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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After Alcoa stocks have been upgraded by JPMorgan in November to ‘overweight’ on the prospect of a tight global aluminium market in near future, the shares of Alcoa have been moving at their fastest speed. New York- based analyst Michael Gambardella has pulled up the earnings forecast for the year to 78 cents per share, almost double the earlier projection, due to the rising price of bauxite in China. Alcoa has been aggressively involved into capacity cut over the last year to keep the aluminium price stable. “While LME aluminium prices have remained relatively flat despite the tightening physical market, regional premiums have been escalating rapidly over the past several weeks,” Mr Gambardella said. The company’s stock reached $12.13, an increase of 6.8 per cent and its highest level...
LME aluminium may retrace a little bit more to $1,795 per tonne, as it has slid below a support at $1,805. The support has been established by the 61.8 percent Fibonacci retracement on the fall from the Dec. 30, 2013 high of $1,839 to the Jan. 9 low of $1,751. The next support will be at $1,795, the 50 percent level. The uptrend from $1,751 will remain intact, even if the current correction fails to end around $1,795, as an inverted head-and-shoulders that formed between Jan. 6 and Jan. 15 is a typical bottom pattern. Only a rise above $1,818, the 76.4 percent retracement, could indicate a resumption of the preceding uptrend. 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...
Global demand for aluminum (including primary and secondary/recycled) is forecast to expand 5.9 percent per annum through 2017 to 86.5 million metric tons. China will pace growth and increase its share of global demand from 43 percent in 2012 to 48 percent in 2017, as per the latest Freedonia industry study. Demand will strongly increase in all developing regions, with the Asia/Pacific region leading the way. Rising disposable incomes in developing countries will result in a healthy expansion in demand for key aluminum consuming products such as motor vehicles, food and beverage packaging, and durable goods. Construction market to post strongest growth.The construction market will post the strongest growth and remain the primary user of aluminum, with gains benefiting from recovery in the...
Amid a continuous rise in energy costs, persistent low aluminium prices are leading producers in the US and Europe to mothball high-cost smelters. Some are also reducing the amperage used in smelter pots to restrict metal production. Despite India sitting on electricity-generating coal resources of 260 billion tonnes, smelters here are not spared the pains of high-energy bills. This is because supplies under 'linkage coal' are irregular on occasions and the quality of the fuel is always subpar. Coal imports could have been the answer, but for their high costs. Ansuman Das, chairman and managing director of National Aluminium Company (Nalco), says "apart from the stubbornly low aluminium prices on the London Metal Exchange, the unremitting coal crisis poses a serious threat to optimising...
LME aluminium is expected to gain further to $1,839 per tonne, as it has broken above resistance at $1,818. The resistance was established by the 76.4 percent Fibonacci retracement on the fall from the Dec. 30, 2013 high of $1,839 to the Jan. 9 low of $1,751, there will be no other resistance until aluminium reaches $1,839. The speed of the rise simply indicates a remote chance of aluminium to return to $1,805, the 61.8 percent retracement. Strategically, a rise above $1,826 will confirm the target at $1,839.
Montenegro on Saturday launched a tender to sell the partially state-owned KAP aluminium plant, its biggest industrial employer, which has been declared bankrupt, an official said. The country hopes to get at least 28 million euros ($38 million) for the Aluminium Company Podgorica (KAP) and its property, the plant's bankruptcy administrator Veselin Perisic said in a statement. The tender was to remain open until February 17, he added. A Montenegrin commercial court declared KAP bankrupt last October estimating that the deadline for submitting plans for its restructuring had expired. The application for bankruptcy was made in July by the Montenegrin government, which owns 29.36 percent of the smelter. The co-owner is Russian oligarch Oleg Deripaska whose Central European Aluminium Company...
