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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Mike Baird is dreaming if he expects a trouble-free, $2.1 billion sale of Macquarie Generation when 23 per cent of its revenue could go up in smoke. In opposing a renegotiation of the steep rise in MacGen's long-term power contract with its biggest customer, the Rio Tinto-controlled Tomago aluminium smelter, the NSW Treasurer may be on safe ground in a strict legal sense. But if there's one thing that the three shortlisted MacGen bidders need, it's a bit of clarity on the smelter's future. Holding the line on the power contract will depress the MacGen sale price because all three bidders will discount the value of the contract between the generator and its most important customer. The alternative is to help create some certainty around Tomago's future by cutting the business some slack,...
Aluminium companies from the US Midwest to the East Coast were hit by power outages resulting from powerful storms that hit the country earlier in the week. Netherlands-based aluminium products manufacturer Constellium experienced three power outages at its plants in Novi and Van Buren during the storms, a spokeswoman for the company said in a November 20 e-mail to Metal Bulletin sister publication AMM. Both plants make automotive structures, according to Constellium’s website. Roughly 400 miles east, Oslo, Norway-based Sapa Group’s extrusion plant in Mountain Top, suffered a 15-hour power outage but no other disturbances, a company spokeswoman said in an e-mail to AMM. Deadly tornadoes and thunderstorms pounded the US Midwest on November 17. Metals companies were largely spared damage,...
Century Aluminum Sebree LLC, a wholly owned subsidiary of Century Aluminum Company, Kenergy Corp. and Big Rivers Electric Corporation today announced that they have finalized and filed with the Kentucky Public Service Commission definitive agreements among the parties for a new power arrangement for the Sebree aluminum smelter, located in Henderson County, KY. These agreements and the filing are a first step in finalizing the arrangement. The agreement is subject to approvals from various third parties, including the Kentucky Public Service Commission and the USDA Rural Utilities Service. The parties will continue to move as expeditiously as possible to finalize the agreement in advance of the expiration of the current power contract on January 31, 2014. The Sebree smelter has an annual...
Highly-regarded racing sponsor, Dubai Aluminium (DUBAL), will continue their long association with horse racing in the UAE when they sponsor Thursday evening’s six-race card. The primary aluminium producer, an industry leader in Dubai, has been a prized supporter of racing since 2005 and traditionally lend their name to one race meeting at Meydan and one during the Dubai World Cup Carnival every season. This week DUBAL sponsors Meydan’s first Conditions race of the new term, the DUBAL Excellence Trophy, which carries a lucrative purse of Dh126,000. A field of seven led by Godolphin Mile (G2) runner-up Haatheq will contest the 1800m event. In addition there is a valuable support race on the same card, the DUBAL Potlines Trophy handicap worth Dh110,000. Commenting on DUBAL’s partnership...
Citigroup Inc. reaffirmed their neutral rating on shares of Noranda Aluminum Holding Corp. in a research note issued to investors on Monday, StockRatingsNetwork.com reports. The firm currently has a $3.20 price target on the stock, down from their previous price target of $3.50. “Based on our 2014E and a 8.0x multiple we apply a 60% weighting on our $2.00/sh EV/EBITDA valuation and a 40% weighting on our DCF derived valuation of $5.10/sh to arrive at our reduced target price of $3.20/sh on lowered estimates. Based on our revised commodity price forecasts, we have lowered our EPS estimates for ’13 to -$0.67 from -$0.62. No change to our Neutral/High Risk (2H) rating.,” Citigroup Inc.’s analyst wrote. NOR has been the subject of a number of other recent research reports. Analysts at UBS AG...
Daily average primary aluminium output excluding China fell to 65,300 tonnes in October from a revised 66,600 tonnes in September, data from the International Aluminium Institute (IAI) showed on Wednesday. Global production for October excluding China was 2.02 million tonnes, up from 1.99 million tonnes recorded in September. The October total is higher because of the extra day in that month. In China, daily average output rose to 62,900 tonnes in October from 61,900 tonnes in the previous month. Total Chinese production in October was 1.9 million tonnes from 1.8 million tonnes in September, the IAI said.
