The ANZ World Commodity Price Index rose 0.6 per cent month on month and 1.0 per cent year on year, with prices increasing across most categories. The rise was largely driven by higher energy prices, while a weaker New Zealand dollar pushed the index in local-currency terms up 2.8 per cent. Oil surge lifts aluminium prices along with milk powder Aluminium benefited from supply disruption linked to the Middle East conflict. Prices rose 1.1 per cent during September and are around 23 per cent higher year on year, with production and exports in the region remaining disrupted. Dairy prices increased 1.0 per cent in September, led by skim milk powder. Prices for the product jumped 9.2 per cent month on month and are now 41.1 per cent higher than a year earlier. ANZ said milk powder prices are...
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...
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Century Aluminum Sebree LLC, a wholly owned subsidiary of Century Aluminum Company, announced today that the Kentucky Public Service Commission has approved agreements among Century Aluminum, Big Rivers Electric Corporation and Kenergy Corp. that will allow Century to purchase market-priced power for the Sebree aluminum smelter beginning February 1, 2014. This agreement will allow for continued operation of the Sebree smelter following the expiration of the current power contract on January 31, 2014. "A market power arrangement is a critical enabler for this plant to continue operating and we believe this agreement will allow Sebree to be viable in the world market over the long-term," commented Michael Bless, President and Chief Executive Officer. "On behalf of Century's Board of...
Sesa Sterlite Ltd, India’s biggest zinc and aluminium maker, beat Q3 earnings estimates as metal and oil output rose. Billionaire Anil Agarwal’s company said it will focus on reducing debt. Net income was Rs.18.7 billion in the three months ended 31 December, the Panaji, Goa-based unit of Vedanta Resources Plc said on Tuesday. That compared with a median estimate for Rs.16 billion. Sales were Rs.194 billion, better than analyst estimates of Rs.186.3 billion. The figures don’t compare with the year-earlier period as the merger of copper producer Sterlite Industries (India) Ltd and iron-ore miner Sesa Goa Ltd, both owned by Agarwal, to form Sesa Sterlite took effect in August. “We have been generating healthy cash flows in all our businesses,” chief executive officer M.S. Mehta said on a...
The global aluminium market looks very well supplied. On the surface, JP Morgan projects primary demand will be 53.1m tonnes in 2014, implying the stock-to-use coverage on the London Metals exchange is 14 weeks or more. Nevertheless, a closer look at the fundamentals reveals a sharp divergence in the balance of aluminium stocks according to region. Generally, a surplus forecast for China in 2014 masks a forecast deficit elsewhere. JP Morgan observes local deficits are particularly steep in the US, Japan and Europe, all of which compete for the same supply from the Middle East and Africa. Outside of China the latest data show production declines were most severe in Europe but also output was lower in 2013 in South America, Oceania and Asia ex-China. Capacity closures keep coming too. JP...
On Saturday, Montenegro launched a tender for selling the partially state-owned KAP aluminium plant, said an official. This aluminium plant, that has been declared bankrupt, is its biggest industrial employer. Veselin Perisic, the bankruptcy administrator of the plant said, the country expects to receive 28 million euros ($38 million) for this Aluminium Company Podgorica (KAP) along with its property. He also added, the tender will be open till February 17. KAP has been declared bankrupt by a Montenegrin commercial court last October after finding out the expiry of the deadline for submission of its plans for reconstructing. Montenegrin government is the owner of 29. 36% of this smelter. It had applied for its bankruptcy in July. It is estimated the aluminium smelter owes 360 million...
Revenue in the China aluminum smelting market has been growing at an average annualized rate of 8.7% between 2008 and 2013 to $73.8 billion. As a basic metal, aluminum has a wide variety of applications within the Building Construction, Automobile Manufacturing), Power Grid Construction, and packaging material industries. These downstream industries are strongly promoted by China´s booming economy and rising urbanization. With increasing downstream demand for aluminum products over the past three decades, aluminum-related industries developed rapidly, expanding output capacity as product prices appreciate. Alumina output, the major material for primary aluminum, has increased from 3.3 million tons in 1998 to an estimated 41.8 million tons in 2013 due to major players expanding output...
