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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The price of A00 ingot in China is continuing its recovery after the fall through November and December. Average A00 ingot price has increased further to stand at RMB 14,310/t on December 20 from RMB 14,180/t on December 19. As updated by Shanghai Metals Market, the primary ingot prices registered some increase in the domestic markets too. The price is expected to range within RMB 14290 – 14,330 per tonne. According to an update from Reuters, Ministry of Environmental Protection found five aluminium and steel producers had not limited or closed output to comply with the winter emissions cuts directives running from November 2017 to March 2018. Taiyuan East Aluminum which has refined aluminium output capacity of 100,000 tpy and aluminium rod production capacity of 50,000 tpy, with plans to...
U.S. President Donald Trump’s new security strategy bolsters the case for trade actions to protect U.S. economic interests on national security grounds, including possible import tariffs on steel and aluminium, a senior Trump administration official said on Tuesday. The strategy document released on Monday did not specifically mention the Commerce Department’s “Section 232” investigations into whether rising steel and aluminium imports represent a threat to national security. With recommendations due in January, the probes could lead to broad tariffs or import quotas under a Cold War-era trade law. The official said the document made clear that Trump considered economic strength to be an integral part of national security and “formalizes” the link between the two. The 232 probes on steel...
LME aluminium is climbing higher at a moderate pace. The light metal contract which closed at US$2,047 per tonne on Monday, December 18, rose by 0.6 per cent to close at US$2,061 per tonne on Tuesday, December 19. Technical trend analysis suggests that LME will test the resistance at the 40-day moving average and range at US$2,090-US$2,115 per tonne on Wednesday, December 20. As on December 19, LME official cash buyer aluminium price (Bid Price) stands at US$2,060.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,061 per tonne, 3M Bid Price is US$2,080 per tonne, 3M Offer Price is US$2,082 per tonne, Dec1 Bid Price is US$2,125 per tonne, and Dec1 Offer Price is US$2,130 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1105875...
After the launch of three successful industry reports, AlCircle is now coming up with a comprehensive Aluminium Industry Recap 2017. While we are wrapping up a positive and eventful year for the global aluminium industry; it also gives us an opportunity to look back at the significant developments that shaped the industry value chain. This edition of Aluminium Industry Recap 2017 aims to touch upon the major developments in each vertical, which influenced each other driving growth or counter growth. The developments are not only analysed chronologically but also analytically so that we can draw a conclusion on how the entire value chain moved together to bring about a turnaround in the market. China continues to draw a good amount of attention due to its capacity cut moves and its effect...
LME aluminium has resumed its uptrend. The light metal contract having risen from US$2,036 per tonne on Friday, December 15, closed at US$2,047 on Monday, December 18 amid positive market fundamentals. Current price trend analysis suggests that LME aluminium will rise further. It is expected to range at US$2,060-2,090 per tonne on Tuesday, December 19. As on December 18, LME official cash buyer aluminium price (Bid Price) stands at US$2,046.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,047.50 per tonne, 3M Bid Price is US$2,066 per tonne, 3M Offer Price is US$2,068 per tonne, Dec1 Bid Price is US$2,110 per tonne, and Dec1 Offer Price is US$2,115 per tonne. LME aluminium Opening Stock or the LME aluminium inventory level stands at 1105900 tonnes, total Live...
The price of A00 ingot in China is on recovery mode after continuous fall through November and December. The change could be seen after the country's National Bureau of Statistics reported that China’s primary aluminium output dropped 16.8% year on year to 2.35 million tonne in November. Though total output from January to November was up 1.7% to 29.54 million tonnes, month over month, it shows a substantial decline. Average A00 ingot price has increased to stand at RMB 14,170/t today from RMB 14,050/t on December 15 Friday. As updated by Shanghai Metals Market, the primary ingot prices registered some increase in the domestic markets too. The price is expected to range within RMB 14150 – 14,190 per tonne. SHFE contracts look set to hit the 20-day moving averages trading at RMB...
