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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Vestas, a Danish manufacturer and installer of wind turbines, has signed a contract with Aluar Aluminio Argentino S.A.I.C, Argentina’s leading aluminium producer, for the construction and installation of the El Llano wind park’s second phase. “The contract to build El Llano wind park’s second phase comprises supply and installation of 14 V126- 3.45 MW delivered in 3.6 MW Power Optimised Mode, as well as a 15-year Active Output Management 5000 (AOM 5000) service agreement, ensuring optimal operation of the wind park,” said Vestas. The turbine delivery is scheduled for the second quarter of 2018, while commissioning is expected for the first quarter of 2019. “Located close to Aluar’s facilities, the wind park will provide electricity for Aluar’s aluminium smelting, highlighting wind...
Despite the continuous struggle to move up, China aluminium prices continue to stay low with support of moving averages and driven by higher inventory. Despite the official number stating that China’s aluminium production dropped in November YoY, the inventory continues to climb up. Independent analysts express reservations about official numbers, asserting that production totals show cuts have been far less severe than announced by Beijing. After registering a slight increase yesterday, Average A00 ingot price drops today to stand at RMB 14,590 per tonne and expected to move within a range of RMB 14,570-14,610. Spot discount is set to shrink to RMB 310-270/t. Aluminium ingot prices in all individual markets in China have registered a drop. According to SMM, SHFE aluminium is also set to...
After making a strong start to the New Year, LME aluminium fell slightly as US Dollar index consolidated daily gains by rising to 92.25 from the previous mid-91.00s. The dip was also partly driven by the Chinese refined aluminium inventory data which touched record highs in November. The light metal contract fell from US$2,256 per tonne on January 2, to US$2,241 per tonne on January 3, Wednesday. Technical analysis suggests that LME aluminium will remain weak and range below the 5-day moving average at US$2,200-2,240 per tonne on Thursday, January 4. As on January 3, LME official cash buyer aluminium price (Bid Price) stands at US$2,240 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,241 per tonne, 3M Bid Price is US$2,251 per tonne, 3M Offer Price is US$2,251.50...
World aluminium output dropped sharply in November 2017 compared to the volume recorded in the same period previous year. According to the data released by the International Aluminium Institute, total aluminium output globally stood at 4.714 million tonnes in November. The volume is lower by 8.3 per cent from November 2016 figure i.e. 5.145 million tonnes. Month-on-month data reveals a drop in the global aluminium output as well. From 4.957 million tonnes in October, the volume has declined to 4.714 million tonnes in November last year. China can be seen as the strongest trigger in this production drop. Aluminium production in China decreased from 2.54 million tonnes in October to 2.35 million tonnes in November 2017. According to China’s National Bureau of Statistics data, primary...
According to Shanghai Metals Market statistics, China’s social inventory of primary aluminium including SHFE warrants climbed further to 1.78 million tonnes as of January 2, up 19,000 tonnes from levels seen on December 28. Current stocks in the major Chinese cities are as follows: Average A00 ingot price increased from yesterday to stand at RMB 14,670 per tonne today and expected to move within a range of RMB 14650-14,690. Spot discount is set to shrink to RMB 330-290/t. Aluminium ingot price in the South China market has dropped slightly to RMB 14,790/t. In other major Chinese markets, A00 ingot prices have registered an increase. SHFE aluminium is set to follow suit and trade at RMB 15,100-15,300/t today. Despite the increasing inventory in China, primary aluminium prices have been...
LME aluminium marks a strong start to 2018. The light metal contract which had ended at US$2,241.5 per tonne on December 29, rose by 0.6 per cent to close at US$2,256 per tonne on Tuesday, January 2. Technical analysis suggests that LME aluminium will trade higher in the range of US$2,250-2,285 per tonne today, January 3. However, with China’s refined aluminium inventory including SHFE warrants climbing further to 1.78 million tonnes as of January 2, from levels seen on December 28, the momentum is expected to stay weaker in the short term. As on January 2, LME official cash buyer aluminium price (Bid Price) stands at US$2,255.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,256 per tonne, 3M Bid Price is US$2,267 per tonne, 3M Offer Price is US$2,268 per...
