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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Hindalco Industries Ltd., released standalone unaudited financial results for the quarter ended December 31, 2017. The company produced 323 thousand tonnes of aluminium in Q3 FY18. VAP (including Wire Rod) production stood at 123 thousand tonnes, up 3 per cent. Hindalco’s revenue increased 18.4 per cent to INR 11,023 crore for December quarter, led by macro factors, volumes and by-product realisation. The company reported net profit of INR 376 crore for the quarter ended December 31, 2017. EBITDA came in at INR 1,611 crore, an increase of 15 per cent compared to the previous year, driven by higher volumes in both businesses and supportive macros, partly offset by higher input costs. Revenue from aluminium business increased to INR 5,323 crore, led by higher sales of aluminium and...
The Saudi Arabian Mining Company (Ma’aden) published its consolidated financial and operating results for the year ending December 31, 2017. The company reported a strong profit growth driven by increased production and sales, improved commodity prices and tight cost control. Ma’aden produced 916k tonnes of primary aluminium in 2017, an increase of 5 per cent compared to last year. Net profit increased SAR 0.8 billion in 2017, from SAR 0.15 billion in 2016. EBITDA in 2017 rose 56 per cent to reach SAR 5.8 billion. Sales revenue jumped to SAR 12.1 billion, up 28 per cent YoY. Ma’aden President and CEO, Eng. Khalid Al Mudaifer said: “We generated strong financial results this year which demonstrated the benefits of Ma’aden’s robust business model as a low cost industry leader as we saw the...
Vedanta Resources has released both the production and financial results for Q3 FY2018 ended 31 December 2017. Vedanta reports 445,000 tonnes of aluminium production in Q3 FY2018, up 40% YoY and 11% QoQ as a result of complete ramp up at the Jharsuguda-II smelter following the ramp up in Balco II smelter in Q1. Production excluding trial run stood at 427,000 tonnes in Q3 FY2018 with an exit monthly run rate of 1.8 tpy. Jharsuguda-I has ramped up all the 228 pots affected by the April 2017 outage are fully ramped up and are currently operational. Jharsuguda-II has ramped up 2 potlines and in line-3, 193 pots are operational and will be fully ramped-up by Q4 FY2018. Line-4 continues to be under evaluation. Production cost for hot metal in Q3 FY2018 increased 36% YoY to US$ 1,945 per tonne,...
Israeli conglomerate Delek Group is weighing the prospect of building an aluminium smelting operation powered by natural gas. According to domestic media, the company is closing a feasibility study on a project that is expected to require a capital investment of roughly US$1.2 billion. Local reportage on the subject reveals that Delek’s majority owner Yitzhak Tshuva consulted with Minister of the Economy and Industry Eli Cohen late last week to discuss the project. The proposal anticipates a smelter that turns out 1 million metric tons per annum, powered by a captive natural gas power plant capable of producing up to 1,600 mW, which is roughly a tenth of Israel’s entire electrical production at present. Such a power plant would be Israel’s largest gas-fired power plant, consuming between...
Aluminium prices on London Metal Exchange hit a two-week low on Thursday, February 1, as worries grew stronger over rising stockpiles in China. Despite elaborate smelter capacity cuts Chinese market continues to remain in surplus, and this is likely to keep the lid on rising LME aluminium prices. The light metal yesterday closed at US$2,218 per, down from US$2,224.50 per tonne on Wednesday, January 31. Shanghai Metals Market (SMM) foresees pressure at the five and 10-day moving averages for the contract. It says LME aluminium is likely to trade at US$2,210-2,240 per tonne range on Friday, February 2. As on February 1, LME official cash buyer aluminium price (Bid Price) stands at US$2,217.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,218 per tonne, 3M Bid...
As Finance Minister Arun Jaitley starts to present Union Budget 2018 today at Parliament, Indian aluminium sector waits eagerly to see if its wishes and demands are fulfilled. The aluminium industry wants duty on essential raw materials of aluminium production like alumina and coal tar pitch to be reduced and policies to be implemented that would equate import duty on aluminium scrap with that on the primary metal. Here’s a list of wishes of the Indian Metals & Mining industry from Union Finance Ministry: 1) Decrease in basic customs duty on coking coal across grades 2) Decrease in export duty on iron ore above certain grade levels 3) Hike basic customs duty on aluminium scrap to protect domestic industry 4) Accelerate minerals exploration The aluminium industry (represented by Aluminium...
