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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Their low costs notwithstanding, Indian aluminium makers are treading on thin ice of profitability. Aluminium is trading at a four-year low on the London Metal Exchange (LME). At these prices, large swathes of global aluminium capacity are not recovering cash costs. If the industry here has managed to keep its head above water, it is because of the high premia buyers are paying over the LME cash price to secure physical metal. In this business, a few groups across the world, including Hindalco, are faring better than the rest, owing to their portfolios of value-added products (VAP). Such products are far less prone to price fluctuations than aluminium, as a commodity. According to Hindalco Managing Director Debu Bhattacharya, pursuing a "focused strategy of value maximisation", the...
LME aluminium is expected to drop to its June 27 low of $1,758 per tonne, as it has broken below a trendline rising from this level. The break indicates a slim chance of the rebound from $1,758 extending, and the drop from the Aug. 19 high of $1,949 looks like a continuation of the preceding long-term downtrend. The metal is pulling back towards the trendline and will resume its drop on Tuesday. There might not be any support to stop the drop, until it reaches $1,758. A rise to $1,795 will signal a false break below the trendline, and the target has to be aborted. 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...
The rise of China’s Xinjiang province as a hub for aluminium production may be challenged in the coming years by increasing transport and labour costs, and its difficult geographical location, market participants said. Once a comparatively small cog in China’s aluminium production, northwest China's Xinjiang has emerged as a very significant location for producers this year, with a rate of growth behind only Henan province. In the first eight months of 2013, Xinjiang’s aluminium output accounted for 10% of China’s total production, up from 4% last year. Its contribution is expected to rise further before the end of this year, with about 1 million-tonnes of new capacity expected to come online. “Xinjiang is [a dark horse] as its aluminium output rose quickly thanks to new capacity,” Wang...
The Government postponed an announcement this week on the sale of shares in Meridian Energy, sparking doubts about whether the sell-off will go ahead on schedule in November. Opposition MPs believe the sale has been stalled by embarrassing revelations about the public bailout of Tiwai Pt aluminium smelter, Meridian's biggest electricity customer. It is understood the Treasury had been due to announce details of a share "pre-offer"on Thursday or Friday, but abruptly pulled the announcement after news broke of its concerns about the $30m bailout. On the streets of Auckland yesterday, views were mixed on the impact of the delay. Simon Dromgool, an engineer from Tauranga, said it would not deter him from buying shares. "I see it as positive long-term investment." Julie Huckson, a student...
Aluminium Bahrain B.S.C. (Alba)'s Chief Executive, Tim Murray announced the appointment of three new managers in key departments of the company. Amal Abdul Rahman Ahmed will be the new Marketing Manager for GCC, Middle East & North Africa; Fadhel A. Nabi will be the Manager for Procurement & Warehousing; and Waleed Tamimi will be the Manager for Operational Excellence. Commenting on the appointments of the new managers, Alba's Chief Executive Officer, Tim Murray said: "Alba remains committed to provide opportunities for growth to talented employees in the organisation, and in empowering them with greater responsibilities. Amal, Fadhel and Waleed have each demonstrated excellence in their performance and am confident that they will continue to show similar success in their new positions."...
An estimated 1,500 people held a demonstration on Saturday against the planned closure of Bogoslovsk Aluminum Smelter, the facility's trade union leader said. The protesters were mainly workers from the smelter, which is located in the town of Krasnoturyinsk, and other local people. They marched along one of the town's main streets to a square. On the square, they held a rally during which they approved appeals to the Russian government and Sverdlovsk region administration to support the region's aluminum industry and reduce electricity prices for it, the smelter's union leader, Nikolai Prokofiev, told Interfax. "We have sent requests to the governments of Russia and the region. All they do is to make promises, but there has been no support at all. There was no one from the regional...
