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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SECO/WARWICK has received an order for an aluminium annealing furnace that features a simple, compact design and an innovative loading system that does not require power. The furnace is for an Italian company operating in the heating market. The contract includes the supply of a furnace for annealing of aluminium tubes along with the control system, supervision of installation, commissioning, transfer devices and staff training. The simple design of the furnace ensures reliability and low operating costs. A unique system for loading and unloading does not require electricity and can be operated manually by one person. The compact design does not require expensive foundations and permits the furnace to be placed directly on a shop floor. Also, the furnace can be relocated without complete...
Aluminium prices traded marginally higher by 0.27 per cent to INR 113.20 per kg in futures trading today as speculators created fresh positions after pick up in demand in the spot market. At the Multi Commodity Exchange, aluminium for delivery in November edged up by 30 paise, or 0.27 per cent, to INR 113.20 per kg in business turnover of 29 lots. Similarly, the metal for delivery in October traded higher by 25 paise, or 0.23 per cent, to INR 111.25 per kg in 533 lots. Market analysts said fresh positions created by speculators after pick up in demand in the spot market, mainly led to rise in aluminium prices in futures market.
The Hong Kong listed aluminum giant Chalco said it is transferring its stake in an iron ore venture to its parent company Aluminum Corp of China Ltd., to improve its capital structure. Chalco Hong Kong Ltd plans to dispose 65 percent of an equity interest in Chalco Iron Ore Holding Ltd., to Aluminum Corp of China Overseas Holdings Limited, a wholly-owned subsidiary of Chalco for $2.067 billion, according to a filing to the Hong Kong Stock Exchange. The Hong Kong-based company is expected to profit by 5.4 billion yuan from the disposal. The proposal is subject to mutual agreement between the two parties. The Simandou-based iron ore project in Guinea, West Africa, is a large-scale project that requires long-term investment, Chalco said, so it needs to its reduce capital debt ratio and...
Brazil’s aluminium output fell 10.1% year-on-year in September, following production curtail announcements in the country. This was down from 117,300 tonnes in the same month of 2012. In the January-September period of this year, production fell 8.5% compared with the same period in 2012, totalling 993,800 tonnes. In August 2013, Brazil’s aluminium production stood at 111,600 tonnes. Domestic aluminium consumption, by contrast, is expected to end 2013 with a 3.7% increase.
Meridian shares will be issued at a listing price of $1.50, the bottom of the indicative range of $1.50 to $1.80 and with a much smaller investor pool than the government had hoped for. Some 62,000 New Zealand investors put their money into Meridian, despite huge efforts through advertising and the structure of the offer to attract retail "Mum and Dad" investors, compared with 113,000 for MightyRiverPower, which listed in May at $2.50 a share, but has traded down to $2.20 since. The float will raise $1.88 billion after the two instalment payment programme completes in May 2015. "Bear in mind the circumstances," said Finance Minister Bill English at a mid-evening press conference at the Beehive. "We have the impression a lot of Mum and Dads were scared off by the Labour-Greens policy" as...
LME aluminium is expected to consolidate in a range of $1,840-$1,860 per tonne, as indicated by its wave pattern and two trendlines. The drop from the Oct. 22 high of $1,891.25 is labelled as a wave c, the final wave of a three-wave cycle that developed from the Oct. 11 high of $1,890. Five small waves will make up the wave c, with the weak rebound from the Wednesday low of $1,840 classified as a wave 4, to be followed by a downward wave 5. Two trendlines respectively rising from the Sept. 17 low of $1,775.50 and the Oct. 16 low of $1,825.50 have defined the range of the volatility. The likely scenario will be aluminium ending its rebound around $1,860 and then falling towards $1,840 .