Aluminium Bahrain B.S.C. (Alba), the Bahrain-based international aluminium smelter, teamed-up with Fives Solios and Fives ECL to deliver key training workshop for Alba employees. The trainings “Carbon Plant Process & Equipment” and “Reduction Plant PTA Crane Maintenance” were held in October 2017 at Alba’s Training Department. Commenting on these training programmes, Alba’s Chief Administration Officer, Waleed Tamimi, said: “As a leading aluminium smelter in the world, it is vital that our people are well-versed and up-to-date with the latest technology and trends. By collaborating with our key industry partners such as Fives Solios & Fives ECL, we aim to further develop the skills of our workforce, our human assets, thereby enhancing the Company’s productivity.”
As reported by Economic Times, after the rejection of the insolvency petition filed by Anrak Aluminium by National Company Law Tribunal (NCLT) in the 'interest of the nation', the Reserve Bank of India (RBI) has directed the lead lender State Bank of India to move the tribunal seeking insolvency. According to a source close to the developments, Anrak Aluminium is among few other large stressed assets that the banking regulator has directed the SBI last week to initiate insolvency resolution process. The move also comes after the joint lenders forum lenders decided not to accept the decision of the tribunal rejecting the insolvency petition filed by the corporate debtor. SBI's counsel VK Sajith, partner with India-Law LLP, has confirmed filing a fresh petition before the NCLT but refused...
On the first day of trading, the benchmark aluminium price at Shanghai Metal Exchange (SME) registered slow momentum and dropped to US$2256 per tonne today from US$2,261 per tonne on Friday, December 29. SMM expect the SHFE main aluminium contract to trade at RMB 15,250-15,500 per tonne. Spot discounts are to move at RMB370-330/t. Average A00 ingot price stands at RMB 14,640 per tonne today and expected to move within a range of RMB 14620-14,660 today. Spot discount is set to widen further to RMB 400-360/t. Aluminium ingot price in the South China market is trending the highest at RMB 14,800/t. Today’s drop in A00 ingot price in the major Chinese markets can be seen in the following table: Average prices of Aluminum Alloys (ADC12) have remained unchanged today. Aluminium Alloy (A356)...
Bosnian aluminium smelter Aluminij on Friday, December 29, said that the company expects an increase in aluminium production following the abolition of import tax on unalloyed aluminium, according to Reuters report. This year, Aluminij will boost annual production by 15% to 184,000 tonnes and raise exports by $55 million. The company expects to smelt 24,000 tonnes of unalloyed aluminium. Bosnian aluminium smelter produces 130,000 tonnes of primary aluminium annually and 30,000 tonnes of alloyed ingots. The company had asked state-level government to put an end to the import tax on unalloyed aluminium in order to reduce cost of production and boost productivity. The government of Bosnia's Federation owns 44% of Aluminij, small shareholders own another 44% and the Croatian government holds...
However, primary ingot prices are trending high at the end of the year despite higher inventory in China. Trading is closed today due to the New Year Holiday. Average A00 ingot price stands at RMB 14,700 per tonne today and expected to move within a range of RMB 14,680-14,720 per tonne. Spot discount is set to widen further to RMB 400-360/t. Aluminium ingot price in the South China market is trending the highest at RMB 14,880/t. The last updated A00 ingot prices in the major Chinese markets can be seen in the following table: Spot Alumina price has seen some substantial increase in 2017. This has been one of the reasons behind the growth of primary ingot prices in the country. Alumina price trend in China in 2017 can be seen in the following table. Increasing deficit in ex China world in...
The last week of 2017 gave LME aluminium strong upward momentum lifting up to a high not seen since March 2012. Open interest has also increased to 690,000 lots from 662,000 mt, while the SHFE-LME ratios moved lower to around 6.7. The aluminium contract in LME which started from the lows of US$1,700 per tonne in the beginning of this calendar year to US$2,175 per tonne in October closed at US$ 2241.50 per tonne on Friday, December 29, slightly down from US$2246. As on December 29, LME official cash buyer aluminium price (Bid Price) stands at US$2,241 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,241.5 per tonne, 3M Bid Price is US$2,250.50 per tonne, 3M Offer Price is US$2,251 per tonne, Dec1 Bid Price is US$2,288 per tonne, and Dec1 Offer Price is US$2,293 per...
