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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With an almost 18% fall in aluminium prices in the past six months on the benchmark London Metal Exchange (LME), all four aluminium smelting units of Vedanta Ltd have slipped into operational losses. Abhijit Pati, chief executive officer of Vedanta Aluminium, said there are chances that the firm’s operating profit will slip into the red this quarter. The company has four aluminium smelting units—two at Jharsuguda in Odisha with an installed capacity of 500,000 tonnes per annum (tpa) and 1.1 million tpa, and two units at Korba in Chhattisgarh with an installed capacity of 245,000 tpa and 345,000 tpa. It is currently operating at a little less than 50% capacity utilization and there is a possibility of a further cut in production if LME prices keep falling. Vedanta Ltd, which has a...
LME aluminium may test a support at $1,547 per tonne, as suggested by a Fibonacci projection analysis and a falling channel. The support is provided by the 161.8 percent Fibonacci projection level of a downward wave C, which developed from the July 15 high of 1,729.50. From Aug. 13, this wave has been travelling in a small channel, the upper channel line of which provides a resistance around $1,560, the 150 percent level. The lower channel suggests a target at $1,530, the 176.4 percent level, which will be confirmed when the metal breaks $1,547.
South Port, New Zealand's southernmost commercial deep water port, has announced a record $7.74 million profit for the 2014-15 year and plans for a $4.25m freight centre servicing road and rail in Invercargill. The Bluff-based company said busy seasonal freight activity had produced a record cargo volume in the year and the highest after-tax profit result in the port operator's history. South Port chairman Rex Chapman said stronger bulk volumes drove overall cargo throughput to the new record level of 2.86 million tonnes while the company's warehousing, container handling and marine functions provided support to core activity. South Port chief executive Mark O'Connor said the lift was largely driven by fertiliser, stock food and dairy-related product while other cargo categories held up...
The London Metal Exchange (LME) confirmed plans to waive fees for its new aluminium premium and steel contracts from launch on November 23 to December 31, a move the exchange hopes will help boost volumes and liquidity. "During that period the Exchange will not charge any trading or clearing fees in respect of any trading in the Aluminium Premium Contracts," the LME said in a note. Trading and clearing fees for the aluminium premium contract range between 50 and 90 U.S. cents. The clearing fee for delivery is 35 cents. Fee incentives and the launch of the new contracts are subject to final regulatory approval from the Financial Conduct Authority and rule change consultations for the Exchange. The exchanges is also planning fee rebates and stipends to cover operational costs for market...
The Government of India has yet again refrained from giving any assurance to the domestic aluminium industry on its demand for an import duty hike. For the second time in a little over a month, on Thursday the top officials of aluminium majors BALCO, Hindalco, Vedanta Ltd and others, under the aegis of the Aluminium Association of India, met senior officials from the Mines Ministry, Department of Revenue, NITI Aayog and the Prime Minister’s Office to press their demand for an import duty hike. The industry has been seeking an increase in import duty of aluminium metal to 10 per cent from the existing 5 per cent and aluminium scrap to 10 per cent from the existing 2.5 per cent. However, no assurances were given on any timeline for the import duty hike, said a member of the Aluminium...
Facing the double whammy of plummeting prices and subdued capacity utilisation, the domestic aluminum industry hinted at resorting to production cuts and retrenchment if the government does not raise import duty to 10% immediately from 5% to protect the home turf from rising imports. “The domestic aluminium industry is bleeding. All producers are running at an EBITDA loss. We are at a situation where the more we produce, the more we incur losses. Though we have not resorted to any production cut so far, if this situation continues for some more time, we would not have any option left which may also lead to job cuts,” said Abhijit Pati, a member of the governing council of Aluminium Association of India (AAI), said. The industry employs 7.5 lakh people directly and indirectly. An AAI...
Aluminium settled down -0.49% at 100.75 tracking weakness from LME aluminum which opened at USD 1,567/mt on Tuesday. LME aluminum touched an intraday high of USD 1,573.5/mt, but was then dragged down by a strong dollar to USD 1,549.5/mt. Finally, the light metal ended at USD 1,551/mt. Also pressure seen after China’s railway shipment fell 10.9% YoY in July, and the country’s power generation dropped 2% YoY in July, pointing to weak Chinese economy. Poor Chinese economic data mean that selloffs in commodity market will persist. Aluminum dropped to the lowest since 2009 as demand concerns mounted on the outlook for slower growth in China, the world’s biggest user. A recent study showed housing starts in the U.S. to have inched up to a nearly eight-year high in July, but also indicated a...
Delhi High Court today sought the Centre's response on Bharat Aluminium Company's (Balco) plea challenging government's decision rejecting its representation to reconsider cancellation of its bid for a Chhattisgarh coal block. A bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva issued notice to the Coal Ministry and sought its reply to Balco's plea by September 17, the next date of hearing. Balco, a Vedanta group firm, had initially moved the court in March this year after its bid, which was the highest for Gare Palma IV/1 coal block, was cancelled by the government amid speculation of cartelisation. The court had thereafter asked the government to consider Balco's plea as a representation and appointed Coal India Ltd as a temporary custodian of the mine. The government in the...
Meridian Energy Ltd, New Zealand's leading electricity generator and retailer, said in a briefing for its annual report, it thinks New Zealand needs a new source of energy by 2019. Earlier the corporation held that the country had adequate power sources and will not require additional power stations for years; however, with uncertainty hovering around demand for electricity which might arise from Tiwai Point aluminium smelter, the company has recently changed its outlook for the country's electricity requirement. Tiwai Point aluminium smelter, controlled by Rio Tinto's subsidiary Pacific Aluminium uses one seventh of New Zealand's electricity. It has been long since talks are on regarding its prospective closure. Despite an agreement inked earlier this month, it could still operate till...
