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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The market is tighter at the moment than we initially expected which supports prices. However, at the end of July the LME rule change ban will be challenged and, if successful, will likely increase supply to the market noticeably as 2 million tons of inventory in Visslingen, Switzerland, and 1.3 million tons in Detroit are still bottlenecked behind long LME load-out queues. While the premium/price reaction is uncertain, we would expect the excessive premium to melt. We also think that economics have now reached a level where restart risk becomes striking. Medium-term, we note that the UK and US seem to be heading toward a rising interest rate environment which will make the carrying trade more difficult. The key dynamics buffeting the aluminum market. On the whole, they have been positive...
Saudi Arabian Mining Company (Ma’aden) announced that 1st September 2014 would be the target date for the beginning of the commercial production of the Aluminum Smelter at its subsidiary Ma’aden Aluminum Company. Ma’aden Aluminum Company is a joint venture (JV) between Saudi Arabian Mining Company and aluminium producer Alcoa, with the former holding a majority stake of 74.9 percent. The $10.8 billion joint project is designed to produce 740,000 tonnes per year through the aluminium smelter and is claimed to be the lowest cost aluminium production complex within Alcoa. In its project factsheet, Alcoa said that the “Ma’ade-Alcoa JV will help further lower Alcoa’s overall cost-base as it takes it highest cost smelting capacity offline and shifts production to lower-cost refining...
Aluminium prices fell by 0.29% to INR 121.95 per kg in futures trade today as speculators trimmed positions amid a weak global trend. At the Multi Commodity Exchange, aluminium for delivery in July shed 35 paise, or 0.29%, to INR 121.95 per kg in a business turnover of 258 lots. Likewise, the metal for delivery in August traded lower by 35 paise, or 0.28%, to INR 122.65 per kg in 30 lots. Analysts attributed the fall in aluminium futures to a weak global trend ahead of data on China's manufacturing as some investors viewed recent rally to a 16-month high as overdone. Meanwhile, aluminium for delivery in three months retreated 0.2% to $2,038.25 a metric tonne on the London Metal Exchange.
Aluminum producer Norsk Hydro AS A's Chief Executive Svein Richard Brandtzaeg said that premiums for the physical delivery of aluminum had risen to record levels this year amid a tighter market, a rise that could continue for the rest of the year. "There's been a surplus situation for many years, but now we are in a situation where there's a deficit of aluminum, which right now is about 1 million tons in the world outside of China," said Mr. Brandtzaeg. Global demand for aluminum, excluding China, increased 4% on the year in the second quarter to an annualized 27.5 million tons, while production is expected to reach about 26 million tons this year, Norsk Hydro said. "This is because of curtailments to production, but also high demand growth," said Mr. Brandtzaeg. Aluminum prices at the...
World Aluminium markets have again showed minor decline in the production figures. The June month brought some relief in the rising trend of production that was near all time highs. Data estimates from International Aluminium Institute (IAI) showed that the total primary Aluminium production reached 4.303 million tonnes in the month of June 2014 from 4.331 million tonnes in the month of May 2014. Although on a year on year basis the production is still showing signs of improvement. The production gained 1.8% on a y-o-y basis in June 2014. The production of Aluminium reached record highs of 4.406 million tonnes in the month of March. The production of Aluminium in June 2014, gained by 1.8% compared to corresponding period last year when it was 4.224 million tonnes. China remained the major...
Press Metal Bhd (Press Metal) will be a direct beneficiary of rising aluminium prices and premiums. AmResearch Sdn Bhd (AmResearch) noted that aluminium prices have reached a 17-month high due to low inventories, high demand and the cut in global capacity. On Monday, the London Metal Exchange (LME) spot aluminium closed at US$2003.25 per MT, a 14 per cent year to date (YTD) gain, adding that the YTD average is US$1,772.66 per MT. “Similarly, global aluminium premiums have reached all-time highs due to strong demand for physical deliveries,” the research house pointed out, adding that on Monday, global aluminium premiums were trading at US$305-US$432 per mt. Press Metal’s smelters are currently operating at maximum capacity – 440,000 metric tonnes (MT) – and have competitive production...
