The US September consumer confidence index plunged 6.7 points to 81.9, the lowest since 2014 and deteriorating across the board. The University of Michigan survey showed consumers' assessments of their current financial situation and that one year ahead both fell about 10 per cent, with high-price concerns continuing to brew. Inflation pressure showed no signs of easing. US Fed Governor Cook said AI demand growth, rising oil prices, and supply chain disruptions from Middle East conflicts would keep inflation under pressure, but gave no clear guidance on rate hikes. CME data showed the market-implied probability of a 25 bp rate hike in October had risen to 70.9 per cent, and the probability of a cumulative 50 bp hike by December reached 58.7 per cent. Tightening expectations strengthened...
The proposed Srikakulam aluminium smelter project in Andhra Pradesh is gaining momentum, with around 6,800 acres of saline land earmarked at Mulapeta and Pundi for the large-scale industrial development. The proposal could also bridge Odisha’s alumina industry with Andhra Pradesh’s coastal port infrastructure, forming a potential industrial link between the two states. Union Minister for Civil Aviation Kinjarapu Ram Mohan Naidu discussed the proposed smelter with Union Minister for Mines G Kishan Reddy in Delhi, highlighting the availability of around 6,800 acres of saline land in Srikakulam district. Out of this, 5,000 acres are located in Mulapeta and 1,800 acres in Pundi. Explore the production, demand and consumption forecasts of bauxite and alumina in our report: “ Global Bauxite &...
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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...
Aluminium prices were up by 0.24% in futures trade today as speculators created positions, tracking a firming trend in the global markets. Besides, increased demand at domestic spot markets also influenced prices. At the Multi Commodity Exchange, aluminium for delivery in current month rose by 30 paise, or 0.24%, to INR 125.50 per kg in a business turnover of 181 lots. The metal for delivery in October also rose by a similar margin to trade at INR 126.50 per kg in 14 lots. Analysts said the rise in aluminium prices at futures trade was mostly due to a firming trend in global markets after data signalled improving economic conditions in the US and China, the biggest metals consumers.
Smelters and foundries need support if they are to survive. As a start, Eskom has to sort out its electricity supply problems, and government’s R4-trillion infrastructure plan needs to get under way soon. Better still, the private sector should be encouraged to provide more traditionally sourced energy. BHP Billiton has turned off its Bayside aluminium smelter in KwaZulu-Natal. Smelting costs too much, even though the company has a hugely preferential electricity pricing agreement with Eskom. Bayside, BHP Billiton’s Hillside aluminium smelter and the Mozal smelter near Maputo in Mozambique together used about 9% of South Africa’s total electricity output. A chunk of state infrastructure funding is being spent on building new energy capacity — mainly the delayed Medupi and Kusile...
Japan aluminium buyers agreed to pay premiums of $420 a metric ton in the next quarter as confirmed by the buyers and seller representatives in Japan. That is a record rise from the range of $400 to $408 a ton in the present quarter and a record high for the fourth consecutive time. Japanese buyers and suppliers negotiate the premiums quarterly and they agree to pay this premium on the LME cash price for the three months beginning from October according to a trader source on condition of anonymity. Japan aluminium premiums surged 71 percent this year with a record hike in every quarter. Alcoa has already announced the closing of Portovesme Smelter in Italy which will reduce its annual smelting capacity by 150,000 tons to 3.6 million tons. The aluminum industry has been on a capacity cut...
Answering a query put by CNBC-TV18’s guest editor Abhay Laijawala, MD & Head of Research, Deutsche Equities India on whether alumna prices on the LME are expected to move up in line with aluminium prices, Ansuman Das, chairman and managing director of Nalco said alumina prices may not move up as sharply as aluminium prices but would be stable and may continue to have an up trend. The aluminium price on the LME were around USD 2100 per tonne and the spot alumina prices were around USD 325 per tonne. Das expects the aluminium prices to hold above USD 2400 per tonne. Moreover, he thinks with the new government’s focus on infrastructure development the demand for aluminum in India could be high.
