The London Metal Exchange (LME) aluminium price chart recovered on the November 9 trading session, wish cash reporting nearly 1 per cent gain compared to the November 6 close. Longer-dated contracts and inventories, however, edged lower. The LME aluminium cash bid as well as offer prices gained 0.96 per cent day-on-day on November 9. The bid recovered from USD 3,115 per tonne to USD 3,145 per tonne. The offer price surged from USD 3,117 per tonne to USD 3,147 per tonne . Explore- Most comprehensive and forward-looking industry-focused report — Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook The LME aluminium three-month bid price reported a 0.33 per cent rise from USD 3,049 per tonne on November 6 to USD 3,059 per tonne on November 9. The offer...
Iran is expanding its domestic aluminium manufacturing capabilities through nanostructured anodising technology, developing specialised aluminium sheets and profiles for applications across aerospace, medical equipment, electronics and automotive industries. The initiative reflects a move towards higher-value aluminium products by improving the metal's surface properties and expanding its potential industrial applications. According to Pars Today, citing Mehr News Agency, an Iranian aluminium complex is using the technology to produce aluminium components with nanostructured ceramic coatings designed to improve resistance to corrosion and wear. The complex is also working on developing specialised aluminium standards and has so far established eight standards in this field. The...
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Aluminum Corp of China Ltd (Chalco), the country's top aluminium maker, posted its fourth straight quarterly net loss in the third quarter, hurt by low aluminium prices and rising costs. Slower economic growth in China, the world's largest producer and consumer of the lightweight metal, and weakness in its property market has weighed on demand. Globally, the industry has been hit by a huge inventory overhang. Aluminium prices have dropped by one third since May 2011 peaks around $2,800 a tonne and the global stock overhang is seen weighing on prices for the next few years. Chalco's 1.08 billion yuan net loss was less than the average forecast of a 1.9 billion yuan loss from five analysts polled by Reuters, and compares with a profit of 555 million yuan in the same quarter a year earlier....
Sterlite Industries is once again attracting analysts’ attention, especially after the recent quarterly results, which were ahead of expectations. Many of them are now turning positive on the company due to reasonable valuations. More importantly, analysts believe that the contribution of zinc, power and copper segments is going to be better than expected, helping the company sustain decent growth rates. Thus, they have raised the target price for the company to Rs 125-130 per share, which is almost 25-30 per cent higher compared to its current share price of Rs 100. Given lower uncertainties and better visibility now, there is also a possibility of the stock getting re -rated. “We like Sterlite Industries as we believe most of the negatives (largely regulatory) are now priced in and the...
Finance Minister P Chidambaram on Monday said the mines ministry had moved a note for the sale of the government’s residual stake in Hindustan Zinc Ltd (HZL) and Bharat Aluminium (Balco). The matter would go to the Cabinet and the finance ministry would give its views in due course, he said. And, declined to comment on the pricing, noting he’d earlier recused from this matter. Sterlite Industries, an arm of Vedanta, had bought 51 per cent in Balco for Rs 551 crore in 2001. The deal had a call option. This meant the buyer had an option to buy the remaining government equity in the company at a future date and price. In HZL, Sterlite had acquired a part of the government’s stake in 2003 for around Rs 750 crore. The government holds 29.5 per cent in the company. The government is formalising...
Russia's RUSAL, the world's largest aluminium producer, has extended a waiver from its banks to end-2013 to meet required financial conditions on a $4.75 billion syndicated loan as it battles lower prices and high debt. The aluminium giant had reached agreement in March to get a 12-month holiday on its conditions, or covenants, under the loan and has now reached an agreement to push that holiday to the end of next year, it said on Tuesday. RUSAL, controlled by businessman Oleg Deripaska, is encumbered by net debt of $10.85 billion, which partly stems from the purchase of a stake in Norilsk Nickel in April 2008 for an estimated $14 billion. Aluminium prices have fallen 6 percent since the start of the year on concerns about weakening global demand for the metal. With the price level...
Japan’s shipments of rolled-aluminum products dropped 2.5 percent in September, the second month of decline, an industry group said today. Supplies to domestic and export markets decreased to 158,835 metric tons last month from 162,913 tons a year earlier, the Japan Aluminium Association said in a report.
