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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National Aluminium Company (NALCO) reported strong numbers with the second quarter (July-September) net profit growing 37.3 times year-on-year to INR 179 crore on operational performance. Strong results were on the back of higher coal linkage in Q2, Ansuman Das, CMD said. He feels strong performance in Q2 is sustainable in October-March FY14 and falling input costs will aid margins during the same period. Net sales of the company rose 7.8 percent to INR 1,710 crore in three-month period ended September 2013 from INR 1,585.9 crore in a year ago period, driven by chemicals business. Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at INR 238.6 crore in the quarter gone by as against loss of INR 24 crore and operating profit margin reported at 14 percent as against...
Japanese aluminium buyers will mostly pay slightly lower premiums of $245-$247 per tonne over London Metal Exchange (LME) prices for October-December shipments after talks with producers of the metal, sources involved in the negotiations said. The softer premiums, down from around $250 in the previous quarter, reflect a fall in overseas premiums and slack demand. Japan is Asia's biggest importer of aluminium and the premiums, agreed each quarter, set the benchmark for the region. The premiums for Oct-Dec shipments are their first quarter-on-quarter declines since the first quarter of 2013 and compare against the record highs of $254-$255 a tonne in the fourth quarter of last year. "We really wanted to win lower premiums this time as local demand is not that strong and premiums in Europe...
SNC-Lavalin is pleased to announce that Phase II of the Emirates Aluminium Smelter Complex (EMAL II) project in Abu Dhabi achieved first hot metal nearly three months ahead of schedule. SNC-Lavalin has been contracted to provide engineering, procurement and construction management services for EMAL II. Once completed, the Emirates Aluminum Smelter Complex will be one of the largest single-site aluminium smelters in the world with an annual production of 1.35 million tonnes per year. With the longest potline and largest gas treatment centre in the aluminum sector, a 2,000-volt rectifier/transformer and the biggest captive gas-fired power plant in the world, the Emirates Aluminium Smelter Complex has set many records in the industry. "Achieving first hot metal nearly three months ahead of...
The Venezuelan government has injected 22 million bolívares ($3.49 million) for equipment and installation investments at Corporación Venezolana de Guayana Alcasa (CVG Alcasa), according to local media. The state-owned producer intends to restart 230 electrolytic cells to reach a total of 389 in operation by 2014, and achieve a primary aluminium output of 170,000 tpy. “From this 170,000 tonnes, we’ll be able to transform 152,000 into semi-finished and finished products,” Angel Marcano, president of CVG Alcasa, said in February this year. At the beginning of 2013, the company and delegates from Chinese state-owned supplier China Aluminum International Engineering Corp (Chalieco) celebrated the arrival of new machinery, obtained with a $402 million investment approved by president Hugo...
The deputy chief executive of Rusal, the world’s largest maker of aluminium by volume, has called on non-Chinese aluminium producers to cut their production by 2m tonnes to end the oversupply that has pushed smelters into losses. Oleg Mukhamedshin, also Rusal’s director for strategy and business development, said: “The industry needs to be more disciplined.” The world’s aluminium producers – including Rusal, Alcoa and Rio Tinto – are feeling increasing pressure from low prices of the metal, but output cuts have been insufficient to remove the metal surplus from the market and output in China is still expanding. The problem has been especially acute for the Russian group, which has been struggling to service its net debt, which stood at $9.9bn last month. To strengthen its cash flow,...
Canadian Bombardier Inc. put its stake in the ground to challenge Boeing and Airbus by flying its C Series plane for the first time. “However, the post-flight press conference also highlighted the risks surrounding the project, with several questions focusing on whether the aircraft would meet the targeted number of orders and the aircraft’s development costs,” reported the FT. Following two days of increases, the Indian aluminum cash price dropped by 3.5 percent on Tuesday, September 17, on MetalMiner’s aluminum price index. The cash price of primary aluminum weakened by 0.7 percent on the LME, settling at $1,734 per metric ton. On the LME, the 3-month price of aluminum fell 0.6 percent to $1,785 per metric ton. Chinese aluminum closed mixed on Tuesday. The price of Chinese aluminum...
