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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The daily inventory data released by the London Metal Exchange (LME) today showed a decline in the inventory levels of Aluminium, Lead and Zinc. The data also showed a rise in the inventory levels of Copper and Nickel. Aluminium inventory continued its down trend, falling by 8575 tonnes today. Meanwhile, Zinc inventory and lead inventory declined by 1625 tonnes and 500 tonnes respectively. Inventory level of Copper and Nickel rose by 150 tonnes and 930 tonnes respectively. Nickel prices, on the LME, are trading up for the first time in four days. Meanwhile, aluminum, tin and lead rose, while zinc fell. Copper prices are down 0.6% heading for a weekly drop.
Aluminum rose the most in 17 months to pace a rally in industrial metals amid speculation that global central banks are prepared to implement more stimulus measures to boost economic growth. China plans to inject lenders with funds, the Wall Street Journal reported, and the European Central Bank will start within days to purchase assets, said Benoit Coeure, an executive board member. An index of the six industrial metals traded in London jumped the most in eight weeks after the gauge slumped 3.5 percent in the previous two days, the biggest decline since March, on global growth concerns. “There was some Chinese stimulus news, and any stimulus is good for base-metal prices,” Adam Klopfenstein, a senior market strategist at Archer Financial Services Inc. in Chicago, said in a telephone...
There is uncertainty revolving around investors willing to contribute towards Angul Aluminium Park (AAP) due to the lack of a clear pricing policy. This park is meant to be the first of its kind venture in the subcontinent where there will be infrastructure support and facilities to directly receive molten as well as conventional solid forms of aluminium from the adjoining Nalco smelter and used for downstream ventures. In a letter to Nalco’s CMD Ansuman Das, the CMD of state-owned Idco, Vishal Dev states that the investors are enquiring about the terms regarding pricing methodology and metal supply writing, "it is hereby again requested to formulate a standard hot metal supply agreement and finalise the pricing methodology at the earliest”. Earlier there had been a commitment issued by...
The Public Enterprises Selection Board (PESB) has recommended RINL Director T K Chand's name for appointment as Chairman and Managing Director of aluminium maker Nalco. Chand would succeed Anshuman Das as the head of Odisha-based aluminium maker Nalco, if the government approves his name after clearance from the Central Vigilance Commission (CVC). The PESB interviewed 11 candidates, including one CMD, five directors and three executive directors of various state- owned companies. There was also one candidate who is now working with the Rajasthan Government. Chand has been working in RINL since 1983 and promoted to his current position with effect from September 22, 2010. He has wide exposure in the metal an mining industry, having worked as a Director in Coal India and Central Coal Ltd,...
Odisha Industrial Infrastructure Development Corporation (IDCO) has asked the National Aluminium Company (NALCO) to declare pricing details of the metals supplied to the industrial units at an aluminium park at Angul, Business Standard reported. In a letter to NALCO, Vishal Dev, CMD, IDCO, said that applicants are interested in setting up their units in the proposed park and wants metal contract terms and pricing methodology. Therefore, it has been requested to finalize the pricing methodology and formulation of standard hot metal supply pact soon. At an estimated investment of INR 1.25 billion, the industrial park is set to be developed on a land area of 204 acres. IDCO has, so far, aggregated over 120 acres of land and is using external connectivity infrastructure to make the park...
LME has faced a lot of criticism as well as a lawsuit for its dysfunctional physical delivery systems, especially from the largest aluminium producer, Rusal. Although LME has narrowly escaped any consequence, it has to rectify its faulty warehousing system for a smoother functioning aluminium industry globally. In February 2015, LME will be implementing its proposed solution named LILO. Although it has faced a delay of 10 months considering its earlier deadline of April 2014, LILO is expected to ease out warehouse operations and warehouses are already changing their operating models to comply with the rules. As per the new LILO regulation, if a warehouse has a queue for load-out that is longer than 50-calender days and continues to load-in new supplies, it is required to lift its load-out...
