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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Norsk Hydro ASA has signed a USD 1,700 million syndicated revolving multi-currency credit facility with a syndicate of 13 international banks. The facility is for general corporate purposes. Since 2007, Hydro had a USD 1,700 million revolving credit facility with maturity in July 2014. This facility has remained undrawn. Hydro has now established a new credit facility, replacing the facility which was to mature in July 2014. The credit facility has a five-year tenor, and includes two one-year extension options. “This is a confirmation of our core banks’ strong support to Hydro,” executive vice president and CFO Eivind Kallevik says. “The smooth process and the terms concluded reflect trust built over many years, and is a great achievement for the company,” he says. Commerzbank,...
In trading on Friday, shares of Aluminum Corp of China Ltd. crossed above their 200 day moving average of $9.30, changing hands as high as $9.34 per share. Aluminum Corp of China Ltd. shares are currently trading up about 5.1% on the day. ACH’s low point in its 52 week range is $7.25 per share, with $13.29 as the 52 week high point — that compares with a last trade of $9.30. ACH makes up 1.13% of the ETF (LGEM)
The 17th International Arab Aluminium Conference and Exhibition ("ARABAL 2013"), held in Abu Dhabi from 5 to 7 November this year, provided ample opportunity for Dubai Aluminium (" DUBAL ") to demonstrate the company's extensive knowledge and expertise in the primary aluminium smelting industry. Since commissioning in 1979, the state-owned corporation has grown its operations through sequential expansion projects and currently operates one of the world's largest single-site primary aluminium smelters, with a production capacity in excess of one million tonnes of hot metal per year. Attesting to the company's industry experience, amassed over almost 35 years, DUBAL 's involvement at ARABAL 2013 spanned multiple levels, giving good exposure to the brand throughout the event's duration: • Dr...
Gouda Refractories has officially brought its third tunnel kiln and production facility into service. With the accomplishment of this step, the production capacity will be increased by 60%. This expansion, with a 125-metre long tunnel kiln, is the equivalent to building a new factory. The third tunnel kiln has an impact on the production process, necessitating the expansion and up scaling of the entire manufacturing process. The project was kicked off early 2011, supported by the parent company Andus Group BV, with the purchase and development of an adjacent 2.3 hectare lot on the Kromme Gouwe industrial estate in Gouda. Bringing the third tunnel kiln into service marks the end of a three-year countercyclical and intensive investment project.
The London Metal Exchange has listed Owensboro, in Kentucky USA, and Moerdijk, in the Netherlands, as good delivery points for primary aluminium, according to notice sent by the exchange to its members. Owensboro and Moerdijk will become active as a good delivery points for primary aluminium three months after the approval of the first warehouse company for primary aluminium in that location, the notice said. Moerdijk, located in the south of the Netherlands, is about 100 kilometres from Vlissingen and about 35 kilometres from Rotterdam. Warehouses in Vlissingen and USA’s Detroit account for 65% of the LME aluminium stocks, with queues of up to 18 months at these two locations. The new LME rules aim to cut down the queues at warehouses to 50 calendar days down from a prior proposal of 100...
India’s National Aluminium Co (Nalco) sold 6,000 tonnes of aluminium ingot in a tender at a premium of $229 per tonne over the LME cash price on a cif Singapore basis, according to two trader sources familiar with the deal. The company’s tender was for delivery of 1,500 tonnes per month from November to April, the sources said. Nalco’s last tender in October was for 3,000 tonnes of the light metal at premium of $227 per tonne.
Closing at $1,746 per metric ton on the weekly Aluminum MMI®, the cash price of primary aluminum finished as the week’s biggest mover with a 2.2 percent decline on the LME. Following a 2.0 percent drop on the LME, the aluminum 3-month price finished the week at $1,794 per metric ton. The Indian aluminum cash price rose 0.2 percent after falling 1.3 percent during the previous week. Chinese aluminum prices were mixed for the week. Chinese aluminum scrap saw a 0.5 percent decline over the past week. The price of Chinese aluminum billet declined 0.3 percent over the past week. With a 0.3 percent decrease, the cash price of Chinese aluminum closed the week. Prices for Korean 3003 coil premium over 1050 sheet remained constant. The week finished with no movement for Korean 5052 coil premium...
A supply glut amid continued sluggishness in the global economy continues to depress prices of aluminum. Even production cuts by major global companies have failed to prop up aluminum prices, with a dip in automobile purchases primarily responsible for capping demand worldwide. Any recovery will hinge on an upswing in the global economy's fortunes, according to the thematic research report of Motilal Oswal Commodity. According to the study, supply side remains more problematic in our view. Despite the curtailment announcements, we believe further cuts are needed internally in China and in the rest of the world, with new capacity additions and old smelters being given a new lease of life, outweighing the capacity closures announced. The report states: ""With a change in the rules on LME...
Aluminium ingot inventories at three major Japanese ports rose about 8% month-on-month in October, trading house Marubeni Corp’s data showed on Wednesday November 13. The total inventories at Osaka, Yokohama and Nagoya stood at 261,600 tonnes in October, up from 242,300 tonnes in September. Inventories were up 1.5% year-on-year. “Stock volumes at Nagoya increased a little,” a trader source from Tokyo said. “[More] cargoes arrived at Nagoya than usual and delivery out from the port was less than usual,” he said, adding that the domestic and international markets for aluminium remained very quiet. Nagoya stocks rose 15.6% month-on-month in October to 135,500 tonnes. At Yokohama, total stocks rose by almost 1% in October to 110,100 tonnes while inventories at Osaka were steady at 16,000...
