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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Rio Tinto has confirmed through a press release that it has received a binding offer from Liberty House to acquire Rio Tinto’s Aluminium Dunkerque smelter in northern France. The deal is finalised for $500 million, subject to final adjustments. Rio Tinto will launch a consultation process with employees, relevant European works councils and other stakeholders in relation to the bid. Rio Tinto expects to complete the sale of Aluminium Dunkerque by Q2 2018, on the completion of this consultation process. Commenting on the offer, Rio Tinto Aluminium chief executive Alf Barrios said “The binding offer for the sale of Aluminium Dunkerque represents the best option for the future development of the site while also delivering value for Rio Tinto as we continue to streamline our portfolio....
SMM has published the latest output data from the major Chinese producers of alumina and aluminium along with other base metals and report shows an increase in aluminium production month on month despite the winter capacity cut. SMM observes that despite the supply-side reform and winter cuts last year, recovered and newly-added capacity made up for the suspended capacity at Shandong Weiqiao, Shandong Xinfa, Xinjiang Xiwang, Xinjiang Jiarun and Inner Monglia Jinlian, keeping the output high in December. The following table shows the latest output for alumina and aluminium in December and a forecast for January. According to the preliminary data for aluminium production for the month of December, the output stands at 3 million tonne; up 1.7% from December 2016 and up 3.2% from November...
LME aluminium shows some positive gain after continuous drop and sees pressure at the five-day moving average and is expected to trade at $2,165-2,195/t. The light metal contract gained from US$ 2143.50 per tonne on January 9 to close at US$ 2159 per tonne on January 10. As on January 10, LME official cash buyer aluminium price (Bid Price) stands at US$ 2158.50per tonne, cash seller & settlement aluminium price (Offer price) is US$ 2159 per tonne, 3M Bid Price is US$ 2172.50 per tonne, 3M Offer Price is US$2173 per tonne, Dec1 Bid Price is US$ 2247 per tonne, and Dec1 Offer Price is US$2252 per tonne. LME aluminium opening stock stands at 1090525 tonnes, off substantially from the stock on last closing. Total Live Warrants stands at 848825 tonnes and Cancelled Warrants 241700 tonnes. The...
Aluminium Bahrain B.S.C. (Alba) has reported sales volume of 978,195 tonnes in 2017, up 0.4 per cent Year-over-Year (YoY). The company had achieved total sales volume of 974,014 tonnes in 2016. For the fourth quarter of 2017, sales volume rose 8 per cent to reach 277,567 tonnes compared with 256,445 tonnes for the same period in 2016. The company has produced 981,016 tonnes in 2017, up by 1% Year-over-Year (YoY), versus 971,420 tonnes in 2016. For the fourth quarter of 2017, production increased 9 per cent YoY to 274,147 tonnes, from 250,670 tonnes for the same period in 2016. Alba said that the company has managed to close 2017 with its Value-Added (VA) Sales averaging 57 per cent of total shipments versus 56 per cent in 2016. Chief Executive Officer, Tim Murray said: “Despite 2017...
Rio Tinto has accepted a purchase offer from UK industrialist Sanjeev Gupta for its Dunkerque aluminium smelter, Europe’s biggest aluminium producer. According to the sources, the purchase would be announced today unless there were any unforeseen circumstances. This is the latest investment by Mr Gupta’s company Liberty House that has been expanding its business operations by acquiring a number of assets in the metal and mining, shipping, recycling, banking and automotive sector in last four years. Mr Gupta was dubbed the ‘Man of Steel’ in a recent BBC documentary on his deal-making exploits. It was rumoured last month that Mr Gupta met with French president Emmanuel Macron earlier in the year to talk about his interest to invest in the Dunkerque smelter, located in northern France. The...
LME aluminium continued to drop and the 20-day moving average may not provide enough support today. The initial positive trend is slowing down and market sentiments are being driven by concern over the futility of China’s output cut and the growing aluminium output. The light metal contract plunged from US$ 2177.50 per tonne on January 8 to close at US$ 2143.50 per tonne on January 9. As seen by Shanghai Metals Market, a rising US dollar would accelerate the drop of LME aluminium further. The price, according to Shanghai Metals Market is expected to trade at $2,140-2,165/t. With the slowing down of US dollars, other base metals are moving up while aluminium is the only metal that ended lower. As on January 9, LME official cash buyer aluminium price (Bid Price) stands at US$ 2143per tonne,...
