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
Base metals saw mixed trading on higher US dollar price, but LME aluminium went up slightly. LME aluminium received support and closed at US$ 2319.50 per tonne on May 16 from US$ 2313 per tonne on previous closing. After that the contract dipped to a low of US$2,302 per tonne during the European trading session last night, but closed slightly higher at US$2,311.5 per tonne. As seen by Shanghai Metals Market, the contract is likely to trade rangebound at US$2,280-2,320 per tonne today. As on May 16, LME aluminium cash (bid) price stands at US$ 2319 per tonne, LME official settlement price stands at US$ 2319.50 per tonne; 3-months bid price stands at US$ 2312per tonne, 3-months offer price is US$ 2312.50per tonne; Dec 19 bid price stands at US$ 2260 per tonne, and Dec 19 offer price stands...
At Asia Metals Seminar, jointly organised by Shanghai Metal Market, Bloomberg and HKEX on Tuesday, May 15, 2018, Ian Roper, general manager of SMM Singapore was of opinion that SHFE aluminium prices would likely to remain on the cost curve this year, while alumina prices would be dependable on the recommencement of Hydro’s Alunorte refinery. This year until May, China has exported around 300,000 tonnes of alumina, according to SMM. On Wednesday, May 16, analyst of Macquarie Bank Lynn Zhao shared her aluminium market forecast at the seminar saying that global aluminium market might undergo a deficit in 2021 and 2022 but the surplus will come from China’s continuous build-up of capacity. Added to this, she also opined that winter cuts in China this year are going to leave some impact on the...
Norwegian aluminium and renewable energy company Norsk Hydro ASA’s wholly-owned subsidiary Hydro Energi AS has signed a long-term power contract with a Swedish wind power company Blakliden Fäbodberget Wind AB for an annual baseload supply of 0.66 terawatt hours (TWh) in the period between 2022 and 2041. Blakliden Fabodberget Wind AB is currently developing an onshore wind park located in northern Sweden, 30 per cent of which is owned by Vattenfall and the rest 70 per cent by PKA Funds and Vestas. The park, with an installed capacity of producing 350 MW is also planning to enhance to around 1.1 terawatt hours (TWh) annually when done. The newly signed contract between Hydro Energi AS and Blakliden Fäbodberget Wind AB is going to contribute to the power supply to Hydro’s aluminium plants in...
LME aluminium received support and rebounded to close at US$ 2313 per tonne on May 15 from US$ 2285.5 per tonne on previous closing. After that it fell to a low of $2,274 per tonne last night. The contract is expected to trade range bound with downward room today as the US dollar strengthened and rebounded to a four-month high of 93.46, and closed at 93.25 last night. The pickup in trading volumes at the London Metal Exchange (LME) following years of stagnation is going to be a common topic of discussion during this week’s LME Week Asia conference in Hong Kong, industry’s largest event in Asia this week. It was the U.S. sanctions against Rusal that drove the trading frenzy in the LME aluminium contract. As on May 15, LME aluminium cash (bid) price stands at US$ 2312 per tonne, LME...
With local downstream consumers having keen interest to purchase aluminium at given stable prices, Guangdong province in China saw a swift growth in overall trading on Tuesday, May 15, 2018, learned Shanghai Metal Market. In this background, the average A00 aluminium ingot price did not miss to grab the opportunity to witness a hike again on May 16, 2018, to close at RMB 14640 per tonne from RMB 14570 per tonne on May 15, 2018. The prices are expected to range between RMB 14620 per tonne and RMB 14660 per tonne, with spot discounts to settle at RMB 90 to RMB 50 per tonne. While in East, the aluminium ingot price rose from RMB 14570 per tonne to RMB 14630 per tonne; in South and North, the prices surged from RMB 14575 per tonne to RMB 14655 per tonne and RMB 14555 per tonne to RMB 14625...
According to news published by Reuters, aluminium production in China increased to its highest level on a daily basis since June as higher aluminium prices encouraged producers to increase output. China’s aluminium production reached 2.77 million tonnes in April, an increase of 1.1 per cent from the same period last year. That equates to 92,300 tonnes per day, the highest since June last year and up from 89,500 tonnes in March, which was one day longer, according to Reuters calculations based on National Bureau of Statistics data In the first four months of 2018, China produced 10.89 million tonnes of aluminium, up 0.2 percent from the same period last year, the data showed. Production of 10 nonferrous metals - including copper, aluminium, lead, zinc and nickel – increased 3.1 percent to...
