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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Aluminium companies should use a slow 2014 to upgrade, expand and hire new staff to gear up for boom times in the following years, an economist has said. Next year will be “off” compared with 2013 as demand slackens from the middle of 2014 into the first quarter of 2015, Alan Beaulieu, president of the Institute for Trend Research consultancy, said at a recent Metal Service Center Institute (MSCI) aluminium products division conference in Florida, USA. “If you project that your growth is going to be the same as it was 2013, you’re going to be wrong,” he added. North America will not fall into a recession, but Brazil and Europe will, Beaulieu said. “The world will soften ... and it will affect [the aluminium] industry,” he said. Beaulieu’s view contrasted with those of several aluminium...
Premier Pauline Marois said Wednesday she would enter negotiations with Alcoa Inc., which has said its three Quebec smelters would no longer be competitive if Hydro Québec raises its electricity costs by a reported 60 per cent. "We should reassure Alcoa employees, not scare them," Marois said in repsonse to opposition questions at the National Assembly. it was in response to media reports that Alcoa — which employs 3,300 at three Quebec aluminum smelters in Bécancour, Deschambeault and Baie-Comeau - could shut down in 2015. She said talks with the company are underway but she would not negotiate in public. Marois told the assembly there are "discussions at the highest level" between Alcoa and the Quebec government, led by high-ranking civil servant Jean St-Gelais, and Finance Minister...
Lack of adequate coal supply may hit Hindalco Industries’ expansion plans. In some locations, the company may have to pay $300 per tonne extra for acquiring coal from the open market resulting in erosion of its profits significantly. In some others, the company may have to re-evaluate its investment strategies. The company in August said that it plans to produce around three million tonnes of alumina and one million tonne of aluminium from 2014, as production from the company’s Mahan and Utkal Alumina will come on-stream. Analysts said the company’s production cost would escalate significantly to execute the expansion plans, as it has not yet secured captive coal. The stage II clearance of Mahan coal block is yet to come while the coal blocks in Odhisa have come under the scanner of CBI...
Aluminum advanced, trimming a weekly loss, as China’s manufacturing expanded more than estimated in October, boosting the demand outlook for the industrial metal in the world’s biggest user. The contract for delivery in three months on the London Metal Exchange rose 0.5 percent to $1,869 a metric ton by 11:02 a.m. in Tokyo. The metal fell 0.7 percent this week, after gaining for a fourth straight month in October. Copper in London rose 0.3 percent to $7,267.25 a ton. The Purchasing Managers’ Index was 51.4, the highest in 18 months, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today. The reading compares with the 51.2 median estimate in a Bloomberg News survey and 51.1 in September. A number above 50 indicates expansion. “Today’s manufacturing...
Taking weak cues from global markets, aluminium prices fell marginally by 0.13%, to Rs 113 per kg in futures trading today as speculators offloaded positions. Besides, subdued demand in the domestic spot markets also weighed on the metal prices. At the Multi Commodity Exchange, aluminium for delivery in October declined by 15 paise, or 0.13%, to Rs 113 per kg in business turnover of 345 lots. The metal for delivery in April fell by a similar margin to trade at Rs 114.50 per kg in 13 lots. Analysts said the weakness in aluminium at futures trade was mostly in tune with a downtrend in base metals at the London Metal Exchange on speculation that the US Federal Reserve will begin scaling back monetary stimulus as the economy improves.
Noranda Aluminum Holding Corporation announced today that its Board of Directors has declared a regular quarterly dividend of $0.01 per share to be paid on December 5, 2013 to shareholders of record as of November 12, 2013. "In the context of the current aluminum price environment, we have undertaken a strategic review of our capital allocation," said Layle K. "Kip" Smith, Noranda's President and Chief Executive Officer. "The conclusion of this review is a decision to retain more of our cash to make accretive investments in our business and maintain a strong balance sheet in the face of below average LME levels. Accordingly, we have decided to reduce our quarterly dividend in support of these strategic objectives and remain committed to the prudent return of capital to shareholders."...
