Mexico is approaching the final stages of negotiations with the United States on reducing tariffs on aluminum and steel products, with officials indicating that a deal could significantly lower the effective tariff burden on Mexican exporters. Luis Rosendo Gutiérrez, Mexico’s undersecretary of foreign trade, said talks had made progress during the National Auto Parts Industry congress. Discussions covering the automotive sector are targeting a 15% tariff, which could fall to an effective rate of around 4% to 5% after deductions linked to regional value content. The potential reduction would bring Mexico closer to tariff levels faced by competitors including Japan, South Korea and Germany, improving the position of Mexican suppliers in the US market. Explore the production, demand and...
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...
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LME aluminium is expected to peak in a range of $1,866-$1,885 per tonne, as indicated by its wave pattern and a Fibonacci projection analysis. The metal is riding on the final wave of a five-wave cycle rising from the March 19 low of $1,704.25. These five waves have made up a bigger wave c, which may end in a range formed by its 123.6 percent and the 138.2 percent Fibonacci projection levels. Given that the third wave of the cycle, the wave 3, has much extended, the chance of an extended fifth wave will be slim. Putting in other words, the wave 5 will not travel to the 161.8 percent projection level at $1,915. 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...
The Australian Industry Group is pushing back on the aluminium sector's call for a full exemption from the Renewable Energy Target, arguing it could lift power costs for other large electricity users, Carbon and Environment Daily reports. According to the website, the alumininum sector already claims two-thirds of all partial RET exemptions for large electricity users, designed for trade-exposed industries, but the aluminium sector says the scheme is still driving up power costs by $80 million a year, adding $40 to the cost of a tonne of aluminium which is currently selling for $1700. Australian Aluminium Council executive director Miles Prosser told CE Daily the government could do more than adjust exemptions to help others' with power prices: "It can adjust the target, it can adjust...
China Aluminum International Engineering Corporation (Chalieco) on February 21 priced its perpetual securities amounting to US$300 million with a unique structure that helped generate sufficient investor demand. The Reg S deal has an initial distribution rate of 6.875%. The first call date is at year three with reset at three-year US treasuries plus initial spread and 500bp. Then it can be called anytime afterward on a coupon payment date. Other features of the securities, according to a Nomura report, include cumulative and unlimited coupon deferral at the issuer’s discretion and a dividend pusher with a three-month look-back. It notes that the change of control clause is a call, not a put option, if the guarantor ceases to 100% own the issuer, or the State-owned Assets Supervision and...
China Aluminum exports reached the highest level since the last 2 years in the last month as traders got very high returns amidst a record premium while shipping the metal overseas. Unwrought aluminum exports and aluminum products were 370,000 mt tons in the month of March, according to customs data. This data was the highest recorded since 390,000 tons in 2011 July and more than almost the double what was in February. Premiums added to LME aluminum price to secure their delivery reached a record price in U.S and Europe in the first 2 months of this year, and they are always highly priced in Japan, as per the report of Harbor Intelligence, a researcher in Austin. “Exports rose as traders pursued profits from arbitrage with higher overseas premiums,” said Wang Chunhui, an analyst in...
Aluminum Association has come up with its brand-new website. This is their first redesign since 2008. The sleek new website is the result of a 10-month process involving numerous stakeholders both within and outside the aluminum industry. This critical communication platform aims to share the aluminum industry’s story as an essential element of modern, high-tech manufacturing in a simple yet detail manner. The Association highlights the following features of the new website for the users: • Learn the Industry’s Story: Under Industries & Product Markets, you’ll learn the story of the aluminum industry – from the mining of bauxite to end products and finally to recycling. A clickable infographic guides the way through the industry’s process and products. • Review the Sustainability...
Aluminium prices softened by 0.68 per cent to INR 109.65 per kg in futures market today as speculators reduced their positions, driven by sluggish demand in the spot market. At the Multi Commodity Exchange, aluminium for delivery in May declined by 75 paise, or 0.68 per cent to INR 109.65 per kg in business turnover of 41 lots. Similarly, the metal for delivery in April shed 65 paise, or 0.60 per cent to INR 108.25 per kg in 768 lots. The exchanged opened for the evening session. It remained closed for the opening session for 'Ram Navami'. Market analysts said speculators reduced their positions, driven by sluggish demand in the spot market mainly led to decline in aluminium prices at futures trade.
