Ahead of the National Day holiday, domestic aluminium ingot inventories continued to set fresh year-to-date lows. According to SMM statistics, as of September 30, electrolytic aluminium ingot inventories in China's major consuming regions stood at 638,000 tonnes, down 36,000 tonnes from Monday and 40,000 tonnes from last Thursday. The pace of pre-holiday destocking was relatively fast overall, leaving ample buffer for inventory accumulation during the holiday. Source: SMM On the supply side, domestic downstream demand recovered somewhat month on month in September, but processing fees for some fabricated products came under pressure, leading some downstream enterprises to cut or suspend production, which lowered their willingness to purchase molten aluminium and pulled the...
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...
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U.S. aluminum surcharges have jumped to record levels this month as fabricators scramble for metal amid cutbacks at domestic smelters and storage backlogs that traders say have tightened supplies. Premiums that fabricators and merchants pay on top of benchmark London Metal Exchange prices for delivery in the Midwest AL-PREM have risen to 21-22.5 cents per lb from 20-21 cents previously, having more than doubled this year. Increasing premiums will likely spur debate over the availability of domestic metal despite relatively subdued demand and historically high visible inventories, analysts said on Tuesday. "Traders are starting to worry" about availability as competition for ingots intensifies with surcharges rising in Japan and Europe, said a trading source. The U.S. premium equates to...
Q3 2014 Industry Highlights: • World consumption up by 8% year-on-year (YoY) while world production up by 6% YoY. Asian demand up by 11% YoY propelled mainly by a robust growth in China (+14% YoY) on the back of government stimulus and infrastructure investment. Consumption in North America remains strong (over 4.5% YoY) as Ford gears to switch production of F-150 truck with aluminium. MENA demand is relatively healthy supported by large infrastructure spending while Europe consumption remains stable. • LME inventories at 4.6 million metric tonnes in September • World market is short-supplied (-129 Kt with China & -204 Kt without) • Physical premiums continue to rise across the world • The LME cash average was at US$ 1,989 metric tonnes (mt) with LME ranging between $1,838 mt on July 1...
Aluminium Bahrain B.S.C. (Alba)’s Chief Executive Officer Tim Murray is a key speaker at the Annual 7th HRD Congress being held on November 10 and 11, 2014 at the Diplomat Radisson Blu Hotel, Kingdom of Bahrain under the theme “Evolving HR function as a Business Partner”. Alba is also the Silver Sponsor of this event, which is being held under the patronage of H. E. Jameel bin Mohmmed Ali Humaidan, Minister of Labour, Kingdom of Bahrain. As the keynote speaker at the Annual 7th HRD Congress event, Alba’s CEO, Tim Murray presented a case study on Alba titled “HR as a Business Partner”, which highlighted topics such as: Alba investing in human assets; Alba is in the people business, Alba strides in safety initiatives and Safe employees and productive Alba. Speaking at the event, Tim Murray...
Aluminum climbed for the first time in three days as labor-market gains added to signs of a strengthening U.S. economy, bolstering demand prospects for the metal used in construction, autos and cans. The four-week moving average of Americans filing claims for unemployment benefits dropped to the lowest in more than 14 years, a government report showed today. Yesterday, ADP Research Institute said companies in October added 230,000 jobs, the most since June. The data “showed that the labor markets are continuing to improve,” Tim Evans, the chief market strategist at Long Leaf Trading Group, Inc. in Chicago, said in a telephone interview. “We’ve seen an improvement in the industrial metals, and better jobs and a better economy is basically the nuts and bolts of it.” Aluminum for delivery in...
Aluminium dipped on Friday as producers and trade houses sold while the wider base metals complex was mixed ahead of key U.S. jobs data that could move the dollar. Three-month aluminium on the London Metal Exchange fell 0.9 percent to a session low of $2,056.75 a tonne, but pared losses to stand at $2,065 by 1111 GMT, a decline of 0.5 percent. Two-way activity was keeping aluminium in a fairly tight range, said analyst Gayle Berry at Jefferies Bache in London. "You have seen decent trade selling when prices move higher, and then when prices pull back you see some CTA buying, which is keeping prices within a range." Commodity trade advisers (CTAs) manage speculative investment funds, often using computer-generated buying signals. Aluminium has been resilient during the recent commodities...
