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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Aluminum fell for first time in five days before a gauge that may show euro-area factory output contracted for the first time in 15 months and after a similar manufacturing report on China beat estimates. The metal retreated as much as 0.7 percent in London after closing yesterday at the highest since Sept. 16. The flash Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics released today was 50.4, exceeding the median estimate of 50.2 in a Bloomberg News survey. Markit Economics will later report that factory output in the euro region fell to a reading of 49.9 this month, according to a separate survey. It would be the first time since June 2013 that the gauge dropped below 50, the level that indicates expansion. “People are more concerned about a slowdown in Europe,...
Russian aluminium giant Rusal plans to keep output largely flat for three years because healthy stock levels will ensure the market is supplied despite market deficits, a top executive said on Wednesday. Robust aluminium prices have prompted some Chinese smelters to abandon production cutbacks and some investors fear restarts at other plants would chip away at what was expected to be the first global deficit after years of oversupply. "We still have enough stocks on the market, so we don't see any reason to restart production," Oleg Mukhamedshin, deputy chief executive, told Reuters in an interview. "I see production flat, stable for at least three years." Surpluses over the past several years have left the global market awash in inventories, including about 4.5 million tonnes at...
Taking weak cues from global markets, aluminium prices fell 0.29% to INR 121.15 per kg in futures trade on Wednesday as speculators trimmed positions. Further, sluggish demand in the domestic spot markets also weighed on the metal prices. At the Multi Commodity Exchange, aluminium for delivery in October eased by 35 paise, or 0.29%, to INR 121.15 per kg in business turnover of 130 lots. Metal for delivery in November traded lower by a similar margin to INR 122.05 per kg in four lots. Market analysts said the weakness in aluminium at futures trade was mostly in tandem with a downtrend in metal at the London Metal Exchange and subdued spot demand.
Nic Brown, the head of commodities research at Natixis announced at the LME Metals Seminar in London that aluminium prices will average above $2000 per tonne in 2015. Addressing the delegates, Brown said that the global shortage of bauxite coupled with the increase in demand worldwide, aluminium prices are likely to be pushed to an average of around $2,070 in 2015 and $2,240 in 2016. He further says, “We think aluminium markets will face a warming phase in the years ahead and we expect prices to rise.” Since Chinese producers were “very dependent” on Indonesian bauxite, the sudden cut off has hit them hard and he says “next year this will become an issue as smelters become short of bauxite”. As more automakers are seeking lighter alternative to steel, aluminium is soon becoming the...
Business hasn't been easy in the world of manufacturing. Australia has been left with just four aluminium smelters after yet another one closed down in recent weeks. But Boyne Smelters Ltd has continued to work on ways to cut costs and keep its 1200 employees in a job. The biggest unknown is a percentage of its power costs, and the smelter in the past few weeks has managed to secure a 12-month contract for its variable supply. The other 85% is supplied by a long-term contract with Gladstone Power Station. Boyne Smelters Ltd general manager Joe Rea said the contract would enable them to work at full capacity. "As you may know, the first quarter this year we had to curtail our production by around 13 tonnes and that was always going to hurt us," he said. "We didn't put people off during...
Nic Brown, the head of commodities research at Natixis announced at the LME Metals Seminar in London that aluminium prices will average above $2000 per tonne in 2015. Addressing the delegates, Brown said that the global shortage of bauxite coupled with the increase in demand worldwide, aluminium prices are likely to be pushed to an average of around $2,070 in 2015 and $2,240 in 2016. He further says, “We think aluminium markets will face a warming phase in the years ahead and we expect prices to rise.” Since Chinese producers were “very dependent” on Indonesian bauxite, the sudden cut off has hit them hard and he says “next year this will become an issue as smelters become short of bauxite”. As more automakers are seeking lighter alternative to steel, aluminium is soon becoming the...
Century Aluminum Company ($CENX) was among the biggest gainers on the Russell 2000 for October 21 as the stock popped 6.14% to $26.11, representing a gain of $1.51 per share. Some 1,996,078 shares traded hands on 13,496 trades, compared with an average daily volume of 1,429,274 shares out of a total float of 88,809,928. The stock opened at $24.83 and traded with an intraday range of $24.72 to $27.05. After today's gains, Century Aluminum Company reached a market cap of $2,318,827,220. Century Aluminum Company has had a trading range between $29.54 and $8.28 over the last year, and it had a 50-day SMA of $24.56 and a 200-day SMA of $16.60. Century Aluminum Co produces primary aluminum, which is an internationally traded commodity. The Company's primary aluminum facilities produce...
According to a recent report, China’s economy has grown by 7.3 percent in the third quarter when compared to last year. This expansion, although beats Bloomberg’s survey of 7.2, is still the slowest growth pace since 2009. The U.S equity futures showed an advance of 0.6 percent while the Stoxx Europe Index rose by 1.4 percent. The aluminium price on London Metal Exchange as read on 11.26 am was $1,987.50 per metric ton rising by 0.8 percent.
The Director of metals research and strategy at Citigroup Inc. David Wilson stated recently that the unwinding of financial deals is likely to curb the upward climb for aluminium prices in the coming year. According to Citigroup estimates, nearly 20% of the world’s aluminium supply amounting to roughly 10-15 million tons is currently being stored in various inventories across the world. Analysts are saying, for the financial deals to really start unwinding there needs to be a situation where the future prices are lower than the current prices which will tempt traders to sell off their stock instead of waiting for future profits. Alternatively, rising interest rates could also make these deals less viable. The head of commodities research at Natixis, Nic Brown says, “There could be a...
