National Aluminium Company Limited (NALCO) expects revenue to reach INR 190-200 billion (USD 2.29–2.41 billion) in the current year, supported by higher alumina production and stronger aluminium prices, while an INR 250-billion (USD 3.01 billion) expansion programme is set to reshape its upstream, smelting and power capacities by FY31. The state-owned aluminium producer expects revenue to increase from approximately INR 178 billion (USD 2.14 billion) last year as its new refinery capacity lifts alumina production and higher aluminium prices support realisations. NALCO Chairman and Managing Director Brijendra Prasad Singh attributed the revenue outlook to these two factors. INR 250 billion capex to expand aluminium value chain NALCO is simultaneously advancing a INR 250-crore (USD 3.01...
According to SMM statistics, changes in aluminium ingot and aluminium billet (collectively referred to as aluminium inventory) inventories in major consumption areas in China around the National Day holiday, 2020-2026: overall destocking before the holiday, with the most concentrated inventory buildup during the holiday. During the one-week National Day holiday from 2020 to 2025, aluminium ingots, aluminium billets, and total aluminium inventory all saw inventory buildup (aluminium ingots up 4.0 per cent -17.3 per cent, aluminium billets up 12.7 per cent -66.0 per cent, total aluminium inventory up 6.9 per cent -21.2 per cent ). In the second week after the holiday, aluminium ingots did not see further inventory buildup except in 2021, while aluminium billets destocked in all six years....
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Aluminium Bahrain said its third-quarter output rose 2.9 percent despite significant drops in London Metal Exchange prices. Sales figures reached 238,862 metric tonnes (mt), an increase of 5,940 (mt), versus 232,922 mt in Q3 2014 while production figures jumped by 2.9% year-on-year (YoY) to top 240,351 mt for the same period in 2014. For the nine months of 2015, Alba’s sales figures stretched to 699,362 (mt), up from 689,203 (mt) in the same period of 2014; while production figures increased by 19,521 mt to reach 717,029 mt year-to-date. In addition, Alba closed the third quarter of 2015 with its Value-Added Sales averaging 64% of total shipments versus 67% for the same period in 2014. Value-Added Sales for the nine months of 2015 averaged 65% of total shipments versus 66% for the same...
Vedanta Resources Plc., the diversified metals and minerals conglomerate, announced its production results for the second quarter and half year ended 30 September 2015 on Friday, October 10. The company reported stable volumes from the existing smelters; updated on cost reduction initiatives that are currently in progress; and announced plans to ramp up production at its Jharsuguda-II smelter in Q3. Production highlights: - The Lanjigarh alumina refinery produced 272,000 tonnes in Q2, 20% higher than the corresponding prior quarter. The production was stable at the 500kt Jharsuguda-I and 245kt Korba-I smelters. - The 325kt Korba-II smelter produced 19,000 tonnes during Q2 FY2016 with 83 pots operational. However, the ramp up of further pots has been temporarily put on hold due to weaker...
Aluminium Bahrain (Alba), the Gulf nation’s leading aluminum smelter, is set to exceed its annual production growth targets, an announcement that came at the company’s third quarter meeting in a statement from Alba’s Chairman Daij Bin Salman Bin Daij Al Khalifa; that announcement comes as the company continues its Line 6 Expansion Project, which will allow the company to massively increase output even more in coming years. When complete, the Line 6 Expansion Project would make Alba the largest single site smelter in the world. The line is expected to begin production in 2019 and is projected to boost the per-annum production by 514 thousand metric tons. Board members at the meeting reviewed a report from Alba Management on market forecasts from the London Metal Exchange for coming years,...
Alcoa Inc., the largest U.S. aluminium producer, maintained its forecast for global consumption of the metal. Demand is set to climb by 6.5 percent this year, New York-based Alcoa said in its third-quarter earnings statement. That matched the company’s prediction in July. Analysts at Morgan Stanley forecast 6.9 percent aluminium demand growth, attributing light-weighting of automobiles as a key driver. While Morgan Stanley forecasts a 2016 surplus of 1.18 million metric tons, Alcoa sees the market shifting to a deficit. The company narrowed its 2015 surplus forecast to 551,000 tons from 762,000 tons in its second-quarter earnings presentation. The company lowered its China consumption forecast to 9.3 percent in 2015, from 9.5 percent. It still expects global aluminium demand to double...
