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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Chinese customs released the import and export data on refined copper, primary aluminium, and other base metals in December 2017. According to the report China imported 6,659 tonnes of primary aluminium in December 2017. This registered a 90.40% drop YoY. The amount is however more than 6,173 tonnes of import in November 2017. For the full year 2017, China exported 116,234 tonnes of primary aluminium, which is also 41.22% less than the amount in 2016. As for exports of the primary aluminium are concerned, China exported 248 tonnes of the metal in December 2017, about 1% decline from the amount in December 2016. The amount is however, more than 126 tonnes of aluminium exported in November 2017. For the full year 2017, China exported 14,315 tonnes of primary aluminium, a drop of 15.35% YoY....
According to news published by Reuters and reported by China’s National Bureau of Statistics (NBS), Henan province produced more aluminium than Shandong for the first time since 2011, becoming the country’s top aluminium producing region in 2017. The province produced 12.12 million tonnes of aluminium in 2017, according to NBS data. Shandong, home of China Hongqiao Group and Xinfa Group, churned out 10.67 million tonnes of aluminium last year. Paul Adkins, managing director of consultancy AZ China, said: “Henan province is the alma mater of the aluminium industry in China. The first smelter was up in Fushun [in China’s northeastern Liaoning province] but the aluminium industry grew over decades in Henan.” Last week data showed China’s primary aluminium production in December stood at 2.71...
A bullish LME aluminium outlook notwithstanding Indian primary aluminium producers are struggling to keep their profits intact. Reason- The spiralling cost of raw materials. From alumina to coal, coal tar pitch and caustic soda every key ingredient of aluminium making has become costlier and this has resulted in a total impact of US$744 per tonne (year-on-year) on overall aluminium production. The effects have been such that the gains from LME aluminium prices have got negated. Three of India’s top aluminium producers- Hindalco Industries, Vedanta, and Nalco are facing this challenge. “The LME price outlook for aluminium is bullish, but input costs are a pain for the producers,” noted Nalco CMD and Aluminium Association of India (AAI) President TK Chand. According to AAI data, alumina...
China’s social inventory of primary aluminium including SHFE warrants stood at 1.77 million tonnes on Thursday January 25, down 19,000 tonnes from a week ago, SMM data showed. This is due to restocking ahead of the Chinese New Year holiday in mid-February. This has moved the domestic market lifting the average A00 ingot prices to RMB 14,550 per tonne. This is a major gain in the second half of the month of January. The prices are expected to move within a range of RMB 14,530-14,570. Spot discount will range within RMB 140-100 per tonne today. Among the domestic markets, A00 price in South China market remains the highest at RMB 14,605 per tonne. Details of aluminium inventory in the major Chinese cities as on January 25 are as follows: Average prices of aluminium alloys have registered a...
The upward momentum in LME aluminium prices has slowed down. The light metal put up a poor performance yesterday in comparison with other base metals and closed marginally up at US$2,216 per tonne after testing support at US$2,250 per tonne on Wednesday, January 24. LME aluminium has fallen by 1.9 per cent since it reached its monthly highest at US$2,256 per tonne in January this year. Shanghai Metals Market (SMM) predicts that LME aluminium will trade at US$2,215-2,260 per tonne range on Thursday, January 25. SME and SHFE Aluminium Price Trend The benchmark aluminium price on Shanghai Metal Exchange has risen from US$2,257 per tonne on January 24 to US$2,302 per tonne on January 25. On Shanghai Futures Exchange, open interest on aluminium contracts went down yesterday to 759,552 lots-...
Aluminium Bahrain B.S.C. (Alba), the home-base for Line 6 Expansion Project, announced the launch of Phase III of its company-wide, cost reduction programme Project Titan with the aim to reduce cash-cost by US$ 60 per metric tonne of aluminium and step-up its production capacity to 1,000,000 metric tonnes per annum by end of 2018. Project Titan Phase III, aims to optimize the Company’s operational costs, boost Value-Added Sales as well as increase its production, is an integral part of Alba’s strategy for value-creation and sustainable operations. Explaining further, Alba’s Chief Executive Officer Tim Murray said: “Preparation is key if we are to seize the right opportunities in the future. By stretching our limits via Phase III of Project Titan, our resilience will allow us to improve...
