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 increasing use of aluminium in the automobile industry and continued rationed production has led Morgan Stanley to predict a higher aluminium price for the next year, up by 8 percent. In a recent report, Joel Crane suggested that in 2015 the industrial metal will rise to $2,072/mt, while the forecasted rise for this year is 3 percent at $1,893/mt. The average LME price for this year has been around $1,870/mt. The lightweight, industrial metal has had an exceptional year seeing a rise of 8.6 percent with increased demand and producers outside China cutting down their supply to stabilize the years of surplus. The surplus which is a recorded 620,000 tons in 2014 will simmer down to 310,000 tons in 2015, then to 280,000 in 2016 and finally leading to a deficit of 230,000 tons as per the...
More than 950 exhibitors from 50 nations are taking part in this week's Aluminium 2014 World Trade Fair & Conference, which is expected to attract around 25,000 visitors. “Lightweight, corrosion-resistant and infinitely recyclable, aluminium is becoming an increasingly important building block of modern society and modern life,” says Svein Richard Brandtzæg, Hydro's president and CEO. Together with senior executives Hilde Merete Aasheim and Oliver Bell, he is present at the fair to meet customers on Hydro's stand. With a PhD in inorganic chemistry, few industry leaders in the world are as enthusiastic about the inherent properties and benefits of aluminium as Svein Richard Brandtzæg. “From energy-neutral buildings, to fuel-efficient cars, to mobile phones and tablets – aluminium plays an...
The operator of the Portland aluminium smelter has applauded the Federal Opposition's move to exclude the sector from Renewable Energy Target (RET) negotiations. The Federal Government and Labor are in negotiations over the future of the 20 per cent by 2020 renewable target. Aluminium smelters are already partially exempt from the target but the Opposition has agreed to fully exempt the sector from the RET. The Portland facility employs more than 500 people and exports more than $500 million worth of aluminium to Asia annually. Operator Alcoa says the target significantly impacts its international competitiveness. Australian Aluminium Council executive director Miles Prosser says it is a major breakthrough. "The RET cost would be a very significant part of their future cost structure and...
Big Aluminium has spent two years shutting smelters to shrink a supply glut that has led to rotten prices. The strategy has been successful -- for the most part. This Wednesday, Alcoa Inc., as usual the first U.S. major company to report results for the latest quarter, is expected to post earnings of 22 cents per share, up from 11 cents a year earlier, in part because of higher prices. But fresh weakness in aluminium prices remains a concern for Alcoa, as some 40 per cent of the company’s sales in the second quarter of 2014 were still related to the production of aluminium and its raw material, alumina. Raw aluminium had climbed back to over US$2,000 per tonne this summer, from a low in February of around US$1,700 per tonne. But more recently, aluminium prices have softened. From Sept. 1...
Government figures are increasingly confident of reaching a deal with Labor on the future of the renewable energy target after the Clean Energy Council backed exempting aluminium from the scheme. Cabinet is expected to discuss the RET today and give Environment Minister Greg Hunt and Industry Minister Ian Macfarlane a mandate to negotiate a settlement with Labor. CEC support for exempting the aluminium industry is seen as making the move almost certain. It is also seen as giving Labor more room to negotiate. The government’s review of the RET, which was set up to ensure 20 per cent of electricity would be generated from renewable sources by 2020, has caused uncertainty in the sector. There have been competing calls for it to be retained, scrapped or wound back to reflect falling demand...
“Aluminium 2014” is one of world’s largest aluminium trade-fairs where companies representing different sectors of the industry meet and share ideas. This is the 10th such fair meeting which is starting today at Messe Dusseldorf, Germany with 1000+ participating companies and 25,000+ expected trade visitors. The three day international event is the perfect platform to meet representatives from the entire value chain of aluminium from producers to processors, from buyers to traders, from engineers to designers. Interactions between the different sectors give a more wholesome idea about the global aluminium market as well as facilitate new business tie-ups and associations. New technologies are introduced and expert opinions are voiced that enrich the knowledge of the key players in the...