Spearheaded by companies like Emirate Global Aluminium ("EGA"), the Middle East's aluminium industry has not only fulfilled forecasts made in late 2008 that it has the right fundamentals to survive and thrive, but also is entering a stage of strong expansion, both in primary production and downstream developments. That was the strong message to conveyed during the 29th International Aluminium Conference, which took place in Abu Dhabi from 22 to 24 September 2014, and attracted more than 500 key industry decision-makers from around the world. The event was organised by Metal Bulletin and hosted by EGA, the jointly-owned aluminium conglomerate formed by Mubadala Development Corporation and Investment Corporation of Dubai by integrating their aluminium industry assets. EGA's core operating...
Novelis, the global leader in aluminum rolling and recycling, announced today that consistent with its corporate strategy it will focus its operations in Brazil on its core business of aluminum rolling and recycling. As a result, it will cease operations at its Ouro Preto, Minas Gerais, primary aluminum smelter at the end of 2014. "The decision to end operations at Ouro Preto is consistent with our global strategy to build our business around sustainability – transforming from a linear business model to a closed-loop business model focused on recycled content," said Tadeu Nardocci, Senior Vice President, Novelis and President, Novelis South America. "In addition, the closure is driven by systemic issues affecting the entire primary aluminum industry in Brazil impacting cost of operations...
UC RUSAL, a leading global aluminium producer, announces that a three-member LCIA arbitral tribunal in London rendered an award in favour of UC RUSAL in its case against four Nigerian state entities: the Bureau of Public Enterprises, the Federal Government of Nigeria, the Ministry of Finance, and the National Council for Privatisation. This award is the culmination of a case brought by the Company in August 2012 against the respondents to confirm the legal status of certain shares in the Aluminium Smelter Company of Nigeria Plc (“ALSCON”) that were purchased by the Company from the respondents in 2006. In the consent award of 15 October 2014 the tribunal confirmed the parties’ agreement to the effect, inter alia, that the share purchase agreement between the Company and the respondents of...
Branko Radulovic, Vice President of the Parliament of Montenegro, has filed a lawsuit against 32 individuals, including Russian businessman Oleg Deripaska and Montenegrin Prime Minister Milo Djukanovic, over bankruptcy of the Aluminum Plant Podgorica (KAP), RIA Novosti reported on Tuesday. KAP once was the country’s largest company and leading exporter. Deripaska’s En+ bought a controlling stake in the plant in 2005. In 2013, the Montenegrin government initiated bankruptcy proceedings after KAP accumulated a debt of over 350 million euros and sent a bankruptcy receiver to the plant. Podgorica started proceedings to sell off KAP after it was declared bankrupt to Uniprom, which is owned by businessman Veselin Pejovic. Deripaska-controlled Central European Aluminum Company (CEAC) continues...
Considering the falling demand of aluminium in China, the largest consumer, prices might dip in future according to Angel’s monthly report. The closing of smelters and the consecutive tightening of supply had led to the highest price of aluminium in recent years. However the anticipated deficit is driving many to increase capacity, like Norsk Hydro is planning to update its output by 30 percent at the Suudal plant in Norway by the end of 2014 and by another 35,000 mt by mid 2015. Aluminium prices had been gaining for the last 6 months but in September 2014, an 8 percent decline was noticed. This decline has been attributed to slowing investment growth, subdued CPI inflation, contracting imports, decelerating industrial production and widening PPI deflation which are indicating towards...
Aluminium Bahrain B.S.C. (Alba), one of the pillars of the economy of Bahrain, provided sponsorship support for the “Invest in Bahrain 2014” Forum, which took place at the Bahrain International Exhibition & Convention Centre on Wednesday, October 15, 2014. The sponsorship is a tangible demonstration of Alba’s support for Bahrain as a key investment destination. Held under the patronage of HRH Prince Khalifa bin Salman Al Khalifa the Prime Minster of the Kingdom of Bahrain, “Invest in Bahrain 2014” Forum was organised by the Ministry of Industry & Commerce, Kingdom of Bahrain. Commenting on Alba’s support for “Invest in Bahrain 2014” Forum, Alba’s Chief Financial Officer, Ali Al Baqali said: “Alba’s position as one of the world’s leading aluminium smelters is the result of Bahrain’s...