LME aluminium dropped for the second day in a row even after dollar index touched 3-year low on broad-based weakness. The light metal contract came down from US$2,235 per tonne on Monday, January 22, to close at US$2,213.50 per tonne on Tuesday, January 23. Shanghai Metals Market analysis suggests that LME aluminium will trade at US$2,205-2,245 range on Wednesday, January 24, with support at the moving averages. As on January 23, LME official cash buyer aluminium price (Bid Price) stands at US$2,213 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,213.50 per tonne, 3M Bid Price is US$2,217 per tonne, 3M Offer Price is US$2,218 per tonne, Dec1 Bid Price is US$2,262 per tonne, and Dec1 Offer Price is US$2,267 per tonne. LME aluminium opening stock stands at 1086200...
UC RUSAL announces that it will invest around USD 250 million to implement Eco-Soderberg technology at the Company's smelters between 2018 and 2022, a press release from the company confirms. The transition involves a number of engineering activities, like the construction two-stage gas-cleaning plants, the implementation of an automated system to supply raw materials to reduction cells and automation systems, high-performance innovative system for gas removal from reduction cells, and the mechanisation of labour-intensive processes. The new system for gas removal from the reduction of cells increases the gas removal efficiency to 97.5% and reduces emissions by 3.5 times, thus bringing out the environmental efficiency of the Eco-Soderberg technology to pre-baked anode technologies. The...
Buoyed by events in China, the aluminium market is expected to see rapid growth in 2018, according to global energy, chemicals, renewables, metals and mining research and consulting group Wood Mackenzie (WoodMac). In its latest aluminium report, the company highlighted that China supply reforms, the possible capping of future growth in Chinese smelting capacity additions, trade cases against Chinese exports of semi-finished products, and the direction of premia would be stand-out factors that would shape the trajectory of prices and the global aluminium market balance. “Aluminium premia experienced a volatile 2017, led by large swings in US Midwest quotes. US tax cuts and the promise of a boost in infrastructure and defence spending kept premia at elevated levels. Moreover, a rising...
A large wildfire in Southland is threatening electricity supply to the country's aluminium smelter. The fire at Tiwai Peninsula near Bluff burned through the night after it began just after 7pm yesterday. The fire has now claimed 100ha of native scrub. Nearly a dozen fire crews have been battling the blaze as well as two aircraft using night vision googles because of the proximity of the smelter. Image Source: www.stuff.co.nz Fire and Emergency southern shift communications manager Brent Dunn said the fire was still posing problems for the smelter. "There is still a threat to the overhead transmission lines. The fire is still active but at this stage it is being well managed," he said. Last night the fire was 100m from the main powerlines that run to the smelter, and 400m from the smelter...
Nigeria signed Renewed Share Purchase Agreement with UC Rusal for the takeover of the Aluminium Smelter Company of Nigeria (ALSCON). The agreement was signed by the two parties in Abuja on Friday, January 19. The Minister of Mines and Steel Development, Dr Kayode Fayemi, said that the Federal Government still retains 20 per cent equity in the Aluminium Smelter Company of Nigeria (ALSCON). The Permanent Secretary, Ministry of Mines and Steel Development, Dr Muazu Abdullahi; Minister of State for Mines and Steel Development, Mr. Abubakar Bawa Bwari; the CEO/Member of the Board of Directors UC Rusal, Mr. Vladislav Soloviev; the Managing Director of ALSCON, Mr. Dmitry Zavyaiov; and Head of Legal, UC Rusal, Mr. Piter Maxsimov, were present at the ceremony.
LME aluminium dropped marginally on the first trading day of the week. The light metal contract came down from its last week’s close at US$2,256 per tonne to close at US$2,235 per tonne on Monday, January 22. Shanghai Metals Market analysis suggests that LME aluminium will remain strong and trade at US$2,220-2,260 range on Tuesday, January 23. As on January 22, LME official cash buyer aluminium price (Bid Price) stands at US$2,234 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,235 per tonne, 3M Bid Price is US$2,238 per tonne, 3M Offer Price is US$2,239 per tonne, Dec1 Bid Price is US$2,282 per tonne, and Dec1 Offer Price is US$2,287 per tonne. LME aluminium opening stock stands at 1088425 tonnes, total Live Warrants is 839225 tonnes and Cancelled Warrants...