Miner Vedanta Resources on Monday said that it had chosen Tom Albanese, former chief executive of peer Rio Tinto, to be its chairman. "Vedanta announces that Tom Albanese is joining the group as the chairman of its subsidiary, Vedanta Resources Holdings Ltd," a statement said. Albanese stepped down as boss of Rio Tinto at the start of the year after the Anglo-Australian miner posted its first annual loss in 18 years on hefty writedowns at its Mozambique coal and aluminium businesses. London-listed Vedanta traces its origins back to India, where tribal leaders have recently rejected plans by the company to mine bauxite, or aluminium ore, in the country's east.
The world’s largest aluminum producer, Russia’s UC Rusal, matched calls made last week by Alcoa Inc. for the London Metal Exchange (LME) to release more detailed data on long and short positions as well as details of which parties are holding aluminum inventories. “There is a need for greater transparency in the London Metal Exchange’s disclosure of commercial and non-commercial positions on the exchange,” Oleg Mukhamedshin, Rusal’s deputy chief executive is quoted as saying by Reuters. In the US, the Commodity Futures Trading Commission (CFTC) requires the LME’s closest competitor, CMA, to release detailed positioning information. The data comes out as a weekly report, the Commitment of Traders, but the CMA does not run an aluminum contract and its copper contract features much lower...
Emirates Aluminium's Phase II expansion project in Abu Dhabi, UAE, produced its first hot metal Sunday, three months head of schedule, Emal said. At 1.7 km, Emal Phase II has the longest potline in the world, consisting of 444 reduction pots, and will raise total annual production capacity at the company's Al Taweelah smelter to 1.3 million mt from the previous 750,000 mt. Emal is a joint venture between Dubai government-owned Dubai Aluminium and Abu Dhabi government-owned Mubadala Development. In June, Mubadala and Investment Corporation of Dubai announced the creation of Emirates Global Aluminium, which will integrate the businesses of Dubal and Emal. Once the Emal Phase II expansion is complete, Emirates Global Aluminium will be the fifth-largest global aluminum company by production,...
China Power Investment Corp. (CPI) entered an agreement with the Guinean government early this month to build a massive aluminium production base in the African country. CPI plans to invest $6 billion in phase one to build a 4 million-tpy alumina plant and supporting facilities, various Chinese media reported. Supporting facilities include a 13 million-tpy bauxite plant, an exclusive port with throughput capacity of 8 million tpy, a 300-megawatt coal-fired power plant and a 150-kilometers-long ore pipeline and road, according to the reports. The Chinese corporation’s general manager Lu Qizhou signed the agreement with Guinean government officials in Conakry on September 6. CPI aims to make the project a showpiece of developing circular economy and to bring about leapfrog development in...
Press Metal Bhd, which owns aluminium smelting plants in Mukah and Bintulu, is selling its loss-making facility in China. Its 90%-owned unit Hubei Press Metal Huasheng Aluminium and Electric Co Ltd, had entered into a final asset settlement agreement with Hubei Hashing Aluminium and Electric Co Ltd (HHAE) and Qianjiang City Qiansheng State-owned Enterprise (QCQ). Under the deal, Hubei Press Metal will dispose of all its assets to HHAE, except its wholly-owned subsidiary Press Metal International (Hubei) Ltd (PMIH) and the leasehold land occupied by PMIH and certain liabilities, Press Metal said in a filing with Bursa Malaysia. The assets to be transferred to HHAE include the aluminium smelter and power plant and the land occupied by them. PMIH is principally engaged in the downstream...
Some Main Japan ports (MJP) aluminium premium deals for delivery in the fourth quarter have settled at $245-247 per tonne while buyers and sellers are hoping to close negotiations at Metal Bulletin’s aluminiun conference in Geneva this week. A trader in Japan said “we haven’t fixed anything yet but have heard some portions settling at $245 per tonne”. “It will probably settle at $245-247”, he added saying his colleagues were hoping to fix the premiums in Geneva. Metal Bulletin’s 28th International Aluminium conference will be held at the InterContinental in Geneva, Switzerland from September 17-19. Rio Tinto had opened talks for Q4 MJP premiums via a detailed letter it sent to clients on August 24, offering a premium of $250 per tonne. But buyers have been pushing for lower premiums....