National Aluminium Company (Nalco), a navratna firm under Union Mines of Ministry, sets a goal to achieve revenue of INR 93.5 billion from operations in FY19, 15 per cent higher than the previous financial year. The company’s chairman and managing director Tapan K Chand has signed off on a memorandum of understanding (MoU) with the ministry, represented by Anil Gopishankar Mukim, secretary of Union Mines Ministry on Monday, May 14, 2018. The MoU has been formulated as per the guidelines of the Department of Public Enterprise and finalised after discussions with the inter-ministerial committee as well as the Ministry of Mines, setting a target of 2.1 million tonnes of alumina production with 100 per cent utilisation of capacity and optimum aluminium production target of 0.41 million...
According to Shanghai Metal Market report, spot aluminium inventories in Guangdong province in China plunged 16,000 tonnes on Monday, May 14, 2018, from a week ago with fewer deliveries. Inventories declined, owing to the rise in production of molten aluminium and as busbars in newly added aluminium capacities utilised more aluminium. The SHFE 1805 contract rose from lows of RMB 14,505 per tonne to RMB 14,535 per tonne. While in East China, transactions of cargoes with May invoices were heard at RMB 14,460 per tonne to RMB 14,510 per tonne with discounts of RMB 30 to RMB 20 per tonne against the SHFE 1805 contract, transactions in Wuxi and Hangzhou hovered at RMB 14,460 per tonne to RMB 14,510 per tonne and RMB 14,480 per tonne to RMB 14,530 per tonne respectively. In Guangzhou market...
LME aluminium gained 1.82% after touching a low of US$2,263.5 per tonne at one point last Friday.The metal surged to a high of US$2,325 per tonne last night with support from calm US-Sino trade tension. Benchmark aluminium price on London Metal Exchange increased to close at US$ 2285.50 per tonne on Monday, May 14.SMM expects the metal to hover at US$2,290-2,330 per tonne today. As on May 14, LME aluminium cash (bid) price stands at US$ 2285 per tonne, LME official settlement price stands at US$ 2285.50 per tonne; 3-months bid price stands at US$2295 per tonne, 3-months offer price is US$ 2296 per tonne; Dec 19 bid price stands at US$2250 per tonne, and Dec 19 offer price stands at US$ 2255 per tonne. The LME aluminium opening stock stood at 1259300 tonnes. Live Warrants totalled at...
According to a source, both Glencore and UC Rusal have urged the London Metal Exchange to temporarily lift its suspension on Rusal’s aluminium, followed by an extension of the sanctions deadline on Russian aluminium companies. The US Treasury Department had extended the sanctions deadline on Rusal until October 23, 2018, and said it would even consider lifting the sanctions if Rusal’s major shareholder Oleg Deripaska ceded control of the company. The extension was issued late April and effectively meant that aluminium produced and sold by Rusal until October 23, 2018, was free of US sanctions, so long as the deal to buy was signed before they were imposed on April 6. Same is the case with Swiss-based mining giant Glencore which has a seven-year deal to buy aluminium from Rusal between...
Aluminium Bahrain B.S.C. (Alba), soon to-be the world’s largest single-site aluminium smelter, held its first Stakeholder Exhibitions Meeting (SEM) for its Line 6 Expansion Project today, 13 May 2018 at the Awal Ballroom, Gulf Hotel, Bahrain. In line with the requirements of the Performance Standards of the International Finance Corporation (IFC), a World Bank affiliated lending organisation, the SEM was held to give all stakeholders an update on the Line 6 Expansion Project as well as a summary of the Environment and Social Impact Assessment (ESIA) for this Project. Representatives of the Government and Ministries of Bahrain, Non-Government Organisations (NGOs) and Civil Society Organisations were the key invitees for the SEM. Alba’s Executive Management Team led by its Chief Executive...
According to a Shanghai Metal Market report, an incessant growth in aluminium shipments and a constant rise in consumption in some of the major Chinese markets like Wuxi and Foshan drove a further downfall in primary aluminium inventory on May 14, 2018, to close at 2.15 million tonnes, as against 2.196 million tonnes on Thursday, May 10, 2018. This indicates that the inventory was down 42,000 tonnes from Thursday, May 10, 2018, and 56,000 tonnes from 2.21 tonnes on Monday, May 7, 2018. Some of the major Chinese cities also witnessed a plunge in inventory, such as in Shanghai, the inventory fell to 452,000 tonnes; in Nanhai, Foshan, and Guangdong, it dipped to 377,000 tonnes and in Gongyi and Henan, it sank to 198,000 tonnes. More details are as follows: The average A00 aluminium ingot...
