Bell Bay Aluminium (BBA), Australia's oldest aluminium smelter, is reviewing its workforce and offering redundancies for a small number of positions, just over a month after receiving an AUD 200 million (USD 137.52 million) government support package aimed at securing the facility's future until at least 2031. Up to 10 roles are understood to have been affected by the review, although the smelter is expected to retain its existing workforce of approximately 550 full-time equivalent (FTE) employees. Some redeployment opportunities will also be available, while the positions identified are not understood to involve frontline services. The changes reportedly include some former participants in Bell Bay Aluminium's graduate programme. Rio Tinto, which operates the smelter near George Town in...
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...
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Despite the downside trend of all-in-aluminium prices, Aluminium Bahrain B.S.C. (Alba) was able to increase its overall sales. For the first quarter of 2016, sales figures reached 231,538 metric tonnes (mt), an increase of 3,231 (mt), as compared to 228,307 mt in Q1 2015 while production dropped to 235,478 mt against 237,774 mt for the same period in 2015. Further, Alba’s Value-Added Sales averaged 52 per cent of total shipments in the first quarter of 2016 versus 64 per cent for the same period in 2015. Commenting on Alba’s sales and production for Q1 2016, Alba’s Executive Officer, Tim Murray said: “We managed to step-up our sales performance despite tough market conditions weighing on the aluminium industry and thanks to focused-marketing strategy.”
LME aluminium is expected to test a resistance at $1,539 per tonne, a break above which could lead to a gain to the next resistance at $1,564. The uptrend from the March 24 low of $1,475 has resumed, driven by a wave c. A Fibonacci retracement analysis on the rise from the November 23, 2015 low of $1,432.50 to the March 7 high of $1,605 reveals a target of this wave at $1,564, the 23.6 percent level. The immediate resistance is at $1,539, the 38.2 percent level. Support is at $1,498, the 61.8 per cent level, a break below which could cause a loss to the 76.4 per cent level at $1,473.
Aluminium prices softened by 0.24 per cent to INR 102 per kg in futures trading today as participants booked profits, driven by subdued demand in the spot market. At the Multi Commodity Exchange, aluminium for delivery in far-month May declined by 0.24 per cent to INR 102 per kg in a business turnover of 22 lots. Likewise, the metal for delivery in April shed 0.15 per cent to INR 100.95 per kg in 693 lots. Market analysts said the weakness in aluminium in futures trade was mostly to profit-booking by traders amid sluggish demand from consuming industries in the spot market.
Lightweight metals leader Alcoa reported solid first quarter 2016 performance. Arconic segments (Value-Add) reported year-over-year profit growth and the Upstream segments, Alumina and Primary Metals, remained profitable despite continued low pricing. The company is on track to complete its separation in the second half of 2016. "Each of our segments delivered strong performance,” said Klaus Kleinfeld, Chairman and Chief Executive Officer. “Profits grew in all of the Arconic segments, led by automotive and aerospace; Upstream segments maintained profitability in a persistently low pricing environment. Productivity was high across the portfolio and we divested non-essential assets to strengthen the balance sheet. We won new contracts for bauxite supply, 3-D printed titanium aerospace...
About half of the 48 Chinese aluminium smelters surveyed by SMM expect aluminium prices to rise this week. Those optimists see SHFE 1606 aluminium rising to RMB 11,900-12,000/mt and LME aluminium advancing above USD 1,525/mt. China’s PPI rose 0.5 per cent MoM in March, the first month-on-month rise since January 2014. A series of other Chinese economic data to be released later this week will be positive as well. Long buying was reported after last week’s technical correction. aluminium stocks in China’s five major markets fell 28,000 mt on a weekly basis last Thursday, will head for 400,000-500,000 mt, another positive factor for aluminium prices. Another 42 per cent see SHFE 1606 aluminium stabilizing at RMB 11,650-11,850/mt and LME aluminium stabilizing at USD 1,500-1,525/mt. SHFE 1606...
