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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US buyers could be forgiven for wondering what on earth is going on with aluminum prices. The LME quotation at $1950 per metric ton for cash and not much more for 3-month delivery is deeply in the global cost curve for aluminum smelters, suggesting a market in dire oversupply — a position supported by nearly 4.9 million metric tons of stocks. Yet the Midwest ingot price, the benchmark by which many contracts are indexed, is riding high at $0.9822/lb, or $2,165 per metric ton — some $200 over the LME cash price. The Midwest price has always traded at a premium over the LME, reflecting as it does the cost of delivery to the US Midwest from smelters based closer to the coast or warehouses in major metropolises, but $200 is way over the cost of delivery and reflects a market in crisis. US...
South Korea purchased a total of 3,000 tonnes of aluminium via tenders on Tuesday, the state-run Public Procurement Service said Wednesday on its website (www.g2b.go.kr). Details of the purchases are as follows: TONNE SUPPLIER PREMIUM(CIF/T) 2,000 LG International Corp $129 1,000 Glencore International AG $195 *Note: The above premiums are made over London Metal Exchange (LME) prices.
Germany's aluminium industry association Gesamtverband der Aluminium industry reported a decrease in aluminium production during the first quarter of 2012. Andreas Postler of GDA explains that this was expected and identifies the reason in the "weaker surrounding general economic conditions and the high initial levels coming from the previous year”. To recall, GDA reported a relatively good year in 2011, with a volume of 401,300 t, despite the slight decrease of 1% compared to 2010, which was attributed to technical factors and the trend towards lighter packaging and thinner foils, making deliveries smaller. During the first quarter, production of raw aluminium saw a slight decrease of 1% at 268,649 t, from last quarter. At 101,787 t the production of primary aluminium smelters was down...
The most active SHFE aluminum contract for September delivery started lower at RMB 15,845/mt and settled down RMB 60/mt or 0.38% at RMB 15,860/mt on Tuesday. Resistance at the 5-day moving average was still strong. Positions added 1,528 lots to 100,942 lots. As LME aluminum prices have been soft and continually creating new lows, SHFE aluminum will be pressured against a rebound. The most active SHFE aluminum contract is expected to struggle at the RMB 15,900/mt mark for the near term. Spot aluminum was traded at RMB 15,870-15,900/mt in Shanghai, with low-iron aluminum trading at RMB 15,960-15,980/mt. SHFE aluminum prices gapped lower following losses in LME aluminum prices overnight. Though the current-month contract narrowed losses during spot trading hours, pressure at the RMB...
Greek debt yields surged to new highs, with 18 banks being downgraded. The Greek election is also near. European factors continued to stimulate risk aversion. LME aluminum met strong resistance at and stayed below the 5-day moving average, dropping to a low of USD 1,961/mt, a new low of this year. Transacted contracts contracted to near 9,000 lots due to cautious trading. The light metal finally settled down USD 4/mt or 0.2% at USD 1,970/mt. Total positions decreased 5,860 lots to 743,670 lots. Latest LME aluminum stocks were down 11,575 mt at 4,848,625 mt. Worries towards a possible Greek euro exit reignited before the Greek election, so risk aversion will remain strong. Aluminum prices therefore will remain soft. LME aluminum is expected to test pressure at the 5-day moving average and...
Aluminium stocks held at 3 major Japanese ports came to 223,200 tonnes at the end of May down 4.9% from 234,800 tonnes a month earlier. Trading house Marubeni Corporation said that the stocks at the end of May were down 1% from 225,400 tonnes as of the end of May 2011. Marubeni collects data from the key ports of Yokohama, Nagoya and Osaka.
