In the final three trading days before the National Day holiday, the South China spot market stayed soft: aluminium prices continued to edge lower, the SHFE aluminium backwardation structure strengthened, and premiums over the next-month and far-month contracts were actually elevated. Ahead of the holiday, the willingness to cash out at the high basis was strong, and amid ongoing destocking, discount-priced cargoes still dominated spot circulation; demand was largely subdued, with only localized bargain-hunting replenishment and quite limited buying interest. On the whole, however, the high spot premium for aluminium ingots in South China remained largely intact. As of September 30, the SMM A00 aluminium (Foshan) spot premium over the 2610 contract stood at RMB 260 per tonne, still within...
Four days to go, and the aluminium world is getting ready to move to Düsseldorf. From October 6-8, the city will host ALUMINIUM 2026 , with more than 800 exhibitors and partners and over 21,000 trade visitors expected at Messe Düsseldorf. The event will bring together producers, recyclers, downstream manufacturers, technology providers, equipment suppliers, policymakers and end users from across the global aluminium value chain. The 2026 edition comes at an important point for the aluminium industry. European producers are facing pressure from energy costs, international competition and tighter climate requirements, while concerns around raw material security and resilient supply chains continue to grow. At the same time, demand for aluminium is expanding across electric mobility,...
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Facing shortage of fuel and raw material, domestic primary aluminium players are likely to bid for captive coal blocks aggressively in the upcoming auctions, credit rating agency ICRA said today. Their "operational challenges" stem from the deallocation of coal blocks allotted to them earlier and inadequate coal has forced these firms to operate at lower level, it said. Hindalco and Sesa Sterlite are the major aluminium firms in the private sector and Nalco in the public sector. "...Aluminium capacity is currently at a surplus compared to consumption. However, the utilisation rates of the recently commissioned smelters would continue to be constrained by raw material and fuel availability issues, narrowing gap between demand and supply," said ICRA. "Recent de-allocation of captive coal...
China Power Investment Corporation (CPI) produced 2.67 million tonnes of aluminum in 2014, its General Manager Chen Qizhou said in a recent report. The company – among China’s top 10 aluminum producers – also produced 73.79 million tonnes of coal last year, the report showed. The article is edited by SMM and is provided for information purpose only. SMM assumes no liability and does not warrant the accuracy, reliability or completeness of information contained or quoted in the article, either express or implied. SMM further disclaims any liability for losses in connection with the information contained or quoted in the article.
UC RUSAL, a leading global aluminium producer, announces its operating results for the fourth quarter and full year 2014. Key highlights • Total aluminium production amounted to 3,601 thousand tonnes in FY14 (-7% YoY) and 915 thousand tonnes in 4Q14 (+1% QoQ). • Share of value-added products continued to grow and reached a record 45% of total aluminium production in 2014 in comparison with 42% for the previous year. • RUSAL alumina output totaled 7,253 thousand tonnes in FY14 (-1% YoY) and remained flat at the level of 1,818 thousand tonnes in 4Q14. • RUSAL bauxite production amounted to 12,108 thousand tonnes in FY14 (+2% YoY) and 2,932 thousand tonnes in 4Q14 (-11% QoQ). The management remains focused on further increases of an efficient upstream vertical integration. • The average...
Sesa Sterlite Limited today announced its unaudited consolidated results for the third quarter (Q3) ended 31 December 2014. Financial Highlights: • Q3 FY2015 Revenues at Rs. 19,128 crore • EBITDA at Rs. 6,234 crore; EBITDA margin of 43%1 • Attributable PAT excluding exceptional items at Rs. 1,588 crore • Gross debt reduced by Rs. 1,470 crore in 9 months • Strong balance sheet with Cash & Cash equivalents of Rs. 47,000 crore Operational Highlights for aluminium and power sector: • Strong operating performance at Aluminium and newly commissioned pot-lines ramping up • Received approval to start the BALCO 1,200 MW power plant; trial runs to start in Q4 • First 660MW unit of 1,980 MW Talwandi Sabo Power Plant commenced commercial operations • Reviewing capex & opex plans across businesses to...