LME aluminium managed to hold grounds as it registered a must awaited gain to stand at US$ 2,256 per tonne on Friday January 19 from 2,225 per tonne on Thursday January 18. Shanghai Metals Market analysis sees LME aluminium trading at $2,200-2,230 per tonne today, after the historical data showed a dip in LME aluminium prices following US government shutdowns from 1990. As on January 19, LME official cash buyer aluminium price (Bid Price) stands at US$ 2255per tonne, cash seller & settlement aluminium price (Offer price) is US$ 2256per tonne, 3M Bid Price is US$ 2253per tonne, 3M Offer Price is US$ 2254 per tonne, Dec1 Bid Price is US$ 2298 per tonne, and Dec1 Offer Price is US$ 2303 per tonne. LME aluminium opening stock stands at 1091850 tonnes, up from last closing. Total Live Warrants...
An additional hydro power unit is set to bring in more benefits to Ghana’s Volta Aluminium Company (VALCO). The 75 MW unit will help VALCO procure power at a competitive rate of $0.035/kwh in the first quarter of the next financial year. The cost advantage will expectedly allow the primary aluminium company to add one more pot-line to its current one pot line-equipped production facility, which churns out 40,500 tonnes of the metal. According to the Select Committee on Mines and Energy on the Annual Budget Estimates report of the Ministry of Energy for the year ending December 31, 2018, the expansion will result in increase in revenue and payment of Value Added Tax to government from $79 million to $150.75 million and $7.6 million to $16.1 million per annum respectively. The production...
China's Ministry of Industry and Information Technology (MIIT) asked Chinese aluminium firms to have replacement capacity ready by end-2018. This notice was directed to firms having permits to replace capacity closed over the past seven years. According to the MIIT statement on its website, the ruling is applicable to companies producing molten aluminium or aluminium ingots. It is also applicable if they are replacing capacity internally or via mergers and acquisitions. As a part of Beijing's supply side reforms and environmental shutdowns, China closed 3 million tonnes to 4 million tonnes of illegal smelting capacity in 2017. Government has allowed companies with legal but outdated production are entitled to replace their capacity with more modern facilities, on condition that they...
After three consecutive drops, A00 ingot price graph is registering some upward movement. According to Shanghai Metals Market, average A00 ingot price registered some gain today to stand at RMB 14450 per tonne. The prices are expected to move within a range of RMB 14,430-14,470. Spot discount will range within RMB 220-180 per tonne today. Aluminium ingot prices registered gain in all individual markets in China. In the North China market A00 ingot prices dropped to RMB 14,465 per tonne today. It is noteworthy that, according to data from the state statistics bureau of China, published on Thursday January 18, the country produced 2.71 million tonnes of aluminium last month, down 1.8% YoY. Full-year output in 2017 was 32.27 million tonnes, up 1.6% from 2016. This has generated moderately...
Triple-listed diversified miner South32 on Wednesday reported that, the company had achieved its guidance for all its operations during the December quarter. Its manganese and aluminium operations, in particular, exceeded expectations, owing to strong market demand. South32 also managed to deliver another production record at its Mozal Aluminium operation in the second half of 2017. Despite a power fault in November 2017, which impacted 36 pots; South Africa Aluminium remained on track to increase production in 2018. Mozal Aluminium’s shipment increased by 1% to a record 137,000 tonne in the second half of 2017, as the smelter continued to operate at its maximum technical capability. Total sales volume increased by 10% as the inventory position returned to normal levels. The aluminium...
LME aluminium managed to hold grounds as it registered a moderate gain to stand at US$ 2,225 per tonne on Thursday January 19 from 2,187 per tonne on, Wednesday January 18. Shanghai Metals Market analysis suggests that LME aluminium will stay range-bound at US$2,220-2,250 per tonne on Friday, January 19. As on January 18, LME official cash buyer aluminium price (Bid Price) stands at US$ 2,224per tonne, cash seller & settlement aluminium price (Offer price) is US$ 2,225per tonne, 3M Bid Price is US$ 2218per tonne, 3M Offer Price is US$ 2218.50 per tonne, Dec1 Bid Price is US$ 2,263 per tonne, and Dec1 Offer Price is US$ 2268 per tonne. LME aluminium opening stock stands at 1090875 tonnes, down from last closing. Total Live Warrants is 842625 tonnes and Cancelled Warrants 248250 tonnes. The...
