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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Lower metal realisation, high finance and depreciation costs have hit the aluminium maker Hindalco's bottomline as it reported a 67 per cent drop in the standalone net profit at INR 107.19 crore for the quarter ended June 30. The flagship firm of the Aditya Birla Group had clocked a net profit of INR 327.50 crore in the year-ago period. Standalone revenue of the company was up 7 per cent to INR 8,575.27 crore in April-June quarter of this fiscal from INR 7,996.14 crore in the same quarter of 2014-15. "The revenue was up mainly on the back of higher volume despite lower commodity prices. The company reported strong operational performance in Q1FY16, but external environment has worsened significantly," Hindalco Managing Director D Bhattacharya told reporters here. The realisations have...
Manaksia Aluminium Company has reported a standalone total income from operations of INR 78.10 crore and a net profit of INR 1.10 crore for the quarter ended Jun '15. Other income for the quarter was INR 0.31 crore. For the quarter ended Jun 2014 the standalone total income from operations was INR 57.68 crore and net profit was INR 0.09 crore, and other income INR 1.19 crore. Manaksia Aluminium shares closed at 4.55 on August 13, 2015 (NSE) and has given -74.72% returns over the last 6 months and -74.72% over the last 12 months.
The official programme for the European Aluminium Congress 2015 (EAC) is set. The Gesamtverband der Aluminiumindustrie e.V., Düsseldorf, (GDA) is holding the congress on 23 and 24 November 2015 in Düsseldorf on the subject of "Aluminium - Building the Future". The EAC 2015 is organised within the "D-A-CH, Allianz für Aluminium" in cooperation with the Swiss aluminium association "alu.ch" and the Austrian Non-Ferrous Metals Federation. Registration for the event has already begun. Over two days the EAC congress "Aluminium - Building the Future" will look at the key factors for the future success of the entire aluminium added value chain. On the first day of the congress, high-ranking representatives from the aluminium industry, the customer industries and a representative from the EU...
Aluminium prices fell 0.64 per cent to INR 101.65 per kg on Multi Commodity Exchange (MCX) on Thursday after traders reduced their exposure amid weak global cues. Besides, sluggish demand in the domestic spot market weighed. At MCX, aluminium for delivery this month eased 65 paise, or 0.64 per cent, to INR 101.65 per kg in a business turnover of 181 lots. Similarly, the metal for delivery in September traded lower by 55 paise, or 0.53 per cent, to INR 103.30 per kg in nine lots. Marketmen said the weakness in base metal pack at the London Metal Exchange (LME) as China's yuan slid for the third day after its worst loss since 1994 and muted demand at the domestic spot market kept up the pressure. Meanwhile, aluminium prices fell 0.3 per cent at LME.
Century Aluminum Company reported a net loss of $33.9 million ($0.39 per common share) for the second quarter of 2015. Results include a $30.9 million impairment charge ($0.35 per common share) related to the permanent closure of our Ravenswood smelter and a $25.7 million charge ($0.30 per common share) for lower of cost or market inventory adjustments. Results were also negatively impacted by $11.7 million ($0.13 per common share) in costs related to the labor disruption at our Hawesville smelter. Lastly, results include a $10.3 million ($0.12 per common share) unrealized gain on the fair value of contingent consideration related to the acquisition of the remaining 50.3% interest of Mt. Holly. After consideration of these items, the company reported adjusted net income of $24.1 million...
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 is on lower side. World Aluminium markets that showed record production numbers in the month of May 2015 declined slightly in the month of April 2015. Data estimates from International Aluminium Institute (IAI) showed that the total primary Aluminium production reached 4.90 million tonnes in June 2015 against 4.93 million tonnes in the month of May 2015. This marks an increase of 12.6% during the period of one year. The production increased 0.40% on a monthly basis in June 2015. The production of Aluminium in June 2014 was 4.35 million tonnes. China remained the major contributor to the production along with...