LME aluminium prices continued to rise during morning trading hours on Monday, December 18, amid fairly positive market sentiment. The light metal which stopped dropping last week closed at US$2,036 per tonne on Friday, December 15, up from US$2,017 on Thursday, December 14. Current price trend analysis suggests that LME aluminium will likely hit the 20-day moving averages to trade in the range of US$2,050-2,080 per tonne on Monday. As on December 15, LME official cash buyer aluminium price (Bid Price) stands at US$2,035.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,036 per tonne, 3M Bid Price is US$2,050 per tonne, 3M Offer Price is US$2,051 per tonne, Dec1 Bid Price is US$2,095 per tonne, and Dec1 Offer Price is US$2,100 per tonne. LME aluminium Opening...
The Aluminium Stewardship Initiative (ASI) announced the launch of new certification program for the aluminium value chain, focused on responsible production, sourcing and stewardship of the metal. The new program will cover all stages of the value chain for aluminium, including bauxite mining, alumina refining, aluminium smelting, semi-fabrication, product design and manufacturing, and recycling. Dr Fiona Solomon, ASI Chief Executive Officer, said: “Supply-chain certification programs like ASI are becoming increasingly important for customers and stakeholders, who seek assurance that companies’ sustainability practices are genuine” “We are excited about the next steps as member companies work towards achieving the first ASI Certifications in 2018.” The ASI’s Performance Standard covers...
China has accused the United States and the European Union of breaking promises that they made when China joined the World Trade Organization, according to testimony published by China’s Commerce Ministry in an unusual step. China’s WTO ambassador, Zhang Xiangchen, told a WTO hearing that the high-stakes legal dispute boiled down to one principle: “Agreements must be kept”. “We are deeply concerned about the systemic implications this will have for the rules-based multilateral trading system,” Zhang said at the start of dispute hearings on Dec. 6. China took the legal action against the EU because it says that, under China’s 2001 WTO membership terms, it must be recognised as a “market economy” after 15 years. That means other countries have to take Chinese prices at face value. “China...
A falling US dollar index and China’s November aluminium output data lifted LME aluminium prices above the US$2,000 per tonne mark on Thursday, December 14. Despite higher inventory level, the light metal contract rose from US$1,997 per tonne on Wednesday, December 13, to close at US$2,017 after night trading yesterday. Shanghai Metals Market (SMM) analysis suggests LME aluminium will continue to be range-bound at the 10-day moving average at US$2,028-2,065 per tonne on Friday, December 15. As on December 14, LME official cash buyer aluminium price (Bid Price) stands at US$2,015 per tonne, cash seller & settlement aluminium price (Offer price) is US$2,017 per tonne, 3M Bid Price is US$2,033 per tonne, 3M Offer Price is US$2,033.50 per tonne, Dec1 Bid Price is US$2,078 per tonne, and Dec1...
STAS INC, the global leader in the supply of refining technologies for aluminium casthouses and crucibles and siphons, has entered into a new commercialization partnership with the Netherlands based HENCON. From now, the Canadian equipment supplier will promote and sell HENCON’s entire range of products for the light metal industry in Canada. STAS, known for its expertise in providing innovative technology solutions to the primary aluminium smelters, is the right entity to enhance HENCON’s market presence in Canada. The company will ensure a 24/7 service to all of HENCON’s customers. Leveraging on the combined customer base of HENCON and STAS is also a key objective of this new partnership. Outside Canada, the two companies will act as partners in a complementary way to their own global...
According to the National Bureau of Statistics, China’s primary aluminium production dropped for a fifth consecutive month in November. Total primary aluminium production stood at 2.35 million tonnes, down 7.8 per cent from 2.55 million tonnes in October and down 16.8 percent year on year. During January- November, China churned out 29.54 million tonnes of aluminium, up 1.7 per cent from the same period last year. The statistics bureau said that the country’s non-ferrous metals production stood at 4.32 million tonnes in November, down 6.9 per cent from the same month last year. During January- November, overall nonferrous production stood at 49.34 million tonnes, up 2.5 per cent from a year ago. In 2016, China’s nonferrous production was 52.8 million tonnes.
