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>Despite a massive power failure that struck one of its plants this month, mining giant Vedanta has maintained the <a href="http://www.alcircle.com/primary_aluminium/newscircle/market/detail/24835/vedanta-to-produce-15-mt-aluminium-in-fy17" target="_blank">production guidance</a> for its aluminium business at 1.2 million tonnes per annum (MTPA) for the current financial year. <br /><br />"The current run rate of aluminium production is around 1 MTPA and the overall 2016-17 volume guidance remains unchanged at 1.2 MTPA," the company said in a regulatory filing today.<br /><br />In end of July 2016, the company has completed commissioning of pots at the first line of its 1.25 MTPA Jharsuguda-II aluminium smelter. The commissioning of the second line too commenced in July with 65 pots...
<p>The State-run aluminium producer Nalco today submitted the copy of public announcement regarding its INR2,835 crore offer to buyback 64.43 crore shares that will open on August 30. The announcement along with the letter of offer for the shareholders was submitted to the stock exchanges where the Navaratna PSU is listed. <br /><br />SBI Capital Markets has been appointed manager for the offer, Nalco said in a regulatory filing. <br /><br />"The buyback offer will open on August 30 and close on September 14, 2016," the company added. <br /><br />The offer size comprises 22.15 per cent of the total value of fully paid-up share capital and free reserves of Nalco for the fiscal year ended March 31, 2015. In May, the aluminium major had announced plans to buyback shares not exceeding...
<p>LME aluminium will trade in a narrower range next week, while SHFE 1610 aluminium will consolidate at highs, SMM predicts.<br /><br />SMM sees LME aluminium between $ 1,620-1,680 per tonne. Low aluminium stocks in China and expectations for improving aluminium consumption in September will allow SHFE 1610 aluminium to hold at highs of 12,200-12,500 yuan per tonne. <br /><br />Aluminium ingot arrivals into east China are likely to increase slightly. Stabilizing SHFE aluminium might prompt some suppliers in spot market to sell. Spot premiums in east China aluminium market will narrow to 150-200 yuan per tonne over SHFE 1609 aluminium. <br /><br /><strong>Key macroeconomic indicators for base metal prices</strong><br /><br />In a much-anticipated speech on August 26 at the central...
<p>When an industry claims it has enough capacity, then why does it need to import the product to meet local demand? – is the question India’s Minister of State with Independent Charge for Power, Coal, New and Renewable Energy and Mines, Mr Piyush Goyal had for the country’s aluminium industry players when asked to comment on the possibility of imposing <a title="Minimum import price on aluminium" href="http://www.alcircle.com/primary_aluminium/newscircle/market/detail/25688/india-finance-ministry-mulling-mip-imposition-on-aluminium-to-stem-surging-cheap-imports" target="_blank">minimum import price</a> on the metal.</p> <p>“I have heard that over 45 per cent of India’s requirement is being imported. Why should it be imported when we have enough...
<p>According to China’s General Customs data published on August 24, exports of aluminium semis during January to June period declined 9.1 per cent to stand at 2.02 million metric tonnes (mt) from 2.22 million mt from the corresponding period previous year. Nevertheless, the export volumes have been significant enough to add a downward pressure on the global primary aluminium market, observed Russian aluminium giant Rusal in its Q2 FY2016 financial report. <br /><br />Rusal said a strong headwind in aluminium prices on the Shanghai Futures Exchange put a constraint on China’s export arbitrage.<br /><br />According to the Customs data, the country exported 690,845 mt aluminium bars, rods and extrusion profiles during January-July period, netting a 9.5 per cent increase from the...
<p>The world's leading fabricated aluminium product manufacturer China Zhongwang Holdings Limited announced its unaudited consolidated results for the first half of the current financial year ended 30 June 2016. The Group's external sales volume increased by 6.8 per cent year-on-year to approximately 368,000 tonnes and total revenue totalled at approximately RMB7.68 billion. The rise in high-end products sales revenue contributed to the year-on-year gross margin expansion by 4.5 per cent. <br /><br />China Zhongwang's adjusted net profit scaled higher by 0.5 per cent to RMB1.51 billion vis-a-vis the corresponding period previous year. Adjusted earnings per share stood at around RMB0.21. The Board of Directors has declared an interim dividend of HK$0.11 (approximately RMB0.09) per share to...
