Vedanta Aluminium reported record quarterly production across aluminium, alumina and value-added products in Q2 FY27, supported by capacity expansion and efficiency improvements. Vedanta Aluminium Metal Limited, India’s largest aluminium producer, recorded its highest-ever quarterly aluminium production of 649,000 tonnes in Q2 FY27, up 5 per cent year on year from 617,000 tonnes in Q2 FY26. Aluminium output also increased 3 per cent quarter on quarter from 632,000 tonnes in Q1 FY27. For the first half of FY27, production reached a record 1,281,000 tonnes, up 5 per cent from 1,222,000 tonnes in H1 FY26. The company attributed the increase to new smelter volumes and efficiency improvements across existing production lines. Alumina output jumps 37 per cent Vedanta Aluminium’s alumina...
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...
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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....
In October, the London Metal Exchange (LME) will decide on a proposal to shorten delays in delivery of aluminium from the exchange’s warehouses. Investors would do well to keep a watch, as it could affect the performance of aluminium companies. Aluminium buyers, such as beverage can makers in the US and Europe, have nursed a grudge that they are paying higher prices. Though metal prices have declined due to global economic conditions and sufficient capacity, their grouse is rising regional metal premiums are negating the benefits. These premiums depend on regional demand-supply conditions. As of end-June, spot aluminium price on LME had declined by 7.8% over last year, but regional metal premiums for Europe were up by 12% and up by 16% for midwest US, according to Alcoa Inc., the world’s...
It is not all that good for Alcoa Inc as it has been forced to close some of its aluminum plants to reduce the production of aluminum by 164,000 tons. These plans are aimed at ensuring a balance between supply and demand. The close of some of the plants will reduce the aluminum capacity by approximately 460,000 metric tons, this cut announcements were initially made in May The closure of these plants has been precipitated by the increasing competition from China; the 15% slump in prices of Aluminum on the other hand has not done any good to the New York Based company. This outcome has made Alcoa Inc fall into margins of worst performing companies in the Dow. Alcoa has been experiencing bad news over the past years, the worst being the credit rating cut by Moody’s investor’s service. After...
The Japanese majority-owner of Indonesian aluminum producer PT Inalum said there was still a big gap to bridge in talks to sell its stake to the Indonesian government, with less than two months to go before their joint venture agreement expires. Yoshihiko Okamoto, chairman of Japan's Nippon Asahan Aluminium, told Reuters on Thursday the talks would continue until the end of October, but if no agreement was reached by then, it would take the issue to an international mediator. "As of today, there is a large gap between us and the Indonesian government on sale price and other sales terms," he said, without elaborating. Nippon Asahan, a consortium of 12 Japanese firms which holds 58.88 percent of PT Inalum, is in talks to sell its stake to the Indonesian government, which owns the rest,...
China's primary aluminium production rose 1.3 percent from the previous month, hitting a record 1.863 million tonnes in August 2013, the data showed. The output increased 5.2 percent from August 2012. New capacity in northwestern regions such as Xinjiang had helped push up aluminium production, Yang said. The bulk of existing operating capacity was still running, thought some were making losses due to low prices, he added. Spot aluminium prices AL-A00-CCNMM in China have fallen near 5 percent so far this year to 14,340 yuan ($2,300) on Thursday because of oversupply problem in the industry. China produced 14.349 million tonnes of primary aluminium in the first eight months of the year, up 8.2 percent from the same months in 2012, the data showed. Henan was the top producing province in...
Emirates Aluminium, known as Emal, took another step towards becoming the world’s biggest single site aluminium smelter yesterday as its third production line made its first hot metal. Completed three months ahead of schedule, the line is part of Emal’s Phase II expansion project, which will boost production to 1.3 million tonnes of aluminium per year from 800,000 tonnes per year at present. The plant will reach full capacity next May. The expansion of Emal is part of the Abu Dhabi Government’s 2030 plan to diversify the economy and reduce its dependence on oil and gas. The US$6 billion Phase I expansion ran from 2007 to 2011. On its completion, Emal decided to almost double its annual production by expanding for a second time. The metal produced by Emal contributed 0.4 per cent to the...