Anil Agarwal-owned Vedanta group’s plans to become a formidable player in the power sector will suffer a major setback due to unavailability of coal after the Supreme Court judgement last week. The Supreme Court had cancelled coal blocks allocated to two group companies — Balco and Sterlite Energy — which will impact profitability of the companies. The group operates power plants in Korba, Chhattisgarh, and Jharsuguda, Odisha. Balco’s 1,200-Mw power plant in Korba has been dormant due to lack of approvals. Now with its coal mine gone, the power project will keep bleeding money, said analysts. At Jharsuguda, Sesa Sterlite has two power plants — a 2,400-Mw power plant with independent power producer status and a 1,200-Mw captive power plant to feed the nearby aluminium smelter of 0.5...
Taking advantage of the inherent advantages in a Preliminary Sales Order (PSO) to the customer, Qatalum crossed its first milestone with Turkey on the 25 September 2014 with the benefit of increased customer satisfaction. Qatalum arranged for the shipment of 6,000 MT to Turkey under a PSO addendum. It is worth mentioning that the total shipped quantity was 2,365 bundles of extrusion Ingots which is equal to exactly 6,075 MT. The ship carrying the consignment was M/V BSLE Genova, voyage 1443, which arrived at Mesaieed on the 24 September 2014 and is expected to arrive at its destination, Poliport in Turkey, on the 10 October 2014. As mentioned by the Logistics Manager, Saeed Al-Marri, the advantage of transfer from the current Forecast Sales Order (FSO) to Preliminary Sales Order (PSO) for...
AlCircle is all set to participate as a media partner and exhibitor in the three day mega event AlUMINIUM 2014, the world’s biggest trade fair at Messe Dusseldorf, Germany. As a leading aluminium portal from Asia, AlCircle hopes to present its unique set of services to a global audience from the aluminium industry especially from Europe. As a media partner AlCircle has attached its name to some of the most prestigious events worldwide like ALUMINIUM exhibition, ARABAL, IBAAS, ISCOBA, Aluminium Middle East and Metal Bulletin Bauxite & Alumina Conference. And it is for last 5 years that AlCircle is joining hands with Reeds Aluminium exhibition as a media partner. Equipped with its range of state of the art services tailor made for the industry players, AlCircle aims to present the benefits...
Indian government-owned companies seem to have embarked on a hyperdrive to implement renewable energy projects. The aggressive capacity addition plans are reportedly backed by the central government, which aims to boost the existing renewable energy policies. Just last month, Coal India Limited, the world’s largest coal mining company, announced that it is planning to invest $1.2 billion in solar power projects. The latest public sector company to join the renewable energy bandwagon is National Aluminium Company Limited (NALCO). The company, one of the largest aluminium production companies in the world, has announced fresh plans to install a 100 MW wind energy project, and is scouting land for the same. The new project would require an investment of Rs 660 crore ($110 million US). It is...
The London Metal Exchange is hiking transaction fees charged to members and users by an average of 34% for the first time since Hong Kong Exchanges & Clearing Ltd. acquired it for $2.2 billion in 2012. The new tariff, to be charged in U.S. dollars, seeks to help fund investment in the exchange and it will come into effect on Jan. 1, Chief Executive Garry Jones said in a statement. The move come as the LME's owner needs to invest in upgrading its system. “The LME, as was just three years ago, would not survive in today’s environment,” said at a press conference in London. The company said the new fee structure simplifies and levels out the transaction fees across the LME user base. Charles Li, the HKEx chief executive, said the fees hike would benefit members as higher exchange revenues...
UAE-based aluminium giant Emirates Global Aluminium PJSC ("EGA") will highlight the growing importance of the UAE's primary aluminium industry to the European market with a strong appearance at the ALUMINIUM 2014 World Trade Fair & Conference, being held in Dusseldorf, Germany from 7 to 9 October 2014. The event is regarded as the world's leading trade show and B2B platform for the aluminium industry, bringing together the full spectrum “ from producers, manufacturers, processors and suppliers to end-consumers. EGA is the jointly-owned aluminium conglomerate formed by Mubadala Development Corporation and Investment Corporation of Dubai through combining their respective aluminium industry assets. This year will mark EGA's first attendance as a single entity: EGA's core operating assets “...
