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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London Metal Exchange (LME) has announced on Thursday that they will be releasing their aluminium premium contract later than initially planned in the second quarter, according to Reuter’s report. They also said that they will refrain from any other reforms until they receive the court ruling. The Hong Exchanges and Clearing Ltd owned LME had announced in June that they would be releasing their aluminium premium quarter in 2015 Q1. The premiums are charges that are imposed over the LME price taking into account the regional demand and supply as well as cover costs of transport and insurance. The premiums have been rising to record numbers in recent years which makes the premium contract a lucrative option for investors who want to lock in the premium amount and reap the benefits later....
For the thirteenth year in a row, Alcoa has been named to one of the most highly recognized and longest-standing global sustainability indexes, the Dow Jones Sustainability Indexes (DJSI). Alcoa was again recognized as the Aluminum Industry Leader on the Dow Jones World Index. “Sustainability is a core Value at Alcoa. No decision is made or action taken without a careful consideration of the economic, environmental, and social impacts that may result,” said Kevin McKnight, Alcoa Chief Sustainability Officer and Vice President of Environment, Health and Safety. “In 2013, we worked more safely with fewer environmental impacts. While we’re continuing to improve the sustainability of our global operations, our light-metal innovations are creating a more sustainable world by enabling greener...
Mining operations and ore shipments have been halted and disrupted by the ongoing outbreak of Ebola in West Africa, which has claimed thousands of lives in the region. Will Ebola in West Africa affect the Chinese aluminum industry, or in which ways? Annual output of bauxite in Guinea, Ghana, Sierra Leone, three virus-stricken countries, accounts for 7.81 per cent of world’s total, slightly lower than Indonesia’s 10 per cent. Chinese enterprises have been looking for new suppliers since Indonesia’s export ban on unprocessed ores, and African countries have become new choices. However, the impact on Chinese aluminum industry should be small for the foreseeable future from the ongoing Ebola crisis in West African countries, Liu Xiaolei, SMM’s aluminum analyst expects. “Africa now is not a...
According to Reuter’s report, Rusal Plc, world’s largest aluminium producer is proposing to enter into a joint venture with China’s top aluminum producer to start a project in Russia’s Eastern Siberia, as confessed by the deputy CEO of Rusal on Wednesday. The proposed tie-up between Rusal and Chalco, two aluminium giants, will be primarily to explore the profitable locale of Eastern Russia with its rich mineral deposits, proximity to China and hydropower potential, Oleg Mukhamedshin declared while he was attending the World Economic Forum meeting in China’s Tianjin city. Rusal had earlier shelved the Eastern Siberia project due to the global overcapacity of aluminium and the company’s poor balance sheets. However, they had expressed their interest of teaming up with Chinese partners to...
It is the time for Press Metal Bhd (Press Metal) to shine as analysts expect the group to ride on aluminium price recovery and margin expansion in its Manufacturing and Trading (M&T) to drive earnings growth. According to the research arm of Kenanga Investment Bank Bhd (Kenanga Research), it holds a bullish view on aluminium prices, premised on the increasing popularity of aluminium in the auto industry as a steel alternative, growing demand in emerging markets, and declining global production rates. Thus, Kenanga Research expects aluminium prices to increase to an average of US$1900 per metric tonne (MT) (+3 per cent) in financial year 2014 estimate (FY14E) and US$2100 per MT (+11 per cent) in FY15E. “Based on our sensitivity analysis, every US$100/MT increase in aluminum prices could...
Commodity Futures Trading Commission is still keeping a close eye on the London Metal Exchange after countless complaints against this 137 year old exchange stating that they are manipulating the price through their warehousing policies. Timothy Massad, who is the newly installed chairman of the CFTC, spoke to Reuters to state that the regulator is still in touch with LME while it is preparing to launch a new aluminium contract amid the complaints that the global aluminium pricing is faulty. Massad admitted that they were in dialogue with LME regarding the various issues, which is the first comments in a year on the subject, after Coca-Cola Co (KO.N) and MillerCoors LLC had lodged complaints about the long waiting time for the deliveries and exceptional high prices. According to...
