The London Metal Exchange (LME) aluminium price chart reported declines on the November 10 trading session after a temporary surge at the November 9 close. Both near-term and longer-dated contracts posted over 1 per cent dip over the previous session. The LME aluminium cash bid as well as offer prices contracted 0.32 per cent day-on-day on November 10. The bid shifted from USD 3,145 per tonne to USD 3,135 per tonne. The offer price dipped from USD 3,147 per tonne to USD 3,137 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 1.11 per cent decline from USD 3,059 per tonne on November 9 to USD 3,025 per tonne on...
Futures: SHFE aluminium closed at RMB 23,170 per tonne in the daytime session (down 0.22 per cent), moving sideways. Prices barely held above the MA5 (23,111) but were capped by the MA10 (23,199) and MA30 (23,352), with the bearish alignment of moving averages unchanged. The MACD formed a golden cross below the zero axis (DIF -132.31, DEA -150.30), with the red histogram expanding to 35.98, but trading volume shrank sharply to 43,600 lots, and the volume-price divergence limited the rebound height. The core trading range for SHFE aluminium is suggested at 22,900-23,400. LME aluminium closed at USD 3,082 per tonne (up 0.31 per cent). Prices held above the MA5 (3,063.8), MA10 (3,072.5), and MA30 (3,068.4), but remained capped by the MA60 (3,166.4), in a weak recovery phase within the...
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China’s aluminum consumption will grow at an annual rate of 10.5 percent to 27.5 million tons by 2015 amid continuous urbanization and investment in infrastructure and construction, said Rusal Marketing GmbH. Growth will slow from the 17.2 percent rate during 2005 and 2010, Chief Executive Officer Steve Hodgson said in a speech at a Metal Bulletin conference in Shanghai. China is unlikely to support Asian demand for primary aluminum and may reduce demand from the region with rising exports of semi-finished products, he said. Rusal will invest in a company in Shenzhen to act as its trading vehicle in China, Hodgson said. It agreed in November to buy a stake in an affiliate of China North Industries Corp., or Norinco. Aluminum on the London Metal Exchange has climbed 3.3 percent this year...
Researched by Industrial Info Resources (Sugar Land, Texas) -- Rio Tinto Alcan (Montreal, Quebec), the aluminum manufacturing branch of Rio Tinto plc RIO +2.80% , and Cahya Mata Sarawak Berhad (kl:CMSBU) (Sarawak, Malaysia) have mutually terminated their memorandum of understanding (MoU) to build a $2 billion dollar aluminum smelter in Malaysia's Sarawak state. The companies were unable to reach a commercially viable power purchase agreement for the smelter. Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting...
LME aluminum closed down USD 7/mt or 0.34% at USD 2,073/mt on Wednesday as a surge of over 9,000 mt in aluminum stocks and the sharpest drop since 2009 in US durable goods orders in March overshadowed strong annual reports from the US and Fed’s decision to maintain low interest rates until late 2014. Cautiousness will stay in today’s markets and aluminum should continue to move within a narrow band. LME aluminum is expected to test resistance at the 20-day moving average and hove between USD 2,065-2,095/mt. The most active SHFE aluminum contract for July delivery should move between RMB 16,120-16,180/mt as it tests 10-day average support. Spot aluminum is expected to trade at discounts of RMB 30/mt to premiums of RMB 10/m over the current-month SHFE aluminum price as more traders...
Aluminium prices have suffered disproportionately over the past month, falling by close to 10% since the beginning of March. A modest increase in LME open interest levels since mid-March supports the view that CTA shorting has been a key factor behind the downward move. From a fundamental perspective, there has not been a justification for the degree of price move. The market balance has moderately tightened, and the risk from closures at current price levels (close to 2.5Mty capacity ex- China is unprofitable) should limit further downside. The IAI production figures for February offered sharply divergent regional trends. Following the announcement of several cutbacks to capacity in the US and Europe at the turn of the year, the IAI data confirmed this with global output ex- China...
Aluminum Corp. of China Ltd. isn’t letting its stalled takeover of SouthGobi Resources Ltd. stop its coal ambitions. On Monday evening, the company, also known as Chalco, said it would buy a 29.9% interest in Hong Kong-listed Winsway Coking Coal Holdings Ltd. for HK$2.39 billion (US$307.9 billion), to become the companys’ single largest shareholder. The price, at HK$2.12 a share, is a 22.5% premium over Winsway’s closing price of HK$1.73 on Friday. Earlier this month, Chalco’s plan to diversify away from aluminum into coal by buying a controlling stake in SouthGobi Resources Ltd. from Canada’s Ivanhoe Mines Ltd. was dealt a blow when the Mongolian government said it was reviewing the proposed change of ownership. It suspended certain exploration and mining activities by SouthGobi in...