Dubai ruler has issued a law converting Dubai Aluminium ( Dubal ) into a private joint stocks company under a Dubai Aluminium PJS with a declared capital of Dh3 billion ($817 million). The new rule was passed by UAE Vice President and Prime Minister His Highness Sheikh Mohammed bin Rashid Al Maktoum in his capacity as Ruler of Dubai, reported the emirates 24/7. Under the new decree, Dubai Aluminium PJS subrogates Dubal in all legal and business obligations and rights starting from the date of effective of this law, and the employees of Dubai Aluminium shall benefit from their vested right, it added.
High energy costs in energy-intensive sectors are detrimental to manufacturing industries like aluminium says David Mowat MP in an exclusive video interview. Speaking exclusively to the Information Daily, David Mowat MP, Chair of the All-Party Parliamentary Group for the UK Aluminium Industry, said that high energy costs made the aluminium industry “uncompetitive”. In comparison to countries like America, the European and especially UK industries are at significant cost disadvantages. Energy prices within America have dropped by about 70 per cent in the last year, causing a loss of business in the UK. Ahead of a meeting with the Minister of State for Energy in the Department of Energy and Climate Change, Michael Fallon MP, Mowat said: “What we are trying to do is make sure that it is...
Investment in Britain’s aluminium sector is being held back by the high cost of energy in the country, industry representatives have told a Government Minister. Members of the Aluminium Federation (ALFED) warned Minister for Business and Energy Michael Fallon at a meeting in Whitehall on Monday (January 13) that soaring green taxes were standing in the way of investment-led growth. ALFED told Mr Fallon that world demand for aluminium is forecast to double from 40m tonnes per annum to 80m tonnes by 2025. If Britain and the European Union remain wedded to high taxes on energy, then manufacturers and suppliers will look to other economies in which to base production operations. Speaking after the meeting, ALFED CEO Will Savage said: “We really appreciate the Minister taking the time to...
Aluminum giant Alcoa’s stocks gained 24% last year and the stock is expected to gain more. Due to low aluminum prices, the aluminum producers have suffered in the recent time. But they have enough reasons to be optimistic about the future of Alcoa. Though the global economic slowdown resulted in lower demand it also created a deficit in the production that should increase in the coming years. The rebounding auto industry also bodes well for Alcoa. Meanwhile, Alcoa seems to grab opportunities like production of lightweight alloys for airplanes and recently bagging a $110 million contract from Airbus. It is also planning to get into the housing industry, where it feels new window products can increase energy efficiency. Alcoa’s value-add businesses accounts for 57% of total revenues and...
S.S. Sijabat, the president director of PT Indonesia Asahan Aluminium (Inalum) announces the plans of the company to increase its total aluminium production in various stages, from their present production that is around 260,000 tons. It plans to produce 650,000 tons of aluminum per year. "All of the management and employees have been resolved to implement corporate strategic plans in the next five to ten years by increasing production, diversifying products," he said at a conference with local media leaders of the country. Sijabat feels there has not been any improvement in aluminum’s price and they had expected this condition will still remain until this year’s second quarter. Japanese investors were the major shareholders of PT Inalum. Finally, the Indonesian government took over the...
On Friday, BHP Billiton, the Global mining group said it had already been in talks with its employees about possibly closing their operation at the Bayside aluminium smelter located in South Africa. This company move would result in downsizing of 450 employees. The company said the operation "has been under significant and ongoing financial pressure" and that "BHP Billiton today began a formal consultation with employees in its Aluminium South Africa business on a proposal to cease smelting activities and associated services at Bayside." BHP is currently in talks with the two unions – Solidarity and the National Union of Metalworkers of South Africa (NUMSA) about this proposed closure that would result in downsizing. Lay-offs are a delicate issue in the country. Mining companies like...