Trimet is one step closer to achieving full capacity as its opens additional electrolytic furnaces at its Saint-Jean-de-Maurienne aluminium smelter. This medium sized family enterprise plans to invest a total sum of 100 million euros in the next three years to expand production at its France sites. Emmanuel Macron, the French Minister of Economic Affairs visited the Saint-Jean-de-Maurienne smelter on Saturday, September 6, 2014. The new electrolytic furnaces were put into operation at a formal commissioning ceremony where the entire staff was present. Trimet’s owner Heinz-Peter Schlüter and the Minister jointly inaugurated the new furnaces by giving the starting signal for the production line F. This section was decommissioned in 2009 and had been undergoing rigorous repairs over the past...
Shipments of primary aluminum by North American (U.S. and Canada) producers totaled 1,143 thousand metric tonnes (kmt) in the second quarter of 2014, down 6.4 percent from the second quarter 2013 total of 1,221 kmt. Shipments of primary billet were up seven-tenths of one percent year-over-year while shipments of foundry increased 8.3 percent during the same period. Compared to the previous quarter, total shipments of primary increased 1.1 percent. During first six months of 2014, shipments totaled 2,273 kmt, off 6.9 percent from the 2013 total of 2,443 kmt. There have been some interesting developments in the market as of late. The London Metal Exchange (LME) released its Commitment of Traders report, the LME 3-month aluminum price has continued to climb, and some decisions have been made...
One of China’s largest aluminium producers, China Hongqiao Group resorted to selling off some of their stocks raising $220 million to pay off some debts and buy some upstream assets. On Thursday, 4th September, the Shandong province based company sold its shares at a rate of HK$6.19 per share which is a 9% discount from the September 3rd closing rate of HK$6.81, as recorded in a term sheet viewed by FinanceAsia. The ultimate sell rate was at the lower end of the initial range of $HK6.19 to $HK6.36 per unit which was already at a discount of 6.6% to 9.1% to the September 3rd closing rate. Within hours after China Hongqiao launched the deal in Hong Kong, the books were covered which is largely due to the broad-based investor interest, as reported by close sources. The majority of the orders...
Hydro's many aluminium applications and capabilities are on display at "Aluminium 2014" in Düsseldorf on October 7-9. More than 950 exhibitors from 50 nations are taking part and around 25,000 visitors are expected at the Aluminium 2014 World Trade Fair & Conference. Hydro President and CEO Svein Richard Brandtzæg and senior executives Hilde M. Aasheim, Hans-Joachim Kock and Oliver Bell will all be present to meet customers on the company's stand. "Infinite aluminium" is Hydro's theme, illustrating the multitude of applications and endless recycling possibilities of aluminium – and Hydro's long history as a company: Aluminium is here to stay, and so is Hydro. Along with the exhibition, an aluminium conference will take place. Hydro has one speech at this conference.
Hydro has decided to reduce remelt activities at its primary metal plant in Sunndal, Norway, and to replace volumes by ramping up production at its SU3 potline. The SU3 potline consists of two production halls with a total production capacity of 100,000 tonnes per year. Due to the economic downturn following the financial crisis, Hydro curtailed SU3 in 2009 – 50% of the production capacity was restarted in 2011 and 2012. Ramping up in steps In order to optimize the production capacity at the plant, Hydro has now decided to restart parts of the remaining potline, and to prepare for a complete startup by mid-year next year. “We will start up one of the four remaining sections in November and December. Given that the startup goes according to plan and we still see positive developments in...
Shares of Century Aluminum have been given a consensus rating of “Buy” by the ten brokerages that are presently covering the stock, American Banking and Market News reports. Two analysts have rated the stock with a hold recommendation and seven have issued a buy recommendation on the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $21.89. Shares of Century Aluminum opened at 29.28 on Thursday. Century Aluminum has a 1-year low of $7.80 and a 1-year high of $29.54. The stock has a 50-day moving average of $21.65 and a 200-day moving average of $15.86. The company’s market cap is $2.600 billion. Century Aluminum last posted its quarterly earnings results on Wednesday, July 30th. The company reported $0.21 EPS for the...
