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
Aluminium Bahrain B.S.C. (Alba), the Bahrain-based international aluminium smelter, is progressing at full speed with the construction of its landmark Line 6 Expansion Project [Line 6 Smelter and Power Expansion Project], according to a statement issued by the Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa. The statement was made at the second quarterly meeting for this year, held on Wednesday, 9 May 2018 at Alba. Adding further, Shaikh Daij stated:“We are very pleased with the overall progress of Line 6 Expansion Project; to date, Line 6 Smelter exceeded 54% while Power Station 5 advanced 59% and Power Distribution System 87%. With the construction brimming on site in 2018, we remain committed to deliver the Project in a timely and safe manner.” During...
Followed by experiencing windfall gains from booming metal prices at LME, state-owned integrated aluminium complex Nalco now aims at improving its profitability further after Utkal D block becomes operational. Nalco was given two captive coal blocks – Utkal D and E – with a combined deposit of 200 million tonnes, out of which, the former is expected to start operating from the end of the year or beginning next year and reduce Nalco's aluminium production cost by 25 per cent by providing the necessary amount of coal as required energy, aiding company to save up to US$500 or INR 35,000 per tonne of aluminium churned out at Nalco’s 0.46 million tonne smelter at Angul. “Most of the statutory clearances for the block are in place and it will be a game changer for the company”, said TK Chand,...
Canadian Prime Minister Justin Trudeau is to make an announcement for aluminium project funding on Thursday, May 10, 2018, at Saguenay, along with Quebec Premier Philippe Couillard and Rio Tinto’s executives. The details of the project are not known yet other than the fact that it will start ahead of by-election call in Quebec region. This move by Justin Trudeau, however, could not avoid going through sharp criticisms from opposition parties. The latter is of the opinion that the Liberal Party is playing politics to influence the outcome of the impending vote in Chicoutimi-Le Fjord, a riding that has been vacant since Dec. 1, 2017. NDP MP Alexandre Boulerice also thinks that this upcoming aluminium project announcement with Rio Tinto has an indication of electoral opportunism, despite his...
After showing gain and closing at US$2384 per tonne on Tuesday May 8, LME aluminium closed down at US$ 2295 per tonne on Wednesday May 9. The metal surged to a high of US$2,370 per tonne from a low around US$2,280 per tonne overnight. Shanghai Metals Market expects it to test support at the five- and 20-day moving averages and trade at US$2,320-2,370 per tonne today. LME aluminium stocks declined to a low level of 2007 yesterday. According to news published by Reuters, as a result of an LME ban on Rusal metal, aluminium stocks "are back to the low levels of 2007, with only 864,000 tonnes left on warrant", Malcolm Freeman, CEO of KingdomFutures, wrote in a note. As on May 9, LME aluminium cash (bid) price stands at US$ 2293 per tonne, LME official settlement price stands at US$ 2295 per...
As shipments grew in some of the major Chinese markets like Wuxi and Foshan, China’s primary aluminium inventory again shrank from 2.21 million tonnes on May 7, 2018, to 2.196 million tonnes on Thursday, May 10, 2018, according to Shanghai Metal Market. On May 7, the inventory had risen from 2.2 million tonnes on May 2, 2018, however, plunged again on May 10 due to rising shipments. As a consequence, some of the Chinese cities also witnessed a shrink in their inventories, such as follows: On the other hand, according to the update from SMM, the average A00 aluminium ingot price dropped further to RMB 14520 per tonne on Thursday, May 10, 2018, from RMB 14560 per tonne on May 8, 2018. The prices are expected to range between RMB 14500 per tonne and RMB 14540 per tonne, with spot discounts...
The Future Aluminium Forum opened its door to industry delegates in Milan yesterday, May 8, at Hotel Michelangelo. The Forum intends to discuss what industry 4.0 means to the future of the aluminium industry and how it can assist in its quest for greater efficiencies. Delegates from major aluminium companies and associations are gathering at the venue to join this debate on applications of various Industry 4.0 architectures like AI, Internet of Things, cloud computing, data analysis etc to ; hear from experts and network with solution providers and industry peers. The Future Aluminium Forum discussions will highlight how Industry 4.0 and ‘smart manufacturing’ will revolutionise aluminium manufacturing and processing and analyse the benefits of implementing Industry 4.0 architecture in the...