Aluminum prices are now gathering up the rising momentum due mainly to falling inventories, Shanghai Metals Market understands. It is now the low-demand season, but aluminum stock declines have not slowed from those recorded during the peak-demand period. Last Thursday, total inventories in Shanghai, Wuxi, Hangzhou, and Nanhai were 798,000 tonnes, down 42,000 tonnes on a weekly basis, according to SMM data. SMM attributes the decline mainly to the drop in market supply after production halts or suspension, in addition to growing consumption of aluminum liquid and the shipment to regions with new fabricating capacity, such as Shandong, Henan, Hebei, Hubei, etc. Over 2 million-tonne aluminum capacity has been cut so far this year, with complete shutdowns reported in May and June. More than...
Aluminum entered a bull market in London and traded near the highest in 16 months on speculation demand will exceed supply for the metal used in everything from cars to packaging. Stockpiles monitored by the London Metal Exchange slumped 9.4 percent this year to the lowest in 22 months. Producers outside China cut output after prices on the bourse slumped 13 percent last year. Demand will exceed supply by 136,000 metric tons this year, with the deficit widening to 504,000 tons next year, Bank of America Corp. estimates. Premiums added to the LME benchmark price to obtain metal in Europe, North America and Asia climbed to records this year. “Aluminum is another metal with improving fundamentals, so we’re not surprised to see the price rally there,” said Nic Brown, head of commodity...
Aluminum's contango has fallen to 18-month lows amid dwindling exchange stocks, the latest in a recent series of bouts of volatility that have reignited a years-long debate about how tight the market really is. The cash price on the London Metal Exchange was at a discount of $16.75 per tonne to three-month forward prices, more than half the size of the spread than a month ago and its smallest since December 2012. The sudden narrowing was the third time spreads have tightened since April when spread volatility suddenly returned after a nine-month absence. The aluminum market has been in a marked contango for at least the past five years, giving traders the opportunity to store vast stocks of the metal while it accrues value and sell it forward at a profit in so-called financing deals....
London-based holding company Vedanta Resources increased its shareholding in metals and mining firm Sesa Sterlite by two percentage points to 57% in the quarter to June as it bought nearly 6.5 crore shares for about INR 1,700 crore. Analysts said the timing of the transactions, soon after the Narendra Modi-led government took over at the Centre in May, indicates the company's confidence that the new government will clear the pending approvals that marred Sesa Sterlite's performance in the past three years. If the approvals do come through, Sesa Sterlite can double production capacity in its zinc, iron ore and oil businesses in the next four to eight years, according to analysts. Sesa Sterlite has been waiting for approvals for projects including iron ore mining in Goa, coal mining and...
Century Aluminum Sebree LLC, a wholly owned subsidiary of Century Aluminum Company, announced today that a new, five-year collective bargaining agreement with the United Steelworkers Local 9443-00 was ratified, for the Century Sebree aluminum smelter in Robards, KY. The agreement is effective through October 28, 2019. "We are pleased to reach a new agreement with the Steelworkers," said Jason Young, Sebree's plant manager. "This collaboration between the two parties is another example of how we continue to work together to provide the best opportunities for our employees and at the same time better position Century Sebree to compete in a highly competitive aluminum market." The agreement covers approximately 400 hourly workers at the Century Sebree operation.
Rising Chinese output is likely to act as a brake on aluminium's 15 percent rally since May, even as the global outlook for the industrial metal improves. It's no secret that much of Chinese aluminium smelting capacity operates at a loss and is reliant on subsidies from local and regional governments to survive. But the price gain in the second quarter resulted in capacity that was either idled, or about to be shut, remaining in operation, according to a report from Beijing-based consultants AZ China. This is despite some 80 percent of Chinese smelters, representing some 20 million tonnes of annual capacity, operating at a theoretical loss, AZ China said. The average cash cost for a Chinese aluminium smelter in the second quarter was 14,161 yuan ($2,282) a tonne, above the Shanghai...