Alcoa, the world's leading producer of primary and transformed aluminum, was considered the most sustainable company in the sector in which it operates and in the category, 'Relationship with Suppliers' by Exame's Sustainability Guide 2013, an annual publication from Editora Abril. Considered to be one of the most relevant surveys of its type in Brazil, the Guide highlights the sustainable actions of companies. The announcement was made during a ceremony held yesterday, November 6, in the Maria Luisa and Oscar Americano Foundation in São Paulo (SP). "We're very proud to have won first place in our sector and particularly to be part of such a select group of companies for the seventh time. This result proves that even with the enormous challenges the aluminum industry has faced we keep on...
The government and Japanese shareholders of PT Indonesia Asahan Aluminium (Inalum), which operates Southeast Asia’s only aluminum smelter, have in principal agreed on a provisional price for the firm’s assets and a mechanism for ownership transfer. Coordinating Economic Minister Hatta Rajasa said Wednesday that both parties gave the nod to the US$556 million figure set as the tentative valuation of Inalum assets before an audit by independent analysts would determine the exact valuation. “If the audit finds the real value is $20 million more than or less than the provisional price, we [both parties] will settle the issue with an international arbitration body,” Hatta told reporters. “But, we believe that the value gap will not exceed the limit.” Hatta declined to specify when the audit...
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 imported 12,060 tonnes of aluminium in the month, compared with 7,477 tonnes in October 2012, according to figures from the country´s trade minister. In January-October, imports amounted to 39,031 tonnes, from 37,101 tonnes in the corresponding period last year. Russia was the main supplier of aluminium to Brazil, shipping 5,999 tonnes in the month – the first time the South American country has received Russian aluminium in 2013. The material arrived in the port of Suape, in Brazil's northeastern state of Pernambuco, and generated revenues of $11.87 million. Argentina, traditionally Brazil´s main international aluminium supplier, shipped 5,859 tonnes in...
Vale SA (VALE), the world’s biggest iron ore exporter, completed the sale of all of its 22 percent stake in aluminum-maker Norsk Hydro ASA (NHY) for $1.82 billion after an over-allotment option was exercised. Vale sold the additional 40.7 million Hydro shares for 25 kroner ($4.04) each, the Rio de Janeiro-based company said today in a statement. It sold 407.1 million shares for the same price in the Oslo-based company on Nov. 12. Gross cash proceeds from the offering are 11.2 billion kroner, equivalent to about $1.82 billion, Vale said. The miner is selling assets, putting projects on hold and focusing on its more profitable iron-ore business in a bid to recover profit margins after commodity prices fell. In September, it sold stakes in a cargo unit for about 2.7 billion reais ($1.2...
UC RUSAL, a leading, global aluminium producer, announces a plan to modernize the SUAL-Powder Metallurgy (Shelekhov, Russia) plant. The total project investment is estimated to be EUR 4 mln. The plant is acquiring a classifier mill HOSOKAWA Alpine (Germany). The installation of the new equipment will result in an increase in production capacity by 30% as well as launching a new range of ultra-high quality aluminium powders. This material is used in construction, in particular in the production of autoclave aerocrete. The installation of the new Alpine equipment at SUAL-Powder Metallurgy is part of a broader modernization of the aluminium powder production project. As of today, assembly works are being carried out at the plant, scheduled to complete in January 2014. The new equipment will...
C.R. Laurence Co. named Gerald Hendrick president of its U.S. Aluminum Division. Hendrick will be based out of CRL-U.S. Aluminum's central Waxahachie, Texas, service center and will help bolster operational growth initiatives, as well as oversee the division’s sales and estimating teams, according to a release. With 30 years of industry experience, Hendrick has held senior management positions with Assa Abloy, and most recently, Dorma USA, where he acted as president of the Entrance Systems Division and senior vice president of sales. “Gerald’s extensive experience and success in the architectural glass and glazing industry, paired with his deep understanding of various product lines in our own portfolio, will help to further establish CRL-U.S. Aluminum," said Lloyd Talbert, president of...
A bearish target at $1,775.50 per tonne has been established for LME aluminium, as it has broken below a support at $1,806 per tonne. The support was provided by the 76.4 percent Fibonacci retracement on the rise from the Sept. 17 low of $1,775.50 to the Oct. 29 high of $1,905.75. There might not be any other support until aluminium reaches $1,775.50. A sudden surge above $1,810 will signal a false break below $1,806 and the completion of the wave 5. A bullish target at $1,825, the 61.8 percent retracement, will then be established. 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...
Brazilian aluminium exports fell sharply year-on-year in October after increased domestic demand and fewer volumes sent to Europe. Volumes sent abroad totalled 18,802 tonnes, from 43,024 tonnes in October 2012. Revenues in the month totalled $35.36 million, compared with $82.64 million a year ago. Exports from January to October amounted to 347,015 tonnes, down 16.1% year-on-year. Japan was the main destination for Brazilian aluminium with 18,094 tonnes, a 2.5% increase year-on-year. Additional material was sent to South Korea (402 tonnes), Venezuela (202 tonnes), Colombia (76 tonnes) and Mexico (25 tonnes). No volumes were sent to traditional customers such as Switzerland and the Netherlands, which imported 7,807 tonnes and 5,005 tonnes, respectively, in October 2012.
The 17th Arab International Aluminium Conference (ARABAL) 2013 concluded on 7th Nov after attracting more than 500 delegates to the beautiful St Regis Hotel in Abu Dhabi, UAE. Aluminium International Today was in attendance. The first day included a pre-conference workshop, which highlighted how DUBAL’s proprietary DX+ Technology builds upon the strength and success of its earlier DX Technology, offering smelters greater operating efficiencies at lower capital costs. This was followed by a site tour of the EMAL smelter, which more than 100 delegates attended. The tour included a drive by tour of phase I and the newly opened phase II, the power plant, reduction facilities, central maintenance services and the port area with a special stop off at EMAL’s Casthouse for a conversation with...