Aluminium settled up 0.75% at 101.25 supported by expectations of a mild improvement in demand from top user China. China’s primary aluminium imports surged 40.65% MoM to 21,800 mt in August, customs data showed. In August, primary aluminium imports were largely under two trade modes, namely feeding processing trade and goods in bonded areas (including pilot areas under customs supervision). Primary aluminium imported under these two trade modes is either sold overseas after being processed or stored in bonded zones, rather than being traded in China’s domestic market. In overseas market, the euro zone’s final manufacturing PMI was 52.0 in September. ISM’s US manufacturing PMI was 50.2 in September, slightly below 50.6 expected. The US non-farm sector created just 142,000 jobs in...
LME aluminium may break a support at $1,566 per tonne and fall towards the next support at $1,553. These supports are identified respectively as the 38.2 percent and the 14.6 percent Fibonacci projection levels of an upward wave c, the third wave of a three-wave cycle from the August 24 low of $1,506. This wave has been developing within a wedge, the lower trendline of which suggests a target at $1,553 as well. Resistance is at $1,580, the 61.8 percent level, a break above which could lead to a gain to the 76.4 percent level at $1,588.
The output of the ten nonferrous metals gained 9.4% from a year earlier to 33.87 million tons in the first eight months of this year, according to the latest report released by the National Development and Reform Commission (NDRC). According to the statistics, the country's aluminium electrolytic output grew 12.2% year on year to 21.07 million tons in the eight-month period, while the output of copper, Zinc and alumina oxide expanded 8.2%, 10.1% and 11.5% over the previous year to 5.07 million tons, 4.11 million tons and 37.87 million tons, respectively. Meanwhile, the output of lead shed 4.1% year on year to 2.58 million tons during the eight-month period. Last month, the average prices of aluminium electrolytic, Zinc and copper futures on the Shanghai Futures Exchange saw a decline to...
PT Indonesia Asahan Aluminium (Inalum) has set a target of producing 244,000 tons of aluminium in 2016. President Director Winardi Sunoto, said on September 8, Thursday, that the companys production target for 2015 had been set at 255,300 tons. "Unlike in 2016, Inalums production will be in the form of alloy and billet," he said. Diversification is one of the companys strategies, which has now become a state-owned company. Winardi said the company had set production targets until 2020, with the target for 2017 set at 233,500 tons, for 2018 at 226,000 tons, for 2019 at 316,000 tons and for 2020 at 500,000 tons. He added that to increase production, considerable electricity would certainly be needed and therefore a new power plant was needed to be built. In connection with that, he also...
The London Metal Exchange has signed up nine warehouse for its new aluminium premium contracts due to be launched in November, a crucial step towards ensuring their acceptance and use. Warehouse companies that will get involved in the premium contracts include Henry Bath, majority-owned by China's CMST Development, and Pacorini, the exchange said in a statement. The new contracts - one each for the United States, Northern Europe, East Asia and South East Asia - need warehouses to create warrants which can be traded by consumers and producers and other market participants such as funds. Warrants are legal ownership documents for metal stored in LME warehouses. Premiums are paid over the LME cash price to cover the cost of freight and insurance, and reflect regional demand and supply....
India’s primary aluminium output will hit 2.5 million tonnes in fiscal 2015-2016, observed Nalco’s managing director T K Chand. India’s demand for the light metal grew significantly in 2014 due to increasing investment by the central government in power transmission, a trend that is likely to continue through 2015, T K Chand was quoted as saying. In particular, beverage cans, alloy wheels, automobile bodies, railway coaches will be important drivers of aluminium consumption in coming years, T K Chand added.
The latest available data suggests the rising supply situation is likely to further inflate the global aluminum stock levels. The stock levels are most likely to exceed 20 million mt in 2019, the research note said. According to the analysts, the rapid pace of growth in the metal supply poses big threat to the market. Aluminum inventory levels had hit record highs of 13.7 million mt at the end of 2014. The global aluminum supply witnessed a growth of 8.8% as against the demand growth of 6.6% during the year. The demand is expected to outpace supply growth during 2015 to 2020. Despite this, global aluminum inventory levels are expected to increase in the wake of increased exports of semi-finished products from China. Further, lower energy costs may ramp up aluminum production around the...