Hindalco Industries shares fell over 7 per cent to hit intraday low of Rs 95.55 after its subsidiary Novelis, which contributes around 50 per cent to its consolidated revenues, reported weak earnings for the June quarter. Novelis, which is world's largest recycler of aluminium posted a net loss of $60 million for the April-June quarter compared to a net profit of $35 million in the corresponding quarter of last fiscal on account of lower average aluminium prices. Its revenue fell 2 per cent annually to $2,634 million against $2,680 million year-on-year. Novelis' EBTDA or operating profit came in at $127 million against $228 million last year. Average realisation per tonne of Novelis fell 7 per cent sequentially to $3,430 from $3,679 in the March quarter, impacting its profitability....
China’s ballooning exports of aluminum will probably get even bigger because of the surprise yuan devaluation. The country is the world’s biggest producer of the metal, which is used in everything from beverage cans to airplanes. Many Chinese producers haven’t cut output even amid slumping prices, partly because of government subsidies, according to Goldman Sachs Group Inc. Domestic demand has weakened at the same time, spurring a flood of aluminum to the global market. China’s shipments in 2015 through July surged 28 percent from last year, to a record. With this week’s yuan devaluation, the aluminum market should brace itself for even more supplies, because the weaker currency will lower domestic production costs. “It’s clearly bearish, because at the margin, it lowers domestic cost of...
State-run National Aluminium Company (Nalco) reported a 40 percent decline in its net profit at INR 163.44 crore for the quarter ended June 30, 2015. The company had posted a net profit of INR 270.99 crore in the year-ago period. Total income of the aluminium producer fell by 16 percent to INR 1,491.27 crore in April-June quarter of this fiscal against INR 1,680.04 crore in the same quarter of 2014-15. Total expenses of the company fell to INR 1,366.55 crore from INR 1,499.06 crore in the reported quarter. Nalco's Net sales from aluminium fell to 1,042.26 crore in the June quarter of 2015-16 from INR 1,042.62 crore in the same quarter in 2014-15. The aluminium unit reported a loss of INR 13.89 crore before taxes and interest against a profit of INR 31.09 crore. The company has minimised...
Government of India has raised basic customs duty on base metals by 2.5 per cent. The decision was taken after Finance Minister Arun Jaitley approached Parliament seeking the revision for specified goods falling under Chapter 72. Under the Central Board of Excise and Customs ( CBEC), this pertains to commodities such as iron and steel, copper, nickel, lead, zinc, tin, tungsten (wolfram), molybdenum, and aluminium among others. Domestic aluminium producers have been demanding import duty hike for some time now as they are facing stiff challenge from China, which is exporting aluminium products at cheaper rates. Cheap imports from Middle East too are deluging domestic market. As a result of this, market shares of the Indian aluminium producers are getting shrunk. Aluminium Association of...
State owned Odisha Mining Corporation (OMC) may get to operate a commercial coal block for supply of the dry fuel to non-regulated sectors like steel, cement and sponge iron. The state government has already written to the Ministry of Coal to allocate the Patrapada coal block with reserve of 1042 million tonne to OMC. Patrapada is one of the 10 Schedule I coal blocks listed by the Ministry of Coal for non-regulated sectors. The remaining coal blocks identified are Nuagaon-Telisahi, Talabira II, Utkal, Biatarani West, Mandakini B, Rampia and dip side Rampia, Ramchandi promotional coal block and North of Arkhapal and Srirampur coal block. "The discussions with the Coal minister were very positive. We hope to get one commercial coal block from the Centre in favour of our PSU", said state...
Bharat Aluminium Company (Balco), a Vedanta group firm, has approached Delhi High Court against the government's decision to reject the company's winning bid for an auctioned coal mine in Chhattisgarh. The government last week rejected the company's plea to review the cancellation decision taken in March. The government had in March rejected bids for three coal blocks, one by Balco and two by Jindal Power, citing low prices and handed over the mines to state-run miner Coal India. The companies then moved the Delhi High Court. The court asked the government to consider Balco's plea afresh while appointing Coal India as a temporary custodian. Balco had submitted best bid of Rs 1,585 per tonne for Gare Palma IV/1 while Hindalco bagged another mine for steel sector in the same Gare Palma...