National Aluminium Company Limited (NALCO) has presented Corporate Plan (2017-2032) that foresees the company to reach a turnover of INR 31,248 crore and a PAT of INR 3,010 crore by 2032. NALCO said that the new plan expects the company to reach a turnover of INR 18,171 crore with PAT of INR 1,693 crore by 2024 with enhancement of the smelting capacity to 1.1 million tons & refining capacity to 3.27 million tons. The plan also envisages backward integration to CT Pitch & Caustic Soda; forward integration to Extrusion, Foils & Castings; expanding value addition capacities in Wire rods & Rolled Products; diversifying into commercial mining in Bauxite & Chromite, Conductors & Lithium-Ion batteries, it said. The Corporate Plan was released by Shri Arun Kumar, IAS, Secretary, Ministry of...
The Aluminium Federation, the trade body for the UK aluminium industry, has announced the appointment of a new chief executive. Tom Jones joins the organisation from MMC Hardmetal UK, part of the Mitsubishi Materials group, where he was general manager. Tom has more than 35 years experience of working in manufacturing. The Aluminium Federation has grown its membership in recent years, to around a hundred companies. Members include Arconic, Bridgnorth Aluminium, Novelis, Hydro and Liberty British Aluminium. The Aluminium Federation manages the All Party Parliamentary Group for the UK Aluminium Industry, and is a founder member of UK Metals Council. Aluminium Federation President Giles Ashmead said: “We are delighted that Tom has joined the Federation to lead our team in driving forward our...
Primary aluminium ingot price is on a downward curve in China as the positive vibes in the last week of December is fading away and the market is getting concerned about the climbing inventory and the impact it is going to have on the aluminium prices in the first quarter of 2018. Despite the struggle to stay up in the face of higher inventory and lower raw material prices, Average A00 ingot price dropped today to stand at RMB 14,700 per tonne and expected to move within a range of RMB 14,680-14,720. Spot discount will range within RMB 170-130 per tonne today. Aluminium ingot prices registered a drop in all individual markets in China except the South China market. The following table shows the trend in ingot price in the domestic markets: Spot Alumina price in South China market has...
The temporary high phase of LME aluminium at the end of 2017 is fading away as the light metal contract dropped further from US$ 2205.5 per tonne on January 5 to close at US$ 2177.50 per tonne on January 8. As seen by Shanghai Metals Market, a rising US dollar would accelerate the drop of LME aluminium further, which is expected to trade at $2,150-2,185/t today. Aluminium was the only metal to end lower at the end of trading on the London Metal Exchange on Monday January 8. As on January 8, LME official cash buyer aluminium price (Bid Price) stands at US$ 2,177per tonne, cash seller & settlement aluminium price (Offer price) is US$2177.50 per tonne, 3M Bid Price is US$ 2193 per tonne, 3M Offer Price is US$2194per tonne, Dec1 Bid Price is US$ 2265per tonne, and Dec1 Offer Price is US$2270...
Aluminium Bahrain B.S.C. (Alba), the Bahrain based international aluminium smelter, yesterday announced that it has set another production record during 2017. The company now aims to rise higher in 2018 as they progress with the construction of Line 6 Expansion Project. The company produced 981,016 tonnes per annum in 2017, up by 1% Year-over-Year (YoY). Alba’s production volume is the highest annual production recorded in company’s history. Commenting on its new record, Chief Executive Officer, Tim Murray said: “Alba’s record-breaking production speaks volumes about our resilience and determination to achieve excellence against all odds.” “I thank our employees and contractors alike for their hard work, commitment to Safety practices and for working together as one team to achieve this...
After registering some gains at the start of the New Year, LME aluminium is on a downward trend driven by dollar’s uptrend and higher Chinese inventory. The support of the 10-day moving averages became weaker for LME aluminium and Shanghai Metals Market expects the light metal contract to trade at $2,190-2,229/t today. The LME aluminium contract fell further from US$2,230 per tonne on January 4 and closed the first week of January at US$ 2205.5per tonne on January 5, Friday. As on January 5, LME official cash buyer aluminium price (Bid Price) stands at US$2,205 per tonne, cash seller & settlement aluminium price (Offer price) is US$2205.5 per tonne, 3M Bid Price is US$2224.50per tonne, 3M Offer Price is US$2225per tonne, Dec1 Bid Price is US$2300per tonne, and Dec1 Offer Price is...
