Primary Aluminium Industry News & Market Updates

28 SEPT 20263MINS

Aluminium rises to $3.63 as Gulf supply disruptions tighten global market

Aluminium prices gained 0.43 per cent as reduced Gulf production and low exchange inventories supported the market, while Chinese output and capacity restarts could limit further gains. Aluminium prices settled 0.43 per cent higher at INR 348.65 (USD 3.63) as tight physical supply conditions supported the market. Disruptions linked to the US-Iran tensions have affected aluminium availability from the Gulf region, with Gulf Cooperation Council (GCC) production falling 44 per cent year-on-year in July. Low exchange inventories have added to supply concerns. London Metal Exchange (LME) stocks remained near a 36-year low, while inventories on the Shanghai Futures Exchange (SHFE) declined 4.7 per cent from the previous week. However, expectations of improving supply have limited the market’s...

US bond fluctuations pressure nonferrous metals valuations pre-holiday continued destocking supports short-term aluminium price consolidation

28 SEPT 20267MINS

Primary AL

US bond fluctuations pressure nonferrous metals valuations pre-holiday continued destocking supports short-term aluminium price consolidation

The most-traded SHFE aluminium contract did not trade during the night session of September 24 and the daytime session of September 25. On September 24, the daytime session opened at RMB 24,230 per tonne, reached a high of RMB 24,265 per tonne and a low of RMB 24,175 per tonne, and closed at RMB 24,200 per tonne, down RMB 30 per tonne or 0.12 per cent from the previous close. Futures consolidated at highs before pulling back, with prices falling below the 5-day moving average while remaining above the 20/40/60-period moving averages. Medium and long-term moving averages maintained an upward pattern. Trading volume during the session was 98,900 lots, and open interest stood at 281,000 lots, down 8,300 lots, driven mainly by bulls closing positions. On the technical front, a death cross...

28 SEPT 20262MINS

Primary AL

LME aluminium cash bid rises to $3,253/t as Asian reference price gains 0.55% on September 25

LME aluminium prices moved higher across cash and forward contracts on September 25, while the Asian Reference Price and alumina Platts price also increased. Opening stocks remained unchanged, while cancelled warrants rose sharply. The LME aluminium cash bid price rose 0.80 per cent to USD 3,253 per tonne on September 25 from USD 3,227 per tonne on September 24 . The cash offer price showed a similar trend. It also increased 0.80 per cent to USD 3,254 per tonne from USD 3,228 per tonne. Explore the production, demand and consumption forecasts of bauxite and alumina in our report: " Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook " The three-month aluminium bid price rose 0.40 per cent to USD 3,265 per tonne from USD 3,252 per tonne, while the...

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20 APR 20172MINS

Global aluminium market in deficit during Jan-Feb 2017: WBMS

According to the latest data published by the World Bureau of Metal Statistics (WBMS), global primary aluminium market ended in a deficit at the end of the first two months of 2017. The deficit during January-February totalled 101,000 tonnes. <img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/aluminium%20capacity.jpg" alt="News" width="400" height="200" /> As per WBMS data, global aluminium supply deficit rose as high as 1.12 million tonnes for the entire last year. During January-February 2017, worldwide demand for primary aluminium was recorded at 9.85 million tonnes, up 1.02 million tonnes from the corresponding period previous year. On the supply side, global aluminium...

20 APR 20173MINS

LME aluminium likely to retest support at US$1,894/t; Chalco cuts prices

LME aluminium could not hold ground after closing at US$1,915.50 per tonne on Tuesday, April 18, the first trading day after the Easter Holidays. The light metal contract staged a technically rally during night trading on Wednesday, April 19, only to end at US$1,895.50 per tonne, down 1.04 per cent from its previous day's closing price. Shanghai Metals Market (SMM) foresees that LME aluminium will move between the 5-day and 10-day moving averages on Thursday, April 20, with price ranging at US$1,905-1,935 per tonne. Reuters analyses that LME aluminium may retest a support at US$1,894 per tonne, a break below which could cause a loss into the range of US$1,874-$1,885. As on April 19, LME official cash buyer price of aluminium stands at US$1,894.50 per tonne, cash seller...