The huge overcapacity overhang of Chinese Aluminium in the domestic markets has forced the government to suggest some concrete steps to the smelters. China Aluminium production has increased at a drastic pace leading to supply side glut and rising LME inventories to all time highs. Facing the issue, China policy makers are suggesting a three phased approach for the Aluminium smelters. 1. The first suggestion is that Chinese Aluminium smelters should focus on shifting their domestic capacities outside China. This is likely to control the huge amount of capacities being build within the country. Although, this measure is for long term, because shifting these smelters is a herculean task. 2. Improvement in consumption is the other step being suggested by the Ministry of Industry and...
LME aluminium remains steady on a downtrend and is expected to revisit its Sept. 4 low of $1,785. Wave pattern shows that aluminium is riding on a wave 5, the fifth wave of a five-wave cycle that started at the Aug. 19 high of $1,949. It is expected to travel below the preceding wave 3 trough at $1,785. A small triangle is contracting to a point, likely to be confirmed bearish, as it followed a short downtrend developing from the Sept. 6 high of $1,833.75. Resistance is at $1,816, a break above which will indicate an extension of the wave 4 towards $1,837, the 38.2 percent Fibonacci retracement on the fall from the Aug. 22 high of $1,920 to $1,785. No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own...
Treasury advised the Government not to pay the owners of the Tiwai Point aluminium smelter to keep the business running during negotiations over power prices with Meridian Energy, documents released this afternoon show. Early last month the Government made a one-off payment of $30 million to New Zealand Aluminium Smelters' owners to help secure a revised contract with Meridian "because of the importance of the smelter to the stability of the New Zealand electricity market" and "because it offers investors more certainty" ahead of the Government's sale of Meridian, Finance Minister Bill English said at the time. But a year earlier Treasury advised ministers that any request for "Government assistance" from the smelters' owners "should be rejected, because it would result in a significant...
As in prior years, the role of the UAE primary aluminium sector within the global industry will again be promoted by Dubai Aluminium and Emirates Aluminium at the 28th International Aluminium Conference, organised and hosted by Metal Bulletin in Geneva, Switzerland, from 16 to 18 September 2013 (“MBI 2013”). The two businesses will have a combined stand in the exhibition component alongside the conference, and Yousuf Bastaki, EMAL’s Vice President: Projects, is among the line-up in the opening session’s executive industry panel – the focus of which will fall on global industry challenges and strategies. Eminently qualified to participate at this forum, Bastaki has more than 25 years smelting industry experience and lead the team responsible for the construction of EMAL Phases I and II,...
Aluminum buyers in Japan, Asia’s biggest importer, won the first cut in nine months on fees they pay to producers as London Metal Exchange proposals to ease the backlog at warehouses pushed down global premiums. The fee for the three months starting in October fell to $245 a metric ton over the price for immediate delivery on the LME from $249 to $251 this quarter, said three executives involved in the negotiations. They asked not to be identified as the talks are private. The LME has proposed obliging warehouses where waits extend for 100 days or more to let more metal out than they take in. Premiums to obtain metal will drop 60 percent to about $100 as a result of the rules the bourse is expected to approve in October, according to JPMorgan Chase & Co. The global market is heading for...
A crucial project launched to tackle premature component failure at a Brammer-supplied Icelandic facility is delivering huge cost savings for client Rio Tinto Alcan. The initiative to upgrade pivotal equipment has so far saved the customer in excess of £12,000. The project is the latest in a long line which demonstrate the commitment of Brammer – the UK’s leading distributor of industrial maintenance, repair and overhaul (MRO) products and services – to reducing costs and optimising productivity for its customers. Rio Tinto Alcan is a global supplier of high quality bauxite, alumina and aluminium. The project was instigated at the Straumsvik plant in Iceland - where alumina is smelted to produce aluminium - in response to the premature failure of hydraulic hoses on production-critical...
