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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On Monday, William Oplinger, the Chief Financial Officer of Alcoa Inc. said that the company has used an aluminium price which also includes the benchmark futures and also the regional premiums which are comparable to present level for its forecast for 2015 of $500 million. However, while announcing the fourth quarter reports Oplinger did not mention the aluminium price which the company used in its projects for 2015. He however mentioned that those were "similar to the market situation that we have today." His remarks will possibly start a debate over the issues of physical premiums that are paid according to the futures even for physical delivery. The Australian bank said "with the Chinese surplus expected to slightly widen" it also expects that there will be a trivial aluminium deficit...
Japan’s high aluminium imports and weakening demand in the domestic front and elsewhere in Asia has given rise to stockpiles held at the three important ports of Japan for the ninth straight month, hitting a record high in December. The trading house, Marubeni Corp revealed on Friday that aluminium stocks held at Yokohama, Nagoya and Osaka rose to 413,000 tonnes in December, up by 9% from November which was already the highest level recorded since April 2000. The sudden rise of the stockpiles is due the reduced imports in China where export of the metal was seen to rise 19% last year, a trend that is expected to continue this year. Meanwhile, Japan’s import of aluminium ingot imports rose by 16% to 1.58 million tonnes during the period between January and November, according to the...
Hydro’s fully owned casthouse technology provider, Hycast, celebrates 25 years this week. “After some challenging years, the outlook now is promising,” says the managing director of Hycast, Helge Jansen. Over the years, Hycast has developed several game-changing casting technologies for Hydro, including the SIR in-line melt refiner system, which purifies molten aluminium from hydrogen and inclusions, and the RAM station, which removes alkali metals. On Thursday this week, the company marked its anniversary with a seminar on trends in the aluminium industry. “Not only are we celebrating our 25-year-long history, we are also celebrating 25 years without any work-related injuries to our employees,” says Jansen. Following the financial downturn that hit the aluminium industry in 2009, the...
There is a distinct shift noticed in the Chinese market from heavy metals to minerals that were once overlooked. The bearish outlook in core industries like iron ore and coal is largely responsible for the shift in focus. The minerals that have gained importance are bauxite – for making aluminium, zinc, copper, natural gas and uranium that are the feedstock for numerous consumer goods like washing machines, air conditioners and cars that are growing in demand amongst the 1.4 billion consumers in China. It has already been noticed that China has become the second largest consumer in the world after US, beating Japan. Euromonitor International forecasts that among the vast population, nearly 90 percent of Chinese households amounting to 470 million by 2030 will have around $15,000 or more...
Aluminium companies having large smelters at advanced stages are likely to bid more aggressively in the upcoming India coal block e-auction than the cement and steel sector players, whose margins have similar (but lower than that for aluminium) level of coal price sensitivity, according to a report by ICRA. As per an ICRA analysis, among the “non-regulated” sectors, coal cost relative to product price is the highest for the aluminium sector. Additionally, its margin also has the highest sensitivity to coal prices. The financial year 2014-15 has been a year of immense significance for the domestic coal sector. The various policy actions of the SC and Government of India have created an environment of rule-based coal mine allocation in the country, as against a “non-transparent” and...
Broekman Distriport is to handle and store around 600,000 tonnes of aluminium a year from Norway for logistics service provider Pacorini Metals. In this connection, Pacorini has signed a long-term contract with the Norwegian aluminium producer Hydro, the Port of Rotterdam said in its press release. Pacorini, a subsidiary of Glencore, will distribute the rods and bars onwards from Rotterdam, in the Benelux, Germany, France, Spain and Italy, among other places. The majority will be transported by road, but rail and inland shipping will also be used for larger shipments. The aluminium comes from smelters in Sunndal, Husnes and Karmoy. The cargo will be shipped into Rotterdam’s Brittanniëhaven twice a week by the Norwegian shipping line Sea-Cargo, with which Broekman recently concluded a...
