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. On...
The conclusion of negotiations on the EU–India Free Trade Agreement creates a new context for Indian manufacturers considering the European market, but future opportunities will increasingly depend on regulatory preparedness as well as commercial competitiveness. Negotiations on the Free Trade Agreement were concluded in January 2026. Earlier this month, the European Commission submitted proposals to the EU Council for its signature and conclusion. The Agreement is not yet in force and remains subject to the required European and Indian procedures. For the Indian aluminium industry, the development comes at a time when access to Europe is increasingly shaped by environmental, product and supply-chain regulation. One of the most immediate examples is the European Union’s Carbon Border...
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Already hit by more than 1,000 job cuts at Vedanta Group company Balco's Chhattisgarh unit, the company's trade unions have approached Prime Minister Narendra Modi to help bail out local aluminium makers from cheaper imports from China. After Balco shut its rolling mill in Chhattisgarh leading to 1,000 job cuts citing economic unviability, its major trade bodies including those affiliated with INTUC, AITUC, CITU and HMS have submitted a memorandum to the Prime Minister seeking protection under 'Make in India' drive to revive the sector. The unions have demanded hike in import duty on aluminium apart from bauxite and coal linkages to aluminium makers. Government holds 49 per cent stake in Balco, which in August shut its rolling mill citing slump in global price of aluminium and rise in...
Aluminium prices fell 0.55 per cent to INR 100 per kg in futures trade today after traders reduced their exposure amid weak global cues. Besides, sluggish demand in the domestic spot market weighed. At Multi Commodity Exchange, aluminium for delivery this month eased 55 paise, or 0.55 per cent, to INR 100 per kg in a business turnover of 544 lots. On similar lines, the metal for delivery in January next year contracts traded lower by 55 paise, or 0.54 per cent, to INR 100.95 per kg in 63 lots. Globally, aluminium sank 2.3 per cent at the London Metal Exchange (LME). Marketmen said the weakness in aluminium in futures trade is mostly in line with a weak trend in the metal at the LME on concern that slowing growth in China will hurt demand next year.
With an interest-rate increase from the U.S. Federal Reserve out of the way, battered metals investors are returning their focus to China, where plans to trim a supply glut (read aluminium oversupply) have sparked hopes for a rebound in prices in 2016. Price of aluminium is trading up 6%, from recent multiyear lows. Uncertainty about the Fed’s move and its impact on the U.S. dollar helped to keep a lid on metals prices ahead of the central bank’s announcement. Most commodities are priced in U.S. dollars. But analysts say it is too early to declare a complete recovery and prices remain low by historical standards. Three-month aluminium futures on the London Metal Exchange are currently at $1,515 per metric ton. “We expect to see some fundamental recovery only by second quarter next year,”...
According to China Customs, China imported 11,700 mt of primary aluminium in November, down 23,200 mt MoM. The SHFE/LME aluminium price ratio fell back in November. Chinese processors received fewer orders under tolling trade as Christmas holiday was nearing. Yuan’s depreciation weakened Chinese buyers’ purchasing power. All these three negative factors resulted in lower import volumes. The SHFE/LME aluminium price ratio rebounded in December. Despite a higher price ratio, yuan’s devaluation and Christmas holiday in western countries mean China’s primary aluminum imports will continue falling in December.
LME aluminium is expected to retest a support at $1,420 per tonne over the next three months, a break below which could cause a loss to the next support at $1,255. These supports are identified respectively as the 61.8 percent and the 76.4 percent Fibonacci projection levels of a downward wave (c), the third wave of a bigger wave C from the May 2011 high of $2,803. Except the 23.6 percent level at $1,852, all other projection levels work well either as resistances or supports, such as the 14.6 percent level at $1,954 and the 50 percent level at $1,554. That means over the next three months, aluminium's moves could still be controlled by the relevant projection levels. The wave (c) could be strong enough to extend to $988, its 100 percent projection level, which looks too far away to be a...
