months offer price is US$ 2274 per tonne; Dec 19 bid price...
According to data updated by Shanghai Metal Market, spot aluminium discounts stood firm and thus, traders and downstream consumers in the spot aluminium market made stable procurements in east China on Tuesday, May 22, 2018. SHFE 1806 contract also traded weakly range-bound in the morning. Transactions in east China stood at RMB 14590 per tonne to RMB 14600 per tonne in Shanghai with discounts settled at RMB 80 to RMB 70 per tonne against the SHFE 1806 contract. In Wuxi and Hangzhou, transactions were mostly heard at RMB 14590 per tonne to RMB 14600 per tonne and RMB 14610 per tonne and RMB 14630 per tonne respectively. In Guangdong, on the other hand, transactions were mostly heard at RMB 14600 per tonne to RMB 14610 per tonne with Guangdong-Shanghai price spreads at RMB 10 per tonne....
Vimetco Group, which owns 84% stake in Alro, and controlled by Russian investor Vitaliy Machitski, is exploring strategic options for a potential decrease of its ownership stake in Romanian aluminium producer Alro Slatina. “The Company has been informed by its majority shareholder – Vimetco N.V., which currently holds 84.1898% of the Company's share capital (Vimetco) – that Vimetco is exploring strategic options for a potential decrease of its ownership stake in the Company and is reviewing any available options depending on market conditions, including a secondary public offering of shares on the Bucharest Stock Exchange,” Alro said. The review is ongoing and no decision has been yet made, according to the company. Further announcements will be made as and when a firm decision is made....
Australia's aluminium industry is a highly integrated sector of mining, refining, smelting and semi-fabrication centres. It has four major aluminium smelters- all operated by the biggest names in the global aluminium industry. Raw aluminium accounts for 19 per cent of the total exports of the country, according to 2016 data. Australia exports considerable amount of aluminium scrap to Japan. Japan alone imported 397711 tonnes of aluminium in 2017, according to recent statistics. Other major countries where Australia exports its aluminium include South Korea (183501 tonnes), Vietnam (163469 tonnes), Thailand (103440 tonnes), the USA (99268 tonnes) and Taiwan (87506 tonnes). As the data shows, in H2 2017, Australia exported 567848 tons of aluminium globally. The aluminium export delivered...
Base metals saw mixed trading on higher US dollar price, but LME aluminium went up slightly last week on the new of easing of sanction on Rusal. LME aluminium stood rangebound and closed lower at US$ 2278.5 per tonne on May 21 Monday from US$ 2297 per tonne on previous closing. According to Shanghai Metals Market, LME aluminium traded with momentum overnight and tested pressure at US$2,300 per tonne, as oil prices strengthened. The contract is likely to trade at US$2,360-2,300 per tonne today. As on May 21, LME aluminium cash (bid) price stands at US$ 2278 per tonne, LME official settlement price stands at US$ 2278.50 per tonne; 3-months bid price stands at US$ 2279.50 per tonne, 3-months offer price is US$ 2280 per tonne; Dec 19 bid price stands at US$ 2253 per tonne, and Dec 19 offer...
According to a provincial government notice, the China-based company Henan Shenhuo Coal and Power Co, which is primarily engaged in ferrous metal processing, the coal mining, and deep processing electrolytic aluminium, is about to transfer more than 450,000 tonnes per year of aluminium smelting capacity to the southwestern province of Yunnan. The company has completed all the required transfer formalities as well, said the Yunnan Industry and Information Technology Commission on Monday, May 21, 2018. This represents the first phase of a 900,000 tonnes per year two-phase integrated hydropower and aluminium smelting project that Shenhuo is building in Yunnan, it said. The construction work is expected to begin on July 18 and production to start in a year. This move by Henan Shenhuo is...
