Aluminium prices came under renewed pressure on October 1 as expectations of improving supply, stronger Chinese exports and a firmer USD weighed on the market. Aluminium settled 0.73 per cent lower at INR 340.65, while expectations of tighter US monetary policy added to the broader macroeconomic pressure. The decline comes as several aluminium smelters prepare to restart previously idled capacity, while others move ahead with expansion plans. These developments are raising expectations that global aluminium availability could improve in the coming months. China exports add to supply pressure China is emerging as another important factor for the aluminium market. Rising exports are partly offsetting supply disruptions in the Gulf, with August aluminium exports increasing 17.2 per cent...
According to SMM statistics, on September 30, aluminium billet inventory in major consuming regions in China stood at 149,500 tonnes, up 500 tonnes WoW from last Thursday and down 5,000 tonnes from this Monday, with inventory consolidating at highs and basically flat overall. On a year-over-year basis, inventory was about 35,000 tonnes higher than the same period in 2025 and about 41,000 tonnes higher than the same period in 2024, with total inventory still at the highest level for the same period in the past four years. From the perspective of warehouse withdrawals, aluminium billet withdrawals from September 21 to September 28 totalled 44,800 tonnes, holding near 45,000 tonnes for two consecutive weeks. By region, Foshan inventory stood at 69,500 tonnes, down 3,000 tonnes from last...
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LME aluminium has found a support at $1,603 per tonne, and may hover above this level or rebound to $1,653. The support is provided by the 100 percent Fibonacci projection level of a downward wave C, the third wave of a three-wave cycle that developed from the Sept. 2, 2014 high of $2,119. This wave may end either around this support or extend into a much lower range of $1,371-$1,459, formed by the 161.8 percent and the 138.2 percent levels. Regardless of a possible extension of this wave, aluminium may first bounce towards $1,653, the 86.4 percent level.
Alcoa ramps up its criticism of the Commodity Futures Trading Commission (CFTC)'s intervention in the London Metal Exchange's warehousing reform plan, challenging the commodity regulator's handling of the issue for a second time in as many months. In a letter late last month, Alcoa general counsel Max Laun called on CFTC chairman Timothy Massad to retract the regulator's decision to delay ruling on the LME application to register as a "foreign board of trade" in the U.S. The letter again accused the CFTC of overstepping its authority in attempting to regulate a foreign exchange as it privately pushed for the LME to introduce reforms, including a cap on rents at warehouses. The move shows rising concerns among aluminum producers about the impact of the LME rule changes on prices, which...
Aluminium settled down -0.34% at 102.55 traded under pressure from a globally oversupplied market due to Chinese exports. Three-month Lme aluminium earlier touched a six-year low at $1,601.50 a tonne, a drop of more than 20 percent since early May. The metal used in transport and packaging ended at $1,612, down from $1,618 on Friday. Slowing Chinese economy and poor market fundamentals should keep LME aluminum in check around USD 1,600/mt on Tuesday. Production cuts in China cannot offset growing new capacity and falling consumption. While LME aluminium and ShFE aluminium steadied from six-year and record lows respectively, trapped by a swelling global surplus. Also US factory activity slipped in July and consumer spending advanced at its slowest pace in four months in June, indicating...
A massive explosion rocked a southeast Missouri aluminum plant Tuesday, injuring some workers and creating a plume of smoke that could be seen for miles. The explosion and fire occurred around 12:30 p.m. at the Noranda Aluminum plant near the town of Marston in New Madrid County, about 170 miles south of St. Louis. Noranda spokesman John Parker said all workers had been accounted for and there were no life-threatening injuries. He said some people suffered what appeared to be non-critical burns and smoke inhalation. Parker said one of the injured workers was taken to a hospital for treatment. Others were treated at the scene. Parker said a molten metal explosion occurred in the cast house of the plant, where aluminum is converted into finished products. Production in the cast house has...
Chinese aluminum producers aren't curbing their output despite the metal's slump to a six-year low, suggesting the price of one of the world's most heavily-traded metals still has far to go before finding a floor. Metals producers normally usher in supply cutbacks when prices fall as hard as they have done for aluminium this year. But with a host of new cost-efficient smelters now online in China, few there are considering cutbacks. That is bad news for the broader market as surging Chinese aluminum exports in recent months have been one of the biggest drivers of the metal's price plunge. China accounts for about half of the world's aluminium production. Three-month aluminum futures are hovering near a six-year low of $US1601.50 per ton reached on Monday this week, down by nearly 13 per...
