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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Taking positive cues from global market and strong demand at domestic spot markets, aluminium prices edged higher by 0.60% to INR 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 INR 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 INR 101 per kg in 15 lots.
China’s State Council announced Wednesday to cut coal-fired on-grid power tariffs from January 1, 2016. This move comes as a welcome rain to domestic aluminum smelters, since power cost takes up almost 40% of their total costs. The power tariff cut is about 0.03 yuan (¢0.4632)/Kwh nationwide on average. Assuming 13,600 electricity is needed per tonnes of aluminum produced, the cut will equate to about 400 yuan cost savings for smelters.
Mining stocks rose the most in more than 10 weeks in London as aluminium advanced after a report showed the U.S. economy expanded faster than estimated, boosting demand in the second-largest metals user. The U.S.’s gross domestic product expanded at a revised 2 percent annualized rate, a government report showed on Tuesday, beating the median forecast in a Bloomberg survey calling for a 1.9 percent increase. China, the biggest metals consumer, will add monetary stimulus next year, making good on a pledge to support growth as leaders push through policies to cut overcapacity and reliance on credit, according to economists surveyed by Bloomberg. “There’s been a lot of short-term borrowing around on aluminium and lead,” Robert Montefusco, a broker at Sucden Financial Ltd., said by e-mail....
Aluminium touched the highest in over three weeks on Wednesday on greater optimism about demand in top metals consumer China and as investors tidied up portfolios towards the year end. Some European investors may have also been following the lead of counterparts in Asia after some big Chinese commodity funds positioned themselves for a short-term uptick in metals prices despite a poor longer-term outlook. Much of the focus has been on China's Central Economic Work Conference, which decided to maintain a proactive fiscal policy in 2016, said Xiao Fu, head of commodity market strategy at Bank of China International in London. "Some of the fiscal expenditures on social development like shanty towns and also infrastructure investment in railways and highways will likely increase next year....
Aluminium prices were down 0.50 per cent to INR 99.95 per kg in futures trade today as participants trimmed exposure amid weak global cues and sluggish demand in the domestic spot markets. At the Multi Commodity Exchange, aluminium for delivery in current month eased by 50 paise, or 0.50 per cent, to INR 99.95 per kg in a business turnover of 848 lots. Similarly, the metal for delivery in January 2016 contract was trading lower by 50 paise, or 0.49 per cent, at INR 100.60 per kg in 50 lots. Marketmen said the weakness in aluminium at futures trade was mostly in tune with a weak trend at London Metal Exchange (LME), led to the decline in aluminium futures prices.
Aluminium stocks in China’s five major trading markets have been falling for four weeks in a row as smelters cut production as counter measures to aluminium prices that have hit multi-year lows. Smelters that used to ship aluminium ingots to major consumption hubs have ramped up shipment to regions with massive output cuts, SMM has learned. This resulted in lower arrivals into major trading markets. Besides, more aluminium liquid has been turned into intermediate products, such as bar and rod, also reducing ingot available for sale. The table below shows details of aluminum stocks at China’s five major markets:
ACTION (Alcoans Coming Together in Their Neighbourhoods) is a program developed by the Alcoa Foundation to recognise the collective efforts of Alcoa employees in communities where they live and work. ACTION recognises the team efforts of Alcoa employees who spend a minimum of 20 hours on community service project for a local nonprofit organisation. In recognition, nonprofit organisation receive either a US$1500 or US$3000 grant. Portland Aluminium Plant Manager, Peter Chellis said that ACTION grants were an important part of Portland Aluminium’s commitment to building stronger communities. “Encouraging and supporting our employees to volunteer is a key part of our commitment and it is great to see so many of them getting involved and recognising the needs within the community and putting...
Indian aluminium industry, that has been facing tough times on account of cheap imports and softening of prices, is now pushing for reducing the duty on raw materials in a bid to cut production costs. The industry says India has an inverted duty structure with 5 per cent import duty on alumina as well as CT pitch and 7.5 per cent on aluminium pitch and caustic soda -- all raw material -- which together lead to high production costs at a time prices are driving further south. However, aluminium metal has a 5 per cent import duty. "If the duties on raw materials are reduced by even 2.5 per cent the government's exchequer will earn USD 166 million or close to Rs 1,100 crore annually as domestic firms will be able to sell more products," a senior official from industry body Aluminium...
Some Japanese aluminium buyers have agreed to pay producers a premium of $110 per tonne for metal to be shipped in the January-March quarter, five sources directly involved in the quarterly pricing talks said. The deal, which marks a 22 percent rise from a $90 per tonne premium PREM-ALUM-JP in the previous quarter, is the first increase in four quarters, in line with a rise 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.
Almost 79% of the 34 Chinese aluminium smelters surveyed by SMM are bullish toward this week’s aluminium prices. The rest 21% expect prices to stabilize. The optimists expect LME aluminium to rise above USD 1,520/mt and SHFE 1603 aluminium to climb above RMB 10,800/mt. Aluminium capacity cuts in China have exceeded 4 million mt/yr since the beginning of this year, which is more than the amount of new capacity. Such huge cuts have allowed aluminium stocks in China’s five major trading markets to fall below 800,000 mt. Spot discounts in China thus narrowed to less than RMB 100/mt over SHFE 1601 aluminium. SHFE aluminium kepti rising, forcing shorts to exit. This in turn pushed SHFE aluminium above the 60-day moving average. Technical side is positive for SHFE aluminium. Negative impact from...