China’s aluminum stocks have been falling for three months running, but the pace will slow down due to robust growth in new capacity, Shanghai Metals Market notes. On the supply side, the scale of aluminum production cuts will be small this year due to falling production costs. Some 2-3 million tonnes of cost-effective new capacity will come on stream in H2, SMM statistics found. Slowing consumption will exacerbate oversupply pressure in H2, SMM’s aluminum research team said.
The government of India said the demand by primary producers to raise import duty is a "tricky" case as the move will help the bigger players -- Hindalco, Balco, Nalco and Vedanta -- but may hurt smaller firms that import scrap. The Ministry is reviewing the case for increasing import duty on aluminium and has met with both the primary producers as well as the small companies who import aluminium scrap for various purposes. "In this case there are two things. On one side there are firms who are importing scrap. On the other hand primary players are only four -- Hindalco, Vedanta, Balco and Nalco -- who tell us to raise the import duty on Aluminium. But if we increase it then the firms who import scrap will be adversely affected. They have also come to us and said that import duty should...
Noranda Aluminum Holding Corporation has lost 4.97% during the past week and dropped 17.98% in the last 4 weeks. The shares are however, negative as compared to the S&P 500 for the past week with a loss of 5.61%. Noranda Aluminum Holding Corporation has underperformed the index by 16.61% in the last 4 weeks. Investors should watch out for further signals and trade with caution. The company shares have dropped 90.02% in the past 52 Weeks. On September 12, 2014 The shares registered one year high of $5.64 and one year low was seen on July 22, 2015 at $0.41. The 50-day moving average is $0.62 and the 200 day moving average is recorded at $2.2. S&P 500 has rallied 6.56% during the last 52-weeks. The company has received recommendation from many analysts. 1 analysts have rated the company as a...
Aluminium settled down -0.25% at 101.25 as prices of major traded-metals tumbled to multi-year lows since last month as weak Chinese manufacturing data added to the brew of excess supply and a strong dollar that has put pressure on several commodities. China’s consumption of industrial metals fueled a more-than decade-long rally in prices after the turn of the century. But concern over the nation’s slowing economic growth has caused metals prices to start sliding over the last twelve months. Data out already shows Japan’s preliminary GDP dropped 0.4 percent q/q, which was slightly better than the 0.5 percent fall expected, but it was the first quarter-on-quarter fall after two quarters of positive GDP. The GDP price index also rose less than expected. Data out later included the EU trade...
Aluminium gained 0.49 per cent to INR 103.40 per kg in futures trade after speculators widened positions amid positive cues from global markets. Besides, increased demand at domestic spot markets influenced prices. At the Multi Commodity Exchange, aluminium for delivery in August rose 50 paise, or 0.49 per cent, to INR 101.75 per kg in a business turnover of 188 lots. Also, the metal for delivery in September traded higher by 40 paise, or 0.39 per cent, to INR 103.40 per kg in seven lots. Market analysts said the rise in aluminium prices at futures trade was mostly supported by a recovery in metal at the London Metal Exchange and rising demand at spot markets here.
Hind Aluminium Industries has reported a standalone total income from operations of INR 188.35 crore and a net profit of INR 2.58 crore for the quarter ended Jun '15. Other income for the quarter was INR 0.33 crore. For the quarter ended Jun 2014 the standalone total income from operations was INR 81.17 crore and net profit was INR 0.87 crore, and other income INR 1.31 crore. Hind Aluminium shares closed at 76.40 on August 14, 2015 (BSE) and has given 57.20% returns over the last 6 months and 64.83% over the last 12 months.
Aluminum dropped to the lowest since 2009 as demand concerns mounted on the outlook for slower growth in China, the world’s biggest user. Stocks in Shanghai tumbled the most in three weeks as Chinese investors lowered expectations for further monetary stimulus after data showed home-price gains are spreading. The Asian nation, which consumes about half of aluminum, is growing more slowly than official data suggest. “China’s sharply lower stock prices makes everyone nervous, and the overall situation for copper is concern that global demand is going to continue to deteriorate,” said Bill O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey. “The Chinese situation is crucial for metals in general, and there’s little incentive to buy the market.” Aluminum fell as much as...
Indian aluminium producers such as Vedanta and Hindalco will meet officials at the Prime Minister's Office and policy think tank NITI Aayog this week to press for higher import duty on aluminium in the face of falling global prices. The domestic industry leaders will meet the mines secretary on Wednesday and the PMO and NITI Aayog on the following two days, industry insiders said. International aluminium prices had fallen to $1,523 per tonne on the London Metal Exchange on Tuesday, down from $2,200 in over a year. The Aluminium Association of India said increasing imports have led to the share of domestic producers dropping to 45% in 2014-15 from 60% in 2010-11. The association has been lobbying for a doubling of duty from 5% to 10%, and for 10% duty on aluminium scrap. In a statement in...
Century Aluminum has announced several cost reduction initiatives during its 2Q15 earnings call. Several mining companies, including Freeport-McMoRan, have announced such initiatives. As commodity prices from aluminum to copper are testing their multi-year lows, cutting down on every possible cost has become imperative for companies operating in this space. The company is expecting annualized cost savings between $15 million and $20 million from a headcount reduction. A similar amount is expected from a reduction in operating expenses. Century Aluminum is also expecting annualized savings of $5 million to $10 million each from lower raw material costs and closure of the Ravenswood plant. According to Century Aluminum, it has negotiated some price concessions with its power suppliers. As...