19 APR 20171MINS

Rusal’s Deripaska controlled En+ Group makes first financial disclosure in two years

En+ Group, a Russian energy-related company controlled by Oleg Deripaska, reported adjusted core earnings of $2.3 billion for 2016 on Tuesday, April 18. The disclosure is the group’s first in two years. En+ owns 48 per cent stake in Russia’s biggest aluminium company Rusal. Financial market sources reported that the company is considering an initial public offering (IPO) in 2017. <img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/engroup.jpg" alt="News" width="517" height="234" /> En+'s adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for 2016 totalled $2.3 billion, of which Rusal accounted for $1.5 billion. Other businesses of the...

19 APR 20171MINS

Suzlon commissions two renewable projects for Nalco

Suzlon Group, one of the leading renewable energy solutions provider worldwide, has Installed and commissioned two renewable projects of 50.40 MW each for NALCO. Bothe the wind power plants are situated at Gondikota in Andhra Pradesh and Jath in Maharashtra. <img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/suzlon-wind-farms_660_101215125015.jpg" alt="news" width="448" height="305" /> The two renewable projects are likely to deliver power to over 54,000 households.  The plants can play a major role in reducing CO2 emissions up to 0.20 million tonnes every year. J.P. Chalasani, Group CEO, Suzlon Group said, "It is a proud moment for us and we thank NALCO for the faith and...

19 APR 20172MINS

MCX-aluminium futures bounce from a key support

The MCX-aluminium futures contract on the Multi Commodity Exchange (MCX) fell last week, breaking below the support at INR 124 a kg. However, the 21-week moving average at around INR 122 aided in halting the fall. The contract made a low of INR 122.25 on Thursday and has reversed sharply higher from there on Monday. It is currently trading at around INR 124. <img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/MCXAluminum.jpg" alt="News" width="517" height="339" /> Immediate resistance is at INR 125. If the contract manages to surpass this hurdle, the downside pressure will ease. Such a break can take the futures contract higher to INR 128 initially. A further break above INR 128...

19 APR 20172MINS

LME aluminium regains strength while SHFE aluminium shows ‘signs of stopping declines’

The London Metal Exchange market opened yesterday after the Easter Holidays; LME aluminium that has been falling since April 5, finally regained some strength and closed at US$1,915.50 per tonne, up 1.34 per cent from its previous close of US$1,890 per tonne on April 13, Thursday. As Shanghai Metals Market (SMM) finds it, the light metal contract will see technical rally on Wednesday, April 19, and move at US$1,890-1,930 per tonne. As on April 18, LME official cash buyer price of aluminium stands at US$1,915 per tonne, cash seller & settlement price is US$1,915.50 per tonne, 3M buyer price is US$1,928 per tonne, 3M seller price is US$1,930 per tonne, Dec1 buyer price is US$1,968 per tonne, and Dec1 seller price is US$1973 per tonne. The current LME official Opening Stock of...

18 APR 20171MINS

South32 drops plan to buy $200m Australian coal mine

Leading metal and coal mining company South32 announced that the company has dropped the plan to buy Peabody Energy's Metropolitan coal mine worth $200-million in Australia.  The company was not ready to make concessions in favour of Australian steelmakers.  <img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/coal-mining-in-poland-2-555x370.jpg" alt="news" width="336" height="226" /> South32 CEO Graham Kerr said, "To proceed with the acquisition, in light of the anticipated concessions, would have compromised the merits of the transaction and this is not something we are prepared to do."  South32 had proclaimed in November that it decided to buy...