Norsk Hydro ASA's underlying earnings before financial items and tax (EBIT) declined to NOK 544 million in the second quarter from NOK 772 million in the first quarter. Seasonally lower power production and prices weighed on underlying results, partly offset by higher all-in metal prices and improved results in Primary Metal. • Underlying EBIT NOK 544 million • Higher all-in aluminium and realized alumina prices • Alunorte production at record-high levels • Seasonally lower power production and prices • World outside China primary aluminium demand continues to exceed production • Signed agreement to take over Søral primary plant "Aluminium demand continues to exceed production resulting in a tight market, and we see the all-in metal prices at their highest levels since 2012. We are...
Aluminium Bahrain B.S.C. (Alba), a leading aluminium producer in the world, today (July 20, 2014) announced that the registration is open for the 18th International Arab Aluminium (ARABAL) Conference through its website www.arabal.com. The Conference 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 at the Gulf Hotel, Bahrain under the theme - “GCC: An aluminium power house”. The website is now also featuring the countdown of number of days remaining until the launch of this awaited international event. Speaking on this occasion, Alba’s Chief Executive Officer Tim Murray said: “We are pleased to see quick-paced developments taking place, and registration is one of the key steps taken...
The public consultation on the draft Performance Standard and Chain of Custody Standard of the Aluminium Stewardship Initiative is now open from 14 July to 7 September 2014. The Aluminium Stewardship Initiative (ASI) was launched at the end of 2012 by key players in the aluminium industry and is supported today by fourteen companies: Aleris, Amcor Flexibles, AMAG/Constantia Flexibles, Audi, Ball Corporation, BMW Group, Constellium, Hydro, Jaguar Land Rover, Nespresso, Novelis, Rexam, Rio Tinto Alcan, and Tetra Pak. The aim of the ASI is to design a Standard that can be both a tool for responsible sourcing of aluminium, and a material stewardship collaborative framework to improve the overall sustainability performance of the entire value chain of aluminium-containing products. The ASI...
Aditya Aluminium, (an Aditya Birla Group Company) has organized a Mega SHG (Self Help Group) Convention on 18th July at its plant location at Lapanga in Sambalpur district. A total of 36 SHGs comprising of 410 members have joined the convention. Women Empowerment was the main objective of the convention. Keeping the objective in view, various fronts of women empowerment like bringing overall development in both social and economic scenario of the women folk, were discussed amongst the dignitaries and the members present in the convention. The members were also being taught on the different ways and methods to keep themselves empowered both economically and socially. Speaking on the occasion as the Chief Guest, Mr Sitanshu Tripathy, the Special Land Acquisition Officer (Spl LAO) of...
Hindalco Industries Limited, the metals flagship company of the Aditya Birla Group and a global leader in aluminium and copper, on Friday announced plans to raise up to INR 5,000 crore ($829.5 million) through sale of shares to institutions or through other options. Hindalco Industries Ltd today informed the Bombay Stock Exchange (BSE) that the board of directors of the company at its meeting today approved raising of funds for an amount not exceeding INR 5,000 crore through issuance of securities, including equity shares or equity-linked securities, including through SEBI-mandated qualified institutions placement. Alternatively, the company said, it may issue equity shares through convertible bonds, depository receipts and/or any other instrument convertible or exchangeable into equity...
National Aluminium Company (Nalco) today said it plans to acquire a coal mine in an African country, which shares a friendly bilateral relation with India. “We will like to have a coal mine in an African nation provided it has a better relationship with India,” said Ansuman Das, chairman-cum-managing director of the company while speaking at a seminar organised by Odisha chapter of the Confederation of Indian Industry (CII). “As we are in the aluminium business, we are eager to have energy assets all over the world,” he added while speaking to diplomats of African nations at the seminar. Energy cost makes up to 40 per cent of aluminium production and therefore, every aluminium producer seeks to ensure captive power generation facility. Nalco has been eyeing for an foreign coal block since...