Noranda Aluminum Holding (NOR) was one of the Russell 2000's biggest losers for September 8 as the stock slid 5.47% to $4.32, a loss of $0.25 per share. Starting at an opening price of $4.55 a share, the stock traded between $4.30 and $4.58 over the course of the trading day. Volume was 765,416 shares over 3,026 trades, against an average daily volume of 765,550 shares and a total float of 68,852,804. The losses send Noranda Aluminum Holding down to a market cap of $297,444,113. In the last year, Noranda Aluminum Holding has traded between $5.08 and $2.21, and its 50-day SMA is currently $4.21 and 200-day SMA is $3.65. 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 prices fell 0.63 per cent to INR 126.35 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 October month contracts lost 80 paise, or 0.63 per cent, to INR 126.35 per kg, with a business turnover of 15 lots. The metal for delivery in September also shed 75 paise, or 0.59 per cent, to trade at INR 125.35 per kg in a turnover of 357 lots. Marketmen said a weak trend in the base metals pack at the London Metal Exchange as stronger dollar curbed demand for commodities and subdued demand from consuming industries at domestic spot markets, mainly put pressure on aluminium prices at futures trade here.
Sohar Aluminium (SA) had conducted a summer internship program called Summer Students Training Program (SSTP) 2014 which drew to a close with the graduation ceremony held at Crown Plaza. The chief sponsor behind this project was Dr Khalifa al Jabri who is a member of the State Council and head of the civil engineering and architecture department at the College of Engineering, Sultan Qaboos University. For the 7-week internship that started in July spanned across a variety of departments of Sohar Aluminium and at the end of it, 57 students were handed their graduation certificates. The Human Resource Department organised the SSTP which aimed at providing hands-on industry training from basic to more advanced levels in a bid to develop workforce in Sohar Aluminium so that the Batinah...
With the rising exports and a second climb of aluminium in three days, China, the biggest consumer of industrial metals, experienced a healthy trade surplus. According to the Beijing based customs administration, China’s export grew by 9.4% in August when compared to last year, beating the Bloomberg News Survey prediction of 9%. Meanwhile aluminium saw a hike of 0.3% climbing to $2,100/mt in London. The unexpected 2.4% drop in the imports also contributed to the trade surplus which amounted to $49.8 billion. “China’s better-than-expected trade surplus and exports data eased concern over a slowdown in the country’s growth, providing support for metals,” said Kazuhiko Saito, an analyst at Fujitomi Co., a commodities broker in Tokyo. Aluminium had dropped by 0.2% last week which was its...
Aluminium Bahrain B.S.C. (Alba) underlined its commitment towards promoting employee health and well-being by organising various health sessions for its employees during the month of August. Two sessions – one on Ebola virus and the other on Healthy Diet and Food - were organised and arranged by Alba’s Health Care Centre and Alba Labour Union, and were held at Alba’s Labour Union Hall. The lecture on Ebola virus was conducted by Dr. Manaf Al Qahttani, Consultant Infectious Diseases, Royal Medical Services, BDF Hospital who addressed the fatal virus and its symptoms, its recent outbreak and how to take the necessary precautions. The talk on Healthy Diet and Food was held for all female Alba employees and was presented by Fatima Al-Shaikh, a certified fitness trainer at Alba Health Care...
The Port of Oswego has seen record levels of aluminum shipments so far this year and shipments between the port and the St. Lawrence Seaway are expected to increase by 30 percent this year, according to the Chamber of Marine Commerce, a bi-national association that represents approximately 150 marine industry stakeholders. The Port of Oswego estimates that more than 120,000 metric tons of aluminum will be delivered to the port in 2014, due to high demand from aluminum sheet manufacturers catering to the automotive industry. The aluminum is shipped by barge from the Aluminerie Alouette facility in Sept-Iles, Quebec, the largest aluminum smelter in the Americas. “The bi-national nature of the Great Lakes and St. Lawrence Seaway system makes it a natural conduit for cross-border trade,” said...
