South32 expects the sale of its aluminium value chain assets to Alcoa to be completed in the six months ending June 2027. The proposed transaction covers its aluminium operations and related bauxite and alumina assets in South Africa, Australia and Brazil. The sale follows a binding conditional agreement signed by the two companies, under which Alcoa agreed to acquire the assets for up to USD 5.6 billion . The assets include South32's Hillside Aluminium smelter and the idled Bayside smelter in South Africa, its interests in the Boddington bauxite mine and Worsley alumina refinery in Australia, and the Mineração Rio do Norte bauxite mine and Alumar alumina refinery and aluminium smelter in Brazil. Explore the production, demand and consumption forecasts of bauxite and alumina in our...
LME aluminium cash prices recorded an increase on November 5, 2026, with the cash offer price rising by 0.80 per cent day on day to USD 3,160 per tonne from USD 3,135 per tonne on November 4. On November 5, the LME aluminium cash bid price stood at USD 3,158 per tonne, up by 0.75 per cent from USD 3,134.5 per tonne recorded on November 4. The cash offer price increased by USD 25 per tonne. Similarly, LME aluminium 3-month prices moved higher. The 3-month bid price rose by 0.78 per cent to USD 3,097 per tonne on November 5 from USD 3,073 per tonne on November 4. The 3-month offer price increased by 0.76 per cent to USD 3,097.5 per tonne from USD 3,074 per tonne. For December 27 contracts, the bid price advanced by 0.33 per cent to USD 2,997 per tonne on November 5 from USD 2,987 per tonne...
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The Aluminum Association and the Aluminum Association of Canada reported a total primary aluminium production at an annual rate of 3,957,851 tonnes in North America during June 2016. The rate reports a drop of 15,044 tpy (-0.4 per cent) from 3,972,895 tonnes in May 2016. The YoY comparison of the North American production shows a drop of 11.0 per cent from the June 2015 rate of 4,445,153 tonnes. The actual North American production was 2,029,686 metric tonnes during H1 2016. The Aluminium Association of Canada additionally reported that the Canadian primary aluminium production rate dropped slightly for the second consecutive month. The rate of production in June 2016 was at an annual rate of 3,206,001 metric tonnes, which reported a drop of 7,290 tonnes from the May 2016 rate of...
SMM surveyed 44 Chinese aluminium smelters about their opinions over aluminium price outlook. About 32 per cent of them expect SHFE 1609 aluminium to fall below RMB 12,450/mt and LME aluminium below USD 1,600/mt, citing 4 reasons. First, many aluminium processors in Inner Mongolia and Henan shut down for rectifications because of environmental protection crackdowns, which will reduce aluminium demand. Second, July is the traditional off-season, with orders down significantly at aluminium processors. Third, output release from aluminium capacity restarted in April will add to market supply. Fourth, CFTC data showed net long positions of the US dollar hit one-year high. Strong dollar, plus weak crude oil, will pressure metals prices. Another 57 per cent expects SHFE 1609 aluminium to...
Emirates Global Aluminium (EGA) has been named one of the top rapidly globalising companies in the Boston Consulting Group (BCG) 2016 Global Challengers report. The BCG Global Challengers report focuses on the innovative business models, strategies and challenges arising from emerging markets, said a statement from EGA. The report is the outcome of an analytical study into how the companies in the report are performing. As with prior editions it identifies the top 100 companies that are vying for leadership of key industries and driving global economic growth, it said. This is EGA’s second citing, having also been included in the 2014 edition of the report, it added. EGA is one of three UAE companies included in the BCG 2016 Global Challengers report, the others being Etihad Airways and...
Aluminium Bahrain (Alba), one of the largest aluminium smelters in the world, reported a 45.4 per cent decline in net profit in the second quarter of the current fiscal on Sunday. Alba's net income for the three months ended June 30 was BD 16.28 million ($43.2 million) compared to BD 29.8 million profit in the corresponding period previous year. Alba in its statement did not cite any reason for the decline, but the global downturn in aluminium prices which had led to the company's weak earnings in the last three quarters can be held responsible for the decline in net income. Aluminium price in London Metal Exchange made a nose-dive to touch $1,450 per tonne in November last year after peaking at around $2,000 in May. Since then, the recovery in the light metal price has been pretty...
