A 15,000-ton shipment of primary aluminum from Venezuela has arrived at the Port of Avondale in New Orleans, Louisiana, marking the first Venezuelan aluminum shipment to the United States in nearly a decade and potentially reopening a long-dormant supply route between the two countries. The cargo was unloaded on October 5 in an event attended by US Secretary of the Interior Doug Burgum, House Majority Leader Steve Scalise and Representative Julia Letlow. The shipment is part of a broader commercial initiative involving US investment firm Heeney Capital and commodity trader Mercuria Energy Group, with the aluminum produced by Venezuela’s state-owned CVG Venalum. The shipment is considerably larger than Venezuela’s last reported US-bound aluminum cargo. The country last shipped primary...
The London Metal Exchange (LME) aluminium price chart continued to slip across the pricing and contract segments on the October 5 trading session, reporting declines over the October 2 close . Meanwhile, the LME three-month Asian Reference Price benchmark alone reported a gain of nearly one per cent. The LME aluminium cash bid price dipped slightly by 0.1 per cent day-on-day, shifting from USD 3,109 per tonne to USD 3,106 per tonne. The offer price contracted from USD 3,109.5 per tonne to USD 3,107 per tonne, reflecting an even more modest 0.08 per cent decline. Explore- Most comprehensive and forward-looking industry-focused report — Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook The LME aluminium three-month bid and offer prices faltered by...
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Judge Tony Couch has reserved his decision in the NZ Aluminium Smelters employment court appeal. Yesterday, Tiwai Pt aluminum smelter management said the company would have to pay workers almost $20 million if an Employment Relations Authority ruling is upheld. In May, 64 Engineering, Printing and Manufacturing Union members working at the Tiwai Point aluminium smelter won an Employment Relations Authority case they took against New Zealand Aluminium Smelters. NZ Aluminium Smelters appealed the decision in the employment court this week. The dispute centres on the interpretation of lieu days after workers at the plant changed from eight-hour shifts to 12-hour shifts in the 1990s. The company continued to provide the 12-hour shift workers with an additional eight hours of paid leave in...
The Indonesian government today formally took over as owner of aluminium producer PT Indonesia Asahan Aluminium (Inalum), Southeast Asia’s only aluminum smelter, ending the 30-year management by a majority-Japanese consortium. Indonesia and Japan signed the Asahan Project takeover agreement at the Industry Ministry in Jakarta, on Monday, Antara news agency reported. The company’s takeover was planned to be completed on Oct. 31; but protracted negotiations had delayed the signing of the agreement. Asahan Project is an Indonesia-Japan friendship partnership that will develop a hydroelectric plant (PLTA) in Toba Samosir regency and an aluminum smelting factory in Kuala Tanjung, Batu Bara regency, North Sumatra. According to Asahan Project’s master agreement, Inalum’s operational period...
Taking weak cues from global markets, aluminium prices fell to INR 106.75 per kg in futures trading today as speculators offloaded positions. Further, sluggish demand in the domestic spot markets also weighed on the metal prices. At the Multi Commodity Exchange, aluminium for delivery in December declined by 55 paise, or 0.51%, to INR 106.75 per kg in business turnover of 153 lots. Similarly, the metal for delivery in January 2014 contracts traded lower by 50 paise, or 0.46%, to INR 108.50 per kg in 13 lots. Market analysts said the weakness in aluminium at futures trade was mostly in tandem with a downtrend in base metals at the London Metal Exchange and subdued spot demand.
The government has officially taken over PT Indonesia Asahan Aluminium (Inalum) from Nippon Asahan Aluminium Co. Ltd., ending the Japanese consortium’s 30-year contract in Southeast Asia’s largest aluminium smelter. With the takeover, the government aims to double the company’s output capacity. The decision to terminate the contract was made in 2010. But, prolonged negotiations over the compensation value for the Japanese investors were only settled in November, in which it was decided that they would receive US$556.7 million. “Inalum is currently the biggest producer in Southeast Asia. After the takeover, we must not worsen [its performance],” Industry Minister MS Hidayat said after a ceremony marking the takeover. The government has allocated Rp 2 trillion from the 2012 state budget and...
Norsk Hydro has decided to “increase capital expenditure by almost 40 percent next year to modernise equipment in expectation of accelerating global demand over the next decade,” reports Reuters. “The company’s optimism was tinted with caution, however, as it introduced the latest in a string of cost-cutting programmes after the global economic downturn hit industries from automakers to builders and brought a steady decline in benchmark aluminium prices in recent years.” “Norsk Hydro expects an improving demand outlook to take hold next year and said it would lift capital expenditure to 4.3 billion crowns ($700 million) from an estimated 3.1 billion crowns in 2013.” “‘World aluminium demand outside China is estimated to grow 2 percent in 2013 and 2-4 percent in 2014,’ the company said in...