Morgan Stanley upgraded shares of Century Aluminum from an equal weight rating to an overweight rating in a research report sent to investors on Tuesday morning. The firm currently has $33.00 price target on the stock. “We are upgrading CENX to Overweight and introducing our PT at $33 (up 106% vs. our previous base case). Our upgrade is based on 69% upward revision to our 2015e EBITDA on stronger pricing & mix. We see $4/share of incremental value from mix improvement, $3 from growth, and $1 from cost cutting opportunities, not currently priced in shares. We estimate 2015e FCF at $3.68/sh, leaving sufficient cash to invest in low-capex growth/mix improvement opportunities and capital return (share buyback or special dividend). Our bull case is at $50 on higher EBITDA (73% above base...
According to Reuters’ reports, the London Metal exchange has revealed on Wednesday that they will launch a new clearing house on September 22 after they get clearance from the UK and European regulators. The largest and oldest market for industrial metals like zinc, copper and aluminium had decided to step up their role by building the clearing house, three years ago. Now they can use the same to improve risk monitoring, increase income and boost development of new products. The LME statement also confirms that the Bank of England has approved LME Clear's application as a central counterparty under the European Markets Infrastructure Regulation (EMIR). The regulators and central banks in France and Germany gave a positive opinion about the new development according to reports. LME Clear...
A Chinese smelter experiences partial closure due to technical faults which results in hike in the domestic price of the metal by nearly 4% this week as investors are desperate to compensate the deficit in supply. A unit of Shandong Xinfa Aluminium Electricity Group went offline suddenly due to a major electrical fault shutting down the 400,000 to 500,000 tonnes capacity unit according to Wednesday’s Shanghai Securities News. Investors immediately anticipated a shortage in supply in the near future thereby pushing up the prices. The most active aluminium futures contract in Shanghai saw a boost of nearly 4% on Wednesday with the price standing at 14,950 Yuan per tonne. The 400,000 tonnes unit is likely to remain shut for the next two months for repairs according to analyst Wang Chunhui,...
According to a SEOUL Scrap Monster report Public Procurement Service (PPS) of South Korea, the state-run agency has bought 5,000 tonnes of aluminum in last week via a number of tenders from traders. It is indicated that PPS has bought 1,000 tonnes of aluminum from the aluminium trader Glencore. The aluminum from West was procured at a premium of $234.9 per tonne over LME cash price on CIF delivery at Incheon port. Dreample is another winner of the same sell tender. It is also said that PPS to buy 1,000 tonnes of western-origin aluminum at a premium of $231.5 per tonne CIF over LME cash price. The aluminium will be procured at Incheon port. LG International won another tender for selling 2,000 tonnes of Indian-origin aluminum for delivery at Incheon and that is also to be procured at a...
Aluminum led most industrial metals higher as worse-than-expected manufacturing data in China and the euro area increased speculation of more economic stimulus. Aluminum on the London Metal Exchange rose as much as 0.6 percent. China’s official purchasing managers’ index for August declined for the first time in six months while a private PMI reading for the euro area fell to 50.7 in August from 51.8 in the previous month, data released yesterdays show. A reading above 50 signals expansion. “The market started factoring in more stimulus,” Gavin Wendt, founder and senior resource analyst at Mine Life Pty, said by phone from Sydney. “In these sorts of market conditions, the release of bad news can actually spur the market because there’s the anticipation of certain stimulus.” A Markit...
Noranda Aluminum Inc. announced Tuesday that it is laying off up to 200 employees and suspending an expansion project at its southeast Missouri smelter because state regulators refused to lower its electricity rates. The cutbacks by Noranda come less than two weeks after the Missouri Public Service Commission denied its request for a roughly 25 percent reduction in electricity rates that it pays to Ameren Missouri. "It is heartbreaking to me to be forced to take actions that eliminate jobs, but these actions are necessary to help us remain competitive in the near-term," Noranda President and CEO Kip Smith said in prepared remarks for a press conference at its New Madrid aluminum smelter. "The long-term future of this plant depends on our ability to secure an affordable and competitive...
