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...
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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<p>For the fifteenth year in a row, lightweight metals leader Alcoa has been named as one of the world’s leading companies for sustainability on the Dow Jones Sustainability Indices (DJSI) — a globally recognized and reputable benchmark for corporate responsibility and sustainability. Alcoa was again recognized as the Aluminum Industry Leader on the Dow Jones World Index.</p> <p><span></span><br /><br />“As we prepare to launch two strong companies in the second half of 2016, we will continue using our innovation, creativity, and passion to deliver net-positive benefits to the environment, communities where we operate, our employees, and our shareholders,” said Kevin McKnight, Chief Sustainability Officer and Vice President, Environment, Health & Safety.<br...
<p>According to SMM report, LME aluminium dropped below the 5-day moving average and will trade in a close range of USD 1,565-1,585/mt on Sept 12 as an aftermath of OPEC’s monthly oil report. SMM also indicates that SHFE 1611 aluminium should move between RMB 11,960-12,060/mt. In east China’s spot aluminium market, spot premiums of RMB 20-60/mt are expected over SHFE 1609 aluminium contract.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/chalco1.jpg" alt="News" width="293" height="220" /><br /><br />In the meantime China Aluminium International Trading Co. (Chalco Trading) cut its aluminium prices in three major markets of East China, South China and Southwest China on Sept 12...
<p>As reported by the Wall Street Journal, two years ago, a California aluminium executive commissioned a pilot to fly over the Mexican town of San José Iturbide, at the foot of the Sierra Gorda mountains, and snap aerial photos of a remote desert factory.<br /><br />He made a startling discovery. Nearly one million metric tons of aluminium sat neatly stacked behind a fortress of barbed-wire fences. The stockpile, worth some $2 billion and representing roughly 6% of the world’s total inventory—enough to churn out 2.2 million Ford F-150s or 77 billion beer cans—quickly became an obsession for the U.S. aluminium industry.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;"...
<p>Aluminium among all base metals is considered to be the least volatile commodity. Yet in the past one year it has experienced price swings so frequently and so widely that the analysts are sceptical that the volatility might extend further. The metal which nose-dived to $1449 (on London Metal Exchange) in January this year has recovered nearly 5 per cent on a year-to-year basis. In fact, it peaked at $1709 in mid-August only to make a reversal and slide down at $1566 per tonne on Friday, September 8.</p> <p>In India futures trade, the aluminium prices were down 0.33 per cent to INR 105.10 per kg as traders chose to reduce exposure amid weak trend at spot market. Demand for the metal was sluggish.</p> <p><img style="vertical-align: middle;"...
<p>Hydro’s elaborate remediation plan for its Kurri Kurri aluminium smelter drew applause from Australia’s new federal Labor member for Paterson, Meryl Swanson, reported industry sources. Terming the proposed initiative as possibly ‘the world’s best practice’, Swanson said on Friday last week that she was seeking briefings from the aluminium giant and from other industry experts about what was being planned for the former smelter site, where the main cause of concern was the spent pot-liner.</p> <p>According to sources close to Hydro, the aluminium producer has two lots of spent pot-liner to deal with presently. Spent pot-liners are toxic, corrosive and environmentally hazardous. From 1969 till 1993, the spent pot-liner was stockpiled near “Mount...
<p>So, we have covered the trending events to be attended from the first fortnight of September. In the meantime, aluminium market changed trends downwards. After hitting a new 13-month high in August, three-month Aluminium on the London Metal Exchange came down to $1590 level in September. China has restarted closed capacity and the supply is China market is growing up again. <br /><br />The industry is gearing up for some of the major events covering all the verticals of the aluminium value chain during the event season. Given below is a list of Top 10 Aluminium industry events to be attended in the second half September.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/ibaas.jpg"...
<p>Some Japanese aluminium buyers have agreed to pay producers a premium of $75 per tonne for shipments in the October-December quarter, reflecting softer spot premiums, two sources directly involved in the quarterly pricing talks said on Thursday.<br /><br />The deal, which marks a 17 to 19 percent fall from the $90 to $93 per tonne premiums in the previous quarter, is the second straight quarterly drop and the lowest in more than seven years.<br /><br />Japan is Asia's biggest importer of aluminium and the premiums for primary metal shipments it agrees to pay each quarter over the London Metal Exchange cash price set the benchmark for the region.<br /><br /><br /><br />The latest quarterly pricing negotiations began last week between Japanese buyers and global producers, including Alcoa...
<p>The global aluminium industry has been abuzz with the trade imbalance caused by the rise in Chinese aluminium exports. Especially in U.S., producers like Alcoa (AA) and Century have been vocal about Chinese aluminium exports damaging the U.S. and global market.<br /><br />After a dramatic rise in China’s aluminium exports in 2015 by 10% YoY and being criticised by its trade partners for unethical export, China announced that it would curtail its excess aluminium capacity. Chinese aluminium production has however dropped 3.1% YoY during January to July. Cut down on capacity coupled with a rise in domestic demand kept Chinese aluminium exports in check so far.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;"...
<p>The U.S. Environmental Protection Agency (EPA) added three mining-related sites to the National Priorities List (NPL) of Superfund sites this week. The sites include the Anaconda Aluminum Co.’s Columbia Falls Reduction Plant site, also known as the Columbia Falls Aluminum Co. (CFAC) site, in Columbia Falls, Montana, Colorado's Bonita Peak Mining District (BPMD) site and the Argonaut mine in California. <br /><br />The law establishing the Superfund program, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), requires the EPA to update the NPL at least annually and clean up hazardous waste sites.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;"...