Vimetco NV, the global producer of primary and processed aluminium products, announces the shortlist of contractors for the construction of its own power plant in Tulcea. The project is developed by Vimetco Power Romania, a company belonging to Vimetco Group and consists of building a 250 MW cogeneration plant at Alum Tulcea with the possibility of financial support from the European Bank for Reconstruction and Development as well as commercial banks. The three companies selected for negotiations of the EPC contract are the Itochu & Hyundai consortium, Metka and Siemens. The negotiations should be finalized by the end of May 2012. “We are planning a plant that will be a cogeneration unit supplying electricity for Alum and partly for Alro, steam to Alum and hot water for district heating...
United Co. Rusal, the world's biggest aluminum supplier, is locked in to selling $43 billion of the metal to Glencore International Plc over seven years in a contract that's fueling a feud among billionaire investors, four people familiar with the accord said. Glencore agreed to the deal in the fourth quarter as premiums paid by buyers reached near-record highs, according to the people, who declined to be identified as the terms aren't public. Buyers in Europe paid an average $130 a metric ton more than the London Metal Exchange price in the final three months of 2011. Rusal will sell about 1.4 million tons this year as part of the accord, the people said. Investor Victor Vekselberg's Sual Partners Ltd. is seeking arbitration, saying the contract, which accounts for a third of Rusal's...
On April 20, 2012, Indian primary aluminum jumped up 0.9 percent, landing north of $2.00 per kilogram and making it the day’s biggest increase. The cash price of primary aluminum weakened on the LME by 0.6 percent, settling at $2,016 per metric ton. Also on the LME, the 3-month price of primary aluminum declined 0.6 percent to $2,056 per metric ton. Chinese aluminum prices closed mixed last Friday. Following a couple of essentially changeless days, the cash price of Chinese primary aluminum rose by 0.1 percent on the SHFE, closing at CNY 16,020 ($2,541) per metric ton. The price of Chinese aluminum scrap held steady in the mid-$2,600 per metric ton range. Chinese aluminum billet stayed flat at around the mid-$2,500 per metric ton range, while the Chinese aluminum bar price saw little...
Japanese aluminum rolling mills and two producers of primary aluminum have started discussions on term volumes for the third quarter, ahead of the premium negotiations which are likely to start in the week beginning May 21, company sources said Monday. The rolling mills want to secure their required volumes for the coming quarter as early as possible, as spot supplies are expected to stay tight, mill and producer sources said. One source said a handful buyers had suggested securing the required volume for the remainder of the year. Such requests had made it difficult to offer spot cargoes, as the producers in general need to plan for term customers first before selling spot, said one producer source. Japanese term contract volumes range from 200-5,000 mt/month, according to market...
Aluminum Corp of China Ltd said it has agreed to buy 29.9 percent of imported coking coal supplier Winsway Coking Coal Holdings Ltd for HK$2.39 billion ($307.92 million) to strengthen its downstream logistics operations. In a filing to the Hong Kong stock exchange late on Monday, the China's top aluminium maker said it would buy 1.13 billion shares of Winsway Coking Coal from parent Winsway Resources Holdings Ltd at HK$2.12 per share. Chalco said it would become the single largest shareholder of Winsway on completion of the deal, which would allow further integration of its investments in the coal sector, in particular trading of coal from Mongolia and the proposed acquisition of SouthGobi Resources Ltd . Winsway shares ended 8.7 percent higher at HK$1.88 on Monday, while Chalco fell 3.9...
Boyne Smelters Limited (BSL) had a big moment on Friday when it officially opened its new, much-anticipated Carbon Bake Furnace 4 (CBF4). The development is part of a $720 million upgrade at the plant, launched in 2008 and designed to improve productivity and environmental performance. A carbon bake furnace is basically a super-sized oven that bakes blocks, called 'anodes', which are required in the aluminium production process. The new furnace will typically produce 2500 carbon anodes per week, while burning less natural gas that the original Carbon Bake furnaces 1 and 2. The 1.2 tonne anodes are loaded into the furnace by crane and heated at temperatures over 1200 degrees Celsius. The heating and baking process takes about 18 days, after which time the blocks are removed from the bake...