GE showcased the power generation and energy management system modernization project the company recently completed for Dubai Aluminum (DUBAL). The success of this initiative won DUBAL and GE top honors in the “Best Brownfield Technology” category of American Metal Market’s Awards for Aluminum Excellence. The 2012 Awards for Aluminum Excellence program recognizes the most innovative companies in the field across multiple categories, and winners are selected by a judging panel made up of leaders in the aluminum industry. DUBAL owns and operates one of the world's largest single-site aluminium smelters, and its smelter complex in Jebel Ali can produce more than 960,000 tons of quality, hot metal aluminum each year. Further, with an on-site generating capacity exceeding 2,500 MW, it supplies...
At last year’s Harbor Aluminum Outlook Conference, Jorge Vazquez and his team of highly qualified, hard working data and trend crunchers over at Harbor came together to offer a rather optimistic forecast for aluminum prices in 2012. The conclusions they came to, based on “technical indicators, industry fundamentals, output economics and prime cycle analysis” put the price of aluminum in a range of $2,350 per ton to a whopping $3,200 per ton. In the conference’s aftermath, after hearing Novelis’ Erwin Mayr speak, Lisa Reisman wrote here on the MetalMiner blog that ”it becomes hard to come to any other conclusion than aluminum prices face far more upward price risk than downside price risk. Of course global economic meltdown, raw material supply constraints,warehousing games and hijinks...
The global aluminum market will be more balanced this year and could shift into a supply deficit by 2013 as new projects fail to keep the pace with high-cost capacity cuts this year, Rio Tinto Alcan's Chief Executive said Tuesday. "Supply will become more challenging ... the market will be near a balance this year," Jacynthe Cote said at American Metal Market's Aluminum Summit in New York. Many higher-cost smelters in the 40-million-tonne-per-year market have struggled to remain profitable after prices plunged almost a third in the past 12 months, to below $2,000 per tonne. On Tuesday, aluminum hit December lows, roiled by concerns over sluggish demand and high inventories. Three-month prices on the London Metal Exchange were at $1,960 per tonne on Tuesday, close to or below many plants'...
Global aluminum smelting overcapacity will continue to persist over the next two to three years despite increasing pressure from higher costs, Tony Rizzuto, managing director and head of metals and mining research at Dahlman Rose & Co., said at the American Metal Market Aluminum Summit. "It's going to be a challenging environment for smelters unless they are on the lower end of that cost curve," he said, adding that a focus on low cost electricity and bauxite supply will be critical for primary smelting operations. Aluminum production costs will continue to rise, pressuring these supply additions. "China is going to feel some more of these pressures" as the cost of labor rises at the same time as the Chinese yuan appreciates against other currencies, Mr. Rizzuto said. About half of the...
Barclays Capital initiates coverage of India's aluminium sector, saying they are "not upbeat" about the fundamentals in the sector because of "spiraling" energy costs and "project execution challenges." However, Barclays says find valuations of Hindalco Industries "attractive" and initiates the non-ferrous metals producer with an "overweight" rating and a target price of 159 rupees. BarCap adds Hindalco's unit Novelis will benefit from "steady cash flow visibility" and says worries about asset impairments that have hit the stock recently will reverse "steadily" as the company develops captive coal blocks. Bank is less positive on National Aluminium Company, starts the stock with "underweight" rating and a price target of 49 rupees, saying its valuation premium to global peers is...
There is not a deliberate attempt by the Volta River Authority (VRA) to deny Volta Aluminium Company (VALCO) additional power to run its second pot-line, says Mr. Kweku A. Awotwi, Chief Executive of the VRA. “We are unable to supply power to enable VALCO run its second pot-line because of constraints,” he said, but assured that VRA will be in a position to do so before the end of this year. He said in late 2010 the Ministries of Energy, Finance & Economic Planning, VRA and VALCO met to discuss how best to implement a cabinet decision on the resumption of VALCO operations, taking into account the availability of adequate power in the system. It was agreed that VALCO be given power by VRA to start with one pot-line initially; and as VRA’s power situation normalises and is able to contain...
