LME aluminium prices eased on September 28 after rising in the previous session, with cash and forward contracts moving lower. The Asian Reference Price also declined, while a sharp rise in cancelled warrants pushed live warrants lower. The cash bid slipped 0.15 per cent to USD 3,248 per tonne from USD 3,253 per tonne , while the cash offer fell 0.17 per cent to USD 3,248.50 per tonne from USD 3,254 per tonne. Three-month aluminium prices followed the weaker trend. The bid dropped 0.41 per cent to USD 3,251.50 per tonne from USD 3,265 per tonne, while the offer was down 0.46 per cent to USD 3,252 per tonne compared with USD 3,267 per tonne. Explore the production, demand and consumption forecasts of bauxite and alumina in our report: " Global Bauxite & Alumina Market Forecast to 2036:...
Futures: The most-traded SHFE aluminium contract opened at RMB 24,000 per tonne in the night session on September 28, reached a high of RMB 24,055 per tonne and a low of RMB 23,950 per tonne, and closed at RMB 24,000 per tonne, up RMB 50 per tonne or 0.21 per cent from the previous close. Futures stabilised after a sharp decline, with prices falling below the 5/10/20/40/60 moving averages across all timeframes, turning these averages from support into resistance. Trading volume during the session was 53,872 lots, with open interest at 271,000 lots, down 3,240 lots, driven mainly by bear position reductions. On the technical front, the 4-hour MACD death cross continued, with DIFF trading well below DEA and green bars expanding significantly, indicating strong short-term bearish momentum....
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Following recent smelter shutdowns, only two companies in the US reported domestic production of primary aluminium, noted US Geographical Survey in their latest issue of Mineral Industry Surveys. Consequently, beginning in February 2016, monthly production data were withheld to avoid the release of proprietary data. According to the latest Mineral Industry Surveys data published by the USGS, at the end of April, approximately 750,000 metric tons per year of capacity was operating at primary aluminium smelters in the United States according to public statements by the two companies that own the smelters. Prices and Stocks: The monthly average U.S. market price of primary aluminium ingot increased to $0.793 per pound in April from $0.773 per pound in March. The monthly average price...
Aluminium price increases this year have been minimal. Even when metals prices were rising across the board in the first quarter, aluminium was the laggard as oversupply still kept investors away from buying it and construction demand remained tepid. However, the metal is rising slowly but steadily as investors see an opportunity to buy aluminium when prices fall short-term. Thanks to Chinese stimulus that construction demand has shot up and aluminium prices with it. A recovery in demand is a key factor supporting aluminium prices this year. Excess aluminium production in China is damaging the prospects of aluminium producers in the rest of the world, purely because of the size of China’s massive aluminium industry. China is the world’s largest producer accounting for 54.4 per cent of...
Strike threat in Norway and falling crude oil supply in Venezuela allowed crude oil prices to stay at highs. LME aluminium has been rising for two consecutive days, nearing last week’s high, and should remain strong at USD 1,625-1,645/mt today. Tight supply in domestic spot market and strong LME aluminium will allow SHFE 1608 aluminium to hover at highs of RMB 12,350-12,500/mt. In China’s spot aluminium market, spot premiums of RMB 40-80/mt are expected over SHFE 1607 aluminium contract.
China Aluminum International Trading Co. (Chalco Trading) raised aluminium prices in major markets today after two consecutive days of cuts, it said on its WeChat. For details, please see the table below: Unit: yuan/tonne Note: Chalco Trading is a full subsidiary under Chalco responsible for alumina and aluminium sales.
Lightweight metals leader Alcoa has announced a major milestone in connection with its pending separation into two strong standalone, publicly-traded companies. Alcoa Upstream Corporation (to be renamed Alcoa Corporation prior to separation) has filed an initial Registration Statement on Form 10 with the Securities and Exchange Commission (SEC). Alcoa Corporation will hold the Upstream and North American packaging businesses. The Value-Add businesses will remain in the existing company, which will be named Arconic Inc. The separation is on track to be completed in the second half of 2016. “The filing of the Form 10 is an important milestone as we prepare to launch two businesses that are well-positioned for success,” said Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer. “Alcoa...