State-run National Aluminium Company's ( NALCO ) profit after tax is expected to grow by 40 percent year-on-year to Rs 195 core in the second quarter of FY13. Net sales are seen going up by 7.7 percent to Rs 1,705 crore from Rs 1,583.7 crore during the same period. Earnings before interest, tax, depreciation and amortisation (EBITDA) is likely to go up by 96 percent YoY to Rs 240 crore for the quarter. EBITDA margin is expected to be at 14.1 percent as against 7.7 percent in a year ago period and 15.98 percent in previous quarter. On quarter-on-quarter basis, net sales are seen going down by 0.8 percent, EBITDA down by 12.6 percent and profit after tax down by 12.60 percent. Factors: Net sales is expected to grow on higher alumina volumes despite lower realizations Alumina production is...
Emirates Aluminium (EMAL) hosted the latest meeting of the Gulf Aluminium's Environment, Health and Safety (EHS) committee on 16 and 17 October. The committee is chaired by EMAL and representatives from all the aluminium producers in the Gulf region were given a tour of the flagship industrial project and witnessed first-hand EMAL's 'Safety First, Last and Always' culture in action. Top of the agenda was an update on the forthcoming GAC Safety conference due to be held in Bahrain on 12 November 2012. Among the other items under discussion were: how to manage heat stress amongst workers, providing EHS leadership on the shop floor, the latest updates on waste management and a review of safety and environment performance indicators. Saeed Fadhel Al Mazrooei, President and CEO of EMAL, said:...
More than 1600 jobs will be on the line at BHP Billiton's Hillside and Bayside aluminium smelters in KwaZulu-Natal if Eskom gets its way in setting aside a controversial electricity supply deal. Eskom this week said it will refer the supply contract with BHP to energy regulator Nersa. The 25-year contract dates back to 1992 when SA had a power oversupply. But now Eskom wants it to be set aside, saying the cost to the utility is too high. The contract, which is confidential, links BHP's electricity tariff to the dollar price of aluminium. It has given BHP a significant discount on its tariffs, which led it to build the electricity-intensive smelters in Richards Bay in the 1990s. Eskom said the deal will cost it more than R5-billion over the life of the contract. "An increase in the cost of...
Spiraling bond yields in Spain and Italy aggravated borrowing costs and turned investors to the safety of the US dollar. The US dollar index was firm above 80 overnight as a result. The US economic data was mixed. Trading was even thinner as the US stocks market was closed on Monday and Tuesday because of the Hurricane Sandy. Investors are eyeing the US nonfarm payrolls due this Friday. LME aluminum extended losses in the European session. With high inventories and a firm US dollar, longs exited the market after taking profits, causing LME aluminum to tumble to a low of USD 1,887/mt, a two-month low. LME aluminum regained some losses at the tail of trading before finally ending the day down USD 19.8/mt or 1.03% at USD 1,905/mt. Latest LME aluminum inventories increased by 8,200 mt to...
Producers of primary aluminum billet have offered Japanese buyers a 30-70% hike in the 6063 billet upcharge for 2013 term contracts, from $150/mt for 2012, sources in negotiations said Monday. Negotiations between Japanese rolling mills, trading houses and overseas aluminum billet producers for 2013 contract premiums started earlier this month, buyer and seller sources confirmed. Two Japanese buyers said producers are asking for $50-100/mt raises in the billet upcharge, or fee for processing primary aluminum ingot into billet that contains more silicon and magnesium than 99.7%-purity aluminum. The 6063 billet, widely used for construction material, contains 0.2-0.6% silicon and 0.45-0.9% magnesium. Buyers said producers are asking for a major hike in Japan as upcharge levels in other...
With a decline of 0.5 percent on Oct. 26, 2012, the cash price of primary Indian aluminum recorded the biggest decline of the day. The aluminum 3-month price rose 0.2 percent on the LME to $1,936 per metric ton after a two-day drop. The primary aluminum cash price is back up, rising by 0.1 percent on the LME last Friday to close at $1,909 per metric ton. Chinese aluminum prices were mixed for the day. After remaining flat for three days, the cash price of Chinese aluminum fell 0.3 percent last Friday. For the fifth day in a row, the price of Chinese aluminum scrap remained essentially flat. The prices of Chinese aluminum billet and aluminum bar remained essentially flat as well.