This year is predicted to be the one, when the world can churn out excess aluminium than it can use, as economic recovery begins to stoke demand while some producers cut output after years of falling metal prices. This is what is predicted by few aluminium bankers and smelters, going against the general view that excess of production over demand will continue. Whatever happens, this year prices are unlikely to improve due to huge overhang of stocks, estimated at 10 -15 million tonnes globally, although much of the excess is stocked in warehouses that are earning money via investment deals. The price of aluminium that is mainly used for construction, packaging and transport has gone down nearly 50% since 2008 and this has forced the loss-making companies to cut down their capacity in the...
Aluminum ended the yesterday's trading session marginally lower by 0.06% at the LME platform as the commodity continues to take positive cues from the short term supply tightness. Aluminum stocks declined by 39,875 MT and the cancelled warrants for the commodity increased from 2345275 MT to 2502800 MT. However this positivity on the inventory front and short term supply squeeze in the commodity due to lack of availability of the metal due to abnormally low temperatures in the US did not protect the metal from a sharp fall during the week. For the day, we have a sell view on Aluminum as the commodity might take negative cues from the new home sales data in the evening session which is expected to decline and may have a slightly negative impact on all metals, including aluminum. For the...
Aluminium Bahrain B.S.C. (Alba) is a gold sponsor for University of Bahrain (UOB)’s 14th Careers Day, which will be held from March 5 to 7, 2014 at the University’s Sakhir campus. Alba’s sponsorship support underlines the company’s commitment to inspire and enable young Bahrainis to discover career advancement opportunities within the company as well as in the aluminium industry. Alba’s Chief Executive Officer, Tim Murray and Acting Director for Administration, Abdul Rahman Janahi presented the sponsorship cheque to UOB’s Head of Career Counselling Office, Badria Zaiman. Alba has been a regular participant of UOB’s Careers Day since its inception in 1999, and the company’s stand has always attracted a large number of students eager to know about the company and the career opportunities...
Aluminum Corporation of China (Chinalco) took seven years to develop the technology to produce electrolytic aluminum using a 600 kA super-large cell. Recognized as a significant project under 863 Program in China in the year 2009, the technology was tested & certified by China Nonferrous Metals Industry Association (CNIA) and Ministry of Science and Technology. Shenyang Aluminum & Magnesium Engineering &Research Institute (SAMI) had designed this technology and it was tested in a plant built by the Liancheng Branch of Chinalco. It was designed to solve technical difficulties like magnetic fluid stability as well as operational stability of 600 kA super-large energy-efficient electrolytic cells. Experts believe this is a globally advanced technology and offers great energy conservation. In...
Rising capacity at aluminum plants in China, which account for almost half of world output, will weigh down prices this year in a market that’s already over-supplied, according to Fitch Ratings Ltd. Capacity may increase to 34.2 million metric tons from 30.3 million tons in 2013 and 26 million tons in 2012, Fitch analysts Laura Zhai in Hong Kong and Su Aik Lim in Singapore, wrote in a report today. Most of the additions will be in the western part of the country, according to the report. Capacity growth in China, also the world’s biggest user, may help extend a slump in futures prices that slid 13 percent last year. China increased production last year, while the rest of the world cut output by 1.06 million tons, according to the Fitch report. “Capacity growth continues to outpace demand...
Alstom has secured a key contract in the United Arab Emirates with Dubai Aluminium (DUBAL), to upgrade two GT13E2 gas turbines with its innovative MXL2 upgrade package. The upgrade will increase flexibility and competitive advantage of DUBAL’s combined-cycle power plant (CCPP). This new contract - in conjunction with an extension to the long term service agreement (LTSA) with DUBAL - will be the first MXL2 upgrade deployed in the Middle East region. Its implementation is expected to be completed in early 2015. Progressively evolved from proven Alstom technology, the multi-mode MXL2 retrofit product gives DUBAL the ability to achieve a 1% increase in combined cycle mode efficiency as already proven with a previous implementation of the product in the United Kingdom (South Humber Bank). It...