Alcoa’s recently-sold smelter at Portovesme has already found a private-sector buyer, as Swiss firm Sider Alloys is on the cusp of closing a deal to purchase the plant from the Italian government. Per industry media, Sider Alloys is planning to close the transaction by mid-February. The assets of Alcoa Italy will still pass through the hands of the Italian government’s investment branch Invitalia, but it will remain the possession of the state only briefly. According to the union source, the state designed the sales plan in this manner in order to shield Alcoa from responsibility for an incoming investor’s potential failure at reviving the business. This is the first time a deal has been carried out in this manner by the Italian government. Though no sales figures were released, it is a...
SHFE aluminium is following the movement of its western counterpart and growing despite the growing inventories in China. According to SMM statistics, offsetting all the efforts of winter capacity cut, China’s social inventory of refined aluminium including SHFE warrants surged to near-10-year high at 1.76 million tonnes on Thursday December 28. This was up 22,000 million tonnes from a week ago. However, primary ingot prices are trending high despite higher invenotory. Today’s increase in A00 ingot price in the major Chinese markets can be seen in the following table: Average A00 ingot price stands at RMB 14,700 per tonne today and expected to move within a range of RMB 14,680-14,720 today. Spot discount is set to widen further to RMB 400-360/t. Aluminium ingot price in the South China...
LME aluminium is nearing a stupendous 2017 close. The light metal contract which has been seen rising from the lows of US$1,700 per tonne in the beginning of this calendar year to US$2,175 per tonne in October closed at US$2,246 per tonne yesterday, December 28. The bullish trend is influenced by improved marginal demand in the international market. This is expected to add positions today. Technical analysis suggests that LME aluminium will rise further and stay strong at US$2,255-2,290 per tonne on Friday, December 29- the highest in last 12-month period. Source: www.lme.com As on December 28, LME official cash buyer aluminium price (Bid Price) stands at US$2,245 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,246 per tonne, 3M Bid Price is US$2,256 per tonne,...
One of the reasons China’s total aluminium capacity has not seen a substantial drop despite the winter cut is because China’s smelters are making use of ‘capacity swap quotas’. While announcing winter closure, smelters were directed to close excess/unused capacity or sell it as a quota to others seeking to expand. Morgan Stanley analysts said in a note. “While the strategy constrains capacity growth and boosts the industry’s utilisation rate, it is likely to see China’s total output lift too.” According to SMM senior analyst Liu Xiaolei there would be little impact on the capacity of primary aluminium in Binzhou, Shandong province even though the city was said to have exceeded its allowed capacity. The smelters used the capacity swap quotas and the total capacity remained almost same. On...
Alcoa, a global industry leader in bauxite, alumina and aluminium products, announced that the company will release its fourth quarter and full-year 2017 financial results on Wednesday, January 17, 2018 after the close of trading on the New York Stock Exchange. Alcoa will also host conference call that day at 5:00 p.m. ET to review its financial results. The live webcast of the conference call can be accessed at www.alcoa.com. Roy Harvey, President and Chief Executive Officer and William Oplinger, Executive Vice President and Chief Financial Officer will host the conference call to discuss the results. The press release with financial results, and a related presentation, will be available on the “Investors” section of Alcoa’s website, www.alcoa.com. A link to the press release will also...
Weak alumina prices have not much affected the primary ingot prices in China as the A00 ingot prices have seen another rise across all markets today. Average A00 ingot price stands at RMB 14,380 per tonne today and expected to move within a range of RMB 14,360-14,400 today. Christmas trading holiday in LME has temporarily improved the market in China lifting the aluminium prices. The momentum of average A00 ingot price in last one month can be seen in the following graph. SMM predicted SHFE aluminium would test the RMB 15,000/t level, trading at RMB 14,700-15,000/t. Spot discount, on the other hand, is set to go deeper at RMB 370-330/t today. However, in the short and medium term aluminium prices in China would be under pressure because of growing inventory despite the capacity cut...