According to Shanghai Metal Market data, China’s social inventory of primary aluminium including SHFE warrants stood at 1.76 million tonnes on Thursday February 1, slightly down by 2,000 tonnes from a week ago. Logistics constraints have impacted some deliveries in January. However, SMM learned that the situation will gradually improve in February. Average Aluminum Ingot prices slightly dropped today to stand at RMB 14,160 per tonne. According to data released by the National Development and Reform Commission (NDRC) on Wednesday January 31, China’s production of 10 nonferrous metals amounted to 53.78 million tonnes in 2017, up 3% from a year ago. The annual growth was up 0.5 percentage point from the previous year. Aluminium output was up 1.6% to 32.27 million tonnes. The prices are...
Vedanta Limited has announced its unaudited consolidated results for the third quarter ended 31 December, 2017. The company has reported 19 per cent increase year-on-year in revenue in the fiscal third quarter. Mr. Kuldip Kaura, Chief Executive Officer, Vedanta Ltd, said: "We delivered a robust quarter with EBITDA significantly higher y-o-y and q-o-q, with our EBITDA margin remaining strong. Our ramp-up plans across our well invested assets are on track, and are delivering industry leading growth." The company’s aluminium production increased 40 per cent YoY in the third quarter ended 31 December, 2017, with an exit run-rate of 1.8 million tonnes per annum. Revenue increased to INR 24,361 crore on account of higher commodity prices, ramp-up at aluminium business, and higher volumes at...
Aluminium prices on London Metal Exchanges stayed flat with a marginal dip as global manufacturing growth provided support. Manufacturing activity in China and Japan expanded in January resulting in raised output and increased employment supporting a strong recovery in the Asian market. LME aluminium closed at US$2,224.50 per tonne on Wednesday, January 31, down from US$2,229 per tonne on Tuesday, January 30. Shanghai Metals Market (SMM) forecasts that LME aluminium may trade at US$2,195-2,220 per tonne on Thursday, February 1. As on January 31, LME official cash buyer aluminium price (Bid Price) stands at US$2,224 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,224.50 per tonne, 3M Bid Price is US$2,221 per tonne, 3M Offer Price is US$2,222 per tonne, Dec1 Bid...
Aluminium prices moved down by 0.53 per cent to INR 140.80 per kg in futures trade today as speculators reduced exposure amid easing demand in the spot market. Besides, a weak trend overseas weighed on prices. At the Multi Commodity Exchange, aluminium for delivery in January edged down by 75 paise, or 0.53 per cent, to INR 140.80 per kg in a business turnover of 3,510 lots. Likewise, the metal for delivery in February was trading lower by a similar margin to INR 140.85 per kg in 1,877 lots. Analysts said offloading of positions by participants due to slackened demand from consuming industries in the physical market and weak trend overseas, led to a decline in aluminium prices at the futures trade. Meanwhile, aluminium for delivery in three-month dropped USD 10 to USD 2,215 per tonne on...
Aluminium prices on London Metal Exchanges were lower on Tuesday, January 30, after the base metal complex registered a price correction from its recent gains. LME aluminium came down from US$2,251.50 per tonne (closing price on January 29) to close at US$2,229 per tonne yesterday. Shanghai Metals Market (SMM) forecasts that LME aluminium will test support at US$2,200 per tonne level and trade within a narrow range of US$2,220-2,250 per tonne on Wednesday, January 31. As on January 30, LME official cash buyer aluminium price (Bid Price) stands at US$2,228 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,229 per tonne, 3M Bid Price is US$2,225 per tonne, 3M Offer Price is US$2,226 per tonne, Dec1 Bid Price is US$2,272 per tonne, and Dec1 Offer Price stands at...
The difference between Japanese and South Korea spot aluminium premiums has reached $20.50/mt, the widest on record since S&P Global Platts launched its South Korean premium assessment in July 2015. On Wednesday, the Japanese spot import premium was assessed at $102-$104/mt plus London Metal Exchange cash, CIF Japan, while the South Korean spot premium was at $80-$85/mt CIF Busan. In recent history, the spread between the two premiums has typically averaged around $5/mt. The South Korean premium fell from $85-$90/mt CIF Busan a week ago due to increased exports of Chinese semi-finished products, such as coil and plates. This has compromised demand for P1020 aluminium ingot, sources said. Meanwhile, Japan's premium has stayed unmoved at $102-$104/mt plus LME cash CIF Japan this week....