Aluminium prices were down 0.10 per cent to INR 100.70 per kg in futures trade today as investors cut down their bets amid weak Asian cues and sluggish demand in the domestic spot market. In futures trading at the Multi Commodity Exchange, aluminium for delivery in the current month eased by 10 paise, or 0.10 per cent, to INR 100.70 per kg in a business turnover of 115 lots. The metal for delivery in January next year contract was trading flat at INR 101.75 per kg in seven lots. Marketmen said the weakness in aluminium in futures trade was mostly in line with a weak trend at the Shanghai Futures Exchange after data from China showed industrial profits declined again, underscoring a manufacturing slowdown in the biggest metal consumer. Aluminum in Shanghai slumped as much as 2.6 per cent,...
38% of the 42 Chinese aluminium smelters surveyed by SMM are bearish toward this week’s aluminium prices . Those pessimists fear that LME aluminium will fall below USD 1,500/mt and that SHFE 1603 aluminium will drop below RMB 10,500/mt. They argued that on-grid power tariffs cuts by the Chinese government and power tariff subsidy by local governments will weaken cost for aluminum prices. Besides, shorts are gathering momentum recently, and longs are cautious about entering, another negative factor. Another 19% are optimistic that LME aluminium will rise above USD 1,530/mt and SHFE 1603 aluminium will climb above RMB 1,700/mt. They noted that aluminium stocks in China’s five major trading markets have been falling for six weeks in a row due to production cuts. Large aluminium processors...
Shanghai aluminium slid more than two percent on Monday, with the market suffering possibly its biggest one-day decline in more than six weeks as a lack of further production cuts in China pressured prices. The most active aluminium contract on Shanghai Futures Exchange fell 2.3 percent to 10,650 yuan a tonne by 0410 GMT. Unless the contract recovers in the afternoon, aluminium will like mark its biggest daily fall since November 11. The London Metal Exchange will reopen on Tuesday after the Christmas break. "Total aluminium curtailment is still around four million tonnes per year for 2015 in China," said Jackie Wang a consultant CRU in Beijing, adding that no further cuts in output have been announced recently. That has put pressure on prices, because the market had been expecting...
Emirates Global Aluminium PJSC, a joint venture between Abu Dhabi and Dubai, is said to be paying almost 40 percent more for a loan compared with last year as liquidity in the Gulf tightens after the plunge in oil prices. The state-controlled company will pay 200 basis points, or 2 percentage points, above the London Interbank Offered Rate on a $4.9 billion, seven-year conventional loan and an Islamic facility, according to three people with knowledge of the plan, who asked not to be identified because the information isn’t public. That compares with a spread of 145 basis points that subsidiary Dubai Aluminium paid on a similar maturity facility it raised in December 2014, according to data compiled by Bloomberg. Companies in the six-nation Gulf Cooperation Council, home to about 30...
Century Aluminum’s Mount Holly smelter was due to shut down, probably for good; but just a couple days before the inevitable closure, president and CEO Michael Bless stepped in to try one last time to save several jobs from being lost. The aluminium smelter and its workers saw Bless working till the very last moment to strike a deal that would save at least some of the 35-year-old plant’s 600 jobs and nearly $1 billion in annual economic impact. “We’re pulling every lever we can,” said Bless of his last-minute negotiations with sthe tate lawmakers on a plan to keep Mount Holly operational. A day later, Bless announced that Mount Holly smelter would operate at half the capacity through the first half of 2016 while the Legislature worked to let his company buy electricity on the open...
Production cuts and improving demand have allowed aluminium stocks in China’s five major trading markets to fall for six consecutive weeks, SMM learns. It should be noted, though, that aluminium stocks in major trading markets are likely to fall at a slower pace in the future, SMM aluminium analyst pointed out. Downstream demand has shown signs of softening and more aluminium ingots will flow out of Inner Mongolia into main consumption hubs, the analyst explained. The table below shows details of aluminium stocks at China’s five major markets:
Aluminium prices, both on the SHFE and LME, will continue gathering strength this week, as market will continue digesting positive news from China. Aluminium stocks in China’s major trading markets have been falling for six weeks in a row and destocking accelerated with expanding production cuts. This will drive SHFE 1603 aluminium up further to 11,000 yuan per tonne and allow spot aluminium in domestic market to trade at premiums over SHFE 1601 aluminium. A softer US dollar and strong SHFE aluminium will push LME aluminium up to $1,530-1,560 per tonne.