Global mining giant Rio Tinto's New Zealand subsidiary indicates that it plans to keep the country 's only aluminum smelter operating with a deal to purchase electricity beyond 2017. Meridian Energy, a state-controled power generator, announced Monday that it had signed an electricity agreement with New Zealand Aluminium Smelters Ltd (NZAS) following extended negotiations. NZAS was committed to buying 572 Megawatts of electricity from Meridian to run the smelter at Tiwai Point, in the far south of the South Island, at full capacity, Meridian chief executive Mark Binns said in a statement. Meridian was committed to cover Tiwai Point's electricity usage at current production levels through to 2030, but NZAS retained a right to terminate the agreement with 12 months notice from the start of...
Despite steady growth in demand in the domestic market, India's aluminium producers are spending sleepless nights, the reason being rising imports eating into their market shares. The demand for the white metal has been growing steadily at a CAGR of 6 per cent since 2010-2011, driven by increased consumption in the automobile and construction sectors. In 2014-2015, demand grew 6.2 per cent to nearly 2.4 million tonnes (mt). Yet, market share of the domestic producers has declined from 60 per cent to 45 per cent in the last five years. Imports from China and Middle East are on the rise. A substantial part of these imports is constituted by scrap and waste material. In 2014-15, the share of scrap and waste in 1.563 mt of aluminium imports was 860,000 tonnes. This is adding to the aluminium...
Vedanta Resources Plc releases Production reports for the First Quarter FY 2016. Vedanta reports record quarterly aluminium production and continued high utilisation rate at Lanjigarh alumina refinery. Tom Albanese, Chief Executive Officer, Vedanta Resources plc, said: "In Q1 we saw continued volatility in commodity prices…. We continue to focus on improving efficiency, costs, and enhancing production across our well-invested asset base… Our diversified business model supported by strong operating strengths and structurally low cost assets will enable robust long term returns to stakeholders." Highlights for the aluminium segment are given below: The Lanjigarh alumina refinery operated at a high utilisation rate and produced 269,000 tonnes in Q1 FY2016, 15% higher than Q1 of last year....
ICICIdirect has maintained 'Hold' on Vedanta following announcement of company's first quarter results. The stock broker fixed price target to INR 135. Commenting on the results, ICICIdirect said, ''Vedanta reported a mixed set of Q1FY16 numbers. The EBITDA came in below our estimates while on the back of forex gain, PAT came in higher than our estimates. The key disappointment came in from the aluminium segment on the back of a steep fall in aluminium realisations and premium. While the EBITDA of Vedanta Aluminium (VAL) declined 66% QoQ and 60% YoY to INR 1.78 billion, Balco reported an EBITDA loss of INR 1.69 billion.'' Commenting on the investment rationale, ICICIdirect said, ''For the quarter, Vedanta reported a muted performance on account of the subdued performance from the...
A meeting of the Board of Directors of National Aluminium Company Ltd will be held on August 12, 2015, to consider and take on record the Un-audited Financial Results of the Company for the quarter ended on June 30, 2015. Shares of NATIONAL ALUMINIUM CO.LTD. was last trading in BSE at INR35.3 as compared to the previous close of INR 35.55. The total number of shares traded during the day was 166092 in over 1197 trades. The stock hit an intraday high of INR 36.05 and intraday low of 35.25. The net turnover during the day was INR 5931692.
Aluminum falls to a six-year low after manufacturing weakened in China, the largest metals user. A private Chinese factory gauge released on August 3 fell to a two-year low in July and an official index last week slipped to the lowest in five months, adding to a near-$4 trillion rout in Chinese stocks. The country uses about 50 percent of the world’s aluminum. “It’s no surprise, but this is just another piece of bad news,” said Nic Brown, head of commodity research at Natixis SA. “What we need to see now in the industrial metals market is what China is going to do in order to support growth over the coming years.” Commodity prices have slumped to the weakest level in 13 years as supply gluts emerged in everything from oil to metals and crops. The Bloomberg Index of Industrial Metals fell...