Aluminium Bahrain B.S.C (Alba), a pioneering smelter in the Middle East and one of the world’s leading aluminium smelters, participated in the high-level meeting ‘Aluminium Industry Challenges and Strategy for Executives’ organised by the Gulf Aluminium Council (GAC) from November 25 to 27, 2015 in Dubai, UAE. Alba’s Chief Executive Officer, Tim Murray, Chief Finance Officer, Ali Al Baqali and Chief Marketing Officer, Khalid Abdul Latif were amongst the key attendees of this event. Mr. Murray was a key note speaker at the ‘Aluminium Industry Challenges and Strategy for Executives’ meeting, where he presented the ‘Financial Aspects of the Industry’ and covered various aspects to include the aluminium smelter economic outlook, comparison of operating and capital cost in the Gulf region...
UC RUSAL, a leading global aluminium producer, announces the appointment of Chris Evans as Project Director for Price Benchmarking. Chris Evans will be responsible for maintaining the effectiveness of current price discovery mechanisms as well as working with customers to implement alternative pricing options. ‘Chris’s appointment represents our commitment to play a leading role in evaluating alternative price discovery mechanisms for our customers as well as to effectively contribute to the many changes that are taking place with existing exchange traded benchmarks’ Steve Hodgson, RUSAL’s Sales & Marketing Director, commented. Chris Evans has more than 15 years’ experience of metals markets including 5 years at the London Metal Exchange, where he was Head of Business Development in...
During a time of enormous growth for the aluminium industry, Qatalum, Qatar’s premium smelter, recently released Issue 6 of its acclaimed “Altogether” publication. Included within the quarterly magazine are articles which not only detail Qatalum’s vast contributions to the State of Qatar but also reports related to the inner workings of the aluminium industry. A key provision for aluminium’s growing prevalence as of late has related directly to the global automotive industry taking a wider interest in the material as opposed to its traditional use of steel. With the energy sector across the Gulf meanwhile suffering losses, Qatalum’s importance has grown immensely for the global aluminium trade; a reality touched on throughout this latest edition of “Altogether”. “This installment of...
Ministry of Finance (India) is likely to relent to the demand of aluminium manufacturers to raise import duty to thwart cheap imports. The North Block is likely to increase the import duty on aluminium to 7.5-10 per cent from 5 per cent in the next budget. Officials said they had been concentrating on steel because of the strategic importance of the industry. However, they will look into the demands of aluminium manufacturers such as Nalco and Vedanta to double the duty from 5 per cent. The commerce ministry officials are inclined to consider a 2.5 per cent increase in the import duty on aluminium. The North Block is also mulling over proposals to reduce the import price of alumina by cutting its duty to 2.5 per cent from 5-7.5 per cent. Manufacturers have argued that this duty anomaly...
LME aluminum will find support from aluminium production cuts in China next week, SMM expects. Aluminium stocks in China have been falling for four weeks in a row on growing production cuts. This will support SHFE aluminum , in turn putting a floor under LME aluminium as well. A firm dollar will pressure LME aluminium at highs, though. LME aluminium should move around $1,500 per tonne. SHFE 1603 aluminium will move between RMB 10,600-10,800/mt, supported by tightening supply in China’s spot market and rumors on aluminium stockpiling by China’s State Reserve Bureau (SRB). Aluminium stocks continued falling in China’s major trading markets, tightening supply. Downstream demand has shown signs of weakening. Spot discounts are expected to hold steady around RMB 100/mt over SHFE front-month...
Century Aluminum of South Carolina, Inc., a wholly-owned subsidiary of Century Aluminum Company, announced on Saturday, last week, that it has reached an agreement in principle with Santee Cooper that will allow the Goose Creek, SC plant to operate at half capacity while the state legislature pursues a long-term solution. The agreement is subject to approval by each organization's board of directors. "Our relief at reaching this point is tempered because 300 of our people are being laid off," said Michael Bless, President and CEO. "Mt. Holly is a family and we are saddened that we were left with no choice but to make this decision. Our employees are responsible for making Mt. Holly the best, most-efficient aluminium smelter in the country and we will expend all efforts to return them to...
State-backed China Securities Journal reported, the vice-president of one of the country's leading industry associations has prediced that aluminium consumption in China will peak in 2020 as new industrial uses drive growth. Chinese aluminium consumption will peak at 44 million tonnes (mt) a year, Wen Xianjun, vice-president of the China Nonferrous Metals Industry Association, told a forum, according to the report. As per the report, in 2016, aluminum consumption is expected to grow 7.2 percent to 32.8 million tonnes. Fuelling the next five years' growth will be new industrial uses, including the manufacture of lighter commercial vehicles, new energy vehicles and airplanes, said Wen.
Norsk Hydro ASA has entered into an agreement with Oslo Pensjonsforsikring AS regarding the sale of Herøya Industripark AS. The transfer will likely occur during the first quarter of 2016. "After a thorough process, and based on an overall assessment, we concluded that Oslo Pensjonsforsikring AS (OPF) would be the best new owner of Herøya Industripark. We see them as a long-term and very serious owner. Oslo Pensjonsforsikring already has a diverse portfolio of real estate, including industrial operations, and has broad experience in property management," says Executive Vice President Eivind Kallevik in Hydro. Almost a year ago, Hydro announced the decision to offer the industrial park in Herøya for sale, a consequence of changes Hydro has undergone in recent years. Hydro has developed...