According to the latest report from United States Geological Survey (USGS) domestic primary aluminium production in October 2017 was 63,000 tonnes. The average daily production in October was 2,020 tonnes, essentially unchanged from that in September 2017 and slightly more than that in October 2016. However, the amount drops 51% from that in October 2015. The October 2017 average U.S. market price of primary aluminium ingot and average cash price on the London Metal Exchange (LME) increased slightly from those in September 2017 to stand at US$ 2124 per tonne and US$1932 per tonnes, respectively. Inventories of primary aluminium in LME-approved warehouses in the United States dropped to 79,900 t at the end of October from 89,750 t at the end of September. Production of secondary aluminium...
India’s Navaratna public sector enterprise National Aluminium Company Limited (Nalco) is considering plans to open a second caustic soda plant in Odisha’s major seaport town of Paradip. The plant thought to supplement Nalco’s upcoming facility in Dahej- a JV between Gujarat Alkalis & Chemicals Ltd., will help check the spiralling overhead costs of its aluminium smelting operations. While explaining the reasons behind considering a second caustic soda plants, Nalco Chairman and Managing Director Dr. Tapan Kumar Chand marked the following pointers: Bringing operational costs under control is a priority in order to face global competition. Chinese producers get coal at highly subsidized rates which place them in an advantageous position against Indian aluminium producers in the international...
Equipment manufacturers and technology suppliers are an integral part of any industry and metal industry is no exception. The aluminium industry value chain is one of the most widely spread ecosystem that covers participants from the ore to the end user segments. The entire range of operations starting from mining to final processing of end –products requires highly effective technology and fixed and mobile equipment. The technology and the equipment also need to be upgraded from time to time in order to keep pace with changing needs of the industry, market and environment. This reinforces the significant role played by the equipment suppliers in the aluminium industry value chain. Quebec, being at the center of Canada’s aluminium industry with the presence of Alcoa, Rio Tinto Alcan and...
China aluminium prices are struggling to stay up in the face of higher inventory and lower raw material prices. After registering a slight drop yesterday, Average A00 ingot price increases today to stand at RMB 14,770 per tonne and expected to move within a range of RMB 14,750-14,790. According to SMM, SHFE aluminium is expected to trade just below the five-day moving average at RMB 15,050-15,220 per tonne. Spot discount is set to shrink to RMB 220-180/t. Aluminium ingot prices in all individual markets in China have registered a substantial increase. The following table shows the growth in ingot price in the domestic markets: Average prices of aluminium alloys have registered an increase in all markets today following the rising A00 ingot price. Average Aluminum Alloys (ADC12) price...
The dollar edged up on Thursday after upbeat U.S. data and supportive minutes from the Federal Reserve’s latest policy meeting helped it shake off recent weakness. After registering some gains at the start of the New Year, LME aluminium is on a downward trend driven by dollar’s uptrend and higher Chinese inventory. The light metal contract fell further from US$2,241 per tonne on January 3, to US$2,230 per tonne on January 4, Thursday. According to Shanghai Metals Market, LME aluminium is on a downward trend and is expected to trade between the five-day and 10-day moving averages today at $2,215-2,255/t. The momentum in LME copper may also affect aluminium price movement. As on January 4, LME official cash buyer aluminium price (Bid Price) stands at US$2,228 per tonne, cash seller &...
Rusal’s Krasnoyarsk Aluminium Smelter in Russia has ordered a new billet and slab homogenizing furnace from Danieli Olivotto Ferrè. Danieli will facilitate engineering, supply and delivery of the equipment and supervision of the erection and commissioning. The new furnace would be designed for homogenizing of slabs and billets of all aluminium alloys in series 1 to 9. produced in the plant. The unit will heat-treat products with sizes ranging from 300x700 mm up to 800x3,200 mm, and diameters from 127 mm up to 1,320 mm, in lengths from 1,000 mm up to 6,800 mm. The machine will also cool the slabs and billets by means of air flow. The plant will consist of one movable electrical homogenizing furnace on wheels with two fixed bases and one removable cooling system. The cooling system will be...
