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>As a standard reflection of dropping aluminium inventories dropped in LME warehouses as well as Shanghai Futures Exchange, aluminium prices have been showing an upward trend with the LME closing at $ 1,645 and SME closing at $ 1,908 on August 1. Aluminium prices climbed signaling tighter supplies in both the markets.<br /><br />Aluminium inventories in Shanghai Futures Exchange warehouses fell to the lowest in August 1st week since 2011.</p> <p><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/LME%20INVENTORY.png" alt="News" width="512" height="366" /><br /><br />According to an SMM report, Aluminium stocks in China’s five major markets including Shanghai, Wuxi, Nanhai, Hangzhou and Gongyi continued falling after hitting the 5 year’s...
<p>The state-owned aluminium producer National Aluminium Company (Nalco) is aiming at paring down aluminium output cost by eight-nine per cent to increase long-term profitability in a changed business scenario. The company aims to do that by ramping up production through brownfield expansion and by switching to energy efficient technology. <br /><br />"Since the price of aluminium in the international market remains subdued and is likely to remain so for some time due to Chinese factor, we are working on a strategy to cut production cost and maintain profitability", said Nalco chairman cum managing director T K Chand.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Nalco(1).jpg" alt="News"...
<p>According to the latest market study released by Technavio, the global non-ferrous metals market is expected to grow at a CAGR of close to 5 per cent during 2016-2020. The market will be largely driven the aluminium industry growth. <br /><br />The global aluminium market shipped 70.37 million metric tons of products in 2015 and this will reach 88.97 million metric tons by 2020, growing at a CAGR close to 5 per cent. In terms of demand, China is the largest market for aluminium, accounting for 44 per cent of the global market due primarily to its large base of manufacturing companies. However, it has been experiencing a slowdown in growth rate in the last few years due to the import and export duties imposed by partner countries and the closing of smelters. <br /><br /><img...
<p>Anglo-Australian mining titan Rio Tinto reported financial results for the first half of 2016 yesterday. The firm credits strong performances in bauxite and aluminium as contributing to their strong performance in the half.<br /><br />“Rio Tinto has generated net cash from operating activities of $3.2 billion and reported underlying earnings of $1.6 billion, against a backdrop of continued volatility and lower commodity prices,” explained Rio Tinto chief executive Jean-Sébastien Jacques. “We focus on delivering value to shareholders. This focus is unrelenting, with further cost reductions achieved in the half and EBITDA margins of 33 per cent. With our strong operating cash flows, tight control over capital expenditure and progress on divestments, the balance...
<p>Aluminium contract traded on London Metal Exchange fell 0.6 per cent to close slightly lower amid growing pressure on base metals following a rise in the US dollar value. <br /><br />On Wednesday, US dollar gained strength following ADP’s positive private payroll data. As strong US dollar is negative for the dollar-denominated commodities prices of the base metals including that of aluminium on LME was weighed down due to decrease in demand from holders of international currencies. Aluminium remained range bound within $1614-$1643 per ton during Wednesday's trading. The commodity is meeting resistance at $1688 and finding support at $1592.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;"...
<p>Press Metal Bhd is on its way to making a comeback as it has received full claims from its insurer to pay off for losses incurred from last year’s fire incident at its Samalaju aluminium smelter, reported industry sources. <br /><br />All the smelting pots at Samalaju facility have been running in full capacity since June this year. Things have turned further conducive for Press Metal with aluminium prices gaining strength, finally, after hitting their months' lows.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Press%20Metal.jpg" alt="News" width="420" height="480" /><br /><br />“Press Metal told Bursa Malaysia that it has received the final claim of RM45 million from its...