A new venue was a hit for Aluminium Industry annual dinner, with 200 members and guests of the Aluminium Federation joining together to celebrate the achievements of the UK Aluminium industry. For the first time the Aluminium Industry Annual dinner moved out of central London, to Tortworth Court in Gloucestershire. Will Savage, CEO of the aluminium Federation commented: “We are delighted with the support this year with 200 members and guests attending the dinner. Moving the dinner outside central London has been well received and the wonderful facilities at Tortworth Court have provided an excellent backdrop to this important event.” “We took the opportunity offered by the venue to combine the occasion with a Members Briefing the morning after, which included speakers from the European...
Aluminium Bahrain B.S.C. (Alba), in a tangible demonstration of its support of Bahrain's role as a key investment destination, sponsored the Invest in Bahrain Forum & Exhibition 2013, which took place at the Bahrain International Exhibition & Convention Centre on Wednesday, October 30, 2013. Held under the patronage of His Royal Highness the Prime Minister, Prince Khalifa bin Salman Al Khalifa, Invest in Bahrain Forum & Exhibition 2013 was organised by the Ministry of Industry & Commerce Kingdom of Bahrain. Commenting on Alba's sponsorship of the Invest in Bahrain Forum & Exhibition 2013, the Chairman of Alba's Board of Directors, Mahmood Hashim Al Kooheji said: "Bahrain has been ranked as one of the world's freest economies and praised for its investor friendly and forward thinking...
Noranda Aluminum Holding Corporation today reported results for third quarter 2013. "We are proud to report another quarter of solid financial results and reliable operational performance," said Layle K. "Kip" Smith, Noranda's President and Chief Executive Officer. "We continue to see stable overall demand for our key aluminum products and to realize the positive impact of our actions to drive profitability and free cash flow in today's environment. During the third quarter we generated over $6 million in net cash, despite seasonal peak power premiums and further declines in aluminum prices, and continue to believe in the industry's long-term fundamentals." "Having surpassed our previous $140 million CORE productivity target during second quarter 2013, we are pleased to announce a new...
Dubai, United Arab Emirates: Dubai Aluminium (" DUBAL ") - the state-owned corporation that owns and operates the world's largest primary aluminium smelter using pre-bake anode technology - will again express its commitment to the development of the Middle East as a global aluminium hub by participating in the 17th International Arab Aluminium Conference and Exhibition ("ARABAL 2013"). Hosted by Emirates Aluminium ("EMAL") - in which DUBAL holds a 50:50 share with Mubadala Development Company ("Mubadala") - ARABAL 2013 will be held at St Regis Hotel, Abu Dhabi from 5 to 7 November this year. The event marks the 30th anniversary of the inaugural ARABAL Conference and Exhibition in 1983; and is the fifth of its kind to be staged in the UAE. DUBAL has previously hosted four ARABAL events,...
Spot premiums for primary aluminum imported into Japan are not affected by Saudi Arabia's Ma'aden smelter closing one potline, but buyers expressed concern Wednesday that the contract premiums for the first quarter of 2014 may be impacted. On October 16, operator Alcoa said the 740,000 mt/year Ma'aden smelter had shut one of two potlines due to pot instability. The potline is expected to be back online between Q1 and Q2 of 2014, according to Alcoa. The smelter was brought on stream in December last year. Japan imported 35,307 mt of aluminum from Saudi Arabia over March-September 2013. The first shipment from Ma'aden arrived in March. Japanese trade and consumer sources said most of the 35,307 mt imported, handled by about three trading firms, were not for direct sales to end-users as the...
The government finally secured approval from the House of Representatives on Wednesday to take over PT Indonesia Asahan Aluminium (Inalum) from Japanese consortium Nippon Asahan Alumunium (NAA) after a pompous political drama. The Jakarta Post’s North Sumatra correspondent Apriadi Gunawan reported on the concerns of local people and Inalum employees in regard to the takeover plan, which will take place on Friday. Employees of the North Sumatra-based aluminum producer PT Indonesia Asahan Aluminium (Inalum) are reducing their activities ahead of the government’s takeover of the company from the Japanese consortium Nippon. Most of the 1,340 homes in a housing complex for the company’s employees — located approximately 15 kilometers from the company’s smelting plant in Kuala Tanjung, Batubara...
