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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The Aluminum Association, in cooperation with the Aluminum Association of Canada, reported primary aluminum production in North America (U.S. and Canada) was at an annual rate of 4,708,552 tonnes during February 2014, up 2,101 tpy (0.04%) over the previous month's rate of 4,706,451 tonnes. Compared to a year ago, the annual rate of production was 6.7 percent below the February 2013 rate of 5,048,563 tonnes. During the first two months of 2014, actual production totaled 760,930 tonnes, 6.4 percent below the 2013 total of 812,969 tonnes.
Aluminum demand in the United States and Canada (shipments by domestic producers plus imports) totaled an estimated 2,018 million pounds during January 2014, down 2.9 percent from a year ago. Demand for semi-fabricated (mill) products totaled 1,350 million pounds, declining 1.5 percent. Apparent consumption (demand less exports) in domestic markets totaled an estimated 1,673 million pounds, 4.6 percent lower than last year. Exports of aluminum ingot and mill products from the U.S. and Canada (excluding cross-border trade) totaled 346 million pounds in January, up 6.5 percent over a year ago while aluminum imports were also up 6.5 percent to a total of 405 million pounds.
CME has found the perfect setting in CRU aluminium conference to launch its North American aluminium contract which intends to solve the hedging issues created by rising physical aluminium premiums. It was the main focus of discussion in the CRU conference. According to Barclays, who attended the CRU North American Aluminium Trends conference, this contract will not have any near-term effect on premiums. Moreover, if it can achieve financial and physical liquidity along with handling the delivery queue issues, then it can give a serious competition to LME in the North American market. The conclusion drawn by the majority of consumer audience was that they welcomed the contract mostly because of the possible benefit it may bring regarding hedging issues created while using the LME...
On March 18, Bazarbay Nurabayev, the chairman of the Geology and Subsoil Use Committee of Kazakh Ministry of Industry and New Technologies said the estimated resource of Kazakhstan is 809 mn tons. "The forecasted aluminum (bauxite) resources are estimated at 809 million tons," Nurabayev said while speaking at a meeting on the topic 'Status of the resource base of non-ferrous metals, the ways of development of geological exploration works for nonferrous metals in Kazakhstan'. The committee chairman recalled major part of these resources is found in Torgai province. During the period 2003- 2012 5 to 8 fields were under operation. Approximately 47 million tons of bauxite was produced and the production in 2012 was about 4.7 million tons. As geological exploration works were being carried out...
Press Metal Berhad may consider expansion of smelting operations if the plan of the state government for constructing more hydroelectricity dams finally takes place. Datuk Paul Koon Poh Keong, chief executive officer said the media the reason behind this is the industry was a heavy consumer of power. The state government is considering building of dams in Miri and Kapit divisions simultaneously from the next year. It has presently the 2,400MW Bakun and also 944MW Murum dams. "It is going to be power rich. Should we proceed with our expansion plan, Bintulu will be an ideal place. "This is because the government is building a new sea port in Samalaju which allows us to save on transportation and logistic costs," he added. Koon said the aluminum industry is important for Malaysia due to the...
Aluminium Bahrain B.S.C. (Alba)’s commitment to achieve a “Zero Accidents Work Environment” across the organisation was reflected by an increased number of safety training hours during 2013. The number of safety training hours increased by 43% in 2013 where the total number of training hours exceeded 28,000 as compared to 20,000 in 2012. The safety training included all 3,000 Alba employees as well as contractors working at Alba. The training included such activities as behaviour observations, critical task analysis, job safe practices, firefighting, contractor management and many more programmes. The company also delivered several courses on safety, health & environment such as Heat Stress Management, Working at Heights and the Complete Supervisory 5-day Course amongst others in...
RUALR/RUALRS, a leading, global aluminium producer, announces the status of RA-400 cells modernisation project. The cell’s upgraded design and process parameters will allow reducing electricity consumption to less than 12,900 kWh per tonne with the current efficiency of more than 95.5% and at the amperage of 435 kA. The total project investment including the testing in a pilot area is estimated at USD 70 million. The RA-400 is RUSAL’s own technology developed by the in-house Engineering and Technology Centre. The project is aimed to create an innovative cell with unique upgraded features: it would operate at 400-440 kA with the cell capacity of 3,300 kg per day and total fluoride emissions less than 0.2 kg per tonne. Sixteen RA-400 cells have been tried at the testing centre of the...
National Aluminium Company Limited (NALCO) has signed an MoU with Union Ministry of Mines regarding financial and non-financial targets for 2014-15. The MoU was signed between Anup K Pujari, Secretary, Ministry of Mines and Ansuman Das, CMD, NALCO, in New Delhi, yesterday, a company release said here today. As per MoU, the net sales turnover target has been fixed at Rs 6,925 crore. As regards physical performance, NALCO has an annual production target of 68.25 lakh tonnes of bauxite, 21.65 lakh tonnes of alumina, 3.15 lakh tonnes of aluminium and power generation of 5001 million units, it said. Regarding new initiatives, the proposed major milestones would be the new wind power plant of 100 MW capacity at any suitable location in the country and commissioning of roof top solar power...
The Chairman, Ikot Abasi Local Government Area, Ufot Udoinyang, has urged the Federal Government to intervene in the ownership crisis at the Aluminum Smelter Company of Nigeria (ALSCON), Ikot Abasi. Udoinyang said in Ikot Abasi, Akwa Ibom, on Sunday that the intervention became necessary to make the plant viable again. The Supreme Court had on July 6, 2012 ordered Russian Aluminum Company RUSAL to handover its ownership of ALSCON to Bidder United States Consortium (BFIG). He said the intervention would enable the public to know whether the company was owned by RUSAL or BFIG. Since the ownership crisis, the company that produced aluminum ingots and provided jobs to hundreds of youths in Akwa Ibom had not been in real business. “Because of the court case, the company is living with fear of...
