CLSA expects the Odisha High Court’s dismissal of Vedanta Aluminium Metal’s bauxite petition to have a muted medium-term impact, despite a potential one-time liability and higher aluminium production costs. The Odisha High Court dismissed Vedanta Aluminium’s petition seeking bauxite supplies from Odisha Mining Corporation (OMC) at the historical rate of INR 1,000 (USD 10.38) per tonne. CLSA said the order could result in a one-time financial impact of up to USD 290 million, including interest, while also increasing the company’s aluminium production costs. The brokerage estimated OMC’s claim for historical dues at around INR 2,500 crore (USD 59.50 million) before tax, excluding interest. Including interest, the one-time impact could reach USD 290 million, equivalent to around 2.8 per cent...
OCBC has raised its end-2026 aluminium price forecast to about USD 3,150 per tonne from USD 3,050, citing a slower-than-expected recovery in Gulf production, although strong Chinese output is expected to continue offsetting supply disruptions. Three-month aluminium on the London Metal Exchange (LME) fell 0.9 per cent month-on-month in September to USD 3,214 per tonne as of September 29, remaining 2 per cent above OCBC’s third-quarter forecast of USD 3,150. The cash-to-three-month spread was broadly unchanged at a USD 7.40-per-tonne contango, compared with USD 7.60 at the end of August. The spread suggests limited urgency for immediate metal supply despite a continued decline in global exchange inventories. Gulf aluminium recovery loses momentum OCBC said aluminium production across the...
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A UK court ruling halting the London Metal Exchange’s plans to reduce the logjams in warehouses is pushing up aluminium prices globally. The metal, used for making cans to aircraft parts, gained 3.70 per cent last week with prices rising nearly nine per cent in a month. Last week’s gains were the third in a row after the court’s order on a petition from Russian aluminium maker Rusal. (Russia accounts for 12 per cent of aluminium produced globally. About 80 per cent of the production is exported with last year’s shipments being 3.36 million tonnes.) The London High Court struck the LME’s warehousing reform process because it found that “consultations had been unfair and unlawful”. Rusal petitioned the court fearing that prices of its products will suffer from the exchange’s plans to make...
UC RUSAL, a leading global aluminium producer, announces the trial production of red mud-based flux additives at the Urals aluminium smelter (UAZ). In 2014, the company plans to produce its first scandium concentrate. Both new products will be produced at a large output rate. In 2013 RUSAL’s R&D proposed a new technology, and a pilot production area was launched to test the red mud recycling process at UAZ that later resulted in quite a successful flux additives production initiative that supplied 1,000 mt of flux to MMK (Magnitogorsk), Tulachermet (Tula), Uralskaya Stal and Severstal Scandium concentrate will be used in production of scandium and aliminium alloys. In March 2014 UAZ started building their own scandium concentrate capacities (2 tonnes a year) that are scheduled to be...
Hydro has entered into a binding agreement to sell its special alloy aluminium casthouse in Hannover to IQ Industrial Holding S.à r.l. (Luxembourg), a private industrial holding group with operations across Europe. The Hannover casthouse is focused on special aluminium alloys, mainly hard alloys for the aerospace industry. Through the agreement, IQ Industrial Holding will acquire 100 percent of the shares in Hydro Giesserei Hannover GmbH. The Hannover casthouse was taken over by Hydro through the acquisition of VAW aluminium AG in 2002 and is considered non-core business. The casthouse supplies its hard alloy products mainly to a customer located wall-to-wall. The Hannover casthouse has around 30 employees and produced approximately 12,000 tonnes of aluminium products in 2013. The...
Aluminium prices fell by 0.35% to INR 113.80 per kg in futures trading today, largely in tune with a weakening trend in the global markets on demand concern. Further, subdued demand in the domestic spot markets also weighed on the metal prices. At the Multi Commodity Exchange, aluminium for delivery in May eased by 40 paise, or 0.35%, to INR 113.80 per kg in business turnover of 12 lots. The metal for delivery in April fell by 35 paise, or 0.31% to INR 112.80 per kg in 11 lots. Market analysts said the weakness in aluminium at futures trade was mostly in tune with a downtrend in metal at the London Meta Exchange and subdued demand at domestic spot markets.