Emirates Global Aluminium (EGA) announced that it has surpassed the 30 million tonnes cast metal landmark. The cast metal is used in construction, the automotive industry, electronics and other vital everyday essentials. In 2017, EGA produced 2.6 million tonnes of cast metal making it the third largest producer of primary aluminium outside China. The company experienced a sustained increase in cast metal production from 135,000 tonnes per year when production began. EGA’s Managing Director and Chief Executive Officer Abdulla Kalban said: “EGA is one of the UAE’s most important industrial giants, and a world leader in the global aluminium sector. Reaching this figure confirms that fact and validates our commitment to innovation that has led to a sustained increase in cast metal...
As reported by Shanghai Metals Market, China's inventory of primary aluminium, including SHFE warrants, shrank to 2.12 million tonnes as of Monday May 21 due to stable downstream consumption. The inventory was down 20,000 tonnes from 2.14 million tonnes on Thursday May 17 and down 32,000 tonnes from 2.25 million tonnes a week ago. The week-on-week decline was slower from 58,000 tonnes last Thursday. The most awaited peak season for downstream consumption seems to have arrived in China. The current inventory status in the major Chinese cities is as follows: Average A00 Aluminum Ingot prices in China are showing restraint at RMB 14,650 per tonne today. The prices are expected to range within RMB 14,630 to RMB 14,670 per tonne and spot discounts are expected to settle at RMB 100 to 60 per...
Russian oligarch Oleg Deripaska quit the boards of EN+ and its subsidiary Rusal on Friday. The action is expected to ease the sanctions on Rusal soon. As the US treasury yield climbed, the US dollar index rose 1.2% to close at 93.66 and reached a new high at 93.83 since December 2017 on Friday. Base metals saw mixed trading on higher US dollar price, but LME aluminium went up slightly. LME aluminium received support and closed at US$ 2297per tonne on May 18 from US$ 2280 per tonne on previous closing. Shanghai Metals Market expects LME aluminium to face resistance at US$2,300 per tonne level and the contract is likely to trade at US$2,250-2,295 per tonne today. As on May 18, LME aluminium cash (bid) price stands at US$ 2296.50 per tonne, LME official settlement price stands at US$ 2297...
Alcoa Corporation, the world’s sixth largest aluminium producer with headquarter in Pittsburgh, Pennsylvania, has started working towards resuming its south-west Indiana smelter by this summer and already hiring workers for it. The Pittsburgh-based company had announced the permanent shut at its Warrick operations smelter at the end of March 2016 on becoming incompetent after a drop in aluminium prices. 325 workers out of total 600 were laid off, while the rest either found new jobs or accepted severance or retirement packages. As Alcoa confirmed last year, the company would reopen three of its five smelter lines and contribute to about 275 new jobs at the complex, where rolling mill makes aluminium for food and beverage packaging. Kari Fluegel, Alcoa’s spokeswoman has reported to the...
While the USA is holding on to its 10 per cent import tariff on aluminium from all countries, every aluminium exporter to the US is fighting for exemptions from the tariff. The main issue of overcapacity in China and the export of subsidized aluminium to the US is taking a backseat while protectionist policy is creating supply concerns among the aluminium consumers in the US. We are trying to analyse the top aluminium (alloyed and non-alloyed) exporters to the US and their contribution to total import by the US for the year 2017. Canada remains the top aluminium exporter to the US contributing about 61% of the total import. Our data shows Canada exported about 2.36 million tonnes of aluminium to the US in 2017. The value of import stood at US$ 4.3 billion. Russia stood second with the...
Gervais Jacques, Managing Director – Atlantic, at Rio Tinto Aluminium, has been appointed Chair of the International Aluminium Institute (IAI), at the 93rd meeting of its Board of Directors in Hong Kong. Jacques has over 25 years experience across all facets of Rio Tinto's aluminium operations. Prior to his current role, Jacques was Chief Commercial Officer - Rio Tinto Alcan, responsible for all the commercial and marketing activities worldwide for bauxite, alumina and aluminium. As IAI Chair he succeeds Hilde Merete Aasheim, Executive Vice President of Hydro’s Aluminium Metal business, at the end of her two-year tenure. "The role of the Institute, representing the interests of the global aluminium industry, is more important than ever,” says Jacques. “I am grateful to my fellow Directors...
