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 bankruptcy management of Montenegrin forging plant Kovacnica - a subsidiary of aluminium firm KAP, said it received no bids in the latest tender for the sale of Kovacnica's assets, broadcaster RTCG reported. The deadline for the bids submission expired on March 18 and bankruptcy receiver Zdravko Cicmil confirmed no offer had arrived by then at the commercial court. The sale included Kovacnica's movable and immovable assets, i.e. buildings and land, production facilities, equipment, transport fleet and other. This was the third tender for the assets' sale as this time they were offered at a starting price of EUR 700,000, nearly three times below the price sought at the previous sales attempt which was announced unsuccessful even though two bids were filed. Kovacnica first went on sale...
Taking weak cues from global markets, aluminium prices fell 0.61% to INR 106.05 per kg in futures trading today as speculators offloaded their positions. Further, sluggish demand in the domestic spot markets also weighed on the metal prices. At the Multi Commodity Exchange, aluminium for delivery in May declined by 65 paise, or 0.61%, to INR 106.05 per kg in business turnover of four lots. Similarly, the metal for delivery in April traded lower by 35 paise, or 0.33%, to INR 105.25 per kg in 8 lots. Analysts said the weakness in aluminium at futures trade was mostly in tandem with a downtrend in base metals at the London Metal Exchange on speculation that demand will slow as US Federal Reserve policymakers signalled a rise in interest rates by next year.
Noranda Aluminum Holding Corp. major shareholder Holdings Lp Noranda sold 4,794,970 shares of the stock on the open market in a transaction dated Monday, March 17th. The stock was sold at an average price of $4.50, for a total transaction of $21,577,365.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Large shareholders that own more than 10% of a company’s shares are required to disclose their transactions with the SEC. Separately, analysts at TheStreet downgraded shares of Noranda Aluminum Holding Corp. from a “hold” rating to a “sell” rating in a research note on Friday, February 21st. Two equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and one has given a buy rating to the...
The London Metal Exchange has faced more than a year of criticism for its aluminum contract. Blamed for everything that’s wrong with the aluminum market, the LME finally got a competitor who will also try to win the hearts and minds of metal buyers in the CME Group, which announced yesterday that its own physically delivered aluminum futures contract will start in May. Producers such as Alcoa have long considered the LME outdated. Last October, the aluminum producer accused the LME of “exceeding the proper role of an exchange” in a letter sent to the UK Financial Conduct Authority and the US Commodity Futures Trading Commission. The dispute centers on long lines to take delivery of aluminum from LME-registered warehouses, many of which are owned by banks, which have triggered a series of...
UC Rusal has announced the current status of EcoSoederberg technology introduction programme. The modernisation programme is being implemented at the Krasnoyarsk (KrAZ) and Bratsk (BrAZ) aluminium smelters, the company's two largest production facilities. Until 2020, Rusal plans to switch nearly 2.1 million tonnes of its aluminium production capacities to EcoSoederberg technology (out of 2.3 million tonnes currently running on Soederberg). The first experimental EcoSoederberg cells were launched at KrAZ back in 2009. Since 2010, 286 of the facility's cells have been switched to the new technology, including 89 cells in potrooms 3-6 in 2013. The amount of aluminium produced at the plant's EcoSoederberg cells was 160 kt in 2013, or 16% of the total output. In 2013, KrAZ emissions were cut...
Aluminium prices fell by 0.33% to INR 105.45 per kg in futures trading today as speculators offloaded their positions on weak cues from global markets. At the Multi Commodity Exchange, aluminium for delivery in April declined by 35 paise, or 0.33%, to INR 105.45 per kg in business turnover of 180 lots. Also, the metal for delivery in March traded lower by 25 paise, or 0.24% to INR 103.95 per kg in 907 lots. Analysts said speculators a weak trend in select base metals at global markets led to a fall in aluminium futures prices.
The stock of Noranda Aluminum Holding Corporation has been under constant pressure to show its price potential since it has reported its secondary common stock offerings price on 12th March. The offer they are going to share is around 10 million shares of common stock had almost raised the investor community’s expectations, which halted once the pricing for the stock offerings was announced. Post the announcement by the firm of the secondary share offer, the investment community has been shying away from the stock. During the past week, the stock saw its market valuation go down by a huge 16.2 percent, on the fears of a huge glut of shares of Noranda Aluminum Holding Corporation in the market. This had led to the stock shedding its 52 week high price points of $5.08 over the past few days...
LME aluminium is expected to retest a support at $1,721 per tonne, as it has completed a pullback triggered by this level. The support has been established at the 61.8 percent Fibonacci retracement on the rise from the Feb. 3 low of $1,671.25 to the March 6 high of $1,802. The pullback was towards the trendline rising from $1,671.25. Apparently, aluminium has failed to break above this trendline. A surge above $1,742 will confirm an extension of the pullback towards $1,752, the 38.2 percent level. 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 analyses.
Aluminum Corp of China (Chalco) posted a net profit of 975.2 million yuan (HK$1.2 billion) for last year, reversing an 8.2 billion yuan loss the previous year, mainly due to asset disposals. The firm also cautioned that smelters in the central and eastern regions of the mainland might be squeezed out of the market by more competitive plants in western areas. The country's largest producer of the lightweight industrial metal said mainland smelters would continue to cut output amid low aluminium prices, which favours smelters in the west with lower energy costs. "The industry will shift to [the] western regions as falling competitiveness of the central and eastern regions saw smelters face pressure to exit the market," Chalco said in a statement to the Shanghai stock exchange. "In the short...