Excess aluminium capacity continued to put downward pressure on prices in 2015. Prices are not expected to recover in 2016 as continued additions to capacity, particularly in China, contribute to a build-up of stocks, according to a report by Australian Dept of Industry Innovation and Science. Aluminium spot prices are estimated to have decreased by more than 10 per cent to average US$1663 a tonne in 2015 as excess capacity and subdued global demand contributed to a build-up in stocks. Global aluminium stocks are estimated to have increased by 12 per cent in 2015 to 6.5 weeks of consumption, as per the report. The profitability of many smelters has been reduced at current prices, which may force the closure of some capacity in high-cost regions. However, this is expected to be more than...
Stocks of Australian mining giants climbed Thursday as an extended rally in raw material prices helped put the brakes on an ongoing commodity rout. An increase in U.S. consumer spending and signs of a revival in the Chinese economy in November have raised investors’ hopes of a better economic outlook in 2016. Shares in the Rio Tinto Group -- a British-Australian mining conglomerate -- rose 4.4 percent Thursday to post its biggest two-day advance in more than three years, as aluminum prices hit a three-month high. The company's stock has gained 8.8 percent since Wednesday. BHP Billiton, the world’s largest miner, rose 5.3 percent during morning trade in Sydney. “Mining and metals shares advanced with some expectations of rising investment in underweight commodities stocks in early 2016,”...
Taking positive cues from global market and strong demand at domestic spot markets, edged higher by 0.60% to Rs 100.30 per kg in futures trade today as participants increased their bets. Marketmen said apart from increased domestic demand, a firming global trend as the US economy expanded faster than estimated, boosting demand in the second-largest metals user, helped aluminium futures to trade higher. At the Multi Commodity Exchange, aluminium for delivery this month inched up by 60 paise, or 0.60%, to Rs 100.30 per kg in a business turnover of 239 lots. Likewise, the metal for delivery in far-month January 2016 contract traded higher by 50 paise, or 0.50%, to Rs 101 per kg in 15 lots.
Continuus-Properzi of Milano has announced a new Collaboration Agreement with C.P.T. sarl (Construction & Projects Tunisie) of Bizerte (Costruction & Projets Tunisie) which replaces a previous engineering exchange letter of intent related to CCR Aluminium rod lines. Carmelo Maria Brocato Vice President and Commercial Director, commented: “There was a certain amount of confusion among potential Buyers in recent years mainly because under the same nomenclature very different Aluminium rod lines can be quoted with a price ratio that can reach even 1 to 4! The new Agreement with C.P.T. makes everything clear and places the Buyer in a position to compare apples to apples; it is important they get what they pay for and exactly what they need. This is the mission of the Properzi Group.” After...
The premiums that Japanese buyers pay for aluminium are expected to rise next year towards $150 a tonne, compared with $90 in the current quarter, due to tighter supply after cutbacks and closures by producers, Japanese trading house Marubeni said. Japan is Asia's top aluminium importer and the premiums for primary metal shipments PREM-ALUM-JP it agrees to pay each quarter over the London Metal Exchange (LME) cash price set the benchmark for the region. "Japanese premiums are likely to gradually climb next year and the following year as there have been and will be more inventory adjustments worldwide," Norinobu Ozawa, general manager at Marubeni's light metals section, told reporters on Thursday. More metal is seen flowing into the U.S. market as a series of output reductions will tighten...
China’s aluminum consumption is expected to surge 34% in the 13th Five-Year Plan period (2016-20), on anticipated demand growth by the transport industry, a source with China Nonferrous Metals Industry Association said Wednesday. CNIA forecast China’s aluminum demand to reach a maximum 44 million mt/year by 2020, up from an estimated 32.8 million mt/year in 2016, with the zenith value of 44 million mt/year to sustain for a long period of time after 2020. Besides demand from the traditional aluminum-consuming industry - the construction sector - the CNIA source told Platts that the transport sector, including new energy vehicles (Nevs, or vehicles partially or wholly powered by electricity), lighter weight vehicles, airplane manufacturing, aluminum alloy flyovers - is also expected to be a...