Noranda Aluminum Holding Corporation will announce financial results for first quarter 2014 in a news release before the NYSE opens on April 23, 2014. Management will review those results during a conference call at 10:00 AM Eastern on April 23, 2014, followed by a question-and-answer session. The call will be broadcast over the Internet on the homepage of the company website. The webcast will be archived shortly after the conference call concludes and will be available for replay. Conference Call Information U.S. participants: (855) 232-8956 International participants: (315) 625-6978 Participant Passcode: 20135242 Noranda Aluminum Holding Corporation is a leading North American integrated producer of value-added primary aluminum products, as well as high quality rolled aluminum coils.
RUSAL’s lenders have agreed that they will not take any action against the company on any defaults for at least a period of 3 months, while RUSAL is in talks with its lenders to revise the lending terms up to $5.15 bn in debt. The debt renegotiation is very important for the largest producer of aluminum; RUSAL Plc as the prices of aluminum has remained the lowest in the four and half years. The company had reported its 2nd annual loss in March. RUSAL said that they are trying to convince their lenders to defer loan repayment dates and reconsider $4.75 bn and $400 mn of syndicated facilities that the company wants to merge into a single agreement. Majority of the lenders has agreed to take any steps against RUSAL until 7th July or till the time any amended agreement is being reached, if...
Aluminium Bahrain B.S.C (Alba) kick starts 2014 on a solid note - sales figures for the first quarter rose by 3.1% year- on-year (YoY) to 226,472 metric tonnes (mt) while production figures were up by 2.1% YoY to reach 232,298 mt ahead of the company’s own forecast for the period (versus 227,414 mt for Q1 2013). Moreover, Alba closed the first quarter of 2014 with an average of 66% in Value-Added Sales on the back of sound demand of Value-Added products. Commenting on Alba’s sales and production figures for Q1 2014, Alba’s Chief Executive Officer, Tim Murray said: “The underlying physical demand and premiums remains very strong. Alba was able to deliver on its marketing strategy as a way to contribute to the bottom line despite the lower LME prices.” Aluminium Bahrain B.S.C (Alba) will...
Alcoa reported strong quarterly results yesterday, offset by special items tied to restructuring as the Company’s transformation accelerates. In first quarter 2014, Alcoa reported a net loss of $178 million, or $0.16 per share, which includes $276 million in special items largely tied to smelter and rolling mill capacity reductions. Excluding the impact of special items, net income was $98 million, or $0.09 per share. Alcoa’s value-add businesses drove 76 percent of segment profits in first quarter 2014, with record first quarter results in Engineered Products and Solutions and a near three-fold sequential increase in profitability in Global Rolled Products. Alumina reported the best quarterly after-tax operating income (ATOI) since 2011 and the combined upstream segments have improved...
The Aluminum Extruders Council (AEC) announced the results of the annual election of officers and directors at the 65th Annual Meeting & Leadership Conference on March 19, 2014 in Coral Gables, Florida. Richard A. Merluzzi, CEO of Pennex Aluminum Company in Wellsville, Pennsylvania, was re-elected to serve a one-year term as Chairman of the Aluminum Extruders Council. Matt McMahon, President of Pries Enterprises, Inc. in Independence, Iowa, was elected to serve a one-year term as Vice Chairman of the Council. Duncan Crowdis of Bonnell Aluminum Company in Newnan, Georgia was re-elected as Immediate Past Chairman and Rand Baldwin was re-elected to the non-voting position as President of the Council. Four new members of the Board of Directors, all elected to three-year terms as Extruder...
