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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The Indonesian government said on Tuesday that it had raised its valuation of aluminum producer Inalum from $424 million to $558 million — a 31.6 percent increase — in its ongoing negations to assume control of the 58.8 percent stake in the company held by Japanese consortium Nippon Asahan Aluminium (NAA), which is set to expire on Oct. 31. “We do not want that this Inalum matter to be taken to arbitration,” Industry Minister MS Hidayat said on Tuesday. “Our negotiating team has resumed negotiations with the Japanese.” NAA, which has controlled the shares since signing an agreement in 1978, has demanded $626 million for them. Under the agreement, the Indonesian government had the right to assume control on Oct. 31, which it has pledged to do. If the government and NAA cannot agree on a...
BHP Billiton’s aluminium output in the September quarter rose 15% year-on-year boosted by strong performance at its South African smelters with record production at Hillside. In the three months ended September 30, 2013, BHP’s aluminium output was 310,000 tonnes, unchanged from output in the June quarter. Alumina production increased by 7% year-on year but fell 1% quarter-on-quarter in the September 2013 quarter to 1.25 million tonnes.
Alcoa Inc is one of the global players engaged in the production of alumina, primary aluminium, and fabricated aluminium. It has a presence in mining, refining, smelting, fabricating, and recycling. The company recently announced that the smelter operated by the joint venture (Ma’aden-Alcoa) has been shut down temporarily as one of the two potlines was facing problems during ramp-up. Alcoa owns 25 % stake in the joint venture, while the remnant is being held by Ma’aden. Management stated that repairs & maintenance works at the $10.8 billion project in Saudi could extend into coming year and the company would focus on another potline for ramping up its production. The combined capacity of both these potlines stands at 740,000 TPA. Apart from this, the rest of the operation expansion or...
Goldman Sachs cut its price targets for aluminum to $1,800, $1,750 and $1,750 per metric ton on a three-, six- and 12-month horizon. The bank previously looked for $1,850, $1,900 and $2,000, respectively. “Driving these aluminum forecast revisions is the lack of a sufficient supply response to low and declining prices, which we believe is the result of a sharply declining cost structure driven by weaker coal and power prices,” Goldman added. “At this point, we no longer believe supply curtailments will create a shift in the balance significant enough to generate a turn in the cycle within the next 12 months,” Goldman concluded.
“The free trade agreement with Europe is an unprecedented growth opportunity for the Canadian aluminium industry because it will drive the gradual elimination of tariffs on aluminium imports, such as, 7% on rods, 6% on billets, foundry and slabs, as well as 3% on remelt,” said Jean Simard, President and Chief Executive Officer, Aluminium Association of Canada, at the signing of the memorandum of understanding for a possible Canada–Europe free trade agreement. “We look forward to signing the agreement as it will open the door to a large-scale market for Canadian aluminium production.” The organisation and Mr. Simard applaud the excellent work accomplished by the Canadian and Quebec governments’ negotiators, the Honourable Ed Fast, Minister of International Trade, and the Honourable...
Vedanta Aluminium Ltd will triple its capacity by 2015 to 2.3 million tonnes to cater for an expected surge in demand in India, its managing director said, even though its inability to source enough alumina at home has forced it to import the raw material. The company, a unit of London-listed Vedanta Resources Plc, has been importing more than 1 million tonnes of alumina per year because plans to mine bauxite to feed its alumina refinery are on hold while the authorities look at opposition from people in Odisha. Vedanta Aluminium’s need for alumina, produced by refining bauxite, would nearly triple to 4.5 million tonnes in three years as it adds smelting capacity, managing director Sushil Kumar Roongta told Reuters. “We’ll have to continue importing alumina till my refinery starts...