LME aluminium faces a resistance at $1,816 per tonne, and may hover below this level or retrace to $1,800. The resistance is provided by the 23.6 percent Fibonacci retracement on the fall from the Aug. 19 high of $1,949 to the Monday low of $1,775.50, temporarily blocking the way towards the 38.2 percent retracement at $1,842. Given that the downtrend from $1,949 is very strong, the first leg of the current rebound may end at about $1,816. A break above $1,816 will be confirmed when aluminium stands above $1,820. 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 products mentioned in the analyses.
AMG N.V. begins a new phase of integration with AMG Services Aluminum that is intended to produce greater efficiency and customer service for the global aluminum industry. According to a recent announcement from AMG Services Aluminum and Advanced Metallurgical Group N.V., as reported by Reuters, AMG will begin an effort to produce greater coordination between six AMG Services Aluminum production sites in North America, Europe, South America and Asia. This coordination will involve an integration of customer service initiatives around the world. As the world’s largest supplier of grain refiners and aluminum master alloys, AMG stands to create a significant improvement in the aluminum industry across the globe. According to AMG, the new integration efforts will be lead by Julien Crisnaire,...
Emirates Aluminium Global (EAG), which is under formation, has said it plans to become an international aluminium conglomerate with interests from bauxite mining to aluminium refining and carbon production, Khaleej Times has reported. EAG will comprise several umbrella companies operating in different segments within the aluminium industry at global scale, said Saeed Fadhel Al Mazrooei, the president and CEO of Emirates Aluminium (Emal). Bahrain's Gulf Petrochemical Industries Co (GPIC) has posted record export and production levels and profit that exceeded expectations during the month of August, thanks to improved employee efficiency and production processes, Gulf Daily News has reported. The petrochemicals firm said its total production during last month was around 135,523 tonnes, the...
Equities research analysts at Sidoti assumed coverage on shares of Noranda Aluminum Holding Corp. in a research note issued to investors on Tuesday, American Banking and Market News reports. The firm set a “buy” rating on the stock. Shares of Noranda Aluminum Holding Corp. traded up 0.39% during mid-day trading on Tuesday, hitting $2.58. 95,483 shares of the company’s stock traded hands. Noranda Aluminum Holding Corp. has a 52-week low of $2.54 and a 52-week high of $7.85. The stock’s 50-day moving average is $2.94 and its 200-day moving average is $3.65. The company’s market cap is $175.5 million. Noranda Aluminum Holding Corp. last released its earnings data on Wednesday, July 24th. The company reported ($0.16) earnings per share for the quarter, missing the analysts’ consensus estimate...
The aluminium industry has a job to do in promoting the metal’s key advantages over others in order to stay ahead of its competitive peers, a senior executive at Norsk Hydro said. The benefits of recycling and sustainability need to be better communicated ,Oliver Bell, executive vice president of Hydro rolled products, told Metal Bulletin’s 28th International Aluminium Conference in Geneva. “The industry needs to sustain and support the now predicted growth rate of 6 percent,” he said. “We have to communicate the benefits of recycling,” he said, noting that other materials promote themselves far better. Bell said that growth in demand for aluminium in mature markets would come on the transportation side, while undeveloped markets would drive consumption from the construction side.
The loss is $1.8B, with 35% of companies losing money, or 89 of 281 aluminum enterprises, Qin Junman, vice president of China Nonferrous Metal Industry’s Foreign Engineering & Construction Co., says in presentation for the Metal Bulletin aluminum conference in Geneva today: * Industry still expanding, with 2,700 kt/a smelting capacity estimated to be under construction, mainly in Xinjiang, Qinghai, Gansu and Inner Mongolia * Domestic bauxite production didn’t meet demand of alumina refineries in China * Domestic bauxite grades “poorer” * Avg. power costs for aluminum smelters before taxes is highest in China, followed by Brazil, U.S., Australia, India, Norway, Russia, Canada and finally UAE * “Government support required: government to buy and store ingot to cut inventory”
Alba is providing sponsorship support to the 28th International Aluminium Conference being held at the Intercontinental, Geneva, Switzerland. Organised by Metal Bulletin Events, the conference provides one of the most influential platforms for forging closer interactions with members of the aluminium industry, and in providing a better understanding of trends, developments and challenges facing the industry worldwide. An Alba delegation - led by chief operations officer Isa Al Ansari - is at the conference to meet and network with industry peers, to share information about the company's portfolio of high-grade aluminium products, and also, to highlight Bahrain's competitiveness as an industrial force. The delegation also includes chief financial officer Ali Al Baqali, chief marketing...