The Boards of Vedanta Limited, Cairn India Limited and Vedanta Resources announced the revised and final terms of the merger between Vedanta Limited and Cairn India as announced on 15 June 2015. According to the new merger terms each Cairn India minority shareholder will receive against each equity share held: • 1 equity share in Vedanta Limited • 4 Redeemable Preference Shares worth INR 10 in Vedanta ltd, with a coupon of 7.5% for a tenure of 18 months • Implied premium of 20% to one month VWAP of Cairn India share price. The current commodity market situation further strengthened the strategic rationale of the merger. The merger is expected to stabilize cash flow of both the companies. Furthermore there is strong historical evidence of the success of diversified resources companies...
Aluminium stocks in China’s five major markets continued falling after hitting their lowest in seven years, but a turning point is in sight, SMM understands. Heavy rains along the middle and lower reaches of the Yangtze River earlier are leaving some ingots still on the way, preventing arrivals from picking up noticeably, SMM learned. While rains have slowed down transport, more ingots will arrive once transport fully recovers. Aluminium consumption is unlikely to pick up markedly in the short term. As such, total aluminium stocks in domestic five major markets will begin to see a turning point for the foreseeable future, SMM predicts. The table below shows details of aluminium stocks at China’s five major markets: Unit: 1,000 tonne
The Board of Directors of Alcoa has declared following dividends for the quarter ended June 30, 2016: i. A quarterly common stock dividend of 3 cents per share payable August 25, 2016 to holders of record of the common stock at the close of business on August 5, 2016. ii. A dividend of 93.75 cents per share on Alcoa’s $3.75 cumulative preferred stock (“Class A Stock”) payable October 1, 2016 to holders of record of the Class A Stock at the close of business on September 9, 2016. iii. A dividend of $6.71875 per share on Alcoa’s 5.375 per cent Class B Mandatory Convertible Preferred Stock (“Class B Stock”) payable October 1, 2016 to holders of record of the Class B Stock at the close of business on September 15, 2016. The dividend on the Class B Stock is equivalent to a dividend of...
The Hong Kong Stock Exchange's planned move to link with London Metal Exchange has been put on hold due to Britain's recent exit from the European Union. The HKEX's decision to enter into a commodities clearing link with its London Metal Exchange (LME) was aimed at making LME more profitable. However, the planned link-up would now have to wait due to the uncertainty created by the vote last month, said Hong Kong Exchanges & Clearing Ltd. Chief Executive Charlies Li.
China Aluminum International Trading Co. (Chalco Trading) further cut aluminium prices in major markets today, marking its 7th consecutive day of cuts, it said on its WeChat. For details, please see the table below: Unit: yuan/tonne Note: Chalco Trading is a full subsidiary under Chalco responsible for alumina and aluminium sales.
Strengthening Chinese demand led Norsk Hydro, one of the world's largest aluminium producers, to raise its forecast for global aluminium demand growth this year to 4-5 percent as it reported forecast-beating earnings on Thursday. The company's global aluminium demand forecast, revised up from 3-4 percent, is now closer to peer Alcoa's forecast of 5 percent. Norsk Hydro said it saw stronger Chinese economic activity than previously anticipated and now expected aluminium demand in the country to grow 5-7 percent in 2016, up from a previous forecast of 3-5 percent. "(In China) we see aluminium moving into infrastructure, but also very much into building and construction," Chief Executive Svein Richard Brandtzaeg said while presenting second-quarter results. Norsk Hydro repeated it expected a...
Norsk Hydro reports its Second quarter 2016 results. Hydro's underlying EBIT rose to NOK 1,618 million in Q2 from NOK 1,501 million in Q1 2016. The increase was due to higher realized alumina and aluminium prices and higher sales volumes, slightly offset by currency developments. "We have lifted annual global aluminium demand growth forecast to 4-5 percent for 2016, up from previous forecast 3-4 percent. Higher-than-expected activity in China means that we now see primary aluminium demand in China alone to grow by 5-7 percent in 2016. Globally, we expect a largely balanced aluminium market for the full year, "says President and CEO Svein Richard Brandtzæg. Highlights: • NOK 1,618 million of underlying EBIT • Higher realized alumina and all-in aluminium prices, slightly offset by currency...