Hindalco Industries (Hindalco) aims to produce 300-350kt of alumina from Utkal refinery (1.5mtpa alumina refinery) in FY2014 and 1mn tonne in FY2015. In case of Mahan smelter (359ktpa aluminium smelter), the company aims to produce 50-60kt in FY2014 and over 200kt of aluminium in FY2015. The company expects the cost of production of alumina at the Utkal refinery to be at US$180/tonne when the plant ramps up at near-full utilization levels. The grade of bauxite available for the Utkal refinery is 42% alumina content and it has low silica content, thus requiring lower consumption of caustic soda compared to its existing alumina operations. The cost of aluminium production from Mahan smelter is estimated to be US$1,600/tonne without using captive coal. The company stated it is likely to use...
Aluminium Bahrain (Alba) reaffirmed its commitment towards the responsible use of natural resources for the sustained economic growth of the country through the platinum sponsorship of BD7,500 for the 1st Energy Management Conference & Exhibition 2013 beginning today. The three-day event will be held under the patronage of Finance Minister and Minister in charge of Oil & Gas Affairs Shaikh Ahmed bin Mohammed Al Khalifa. It is being organised by Bahrain Society of Engineers (BSE) the Gulf Convention Centre, Gulf Hotel. Alba chief financial officer Ali Al Baqali presented the cheque to BSE president Abdulmajeed Al Qassab in the presence of Alba power and utilities director Amin Sultan, acting director for administration Abdul Rahman Janahi and acting manager for human resources and public...
Rio Tinto is planning to invest US$2.7 billion to complete the modernization of its aluminium smelter in Kitimat, B.C., while the company is cutting back on capital spending at projects around the world. “For nearly 60 years, the smelter has been a major impetus for the economic development of northwest British Columbia,” said Jean Simon, president, primary metal, Rio Tinto Alcan. “We are very proud to announce this US$2.7 billion investment to complete the modernization project. This is one of the largest private investments in B.C.’s history and it will ensure the sustainability of the aluminium business in Kitimat for decades to come.” Rio Tinto announced on Dec. 1 that the US$3.3 billion Kitimat modernization project will be completed in 2014. The project involves the demolition of...
Norsk Hydro, one of the world's largest producers of aluminium, will increase capital expenditure by almost 40 percent next year to modernise equipment in expectation of accelerating global demand over the next decade. The company's optimism was tinted with caution, however, as it introduced the latest in a string of cost-cutting programmes after the global economic downturn hit industries from automakers to builders and brought a steady decline in benchmark aluminium prices in recent years. Norsk Hydro expects an improving demand outlook to take hold next year and said it would lift capital expenditure to 4.3 billion crowns ($700 million) from an estimated 3.1 billion crowns in 2013. "World aluminium demand outside China is estimated to grow 2 percent in 2013 and 2-4 percent in 2014,"...
The London Metal Exchange asked a panel of U.S. judges on Thursday to assign a federal court in Manhattan to handle a series of antitrust lawsuits that allege the world's largest metal exchange, two of Wall Street's biggest banks and big commodity merchants conspired to raise the price of aluminum. The venue of lawsuits is sometimes critically important because of the varying levels of experience among judges in different cities, as well as other factors such as convenience for lawyers and witnesses. LME, which is owned by Hong Kong Exchanges and Clearing Ltd , and other defendants including Goldman Sachs Group Inc, JPMorgan Chase & Co and merchants Glencore Xstrata are fighting allegations in about 30 lawsuits that they manipulated the warehousing of aluminum in order to lift the price...
Midwest aluminium premiums have increased as spot availability has tightened at the same time that wide spreads on the London Metal Exchange continue to support financing deals. Metal Bulletin sister title AMM’s spot P1020 aluminium premium increased to a range of 10.75 to 11 cents per pound on Wednesday December 4 from 10 to 10.25 cents previously. While some sources predicted that premiums could head even higher, others cautioned that the upward move could be short-lived, given new LME warehouse rules that are scheduled to take effect next year. Rio Tinto Alcan Inc chief executive officer Jacynthe Côté said earlier this week that the rule change could push premiums downward. In the meantime, premiums are supported by supply/demand fundamentals as well as financing deals, producers and...