Akwa Ibom State of House Assembly yesterday passed a resolution calling on the Bureau of Pubic Enterprises, BPE, to take over the plant and assets of the Aluminium Smelter Company of Nigeria, ALSCON. The resolution followed alleged recent case of looting of ALSCON assets by RUSSAL. While bringing the matter before the House under matter of urgent public importance, the member representing Ikkot Abasi/ Eastern Obolo, Mr. Aboh Udoyork, said ongoing assets stripping of ALSCON by RUSAL, which was supposed to transform it into national productive assets for job creation and foreign exchange earnings, was a deliberate attempt to further undermine Nigeria’s effect to transform her economy into a big player in the world. He said: “Following the systematic cannibalisation of the plant, community...
Two of the world’s largest aluminum makers reaped an estimated $1.4 billion in revenues from higher fees amid a logjam at London Metal Exchange warehouses, according to an analysis by The Wall Street Journal. The two companies, Alcoa Inc. and United Co. Rusal, have emerged as some of the most vocal opponents of an LME proposal aimed at easing bottlenecks at warehouses. Many analysts say the fees, known as “premiums” to industry insiders, are likely to shrink from record levels if the new warehouse rules are implemented. While the holdups at warehouses have allowed their operators to charge more in rent, the delays also have contributed to a rise in the premiums aluminum makers charge for delivering the metal, analysts say. Since early 2011, aluminum premiums have jumped, mirroring the...
Deutsche Bank said that the aluminium market remains “more pain, before the cure”. That means weaker pricing in the near-term, to force further producer discipline, but we think the outlook has started to improve modestly. UC RUSAL’s update on their capacity closure plans went further than we had factored into our supply – demand assessment. “Adjusting for this announcement, we see a market in a modest surplus position over the next three years; 460kt in 2013E, and 230kt in 2014 and 2015E. Although Alcoa have not given a detailed impact assessment from the pot instability at Ma’aden, we have trimmed our forecasts very modestly for 2013 and 2014. We had already reduced our surplus forecasts in anticipation of further “unallocated” cuts some of which now been accounted for by RUSAL - we...
Brazilian aluminium producer Alloys Representações Comerciais, Norsk Hydro subsidiary Albras and Pará state government have signed a commitment to future investments in the local aluminium production chain, Metal Bulletin understands. Alloys intends to build a billet operation in the state, as well as an extruded products plant and an aluminium recycling facility, and Albras will be its primary aluminium supplier, according to information published by state official news agency Agência Pará. The project will be developed over the next three years. Other investments will focus on the production of aluminium for steel de-oxidation, secondary alloys and aluminium powder from scrap, according to the news agency. Investments in the billets and steel de-oxidation lines are estimated at $100...
Asian aluminium premiums have been steady ahead of the LME warehousing rule change and with contract talks for 2014 still to start. “[The market is] still very quiet. We are supposed to start talks for next year’s contracts but it’s an uncertain situation because of the [impending changes to] LME rules,” a trader from Japan said. The aluminium mating season has moved this year as consumers are adopting a wait-and-see approach before booking any 2014 material. “We have to settle [annual contracts] by November, so there is still time,” the trader added. The main Japan ports cif spot premium for aluminium is at the same levels as the fourth-quarter MJP cif of $245-247 per tonne. “Not so many trades have been done recently as the market is watching for the LME rules,” a second trader source...
CME Group has a window of just a few months to establish its new aluminium contract before the opportunity is missed, industry consultant Mark Bodner told Metal Bulletin. “CME rightly sees an opportunity,” Bodner said. “A launch before year-end will give a much better chance of success than if it’s delayed beyond that.” Bodner was an aluminium trader at Gerald Metals in 1978 when the London Metal Exchange launched its aluminium contract, and became one of the largest users of the first Comex aluminium contract in the mid-1980s. He later spent 13 years as sales director at United Co Rusal before opening his own consultancy. The opening for a competing CME aluminium contract stems from the investigation into LME warehousing by the Commodity Futures Trading Commission (CFTC) and the lawsuits...