LME aluminium opened higher after Early May Bank Holiday. Benchmark aluminium price on London Metal Exchange increased to close at US$ 2384 per tonne on Tuesday, May 8, from US$2316 per tonne on Friday May 4. LME aluminium is expected to trade at US$2,330-2,380 per tonne today. As on May 8, LME aluminium cash (bid) price stands at US$ 2382 per tonne, LME official settlement price stands at US$ 2384 per tonne; 3-months bid price stands at US$2362 per tonne, 3-months offer price is US$ 2363 per tonne; Dec 19 bid price stands at US$2293 per tonne, and Dec 19 offer price stands at US$ 2298 per tonne. The LME aluminium opening stock stood at 1297550 tonnes. Live Warrants totalled at 863950 tonnes, and Cancelled Warrants were 433600 tonne. LME aluminium 3-months ABR price is hovering low at...
London Metal Exchange was closed on Monday May 7 due to Early May Bank Holiday. Shanghai Metals Market expects LME aluminium to expand upwards along the 20-day moving average today with a trading range of US$2,320-2,370 per tonne. The benchmark aluminium price on Shanghai Metal Exchange increased from US$ 2288 per tonne on May 7 to US$ 2298 per tonne on May 7. The SHFE 1806 contract climbed up to a high of RMB 14,700 per tonne yesterday as lead, zinc and most ferrous metals gained. Downstream demand remains firm and the increase in inventory has more to do with latent inventory changes, including stocks at traders moving to major consumption markets. The SHFE 1807 contract climbed to a high of RMB 14,755 per tonne overnight as longs added their positions. It fell to a low of RMB 14,695...
Aluminium Bahrain B.S.C. (Alba) announced that its Line 6 Smelter exceeded more than 10 million work-hours without a single Lost Time Injury (LTI), a major Safety Milestone, by mid-April 2018. Commenting on this record achievement, Alba’s Chief Executive Officer Tim Murray said: “Safety is our best insurance policy. This milestone is truly a remarkable achievement by our Line 6 Smelter team (over 6,000 employees and contractors) and is a testament to the workers and contractors’ commitment to Alba’s Safety standards. I express my thanks to the Line 6 Smelter teams and look forward to attain higher Safety goals as we move ahead with Line 6 Expansion Project construction.” Alba has won international accolades for its strict adherence to local and international Safety standards, rigorous...
State energy giant Qatar Petroleum will offer 49 percent of its shares in Qatar Aluminium (Qatalum) for public offering. The move is “part of the State's plan to increase the participation of the private sector in economic activity and supporting an investment climate capable of attracting capital,” according to the compny. The necessary procedures and approvals are expected to be taken for listing on the Qatar Exchange during the last quarter of this year. Qatar Petroleum will also establish a holding company that will acquire Qatar Petroleum's stake in Qatalum. Qatalum, a jointly owned by the Norwegian company Hydro, produces about 645,000 tons per year of high quality aluminium. Qatalum uses the HAL275 system, an environmentally friendly, energy-efficient technology. Qatalum’s...
With a flourishing primary aluminium sector, Canada remains the top exporter of aluminium to the U.S. and the country is now rightfully negotiating on the 10% duty imposed on all aluminium imports. Canada is graced for a temporary period for further negotiation for a permanent exemption from the duties. Quebec, Canada’s aluminium hub with the presence of Alcoa, Rio Tinto Alcan and Alouette, three major aluminium players operating eight world-class primary smelters in the province and producing 2.9 million tonnes of primary aluminium, or 60% of total North American production. However, Canada is not only about the three primary players. Quebec in Canada is a province that house a number of innovative solution providers centering round the primary industry. We continue to focus on some of...
Most base metals rose as the US-China trade negotiations made some progress. LME aluminium increased 2.6 per cent and hit a two-week high, as seen by Shanghai Metals Market. Benchmark aluminium price on London Metal Exchange dropped to close at US$ 2316 per tonne on Friday, May 4, from the previous day's close at US$ 2349 per tonne. As on May 4, LME aluminium cash (bid) price stands at US$ 2315 per tonne, LME official settlement price stands at US$ 2316 per tonne; 3-months bid price stands at US$2306 per tonne, 3-months offer price is US$ 2307 per tonne; Dec 19 bid price stands at US$2255 per tonne, and Dec 19 offer price stands at US$ 2260 per tonne. The LME aluminium opening stock stood at 1310650 tonnes. Live Warrants totalled at 866775tonnes, and Cancelled Warrants were 443875 tonne....
