Week in Review: Major headlines from the primary aluminium sector

The week has seen a few major happenings in the primary aluminium industry. Hindalco has created stir in Indian market by launching QIP.

Hindalco's first share sale through QIP generates 3X demand

India's first ever metal industry share sale through qualified institutional placement (QIP) floated by Hindalco Industries generated overwhelming response in the market last week. Institutional investors lapped up the shares which went on to reinforce their confidence in the aluminium major’s manufacturing success. Hindalco Industries Ltd raised US$550 million over the last weekend through the QIP.

The QIP- the largest non-bank issue since Indiabulls’s QIP in 2015, saw demand surging more than 3 times and exceeded US$1.5 billion, reported sources aware of the matter. Hindalco had priced the QIP at a premium of 2.7 per cent to the Sebi floor price of INR 184 per share.

Japanese buyers offered aluminium premium of $135 per tonne for April-June quarter

As reported by Reuters, three major aluminium producers, South32 Ltd, Rio Tinto Ltd and UC Rusal have offered aluminium premium of $135 per tonne to Japanese buyers for shipments in the April to June quarter. According to sources from the pricing sector, this records a 42% increase from previous quarter. This offer would mark the second quarterly increase continuously. The increase is driven by rise in premiums in the United States and Europe and falling inventories Japan due to solid local demand.

China's Feb aluminium production rises 21%

Despite news in the international media about the Chinese government halting production at many smelters to curb pollution, the first-hand production data collected by Shanghai Metals Market from the country's major aluminium smelters shows aluminium production in February this year has risen from the year ago period by 21.1 per cent to reach 2.838 million tonnes. The cumulative production for the last two months of the current calendar year stands at 5.876 million tonnes, up 21.6 per cent from the corresponding period previous year.

Ghana outlines plans for an integrated aluminium industry

The Minister of Finance, Ghana, Mr Ken Ofori-Atta, has expressed the government’s desire to fast-track economic development of the country during the presentation of the 2017 budget statement . The government has decided to develop an integrated aluminium industry through six stages under this plan. The six stages include development along the entire value chain of aluminium starting from bauxite mining to the value added aluminium products, power plants and logistic infrastructures.

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Indonesian government to develop smelting facility in North Kalimantan

Airlangga Hartarto, Minister of Industry, has announced that the government will develop a smelting facility in North Kalimantan in Indonesia.  Presently, Indonesian government has not utilized the regions alumina and bauxite potentials in Kalimantan.

All these development have indicated the positive expectations generated among the industry players and the market participants as a result of the recent gains in the LME aluminium prices.