Asian aluminium premiums are facing more pressure ahead of Q4 talks. CRU’s Asia CIF aluminium premium is now USD 202 per tonne, well below the USD 395 per tonne Main Japanese Port (MJP) Q3 benchmark. MJP Q4 offers have also dropped sharply. They fell from USD 325 per tonne in early September to USD 245–260 per tonne as the new quarter approaches. This shows weaker sentiment in the market. Aluminium premiums are under pressure across Asia, especially in Korea, Malaysia and Taiwan. These markets are more exposed to spot price changes, so premiums can move quickly when supply or demand changes. Explore the production, demand and consumption forecasts of bauxite and alumina in our report: " Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook " Premiums...
Rio Tinto is connecting its Kitimat aluminum production with a new British Columbia-based supply chain through a long-term agreement with RevoCast Aluminum Billets Ltd., under which aluminum from BC Works will be combined with recycled aluminum to produce billet for North American manufacturers. Announced on September 28, the agreement gives Rio Tinto exclusive marketing rights for aluminum billet produced at RevoCast’s newly commissioned Langley casting facility. The operation combines primary aluminum from BC Works with recycled aluminum processed by RevoCast. Explore the production, demand and consumption forecasts of bauxite and alumina in our report: “ Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook ” The deal, however, will not change...
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All-in aluminium prices will struggle despite good demand given persistent overproduction, according to a new report by Fitch Ratings. It says deconsolidation in the industry, producers moving down the cost curve, and substantial barriers to exit have worked to keep production high. Excess production has been held in inventory driven by financing transactions. And Fith says that while the London Metal Exchange (LME) rules change may result in LME prices being more closely aligned to the physical market, the change is not expected to alter the physical market fundamentals. Fitch expects aluminium producers to curtail production further and continue to face challenges but benefit from the current dearth of new investment longer term.
November 2013 marks a milestone in the history of Indonesia’s resources industry as the Indonesian government is finalizing the takeover of Inalum, the only aluminum smelter that exists both in Indonesia and Southeast Asia, from its long-time partner, Nippon Asahan Aluminum (NAA). Producing hundreds of thousand tons of ready-to-use aluminum metal, Inalum could be the key for Indonesia not only to fulfill its demand for aluminum but also to become an aluminum-exporting country, as all added-value goes back to the national economy. Although negotiations have been tough, reflecting the unwillingness of NAA to give Indonesia full access to its lucrative investment, soon Inalum will be 100 percent Indonesia’s. However, there is still a lot of work to be done in other cases. I would say that...
There is clearly a disconnect between the expectations of sellers and buyers in the current negotiations between Japanese buyers and Western smelters, including UC Rusal, Rio Tinto plc, Alcoa Inc. and BHP Billiton, expected to start this week. Meetings are due to take place to set the first quarter 2014 physical delivery premiums for aluminum contracts in Asia’s biggest import market, Japan. Smelters are bolstered by Prime Minister Shinzo Abe and the Bank of Japan’s record stimulus measures, which have spurred rolled aluminum output for three months in a row. President Abe’s plan to raise the sales tax in April is also boosting short-term demand for household goods, autos and construction. Smelters are encouraged no doubt by the partial shutdown of Saudi Arabia’s Ma’aden smelter and the...
National Aluminium Company Limited (NALCO), the Navratna PSU and India’s leading manufacturer-exporter of alumina and aluminium, has bagged the EEPC (Engineering Export Promotion Council, Eastern Region)’s Gold Trophy, as Top Exporter in the Large Enterprise Category, for its outstanding export performance during the year 2011-12. On behalf of the company, Shri N. Pandab, Regional Manager (Eastern Region) received the award from Shri Ravi Kapoor, Joint Secretary, Ministry of Commerce, Govt. of India, at the 30th Regional Award Presentation Ceremony, organized by EEPC India (Eastern Region) at Kolkata on November 22. During the financial year 2011-12, NALCO has achieved sales turnover of Rs.6927 crore, including the export earnings of Rs.2569 crore. It may be mentioned here that NALCO...