Jiaozuo Wanfang Aluminum Co., one of the subsidiaries of Aluminum Corporation of China Limited (Chalco), announced yesterday that production at its aluminum smelting plant has been severely affected by flood. All the facilities were flooded, resulting in a prolonged power outage. Jiaozuo Wanfang Aluminum estimates around 50,000 tonnes of aluminium output was affected due to flood. According to the company sources, a major portion of water in the plant has already been drained and production is expected to resume within two months. Jiaozuo Wanfang Aluminum Co. mainly deals is aluminum smelting and captive power generation. They also have downstream operations and manufactures a wide range of aluminum alloy products.
LME aluminium suffered a 4-day losing streak and will fall further to USD 1,605-1,630/mt today, with eyes on the ECB meeting. SHFE 1609 aluminium has stabilized at above the 40-day and 60-day moving averages, and will rise to RMB 12,300-12,450/mt. In China’s spot aluminium market, spot premiums of RMB 40-80/mt are expected over SHFE 1608 aluminium contract. Key macroeconomic indicators for base metal prices Diverging trend will continue on base metal market on Thursday with eyes on rate decision by the ECB, US June existing home sales and July Federal Reserve Bank of Philadelphia manufacturing index. US Federal Reserve Bank of New York manufacturing index weakened significantly in July. Should the Federal Reserve Bank of Philadelphia manufacturing index be also negative in July,...
Stock markets across the globe are finally showing some signs of stabilization after a prolonged hiatus of almost two years which saw investors struggling to make money off the stocks. Though a sharp fall was recorded all over following Brexit, but the sell-off did not persist for long. The recovery was fast and investors turned all the more positive about global economy. Analysts at Metal Miner took a cue from the above chart, where the S&P 500 index can be seen touching an all-time high this week. According to them, an uptrend in stock markets doesn't necessarily indicate at rising commodity and metal prices, but then it is definitely a good sign. When there's a decline in the stock markets it indicates at the fact that investors are fearing about overall economic performance, as a...
The European Commission proposed a deal for the steel sector in exchange for granting China the much sought after Market Economy Status (MES). This approach was debated by the College of Commissioners on July 20. The European Aluminium Association is of the view that the proposal ignores the huge Chinese overcapacities in industries like aluminium and creates unfair distortions on the EU market. European Aluminium Director General, Gerd Götz believed that the European Commission proposal to grant MES to China would go against the stand of their trading partners in the US against granting the MES to China. The US has warned China about not resorting to fair trade practise to qualify for MES. Even the elected representatives of EU in the European Parliament voted in May with an overwhelming...
Power transmission system of Kitmat is undergoing a massive upgrade. BC Hydro has been roped in to replace the transmission lines (between Terrace and Kitimat) that has reached end of life. The new transmission will ensure undisrupted flow of electricity between the two regions. Nevertheless, Kitimat Mayor Phil Germuth is known to be a bit wary of the overhaul project, as he thinks that operations at Rio Tinto's aluminium smelter which runs in with the power supplied by the Kemano Hydro Electric plant might get affected due to this in the long run. "BC Hydro likes to call it the Terrace to Kitimat Transmission Line, but really if you're talking about the way the energy does flow and always has flowed, it's really the Kitimat to Terrace line." said Kitimat Mayor Phil Germuth. The Kemano...
The largest aluminium smelter in Australia, Boyne Smelters Limited could be put up for sale again by Rio Tinto, according to analysis by UBS. Plans for selling two other Australian smelters are also said to be there on the cards. The move on the part of Rio Tinto could be aimed at selling off "non-core assets" such as aluminium smelters to focus on iron ore business, the analysis observes. Ever since Rio Tinto chief executive officer Jean-Sebastien Jacques assumed his office on July 3, he has been focused on streamlining Rio's business. "Jean-Sebastien Jacques has delivered about 70 per centof Rio's divestments since 2013 as head of copper and coal, while other divisions have struggled," UBS analyst updated in his report. "We expect (him) to reinvigorate the clean-up of Rio's portfolio,...
Ron Knapp, Secretary General of the International Aluminium Institute (IAI) paid a two-day visit to Shandong Weiqiao Pioneering Group during July 14-15, cnal.com reported. Zhang Bo, Vice Chairman of Weiqiao Group, said two subsidiaries of the group were included in the list of top three energy-efficiency leaders in China’s aluminium industry. While the group’s advantage in power tariffs has weakened due to declines of average power costs in domestic aluminium industry last year, the group has managed to maintain the lowest production cost in the industry. This is thanks mainly to its complete value chain and technical strength. Weiqiao Group will step up R&D, optimize production technology, as well as try to maintain its status as energy-efficiency leader. Both sides had a deep discussion...