Hydro's Capital Markets Day 2013 is focused on the improvement efforts being implemented throughout the value chain, encompassing all business areas, plants and units in an all-Hydro drive to continuously lift the bar. Hydro's main ambitions are to: • Deliver on dedicated improvement programs in all business areas • Capitalize on attractive positions across the value chain • Maintain a strong financial position • Lift unsatisfactory returns to a competitive level Improvement programs are now being implemented in all business areas, tailored to the specifics within each step of the value chain from bauxite to rolled products and based on well-established production systems for each area. In line with the company culture of continuous improvements, Primary Metal has established a new...
Retaining Europe's industries offers the greatest potential for growth, jobs and sustainability, argues Gerd Götz. Despite growing demand across key markets and continuous environmental leadership, the EU's aluminium production base is on a sharp decline. The freshly released 2012 sustainable development indicators (SDI) of the aluminium industry in Europe are mirroring the undesired reality that the sum of all EU regulations is heavily impacting the competitiveness of this sector. During a European Aluminium Association (EAA) conference on November 27, participants called for urgent measures to turn around the downward spiral. Europe's aluminium primary production capacity has declined by over a third since 2007, semi-fabrication has not yet recovered to pre-crisis levels, and the (world...
LME aluminium is approaching support at $1,732 per tonne and may start a rebound from around this level. Support is provided by the 100 percent Fibonacci projection level of a downward wave C and is blocking the way towards the 123.6 percent projection level at $1,691. There has not been any decent rebound against the wave C, as a result, a rebound may be triggered around $1,732. But a drop to $1,725 may signal a break below support at $1,732. Note: There will be no reports from Dec. 5 to Dec. 20. Reports will resume on Dec. 23. 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...
United Co Rusal plans to step up sales of aluminium to the South American market, sources told Metal Bulletin. Its move reflects efforts by the Russian company to move on from sales into Brazil’s spot market to deals signed on annual contracts. “There should be an increase [in Brazil’s aluminium imports], as the company [Rusal] is penetrating this market. Some trials in the spot market have been done so far, but the idea is to start trading large volumes,” a source close to the company told Metal Bulletin. “South America is to become a very important market for Rusal in the next few years, as the company plans to set annual contracts,” the source said. Brazil’s aluminium imports rose by 61.2% year-on-year in October, mainly as a result of the year’s first shipments from Russia. Brazil...
Russian billionaire Oleg Deripaska's Central European Aluminum Company (CEAC) is suing Montenegro for 100 million euros ($140 million) over the failure of its aluminum plant there. A statement issued in Cyprus, where the Russian company has its headquarters, CEAC said the case will heard in Vienna. The statement said Montenegro violated a 2010 settlement agreement, leading to the plant going bankrupt. In a separate statement, Montenegro's government denied any wrongdoing. Deripaska's company in 2005 bought a 58.7 percent stake in Kombinat Aluminijuma Podgorica (KAP), which in its heyday in the late 1970s had employed 5,000 people. In a debt for equity deal, the Balkan country's government took back half of that stake in 2009 and the arrangement was sealed in 2010. Deripaska is also...
Bill Whelan, the Michigan-based mastermind behind the creation and sale of one of the world's biggest metals warehousing firms, is making a comeback, seeking to rejoin the London Metal Exchange network as new rules roil the storage business. Three years after leading the sale of Detroit-based Metro International Trade Services to Goldman Sachs Group Inc for some $550 million, Whelan has applied for LME approval to store aluminium and other base metals at his warehouse and distribution company WF Whelan Co in Detroit, he says. He expects to get the go-ahead in the next month or so after completing a 1,200-foot rail spur that links his warehouses to the rail network that transports raw materials and automotive products across the Midwest, he said. Rail access is required for LME approval....
Buyers and sellers involved in the negotiations for Japanese aluminum import contracts for the first quarter of 2014 are moving closer in their premium ideas, sources said Wednesday. One Japanese trader said he had bid $249/mt plus London Metal Exchange cash CIF Japan to overseas producers who have offered $255-256/mt and $270/mt plus LME cash CIF Japan. The bids were for premiums over the LME cash prices for P1020A 99.7%-grade primary aluminum ingot, sows and T-bars to be exported to main Japanese ports. The negotiations are in the third week now. Two Japanese consumers said they had proposed rollover of Q4 2013 premiums of $245-246/mt plus LME cash CIF to Q1 2014. One producer source said he was seeing settlements in the range of $253-255/mt plus LME cash CIF, but has not closed any...
