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...
Grow with
AL Circle
Aluminij Mostar, Bosnia’s aluminium smelter revealed on Wednesday that they were slowly recovering from their slump after a debt settlement was approved by the regional government with the state-owned power board EPHZHB. The smelter, which is the only one in the Balkan country as well as a top exporter, was on the rocks for some time narrowly escaping closure several times throughout 2013 and 2014 due to its growing debt burden. The high electricity charges along with the falling aluminium price had crippled Aluminij like many other smelters across the world. EPHZHB had blocked Aluminij’s bank accounts and threatened to cut power supply in March after debt had accumulated over previous 15 months. The 44% owner of the smelter, that is, the government of the autonomous Bosniak-Croat...
Goldman Sachs upgraded shares of Noranda Aluminum Holding Corp. from a neutral rating to a buy rating in a report released on Friday, TheFlyOnTheWall.com reports. Goldman Sachs currently has $7.00 price objective on the stock, up from their previous price objective of $4.24. Noranda Aluminum Holding Corp. opened at 5.16 on Friday. Noranda Aluminum Holding Corp. has a 1-year low of $2.21 and a 1-year high of $5.64. The stock has a 50-day moving average of $4.42 and a 200-day moving average of $3.98. The company’s market cap is $355.3 million. Noranda Aluminum Holding Corp. last released its earnings data on Monday, August 11th. The company reported ($0.10) EPS for the quarter, missing the Thomson Reuters consensus estimate of ($0.08) by $0.02. The company had revenue of $345.00 million for...
National Aluminium Company rose 6.94% to INR 64.75 at 11:50 IST on BSE on bargain hunting after the stock fell 8.47% in the preceding three trading sessions to INR 60.55 on 16 September 2014, from a recent high of INR 66.15 on 11 September 2014. Meanwhile, the BSE Sensex was up 98.47 points, or 0.37%, to 26,590.98. On BSE, so far 6.58 lakh shares were traded in the counter, compared with an average volume of 10.21 lakh shares in the past one quarter. The stock hit a high of Rs 66.20 and a low of INR 61.15 so far during the day. The stock hit a 52-week high of INR 67.60 on 11 September 2014. The stock hit a 52-week low of INR 31.50 on 26 September 2013. The stock had outperformed the market over the past one month till 16 September 2014, rising 7.07% compared with 1.49% rise in the Sensex....
Due to the record high spot market premiums on rising demand and supply cutback aluminium supply contracts for European consumers are expected to double up next year. Aluminium premiums which is paid over the LME aluminium cash prices, have climbed up to a record high of $460-480 per tonne in September for duty-paid metal in Rotterdam, from $450-460 in August. Premiums have had a 60 percent rise since the beginning of 2014 due to the rising demand and capacity cutbacks from major aluminium producers. According to traders there is an air of uncertainty about the premiums which would most likely prompt buyers to opt for the quarterly contracts rather than locking-in yearly supply deals. Even last year the uncertainty surrounding premiums drove people to favor short term deals. Premiums were...
The news of People’s Bank of China (PBoC) providing CNY 100 billion of lending facility each to China’s five largest banks to boost liquidity has created ripples in the Asian trading sector. The prices of base metals continue to trend higher on Wednesday’s Asian trade after the news had broken out overnight. All major US indices closed higher on Tuesday, led by the Nasdaq and S&P 500 which closed 0.75 percent higher. In Asia, most stocks were trading higher as well, with the Hang Seng up more than a percent, Shanghai Composite up 0.15 percent and the STI up 0.47 percent. Aluminium bounced back to $2,000 on Tuesday, closing at a price of $2,026 and surged to $2,033 per tonne on Wednesday morning. “Fundamentals-wise, some may argue they are pretty weak with oversupply and high inventories;...
The Australian reports that the Australian Workers Union has called for a 100% exemption from RET from their current 90% and urged that the Renewable Energy Target be pushed back to 2022 from 2020. The paper reports that the delegates from the AWU aluminium will meet in a conference today and pass the resolution to bring these two changes to the fore. Before the AWU’s appeal, 25 federal lower house Coalition MPs had also called for a full exemption for the aluminium smelters. According to the aluminium sector, they spend close to an additional $80 million a year thanks to the imposed RET. Despite the industry’s complains, the federal Government’s RET Review discovered that this sector would in fact benefit from RET as per calculations as the subsidy costs are surpassed by the downward...