While the world is locked in debate about the state of aluminium globally, some 33 analysts believe that the average price of the metal will stay around $1,965 a tonne this year, 1.8% lower than the forecast made earlier but the downward revision is the smallest within the base metals this quarter. The demand for the metal stays positive as the automotive and aerospace industries are still vying for the light metal and the output outside China is kept low pushing the market to an expected 54,500-tonne deficit this year as opposed to the 38,500 surplus predicted for 2014 in October polls. An earlier estimation of 102,500-tonne deficit was made by analysts in a previous poll with a prediction of a higher 125,000 tonne deficit in 2016. The supply is indeed seen to be tightening with the...
On Wednesday, National Aluminium Company (Nalco) commissioned a 160-KWp rooftop solar project at the corporate office located in Bhubaneshwar. The State Union Minister for Steel and Mines, Vishnu Deo Sai, inaugurated the project in presence of Ansuman Das, the Nalco CMD. The INR 1.25-crore project is the first and largest rooftop solar-power generating system commissioned in the state and an example of the company’s attempts to look for greener ways of achieving power sources to feed their plants. There is another 100-KWp rooftop solar plant that Nalco is preparing to install at its township in Nalco Nagar, with more such attempts planned all across the state, and is also scouting for more suitable locations in India to set up units for solar power generation.
Press Metal Bhd will invest RM2bil in the Phase 3 expansion of its aluminium smelter project to raise production capacity, said group chief executive officer Datuk Paul Koon Poh Keong. He said the additional capital injection would bring the company’s total investment in aluminium smelting facilities in Sarawak to RM5.5bil. The Phase 3 expansion will be located next to the company’s existing smelter in Bintulu’s Samalaju Industrial Park within the Sarawak Corridor of Renewable Energy (SCORE). Press Metal also owns an aluminium smelter in Mukah. Both smelters are currently in full operations. “Every year, we (Press Metal) generate more than US$1bil in aluminium exports for the country,” said Koon in a presentation at a SCORE forum. The forum was part of the three-day International Energy...
SNC-Lavalin has been awarded a contract by Emirates Global Aluminium (EGA) to carry out an energy optimisation project at its Jebel Ali facility. EGA is the company that was set up following the merger between Emirates Aluminium (Emal) and Dubai Aluminium (Dubal). The contract will involve an upgrade of the three original potlines at the former Dubal smelter, which now has seven potlines. A system developed in other EGA plants will be introduced, as well as a new potline control system. SNC Lavalin said the engineering, procurement and construction (EPC) contract was already underway and that work is set to conclude in 2017. “We are proud to be a part of EGA’s continued growth and success,” said Dale Clarke, executive vice-president of the firm's mining and metallurgy business. Following...
According to an announcement by Public Procurement Service (PPS) of South Korea last week, it has granted a tender to buy 3,000 tonnes of primary aluminium at a premium of $383 per tonne. It was Prowell Resources Corp who was awarded the tender to supply London Metal Exchange-registered brand of high-grade primary aluminium ingot. It was also directed not to be from China, Russia, India and Egypt. Delivery is expected by April on a CIF Busan basis. In tenders that closed last week, PPS had bought 2,000 tonnes of aluminium for a premium of $375 per tonne over the LME cash price.
After a test phase lasting several months, the TRIMET plant in Saint-Jean-de-Maurienne put a vertical continuous caster into full operation on December 10, 2014. With an annual production capacity of around 60,000 tons of rolling ingots, the system represents a strategic addition to the product portfolio of the facility in the French Alps. Around 145,000 tons of primary aluminum is produced here annually. In addition to rolling ingots, aluminum wire for the energy and automotive industries is mainly produced by some 500 employees in Saint-Jean-de-Maurienne and the sister plant in Castelsarrasin, in southwestern France. TRIMET took over the plants at the end of 2013 and has since consistently worked toward full utilization of the production capacity. The recommissioning of the continuous...
Aluminium Bahrain B.S.C. (Alba), recognised as a leading environment-friendly aluminium producer, is proud to announce that it has been declared a winner of the “The Green Era Award” for 2015. Granted by the French “Otherways Association” to companies and firms from both public and private sectors who have made sustainability a key driver in their business strategy, Alba was awarded for its outstanding environmental achievements and sustainable practices. Commenting on this achievement, Alba’s Chief Operations Officer, Isa Al Ansari said: “Alba continues to make great strides in its positive contribution to a “greener” world. We are proud to win the Green Era Award as it recognises the Company’s on-going commitment to responsibly manage its operations, thus making a positive impact on the...