18 APR 20172MINS

LME aluminium to open higher at US$1920/t, Shanghai aluminium ends lower

The London Metal Exchange market remained closed till Monday, April 17, for the Easter Holidays. Shanghai Metals Market (SMM) expects that LME aluminium will open higher at US$1,920-1,965 per tonne on Tuesday, April 18 (at 15:00). The market will watch out for the price support at lows, analysts observe. The benchmark price of aluminium on Shanghai Metal Exchange (SME) is displaying a fluctuating trend. The benchmark aluminium price on Tuesday, April 18 stands at US$2,079 per tonne, down 0.76 per cent from yesterday's price of US$2,095 per tonne. <img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/SMEApril18.png" alt="News" width="517" height="286" /> Aluminium futures contract...

17 APR 20172MINS

Alba secures $700m from ECA for Line 6 Expansion Project

Aluminium Bahrain (Alba), one of the largest and modern aluminium smelters in the world, has secured commitments of $700 million from Export Credit Agency (ECA) supported facilities to finance Line 6 Expansion Project.  The Line 6 Expansion Project is expected to start production by 2019. <img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Alba%20Chairman%20-%20Sheikh%20Daij%20Bin%20Salman%20Bin%20Daij%20Al%20Khalifa.jpg" alt="news" width="317" height="226" /> The Project is one of the company’s largest brownfield developments in the region. The project is expected to boost the smelter’s per-annum production by 540,000 tonnes, bringing company’s total production...

17 APR 20171MINS

Three new aluminium projects stop in Western China

According to reports cited by Reuters on Sunday, 16th April, the three aluminium projects have been stopped in Xinjiang in western China. The reason mentioned is due to breaking laws. The authority halted construction in order to curb capacity expansion. <img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Alaluminium.jpg" alt="news" width="517" height="226" /> The aluminium projects have a production capacity of 2 million tonnes.  The state-owned China Securities Times reported this on Sunday. It cited a post on the government website of Changji County in Xinjiang dated on April 14. According to the post, Xinjiang East Hope Ferrous Metals Co. Ltd., Xinjiang...

17 APR 20172MINS

LME aluminium to fluctuate at lows, SHFE aluminium soars to 4-year high

The London Metal Exchange market will remain closed on Monday, April 17, for the Easter Holidays. LME aluminium that ended the week last Friday, April 14, on a volatile note is expected to keep diverging this week. As on April 13, LME official cash buyer price of aluminium stands at US$1,889.50 per tonne, cash seller & settlement price is US$1,890 per tonne, 3M buyer price is US$1,902 per tonne, 3M seller price is US$1,902.50 per tonne, Dec1 buyer price is US$1,943 per tonne, and Dec1 seller price is US$1948 per tonne. The current LME official Opening Stock of aluminium is estimated at 1759850 tonnes, total Live Warrants is 1099250 tonnes, and Cancelled Warrant is 660600 tonnes. <img style="vertical-align: middle; display: block; margin-left: auto; margin-right:...

17 APR 20173MINS

Sohar Aluminium set to host the 21st Arab International Aluminium (ARABAL) Conference in Oman

More than 500 industry leaders and decision makers from around the world to converge in Muscat Sohar Aluminium has announced that it will host the 21st edition of the prestigious Arab International Aluminium (ARABAL) Conference and Exhibition in the Sultanate of Oman. The conference will take place from 6th to 9th November 2017 at the Shangri-La Barr Al Jissah Resort and Spa in Muscat. This year’s conference agenda will focus on “Driving Strategic Growth Across the Global Aluminium Industry”. <img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/ARABAL.png" alt="News" width="517" height="161" /> Since it’s inauguration in 1981, ARABAL...