Indian aluminium industry is gaining strength in the past two weeks as the aluminium prices move forward and the international market is gaining ground, enough to make the Indian aluminium sector to start participating in the global aluminium market. Breaking out of the dismal average price-per-ton of US $1,693 of February 2014 to its current above $2,000 figures on the LME, aluminium is looking up, and with a possible worldwide deficit in aluminium this year, the price would become dearer. The Indian markets too are trying to keep up with the global market trends with spot and aluminium prices doing better in the last few days. The analysts in fact predict that the national aluminium capacity will rise from the 1.71 mt of 2012 to about 4.36 mt for the current fiscal year. Now with the...
Sun Zhaoxue, a senior executive at Aluminium Corp of China Ltd (Chalco), has resigned according to the company’s statement on Tuesday. The resignation came a day after the declaration that he was under suspicion of corruption by a top anti-graft government agency. Sun Zhaoxue is also the general manager at Chinalco which is the unlisted parent company of Chalco. The Central Commission for Discipline Inspection said on Monday that Sun was suspected of corruption. Sun resigned from his post in a filing to the Shanghai stock exchange and the Chalco shares rose by more than 6 percent in Shanghai post the announcement. In the past 10 months, Sun is the second person to leave Chalco, the first one being Li Dongguang who resigned in November 2013 from the post of vice president.
Aluminium prices fell 0.61 per cent to INR 122.95 per kg in futures trading today, taking weak cues from global markets. Further, subdued demand in the domestic spot markets also weighed on the metal prices. At the Multi Commodity Exchange, aluminium for delivery in current months shed 75 paise, or 0.61 per cent, to INR 122.25 per kg in business turnover of 192 lots. Similarly, the metal for delivery in October contracts traded lower by 75 paise, or 0.60 per cent, to INR 123.55 per kg in seven lots. Market analysts said the weakness in aluminium at futures trade was mostly in tune with a downtrend in base metals at the London Metal Exchange (LME). This was amidst data signalling industrial-output growth in China was the weakest in August since the global financial crisis, leading to...
Alcoa today announced that it has commenced an underwritten public offering, subject to market and other conditions, of 25,000,000 of its depositary shares ("Depositary Shares") (or up to 28,750,000 Depositary Shares if the underwriters of the offering exercise their over-allotment option in full). Each Depositary Share represents a 1/10th interest in a share of Alcoa’s Class B Mandatory Convertible Preferred Stock, Series 1, par value $1.00 per share ("Mandatory Convertible Preferred Stock"), $500 liquidation preference per share of Mandatory Convertible Preferred Stock (equivalent to $50 per Depositary Share). The Depositary Shares entitle the holders, through the depositary, to a proportional fractional interest in the rights and preferences of the shares of the Mandatory Convertible...
The second largest aluminium smelter in Middle East, Aluminium Bahrain is planning to cross list its shares in Saudi Arabia, as per industry sources. The sources said that Aluminium Bahrain, otherwise known as Alba, is looking to improve its valuation rather than raise money from the listings. They did not want to be identified however as the plan is not public yet. Alba, who has a primary listing in Bahrain along with global depository receipts trading in London, is looking to cash in on investor interests. In 2015, the biggest Arab stock exchange opens to direct foreign investment. According to a data compiled by Bloomberg, the Saudi Tadawul benchmark index is the sixth best performing stock index in the world having gained 30 percent this year. In comparison, the Bahrain Bourse All...
Nigerian aluminium industry is suffering severely due to multiple problems including poor quality raw materials, high cost of energy; cheap sub-standard imports and the apparent lack of government interest in sustaining the aluminium industry. The aluminium industry is buckling under the weight of rising labor costs, electricity costs as well as high taxes as informed by an industry source. Most of the people who spoke to Real Sector Watch complained of the high electricity charges that is causing a lot of them to close operations and driving more people to do the same. This has also led to many lay offs. First Aluminium plc managing director revealed in an exclusive interview that they had to close down operations in December 2012 and even now the production is uneconomical due to the...