Norsk Hydro today announced that it will reopen and upgrade the second production line at Hydro Husnes, Norway. The company will introduce new technology elements that will give better results. The production line is expected to begin operations in the first half of 2020. Hydro will make total investment of NOK 1.3 billion (in 2017 terms). Final build decision is expected in Q3 2018. Hydro Husnes today produces about 95,000 tonnes of primary aluminium per year. With the re-start, the plant will produce around 190,000 tonnes of aluminium annually. Hilde Merete Aasheim, Head of Primary Aluminium in Hydro, said: "We have great faith in continued aluminium production in Norway. We are making use of new technology elements in this re-start, and building up a robust and future-oriented plant at...
Liberty House, an industrial and metals company controlled by Sanjeev Gupta, is looking at making a bid for Rio Tinto’s aluminium smelter in northern France. Three sources with direct knowledge of the matter told Reuters that the aluminium smelter, which valued at around 200 million euros ($234.44 million), would add to the Gupta Family Group (GFG) conglomerate. The Dunkirk aluminium smelter is currently Europe’s number one producer of aluminium in particular aluminium slab. The smelter has an annual capacity of 270,000 tonnes and is powered by nuclear energy supplied by EDF. Earlier reports suggested that Rio was considering the sale of its Dunkirk aluminium smelter. The company was planning to sell its aluminium smelting operations that are “not powered by hydroelectricity” to stay...
Primary ingot prices in China are hovering at a level close to RMB 14000 after falling drastically by the end of the first week of December. Average A00 ingot price has increased to stand at RMB 13,980/t today from RMB 13,920/t yesterday. As updated by Shanghai Metals Market, the primary ingot prices registered some increase in the domestic markets too. The price is expected to range within RMB 13960 – 14000 per tonne. The positive movement in A00 Aluminum prices have continued in all other individual markets in China. Average price of A00 ingot is trending the highest in the South China market at RMB 14,040/t. The below table shows the price increase in the other major Chinese markets: The increasing aluminium stock in China as well in the LME warehouses despite production cut remains a...
In absence of inventory support, which has been increasing of late and rising aluminium exports from China, LME aluminium failed to stay above the US2,000 per tonne mark. After rising to US$2,004 per tonne on Tuesday, December 12, the light metal contract again dropped to US$1,997 per tonne on Wednesday, December 13. Technical trend analysis suggests that the downward pressure will persist on LME aluminium in the medium term, and the contract will trade range-bound within US$2,000-2,025 per tonne on Thursday, December 14. As on December 13, LME official cash buyer aluminium price (Bid Price) stands at US$1,996.50 per tonne, cash seller & settlement aluminium price (Offer price) is US$1,997 per tonne, 3M Bid Price is US$2,015 per tonne, 3M Offer Price is US$2,015.50 per tonne, Dec1 Bid...
European Aluminium, the voice of the entire aluminium value chain, has welcomed the decision made by European Union, Japan and the United States to tackle excess production capacity in key sectors. EU Trade Commissioner Cecilia Malmstrom, Japanese Trade Minister Hiroshige Seko and U.S. Trade Representative Robert Lighthizer yesterday agreed to strengthen trilateral cooperation in the WTO and other forums to battle unfair trade. Gerd Götz, Director General of European Aluminium, said: “The issue of severe excess capacity in key sectors exacerbated by government support was highlighted by important trade authorities. This recognition is great news for our industry as aluminium is one of the sectors affected by government-supported capacity expansion and unfair competitive conditions caused...
Alufluoride, one of the few manufacturers of specialty chemical aluminium fluoride in India, a raw material for aluminium is leveraging on the uptrend in its end market – aluminium, as the raw material industry is experiencing supply tightness and improved pricing. After struggling due to low aluminium and raw material prices weak pricing environment for the last few years, Alufluoride has witnessed a good traction in its earnings supported by a healthy balance sheet, along with a niche production. Aluminum fluoride is used in electrolytic processing of aluminium from alumina as it lowers the consumption of electricity required in the smelting process and thereby helps in the reduction of production costs of aluminium. A few players like – Tanfac Industries, Alufluoride, SPIC (Southern...