Local implementation is key to China's recent efforts to curb overcapacity in its aluminum sector, said the head of Russian aluminum giant United Company RUSAL (UC RUSAL) at the 2013 Summer Davos. In an interview with Xinhua, Oleg Deripaska, chief executive officer (CEO) of UC RUSAL, said the company foresees a substantial slowdown in China's aluminum capacity growth due to a price decrease and the recent regulations issued by the Chinese central government. "New standards for the aluminum industry are under way, increasing industry entry thresholds for new projects and operational standards for existing plants," Deripaska said, adding that this is a stage that all emerging economies must reach during their development. But he noted that implementation of the measures issued by the...
Aluminum consumption this year will be 7 percent higher than in 2012, and the industry can look forward to stable growth for the next decade, United Co. Rusal chief executive officer Oleg Deripaska said Sept. 11 in a televised interview at the World Economic Forum in Dalian, China. Deripaska acknowledged that the current aluminum market oversupply is a result of producers pushing metal into warehouses when demand collapsed in 2008, but pointed to strong demand growth in emerging markets as the driver for change in the balance of supply and demand. Technological advances based on aluminum’s light weight and conductivity, as well as its recyclability and ease of use, will add momentum to that growth, he added. Deripaska’s comments followed those he made in an interview with AMM sister...
The role of Emirati females in the expansion of Emirates Aluminium (EMAL) will be a central feature of a ceremony to celebrate the latest landmark of the UAE industrial flagship. The prominence of local women during the event is a reflection of their contribution to economic progress and highlights how EMAL is empowering women in the workforce – a key objective of the 2030 Vision. From procurement to energising the pots, EMAL’s female engineers and managers have been integral to the company reaching the milestone of First Hot Metal and an example of Emirati excellence. Commenting on the role of Emirati women at EMAL, President and CEO, Saeed Fadhel Al Mazrooei said:“Female Emirati engineers and managers have been leading the way at EMAL as we expand into one of the world’s largest...
Norwegian aluminium producer Hydro has asked Enova for support in connection with a project to test next-generation aluminium electrolysis technology at a pilot plant in Karmøy, Norway. The plant will have annual production capacity of 70,000 metric tons with the aim of testing the world’s most energy-efficient aluminium technology in a full-scale industrial environment. The Norwegian government-owned organization Enova has established a program to support energy- and climate-related technology in industry. Hydro and Enova have been in talks on how to realize new, groundbreaking technology that can reduce energy consumption and emissions from Norwegian industry. A 70,000-mt pilot plant in the application is estimated to cost about NOK 3.5 billion. Hydro has applied for support under...
Prime Minister John Key was on the phone to Pacific Aluminium boss Sandeep Biswas offering him millions of taxpayer dollars to keep the Tiwai Point smelter open, just two days after his ministers largely discarded the idea, Treasury documents show. The documents released yesterday show Mr Key picked up the phone after Mr Biswas wrote to him seeking "Government involvement", despite Treasury's warnings not to get involved. The papers detail year-long negotiations between Meridian Energy and Pacific Aluminium over the price of electricity which ended last month when the Government made a $30 million payment to the smelting company. While Pacific Aluminium - which is largely owned by mining giant Rio Tinto - threatened to close the smelter if it didn't get a lower power price, Treasury...
The new President of the Gesamtverband der Aluminiumindustrie e.V. (GDA) in Düsseldorf is Heinz-Peter Schlüter. He was elected at GDA's general meeting in Düsseldorf on 12 September 2013, succeeding Friedrich Brökelmann, who held this position since 2007. GDA members again elected Oliver Bell, Executive Vice President for Rolled Products, Norsk Hydro ASA in Oslo, and Oliver Höll, Managing Director of Karl Höll GmbH & Co. KG in Langenfeld to the positions of vice presidents of the association. Dr. Hinrich Mählmann, partner with unlimited liability of OTTO FUCHS KG in Meinerzhagen, was confirmed in his office of treasurer. Heinz-Peter Schlüter (64) is Chairman of the supervisory board of Trimet Aluminium SE in Essen. At the same time he is sole director of the parent company, Trimet SE....