Emerging-market stocks fell for a second day and currencies weakened as Sinopec Shanghai (338) Petrochemical Co. led a drop for material companies while tensions in Ukraine escalated. Sinopec Shanghai tumbled the most in two weeks in Hong Kong after saying it expects a loss in the first quarter. United Co. Rusal, the world’s largest aluminum producer, slid 3.3 percent in Hong Kong. South Korea’s won, Malaysia’s ringgit and Turkey’s lira dropped at least 0.2 percent against the dollar. Chongqing Changan Automobile Co., Ltd. (200625) surged by the 10 percent daily limit in Shanghai after forecasting higher profit. The MSCI Emerging Markets Index retreated 0.4 percent to 1,011.82 as of 1:20 p.m. in Hong Kong. Russia and the U.S. traded barbs at an emergency meeting of the United Nations...
Five city and county officials will be visiting China later this month to view a new type of aluminum manufacturing facility that is proposed here. The plant is said to be the first in North America to combine aluminum cast house operations with the making of extruded products (parts) and rolled (sheet metal) products under one roof. If the planned 2.95 million square foot Barstow Aluminum Corp. factory is built here, experts say it will be “a game changer” for this High Desert city of 23,000. Making the trip during the week of April 21 will be Kelly Reenders, administrator of the San Bernardino County Economic Development Agency, Barstow Mayor Julie Hackbarth-McIntyre, City Council member Merrill Gracey, City Manager Curt Mitchell and Oliver Chi, the assistant city manager who has been...
Top-aluminium Memorandum of cooperation in production of aluminum was signed between Kazakhstan and Bahrain on Monday, Kazakh media said. Vice Prime Minister – Minister of Industry and New Technologies of Kazakhstan Asset Issekeshev and Bahrain's Minister of Industry and Commerce Hassan Abdulla Fakhro signed the memorandum of cooperation during the business forum on strategic partnership between the countries. Mr Issekeshev said that their is a great potential for cooperation with Bahrain in the sphere of aluminum processing. Within the business forum, the sides also signed a memorandum of cooperation and development of business ties between the Chambers of Commerce of the two countries.
Alcoa Inc., the largest U.S. aluminum producer, was cut to junk by a second ratings company as a global oversupply of the metal hampers profitability. Fitch Ratings cut Alcoa’s credit grade one level below investment grade to BB+ from BBB-, it said yesterday in a statement. It sees Alcoa’s total debt (AA:US) remaining more than 2.5 times its earnings before interest, taxes, depreciation and amortization. Alcoa is working to reduce dependence on the price of raw aluminum by shutting high-cost smelters and boosting sales of specialized shapes and alloys for customers in growing industries such as aerospace and autos. The company was cut to junk by Moody’s Investors Service in May. Standard & Poor’s rates its debt BBB-, the lowest investment-grade level. New York-based Alcoa was removed from...
RHB Research has maintained its Buy call on Press Metal with a fair value of RM4.11, it said on Monday. RHB Researh said while both the group’s smelters are now in full production mode, it expects the group earnings to surge 87.7%/29% in FY14/FY15. It said aluminium prices jumped 10.5% in the last three weeks, particularly after the London Metal Exchange (LME) lost a lawsuit that forced it to shelve its new warehousing policy, which was designed to reduce its deadlocked inventory, which many believe was tied to contango financing. “While we concur that the event may have boosted market sentiment and resulted in an uptick in aluminium prices, we think this coincides with the improving fundamentals of the aluminium industry. “After almost a decade of capacity curtailment, the moderate...
Aluminium Bahrain B.S.C. (Alba) is pleased to announce that it has achieved 2,000,000 work hours without Loss Time Injury (LTI), thus demonstrating the company’s progress in achieving a zero accident work environment for employees across the plant. Alba’s Executive Management team and other managers congratulated all employees on their involvement in this success and praised them for their proactive attitude and commitment towards safety. Commenting on the safety milestone of 2 million working hours without LTI, Alba’s Chief Executive, Tim Murray said: “I congratulate each and every employee for helping Alba achieve this outstanding success, which is a testimony that safety at Alba is not merely a regulatory requirement but is embedded in our work culture. We will continue to remain...
Sohar Aluminium, Oman's biggest non-hydrocarbon industrial venture, has approved plans for the implementation of a productivity optimisation project that will boost output by a significant 28,000 tonnes of primary aluminium annually. The so-called 'Amperage Creep' project is one of two important initiatives launched by the company with the aim of optimising energy efficiency and productivity at its giant smelter located in Sohar Industrial Area. The other initiative concerns a comprehensive revamp of the potline designed to achieve a reduction in energy consumption, according to a top official. "During the last two years, Sohar Aluminium (SA) initiated an upgrade of the pot lining, thereby opening new avenues in terms of current efficiency and operating amperage. The full deployment of...