Alcoa Corporation, the world’s sixth largest producer of aluminium with corporate headquarters in Pennsylvania, announced on Friday, May 4, 2018, that its Quebec smelter is ready to conduct mediated contract talks with the United Steelworkers union and has also notified provincial labour ministry about it. Alcoa, with an annual production capacity of 430,000 tonnes, has been operating at reduced output capacity by union co-workers since January 11, 2018, as the company had locked out its 1,030 unionised workers on contract expiry. Aluminium markets, on the other hand, were struggling for weeks when the United States slapped the Russian oligarch Oleg-Deripaska-owned UC Rusal with sanctions. However, the situation is now under control since when the US has extended the sanctions deadline to...
Mining conglomerate Vedanta Ltd. has announced its unaudited consolidated results for the fourth quarter of the financial year 2017-18, as well as the full financial year ended March 31, 2018. According to the results, the company has witnessed 22 per cent increase in year-on-year revenue closing at INR 92,923 crore and 13 per cent increase in quarter-on-quarter revenue to close at INR 27,630 crore. The increase was mainly on account of the ramp-up of capacities at Aluminium, record production from Zinc India and improved commodity prices partly offset by currency appreciation and lower sales at Iron ore. The firm has reported a 34 per cent rise in consolidated profit-after-tax (PAT) at INR 5,675 crore for the fourth quarter of FY2017-18, whereas, in the contemporary period last year, it...
LME aluminium surged high during yesterday’s trading and closed at US$2,349 on Thursday May 3, from US$2269 per tonne on Wednesday May 2. LME aluminium traded around the 20-day moving average overnight and we expect it to trade at US$2,260-2,320 per tonne today. As on May 3, LME aluminium cash (bid) price stands at US$ 2348 per tonne, LME official settlement price stands at US$ 2349 per tonne; 3-months bid price stands at US$2340 per tonne, 3-months offer price is US$ 2342 per tonne; Dec 19 bid price stands at US$2297 per tonne, and Dec 19 offer price stands at US$ 2302 per tonne. The LME aluminium opening stock stood at 1319300 tonnes. Live Warrants totalled at 871825 tonnes, and Cancelled Warrants were 447475 tonne. LME aluminium 3-months ABR price is hovering low at US$ 2325.36 tonne....
Century Aluminium Company, a global producer of primary aluminium, reported a net loss of $0.3 million for the first quarter of 2018. The adjusted net loss for the first quarter of was $3.5 million compared to adjusted net income of $24.8 million for the fourth quarter of 2017. Sales for Q1 2018 were $454.5 million compared with $433.8 million for the fourth quarter of 2017. Shipments of primary aluminium were 187,238 tonnes compared with 189,000 tonnes in the fourth quarter of 2017. Century reported adjusted EBITDA of $21.8 million in Q1 2018, from $60.2 million Q4 2017. The decrease was due to higher raw material costs, partially offset by higher LME and regional premiums. The company’s cash position at quarter end was $130.8 million and revolver availability was $160.9 million. Michael...
According to Shanghai Metal Market, China’s aluminium spot market witnessed a significant rise in trading, especially in Shanghai, Hangzhou, and Wuxi on Thursday, May 3, 2018. The reason was more and more traders wanted to stockpile aluminium due to tight market supply. Transactions in Guangdong, however, remained flat due to sluggish downstream demand. In Shanghai, while the transactions for cargoes with May invoices stood at RMB 14400 to RMB 14410 per tonne with discounts of RMB 50 to RMB 40 per tonne against the 1805 contract, in Wuxi and Hangzhou, the transactions were heard at RMB 14400 to RMB 14410 per tonne and RMB 14420 to RMB 14440 per tonne respectively. Most of the transactions were from traders since downstream demand remained low. Guangdong, on the other hand, had a quieter...
Although the average A00 aluminium ingot price witnessed a dip to RMB 14330 per tonne on 2nd of May, 2018 from RMB 14430 per tonne on 27th of April, it restored and secured a marginal growth to RMB 14390 per tonne just a day after i.e. on 3 rd of May, 2018. The price was up from May 2 but down from April 27, according to Shanghai Metal Market. The prices are expected to range between RMB 14370 per tonne and RMB 14410 per tonne, with spot discounts to settle at RMB 70 to RMB 30 per tonne. Amidst the oscillating phase on the face of Rusal’s sanctions and dicey availability of alumina for the production due to output cut at Hydro’s refinery, a little hike in A00 aluminium ingot price in China left a gust of positive sentiment in the market for the sellers, as well as for the producers. Major...