<p>The first half of the year 2016 is over and the second half of the year is marching ahead with some positive changes in the LME price and global aluminium demand supply scenario. Prices of LME aluminium gained about 10 per cent in the first half of the year. Compared to LME, Shanghai aluminium prices rose around 13 per cent. Though it is a positive growth, the levels are generally still lower when compared to the same period of 2015. To give support to the aluminium prices both ex-china and China smelters cut substantial output late last year.</p> <p>Three-month Aluminium on the London Metal Exchange hit a new 13-month high in August, retaking the $1,700 level. Simultaneously, stocks in the London Metal Exchange warehouses and Aluminium inventories in Shanghai Futures...
<p>The US Fed Chairwoman’s speech at the meeting in Jackson Hall will come under the spotlight today. Crude oil prices will fluctuate widely on positive and negative news. LME aluminium will move between USD 1,635-1,655/mt.<br /><br />SHFE 1610 aluminium will move at RMB 12,250-12,430/mt. <br /><br />In east China’s spot aluminium market, spot premiums of RMB 130-170/mt are expected over SHFE 1609 aluminium contract.<br /><br /></p> <p><img style="vertical-align: middle; display: block; margin-left: NaNpx; margin-right: NaNpx;" src="http://www.alcircle.com/uploads/images/LME%20aluminium%20price(2).jpg" alt="News" width="490" height="381" /></p> <p><br /><strong>Key macroeconomic indicators for base metal prices</strong><br /><br />Market will eye US Fed Chairwoman’s...
<p>On Wednesday’s night trading, SHFE 1610 aluminium fell to RMB 12,280/mt after opening at RMB 12,440/mt, and ended at RMB 12,320/mt. <br /><br />On Thursday, SHFE 1610 aluminium opened at RMB 12,320/mt, and fell to RMB 12,290/mt on short selling. The most active contract then rallied due to short covering, ending at RMB 12,340/mt. Trading volumes were up to 114,524 lots, and positions were down 6,942 to 184,048. Both longs and shorts are cautious at current price level.</p> <p> </p> <p><strong>SHFE Market Movement</strong><br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/SHFE%20market%20movement(1).jpg" alt="News" width="653" height="87" /></p> <p><br /><span>On Wednesday,...
<p>On Thursday, August 25, Aluminium Corporation of China Ltd (Chalco) reported the results for the first half of 2016. The company posted a sharp rise in net profit mainly because of a general recovery in aluminium prices during the first half of the year.<br /><br />As reported in a filing on the Shanghai stock exchange, the state-controlled leading producer of primary aluminium and alumina in China has posted a net profit of 57.4 million yuan ($8.62 million) for H1 2016 compared with 1.5 million yuan profit for the same period of 2015.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/GraphEngine.png" alt="News" width="512" height="366" />Prices of LME aluminium gained about 10 per cent in...
<p>Russian Aluminium major UC RUSAL announces its results for the 2nd Quarter and 1st Half ended 30 June 2016. Along with reporting the financial results, the company also reports global aluminium market trends for H12016 and its forecast for the rest of the year.<br /> <br /><strong>Highlights for the first half of 2016</strong><br /><br />• Global aluminium demand grew by 5.4% YoY as a result of strong demand in China, Europe, other Asia, North America and India.<br />• Global aluminium demand will increase by 5.4% YoY to 59.5 million tonnes in 2016, driven by ex-China growth of 3.5% to 28.5 million tonnes and China growth of 7.2% to 31.0 million tonnes.<br />• World Primary aluminium production ex-China rose by 1.5% YoY to 13.3 million tonnes. Though there was...
<p>Mining giant BHP Billiton spin-off South32 posted a net loss of $US1.62 billion ($A2.13 billion) in the full year ending July 31 vis-a-vis a $US28 million profit last financial year. The heavy write-downs in the miner's manganese, alumina and coal operations reflected the slump in commodities prices.<br /><br />According to an official release by South32, the diversified mining company's underlying earnings (excluding non-cash impairments) and the impact of foreign exchange movements dropped 76 per cent to US$138 million. <br /><br />The company said it was on track to achieve its objective to reduce unit cost of production (forecast) by 2016-17 end once it had completed restructuring its major operations. <br /><br />Chief executive Graham Kerr said, “Twelve months on, South32...