United Co. Rusal Chief Executive Officer Oleg Deripaska expects aluminum prices to be in a range of $2,200 to $2,400 a ton this year. While the aluminum market is “very shaky,” high physical demand is pushing up premiums, Deripaska told reporters at a briefing in London today.
Vedanta controlled Bharat Aluminium Company Ltd (Balco) in Chhattisgarh apparently didn't bother to seek "mandatory" permission from the Korba Municipal Corporation (KMC) for its projects in the area. Documents obtained from the KMC under the right to information (RTI) have revealed that despite several notices having been served to Balco in the last few years to halt construction, it continued with the work without the necessary permits. Some of the major projects are being carried out in the industrial town of Korba, including a couple of thermal power plants. Balco has not only completed the construction of a 540 MW plant in Korba, a case against which is pending in the court, it has also began constructing another 1,200 MW power plant, 80 per cent of which is complete. No permission...
Vedanta Aluminium's Lanjigarh project in Odisha may become another Kudankulam, as environment activists belonging to foreign non-Government organisations (NGO) have suddenly surfaced to show their concern. Vedanta Aluminium's plan to expand its annual capacity from 1 million tonnes to 6 million tonnes has been halted due to environmental concerns. The company is now in the process of going for a fresh public hearing on the basis of new terms of reference. Meanwhile, according to sources, two Australians have forwarded their environmental concerns regarding Vedanta's expansion through the High Commissioner of India in Australia. However, Government sources here refused to comment on the matter. But, documents with Business Line show that one letter, signed by one Mr J.W. Peter of PF Trust...
Russian aluminum producer United Co. Rusal PLC (0486.HK) said Friday that the aluminum market is still plagued by excess production capacity with a quarter of the global market operating at a loss. Chief Executive Oleg Deripaska told reporters in London he expects the aluminum price to hover around $2,200-$2,400 a metric ton to this year but not more, as China faces a deficit of 600,000 tons and customer stocks around the world are at 10-year lows. He noted, however, that worldwide aluminum stocks are still high and largely tied up in financing deals. Deripaska estimated that about 5.2 million tons or 27% of China's production capacity is loss-making at the moment but noted that they can't stop operating because if they did, they would soon enter bankruptcy given their high debt levels....
UC RUSAL , the world's largest producer of aluminium, will decide on the scale of planned capacity cuts once Russia details tariff increases delayed by the country's elections, Chief Executive Oleg Deripaska said on Friday. Aluminium producers have been badly hit by soaring power and other costs, forcing major producers including U.S.-based Alcoa Inc to slash capacity in an effort to counter a supply glut and weak prices. Deripaska said a quarter of global production was operating at a loss. RUSAL said earlier this year it could cut its aluminium output by up to 6 percent, but has not yet detailed the cuts, pending increases in energy and other tariffs expected in July, after months of freezes as price increases were kept on hold while Russians voted. "They have no other option but to...
An RTI query has revealed that the Vedanta-controlled Bharat Aluminium Company Ltd (Balco) blatantly violated norms in Chhattisgarh by not seeking "mandatory" permissions from the municipal corporation for its completed and under-construction projects, including a couple of major thermal power plants in the industrial town of Korba. Documents made public by the Korba Municipal Corporation (KMC) show that Balco was served several notices to halt construction work at a number of its projects over the past few years. But the company did not adhere to the notices and continued without the necessary permits. In fact, Balco completed construction of a 540 MW plant, a case against which is pending in the court, and began work on another power project of 1200 MW, which is now 80 percent complete....
LME aluminum hit a low of USD 2,050/mt overnight as risk aversion investors moved to the safer dollar following release of weak manufacturing data from both China and Europe. The light metal recovered a little bit at the tail of trading after US dollar retreated, settling USD 16.3/mt or 0.78% lower at USD 2,062/mt. The market sentiment will remain slightly bearish due to sluggishness in global economies. LME aluminum is expected to test support at USD 2,050/mt and move between USD 2,050-2,080/mt during today’s trading. The most active SHFE aluminum contract for July delivery should hover between RMB 16,000-16,095/mt as it tests support at the RMB 16,000/mt mark. Spot premiums over the current-month SHFE aluminum price may expand to RMB 40/mt if the latter dips below RMB 16,000/mt. The...