<p>Aluminium Bahrain B.S.C. (Alba), is pleased to announce commitments of US$ 1.5 billion for the commercial loan facility to finance the Company’s Line 6 expansion project.<br /><br />Alba had originally planned to raise between US$500 million - US$750 million but increased the commercial loan facility size to US$1.5 billion due to heavy oversubscription which resulted in competitive market terms. The US$1.5 billion commercial facility will carry an interest margin of 325 basis point per annum over the London Interbank Offered Rate (LIBOR). This facility is expected to have a 7-year tenor and the principal amount repayable in eight semi-annual instalments, including a 3-year grace period on principal payments to support the Line 6 construction period.<br /> <br />The...
<p>Aluminium buyers in Japan are transitioning away from annual contracts, turning instead to purchasing their aluminium on spot markets, according to a recent article by Reuters. Significant oversupply, largely from smelters from the People’s Republic of China, has kept prices on the spot market at or near seven-year lows.<br /><br />In Asia the norm up to now for aluminium buyers has been to purchase aluminium by way of annual contracts, with premiums for metal delivered in each quarter determined by negotiations. These premiums become benchmarks for buyers across Asia.<br /><br />However, due to the continuing glut of aluminium cascading out of China, consumers that have already agreed to quarterly premiums find themselves buying at prices significantly above the current spot...
<p>LME aluminium will move in a wide range of USD 1,580-1,610/mt on Thursday. <br /><br />SHFE 1611 aluminium should move between RMB 11,890-12,050/mt.<br /><br />In east China’s spot aluminium market, spot premiums of RMB 100-140/mt are expected over SHFE 1609 aluminium contract.<br /><br /><strong>Key macroeconomic indicators for base metal prices</strong><br /><br />US crude oil inventories for last week and European Central Bank interest rate decision will be a focus of markets today. Base metals fell overnight due to rising US dollar index.<br /><br />In China’s official and Caixin manufacturing PMIs in August, import and new export order improved noticeably. When combined with yuan’s devaluation, China’s exports may improve in August. But export order...
<p>In preparation for its previously-announced separation into two industry-leading companies, Alcoa Inc. has named the members of the Boards of Directors for the future Arconic Inc. and Alcoa Corporation.<br /><br />To ensure continuity and retention of valuable Alcoa Inc. experience, each new company’s board will include members of the current Alcoa Inc. board, who will serve alongside new directors appointed after a comprehensive search. The new boards will assume their responsibilities upon completion of the Company’s separation, which remains on track for the second half of 2016.<br /><br />“We have established two world-class, diverse boards for Arconic and Alcoa Corporation to accelerate value for the shareholders of each company,” said Alcoa Chairman and...
<p>Aluminum Association has published a statement regarding the recently concluded bilateral dialogue between the U.S. and China during the G-20 Summit. The White House released a fact sheet following the meeting where they cited the issue of aluminium excess capacity and how U.S. and China would work together to address the issue.<br /><br />“The United States welcomes China’s supply-side structural reform program, which has cutting excess capacity as one of its key objectives. The United States and China recognize that due to a weak global economic recovery and depressed market demand, the excess capacity of the electrolytic aluminium industry has increased and become a global issue requiring collective response. Both countries are to work together to address the...
<p>The US dollar index fell on negative US economic data. This will help underpin LME aluminium at USD 1,585-1,600/mt. Base metal prices on the SHFE are expected to continue diverging on Wednesday, Shanghai Metals Market foresees. <br /><br />“The dollar weakened overnight, but base metals made little response to this, and base metal prices are expected to continue diverging today,” SMM says. <br /><br />SHFE 1611 aluminium should move around RMB 12,000/mt, with trading band between RMB 11,950-12,050/mt. <br /><br />In east China’s spot aluminium market, spot premiums of RMB 90-130/mt are expected over SHFE 1609 aluminium contract.<br /><br /><strong>Key macroeconomic indicators for base metal prices</strong><br /><br />Germany’s industrial output in July and...
<p>Japanese aluminium buyers are looking to crimp the amount of the metal they purchase via annual contracts, instead turning to spot markets where premiums have in recent months dropped to their lowest in over seven years amid a persistent supply glut.<br /><br />Most aluminium buying by Asia's biggest importer of the metal is carried out through annual contracts, with premiums for delivered metal set each quarter via negotiations that act as a benchmark for the region.<br /><br />But with spot metal premiums falling since hitting this year's highs around March, sources at buyers said quarterly negotiations had locked them into prices well above those in the market.<br /><br />"Lots of inventories are out there and we can get better deals if we buy them in spot," said a source at a...
<p>LME aluminium will fall further to USD 1,565-1,590/mt. <br /><br />SHFE 1611 aluminium should move at RMB 11,800-12,000/mt, with short selling pressure eased. <br /><br />In east China’s spot aluminium market, spot premiums of RMB 110-150/mt are expected over SHFE 1609 aluminium contract.<br /><br />Key macroeconomic indicators for base metal prices<br /><br />US August LMCI, the US IBD consumer confidence index in September and eurozone annualized Q2 GDP are slated for release today. Base metals are expected to diverge today.<br /><br />Disappointing US non-farm employment and salary figures in August bode ill for US CCI.<br /><br />Market expectations of a Fed rate hike in September decreased due to weakening non-farm payrolls in the US. US non-farm employment data are...
<p>Aluminium stocks in five major markets of China soared 53,000 tonnes in August, the biggest growth trend in nearly five months, showed statistics provided by the Shanghai Metals Market (SMM).<br /><br />According to the analysts, the new and restarted aluminium smelters will keep adding to the metal supply in September and downstream aluminium consumption will continue to recover. It is expected that aluminium stocks would extend their upward trend.<br /><br />The below table shows aluminium stock details in five major Chinese markets:<br /><br />Unit: 1,000 tonne<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/05.09.2016.png" alt="News" width="497" height="163" /><br />Aluminium prices...