Norsk Hydro, one of the world's biggest aluminium makers, said its July-September core earnings rose more than expected thanks to solid performance at its primary aluminium and power production divisions. At the same time, Hydro adjusted its 2013 forecast for global primary aluminium demand growth, excluding China, to 2 percent from previously 2-4 percent. Benchmark aluminium prices are down 10 percent in 2013 to around $1,870 per tonne, but cost cuts and high premiums on physical deliveries of the metal have helped boost results at Hydro. "I'm pleased to report that we are on track to deliver the $300 per tonne cost improvements for our fully-owned smelters by the end of 2013, contributing to a more robust cost position and bottom line," Chief Executive Svein Richard Brandtzaeg said. The...
The House of Representatives agreed on Tuesday to hand over PT Inalum`s management to the State-Owned Enterprises (SOE) Ministry following the government`s decision to acquire it after three years of negotiations with the Japanese government. The House made the decision in its joint meeting with all parties, as the government decided not to extend the expired contract of PT Inalum, an aluminum joint venture between Indonesia and Japan in which Indonesia held 41.13 percent of the company`s shares and Japan owned 58.87 percent. "House Commission VI and the government agree to hand over the management of Inalum to the State-Owned Enterprises Ministry based on the law," Commission VI Chairman Airlangga Hartarto said when reading a statement here on Tuesday night. The House agreed to the...
Aluminij Mostar, Bosnia's sole aluminium smelter, clinched a deal on Tuesday to settle its debt to state-run power company EPHZHB and stave off closure. Aluminij, a mainstay of Bosnia's economy, began a gradual shutdown of its smelter on Oct. 15 after EPHZHB froze its bank accounts in a dispute over a 40 million Bosnian marka ($27.7 million) debt owed for power supplies. Like other smelters, Aluminij Mostar has been squeezed by a 30 percent fall in the price of aluminium in the last 2-1/2 years caused by oversupply and by high power prices. The smelter said it had agreed with EPHZHB to pay its debt in 10 monthly instalments beginning on February 2014 and to service its monthly obligations towards the utility through the end of this year. The deal was reached through the mediation of the...
Aluminium prices today rose marginally by 0.18% in futures trade mostly in line with a firming trend in global markets. Besides, increased demand at domestic spot markets also influenced prices. At the Multi Commodity Exchange, aluminium for delivery in November rose by 20 paise, or 0.18%, to INR 114 per kg in business turnover of 18 lots. In a similar manner, the metal for delivery in October traded higher by 15 paise, or 0.13%, to INR 112.10 per kg in 288 lots. Market analysts said the rise in aluminium prices at futures trade was mostly attributed to a firming trend in the global markets and rising demand at spot markets here.
UBS AG reissued their hold rating on shares of Noranda Aluminum Holding Corp. in a research report sent to investors on Thursday morning, Stock Ratings Network reports. The firm currently has a $2.40 price target on the stock. Shares of Noranda Aluminum Holding Corp. traded down 1.16% on Thursday, hitting $2.56. 174,740 shares of the company’s stock traded hands. Noranda Aluminum Holding Corp. has a 1-year low of $2.21 and a 1-year high of $6.94. The stock has a 50-day moving average of $2.54 and a 200-day moving average of $3.33. The company’s market cap is $174.1 million. Noranda Aluminum Holding Corp. last announced its earnings results on Wednesday, July 24th. The company reported ($0.16) EPS for the quarter, missing the Thomson Reuters consensus estimate of ($0.14) by $0.02. The...
Aluminum prices in Henan dropped sharply to a discount of 100 yuan per tonne over the Changjiang spot price in mid-October, dragged down by soaring inventories and flagging demand, Shanghai Metals Market (SMM) has learnt. The flow of aluminum ingot into Henan from Gansu Dongxing Aluminum Co., from Ningxia Qingtongxia Aluminum Co., East Hope Aluminum Co., and from Xinjiang Tianshan Aluminum Co, among other producers, has exacerbated pressure from oversupply in the region. Consumption, meanwhile, has faltered considerably, causing aluminum inventories to surge. Aluminum smelters in the region have confirmed to SMM that they have seen inventories balloon from normal levels. Stocks in Gongyi, a major consumption hub in Henan, have piled up to near 100,000 mt, SMM has confirmed with local...
