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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Aluminium settled up 0.75% at 101.25 supported by expectations of a mild improvement in demand from top user China. China’s primary aluminium imports surged 40.65% MoM to 21,800 mt in August, customs data showed. In August, primary aluminium imports were largely under two trade modes, namely feeding processing trade and goods in bonded areas (including pilot areas under customs supervision). Primary aluminium imported under these two trade modes is either sold overseas after being processed or stored in bonded zones, rather than being traded in China’s domestic market. In overseas market, the euro zone’s final manufacturing PMI was 52.0 in September. ISM’s US manufacturing PMI was 50.2 in September, slightly below 50.6 expected. The US non-farm sector created just 142,000 jobs in...
LME aluminium may break a support at $1,566 per tonne and fall towards the next support at $1,553. These supports are identified respectively as the 38.2 percent and the 14.6 percent Fibonacci projection levels of an upward wave c, the third wave of a three-wave cycle from the August 24 low of $1,506. This wave has been developing within a wedge, the lower trendline of which suggests a target at $1,553 as well. Resistance is at $1,580, the 61.8 percent level, a break above which could lead to a gain to the 76.4 percent level at $1,588.
The output of the ten nonferrous metals gained 9.4% from a year earlier to 33.87 million tons in the first eight months of this year, according to the latest report released by the National Development and Reform Commission (NDRC). According to the statistics, the country's aluminium electrolytic output grew 12.2% year on year to 21.07 million tons in the eight-month period, while the output of copper, Zinc and alumina oxide expanded 8.2%, 10.1% and 11.5% over the previous year to 5.07 million tons, 4.11 million tons and 37.87 million tons, respectively. Meanwhile, the output of lead shed 4.1% year on year to 2.58 million tons during the eight-month period. Last month, the average prices of aluminium electrolytic, Zinc and copper futures on the Shanghai Futures Exchange saw a decline to...
PT Indonesia Asahan Aluminium (Inalum) has set a target of producing 244,000 tons of aluminium in 2016. President Director Winardi Sunoto, said on September 8, Thursday, that the companys production target for 2015 had been set at 255,300 tons. "Unlike in 2016, Inalums production will be in the form of alloy and billet," he said. Diversification is one of the companys strategies, which has now become a state-owned company. Winardi said the company had set production targets until 2020, with the target for 2017 set at 233,500 tons, for 2018 at 226,000 tons, for 2019 at 316,000 tons and for 2020 at 500,000 tons. He added that to increase production, considerable electricity would certainly be needed and therefore a new power plant was needed to be built. In connection with that, he also...
The London Metal Exchange has signed up nine warehouse for its new aluminium premium contracts due to be launched in November, a crucial step towards ensuring their acceptance and use. Warehouse companies that will get involved in the premium contracts include Henry Bath, majority-owned by China's CMST Development, and Pacorini, the exchange said in a statement. The new contracts - one each for the United States, Northern Europe, East Asia and South East Asia - need warehouses to create warrants which can be traded by consumers and producers and other market participants such as funds. Warrants are legal ownership documents for metal stored in LME warehouses. Premiums are paid over the LME cash price to cover the cost of freight and insurance, and reflect regional demand and supply....
India’s primary aluminium output will hit 2.5 million tonnes in fiscal 2015-2016, observed Nalco’s managing director T K Chand. India’s demand for the light metal grew significantly in 2014 due to increasing investment by the central government in power transmission, a trend that is likely to continue through 2015, T K Chand was quoted as saying. In particular, beverage cans, alloy wheels, automobile bodies, railway coaches will be important drivers of aluminium consumption in coming years, T K Chand added.
The latest available data suggests the rising supply situation is likely to further inflate the global aluminum stock levels. The stock levels are most likely to exceed 20 million mt in 2019, the research note said. According to the analysts, the rapid pace of growth in the metal supply poses big threat to the market. Aluminum inventory levels had hit record highs of 13.7 million mt at the end of 2014. The global aluminum supply witnessed a growth of 8.8% as against the demand growth of 6.6% during the year. The demand is expected to outpace supply growth during 2015 to 2020. Despite this, global aluminum inventory levels are expected to increase in the wake of increased exports of semi-finished products from China. Further, lower energy costs may ramp up aluminum production around the...
Lightweight metals leader Alcoa reported a third quarter profit as its value-add and upstream portfolios delivered solid results in the face of strong market and currency headwinds. Alcoa has been transforming by building its value-add portfolio for profitable growth and creating a globally competitive upstream business. The company’s successful multi-year transformation will culminate with the launch of two Fortune 500 companies, one value-add focused and the other upstream focused, expected in the second half of 2016. Alcoa reported third quarter 2015 net income of $44 million, or $0.02 per share, including $65 million in net unfavourable special items. Special items included restructuring-related costs to optimize the upstream portfolio and transaction costs, partially offset by gains...
LME aluminium looks neutral in a range of $1,545-$1,573 per tonne, and an escape will point a direction. The range is formed by the October 2 low and the 50 percent Fibonacci projection level of an upward wave c, the third wave of a three-wave cycle from the August 24 low of $1,506. A break below $1,545 could cause a loss to $1,517, based on the range of $1,545 and $1,573, while a break above $1,573 could open the way towards $1,588, the 76.4 percent level.
Credit Analysis and Research Ltd. (CARE), one of the world's premiere credit rating agencies, has revised its grade for Hindalco Industries' non-convertible debentures from 'AA+' to 'AA' on continued moderation in profitability and debt protection parameters. The debt amount involved is INR 6,000 crore. Hindalco is part of the Aditya Birla Group. The rating is also AA for the long-term and short-term bank facilities, of INR 31,059 crore. The latter ratings and revision in the long-term one for the debentures factor in the continued moderation in the profitability and debt protection parameters, as compared to the envisaged levels. The ratings also factor in the increased cost of production due to premium paid for acquisition of captive coal mines in auctions held in February 2015, CARE...