JW Aluminum Company ( “JW Aluminum”) announced today that it has posted its 2014 Quarterly Report for the Three Months Ended September 27, 2014 on JW Aluminum’s secure investor website at 3:00 PM Eastern Time on Friday, November 7, 2014. The quarterly report is being furnished pursuant to the Indenture governing JW Aluminum’s Senior Secured Notes due 2017 (the “Notes”). The quarterly report will be made available to holders and beneficial owners of the Notes, qualified prospective investors in the Notes, and certain security analysts and market makers. JW Aluminum will post all of its annual reports, quarterly reports and current reports that are required to be delivered pursuant to the Indenture governing the Notes on JW Aluminum’s secure investor website maintained by Intralinks. JW...
Aluminium Bahrain B.S.C. (Alba), one of the world’s leading aluminium producers, recently conducted a one-day technical workshop at Maxion Wheels, Turkey, thus reaffirming its commitment to provide superior support services to its customers across global markets. Alba Customer Technical Support (CTS) Department’s team, comprising Sr. Manager, Abdulla Habib and Product Specialist, Anand Santhanam, visited Maxion Wheels, Turkey to highlight the products and processes used by Alba for the Foundry Alloy product supplied to the client. The team focussed on best practices to maximise results from Alba products and superior casting performance at the customers’ own location. The workshop - attended by the core team from Maxion (Operations, Quality, Engineering and Purchasing) - was followed by...
Aluminum market proves strong amid the bearish commodity market, with LME aluminum hitting $2,078 per tonne in early week. The rising momentum in LME aluminum market mainly comes from supply tightness, continuous declines in inventories, and rising backwardation, one local media reported today. The falling SHFE/LME aluminum price ratio, however, suggests the lack of rising stream in China’s aluminum market, it said, adding that growing supply, weak consumption and costs support resulted in such conditions. Inventory pressures from huge capacities, coupled with the end of peak-demand season, will put a downward pressure in domestic aluminum market, it added.
The London Metal Exchange (LME) on Friday launched consultations on proposed changes to rules governing physical delivery and its global network of storage warehouses. The LME, which recently won a major court battle about new rules to cut delivery backlogs at warehouses, plans even tougher rules to support a new contract on aluminium premiums, it said in a statement. Last month, the 137-year old exchange said it would implement reforms on Feb. 1 aimed at easing huge backlogs to withdraw metal from its global warehousing network. The LME, the world's oldest and biggest market for industrial metals which is now owned by Hong Kong Exchanges and Clearing Ltd, oversees warehouses where companies that buy metals on its futures market can take delivery of quality-assured supplies if needed. But...
Output at Chinese A356 aluminum alloy producers in SMM’s survey sample totaled 114,200 mt in October, up slightly from September. The average operating rate also inched up MoM to 67.18%. Aluminum wheel rim exports have been stable since July, but domestic consumption fell, biting aluminum alloy demand. Although mainstream processing fees for A356 aluminum alloy (delivery to factory) remained stable at RMB 700/mt, some alloy makers were forced to cut processing fees below RMB 700/mt due to growing output and tepid demand. Aluminum wheel rim manufacturers are unlikely to stockpile aluminum alloy in sizable amount before the end of the year, due to bearishness toward aluminum prices, tight cash, and modest consumption. Competition in A356 aluminum alloy market will intensify further in 2015...
Dubai's sovereign wealth fund Investment Corporation of Dubai (ICD) has set up a new subsidiary - Dubal Holding - to manage its 50 per cent shareholding in Emirates Global Aluminium (EGA), said a press statement on Saturday. ICD and Mubadala Development Company set up DGA by merging their subsidiaries Dubal and Emirates Aluminium (Emal). EGA's combined annual production currently accounts for 50 per cent of the total primary aluminium produced within the Gulf Cooperation Council region. Sheikh Hamdan bin Rashid Al Maktoum, UAE's Minister of Finance, will be the chairman of the Dubal Holding. Other members are Saeed Mohammed Ahmed Al Tayer, Vice Chairman; Khalifa Hassan Abdulla Al Daboos, Member; Abdul Wahid Mohammad Al Fahim, Member and Hilal Khalfan Bin Dhaher Member. Abdulnasser Bin...