The world's top aluminium producers and consumers are at loggerheads over the thorny issue of what price, or premium, should be paid to secure metal deliveries, and will conclude fewer fixed term supply deals this year, industry sources said. Producers Rusal , Alcoa and Rio Tinto are descending on Geneva for an industry gathering that marks the start of annual supply negotiations with aluminium product makers. But unlike in recent years, top consumers like Novelis and Rexam have a strong hand to play thanks to U.S. regulatory scrutiny into claims big banks and trade houses artificially inflated aluminium premiums by building backlogs at London Metal Exchange (LME) warehouses. The scrutiny comes alongside a proposed overhaul of warehouse practices on the LME, which has already helped knock...
Emirates Aluminium Co.’s (Emal) third production line got energised yesterday, three months ahead of schedule with rollout of the first hot metal by September 19 signalling the start of production, top-ranking executives at Emal said. “We have expanded our power station to 3,000 megawatts from 2,000 megawatts. By the end of October, all three gas turbines will be running. Of the two steam turbines, the first will start running in January and the other from February next year,” Yousuf Bastaki, vice president — Project at Emal told reporters at a news conference. Bastaki said Emal’s current production capacity is 800,000 metric tons a year and would reach 1.3 million tons a year by May 2014 upon completion of phase II of the project. The Emal smelter is located about 100 kilometres from the...
Aluminium giant Alcoa has had a win in its bid to recoup more than $100 million from gas producer Apache over the massive explosion at the Varanus Island plant in 2008. The disaster slashed the state's domestic gas supplies by about a third and dented its economy to the tune of an estimated $3 billion. And an official report into the explosion said a 30cm pipeline, maintained by Apache, ruptured and exploded at the shoreline because of corrosion, a risk that was "not only foreseeable but to some extent foreseen" by the company. Alcoa, a major user of natural gas from the plant at its three WA alumina refineries, claims the disaster forced it to spend $138 million more than it would have under a sales agreement with Apache on acquiring gas and diesel from elsewhere. Alcoa commenced...
Alcoa Inc has recently made the news for several reasons, some good, others not. The good news is the announcement that activity will double at its Kawneer asset located in Irurtzun, Spain. Production there is said to focus on standard and custom products for national and international projects. The last major order was for 17,000 aluminum panels for the Lycée Georges Frêche. Also, new offices and a logistic and industrial platform will be constructed in Montpellier, France, to give support to activities in the Iberian Peninsula. On another note, Alcoa Inc and the United Company Rusal, asked the London Metal Exchange for more transparency. More specifically, the companies wish to have access to information concerning short and long-term stockholders. Both companies have argued that they...
The northbound lanes of Alcoa Highway were partially blocked for more than four hours Monday afternoon after a tractor-trailer rig overturned near the Hilton Knoxville Airport. At about 4 p.m., the flat-bed tractor-trailer, carrying 47,000 pounds of aluminum roll, was on the Hunt Road ramp getting ready to head northbound on Alcoa Highway. The load shifted and rolled the truck over on its side, blocking the northbound lanes, and causing the rolls to spill onto the highway, according to Sgt. Hank Morris of the Alcoa Police Department. Alcoa police officers responded and were on the scene for about 4½ hours, Morris said. Tennessee Department of Transportation workers were on the scene to assist with traffic, and several wrecker services were on hand to help turn the trailer over. Workers...