16 APR 20174MINS

Week in Review: Mergers and technology tie-ups mark Primary Aluminium amid volatility

Primary aluminium industry this week was abuzz with news of big companies merging to create leading global entities, aluminium smelters signing technology partnerships with automation giants, and India showing strong aluminium demand prospects for the long-term. Here’s a review of the news that made an impact in the world of aluminium: Aluminium Bahrain (Alba) announced that it has resumed all power operations after power outage happened at its complex on April 5. The company said it expects to suffer a loss of 3% to 5% of its total production for 2017 due to this incident. Reduction Lines 1-4 are operating at normal levels though Reduction Line 5 is running partially and is expected to be fully operational by early...

14 APR 20172MINS

Alcoa expects its 2017 EBITDA to increase $226 mln for every $100/t rise in aluminium price

What drives aluminium producers' earnings up? There are many factors such as optimized cost of production, shipment cost control initiatives, raw material procurement and logistics, inventory management; but of all factors it is the price of the metal that has the biggest impact. The higher the aluminium prices, the better are the earnings. And based on this simple correlation, Alcoa expects that its EBITDA (earnings before interest, tax, depreciation, and amortization) for 2017 will rise US$226 million for every increase in aluminium prices by US$100 per tonne. <img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/LME3M.png" alt="News" width="505" height="374" /> Aluminium prices have built...

14 APR 20172MINS

Merger with Cairn to improve Vedanta's financial flexibility: S&P Global

Vedanta Ltd, the mining subsidiary of the UK-listed Vedanta Resources that recently completed its merger with Cairn India, will get an access to $4 billion of cash and another about $700 million a year from the merger, said S&P Global Ratings. The fund will allow Vedanta Ltd to repay its US$9 billion debt. "In our view, the merger will improve the cash flow fungibility within Vedanta Ltd by simplifying the group structure to some extent. However, it will not change Vedanta Resources' financial metrics nor will it materially improve cash flow fungibility between Vedanta Ltd and the holding company Vedanta Resources," S&P said in a statement recently. <img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;"...

14 APR 20172MINS

LME aluminium dives as US dollar index edges up, Shanghai aluminium inches higher

LME aluminium comes down below US$1,900 per tonne as the US dollar index representing greenback's strength against a basket of six major currencies edges higher. The lightmetal contract closed at US$1,890 per tonne on Thursday, April 13, down 0.89 per cent from its previous close of US$1,907 per tonne on Wednesday, April 12. Financial markets in the US, UK and European countries will close on Friday and resume trading next Tuesday, April 18. Shanghai Metals Market (SMM) forecasts that LME aluminium will hover at US$1,890-1,900 per tonne on Friday, April 14. As on April 13, LME official cash buyer price of aluminium stands at US$1,889.50 per tonne, cash seller & settlement price is US$1,890 per tonne, 3M buyer price is US$1,902 per tonne, 3M seller price is US$1,902.50 per...

13 APR 20171MINS

Alba’s recent power outage causes 3- 5% loss of total production

The Bahrain-based global aluminium smelter Alba experienced a power station outage on Wednesday April 5, 2017. The company had faced a temporary loss of power in all five Reduction Lines for approximately 3 hours. The company has restored all power operations. <img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Alba%20Aerial%20View.jpg" alt="news" width="517" height="226" /> Due to the power outage, the company is expecting a loss of 3 per cent to 5 per cent of its total production for 2017. The losses from the incident will be part of an insurance claim, the company said in a statement. Reduction Lines 1-4 are operating at normal levels though Reduction Line 5 is running partially...

13 APR 20172MINS

Outotec to deliver aluminium technology to Bahrain

Outotec has agreed with Aluminium Bahrain B.S.C. (ALBA) on the design and delivery of anode rodding shop facility for ALBA's aluminium smelter expansion in the Kingdom of Bahrain. The parties have agreed not to disclose the contract price, but this is the largest order for Outotec in close to two years. The order has been booked in Outotec's 2017 first quarter order intake.    <img style="vertical-align: top; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/13_big.jpg" alt="news" width="517" height="226" /> Outotec is to deliver fully equipped anode rodding shop as well as bath and butts material recycling facility. The scope of delivery includes process engineering, proprietary and other process equipment as...

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