Aluminium futures prices fell 1.35% to INR 109.35 per kg today as speculators reduced positions amid a weak trend in base metals at the London Metal Exchange. At the Multi Commodity Exchange, aluminium for delivery in January lost INR 1.50 paise, or 1.35%, to INR 109.35 per kg, with a business turnover of 247 lots. The metal for delivery in February also shed INR 1.45, or 1.30%, to trade at INR 110.35 per kg in a turnover of 22 lots. Marketmen said a weak trend in the base metals pack at the London Metal Exchange as slowing global growth dims the outlook for commodities and subdued demand from consuming industries at domestic spot markets, mainly put pressure on aluminium prices at futures trade here.
Shanghai Metal Market forecasts that the overproduction in China coupled with the potential fall in the alumina prices could drag the spot aluminium price down to 12,000 yuan ($1,957) in Q1 2015. The relentless Chinese aluminium output is likely to soar in Q1 while the consumption will not be as robust since all major aluminium processors will be closing shop for the Chinese New Year causing the aluminium stockpiles to grow. With the current SMM spot price at 12,730 yuan as recorded on January 8, most of the aluminium capacities, nearly 42% or 12.71 million tonnes, are suffering a loss in cash lots. The SHFE 103 aluminium contract on the other hand had a better performance finishing the night session at RMB 12,735/mt despite the lower start at RMB 12,705/mt.
China’s aluminium market continues to be in oversupply pulling down the local aluminium prices and increasing the appeal for exporting the aluminium overseas. Traders and analysts believe that this trend is likely to continue in the coming months. The increased inflow of Chinese aluminium market will definitely control the widening deficit seen in the western world but also trigger a fierce competition in the market as the top western producers are at the moment negotiating high premiums for the physical delivery of the metal. Analysts state that the reason the Chinese producers are so active despite the falling prices is because they do not base their production volumes on the market economies but rather on debt. As long as they have their debt to repay, they will continue to produce...
Market analysts predicts that Hindalco Industries is likely to suffer higher production costs after the Supreme Court cancelled the four coal blocks, Mahan, Tubed, Talabira-1 and Talabira-2 allocated to the company. Hindalco had been enjoying a low average production cost, among the lowest in the industry, of INR 1,700, per tonne before the cancellations. Since coal and power take up nearly 35% of the production costs, the uncertainty surrounding the coal supply will definitely hamper the cost of production. The originally Hindalco allotted mines have now been handed over to other regulated sectors which means they are out of reach for Hindalco and the company needs to bid for other mines that are not as close as the previous ones were. Antique Stock Broking Ltd. submitted a report on...
Spot aluminum in China could crash through 12,000 yuan ($1,957) per tonne in Q1 2015, pressured by worsening supply glut and potential fall in alumina prices, Shanghai Metals Market foresees. China’s monthly aluminum output is expected to continue rising in Q1. Aluminum consumption, however, might weaken further as processors begin to close heading into the Chinese New Year. Both factors will cause aluminum stocks to mount. SMM spot aluminum price slumped to 12,730 yuan per tonne January 8. This has left 42% or 12.71 million tonnes of China’s aluminum capacities in losses in cash costs.
Outotec, a leader in the global mineral and metal processing technology, is planning to acquire Kempe Engineering’s aluminium smelter technologies along with Middle East and Africa’s service and spare parts business. The Australian-based, privately owned Kempe is a technology provider for aluminium smelters, operation and maintenance services, modernization services and spare parts. Both parties refused to disclose the agreed price for the acquisition. The combination of Kempe and Outotec’s resources will strengthen the latter’s technology and service business in the Middle East and Africa and allow them to expand their reach by acquiring new capabilities and opportunities. "The Kempe acquisition supports our technology and service business growth especially in the Middle East and...