The global aluminium stockpiles drops to the lowest it has been in more than five months, tightening supply and pushing the aluminium prices up. London Metal Exchange tracked the metal stockpiles to find that it has now hit 4.08 million which is the least it has been since May 2009. Aluminium prices also were bolstered by the expectation of new business opportunities in Europe as a result of positive economic stimulus. Equities have been trading high in Europe inching towards a seven-year high on January 26. The commodity has also gained 1.4% this year, making it the best performing metal among the six listed on the LME. Aluminum for delivery in three months rose 2.6 percent to $1,879 a metric ton at 5:51 p.m. on the LME, gaining the most since Jan. 16. Prices fell 1.9 percent in the...
Global aluminium fundamentals would have been in a much better state had the Chinese industry exercised the same kind of production discipline as was seen in other regions, especially Europe and America. Of the global aluminium production of 53.746 million tonnes (mt) in 2014, China alone accounted for 27.98 mt. On a quarter-on-quarter basis, aluminium capacity use in China ranged from 82 per cent to 84 per cent, several percentage points higher than in other countries. That there hasn't been any capacity decommissioning in China isn't true. Many believe under pressure from the Xi Jinping-led government, high-cost and polluting smelters with a combined capacity of 2.1 mt have stopped production permanently. Another 1.5 mt of capacity is due to be scrapped. Some Chinese aluminium producers...
The strength of Emirates Global Aluminium ("EGA") in being able to meet future primary global aluminium demand was highlighted during the Platts Aluminium Symposium 2015, which was staged in Scottsdale, Arizona from 18 to 20 January. Speaking at the symposium, of which EGA was one of the sponsors, Adel Abubakar (Managing Director of DUBAL America Inc.) told delegates how statistics show the Americas and Asia - both key EGA markets - will provide the major sources of growth in primary aluminium demand. "Global primary aluminium demand is expected to grow at a Compound Annual Growth Rate ("CAGR") of 7.6% from 2014 to 2017 with statistics indicating that Asia and the Americas will generate the greatest share of aluminium demand in the next few years," said Abubakar, citing industry analysts....
Chinese refined aluminum imports in December fell to a six-year low as domestic production surged. Inbound shipments of primary aluminum shrank to 1,857 tons in December, a tumble from 76,060 tons the previous year, according to data from the General Administration of Customs on Friday. The monthly figure was the lowest since June 2008. Full-year imports slumped 27 percent to 267,700 tons. The fall in imports reflects China’s rising output of refined aluminum and its surging aluminum product exports. Its primary aluminum output rose 7.7 percent to a record 24.4 million tons last year, according to data from the Ministry of Industry and Information Technology. Global aluminum makers may add a net 3.9 million tons of new capacity this year, a 39 percent increase from 2014, according to...
The governor made this remark, at the time of his visit to the aluminum plant, in order to inspect the asphalt paving associated with the aluminum plants. He added that the aluminum smelter collaborated with the State in 2008, when there was a hard drought in the Guri River, which is located to the eastern part of the Venezuela, and electric power had to be conserved. The workers never hesitated to turn off almost all of the plant’s power in order to provide electricity to the Country. Recovering from such a setback, takes hard work, and the company is still putting in the effort to recover. Rangel stated that it is very possible for the company to recover. He also added that the company had broken a production record during the oil strike in 2002-2003. Hence there is no doubt in the...
Global primary aluminium demand is expected to grow at a compound annual growth rate (CAGR) of 7.6 per cent from 2014 to 2017 with Asia and the Americas generating the greatest share of demand, said a top official. UAE-based Emirates Global Aluminium (EGA) exported 56 per cent of its production in 2014 to Asia and the Americas, explained Adel Abubakar, managing director of Dubal America, highlighting that the company was well placed to achieve further market share. He was speaking at the recent Platts Aluminium Symposium 2015, which was staged in US city of Scottsdale, Arizona. Abubakar added that substantial future growth will be in value added products - a niche focus for EGA, where about 85 per cent of the 2.4 million tonnes manufactured each year comprises re-melt products, billets...
South Korea’s stockpiling agency, Public Procurement Service (PPS), will buy 2,000 tonnes of aluminium through two separate tenders that closed on Wednesday January 21. The tenders were awarded to LG International Corp for a premium of $375 per tonne, PPS said. "One tender is for good western [material] and the other for non-good western material," a trader said. The delivery is due in the port of Busan, South Korea, in April, he added. On the London Metal Exchange, the spread on the cash-to-three-month aluminium contract narrowed to $2.25 on January 19, from $19 a week earlier.