China imported 14,100 mt of primary aluminum in July, down 31.32% YoY and 4.08% MoM, according to China Customs. The SHFE/LME aluminum price ratio kept falling and dropped below 7.0 at the end of July, adding to import costs. In addition, aluminum premiums overseas are rising steadily, also unfavorable for imports. Japanese aluminum buyers agreed to pay premiums of USD 400-408/mt over London Metal Exchange prices for shipments in Q3, up 8-12% from Q2. Aluminum premiums for Japanese buyers are likely to show further slight increases for Q4 shipments since premiums for buyers in the US and Europe are expected to rise to USD 440-450/mt for Q4 shipments and demand from Japan remains strong. Japan is Asia's largest aluminum importer and the premium for aluminum shipments it agrees to pay each...
According to Reuters reports, the aluminium prices have once again reached close to the 18-month high on Tuesday, which has pushed up the Shanghai futures by more than 2%. The aluminium rate has edged quite close to the peak it had reached the previous week, the highest it had been since February 2013. The hike could possible be in lieu with the spiking demand and the worldwide shortage of supply. Ivan Szpakowski, an analyst of Citi in Shanghai expresses his surprise at the rate of increase in the aluminium prices and says that a lot of it is possibly driven by “CTAs (commodity trade advisers), momentum traders, and also macro trading on the more positive views of global economic growth” as opposed to fundamental factors. The prices will settle back to a lower number soon. The central...
Aluminium prices edged higher by INR 2 per kg at the local non-ferrous metals market today on increased industrial demand amid a firming global trend. Traders said buying activity in aluminium picked up after it surged to 18-month highs in global markets, amidst falling stockpiles on the London Metal Exchange and in Shanghai. Meanwhile, Aluminum for delivery in three months reached USD 2,113 per metric tonne on the London Metal Exchange. In the national capital, Aluminium ingots, sheet cutting, wire scrap and utensils scrap strengthened by Rs 2 each at INR 166, Rs 167, INR 169 and INR 166 per kg respectively. Following are today's aluminium rates (in Rs per kg): Aluminium ingots 166, Aluminium sheet cutting 167, Aluminium wire scrap 169 and Aluminium utensils scrap 166.
LME aluminium is due for a good correction as a five-wave cycle from the May 21 low of $1,754.75 may peak around a resistance at $2,129. The resistance is at the 161.8 percent Fibonacci projection level of an upward wave C that developed from $1,754.75. Aluminium has approached this level but failed to touch it The failure indicates the cycle may have completed or is ending. A break below the support at $2,074, the 138.2 percent level, could confirm a reversal of the uptrend, and a bearish target at $2,041, the 123.6 percent level, will be established then.
Aluminum Corporation of China (Chalco) has suspended aluminum expansions in Xinjiang on costly transportation costs, wenhua.com quoted Helen Lau, an analyst at securities company UOB Kay Hian, as saying today. Building smelters in coal-rich Xinjiang can help cut fuel costs, but this advantage has been offset by high alumina transportation costs arising from its remoteness, Helen Lau noted. Chalco reopened high-cost smelters in Guizhou, Shaanxi, Guangxi and Liaoning after securing power tariff subsidies from local governments, which have allowed these smelters to get rid of losses, Helen Lau added.
Aluminum prices have been on a bullish track in last one month. In the Shanghai market, the average spot price of A00 aluminum ingot gained 7.73% from Jun. 30 to 14,360 yuan per tonne on Aug. 29, according to the data of Shanghai Metals Market. During 1H, domestic aluminum producers were able to cut down their loses due to the rising prices. Chalco also reported a loss decline of 190 million yuan to 1.967 billion yuan during 2Q as a result of aluminum price gains. It is apparent that reasonable gains in aluminum price will be the working factor in bringing down the loss for Chinese aluminum smelters. Rising demand and continuous reduction in aluminium inventory are two major reasons behind recent aluminum price rise. However, the cut in China’s major markets and LME reportable aluminum...