Noranda Aluminum Holding (NOR) was one of the Russell 2000's biggest losers for October 1 as the stock slid 6.42% to $4.23, a loss of $0.29 per share. Starting at an opening price of $4.49 a share, the stock traded between $4.20 and $4.58 over the course of the trading day. Volume was 850,916 shares over 4,102 trades, against an average daily volume of 1,091,857 shares and a total float of 68,852,804. The losses send Noranda Aluminum Holding down to a market cap of $291,247,361. In the last year, Noranda Aluminum Holding has traded between $5.64 and $2.21, and its 50-day SMA is currently $4.52 and 200-day SMA is $3.83. For a full analysis of Noranda Aluminum Holding, check out Equities.com's E.V.A. report. Noranda Aluminum Holding Corp is a North American integrated producer of...
Aluminium futures fell 0.58% to INR120.70 per kg today as speculators trimmed positions amid a weak trend at the London Metal Exchange. At the Multi Commodity Exchange, aluminium for delivery in November lost 70 paise, or 0.58%, to INR 120.70 per kg, with a business turnover of five lots. The metal for delivery in October also shed 40 paise, or 0.33%, to trade at INR 119.75 per kg in a turnover of 139 lots. Marketmen said a weak trend overseas as the strongest US dollar in four years reduced demand for industrial metals quoted in the currency, put pressure on aluminium prices at futures trade here.
Alcoa will hold a conference call on Wednesday, October 8 beginning at 5:00 p.m. EDT to discuss third quarter 2014 results and business developments. The conference call will be webcast live via Alcoa's website, with presentation materials available online at 4:15 p.m. EDT. The Conference will be hosted by Klaus Kleinfeld, Chairman and Chief Executive Officer and William Oplinger, Executive Vice President and Chief Financial Officer. Invest section of the Alcoa website to listen and view slides only. Note: Adobe Flash 9 or higher is required. Please refer to the system check to verify that your computer meets the system requirements. Click here if you need the latest version of Adobe Flash. A replay of the call will be available from 10:00 p.m. EDT on October 8 until October 22 at 11:59...
Aluminum, the biggest gainer among base metals on the London Metal Exchange last quarter, will fall into a deficit almost four times larger than previously estimated as demand grows faster than expected, according to Standard Bank Plc. Global consumption will outstrip production by 806,000 metric tons this year, more than a previous estimate of 217,000 tons, the bank’s analysts including Walter de Wet and Leon Westgate said in a report today. Industrial metals have the “healthiest fundamentals” among commodities on a three-year outlook and most base metals will be in deficits either this year or next, the analysts said. The metal, used in everything from aircraft to beverage cans and window frames, has risen 7.4 percent this year on the LME. Stockpiles monitored by the bourse have...
Five companies from the Gulf have been named as 'global challengers' in a new report that recognises them for their rapid growth, global expansion and emerging position as leaders in key markets. The Boston Consulting Group (BCG) said the firms include Emirates Global Aluminium, Etihad Airways, Etisalat, Qatar Airways, and SABIC while Egypt's El Sewedy Electric is also named in the list. Last year's list included four companies from the region. The 2014 BCG Global Challengers report identifies a total of 100 fast-growing companies that are from emerging markets and are shaking up the global economy through success overseas. BCG said in a statement that this year's list of global challengers reflects the reshaping of the global economy, as the number of emerging markets represented is...
China’s primary aluminum imports slumped 74.57% YoY and 39.78% MoM to 8,487 mt in August, according to China Customs. As SMM anticipated, aluminum imports dropped in August as a result of falling SHFE/LME aluminum price ratio in July. Imports of primary aluminum are expected to remain low in September, given that the SHFE/LME aluminum price ratio was below 7.0 through most of August. But import volumes may pick up after September as the SHFE/LME aluminum price ratio rose in September.