CME Group Inc will launch in May a physically deliverable aluminium futures contract in North America to compete with LME’s $54 billion market. The group came up with the plan after LME implemented the sweeping reforms to its metals warehousing system after a years-long crisis that has undermined its own aluminium futures contract. "We have had a high level of engagement from major market participants, as well as smaller players, who are looking for an alternative to the exchange contract they have today and who want to be able to manage price risk," Harriet Hunnable, CME Group’s managing director of metals, told Reuters. Hunnable said a team for CME had been signing up a number of participants since months, and in 2 or 3 years it will be "robust and a significant size". The new contract...
Aluminium prices today rose marginally by 0.24% in futures trade mostly in line with a firming trend in the global markets. Further, increased demand at domestic spot markets also influenced prices. At the Multi Commodity Exchange, aluminium for delivery in March rose by 25 paise, or 0.24%, to INR 103.85 per kg in business turnover of 50 lots. Similarly, the metal for delivery in April traded higher by 20 paise, or 0.19%, to INR 105.50 per kg in four lots. Analysts said the rise in aluminium prices at futures trade was mostly attributed to a firming trend in the global markets and rising demand at spot markets here.
Reflecting a corporate commitment to excellence and the strength of its leadership and good governance, Dubai Aluminium PJSC (“DUBAL”) received two of the top honours at the inaugural 2014 Information Systems Audit and Control Association (“ISACA”) Excellence Awards. DUBAL, which operates one of the world’s largest single-site smelters at Jebel Ali, Dubai, is set to become an operating subsidiary of Emirates Global Aluminium (“EGA”) – the jointly-owned, UAE-based aluminium conglomerate being formed by Mubadala Development Company of Abu Dhabi and Investment Corporation of Dubai – upon EGA’s official incorporation (scheduled for Q1 2014). The awards won by DUBAL were: • “CIO/Head of the Year 2014”,which went to Ahmad M Almulla (Vice President: Information Technology), as a joint winner,...
LME aluminium may rebound to a resistance at $1,737 per tonne, as it failed to break a support at $1,721. The support was established at the 61.8 percent Fibonacci retracement on the rise from the Feb. 3 low of $1,671.25 to the March 6 high of $1,802, it seems to have triggered a rebound towards the 50 percent retracement at $1,737. A break above $1,737 will be less likely, as the resistance around this level has been strengthened by another one provided by the trendline rising from $1,671.25. 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 analyses.
Chairman of Press Metal Bhd Datuk Megat Abdul Rahman Megat Ahmad has sold a major part of his stake in the company. He sold 430,000 direct and indirect shares, at a price between RM2.28 and RM2.30 each, from 4th to 13th March. Press Metal Bhd owns aluminium smelting plants in Mukah and Samalaju Industrial Park in Bintulu. With the sale, Abdul Rahman has cut down his direct stake in Press Metal to 12.27 million shares (2.38%), and indirect stake to 67,000 shares (0.15%). On March 5, during a general meeting (EGM) the group got shareholders’ nod to sell 20% equity interest in Press Metal Bintulu Sdn Bhd (PMBSB) to Japan’s Summit Global Management for a price of about RM444m. PMBSB owns the current Bintulu smelting plant, which has an annual capacity of 320,000 tons. Sumitomo Corporation...
On Tuesday, CEAC filed a request to Vienna court for the arbitration proceedings with Montenegrin government to look for compensation over 600 mn euro for the losses that KAP aluminum plant faced after bankruptcy. KAP aluminium plant’s biggest creditors are Montenegrin government and Oleg Deripaska, the Russian billionaire, through CEAC. CEAC claims that interference was made by the Montenegrin government during investment process and this has resulted in major damages to the plant and subsequent investment loss. CEAC has also accused the government of breach of an agreement signed between Cyprus & Montenegro on mutual encouragement & protection of investment. On Tuesday the government has rejected the claims saying the demands against them were unfounded and even crticised Cyprus for its...
United Company RUSAL Plc announces via a press release that, on 14 March 2014, UC RUSAL TH, a member of the Group, as seller, entered into a sale of silicon agreement with Kamensk-Uralsky Metallurgical Works Joint-Stock Company ("OJSC KUMZ"), an associate of SUAL Partners, as buyer, pursuant to which UC RUSAL TH agreed to supply and OJSC KUMZ agreed to purchase silicon at the estimated volume of approximately 300 tons during the year ending 31 December 2014, at the estimated total consideration of approximately USD0.654 million. The consideration is to be 100% pre-paid and satisfied in cash via wire transfer. The term of the agreement is up to 31 December 2014, and will be extended for one year unless any of the parties declares its intention to terminate it. Based on the terms of the...
China Hongqiao Group Limited, a major aluminum producer expects the total production of the company to rise by about 20% in 2014 even if there is a possibility of smaller producers facing closure due to overcapacity. The chief executive officer of China Hongqiao, Zhang Bo, said smaller firms are not making money due to low domestic prices. Electricity accounts for about 40% of the total production costs of aluminum in China. "In the coming three years, at least about 30 percent of capacity (will be forced to leave the market)," Zhang said at a media briefing in Hong Kong on Monday. Currently China has approximately 30 million tons of aluminium capacity, out of which about 27 million tons is operating, said Zhang. He said almost half of operational capacity was under losses as a result of...
Aluminium major National Aluminium Company Limited (NALCO) will soon have a solar project of 160 KW solar power for its Corporate Office building here. The green project launched by NALCO CMD Ansuman Das recently is expected to generate green renewable energy of about 2.10 lakh units per annum for which the Centre would provide 30 percent subsidy of the capital cost through the Solar Energy Corporation of India Ltd (SECI). While the Navaratna company has already commissioned two wind power plants of capacities 50.4 MW and 47.6 MW at Gandikota in Andhra Pradesh and Ludarva in Rajasthan, respectively, it has planned to set up its third wind power plant in its own mining area at Panchpatmali in Koraput district.