BNZ Materials, Inc. introduces Marinite CF, a carbon reinforced non-wetting calcium silicate insulating board that is used within the aluminum industry for transition plates and billet casting. Manufactured with today's modern casting technology in mind, Marinite CF transition plates have been proven to last considerably longer than any comparable product on the market. BNZ's precision fabricated parts offer low shrinkage, low absorption, longer life and an exceptionally clean metal surface. In terms of producing a high-quality ingot, it's very important to choose a high quality refractory as well, something that is effective for the billet casting process. Studies have reported that Marinite CF has outperformed their competition exponentially. After putting Marinite CF in use, an...
Aluminium steadied on Tuesday, after touching four-and-a-half-month lows the previous day, as the dollar fell, but analysts expected more losses due to an overhang of inventories and to speculators adding short positions. Relative-value trades have been popular this year, including shorting aluminium and going long on copper, analyst Robin Bhar at Societe Generale said. "From a tactical point of view, certainly for the year-end, going long copper and shorting aluminium is paying dividends. It's definitely a trade that is working," he said. In the last week to Monday, copper gained about 2 percent, while aluminium shed around 1 percent. "That could be a reason why we are seeing copper and aluminium going their own ways. Some of those trades are being put on because copper hasn't gone into...
Alcoa Inc., the largest U.S. aluminum maker, climbed to the highest in more than two weeks after Goldman Sachs upgraded the stock and raised its price target. The shares rose 3.7 percent to $9.58 at 1:23 p.m. in New York, after reaching $9.75, the highest intraday price since Nov. 6. Goldman Sachs analyst Sal Tharani lifted the recommendation on Alcoa to "buy" from "neutral", and boosted the price target to $11 from $8. The investment bank cited strong growth from the company's high-margin downstream business and its continued transition to a mainly downstream business. "We see a long-term value opportunity in Alcoa as the market begins to value Alcoa as a leading downstream aluminum producer with an improving cost structure on the upstream, providing upside irrespective of continued...
Aluminium futures prices fell by 0.41% to INR110.65 per kg today as speculators offloaded positions driven by weak global trend. At the Multi Commodity Exchange, aluminium for delivery in December declined by 45 paise, or 0.41%, to INR 110.65 per kg in business turnover of 13 lots. Similarly, the metal for delivery in November traded lower by 40 paise, or 0.37%, to INR 108.80 per kg in 278 lots. Market analysts said speculators offloaded positions in tandem with a weak global trend on concern that the Federal Reserve may start reducing stimulus in coming months amid improving US economic data, reducing the demand outlook for the metals, mainly led to the decline in aluminium futures prices.
Alcoa, a leading supplier of aluminium powder, has set its business targets for 2016, with plans to grow its value-add businesses and lower the cost structure of its commodity business. For the 2010 to 2013 period, Alcoa said that it is on track to generate an additional combined US$1.8 billion in revenue. The company also reported a strengthened commodity business, with lower cost positions in both alumina and aluminium. “Alcoa’s strategy to grow our value-add businesses while lowering the cost base of our commodity business is working,” said Alcoa Chairman and CEO, Klaus Kleinfeld. “We have made significant strides to reposition the vompany and are announcing a clear road map to further strengthen our competitive position while driving value-add growth at historic profitability levels.”...
Aluminium on the London Metal Exchange (LME) have closed out the week considerably higher, after upbeat economic data out of Europe and the US stoked hopes for improved demand for these assets. At the close of open-outcry trading on Friday, LME three-month copper was 1.1 per cent higher on the day at $US7,094 a metric ton. Aluminium also rose 1.1 per cent, to close the week at $US1,909 a ton. Data on Friday showed German business sentiment rebounded sharply in November with Ifo's business confidence index rising to 109.3, up from a revised 103.7 in October and beating forecasts of 107.7. This followed upbeat labour and factory activity reading from the US. Industrial metal prices are sensitive to such positive shifts in economic metrics as they are used in various applications throughout...
Malaysia's biggest aluminium maker, Press Metal Bhd, expects output to rise 36% to 410,000 tonnes next year after restarting one of its two plants, a company executive said today. A subsidiary of Kuala Lumpur-listed Press Metal in June reported the sudden shutdown of its 110,000 tonnes-per-year smelter in the Mukah district of eastern Sarawak state due to a six-hour power outage. The firm expects the plant to hit its full capacity within the next 3 months after restarting earlier this month, said the executive, who declined to be identified as she is not authorised to speak with media. Samalaju in Sarawak, the company's other plant, started operations in the final quarter of 2012 and is now running at its full annual capacity of 300,000 tonnes, she told Reuters. Shares of Press Metal had...