LME aluminum drifted lower after opening at USD 1,641/mt last Friday. It rallied to USD 1,643/mt at one point as weak US economic data softened the US dollar. However, it fell back later as the US dollar regained strength, and ended at USD 1,620/mt. Trading volumes were up 4,689 lots to 13,124 lots, and positions were down 619 to 879,000. Crude oil futures prices recorded its biggest single day decline since the 2008 financial crisis on July 31. OPEC expressed no intention of production cuts, and drilling activity in the US increased, causing crude oil to fall. Last Friday night, SHFE 1510 aluminum contract moved below the 5-day moving average after opening at RMB 12,245/mt, and finished the night session at RMB 12,225/mt. Trading volumes were down 16,690 lots to 10,924 lots, and...
The future of the Tiwai Point aluminium smelter looks assured after South Island power generator and retailer Meridian Energy signed a variation to its existing deal with the Rio Tinto-controlled with New Zealand Aluminium Smelters Ltd (NZAS). NZAS had the right to terminate the existing contract today with effect from 1 January 2017. By signing this variation, the right has been waived. "It has been a complex and demanding negotiation, but this is a good outcome for Meridian," Meridian chief executive Mark Binns said in a statement. NZAS said the deal would allow the smelter's three potlines to remain fully operational. Chief executive Gretta Stephens said this was good news for the NZAS workforce, Southland and New Zealand. "We have crossed a hurdle today and now have more certainty...
The average cost at Chinese aluminum smelters dropped 3.57% month-on-month in July, driven by lower power costs, SMM survey showed. Power costs fell 7.8% compared with June. Some aluminum smelters have received preferential power tariffs due to China’s power reform. Smelters with captive power plants benefited from falling coal prices. These positive factors allowed the average power tariff at those surveyed to fall to 0.3 yuan/Kwh, down 0.045 yuan/Kwh from early June. Alumina cost slid 0.82% on a monthly basis.
Anil Agarwal led Vedanta Resources said it is planning to restructure high-cost operations in aluminium segment and has suspended ramp-up at its plant due to volatile commodity market. The mining conglomerate has been facing a challenging environment as global commodity prices are undergoing a volatile phase leading to downward pressure on prices, affecting the company's profit and revenue. "In light of the low LME (London Metal Exchange) prices and premiums we are reviewing restructuring some of our high cost operations in the Aluminium segment," Vedanta Resources said in a statement. EBITDA (operational earnings) for the June quarter was significantly lower and negative at USD (1.9) million due to reduced LME and metal premiums and USD 37 million provision made for RPO for previous...
Demand for aluminium has gradually picked up in China along with improved domestic macro-economy. Especially in domestic real estate market, the sales volume and selling price of apartment and house have rebounded. Domestic aluminium price has declined significantly. There is an expectation that production cut of high-cost capacity will happen again in domestic aluminium smelting sector in the coming months, which will further ease the surplus on domestic aluminium market. According to China Nonferrous Metals Industry Association (CNIA) China’s consumption in 2015 is forecast to grow at a lower rate than previous years, at 6 per cent, facilitating 25.5Mt of consumption. Demand will continue to be underpinned by consumer durables and the automotive industry. World aluminium consumption is...
LME aluminum will fall to $ 1,630-1,660 per tonne next week, Shanghai Metals Market foresees. Expectations for US interest rate hike will keep the US dollar index elevated, thus pressuring LME aluminum. Selling pressure at highs and tumbling Chinese stock market will send SHFE 1510 aluminum contract down to 12,150-12,300 yuan per tonne.
Arab nations exported $3.377 billion worth of products to Brazil during the first half of 2015, according to the statistics released by Brazil's Ministry of Development, Industry and Foreign Trade, and compiled by the Arab-Brazilian Chamber of Commerce. Exports from Qatar grew 87.96 per cent to reach $424.50 million in the first half of 2015 from $226 million in the same period of 2014. Kingdom of Saudi Arabia exports hit $776 million, followed by Kuwait's $243 million and the UAE's $239 million during the first half of 2015. Other Arab countries, including Egypt, Oman and Bahrain exports reached $54.36 million, $41.45 million and $33.36 million, respectively. Dr Michel Alaby, secretary-general and CEO of Arab-Brazilian Chamber of Commerce, said: "The flourishing exports from the Arab...