One of the world’s largest aluminium producers has attacked the London Metal Exchange as “short-sighted and misguided” and called on regulators to intervene in a row about metals warehousing. In a letter sent to the UK Financial Conduct Authority and the US Commodity Futures Trading Commission on Friday and seen by the Financial Times, Alcoa accused the LME of “exceeding the proper role of an exchange” in its response to the controversy. The escalation of the dispute over warehousing threatens the primacy of the 136-year-old LME as the home of global benchmark prices of metals from aluminium to zinc. It comes less than a year after it was bought by Hong Kong Exchanges & Clearing for £1.4bn. The argument centres on long queues to take delivery of aluminium from LME-registered warehouses,...
State mining company Aneka Tambang, commonly known as Antam, says it expects to gain an additional $150 million in revenue from its alumina smelter plant slated to open later this month in Tayan, West Kalimantan, the company’s chief said on Thursday. Antam’s smelter will be able to process up to 300,000 metric tons of chemical-grade alumina each year from bauxite, president director Tato Miraza said. Construction of the $490 million smelter began in June 2011. Tato said the company planned to operate the smelter at 70 percent capacity. Tato said its new smelter in Tayan would generate revenue that would offset up to $300 million in potential losses that the company could incur after a ban on unprocessed mineral exports takes effect at the start of 2014. The long-discussed policy is...
Japanese consortium Nippon Asahan Aluminium (NAA) on Monday countered the Indonesian government’s offer for its stake in aluminum producer Inalum, which is set to expire on Oct. 31, and demanded $626 million. The government, which has in the past said that it will make Inalum a state-owned enterprise, has offered $424 million for the stake. “This Monday, I will meet with Coordinating Minister for the Economy Hata Rajasa and the president [Susilo Bambang Yudhoyono] to make a decision on whether to go for an arbitrage or not,” Industry Minister M.S. Hidayat on Sunday. “The likeliness is not.” International arbitrage is a costly process. The government will consider raising its offer, Hidayat said, though he did not elaborate further. He said the Finance Ministry was already preparing to...
Emirates Aluminium (EMAL) smelter complex project at Abu Dhabi, UAE is being built on a 6 km2 site in two phases. Phase 1 was completed early in 2011 and comprised the construction of two potlines, with a total of 756 reductions cells. Supporting units included a 2 000 MW power plant; a carbon plant encompassing an anode manufacturing plant, a baking furnace and a paste plant; a cast house; a laboratory; a dedicated berth; a reverse osmosis plant; a pitch unloading station; a raw material ship unloader, conveyer belt; and silos for storage. Phase 2 involves the construction of an additional potline of 444 reduction cells and supporting units. The units will include a ship unloader, the current power plant will be expanded to 3 000 MW, and a new cast house facility and anode manufacturing...
Italy was Thursday directed by Europe's highest court to take back about 295 million euros ($398 million) of state aid given to U.S. aluminium producer Alcoa Inc in the form of preferential power tariff as it had given the company unfair advantage over rivals. Upholding a decision by the European Commission four years ago, the European Court of Justice ruled that "Italy has failed to fulfill its obligation to recover the state aid granted to Alcoa in the form of a preferential electricity tariff." the Luxembourg-based European Court of Justice (ECJ) said in a ruling published Thursday. The ECJ's decision in the case filed by the anti-trust regulator, EU competition authority, is final and cannot be appealed. Italy must now comply with the court's judgment "without delay," the Luxemburg...
A new study released today confirms the growing importance of the domestic aluminum industry to the U.S. economy. Research conducted by economic research firm John Dunham & Associates found that the U.S. aluminum industry directly employs more than 155,000 workers and generates $65 billion in economic output in all 50 states and the District of Columbia. As an integral part of the U.S. manufacturing base and overall economy, the aluminum industry supports hundreds of thousands of high quality manufacturing jobs in communities of all sizes," said Layle "Kip" Smith, President and CEO of Noranda and Chairman of the Aluminum Association. "Aluminum is a vital material for the modern era and a bellwether for domestic manufacturing." The Aluminum Association last released an economic impact...