LME aluminum shot up to USD 1,592/mt after opening at USD 1,559/mt on October 7. The light metal fell back later in the day, but then rallied to USD 1,577/mt. In overseas market, the euro zone’s final manufacturing PMI was 52.0 in September. ISM’s US manufacturing PMI was 50.2 in September, slightly below 50.6 expected. The US non-farm sector created just 142,000 jobs in September, shy of 201,000 expected. US jobless rate was 5.1% in September, unchanged from August. Depressed data eased expectations for rate hike later this year. The US dollar index fell from 96.2 on September 30 to 95.4 on October 7 as a result. Global stock market rose during the week-long holiday in China. Dow Jones industrial index rose to 16,766 on October 7 from 16,285 on September 30. In China’s domestic market,...
Facing the twin onslaught of galloping imports and meltdown in global prices, the domestic aluminium industry on Wednesday made a strong pitch for a safeguard duty breather in its meeting with revenue secretary even as its demand for doubling import duty to 10% remains unanswered. Sources said representatives from all three major domestic aluminium producers - Vedanta, Hindalco and Nalco - under the aegis of Aluminium Association of India (AAI) met revenue secretary Hasmukh Adhia and appraised him that since 55% of domestic demand is being met through imports, nearly half of their 2.1 MT capacity is lying unutilised. “The prices of the metal have also crashed. Since April 2011, aluminium prices at London Metal Exchange (LME) have dropped by 42% from $2,623/tonne to $1,540/tonne in August...
Escalating power cost is going to be the single critical factor for the Chinese aluminium smelters trying to stay competitive in the domestic as well as international market- China Cheng Xin International Credit Rating Co. (CCXI) made this observation amid slowing Chinese economy and somewhat declining demand for aluminium. Currently, Chinese aluminum smelters source power mainly in three ways: grid power, captive power, or by purchasing power directly from power plants. High grid power tariffs are increasingly making aluminum smelters economically unviable against falling aluminum prices . Local governments are encouraging aluminum smelters to sign power purchasing agreement directly with local power plants via a market-based mechanism. This has helped reduce cost of production to a...
LME aluminium is expected to retest a resistance at $1,573 per tonne, with a good chance of breaking above this level and rising more towards a range of $1,580-$1,588. The resistance is provided by the 38.2 percent Fibonacci projection level of an upward wave c, the third wave of a three-wave cycle from the Aug. 24 low of $1,506. It temporarily blocks the way towards the range formed by the 61.8 percent and the 76.4 percent levels. However, this wave is capable of travelling to $1,602, the 100 percent level. The resistance thus looks vulnerable. Only a break below $1,553, the 14.6 percent level, could confirm a resumption of the downtrend from the Sept. 9 high of $1,655.50.
Scientists in the US have assembled the first ever optical rectenna - a device that’s part antenna, part rectifier diode (containing calcium and aluminium), and uses the functions of both to convert light into a direct electrical current. The device uses an array of aluminium oxide coated carbon nanotubes that function like tiny antennas to capture light, and from this it generates an oscillating charge that travels through the rectifier, which then switches on and converts the alternating current (AC) into a direct current (DC). It’s taken scientists more than 40 years to get light working in this way, and the invention could lead to new technologies for converting heat waste into electricity and more efficiently capturing solar energy - without the need for cooling. "A rectenna is...
LME Aluminium prices averaged at $ 1588.8 per tonne by the end of September 2015, down 20% from month ending September 2014. International Aluminium Institute (IAI) that measures the production trend in the world has come out with its latest numbers. IAI has mentioned that the trend of Aluminium production again moved to higher side. In August 2015, World Aluminium markets moved to record production numbers. Data estimates from International Aluminium Institute (IAI) showed that the total primary Aluminium production reached 4.95 million tonnes in September 2015 against 4.92 million tonnes in July 2015. This marks an increase of 0.60% on a monthly basis. The production of Aluminium in August 2014 was 4.48 million. This means that Aluminium production increased by 10.5% on a yearly basis....
Lightweight and high performance metals leader Alcoa announced that Roy Harvey, Executive Vice President, Human Resources and Environment, Health, Safety and Sustainability, is appointed President of Global Primary Products (GPP), succeeding Bob Wilt, effective immediately. Harvey previously served as both Chief Operating Officer and Chief Financial Officer of GPP, Alcoa’s upstream business. The Company recently announced plans to separate the upstream and value-add businesses into independent publicly-traded companies. “Roy Harvey is an excellent leader to continue the transformation of our Global Primary Products Group into one of the industry’s strongest global competitors,” said Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer. “He has a strong track record of success...
The inclusion of Iranian Aluminium Co (“Iralco”) by the Council of the EU in the EU’s nuclear proliferation sanctions on Iran has been annulled by the CJEU in Case T-158/13 Iranian Aluminium Co v Council. The judgment was given on 15 September 2015. Iralco had been subject to sanctions since 2012 for allegedly assisting other designated entities to violate the provisions of the UN and EU’s Iran sanctions, supporting Iran’s proliferation-sensitive nuclear activities, and contracting to supply aluminium to Iran Centrifuge Technology Company, an entity subject to EU sanctions. Iralco denied the Council’s reasons for listing, and the Council produced no supporting evidence in response. The listing was therefore annulled on the basis that the Council had made an error in its listing...