BHP Billiton has resumed their negotiations on an aluminum contract with Eskom in Richard Bay after a few days just before National Energy Regulator (Nersa) was about to start their hearing process which would have resulted in the contract cancellation. According to reports, BHP Billiton wants to do away with all its aluminium smelters and other interests in Northern Cape. They plan to list themselves completely as a separate company in London, Johannesburg and Melbourne. Thembani Bukula, the board member in charge of electricity at Nersa has requested suspension of injury into controversial aluminium contracts. According to this contract, 7% of the power of the country goes to aluminum smelters. But the power is bought it half the price of the generation cost of Eskom. The public is...
Garry Jones, the Chief Executive Officer of London Metal Exchange, said the company plans to introduce a new aluminum premium contract possibly by the end of 2014. The size of the contract will be 25 mt tons and will also have a swap of warrants or the bearer documents for a particular type of the metal, Bloomberg states after going through LME’s draft of specifications. “We hope it could be towards the end of this year or beginning of next year,” Jones said in an interview in Santiago yesterday. “We’ve got the specification, and then we have to get a regulatory approval, and then we have to make some system changes. It normally takes at least six months to go through all those processes.” In the last 5 years, the aluminum premiums quadrupled in U.S due to financial transactions. The long...
The London Metal Exchange may not launch its new aluminium premium contract until early next year, the exchange's top executive said on Monday, months after a competing product from U.S. rival CME Group Inc is expected to go live. The distant date for the new LME contract will stir the debate over its ability to resolve the years-long issue of backlogs and inflated physical prices that U.S. end users say are costing the industry $6 billion each year. "The regulatory process alone takes about six months, so we'll be pushing to get it done before the end of the year. It may not happen until the first quarter of 2015," Chief Executive Garry Jones said on the sidelines of the CESCO/CRU copper conference. Consumers say the LME's mainstay contract is broken because of the yawning gap between...
Emirates Global Aluminium has been officially incorporated, creating an entity accounting for 50 per cent of total GCC aluminium output. Mubadala Development and the Investment Corporation of Dubai announced yesterday the completion of the deal to merge their two aluminium assets into one jointly-owned entity . Plans were revealed in June to combine Emirates Aluminium (Emal) and Dubai Aluminium (Dubal) under a deal in which Mubadala purchased half of Dubal. The move raises Abu Dhabi’s footprint in the aluminium sector. While Emal was a 50/50 joint venture between Mubadala, a strategic investment company owned by the Abu Dhabi Government, and Dubal, the latter was wholly owned by ICD, the Dubai Government investment funf. The company will be managed by a board of directors chaired by...
Century Aluminum Company will report first quarter 2014 earnings on Thursday, April 24th after the close of market trading. The news release will be issued through Marketwired. The company will hold a follow-up conference call on Thursday, April 24th at 5:00 p.m. Eastern time. The earnings call will be webcast live on the Century Aluminum Company website. Plan to begin the registration process at least 10 minutes before the live call is scheduled to begin. A replay of the webcast will be archived and available for replay approximately two hours following the live call.
LME aluminium has found a support at $1,816 per tonne and may hover above this level for a trading session or revisit its April 4 high of $1,849. The support is provided by the 61.8 percent Fibonacci retracement on the fall from the Oct. 29, 2013 high of $1,905.75 to the Feb. 3 low of $1,671.25. An upward wave c driving aluminium from the March 19 low of $1,704.25 seems to be only partially completed, as a result, the current support may work effectively. A break below the support will cause a further drop to $1,789, the 50 percent retracement. 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...
UC RUSAL, operators of the ALSCON smelter plant at Ikot Abasi, Akwa Ibom State, weekend, denied accusations that it had cannibalised the aluminium smelter plant. The company said in a statement by Morenko Elena, of the International Media Relations office in Moscow, that it had in fact taken efforts to sell obsolete assets to minimise losses, adding that this was one of the many factors that led to the suspension of primary aluminium production at the smelter in March 2013. He said: “A key precondition for ALSCON’s successful operation is an uninterrupted supply of natural gas. However, the lack of a reliable gas supply has been a major obstacle to the development of ALSCON. Since it was re-commissioned in 2008, ALSCON has suffered six lengthy disruptions to its gas supply, resulting in a...