According to China Customs the import volume of unwrought copper and copper product was 419,741 tons in May increased 11.9% when compared with last month. Scrap copper imported volume was 420 thousand tons which was higher than last month. In May, import volume of unwrought aluminum and aluminum product was 91,083 tons which was lower than last month, scrap aluminum was 240 thousand tons higher than last month. Further more, China exported 61,217 tons of unwrought aluminum, the figure in last month was 54,105 tons.
Most Japanese aluminum premiums for the third quarter have been settled sharply higher than second-quarter levels due to tightening supply in the Asian market, suppliers told Dow Jones Newswires Monday. Suppliers and consumers have agreed on premiums between 200 U.S. dollars a metric ton and $210/ton to three-month aluminum prices on the London Metal Exchange compared with premiums of $115-$127/ton in the second quarter, two suppliers with knowledge of the talks said. Not all negotiations have concluded, with one supplier still holding out for premiums higher than $210/ton, one of the suppliers said. Premiums have surged in the last three months due to dwindling aluminum supply in Asia, the suppliers said. Freely available metal is hard to come by, partly due to production cuts by...
A federal judge in Pittsburgh today denied a motion by Alcoa Inc. to dismiss a bribery lawsuit filed against the company by an aluminum maker controlled by the Bahrain government. Aluminium Bahrain BSC, one of the world's largest aluminum smelters, claims New York-based Alcoa reaped more than $400 million in illegal profits by overcharging it for alumina, which is used to make aluminum. The company, known as Alba, said part of the money was used to bribe Alba senior executives and Bahrain officials. Alcoa, which has its operations center on the North Shore, claimed that Alba's complaint, filed in Pittsburgh, failed to link Alcoa executives to the alleged scheme and that, because the lawsuit centers on events overseas, federal laws don't apply. U.S. District Judge Donetta Ambrose ruled...
The most active SHFE aluminum contract for September delivery started slightly higher at RMB 15,925/mt and settled up RMB 60/mt or 0.38% at RMB 15,925/mt on Monday. Positions added 2,366 lots to 99,414 lots. Sluggish spot aluminum consumption dragged on SHFE aluminum’s rebound; short term stagflation pressured all contracts at the RMB 16,000/mt mark. The most active contract should test support at RMB 15,900/mt. Shanghai mainstream spot prices were RMB 15,900-15,920/mt, with low-iron aluminum trading at RMB 15,990-16,020/mt. China’s May economic data were mixed, and weak consumption is weakening aluminum’s momentum. The current-month contract struggled at RMB 15,920/mt. Selling interest of domestic market traders was high, but downstream buying was flat. Mainstream deals in Shanghai...
Spain’s EUR 100 billion aids ignited bullishness in the market, but as practical measures are absent, pessimism is waning, pushing up the US dollar index and eroding gains of commodities. LME aluminum hit a high of USD 2,002/mt and closed down USD 12/mt or 0.6% at USD 1,974/mt. Latest LME aluminum stocks were down 4,000 mt to 4,860,200 mt. The European debt crisis will keep aluminum prices low. LME aluminum is not likely to reach the 10-day moving average and will move between USD 1,960-1,990/mt. The most active SHFE aluminum contract for September delivery should be pressured at RMB 15,900/mt and hover between RMB 15,850-15,925/mt. Spot discounts and premiums should both stay within RMB 20/mt. Downstream will continue to purchase as-needed. Supply is sufficient and traders will actively...
The cash price of primary Chinese aluminum saw a 0.4 percent drop on June 6, 2012, making it the biggest mover of the day on global aluminum markets. Chinese aluminum billet ended the day after a 0.2 percent drop yesterday. The price of Chinese aluminum bar held steady at above $2,200 per metric ton. Chinese aluminum scrap stayed flat at below $2,600 per metric ton. Wednesday saw Indian aluminum cash price drift down 0.3 percent after a couple of stagnant days. On the LME, the 3-month price of aluminum showed little movement yesterday, hovering around $1,979 per metric ton. The cash price of primary aluminum remained essentially flat on the LME at $1,936 per metric ton.