The Board of Directors of Alcoa declared (a) a quarterly common stock dividend of 3 cents per share payable February 25, 2014 to shareholders of record at the close of business on February 7, 2014 and (b) a quarterly dividend of 93.75 cents per share on Alcoa’s $3.75 cumulative preferred stock payable April 1, 2014 to shareholders of record at the close of business on March 14, 2014. Alcoa is a global innovation leader in lightweight metals, products and solutions. Its technology, expertise and industry reach continue to advance automotive and aerospace transportation, building and construction, consumer electronics and packaging, defense applications across air, land and sea, and the oil and gas industry.
In his capacity as Ruler of Dubai, UAE Vice President and Prime Minister His Highness Sheikh Mohammed bin Rashid Al Maktoum has issued Law No. (1) of 2014 converting Dubai Aluminium (Dubal) into a private joint stocks company. Pursuant to the Law, the name of the new company is "Dubai Aluminium PJS" with a declared capital of Dh3 billion, headquartered in Dubai and may establish branches inside and outside the United Arab Emirates. Article (6) of that law stated that the Dubai Aluminium PJS subrogates Dubai Aluminium in all legal and business obligations and rights starting from the date of effective of this law, and the employees of Dubai Aluminium shall benefit from their vested right. Law No. (1) of 2014 null and void Law No. (17) of 2011 pertaining Dubai Aluminium, Decree No. (11) of...
The day’s biggest mover was the cash price of primary Indian aluminum which dropped by 1.8 percent on Tuesday, January 14. At $1,762, the aluminum 3-month price finished the market day on the LME up 0.1 percent per metric ton. On the LME, the primary aluminum cash price showed little movement on Tuesday, hovering around $1,716 per metric ton. Chinese aluminum prices were flat for the day. Chinese aluminum scrap held its value yesterday. The price of Chinese aluminum billet held steady. The price of Chinese aluminum bar saw little movement. The Chinese aluminum cash price saw little price change yesterday.
Weakening prices ended a three-day flat streak as the price of Chinese aluminum billet fell 4.5 percent on Wednesday, January 15. The cash price of Chinese aluminum reached a 30-day low after decreasing 2.9 percent. The price of Chinese aluminum bar saw essentially no change for the fifth day in a row. The price of Chinese aluminum scrap held steady. Following a 1.1 percent rise yesterday, the Indian aluminum cash price closed. After a 0.5 percent increase, the primary aluminum cash price finished the day on the LME at $1,725 per metric ton. On the LME, the aluminum 3-month price rose 0.5 percent to $1,770 per metric ton.
Norsk Hydro ASA (NASDAQ:NHYDY) was upgraded by investment analysts at Societe Generale from a “hold” rating to a “buy” rating in a note issued to investors on Thursday, TheFlyOnTheWall.com reports. Other equities research analysts have also recently issued reports about the stock. Analysts at JPMorgan Chase & Co. upgraded shares of Norsk Hydro ASA from an “underweight” rating to a “neutral” rating in a research note to investors on Wednesday, January 8th. Separately, analysts at Citigroup Inc. upgraded shares of Norsk Hydro ASA from a “sell” rating to a “neutral” rating in a research note to investors on Wednesday, November 13th. Finally, analysts at Nomura reiterated a “reduce” rating on shares of Norsk Hydro ASA in a research note to investors on Tuesday, November 12th. One investment...
The Rusal board on January 15 approved the terms for a settlement in the arbitration proceedings filed by Len Blavatnik and Viktor Vekselberg’s Sual Partners Ltd against Glencore International AG, En+ Group Limited, the company and Oleg Deripaska, Rusal said in a statement. Contracts signed between Rusal, the world’s largest aluminum maker, and trader Glencore angered Sual Partners, which owns 15.8% of Rusal shares. In 2012, Siberian Urals Aluminium Company (Sual) filed a lawsuit against them in the London Court of International Arbitration (the Arbitrations). The lawsuit concerns the supply of primary aluminum and alumina to Glencore which the Rusal board approved in 2011 contrary to Sual’s veto. In accordance with the settlement, the claims against Rusal have been amicably resolved and...