SMM expects the fundamentals of the prebaked anode market to change in 2018, as it may turn to oversupply following a year of surging prices. The shift is being visible in January with a drop in prices and, extension of payment cycle and commissioning of new capacity. Prebaked anode prices in east China were down RMB 150 per tonne this month from levels seen in December, according to SMM data. Prices in February are also set to drop by over RMB 100 per tonne as supply of calcined coke became less tight. SMM has also observed that aluminium smelters are delaying their payment for prebaked anode for up to a month or more. This showed sellers’ willingness to increase delivery of prebaked anode. Another factor that is cutting down the need to procure such material from outside is the...
LME aluminium reversed its recent marginal losses and gained ground as global market sentiment improved ahead of U.S. President Donald Trump’s State of Union Address on Monday, January 29. The light metal contract rose from US$2,238 per tonne on Friday, January 26, to close at US$2,251.50 per tonne after night trading yesterday. However, pressure is building up at five-day, 10-day, and 20-day moving averages. So, Shanghai Metals Market thinks that LME aluminium may trade at US$2,210-2,260 per tonne on Tuesday, January 30. As on January 29, LME official cash buyer aluminium price (Bid Price) stands at US$2,251 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,251.50 per tonne, 3M Bid Price is US$2,257 per tonne, 3M Offer Price is US$2,258 per tonne, Dec1 Bid Price...
Aluminium traded at India’s Multi Commodity Exchange gained by 1.34 per cent on Monday, January 29, as demand picked up in the spot market and speculators built up fresh positions amid positive cues in the international market. MCX aluminium reached INR 143.50 per kg in futures. Price of aluminium for delivery in January edged higher by INR 1.90, or 1.34 per cent, to INR 143.50 per kg, in a business turnover of 479 lots on MCX. The light metal for delivery in February gained by INR 1.80, or 1.27 per cent, to INR 143.50 per kg in 410 lots. Market watchers were of the opinion that due to pick up in demand from end user industries in the spot market participants created fresh positions. Rising strength in other base metal markets overseas also influenced aluminium price movements at futures...
Hydro starts aluminium production at its technology pilot in Karmøy that aims at verifying the credibility of the world's most climate-and energy efficient aluminium technology in an industrial scale. Hilde Merete Aasheim, Executive Vice President for Hydro's Primary Metal business area confirms the news in his statement: "We're now producing aluminium in the technology pilot, and we are very excited that we can now start to use this technology at an industrial scale." This Hydro-developed technology will produce aluminium with 15 per cent less energy with the lowest CO2 footprint in the world. The technology pilot in Karmøy is expected to be a world leader in low energy consumption and high productivity. "Through the technology pilot we have developed the world's best electrolysis...
After showing an upward movement last week due to restocking ahead of the Chinese New Year holiday in mid-February, average aluminium A00 ingot prices in China has closed the week on a lower level at RMB 14450 per tonne. This week has started with a moderate gain and the average A00 ingot prices today stand at RMB 14,485 per tonne. The prices are expected to move within a range of RMB 14,480-14,490. Spot discount will range within RMB 150-110 per tonne today. Among the domestic markets, A00 price in South China market remains the highest at RMB 14,535 per tonne. Average prices of aluminium alloys have registered no change in any of the markets today despite the fluctuation in A00 ingot price. The market remains passive and there are fewer activities at the end of the month. SHFE aluminium...
LME aluminium remained almost unchanged over the weekend as dollar showed signs of reversal from its current lows. The light metal contract rose marginally from US$2,237.5 per tonne on Thursday, January 25 to close at US$2,238 per tonne on Friday, January 26. With the US dollar still staying in the negative territory after US GDP data release, commodity market is expected to see extended volatility in the near term. Shanghai Metals Market (SMM) forecasts that LME aluminium will trade in the range of US$2,230-2,270 per tonne on Monday, January 29. The support from the five-day and 10-day moving averages is likely to remain weak. As on January 26, LME official cash buyer aluminium price (Bid Price) stands at US$2,237 per tonne, cash seller & settlement aluminium price (Offer price) is...