The chief executive of an aluminium smelting plant here has refuted claims that his factory is a major polluter. Press Metal Bhd chief executive officer Datuk Koon Poh Keong told a press conference all doubters were “welcome” to visit the smeltery, which he insisted was environmentally responsible. “We are misunderstood. People’s perceptions of aluminium factories are based on ideas from 20 or 30 years ago. “This factory uses latest technologies to meet the Environment Department’s requirements, which are the same as those of the World Bank,” Koon said, when told the plant was last week highlighted negatively by whistleblower website Sarawak Report. Alleged pollution by the plant has also been a core Pakatan Rakyat campaign point in the Balingian by-election. Koon urged critics to look at...
The Canadian International Aluminium Conference (CIAC), scheduled to be held from June 2-4 in Montreal will create a platform for global experts to discuss the great opportunities for aluminium and aluminium industry, one that employs about 10,000 people in Quebec. These discussions will cover the new technologies for production and advanced manufacturing & processing including aluminium’s numerous applications, the present challenges and issues and future opportunities. Since a long period of time, there has been a significant transition period in the aluminium industry. For example, China being quite new to the aluminium industry has already witnessed the supply of half of the total aluminium output from its plants. Emerging regions like Middle East are moving rapidly keeping behind the...
The Chicago Mercantile Exchange’s new aluminum futures contract, which will begin trading May 5th, will be available for trading on the floor and electronically via CME Globex, as well as submission for clearing through CME ClearPort, and will be listed by and subject to the rules of COMEX. CME previously announced it has applications in place from Scale Distribution Inc. in Ypsilanti, Mich., C. Steinweg Inc. in Baltimore, and Henry Bath LLC in New Orleans for warehousing the physical aluminum. The new contract “will offer global aluminum market participants a new tool for managing their exposure to volatile North American prices, while giving them access to physical aluminum at a number of CME Group-approved warehouses across the US,” CME said in a statement announcing the launch of the...
Anglo-Australian group BHP Billiton this week launched a project to support small-scale farmers in three districts of Maputo province, in the south of Mozambique, the group said. The initiative, which is funded by “BHP Billiton Sustainable Communities,” a project set up by the mining group to meet its contractual obligations to support communities in the areas where it operates, will be funded with US$8.8 million, paid out over five years. The funding will focus on 50 farmers organisations in the districts of Boane, Marracuene and Namaacha and is intended to increase family income, improve production capacity through training and improved access to finance. “BHP Billiton Sustainable Communities” already funds some projects in Mozambique, namely focusing on maternal and child health,...
Aluminum Corp. of China Ltd. posted operating revenue of about CNY 173.04 billion for 2013, up 15.76 percent year on year. Net profit attributable to shareholders was CNY 948 million, ending a loss-making operation. Earnings per share was CNY 0.07. Capacity utilization rate was 79.81 percent. It mainly attributed the end of a loss-making operation to dropped cost and increased gross margin, apart from a list of asset and equity sales.
Taking weak cues from global markets, aluminium eased by 0.24 per cent, to INR 104.30 per kg in futures trading today as speculators offloaded their positions. Besides, subdued demand in the domestic spot markets also weighed on the metal prices. At the Multi Commodity Exchange, aluminium for delivery in April declined by 25 paise, or 0.24 per cent, to INR 104.30 per kg in business turnover of 81 lots. Similarly, the metal for delivery in March traded lower by 20 paise, or 0.19 per cent, to INR 102.50 per kg in 183 lots. Analysts said the weakness in aluminium at futures trade was mostly in tune with a downtrend in base metals at the London Metal Exchange on demand concern after the Federal Reserve signalled it would raise interest rates.
Dubai Aluminium (DUBAL) based in the United Arab Emirates has awarded Hertwich Engineering, Austria, with the supply of two helical ultrasonic testing devices for its casthouses. The new equipment will raise the capacity of DUBAL’s testing facilities to ensure good product quality and to manage higher production volumes. Both ultrasonic testing devices are equipped with 10 volume probes and 20 angle-beam scanning probes and are thus able to examine the entire billet volume and the surface zone for defects and inclusions. The two facilities are designed to examine billets with diameters from 152 millimeters to 406 millimeters. Commissioning of the ultrasonic testing devices in Casthouse 2 already took place in February 2014, while commissioning in Casthouse 1 is scheduled for July 2014.
Shandong Nanshan Aluminium Co. reported an 8.66% YOY gain in their net profit in the year 2013 and also cited increasing competition from South America and South East Asia with global economy staying weak. The company made a total profit of 793.63 mn yuan ($128.74 mn) in 2013 or 0.41 yuan per share. Aluminium prices on LME were in a discount of over $200 per ton to Shanghai Futures Exchange prices for most of the time in 2013, leading to `a continuous contraction in the overseas market’’ for Chinese export sales, Shandong Nanshan said in its financial report. At the same time, the aluminium fabricators in Malaysia, Vietnam Brazil and Burma hastened the development and also their encroached market shares all around, it said. The production of the company and sales of extrusion products saw...
Rusal is presently in talks with their lenders to delay a repayment of part of its $10bn debt pile next month in the latest sign of distress in struggling industrial sector in Russia. Russia’s metal sector is struggling under a slow economy’s burden as well as weak commodity market and imposition of sanction from west. On Thursday, Anton Siluanov, the finance minister of Russia said the government was considering the creation of a special fund, supported by VEB, the state bankin order to support industry like it did in the year 2008-2009, although he warned the government would not bail out oligarchs of the country. “We should help companies, not owners,” he told a business forum. Rusal has been negotiating with their creditors since last year to bring out a change in the terms of its...