US primary aluminium production will drop to 0.8Mt in 2016, down from 1.6Mt in 2015. The strong US dollar, relatively high power prices, and low metal prices are behind this major reduction in output. Ingot production will be the hardest hit, but the continuation of slab casting at Alcoa's Warrick plant will lessen the impact on slab. The large fall in US ingot supply will ratchet up the need for ingot imports to meet demand. Despite the best regional dynamics, billet and primary foundry alloy upcharges in the USA will not rise in Q2, as high netbacks (the margin a producer earns) — on low ocean freight rates — encourage higher exports to the USA. Aluminium Ingot taking all the heat In the USA, ingot demand will surge in H2 2016 as Alcoa halts primary production at its Warrick smelter but...
The 1,200 mega watt (MW) captive power plant of National Aluminium Company (Nalco) faces an imminent closure due to lack of facilities to evacuate the slurry. The two ash ponds of the company have been filled to maximum and are hardly in a position to contain more slurry. The company’s proposal to dump slurry in a void coal mine at Talcher, as a long term solution, is pending due to political hassles. Nalco generates about 6,000 tonnes of ash daily at present from its seven 120 MW units. According to official source, Nalco got a void coal mine at Bharatpur in 2010 and accordingly work order was issued to a contractor in 2011 to construct 23 km pipeline from the power plant to mine. The work was to be completed in about two years time but the construction is not over due to lack of forest...
LME aluminium was neutral in a range of $1,498- $1,519 per tonne last week, and an escape will point a direction. The range was formed by the 61.8 per cent and the 50 per cent Fibonacci retracements on the rise from the November 23, 2015 low of $1,432.50 to $1,605. A rise above $1,519 could be extended to $1,539, the 38.2 per cent level, while a break below $1,498 could cause a loss to the 76.4 per cent level at $1,473. The bias could be towards the upside, as the wave pattern suggests the gain from the from the March 24 low of $1,475 consists of three waves, with the third wave labelled c yet to travel towards $1,539.
LME aluminium is likely to face technical correction early this week and move at USD 1,505-1,530/mt, predicted SMM. China’s March CPI and PPI are expected to beat forecast. SHFE 1606 aluminium will move at RMB 11,700-11,800/mt, with market sentiment improving. In China’s spot aluminium market, spot discounts of RMB 0-20/mt and spot premiums of RMB 0-20/mt are expected over SHFE 1604 aluminium contract.
The outcome of the transmission pricing methodology (TPM) review was becoming increasingly important to the future of the Tiwai Point aluminium smelter, Forsyth Barr broker Damian Foster said yesterday. Smelter owner New Zealand Aluminium Smelters (NZAS) was undertaking work to determine the level of maintenance capital expenditure it had to undertake. It was expected the company would have to make a decision soon on its deferred maintenance spend. "Committing to capex is a good indication NZAS is likely to stay open for longer. However, it is clear the outcome of the transmission pricing methodology review is becoming increasingly important,'' Mr Foster said. In March, the NZAS contact with Meridian Energy was amended to allow the smelter to defer its decision on contract volumes, which...
China Aluminum International Trading Co. (Chalco Trading) cut aluminium prices in major markets this past week after three weeks hike, it said online. The table below shows the aluminium price corrections made by Chalco Trading:
SHFE 1606 aluminium will face technical correction after falling below the 10-day moving average, and should move at RMB 11,600-11,750/mt on Friday, SMM forecasts. According to SMM, LME aluminium will trade in a range of USD 1,490-1,510/mt, In China’s spot aluminium market, spot discounts of RMB 0-20/mt and spot premiums of RMB 0-20/mt are expected over SHFE 1604 aluminium contract. SHFE Aluminium ended with declines SHFE 1606 aluminium opened at RMB 11,795/mt on Thursday. The most active contract climbed to RMB 11,810/mt on long buying, but then retreated to RMB 11,750/mt as longs took profit at highs. Finally, SHFE 1606 aluminium ended down RMB 50/mt at RMB 11,780/mt. Trading volumes were down 28,244 lots to 121,118 lots, and positions were up 5,270 to 256,784. SHFE 1606 aluminium is...