The Supreme Court Monday asked the Odisha government to give details of the entry tax levied by it on raw materials and machinery equipment imported from outside the country by Vedanta Aluminium limited for its aluminium refinery and smelting plant. A bench of Justice DK Jain and Justice Madan B. Lokur today asked the state government to respond on a petition moved by Vedanta challenging the levy of entry tax on imported goods entering the state under Orissa Entry Tax Act, 1999. The Orissa Entry Tax Act, 1999 allows the state government to impose a tax, not exceeding 12 percent of the purchase value, on entry of goods for consumption, use or sale in the state. The government levies different rates for different goods. Vedanta, which has entry tax liability of about Rs 130 crore, has...
National Aluminium Company Ltd (Nalco) has ceased to draw costlier power from the Odisha grid. It will now rely on captive power. According to Nalco sources, the management took this decision to reduce the cost of power purchased, since it affected profitability in the second quarter ended September 30. Nalco reported a 98 per cent decline in quarter on quarter adjusted profit after tax in the quarter to September 30. “Profit during the quarter (Q2) as compared to preceding quarter is substantially lower due to increase in power and fuel cost by about Rs 108 crore and lower sales volume of alumina by Rs 101 crore arising out of lower production”, the company said. The lower output was due to non-availability of adequate power. Nalco spent Rs 7.15 a unit for power purchased from the grid...
Angel Broking is bullish on Sterlite Industries (India) and has recommended accumulate rating on the stock with a target of Rs 110 in its October 26, 2012 research report. “Sterlite Industries’s, for 2QFY2013, net sales increased 8.8% yoy to Rs11,029cr. The growth in net sales was driven by increases in aluminium, power and zinc segments’ revenues. Aluminium, power and zinc segment revenues grew 25.3%, 46.2% and 8.4% yoy to Rs859cr, Rs910cr and Rs3870cr, respectively.” “Sterlite’s EBITDA increased by 5.0% yoy to Rs2,527cr; the EBITDA margin stood at 22.9% (higher than our estimate mainly due to better-than-expected profitability from the aluminium and power segments). The aluminium segment’s EBIT grew by 106.5% yoy to Rs43cr and the power segment EBIT grew 260.4% yoy to Rs190cr. The...
New Zealand Aluminium Smelters, which operates the smelter at Bluff, has halted $70 million of planned capital spending, citing "extremely challenging" market conditions that have eroded margins. The change affects $15 million planned for the remainder of 2012 and 2013 and follows a review of all capital and maintenance spending at the site, it says in a statement. "Given the extremely challenging market conditions, halting project work on site is one of a number of actions being taken to try and return NZAS to viability as quickly as possible," general manager Ryan Cavanagh says. "Other initiatives include the completion of an organisational restructure, including implementing redundancies, by the end of November." NZAS is in talks over electricity prices for the aluminium smelter with...
Sør-Norge Aluminium (Søral) primary aluminium plant in Norway has signed electricity contracts with Agder Energi, Lyse, Statkraft and Hydro for the long-term annual supply of up to 2.6 terawatt hours (TWh) of electricity in Norway over an eight-year period, starting in 2013. "We are pleased that Søral has been able to secure power supply, paving the way for continued operations at the plant. We have worked hard to achieve this, and we are happy that all pieces came together in the end," says CEO Per Øyvind Sævartveit at Søral. The combined contracts, together with necessary clarifications concerning implementation on CO2 compensation, will secure the basis for continued commercial operations at the Søral aluminium plant at Husnes, owned by Rio Tinto Alcan and Hydro. The plant's current...
Due to the slump in the global economy, share prices for companies in the aluminum sector such as Alcoa and Bauxite Resources have become very attractive. Alcoa, a Dow Jones 30 member, is the largest aluminum company in the world. Bauxite Resources, based in Australia, is the largest tenement holder in the Darling Range, which is the largest alumina region in the world. From this sector of Western Australia, almost one-quarter of the world's production is generated. The uses for aluminum are very diverse due to the treasured properties of the metal. As a result, it is the most flexible of the metallic elements. Aluminum is completely impermeable. It is also very lightweight, which makes it even more useful for high tech purposes. This can be seen in the wide variety of end uses. Buildings...
Dropping 1.1 percent on the LME, the aluminum 3-month price was the biggest mover on Oct. 24, 2012, closing at $1,941 per metric ton. The LME primary aluminum cash price declined 1 percent to $1,913 per metric ton. The cash price of primary Indian aluminum fell 0.3 percent. For the fifth day in a row, the price of Chinese aluminum scrap remained essentially flat; so did Chinese aluminum billet, aluminum bar and the China aluminum cash price.