<p>Aluminium smelters in China posted big profit in July, despite rising costs, SMM learned.<br /><br />Smelters surveyed by SMM reported average profit to 1,250 yuan per tonne in the week ending July 29.<br /><br />Average cost at smelters in SMM’s survey sample rose 2.1 per cent from June to 10,752 yuan per tonne in July, driven mainly by an 8.33 per cent increase in power costs. Rising coal prices pushed up captive power costs at smelters. <br /><br />Alumina cost slid 1.63 per cent, while prebaked anode cost was up 1.24 per cent, and cost for other supplementary materials dropped 2.84 per cent.</p>
<p>Aluminium is consolidating, having failed to find follow-through buying momentum above $1,640 yesterday, as implied by the long upper shadow.<br /><br />Prices have encountered resistance from the 20 DMA at $1,638 but are so far holding support at $1,630 from the 40 DMA and the UTL formed by January/February/June lows. Resistance above is seen at $1,660/1,700. The stochastics remain supportive. Support below is seen at the 55 and 100 DMAs at $1,608 and 1,586 respectively. There remains room back to $1,520 to maintain the overall uptrend established so far this year.<br /><br />Macro factors<br /><br />LME stocks remain down a net 595,750 tonnes or 21 percent so far this year despite recent inbound deliveries. The c-3m spread stands at $9.5 contango. Longer-dated spreads have tightened...
<p>All upcoming aluminium projects in Inner Mongolia will now have to adopt a new price-base power tariff system. According to a recent Shanghai Metals Market report, the government has decided to implement a new pricing mechanism, which is based on aluminium prices in the Shanghai sport market.<br /><br />Under the price-based tariff system, power plant sells power to power grid company at 0.15 yuan/kwh when aluminium prices in Shanghai spot market are 11,500 yuan/tonne. Power grid company charges aluminium smelter 0.1 yuan/kwh fees. That means, aluminium smelters need to pay 0.25 yuan/kwh power tariffs.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Inner%20Mongolia.jpg" alt="News"...
<p>SHFE 1609 aluminium, after opening at RMB 12,290/mt, fell to RMB 12,240/mt on Friday’s night trading. Prices of the white metal then rallied to RMB 12,355/mt on short covering, ending at RMB 12,340/mt.<br /><br />On Monday, short selling sent SHFE 1610 aluminium down to RMB 12,195/mt after opening at RMB 12,240/mt. It was the most active contract on the bourses. Finally, the futures contract closed at RMB 12,235/mt. Aluminium trading volumes were up 3,878 lots to 62,530 lots, and positions were up 4,542 to 149,648. SHFE 1610 aluminium will test resistance at the 20-day moving average in the short term, observes Shanghai Metals Market.<br /><br />According to an SMM survey, of the 43 Chinese aluminium smelters about 56 per cent were found to be expecting SHFE 1610 aluminium to...
<p>Aluminium Bahrain B.S.C. (Alba), home-base of the Line 6 Expansion Project, has awarded GE and GAMA Consortium the Engineering, Procurement and Construction (EPC) contractor for its Power Station (PS 5).<br /><br />Under the terms of the contract, GE and GAMA Consortium will be responsible to design, engineer, procure, construct and commission 1,792 megawatts (MW) Combined Cycle Gas Turbine Power Plant with an efficiency of 54%. GE will provide three 9HA gas turbines, three steam turbines and three high recovery steam generators (HRSGs) for the project.<br /><br />Commenting on this appointment, Alba’s Chairman of Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa said: “The appointment of GE and GAMA Consortium is another significant milestone in Line 6...
<p>Vedanta Resources Plc. releases the production report for the First Quarter ended 30 June 2016. Highlights from the aluminium section point towards a number of positives despite the volatile market and raw material insecurity, the company has been struggling with.<br /><br /><strong>Operation highlights:</strong><br /><br />• Achieved production run-rate of 1.1mtpa<br />• Complete ramp-up of first line of 1.25mt Jharsuguda-II smelter , second line commenced in July;<br />• 325kt BALCO-II smelter almost complete<br />• Second 300 MW IPP unit in Balco capitalized<br />• Final terms for Vedanta Ltd and Cairn India merger announced, transaction to complete by this financial year<br />• Gross Debt for the Group reduced by c.US$ 0.3 billion during the quarter<br...