Impact from UK leave vote is fading. Blast in Turkey and falling crude oil stocks supported crude oil prices. LME aluminium will return to levels seen before UK vote result and move at USD 1,620-1,640/mt today. SHFE 1608 aluminium has met growing resistance and should move at RMB 12,340-12,480/mt. In China’s spot aluminium market, spot premiums of RMB 30-70/mt are expected over SHFE 1607 aluminium contract. Key macroeconomic indicators for base metal prices Base metal market should continue diverging trend on Wednesday with eyes on US API and EIA reports and US annualized PCE core price index. US PCE core price index for May will likely be below April’s level, which can be reflected by the positive annualized CPI and PPI in May. But the annualized PCE core price index for May should...
Aluminium Association of India (AAI) is organizing a national seminar on 'Aluminium: The Strategic Metal' in Bhubaneswar on Thursday June 30, 2016. A number of companies and associations along with key professionals from across the country's aluminium industry value chain are expected to attend the seminar to be held at the city's Mayfair Convention. The panel of guests includes Balvinder Kumar, Secretary, Ministry of Mines, who will grace the event as the chief guest, while R K Sharma, Principal Secretary to government of Odisha, Ministry of Steel & Mines shall be the guest of honour at the seminar. A series of papers has been lined up for presentation at the meet's technical session that will follow the inauguaral session of the seminar. This includes presentations on 'Aluminium...
Quintiq, a Dassault Systèmes company and global leader in supply chain planning and optimization (SCP&O), announced today that its planning and optimization software platform has been selected by Ma'aden Aluminium to facilitate a business planning transformation programme. Ma'aden Aluminium wanted to switch from volume-driven to demand-driven production planning. To achieve its targets, it needed a planning software platform that could integrate internal planning processes, improve information flow and support optimal decision-making. Ma'aden Aluminium chose Quintiq for its scalability and optimization capabilities as well as successful track record in the industry. Quintiq will optimize the aluminium producer's internal processes and guide its employees on industry best practices and...
The Aluminum Association released yesterday the fourth edition of the Guidelines for Handling Molten Aluminum. The first edition was published in 1980. With previous updates in 1990 and 2002, this latest revision represents the hundreds of years of collective expertise in managing molten metal accumulated by many leading industry experts. The updated Guidelines are available for purchase in the Association’s online bookstore. “The Aluminum Association and the aluminum industry have long put the safety and well-being of its employees at the forefront of their priorities,” said Garney Scott, CEO of Scepter Inc. and Chairman of the Aluminum Association. “The industry has made considerable progress in protecting its employees and the Association’s Guidelines is a key asset to this work.”...
Vedanta Resources Plc ("Vedanta", together with its subsidiaries) hosted a Sustainable Development Day in London on 24 June 2016. This was the second time that the annual event has been held. Analysts, investors and members of key industry bodies attended the event to share an update on the company's sustainable development activities. At the meeting, Anil Agarwal, Chairman, Vedanta Resources Plc, commented in his opening remarks: "Sustainable development is at the heart of our business and I continue to ensure it is a priority for the company and its subsidiaries. We have made substantial progress on our sustainability journey, thanks to the efforts of our management team and everyone who works at Vedanta, and I am committed to the goal of zero harm, zero discharge and zero waste." Anil...
Some Japanese aluminium buyers have agreed to pay producers a premium of $90 per tonne for metal to be shipped in the July-September quarter, two sources directly involved in the quarterly pricing talks said on Monday. The deal, which marks a 22-23 percent fall from a $115-117 per tonne premium (PREM-ALUM-JP) in the previous quarter, is the first drop in three quarters, in line with a slide in overseas surcharges for physical aluminium. 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 (LME) cash price set the benchmark for the region.
Sohar Aluminium, the largest non-hydrocarbon industrial venture in the Sultanate of Oman, achieved a new production record in 2015 -- one of a slew of operational improvements logged by the company last year. Aluminium production jumped from 363,528 tonnes in 2014 to 377,186 tonnes last year -- the highest annual output in the company's history. This was achieved by operating at the highest amperage -- 389kA at the end of the year, at targeted current efficiency and operating pots levels, and a production rate of 2,879 kg Al/pot/day -- amongst the best in the world for this technology and amperage, the company said in its newly released Sustainability Report 2015. "To achieve this feat, all departments across the smelter operated at significantly better levels than in previous years. The...