LME aluminium may continue to hover above a support at $1,762 per tonne, with a good chance of rebounding to $1,779, as it seems to have completed a short downtrend from the Jan. 17 high of $1,825.25. The trend failed to extend further after approaching a trendline that rose from the Dec. 2, 2013 low of $1,736.25. Wave pattern suggests the completion of a five-wave cycle around $1,762, the 100 percent projection level of a wave c. A drop to $1,758 will indicate the extension of the downtrend towards $1,745, the 138.2 percent projection 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...
Looks as though “Constellium NV and UACJ Corp will form a joint venture in the United States to supply the auto industry in response to growing demand for light-weight materials, the companies said on Thursday,” reports Reuters. “Car manufacturers are turning to aluminium to raise fuel efficiency in line with new regulations, and some analysts expect a fivefold increase this year in the auto aluminium sheet market in the United States.” “Dutch-based Constellium and Japan’s UACJ plan to invest about $150 million to develop a production facility for aluminium sheet for car bodies, with an initial capacity target of 100,000 tonnes, they said in a joint statement.” “The partners aim to launch production in the first half of 2016, a Constellium spokesman told Reuters, adding they would...
Russian state lender Sberbank is negotiating with loss-making aluminium group Rusal on a debt restructuring deal to help the company weather low aluminium prices, two banking sources told Reuters on Friday. United Company Rusal, the world's biggest producer of the metal used in transport and packaging, has been hit by weak aluminium prices and its heavy net debt levels of around $10 billion. "The model has been broadly agreed... We cannot afford the world's largest producer to fail," one of the sources said. Rusal declined to comment. Sberbank could not be reached for immediate comment. The price of aluminium has shed nearly 50 percent since 2008, forcing loss-making companies to slash capacity in recent years and causing some smelters to close down completely. In 2010, Sberbank took on a...
According to Fitch Ratings, for the next 2 years, Chinese aluminium prices will remain low as new cost advantageous plants are in line. Chinese companies have spent less on the structures of these new plants as they are located mostly in China’s western part where they can take advantage of cheaper power due to the region’s abundant coal supplies. Even the new aluminium facilities have their individual power plants to cut down the power costs as in order to keep their total production costs under control. In 2013 & 2014, the additional aluminium capacity will worsen the intense competition in a market that is already over-supplied. In October 2013, the Chinese government released fresh guidelines to give more specific measures for tackling the aluminium sector’s persistent overcapacity....
If successfully concluded, current negotiations between aluminium group Hulamin and BHP Billiton offer the tantalising prospect of comparatively stable earnings growth for Hulamin over the foreseeable future. Such growth should see a reversal of fortunes for Hulamin shareholders who looked on as the share briefly traded at R40 when it was first listed in 2007, and subsequently drifted down to a low of R3 about one year ago. Yesterday the share closed unchanged at R6.30. Discussions with BHP Billiton, which have been on the go for several months, relate to the future supply of aluminium slab from BHP Billiton’s casthouse at its Bayside facility in Richards Bay. The discussions appear to have become more urgent since BHP Billiton commenced an engagement process with its employees over the...
Russian aluminium magnate Oleg Deripaska has proposed moving the nation's capital to Siberia, to stem the concentration of power and "corruption" in Moscow and help integrate the country into Asian and Pacific economies, a news report said. Deripaska, whose RusAl aluminum company has most of its plants in the Siberian region of Krasnoyarsk, made the proposal at the Davos economic forum during a panel discussion about Siberian development, Vedomosti reported on Thursday. "Moscow means excessive centralization and corruption," Deripaska said. He named Krasnoyarsk and Irkutsk as candidates for a new capital. Deripaska said that integrating Russian into the Asian and Pacific region's economies was a "question of the country's survival." Russians widely debated moving the capital to St....
Century Aluminum Co. is the US based aluminium company which though not as big as Alcoa is expected to see some great action at the stock market given the overall upward trend in the industry. Century Aluminum too benefits from industry changes The recent change in regulations by some of the major aluminium raw resource-holding countries and the output limitations, had definitely driven the basic cost of aluminium higher. Along with this the increased demand and less supply has also meant, the until now flat-trading basic materials industry is definitely set on the upward growth trend. Century Aluminum Co is seeing some great rally already in Alcoa, even as it builds on its strategy for the coming trends. Currently, JP Morgan has stated that Alcoa will see great prices driven by the...