Aluminum Corp. of China Ltd., the nation’s biggest producer of the lightweight metal, said a loss in the third quarter widened from a year earlier as prices dropped. Net loss was 1.22 billion yuan ($200 million) in the three months ended Sept. 30, compared with a loss of 1.08 billion yuan a year earlier, the Beijing-based company said today in a filing to the Shanghai stock exchange. Sales climbed 22 percent to 45.4 billion yuan. Aluminum Corp., known as Chalco, is seeking to trim losses by controlling costs and disposing of unprofitable assets. It sold its aluminum fabrication business in June to its parent and said this month it plans to sell its stake in an African iron ore venture for about $2.07 billion. The stock gained 2 percent to HK$3 in Hong Kong at the close, matching the 2...
U.S. Aluminum giant Alcoa is threatening to close all three of its smelters in the province of Quebec, Canada, as electricity supply cost for the plants is expected to jump 60%, TVA network reported late Tuesday (in French). According the news outlet, Alcoa issued a 12-month notice to Hydro-Québec, which puts and end to its electricity contract for Bécancour, Baie-Comeau and Déschambault. The miner, which swung to a third-quarter profit earlier this month, has been receiving power there at a discount price. But as of January 1, 2015, the annual electricity bill will go up from 350 million to $570 million. Together the plants employ a total of 3,300 people. The news comes on the heels of a report that says this year, for the first time in a decade, mining investment in Quebec is expected...
Aluminium Bahrain B.S.C. (Alba)'s Chief Executive Tim Murray announced the appointment of Gopichand Talreja as the new Manager of Workshop & Maintenance Services. Mr. Talreja has been with Alba since 1992 when he joined the planning section of the Carbon Maintenance Department during the Line 4 commissioning phase. He earlier worked with Indian Aluminium Company Limited (Indal) and has over 31 years' experience in the aluminium industry. Commenting on the new managerial appointment, Alba's Chief Executive Officer, Tim Murray said: "The Workshop & Maintenance Services provides crucial support to our operations and play an important behind-the-scenes role in strengthening Alba's reputation as one of the world's leading smelters. I like to congratulate Gopichand on his appointment as the...
Aluminium prices today edged higher by 0.71% in futures trade mostly in line with a firming trend in the global markets. Besides, increased demand at domestic spot markets also influenced prices. At the Multi Commodity Exchange, aluminium for delivery in October rose by 80 paise, or 0.71%, to INR 113.60 per kg in business turnover of 156 lots. Similarly, the metal for delivery in November traded higher by 70 paise, or 0.61%, to INR 115.15 per kg in 81 lots. Market analysts said the rise in aluminium prices in futures trade was mostly attributed to a firming trend in the global markets and rising demand at spot markets here.
Chinese aluminium output is likely to hit a record 24 million tonnes this year, a research director at the country's top producer of the metal said on Wednesday, suggesting production may ramp up towards year-end. China's growth in aluminium output means it has had little need for imports from global markets where stocks are sitting at record highs, with prices falling to a four-year low below $1,800 a tonne in June. Output in the world's top aluminium producing nation is still running below total capacity, seen at 32 million tonnes by the end of this year, said Zhonglin Yin, director of the alumina division in the Zhengzhou Research Institute of Chalco. The Aluminum Corp of China Ltd is typically referred to as Chalco. The country's aluminium production grew by almost 9 percent to 16.2...
Offers for China's domestic spot aluminum alloy ADC12 remained generally steady Tuesday, while the physical demand stayed healthy after the pickup seen the previous week, industry sources said. Domestic offers were heard around Yuan 16,000/mt ($2,619/mt) ex-works, unchanged from last week. Platts kept its weekly China domestic ADC12 prices steady at Yuan 15,800-16,100/mt ex-works Tuesday, unchanged from the previous Tuesday. "The domestic demand is still doing fine due to the end-users' rush to stock up for year-end requirements. I expect demand to pick up even more in November," said an east China-based producer, who indicated offers at Yuan 15,800-16,000/mt, unchanged from last week. "Supply from the Zhejiang province has dropped. This, however, has helped to lift demand from other...