Aluminium-producing companies have moved the government to impose quantitative restrictions on imports as their demand to levy anti-dumping duty on cheap imports has not materialised for the last two years. Imports account for 54 per cent of total aluminium consumption in India, up from 52 per cent earlier. Satish Pai, Managing Director, Hindalco Industries, said levy of anti-dumping duty seems to be a time consuming effort and would not have much impact as most of aluminium imports are from ASEAN countries with which India has signed a free trade agreement. The industry, he said, is now demanding that the Government impose quantitative restrictions so that the interest of domestic producers are protected, particularly when the demand is picking after a gap of several years. The...
Alro S.A., one of the largest vertically integrated aluminium producers, by capacity in Europe, announces consolidated financial results for the first quarter of 2018. Its net profit stood at RON 125 million in Q1 2018, up 39% from RON 90 million in Q1 2017.The Group's turnover increased 10% to RON 749 million, from RON 681 million in Q1 2017. The Group reported primary aluminium sales of 33,000 tonnes in Q1 2018, up 6% from 31,000 tonnes in the same period last year. Processed aluminium sales stood at 27,000 tonnes in Q1 2018, down 7% from 29,000 tonnes in Q1 2017. "In the first quarter of 2018 we continued to implement our strong investment programme aimed at improving the output and products’ quality, while reducing the overall consumption rates",said Marian Năstase, Chairman of the...
Aluminium inventory had been plunging over a week but Thursday, May 17 broke all the record of the year 2018, as it witnessed the largest week-on-week decline. According to Shanghai Metal Market, China’s inventory of primary aluminium, including SHFE warrants, fell 58,000 tonnes to stand at 2.138 million tonnes on May 17, while on May 14; the inventory was at 2.15 million tonnes, dipped right from 2.196 million tonnes on Thursday, May 10, 2018. Most of the major Chinese cities had also witnessed a shrink in the inventories, with relatively low deliveries and stable shipments. This indicates there’s a balance maintained between production, deliveries and consumption all across the major cities in China. More details are as follows: However, against this positive sentiment in the market,...
LME aluminium prices faced pressure overnight as Chalco called for a lift of China's tariff on primary aluminium's export, as seen by SMM. Base metals mostly inched up last night, but LME aluminium fell nearly 1% as inventories grew. The metal closed at US$ 2280 per tonne on May 17 from US$ 2319.50 per tonne on previous closing. As on May 17, LME aluminium cash (bid) price stands at US$ 2279 per tonne, LME official settlement price stands at US$ 2280 per tonne; 3-months bid price stands at US$2260 per tonne, 3-months offer price is US$ 2260.50 per tonne; Dec 19 bid price stands at US$2205 per tonne, and Dec 19 offer price stands at US$ 2210 per tonne. The LME aluminium opening stock stood at 1249450 tonnes. Live Warrants totalled at 996875 tonnes, and Cancelled Warrants were 252575 tonne....
Shanghai Metal Market observed poor trading in East China early morning today, on 17 th of May, 2018, because of plunging demands for downstream aluminium, which in turn deterred the processors from purchases. Compared to South and Central China, processors in East China made a very few purchases on receiving fewer orders. Guangdong province, in contrast, witnessed encouraging trade as processors purchased on demand with stable orders. Some even purchased to stockpile for the future weekend as well. Owing to this overall positive sentiment in Chinese major markets other than the east, the SHFE 1806 contract has witnessed a jump to as high as RMB 14,845 per tonne on May 17, 2018, while on May 16 the SHFE 1806 contract was at the highest level of RMB 14755 per tonne. Smelters in east and...