Lightweight metals leader Alcoa reported a third quarter profit as its value-add and upstream portfolios delivered solid results in the face of strong market and currency headwinds. Alcoa has been transforming by building its value-add portfolio for profitable growth and creating a globally competitive upstream business. The company’s successful multi-year transformation will culminate with the launch of two Fortune 500 companies, one value-add focused and the other upstream focused, expected in the second half of 2016. Alcoa reported third quarter 2015 net income of $44 million, or $0.02 per share, including $65 million in net unfavourable special items. Special items included restructuring-related costs to optimize the upstream portfolio and transaction costs, partially offset by gains...
LME aluminium looks neutral in a range of $1,545-$1,573 per tonne, and an escape will point a direction. The range is formed by the October 2 low and the 50 percent Fibonacci projection level of an upward wave c, the third wave of a three-wave cycle from the August 24 low of $1,506. A break below $1,545 could cause a loss to $1,517, based on the range of $1,545 and $1,573, while a break above $1,573 could open the way towards $1,588, the 76.4 percent level.
Credit Analysis and Research Ltd. (CARE), one of the world's premiere credit rating agencies, has revised its grade for Hindalco Industries' non-convertible debentures from 'AA+' to 'AA' on continued moderation in profitability and debt protection parameters. The debt amount involved is INR 6,000 crore. Hindalco is part of the Aditya Birla Group. The rating is also AA for the long-term and short-term bank facilities, of INR 31,059 crore. The latter ratings and revision in the long-term one for the debentures factor in the continued moderation in the profitability and debt protection parameters, as compared to the envisaged levels. The ratings also factor in the increased cost of production due to premium paid for acquisition of captive coal mines in auctions held in February 2015, CARE...
LME aluminum shot up to USD 1,592/mt after opening at USD 1,559/mt on October 7. The light metal fell back later in the day, but then rallied to USD 1,577/mt. In overseas market, the euro zone’s final manufacturing PMI was 52.0 in September. ISM’s US manufacturing PMI was 50.2 in September, slightly below 50.6 expected. The US non-farm sector created just 142,000 jobs in September, shy of 201,000 expected. US jobless rate was 5.1% in September, unchanged from August. Depressed data eased expectations for rate hike later this year. The US dollar index fell from 96.2 on September 30 to 95.4 on October 7 as a result. Global stock market rose during the week-long holiday in China. Dow Jones industrial index rose to 16,766 on October 7 from 16,285 on September 30. In China’s domestic market,...
Facing the twin onslaught of galloping imports and meltdown in global prices, the domestic aluminium industry on Wednesday made a strong pitch for a safeguard duty breather in its meeting with revenue secretary even as its demand for doubling import duty to 10% remains unanswered. Sources said representatives from all three major domestic aluminium producers - Vedanta, Hindalco and Nalco - under the aegis of Aluminium Association of India (AAI) met revenue secretary Hasmukh Adhia and appraised him that since 55% of domestic demand is being met through imports, nearly half of their 2.1 MT capacity is lying unutilised. “The prices of the metal have also crashed. Since April 2011, aluminium prices at London Metal Exchange (LME) have dropped by 42% from $2,623/tonne to $1,540/tonne in August...
Escalating power cost is going to be the single critical factor for the Chinese aluminium smelters trying to stay competitive in the domestic as well as international market- China Cheng Xin International Credit Rating Co. (CCXI) made this observation amid slowing Chinese economy and somewhat declining demand for aluminium. Currently, Chinese aluminum smelters source power mainly in three ways: grid power, captive power, or by purchasing power directly from power plants. High grid power tariffs are increasingly making aluminum smelters economically unviable against falling aluminum prices . Local governments are encouraging aluminum smelters to sign power purchasing agreement directly with local power plants via a market-based mechanism. This has helped reduce cost of production to a...
LME aluminium is expected to retest a resistance at $1,573 per tonne, with a good chance of breaking above this level and rising more towards a range of $1,580-$1,588. The resistance is provided by the 38.2 percent Fibonacci projection level of an upward wave c, the third wave of a three-wave cycle from the Aug. 24 low of $1,506. It temporarily blocks the way towards the range formed by the 61.8 percent and the 76.4 percent levels. However, this wave is capable of travelling to $1,602, the 100 percent level. The resistance thus looks vulnerable. Only a break below $1,553, the 14.6 percent level, could confirm a resumption of the downtrend from the Sept. 9 high of $1,655.50.