<p>Arab International Aluminium Conference (Arabal) has roped in some of the biggest names in the global aluminium sector who will showcase their products, services and technologies at the event’s upcoming edition in Dubai, UAE.<br /><br />The 20th edition of Arabal will be held from November 22 to 24 at Madinat Jumeirah.<br /><br /><img style="display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/ARABAL-160-x-120-px.jpg" alt="News" width="320" height="280" /><br /><br />According to an official release by the Arabal organizers, a good number of specialist companies from across the aluminium value chain have already booked their spaces in the exhibition area. They will display aluminium products designed for special applications in...
<p>Manufacturing PMIs in China and major economies in the euro zone are expected to change little in July from June. LME aluminium will test resistance at the 20-day moving average and move at USD 1,630-1,650/mt. LME aluminium is unlikely to get rid of weakness, while SHFE aluminium will get support from multi-year low stocks in domestic market, SMM expects. <br /><br />SHFE 1609 aluminium will move between RMB 12,250-12,400/mt, with support at the 5-day and 10-day moving average. <br /><br />In east China’s spot aluminium market, spot premiums of RMB 140-180/mt are expected over SHFE 1608 aluminium contract.<br /><br />Aluminium stocks in China’s five major markets continued falling even after touching their lowest in seven years. When combined with low warehouse...
<p>According to the data released by the General Administration of Customs, China's total exports of unwrought aluminium and aluminium semis were 380,000 mt in June. This represents a YoY decline of 15.4%. Chinese aluminium exports have fallen about 9% YoY in the first six months of 2016.<br /><br />Total shipment of aluminium semis was down 15.7 per cent year-on-year at 32,319 million tonnes (mt) in June, whereas it stood at 184,385mt from January till June 2016, down 20 per cent from the corresponding period previous year.<br /><br />Chinese export of aluminium bar, rod, and profile declined 16 per cent YoY to reach at 4,133 mt in June. Exports of aluminium plate, sheet, and strip, aluminium tube (including accessories), and aluminium structures and components too declined YoY to stand...
<p>Southland's Tiwai Point aluminium smelter is going to stick to its electricity purchases at 572 megawatts from Meridian Energy. The smelter's majority owner, Pacific Aluminium, has declined an option to reduce the quantity it buys from electricity generator from 572 megawatts to 400. The deadline to opt that option expired today.</p> <p>Tiwai Point aluminium smelter uses about one seventh of New Zealand’s power.</p> <p>The decision to continue buying 572 megawatts of electricity means the aluminium smelter will have to cough up a higher amount for its total quantum of electricity, since the 172 megawatts will be pitched at a slightly higher price than the remaining 400 megawatts, for which the old concessionary price remains as is.</p> <p>The price of the electricity purchased by...
<p>Vedanta Limited (formerly known as Sesa Sterlite Ltd) today announced its unaudited consolidated results under Ind AS for the first quarter (Q1) ended 30 June 2016. The total Q1 revenues totalled at INR 14,364 crore, net profit amounted to INR 3,543 crore with strong margin of 32 per cent, and attributable net profit before exceptional items increased significantly from a loss of INR 62 crore in Q4 FY2016 to a profit of INR 615 crore.<br /><br />Vedanta has attributed the 15 per cent year-on-year decline of revenues to the falling commodity prices, though it has been partially offset by the ramp ups in volumes of aluminium and other metals. The higher EBIDTA margin, the company says, was a result of strong cost saving initiatives and volume ramp-up at Aluminium and Iron Ore.<br /><br...
<p>State-owned aluminium producer National Aluminium Company (Nalco) is inching towards setting up its long-awaited second aluminium smelter and power complex in Odisha within the premises of its present plant at Angul at a total cost of INR 14,000 crore.<br /><br />Earlier, Nalco had identified Sunergarh in western Odisha as the preferred site for the new smelter, but then they zeroed in on Angul to cope with certain infrastructural bottlenecks. The aluminium smelter will have an annual capacity of 0.4 million tonne and will come up at an investment of INR 10,000 crore. It will be accompanied by a 500 Mw captive power plant costing INR 3,000 crore.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;"...