LME aluminium touched a low of US$2,263.5 per tonne at one point during the European trading session last Friday. Benchmark aluminium price on London Metal Exchange fell to close at US$ 2273.50 per tonne on Friday, May 11 from US$2327 per tonne on Thursday May 10. SMM expects LME aluminium to trade at US$2,260-2,300 per tonne today. As on May 11, LME aluminium cash (bid) price stands at US$ 2272.50 per tonne, LME official settlement price stands at US$ 2273.50 per tonne; 3-months bid price stands at US$2274 per tonne, 3-months offer price is US$ 2275 per tonne; Dec 19 bid price stands at US$2218 per tonne, and Dec 19 offer price stands at US$ 2223 per tonne. The LME aluminium opening stock stood at 1264250 tonnes. Live Warrants totalled at 860700 tonnes, and Cancelled Warrants were 403550...
Emirates Global Aluminium’s (EGA) stock market listing is likely to slip to 2019 because of turmoil in global aluminum markets after the United States imposed sanctions on Russian aluminum group Rusal, three sources familiar with the deal said. “The IPO (initial public offering) is delayed to 2019 due to market conditions,” one of the sources said. EGA, which produces 2.6 million tonnes of cast metal a year and is the third-largest producer of primary aluminum outside China, announced plans to float last year. But aluminum prices have been volatile since Washington, in response to what it called “malign activities” by Russia, imposed sanctions on Rusal and shareholder Oleg Deripaska. Benchmark prices on the London Metal Exchange CMAL3 surged to their highest in seven years. They dropped...
Leading global aluminium producer UC RUSAL announced results for the three months ended 31 March 2018. The company’s recurring net profit increased 22.4% to $531 million in Q1 2018, from $434 in the same period last year. Revenue in the first quarter of 2018 was $2,744 million as compared to $2,297 million for the same period of 2017 following the growth in the LME aluminium prices. Adjusted EBITDA rose 20.4% to $572 million as compared to $475 million for the same period of the prior year. Revenue from sales of primary aluminium and alloys stood at $2,245 million in the first quarter of 2018, as compared to $1,920 million in the first quarter of 2017, primarily due to 19.3% increase in the weighted-average realized aluminium price per tonne. Revenue from sales of alumina increased 25.4%...
According to an SMM report, overall trading across spot aluminium markets in east and south China turned active on Thursday May 10 as downstream consumers stepped up procurement and boosted purchasing. The SHFE 1805 contract rose to a high of RMB 14,545 per tonne from a low of RMB 14,500 tonne in the morning. SHFE 1807 contract is expected to trade within a range at RMB 14,600-14,770 per tonne. Spot prices are seen at a discount of RMB 20 per tonne to a premium of RMB 20 per tonne. China has registered a rise in prices of A00 aluminium ingot prices today. Primary aluminium ingot price also increased across all individual markets. Average A00 Aluminum Ingot prices increased from RMB 14520 per tonne yesterday to stand at RMB 14,590 per tonne today on May 11. The prices are expected to range...
LME aluminium surged high during yesterday’s trading and closed at US$2,327 on Thursday May 10, from US$2295 per tonne on Wednesday May 9. With a surge in positions, LME aluminium fluctuated significantly and closed at a low level overnight. As shorts are in a more advantageous position than longs, Shanghai Metals Market analysis expects LME aluminium to test support of US$2,300 per tonne at the 20-day moving average today with a trading range at US$2,300-2,340 per tonne. As on May 10, LME aluminium cash (bid) price stands at US$ 2325 per tonne, LME official settlement price stands at US$ 2327 per tonne; 3-months bid price stands at US$2324.50 per tonne, 3-months offer price is US$ 2325.50 per tonne; Dec 19 bid price stands at US$ 2213 per tonne, and Dec 19 offer price stands at US$ 2218...
Alcoa Corporation and Rio Tinto, supported by technology giant Apple, will develop and commercialise a new aluminium smelting process that eliminates all direct greenhouse gas emissions from the traditional smelting process. Alcoa and Rio Tinto are forming Elysis, Montreal-based joint venture company, to further develop the new process with a technology package planned for sale beginning in 2024. Alcoa and Rio Tinto will invest $55 million (CAD) cash over the next three years and contribute specific intellectual property and patents. Rio Tinto chief executive J-S Jacques said: “This is a revolutionary smelting process that can deliver a significant reduction in carbon emissions. It builds on the key role aluminium has to play in driving human progress, by making products infinitely...