Lightweight metals leader Alcoa today reported a jump in fourth quarter and full-year 2014 profits, culminating a year of significant transformation for the Company. Alcoa is reshaping its portfolio for profitable growth by building its innovative, multi-material value-add businesses and by creating a globally competitive commodity business. In fourth quarter 2014, Alcoa reported net income of $159 million, or $0.11 per share, which includes $273 million in special items largely tied to previously announced restructurings in the upstream and midstream businesses, aligned with the Company’s objective of enhancing its portfolio. Year-over-year, fourth quarter 2014 results are up from a net loss of $2.3 billion, or $2.19 per share. Excluding the impact of special items, fourth quarter 2014...
Iran’s aluminum industry has produced 263,000 tons of aluminum ingot in the first nine months of the year (March 21 – December 21, 2014). According to a report published by the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), 262,944 tons of aluminum ingot have been produced over the mention period. The figure shows 2,000 tons above the scheduled production, the report said. Over the nine-month period, 188,956 tons of alumina powder, 112,708 tons of lime and 321,225 tons of aluminum hydrate have also been produced in the country, the report stated. Iran’s aluminum ingot production in the years of 2011 to 2013 stood at 318,000, 337,000 and 350,000 tons, respectively. Iran’s aluminum production is planned to hit 1.5 million tons by the end of the...
Alcoa, one of the largest aluminium producers, is due to announce its Q4 2014 results on Monday evening and the investors are expecting a positive result. Considering the rising demand of the light metal in automobiles, trains, planes, housing and military gear construction the past quarter and the present year is looking to be a good one for the company and the industry as a whole. Twenty renowned analysts were polled by Thomson Reuters and they have reached a consensus that the Q4 earnings will result in a 27 cent climb per share which is great leap from the 4 cents per share rise seen a year ago. The projected revenue is likely to rise 8.1% to $6.04 billion. The demand for aluminium in automobiles does not seem to be hampered by the low fuel costs at present and Alcoa is also venturing...
Aluminium Bahrain B.S.C (Alba) sales figures for the year rose by 1.3% year-on-year (YoY) to reach 931,526 metric tonnes (mt) versus 919,722 mt in 2013 ahead of the company’s own forecast for the year while production figures were up by 2.1% YoY to reach 931,427 mt versus 912,700 mt in 2013. For the fourth quarter of 2014, sales figures grew to 242,322 mt - a 2% YoY versus 237,534 mt in Q4 2013; production figures topped 233,920 mt, an increase of 4,004 mt as compared to the same period of 2013. In addition, Alba was able to sustain Value-Added (VA) sales for 2014 with an average of 66% of total shipments. Commenting on Alba’s sales and production for 2014, Alba’s Chief Executive, Tim Murray said: “We continue to build momentum and we were able to exceed our own forecasts thanks to the...
Brussels, 8th January 2015: As of 1st January2015, Pierre Vareille has been appointed to the position of Chairman of the European Aluminium Association (EAA) for a two - year term, replacing Roeland Baan of Aleris. Mr Vareille has been Chief Executive Officer of Constellium since March 2012. “I am truly honoured to be the new Chairman of the European Aluminium Association. Having been closely involved in its political action for many years, I am acutely aware of its role in driving forward the EU’s industrial competitiveness and sustainability agenda. In recent years, the strength of EAA’s leadership under Roeland Baan and the dynamism of its members have brought the association to the forefront of EU policy development. In my new role, I will build on this to ensure that the aluminium...
Aluminium rebounded from lows on Thursday as some investors bought back short positions to lock in profits, but more losses were expected for copper and zinc ahead of the new year holiday in top metals consumer China. Copper, burdened by worries about oversupply, failed to sustain a bounce from 4-1/2 year lows the previous day, ending in the red again. Leading the pack on the London Metal Exchange was three-month aluminium, which jumped 2.3 percent to close at $1,832 a tonne, rebounding after hitting its weakest in seven months on Wednesday. "The price slide (in aluminium) is beginning to appear excessive, meaning that we may well see a noticeable counter movement in the near future," Commerzbank said in a note. At its lows on Wednesday, aluminium had shed 15 percent since late November...