China’s aluminium capacity would exceed 30 million tpy by the year’s end and reach over 34 million tpy in 2014, helped by declines in cash costs, Shanghai Metals Market said at its China Metal Summit. The country would have a capacity of 30.3 million tpy to produce the lightweight metal by the end of this year, with actual output estimated at 24.9 million tonnes, SMM’s aluminium analyst Zhang Chenguang said at the summit in Shanghai on Wednesday. China’s aluminium capacity would grow by another 12.8% year-on-year to 34.2 million tpy next year and production by 13.8% to 28.3 million tonnes in 2014, he said. The growth was helped by sharp declines in cash costs as most Chinese aluminium producers use cash basis accounting nowadays. Average cash loss ratio has dwindled to 17% at present,...
Aluminium Bahrain B.S.C. (Alba) boosted efficiency levels at the plant with a recent upgrade to the new resistor preheating method for Pot Lines 1 - 3. Using principles of lean management and operational efficiency, this new technique is cost and energy efficient as compared to the earlier method. The resistor preheating method is not only simpler and safer during operational practice but it also contributes towards saving energy as it eliminates the use of external gas or fuel. Further, it enables uniform heating of the cathode and better backing of the ramming paste, as well as reduces maintenance works. And most crucially, it ensures longer pot life due to limited cathode surface burn-off. This accomplishment was achieved through active inter-departmental collaborations under the...
Dubai Aluminium Company (DUBAL), which powers one of the world's largest aluminium smelters with a 2,350 MW power station, has placed the first order in the Middle East for innovative, high-performance platforms by GE that enhance the flexibility, performance and value of its existing gas turbine assets. This was announced at GE's Powering Efficiency Forum, a thought leadership summit focused on meeting future energy efficiency needs in the Middle East. Government officials, power generation company representatives and industry leaders attended the event. At the Powering Efficiency Forum, GE announced the expansion of its high-performance Advanced Gas Path (AGP) solution for its 9E and 9F-3 gas turbine customers in the Middle East. Proven to deliver industry-leading upgrade performance,...
Aluminium prices edged up by 0.18% to INR 108.90 per kg in futures trade today as participants enlarged positions, supported by a firming overseas trend. Strong demand in the spot markets also influenced metal prices. At the Multi Commodity Exchange, aluminium for delivery in November inched up by 20 paise, or 0.18%, to INR 108.90 per kg in business turnover of 53 lots. The metal for delivery in December traded higher by a similar margin at INR 110.70 per kg in a business volume of 16 lots. Marketmen said apart from increased domestic demand, a firming trend in the base metals overseas, helped aluminium futures to trade higher.
The aluminium industry is “vital to the growth” of the UK manufacturing sector, says Dr. Alan Arthur, Marketing and Communications Executive at Aluminium Federation Ltd (ALFED). Speaking at the Advanced Engineering UK group of events, Arthur said: “Often we understate the value of engineering, manufacturing and certainly aluminium in the UK”. Yet, he said, “the aluminium industry has a £3.2 billion annual turnover and employs directly around 20,000 people”, demonstrating how vital the aluminium industry is to the UK economy. This employment figure rises dramatically when the number of people who support the aluminium industry is included, and "you begin to see how large the aluminium industry is", said Arthur. In regards to the supply chain of the aluminium industry, Arthur said: “the UK...
US service centers last month recorded their strongest aluminium shipments since May last year, boosting expectations for 2014 even as some market sources questioned the sustainability of the demand uptick. Improved activity was reported in markets as diverse as aerospace, automotive and commercial construction and in products ranging from extrusions to sheet and plate and bar and tube. “If you would have asked me four months ago, I would have said I was disappointed with 2013. [...] But it’s turning out to be the opposite of 2012,” one service center source said. Demand in 2012 was strong at the beginning of the year but slowed in the second half, while 2013 has seen the trend reverse, he said, echoing the sentiment of others. US service centers’ aluminium shipments totalled 135,800 tons...