Alro Saltino has reportedly paid 66 million dollars as energy costs last year and it is difficult to afford similar expenditure for another year according to Gheorghe Dobra, the CEO of Alro at a conference concerning energy issues. He says that including ecotaxes, the company spent more than 1,000 dollars per ton for energy. Meanwhile the quotations of aluminium on Thursday were 1,886 dollars per ton. Dobra says that such costs are difficult to incur year after year and the future of aluminium industry in Romania seems bleak if the energy costs remain like this. The deadline for the big energy consumers to submit their exception documents as a part of the green certificates has been pushed to 1 December and Dobra believes it will be pushed even further. That would mean another year of...
Some major customers of Norwegian aluminium maker Norsk Hydro (NHY.OL) want it to certify metal made with clean hydro power to help a shift from high-polluting fossil fuels and combat climate change, chief executive Svein Richard Brandtzaeg said. He also said the company, the world's number nine producer of primary aluminium in 2013, was investing in measures to cut greenhouse gas emissions because it expects governments to impose a global price on carbon pollution sometime in future. Some customers wanted proof that aluminium is from a low-emissions source to help limit global warming, he said. That would echo other systems that certify that commodities such as timber, coffee or palm oil come from sustainable farms. "We have customers now that would like us to give identification and...
Branko Radulovic, Vice President of the Parliament of Montenegro, has filed a lawsuit against 32 individuals, including Russian businessman Oleg Deripaska and Montenegrin Prime Minister Milo Djukanovic, over bankruptcy of the Aluminum Plant Podgorica (KAP), RIA Novosti reported on Tuesday. KAP once was the country’s largest company and leading exporter. Deripaska’s En+ bought a controlling stake in the plant in 2005. In 2013, the Montenegrin government initiated bankruptcy proceedings after KAP accumulated a debt of over 350 million euros and sent a bankruptcy receiver to the plant. Podgorica started proceedings to sell off KAP after it was declared bankrupt to Uniprom, which is owned by businessman Veselin Pejovic. Deripaska-controlled Central European Aluminum Company (CEAC) continues...
Century Aluminum Company will report third quarter 2014 earnings on Wednesday, October 29th after the close of market trading. The news release will be issued through Marketwired. The company will hold a follow-up conference call on Wednesday, October 29th at 5:00 p.m. Eastern time. The earnings call will be webcast live on the Century Aluminum Company website, located at www.centuryaluminum.com. Plan to begin the registration process at least 10 minutes before the live call is scheduled to begin. A replay of the webcast will be archived and available for replay approximately two hours following the live call.
Rio Tinto chief executive Sam Walsh said “We have delivered another strong quarter with record iron ore production and a solid performance in copper and aluminium. We have seen our first full quarter from the 290 Mt/a iron ore expansion in the Pilbara, with the additional tonnes going into our premium Pilbara Blend products. Our strategy of focussing on long-life, low-cost assets means we will continue to generate strong cash flows despite a lower price environment, resulting in materially increased and consistent cash returns to shareholders.” Highlights • Record quarterly and year to date iron ore shipments, production and rail volumes. Sales from the Pilbara continued to exceed production in the quarter, as the stocks that were built in anticipation of delivery of the infrastructure...
Rio Tinto plans to sell its shares in an aluminium smelter in Cameroon, ending several decades in partnership with the government because the project no longer fits the global mining group's strategy. Rio, which makes more than 90 percent of its profit from iron ore, has been edging away from aluminium since its $38 billion 2007 acquisition of Canadian giant Alcan soured during the financial crisis, leaving it with heavy writedowns. It has ruled out new investments in the metal. Rio Tinto Alcan, the mining giant's aluminium business, said on Tuesday it would work with Cameroon's government to find a new investor in Alucam Group, as the 100,000 tonne-a-year facility is known. "Rio Tinto Alcan is proud of its long participation in the Alucam Group over several decades. However, the Alucam...