The US dollar index kept rising following UK leave vote. A series of US economic data to be released later in the day will have temporary impact on the US dollar index. LME aluminium will continue facing downward pressure from strong dollar and drop to USD 1,585-1,605/mt. Impact on SHFE 1608 aluminium from UK vote result has faded, and the contract should move at RMB 12,300-12,400/mt, supported by falling aluminium stocks in China. In China’s spot aluminium market, spot premiums of RMB 20-60/mt are expected over SHFE 1607 aluminium contract. Key macroeconomic indicators for base metal prices Diverging trend is expected for base metals on Tuesday with focus on US Q1 annualized GDP, house price index in 20 cities for April and June Conference Board’s CCI. Markets expect US Q1 annualized GDP...
SMM surveyed 44 Chinese aluminium smelters about their opinions over aluminium price outlook. About 55 per cent of them expect SHFE 1608 aluminium to hold above RMB 12,300/mt and LME aluminium return to USD 1,630/mt. First, aluminium stocks in China’s five major markets fell 26,000 mt to 337,000 mt as of Monday. Second, longs are taking the upper hand. Another 27 per cent expect SHFE 1608 aluminium to fluctuate at RMB 12,100-12,300/mt and LME aluminium move at USD 1,600-1,630/mt. First, UK leave vote may force the US Fed to delay interest rate hike process. Second, middle rate of Chinese yuan broke through 6.63 against US dollar on Monday, the lowest since 2011. This will trigger big volatility in base metals. Third, falling stocks in the market will allow aluminium smelters to hold back...
Britain's exit from the European Union is now a given. The British people have voted by a narrow majority 51.8/48.2 to leave the EU. What happens now to the UKl and to the world economy is pretty uncertain. David Cameron, Britain’s Prime Minister, has already made it official that he will step downin October, before the conference season, to make way for a new leader of the party’s choosing. In the meantime, the markets have reacted to the decision rather badly. The FTSE 250, considered a close barometer of the UK economy, fell by 12.3 per cent before paring losses back to 7.1 per cent, while the pound tumbled to $1.30, before recovering slightly to $1.36 against the dollar. The fall of sterling has been the steepest one-day fall ever seen. Against the euro, the pound dropped 7 per cent...
Aluminium buyers in Japan, Asia’s top importer, have settled on a premium that’s as much as 23 percent lower for the July quarter, as rising output swells a global glut of the lightweight alloy. The premium for the three months starting July 1 will drop to $90 a metric ton from $115-$117 a ton in the current quarter, according to two Japanese buyers, who asked not to be named because the talks are confidential. The Japanese premium is the benchmark for Asia and indicates the amount paid to global producers on top of London Metal Exchange prices. The premium was last at $90 a ton in the October quarter last year. The two buyers said they have settled with a single seller. Price negotiations continue between Japanese companies and other global suppliers. The lower fee reflects excess...
LME aluminium will move in a wide range next week, SMM says. Market attention will focus on what monetary policies major economies will introduce after the UK leaves the EU. The US dollar index will have big impact on LME aluminium. SMM sees LME aluminium at $1,580-1,640 per tonne, with support at the 20-day and 60-day moving averages. Low aluminium stocks in China will allow SHFE 1608 aluminium to move at highs of 12,100-12,400 yuan per tonne. In east China spot market, low stocks will allow spot prices to trade at premiums over SHFE 1607 aluminium. But weakening demand in the off-season will narrow spot premiums to 20-90 yuan per tonne. Key macroeconomic indicators for base metal prices Markets will continue digesting the influence of UK’s exit from EU this week with eyes on the Bank of...
Aluminium Bahrain B.S.C. (Alba), the Bahrain-based international aluminium smelter, is proud to have received a Certificate of Excellence from R&D Carbon-Switzerland (RDC), one of the leading providers of Carbon Electrodes Technologies, on the occasion of completing 10 years of outstanding performance in Carbon sampling and analysis. Alba’s Chief Marketing Officer, Khalid A. Latif and Manager Customer Technical Services (CTS) Hussain Al Malali congratulated the Laboratory team during a ceremony that was held to mark this occasion. Speaking at the occasion, CMO Khalid Al. Latif said: “We are proud that our processes and facilities adhere, if not exceed, the highest international standards and best practices in the industry. Being recognised by a renowned establishment like RDC is a...