Alro SA,one of the largest aluminium producers in Central and Eastern Europe, announces today its financial results, in accordance with the International Financial Reporting Standards (IFRS), for the nine months ended 30 September 2013.The Company reported in 9M 2013 a net adjusted loss* of RON 21 million, compared to a net adjusted profit of RON 83 million (restated), in 9M 2012. The turnover for first nine months in 2013 was of RON 1.55 billion, compared to RON 1.74 billion, in 9M 2012. “The financial results continue to be significantly impacted by the continuous downturn of the international aluminium market, and by the local eco-taxes”, said Marian Nastase, President of the Board. “Although we took all the necessary measures to increase the efficiency of the operations, the mentioned...
Malaysian aluminium producer Press Metal Berhad’s 120,000-tpy Mukah smelter has resumed commercial operations, the company announced. Press Metal Sarawak Sdn Bhd (PMS), a subsidiary of Press Metal Berhad, had declared force majeure after it shut its primary aluminium production lines at the Mukah plant in the state of Sarawak on June 27 due to a six-hour power outage. “PMS expects to achieve full annual production capacity of 120,000 tonnes within the next three months,” the company said in an announcement to the Malaysian bourse Bursa Malaysia. In July, a company official had said the plant may take up to six months to restart. “[...] We were unable to resume metal production as solidification had taken place in the reduction cells of the potline,” Press Metal had said in July. Earlier...
The Hindalco Industries' subsidiary, Novelis Q2FY14 adjusted Ebitda (earnings before interest, taxes, depreciation and amortisation) of $ 228 million as well as volumes and Ebitda/tonne were on expected lines. Novelis also implicitly guided for H2FY14 volume and Ebitda growth of 10% year-on-year and 15% y-o-y respectively. Standalone Q2FY14 Ebitda at R5.4 billion was about 9% above estimate. Copper segment Ebit (earnings before interest and tax) of R2.4 billion was close to a record high while aluminium Ebit of R1.7 billion was disappointing, marred by forex loss and negative Ebit from new projects. Copper Ebit surprises positively: Standalone Ebitda at R5.4 billion (up about 5% y-o-y and about 13% q-o-q) was nearly 9% above our estimate with revenue of R63 billion (up 2% y-o-y and 8%...
Aluminium prices fell marginally by 0.05% to INR 110.50 per kg in futures trading today as speculators offloaded their positions, tracking a weak trend in the global markets amid subdued domestic demand. At the Multi Commodity Exchange, aluminium for delivery in November eased by five paise, or 0.05%, to INR 110.50 per kg in business turnover of 103 lots. Similarly, the metal for delivery in December traded lower by 5 paise, or 0.04%, to INR 112.35 per kg in six lots. Market analysts said speculators offloaded their positions in tandem with a weak trend in base metals at the London Metal Exchange that led to a fall in aluminium futures prices.
The LME has extended its list of good delivery points for its primary aluminium contract, approving new locations in the US and Europe. Owensboro, Kentucky and Moerdijk in the Netherlands have both been approved as good delivery points for primary aluminium, the LME said in notices to members. Both will become active as good delivery points three months after the approval of the first warehouse company for primary aluminium in that location. Moerdijk will be the LME's third Dutch delivery point for primary aluminium, joining Rotterdam and Vlissingen. In the US, the exchange currently has good delivery locations for primary aluminium in Baltimore, Chicago, Detroit, Long Beach, Los Angeles, Mobile, New Orleans, St. Louis and Toledo. Owensboro is already an approved delivery location for the...
Aluminium prices have not managed to hold on to the gains they made early on in the December quarter, and have fallen by 5.6% to $1,745 a tonne from the high seen in October. That fall, though not alarming, coincides with an uncertain time for metal prices as the London Metal Exchange (LME) is moving ahead with a proposed reform of its warehousing rules. LME’s new warehousing rules—set to be implemented from 1 April—are designed to tackle lengthy metal delivery queues, which are blamed for high metal premiums payable by buyers. The new rules will compel warehouses with over a 50-day delivery queue to deliver a certain amount of metal determined by a formula. These changes are expected to affect aluminium in particular, where large inventories have been built up while metal premiums, too,...