RUSAL/RUAL, a leading, global aluminium producer, announces investment of over USD5.5 million in aluminium-zirconia wire rod production. The first samples of high-tech products have already been certified by consumers. This is the first innovative wire rod production for electric power industry to be launched in Russia. Aluminium-zirconia wire rod production will be sited at the Irkutsk alumimium smelter (IrkAZ). Total investments in R&D and equipment for wire rod production and thermal treatment will exceed USD5.5 million. As of today, RUSAL’s aluminium-zirconia wire rod production technology has been proven, and the wire rod has been certified by Russia's leading cable producers. RUSAL has signed a contract with Seco Warwick to supply electrothermal equipment to IrkAZ. Under the...
LME aluminium is expected to test a support at $1,856 per tonne, a break below which will lead to a further loss to $1,827. The support has been formed around the 23.6 percent Fibonacci retracement on the rise from the March 21 low of $1,705.50 to the April 11 high of $1,902.50. It will temporarily block the way towards the 38.2 percent retracement at $1,827. A rebound might be triggered when aluminium arrives at $1,856 as the rise from $1,705.50 was so sharp that bulls may not be ready to give up yet. The views expressed are his own. No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the...
Energy Minister Phillip Paulwell has expressed concern about Russian aluminum company UC Rusal's move to expand its businesses elsewhere while its interest in Jamaica continues to lag behind. Energy Minister Phillip Paulwell yesterday told a parliamentary committee that he was taken aback by news that UC Rusal is set to embark on mining activities and plans to develop a refinery in Indonesia. He was speaking during yesterday’s sitting of the Standing Finance Committee of Parliament. During the sitting of parliament on March 25 opposition spokesman on finance Audley Shaw raised concern that there are no clear signs as to when the Alpart and Kirkvine plants, which are owned by UC Rusal, will reopen. The plants have been closed since 2009. Shaw said the bauxite industry is an integral part...
Base metals were supported by minutes of the Federal Reserve's March meeting, which suggested U.S. policy makers would be more cautious about raising interest rates than some analysts had expected. The Fed minutes also dented the dollar, which fell to a three-week low against a basket of currencies, further supporting commodities priced in dollars, making them cheaper to buy for consumers outside of the United States. Sentiment also got a boost from data on Thursday showing U.S. jobless claims fell to a seven-year low. Aluminium was a top gainer, climbing to a high of$1,895.75 a tonne, the strongest since Oct. 30 last year, before paring gains to close at $1,893, a 1.93 percent rise.
Media representatives are invited to attend a press conference with Jean Simard, President of the Aluminum Association of Canada, and three leaders from major Quebec smelters, namely André Martel, President and Chief Executive Officer of Aluminerie Alouette; Martin Brière, President of Alcoa Canada Global Primary Products; and Étienne Jacques, Chief Operating Officer of Rio Tinto Alcan, Primary Metal, North America. Complete details on a major global aluminum industry conference, taking place this June in Montreal, will be unveiled at the press conference. This event will bring together leading industry experts, specialists and players from every continent. Energy, advanced processing and sustainable development are some of the key issues that will be discussed at length.
Hindalco Industries advanced 4.23% to INR 142.95 at 10:45 IST on BSE after Alcoa Inc reported quarterly earnings that beat analysts' expectations on Tuesday, 8 April 2014. Meanwhile, the S&P BSE Sensex was up 96.02 points or 0.43% at 22,439.47. The stock market was closed on Tuesday, 8 April 2014 on account of Ram Navami. On BSE, so far 2.68 lakh shares were traded in the counter, compared with an average volume of 10.61 lakh shares in the past one quarter. The stock hit a 52-week high of INR 143.45 in intraday trade today, 9 April 2014. The stock hit a low of INR 138.40 so far during the day. The stock hit a 52-week low of INR 83.05 on 7 August 2013. The stock had outperformed the market over the past one month till 7 April 2014, gaining 10.03% compared with the Sensex's 1.93% rise. The...
Plans to build a large biomass plant and eco park on the site of the former Anglesey Aluminium works near Holyhead have taken an important step forward. The UK government has approved design changes to the proposals by Chester-based Lateral Power. Plans for a biomass plant at the site were first put forward in 2009 and a licence was granted in 2012. The factory could create 400 new jobs with an extra 600 in the construction phase. A spokesman for the Department of Energy and Climate Change (DECC), which first granted permission for the plant in 2011, said ministerial consent had been given to allow for some technological changes to the biomass generating station at Penrhos Works. The plant is expected to generate 299MW of electricity, which is enough to power about 300,000 homes. Anglesey...