Aluminium Bahrain B.S.C. (Alba), a leading aluminium smelter in the world, demonstrated its commitment as a frontrunner in corporate citizenship by backing the Bahrain International Corporate Social Responsibility (CSR) Award 2016, organized by Bahrain CSR Society at the Regency Hotel over the course of two days starting April 6th 2016. The opening ceremony, held under the patronage of the Minister of Energy His Excellency Dr. Abdul Hussain Ali Mirza, was attended by Alba Chief Financial Officer Ali Al Baqali and Chief Marketing Officer Khalid A. Latif along with other Alba officials. On this occasion, Alba’s Chief Financial Officer, Ali Al Baqali said: “Alba believes in its responsibility towards the community in which its operates and as an active corporate citizen, we believe that it...
According to USGS Mineral Industry Survey for Aluminum in January 2016, domestic primary aluminum production in US in January 2016 was 106,000 metric tons (t). The average daily production was 3,430 t, 6% less than the daily production during the preceding month and 25% less than that in January 2015. The monthly average U.S. market price of primary aluminium ingot decreased to $0.764 per pound in January 2016 from $0.769 per pound in December 2015 (fig. 2). The monthly average price increased to $0.783 per pound in February 2016. Inventories of primary aluminum in London Metal Exchange Ltd. approved warehouses in the United States were 420,000 t at the end of January. Inventories continued their downward trend, decreasing to 384,000 t at the end of February 2016, their lowest level since...
Aluminium smelters in China, which supply more than half the world’s metal, are restarting idled plants after a price rally, according to the industry group that brokered an agreement in December to curb capacity. As much as half of Chinese smelter capacity is profitable at current prices, Wen Xianjun, deputy chairman of the China Nonferrous Metals Industry Association, said in a phone interview, adding the restarts weren’t a breach of the December accord because the pact allowed for flexibility in production. Prices of the metal used to make everything from window frames to aircraft have climbed more than 20 percent from a low in November on the Shanghai Futures Exchange as Chinese policy makers signaled their willingness to bolster growth. The new production may reverse a decline in...
Aluminium in China jumped to its highest price point in about six months. Chinese production seems to have fallen sharply over December and January which would help explain the strength of the local rally in prices. Meanwhile, according to the International Aluminium Institute (IAI), non-Chinese global output rose by 3.7 per cent in the first two months of 2016, an acceleration from growth of 2.5 per cent in 2015. That’s a surprising outcome for a market burdened by high stocks and with prices hovering near a six-year low. Higher production excluding China has also led to steady aluminium Midwest premiums, which are hovering near $0.09 per pound. Aluminium has also recently moved from backwardation to contango as new supply has come in. Aluminium prices missing the broad metals rally...
Chinese aluminium smelters will stand to benefit as China vows to expand power transmission and distribution reform to more regions, SMM understands. The reform will cover another seven provinces and one more region in 2016 and the whole country by 2017, China's National Development & Reform Commission (NDRC) announced recently. Power tariff cuts in the initial five provinces covered by the reform totaled 5.56 billion yuan in 2015. Another five provinces, namely Yunnan, Ningxia, Guizhou, Anhui and Hubei, were added in the reform in 2015, according to announcement by the NDRC.
About 51 per cent of the 45 Chinese aluminium smelters surveyed by SMM expect aluminium prices to rise this week. Those optimists see SHFE 1606 aluminium rising above RMB 12,000/mt and LME aluminium advancing above USD 1,550/mt. First, aluminium stocks in China’s five major markets fell sharply. It will take only about six weeks for aluminium stocks China’s five major markets to drop to 400,000-500,000 mt at current destocking pace. Aluminium prices used to get support when stocks fell to 400,000-500,000 mt during 2013-2015, and this year will be no exception. Second, improved downstream consumption and Chinese macro-economic data will also bode well for aluminium prices. Third, technical side is positive for SHFE aluminium. Another 38 per cent see SHFE 1606 aluminium stabilizing at RMB...