Henan, used to be China’s top aluminum producing province, now finds itself short of the light metal due to its booming processing industry, Shanghai Metals Market has learned. With the rapid development of local processing industry, the province will see its aluminum production (forecasted at 3.28 million tonnes) fall short of consumption (forecasted at 4.5 million tonnes) in 2014. Henan’s Gongyi City – China’s top flat-rolled aluminum products production base – is home to over 30 aluminum processors, whose combined annual capacity has surpassed 3 million tonnes. 2.5 million tonnes of aluminum ingot is needed annually to feed such large capacity in the city. But most smelters in Henan are producing aluminum liquid for their own use or selling aluminum liquid to nearby processors. This...
Rio Tinto is under pressure to deliver on the CEO’s promise to become a "cash machine" for investors as it justifies snubbing a merger approach from Glencore. With Glencore effectively barred from making a renewed bid until April, Rio has a window to woo shareholders through stock buybacks and selling non-core assets. In August, CEO Sam Walsh said his $3.2bn cost-cutting drive increased the options for distributing excess capital. Now, with Glencore CEO Ivan Glasenberg hovering, investors said it was time for Rio to act on Walsh’s words. He will update shareholders on the company’s strategy at seminars in Sydney on November 28 and London on December 4. Rio will then post full-year results in February when analysts said it was likely to announce the first buyback since 2012. The...
China’s 2nd largest aluminum smelter – Xinjiang East Hope Nonferrous Metals Co. – has signed aluminum liquid supply agreements with 6 aluminum processors in inland China, a local website reported on Thursday. Under these agreements, these six aluminum processors will build plants in Xinjiang for easy access to aluminum liquid produced by Xinjiang East Hope Nonferrous Metals Co. Once implemented, this move will help cut Xinjiang East Hope Nonferrous Metals Co.’s production cuts by 800 yuan ($ 130) per tonne, it added.
Aluminium futures fell 0.55 per cent to INR 126.40 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 December lost 70 paise, or 0.55 per cent, to INR 126.40 per kg, with a business turnover of just one lot. The metal for delivery in November also shed 65 paise, or 0.47 per cent, to trade at INR 126.30 per kg in a turnover of 224 lots. Marketmen said a weak trend in the base metals pack at the London Metal Exchange after the European Commission cut growth forecasts for the euro area, dampening the demand outlook for industrial metals, mainly put pressure on aluminium prices at futures trade here.
China’s primary aluminum imports slumped 90.04% YoY and 36.47% MoM to 5,400 mt in September, according to China Customs. YTD imports through September grew 23.05% YoY to 255,100 mt, though. The SHFE/LME aluminum price ratio was low at 6.9 for most of August, unfavorable for imports. Besides, rising aluminum premiums in overseas market added to import costs. Both factors resulted in such dramatic decline in import volumes. The SHFE/LME aluminum price ratio rose to near 7.1 in September, favoring imports. But high global aluminum premiums should prevent imports from increasing. Hence, China’s primary aluminum imports are expected to remain low in October.
Emirates Global Aluminium ("EGA") Managing Director and CEO Abdulla Kalban outlined the UAE-based aluminium giant's strong foundations during a keynote address to a gathering of business leaders at the 2014 Palladium Global Summit held in Boston, Massachusetts on 29 and 30 October. His address, entitled "Building a global producer on a legacy of excellence", was extremely well received as attested by excellent feedback from the organisers and delegates. Reflecting the theme of the event - Leadership, Talent & Winning the Customer - Kalban's address focused on the importance of these factors in establishing EGA, particularly the integration of EGA's core primary smelter assets - Dubai Aluminium (" DUBAL ") and Emirates Aluminium ("EMAL") . He outlined how the management developed and...
Alcoa executives today said that they continue to aggressively reposition the Company and that they are on track to successfully deliver against business targets introduced last year. Alcoa is transforming its portfolio by building out its innovative, multi-material value-add businesses to capture profitable growth and by creating a globally competitive commodity business. Alcoa hosted its 2014 Investor Day event at the New York Stock Exchange. “Alcoa’s transformation is in high gear and driving sustainable shareholder value,” said Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer. “With our strong portfolio of value-add businesses we are building a lightweight, multi-material innovation powerhouse, and at the same time we’re creating a globally competitive commodity business....