Brazilian aluminium exports fell 35.8% year-on-year in August as European countries like the Netherlands received fewer shipments. Volumes sent abroad totalled 30,262 tonnes, from 47,162 tonnes in August 2012. Revenues in the month totalled $57.51 million, compared with $87.81 million a year ago. Exports from January to August amounted to 288,646 tonnes, down 13.1% year-on-year. Japan was the main buyer with 18,657 tonnes, a 1% reduction year-on-year. The Netherlands bought only 248 tonnes, down from 5,084 tonnes a year ago. No imports from Switzerland were reported, compared with 12,081 tonnes in August 2012. By contrast, the USA increased imports to 10,690 tonnes from no shipments in August last year.
A group of aluminum users, including MillerCoors LLC and other makers of drink cans, have said the London Metal Exchange's proposal to overhaul its controversial warehousing policy will "fall short" of solving the long wait times and inflated prices. In a letter dated Sept. 9, the so-called "aluminum users group" called on the LME to implement even bigger changes, which they say will end long wait times, increase transparency for physical pricing and restore user confidence in the exchange. Without that, there will be "more dysfunction, more manipulation and more harm", the letter from the group said. It also asked for a meeting with the LME. The letter was in response to dramatic changes announced by the LME on July 1, aimed at soothing irate industrial users who say the LME's...
Nearly half of China's aluminum production capacity is unprofitable, state-run China Daily quoted the chief executive officer of Alcoa Inc. Klaus Kleinfeld saying in a report Wednesday. Some "41% of China's aluminum smelting capacity is unprofitable due to low aluminum prices and high production cost," said Mr. Kleinfeld, also chairman of the world's third largest aluminum producer by output. "The Chinese government is taking steps to try to curb overcapacity, but it is not easy to decommission large, complex facilities," he said. Mr. Kleinfeld said Alcoa is "open to exploring opportunities abroad with Chinese partners." The company has a partnership with state-owned power producer China Power Investment Corp. to produce high-end fabricated aluminum products for the aerospace, automotive,...
The outlook for aluminium has stabilized, with consumption improving, according to the head of the world's biggest aluminium company, Oleg Deripaska. Deripaska, chief executive of Russian producer Rusal, predicted more stable economic growth around the world over the next 5-10 years, and consequently more stable growth in the aluminium market, in an interview with CNBC at the World Economic Forum in Dalian. "Finally, everything has settled," he said. Aluminium prices hit four-year lows earlier this year, amid fears that new rules about storing the metal in a warehouse could flood the market with it. Deripaska argued that Rusal is at an advantage in China because of its relatively environmentally friendly production techniques,compared to coal-fired industry. The billionaire, an ally of...
Hindalco Industries stands to benefit from the weakening of the rupee against the dollar, as copper and aluminium prices are dollar-denominated, Chairman Kumar Mangalam Birla told shareholders at the company’s 54th annual general meeting on Tuesday. “The only foreign loan we (Hindalco Industries) have is of $100 million and so the impact of rupee devaluation will be extremely marginal,” he said. In the year ended March, the company’s exports worth Rs 7,500 crore accounted for 30 per cent of total production. “To sell more in the domestic market was a conscious decision of the company,” Birla said. Regarding its three new projects, the chairman said on their completion, Hindalco’s revenue would double to Rs 16,000 crore from Rs 8,000 crore at present and the earnings before interest,...
The US firm Bechtel is setting up a Dubai office for its mining and metals division, as the company sees growing opportunities for the sector in the Arabian Gulf. Bechtel, one of the largest engineering and construction companies in the world, wants to tap into a market where it estimates contracts worth US$6 billion have been awarded in the past 12 months. "We recognise the growing importance of the Gulf region as a strategic hub for our business," said David Welch, Bechtel's president for Europe, Middle East and Africa. "We are optimistic about the business opportunities in the region and we believe the outlook is strong. In addition, the region has excellent connections to European and North African markets." The company has already made inroads into the GCC's metals sector, and is...