<p>Russian Aluminium major UC RUSAL announces its results for the 2nd Quarter and 1st Half ended 30 June 2016. The aluminium industry remained under strong pressure throughout the 1st half of the year due to the volatility in the commodity market. There was a slight recovery of 3.7% in the LME prices to USD1,571 during the second quarter of 2016. The average sales price increased by 2.8% to USD1,712 but the average realized product premium for the same period decreased by 5.8%.<br /><br />RUSAL reports a revenue drop of 18.0% to USD 3,896 million YOY in the first half of 2016 in comparison to USD4,750 million in H1 2015 mostly due to lower LME aluminium price and 54.5% decrease YOY in average realised premiums to USD167 per tonne in H12016. This was slightly offset by the 5.0%...
<p>According to the analysts at Shanghai Metals Market, the base metal industry expects that the US Fed Chairwoman, in likelihood, will deliver 'hawkish speech' at the upcoming conference scheduled Friday, which will strengthen the US dollar. The speculation drove EIA crude oil stocks up. The market expects, according to SMM, the impact from upcoming OPEC oil output freeze meeting will fade bringing crude oil prices down. Aluminium traded on LME will stand somewhere between USD 1,635-1,655/mt.<br /><br />Market expectations for the easing of monetary policies are cooling, which, analysts believe, will keep longs cautious. SHFE 1610 aluminium will hover in the range of RMB 12,240-12,450/mt. <br /><br />Aluminium spot premiums of RMB 80-120/mt in east China's market are expected over SHFE...
<p>The government of Bosnia and Herzegovina announced its plans to offer stake in Aluminij d.d. Mostar aluminium smelter, which will be put up for sale by end of 2016, reported Goran Djukanovic on <a title="Aluminium Insider" href="http://aluminiuminsider.com/bosnian-government-plans-sale-of-aluminij-d-d-mostar/" target="_blank">Aluminium Insider</a>. The sale process forms a part of a privatisation initiative that was launched in 2007, involving five other companies. The Bosnian government had halted the drive despite a reasonably high level of interest shown by international companies. This is going to be the second attempt by the government to sell the aluminium assets at Aluminij. <br /><br />However, unlike previously, this is going to be a tad difficult task for them as the smelter...
<p>Russian aluminium behemoth UC Rusal is expected to post a quarter-on-quarter eight per cent surge in core earnings in the second quarter of FY2016-2017, according to a survey conducted among analysts from six global banks. <br /><br />Analysts are of the opinion that Rusal's Q2 FY2016-17 earnings before interest, taxation, depreciation and amortisation (EBITDA) will see a rise from $312 million in the first quarter to $336 million. They attribute this increase in earnings to the recent recovery in global aluminium prices. <br /><br />Aluminium traded on the London Metal Exchange (LME) has improved 11 per cent since 2016 beginning when prices were at their months' lows. However, the weakness in the light metal market is still anticipated to be weighing on the aluminium major's...
<p>China is simply not showing any signs of slowing down. The momentum at which the country has been churning out aluminium in the last several months is still continuing. Analysts at the Shanghai Metals Market (SMM) are of the opinion that aluminium production in the domestic market will grow further in August owing to the release of new and restarted aluminium smelting capacity. <br /><br />SMM estimates, China's total aluminium output will stand at 2.69 million tonnes in August, up from 2.68 million tonnes in July.<br /><br />Annualized operational aluminium capacity across China now totals 32.45 million tonnes, with overall utilization rate averaging 82.9 per cent in the industry, showed a recent SMM survey. <br /><br />China Aluminum International Trading Co. (Chalco Trading) further...
<p>Metal and Mineral giant Rio Tinto is re-considering sale of its aluminium assets at three of its Australian smelters- Tasmania's Bell Bay, Queensland's Boyne and New South Wales' Tomago and is seeking buyers for the same. The dual-listed miner has engaged an investment bank to handle the entire selling operations.<br /><br />Rio Tinto had tried divesting its aluminium assets several times previously, but this time, the desire seems even greater under the leadership of new chief executive Jean-Sebastien Jacques.<br /><br />According to the company sources, the Australasian aluminium division of the miner has a book value of $US1.2 billion. While pinpointing logical buyers isn't easy - sources said Alcoa is unlikely to be interested. <br /><br /><img style="vertical-align: middle;...