Aluminium on London Metal Exchange (LME) hit six-year lows after China devalued its currency, fuelling worries about oversupply and boosting cost of the commodity for the world's top metals consumer. "The devaluation will make commodities more expensive for China to import, so I would imagine that is the main reason for the negative reaction," said Caroline Bain, senior commodities economist at Capital Economics in London. The devaluation also makes exports more competitive, which may eventually increase industrial production and demand for metals, Bain added. "We're not too worried because ultimately it could be a factor in a pick-up in activity in the second half of the year. It could be positive for commodities in the medium term even if the initial reaction is negative." Aluminium...
Aluminium settled down -0.2% at 100.35 even after Century Aluminium curtailed capacity at one of its four smelters. Prices also seen under pressure as the market focused on a growing supply glut due to surging exports from top producer China and high stocks. China's exports of primary aluminium rose to 20,412 tonnes in the first six months of the year, a surge of 66 per cent from the same period a year ago. But the more pressing worry is exports of semi-finished aluminium products, which at 2.22 million tonnes have jumped 44 per cent. Stocks of aluminium in LME approved warehouses stand at around 3.4 million tonnes, but that does not include stocks held off exchange and by producers. Norsk Hydro, one of the world's biggest aluminium producers, last month estimated global inventories at...
Noranda Aluminum Holding Corporation announced today that it received written notice from the New York Stock Exchange (NYSE) on August 7, 2015 that the company is not in compliance with one of NYSE's continued listing standards because the average global market capitalization of its common stock over a 30 trading-day period was less than $50 million and, at the same time, stockholders equity was less than $50 million. Under NYSE rules, the company must notify the NYSE, within 10 business days after receiving the notice, if it intends to submit a plan that will advise the NYSE of definitive action it has taken, or is taking, to bring it into conformity with the listing standard within 18 months of receipt of the notice. The company must provide such a plan within 45 days after receipt of...
The global economy lacks an immediate driver that could boost global growth and aluminium demand, according to Bank of America Merrill Lynch. Digging a bit deeper on economic activity, China’s recent GDP report is a case point: while the country is stabilising, much of this was driven by relatively poor quality growth, including rising activity in financial markets, the bank said. A cyclical rebound is Merrill Lynch's base for the coming weeks, but China’s economic restructuring will continue. This suggests that most metals are in need of a new structural growth driver, making production curtailments, especially on aluminium, even more essential. Correlations between metals prices were high ahead of the Great Financial Crisis (GFC) and in the immediate aftermath of it. Prior to the GFC,...
Goldman Sachs Group Inc. reduced its aluminum price forecasts by at least 21 percent from 2016 through 2018 because of a global surplus. The bank cuts its predictions to $1,525 a metric ton in 2016, to $1,625 in 2017 and to $1,700 in 2018 from $1,925, $2,100 and $2,200 as it projected a glut of about 2.5 million tons to 3 million tons from 2016 to 2019. Prices fell to a six-year low on the London Metal Exchange this month as exports from China surged. While shipments from the country, the world’s biggest producer, fell in July from the highest level this year, they have still increased 28 percent in the first seven months from a year earlier, customs figures showed on Saturday. A balanced market will be difficult to achieve because most of the easy cuts outside of China have already been...
Aluminum shipments from China, the world’s biggest producer, fell from the highest level this year amid a decline in global prices. Sales of unwrought aluminum and products slumped 20 percent to 360,000 metric tons in July from 448,980 tons in June, preliminary customs data showed Saturday. While monthly exports dropped, shipments climbed 28 percent to 2.87 million tons in the first seven months, the data showed. China is heading for the slowest economic expansion since 1990 and faltering domestic demand combined with excess capacity has spurred a surge of aluminum and steel supply onto world markets, pressuring foreign producers. Prices of the metal used in everything from cans to aircraft fell for the third month in July, declining 4.3 percent, and lost 14 percent this year.