Aluminium Bahrain B.S.C. (Alba), a leading aluminium producer in the world, has announced the topics for the 18th International Arab Aluminium (Arabal) Conference, during a meeting with the Arabal Organizing Committee on Thursday, September 11, 2014 at the Oasis Hall in Alba. Arabal 2014 will be held under the patronage of HRH Prince Khalifa bin Salman Al Khalifa the Prime Minster of the Kingdom of Bahrain from November 25 to 27, 2014 under the theme - “GCC: An aluminium power house” at the Gulf Hotel, Kingdom of Bahrain. The topics chosen for the Conference include: GCC Smelters in Focus with the CEOs – Panel Discussion; Outlook for the global aluminium industry; Bahrain at the heart of the aluminium downstream; Alumina and refined bauxite dynamics in a dynamic environment; Renewable...
In a speech held at the Invercargill Workingmen’s Club on Sunday, the leader of New Zealand First, Winston Peters, said that he was open to the government holding stakes in the Tiwai Point aluminium smelter. He said that the future of the smelter is not yet certain but if a direct government investment in the smelter serves the national interest, New Zealand First will be open to that offer. If the Government’s involvement in the project retains the far reaching economic benefits for the region then the company will not object. While the smelter owners and Meridian Energy signed a three year deal last year to secure a sustained flow of energy for the smelter to function, the government also invested $30 million to the only aluminium smelter in New Zealand to help seal the deal. John Key,...
The Public Sector Undertaking (PSU) company of NALCO, National Aluminium Company added a new stockyard in Gujrat’s Vadodara, making it the 10th stockyard in India. Ansuman Das, the company’s Chairman and Managing Director inaugurated the stockyard. According to a company release, Gujrat’s new stockyard will help the aluminium maker to conduct sales worth approximately 800 million tonnes to its Gujrat customers. Business Standard, based on a 19th Plant Level Advisory Committee (PLAC) meeting report, reported that in 2014 fiscal year, NALCO has given out orders worth INR 2.94 billion on micro and small enterprises (MSEs). An agreement of 50,000 tonnes has already been signed by NALCO to supply hot metal to downstream units that are proposed to be set in Odisha’s Aluminium Park in Angul. To...
LME aluminium is expected to retest support at $2,041 per tonne, with a good chance of breaking below this level and falling more to $1,986. The support is provided by 123.6 percent Fibonacci projection level of an upward wave C, which started from the May 21 low of $1,754.75. This wave has completed, as its five component waves have all unfolded. A break below the support will open the way towards the 100 percent projection level at $1,986, while a break above $2,074, the 138.2 percent level, will make signals neutral.
Group Mytilineou, is likely to see a great semester ahead in 2014 as indicated by the group’s annual investor presentation. As the company continues deleverage faster, the government can expect a healthy balance in the coming months. Moreover, the decline of euro against the dollar will have a positive impact on the Group as exports will strengthen. Mr. Evangelos Mytilineos, President and CEO said in his speech that the financial performance of the group will improve by the end of the year as he believes that the demand of aluminium will increase globally in the field of metallurgy and in the remaining four months of 2014, the metal prices will rise further. Since the company incurs costs of production in euros and prices its product in dollars, as the euro is weaker against the dollar...
Dubai Aluminium (Dubal) has held talks with banks about raising a loan to help fund its general operations, the first time the firm has commissioned such a facility in years, three banking sources told Reuters on Thursday. While it is a rarity for the company to raise money not tied to a specific project, a loan would be the latest example of a Dubai state-backed entity tapping banks to take advantage of low borrowing rates and the emirate’s resurgent economy. Talks are at a preliminary stage to sound out banks about what Dubal could raise in the loan market, the sources said on condition of anonymity because the information is not public. They said no formal invitation for banks to participate has been sent out, nor have arranging banks been put in place. Dubal merged last year with Abu...