Aluminium Bahrain B.S.C. (Alba) won the Best Company for Investor Relations in Bahrain Award for the third consecutive year at the Middle East Investor Relations Society (ME-IR) Annual Conference and Awards 2013, which took place recently in Dubai at the Ritz Carlton Hotel, DIFC. The Middle East Investor Relations Society's (ME-IR Society) Annual Conference and Awards is a prestigious event and recognises the region's best performers who play a critical role in the field of investor relations. This year's survey included 138 of the largest listed companies from nine countries in the Middle East and North African Region. The company's Investor Relations Department - under the direction of Alba's Manager for Investor Relations, Eline Hilal - was recognised for its excellent investor...
It appears the 480 jobs at Century Aluminum's Sebree Smelter will not be going anywhere in the near future. Century, Big Rivers and Kenergy have reached a new power agreement for the plant. The deal is similar to the agreement the companies have concerning Century's Hawesville plant. Under that agreement, Kenergy will still provide power to Century, but Century will be allowed to purchase power using open market prices. Century had said it could not continue operating the plant under the old price structure.
Aluminum premiums in Japan probably will hold near record levels in the first quarter as Prime Minister Shinzo Abe continues economic stimulus and supply is disrupted, according to four executives who are scheduled to start price negotiations next week. Surcharges for the three months starting in January are likely to be set around this quarter’s $245 to $246 a metric ton over the London Metal Exchange cash price, said the Tokyo-based executives, who represent buyers and sellers and asked not to be identified because they aren’t authorized to speak to the media. Premiums in Asia’s biggest importer of the metal reached a record $255 in the fourth quarter of 2012. Shipments of rolled-aluminum products by Japanese fabricators expanded for a third month in September as the Bank of Japan’s...
Russia's United Company Rusal Plc , the world's biggest aluminium producer, said it had offered January-March shipments of the metal to Japanese buyers at a premium of $270 per tonne, seeking a record high. Japan is Asia's biggest importer of aluminium, and the premiums that it agrees to pay each quarter over the London Metal Exchange cash price set the benchmark for the region. "The reason why we are seeking an increase for the first quarter is because we expect tight supply in Asia and healthy demand in Southeast Asia, Japan, and Taiwan," Geoff Watson, director for Asian sales at Rusal marketing, told Reuters in a telephone interview. Recovery of spot premiums in Europe and the United States are also behind the higher offer, he said. The new offer is about 10 percent higher than the...
Chinese metals market participants gave a cautious welcome to the release of a detailed summary of the conclusions of a key policymaking conference that took place last week. Beijing will allow the market to play a decisive role in the economy, instead of a fundamental role, the government said. The market will determine the allocation of resources, including land, fuel, mines and utilities, the government said. “Any price that can be affected by the market must be left to the market,” it said. Beijing has imposed a tight timescale of reform, with “decisive outcomes” in important areas of reform expected by 2020. But electricity, gas and transportation liberalisation will lead to upward pressure on input costs for steel mills. Interest rate liberalisation could mean an increase to the...
LME aluminium is expected to retest resistance at $1,807 per tonne, as it has not completed a rebound from the Nov. 19 low of $1,776. The rebound followed the completion of a five-wave cycle that developed from the Oct. 29 high of $1,905.75. At least three waves labelled a, b, c will make up the rebound. So far, only the first wave has unfolded. The current wave b may end around $1,776, followed by the upward wave c, which will travel towards $1,807, the 23.6 percent Fibonacci retracement on the cycle. 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...
Metal-Expo’ 2013 International Industrial Exhibition was held on November 12 - 15 at the All-Russia Exhibition Center fairgrounds, Moscow to exhibit the whole range of ferrous and non-ferrous products, as well as the most state-of-the art equipment and modern technologies. More than 700 companies from 37 world countries participated in the leading event this year, from which attendance was dominated by the host country with 416 domestic companies practically from all regions of Russia, somewhat surprisingly followed by China (77 companies), and next traditionally 68 companies from Germany and 46 companies from Italy. For four working days approximately 30 - 32 thousand end-users of ferrous and non-ferrous products from various industries including construction, power and engineering...