Aluminum inventories tracked by the London Metal Exchange jumped the most in more than a year, following a gain in zinc stockpiles, amid continued appetite to use industrial metals in so-called financing transactions. Stocks of aluminum rose 1.5 percent, the most since Sept. 13, 2012, to 5.42 million metric tons, daily exchange data showed today. Zinc inventories had this year’s third-biggest increase yesterday, climbing back above 1 million tons with the help of a 12 percent jump in New Orleans warehouses. As much as 80 percent of stockpiled LME aluminum and 60 percent of zinc inventories may be tied to financing transactions and unavailable to consumers, according to Societe Generale SA. Investors use the transactions to capitalize on markets in contango, when prices increase for later...
The Honourable Denis Lebel, Minister of Infrastructure, Communities and Intergovernmental Affairs and Minister of the Economic Development Agency of Canada for the Regions of Quebec, announces that the Aluminium Valley Society has been granted financial assistance for the organization of the fifth Aluminium Valley in Business trade show. "Our government is funding this Aluminium Valley Society initiative because it will help businesses in the sector increase their share of export markets and improve their competitiveness, which will in turn help strengthen our country's economy," said Minister Lebel. Since its founding in 2001, the Aluminium Valley Society has been working to make the Saguenay-Lac-Saint-Jean region one of the world's leading hubs for aluminium production and processing by...
The National Energy Regulator of South Africa (Nersa) has confirmed that it received BHP Billiton’s official response this week to Eskom’s application for a review of the utility’s electricity supply contracts with the miner’s aluminium smelter in terms of Section 32 of the Electricity Regulation Act, 2006. Full-time regulator member responsible for electricity Thembani Bukula tells Engineering News Online that Eskom’s application and BHP Billiton’s response should be deliberated upon at the October 29 meeting of the energy regulator. Only after that meeting would Nersa be in a position to decide whether it felt it was within its mandate to hold public hearings into the controversial commodity price-linked contracts. Section 32 compels the regulator to investigate complaints of...
The Indonesian government will go ahead with its plan to take over North Sumatra-based aluminum producer PT Indonesian Asahan Aluminium (Inalum), despite an arbitration threat from Japanese shareholders, Coordinating Minister for the Economy Hatta Rajasa said. According to Hatta, the government had yet to decide whether it would allow local administrations to acquire a stake in Inalum, which would become a state-owned company after the contract allowing a Japanese consortium to manage and operate the company expired on Oct. 31. “It has been decided that Inalum will officially become a state-owned company on Nov. 1,” Hatta said after a meeting at his office on Thursday. The meeting, which focused on PT Inalum’s acquisition, was attended by the State-Owned Enterprises Minister Dahlan Iskan,...
Bosnia's regional government said on Friday it had made proposals to help aluminium smelter Aluminij Mostar settle a debt to state-run power utility EPHZHB and stave off the company's closure. Aluminij, a mainstay of Bosnia's economy, began to shut down its smelter on Tuesday after Mostar-based EPHZHB froze its bank accounts in a dispute over a 40 million Bosnian marka (20 million euro) debt owed for power deliveries. Like other smelters, Aluminij Mostar has suffered from a 30 percent fall in the price of the metal in the last 2-1/2 years caused by oversupply as well as by high power prices. The government of Bosnia's autonomous Muslim-Croat federation, where the smelter is located, said it had proposed to EPHZHB to unfreeze Aluminij's accounts and to enable it to continue production....
Vedanta Aluminium Ltd (VAL) that is struggling to commission its 1.2 million tonne aluminium smelter at its Jharsuguda Special Economic Zone (SEZ) for want of alumina, has sought partial de-notification of the zone’s non-processing area. Responding to VAL’s request, the Odisha government has recommended the proposal to the Director, SEZ under Union ministry of commerce & industry. “The government is pleased to recommend the proposal of VAL for partial de-notification of non-processing area of VAL-SEZ at Jharsuguda. Any tax concession availed by VAL either from the Government of India or from the state government in procuring the materials towards the construction activities in this patch of land proposed for de-notification have to be refunded to the Centre/state government,” S C Naik,...