LME aluminium is expected to rise to $2,002 per tonne, after a shallow correction to $1,960. Wave pattern suggests the progress of a wave c, which started at the Oct. 16 low of $1,893.50. This wave has five component waves and so far, only three have unfolded. The fourth wave labelled 4 may end around $1,960, a support provided by the lower channel line of a rising channel. The fifth wave labelled 5 will then take over to drive the metal towards $2,002, the 50 percent Fibonacci retracement on the fall from the Sept. 8 high of $2,118 to the Oct. 2 low of $1,885.
Henan Shenhuo Coal & Power Co.’s 800,000-tpy precision aluminum alloy project in Xinjiang is scheduled to reach full capacity in late October, the company said in its Q3 financial report filed to the Shenzhen Stock Exchange on October 18. The project is supported by 400,000-tpy carbon facility, it added.
Aluminum Corp of China (Chinalco), the nation's biggest producer of alumina, has appointed Ge Honglin, mayor of Chengdu, as chairman, replacing Xiong Weiping, who led the company since 2009. The decision was announced on Monday afternoon during a corporate conference. Ge, born in 1956, worked in the steel industry for 19 years before he entered politics. He was appointed as mayor of Chengdu in August 2003. Before that, he was deputy general manager and director of Baosteel Group, the owner of China's biggest listed steel producer. He was also the head of Baosteel's research institute at the time. Xiong, 58, became head of Chinalco five years ago. He was the deputy general manager of the company from 2000 to 2006. In June 2006, He was appointed as vice-chairman and president of China...
The Boston Consulting Group (BCG) has come out with their sixth Global Challengers report for 2014 recently where EGA holds a place among the top 100 companies who are in a leadership position in key industries and important instruments for driving global economic growth. Emirates Global Aluminium, formed in 2013 is among the top five primary aluminium producers in the world, churning out an annual production of 2.4 million tons despite being one of the youngest in the global aluminium industry. EGA is a joint venture between Mubadala Development Company of Abu Dhabi and Investment Corporation of Dubai. The maximum share of the production, more than 90 percent is exported to over 350 customers across 70 countries in the world. With ownership of strategic bauxite mine and alumina refinery...
The aluminium industry has backed a plan by the renewables sector that would see smelters exempted from the Renewable Energy Target, a move seen as an attempt to inject some momentum into talks between the government and Labor. In a letter to Industry Minister Ian Macfarlane and Environment Minister Greg Hunt, Australian Aluminium Council executive director Miles Prosser said the Clean Energy Council’s support for an exemption — combined with the benefits that would flow to other electricity users through the price-suppressing effect of the RET — provided a sound basis for a deal. The Australian understands industry groups are pushing both the government and Labor for a deal on the RET. Some are urging Labor to agree to cuts to the large-scale renewable energy target of 41,000GWh...
Henan Shenhuo Coal & Power Co.’s 800,000-tpy precision aluminum alloy project in Xinjiang is scheduled to reach full capacity in late October, the company said in its Q3 financial report filed to the Shenzhen Stock Exchange on October 18. The project is supported by 400,000-tpy carbon facility, it added.
Aluminium Bahrain B.S.C. (Alba), one of the world’s leading aluminium producers, today, Monday, October 20, 2014 announced Ma’aden - Saudi Arabian Mining Company as the Gold Sponsor for the 18th International Arab Aluminium (Arabal) Conference. The Company also announced Emirates Global Aluminium (EGA) and Gulf Aluminium Rolling Mills Company (GARMCO) as the Silver sponsors for Arabal 2014. Speaking on the sponsorships for the Conference, Alba’s Chief Executive Officer, Tim Murray said: “Alba is truly privileged to host an event of international repute such as Arabal 2014, which will bring together the Middle East’s aluminium industry on a single platform. It is rewarding to have prominent industry leaders, sponsor and participate in the event, as it is through such partnerships that we...
Aluminium prices fell 0.88% to INR 117.70 per kg in futures trade today as speculators offloaded their positions amid weak cues from global markets. Further, sluggish demand in the domestic spot markets weighed on the metal prices. At the Multi Commodity Exchange, aluminium for delivery in October declined by INR 1.05, or 0.88%, to INR 117.70 per kg in a business turnover of 267 lots. Similarly, the metal for delivery in November traded lower by 75 paise, or 0.63%, to INR 119 per kg in 20 lots. Analysts said the weakness in aluminium at futures trade was mostly in tandem with a downtrend in base metals at the London Metal Exchange on demand concern following signs of slowing economic growth.
Aluminium stocks held at three major Japanese ports were 313,400 tonnes at the end of September, up 6.3 percent from 294,800 tonnes a month earlier, trading house Marubeni Corp said on Friday. Marubeni collects data from the ports of Yokohama, Nagoya and Osaka. Here are stock levels at the ports (amounts in tonnes): Sep 2014 Aug 2014 Sep 2013 Yokohama 141,700 128,400 109,100 Nagoya 156,700 150,400 117,200 Osaka 15,000 16,000 16,000 TOTAL 313,400 294,800 242,300
