Several news in the primary aluminium industry have made round ups this week, but among them what has gained the most attention is China’s year-high aluminium imports within the 11 months of 2021, as limited domestic aluminium production due to power usage restrictions underpin demand for overseas metal.
According to China customs data, arrivals of unwrought aluminium and products, including primary metals and unwrought, alloyed aluminium, recorded a 15-month peak at 397,915 tonnes in November. That was 34 per cent up month-on-month from 297,043 tonnes and 109.3 per cent higher on the year. Total imports in 11 months amounted to 2.97 million tonnes, beating the previous annual record of 2.7 million tonnes in 2020.
On Monday, December 20, Aluminum Mini Futures dropped by -2 percent to stand at 216.15 as the COVID-19 pandemic scenario remained depressing, and the omicron version was discovered in many locations, which alarmed the market. Aluminium supply remained low, and strong downstream demand continued to push down societal inventories of aluminium ingots. SHFE aluminium, on the other hand, lost its upside momentum due to a slowing drop in aluminium ingot inventories and declining alumina prices.
Global primary aluminium production from January to November amounted to 61.792 million tonnes, an increase of 3.63 per cent from 59.629 million tonnes a year ago. In November, the output stood at 5.497 million tonnes, a decrease of 3.37 per cent from 5.689 million tonnes in October. On a year-on-year calculation too, the output stood down, although marginally, by 0.20 per cent than 5.508 million tonnes. In three month time (September-November), the world primary aluminium output totalled 16.667 million tonnes, up by 0.79 per cent from 16.537 million tonnes during the same period last year.
The President of the trade union within Alro Slatina Constantin Popescu stated that integrated aluminium producer Alro initiated a program of a complete shutdown of the production activity due to the surge in electricity prices.
Alro has remained one of the biggest aluminium companies of Romania and also the largest producers in continental Europe excluding Russia and the Scandinavian Peninsula. Alro Slatina is also a substantial energy consumer of Romania.
To know more: https://www.alcircle.com/news/romanias-alro-slash-production-at-the-aluminium-smelter-intent-for-total-close-down-74193
According to a labour union spokesman, Aluminium Dunkerque Industries France reduced metal output in the last two weeks due to a rise in power rates. According to union official Laurent Geeraert, the reductions corresponded to around 3 per cent of Aluminium Dunkerque's manufacturing capacity. Since the beginning of November, the plant lost nearly 20 million euros ($22.6 million), and more curtailments may be necessary if electricity prices continue high, he added. The cuts were verified by a second source familiar with the activities.
To know more: https://www.alcircle.com/news/aluminium-dunkerque-reduces-metal-output-due-to-rise-in-power-price-74202
On December 21, 2021, the state-owned power transmission system operator of Montenegro, Crnogorski Elektroprenosni Sistem (CGES) said that it would disconnect aluminium smelter KAP from the grid on 31st December, 2021.
CGES stated in a notice that they sent to the owner of the smelter, Uniprom: “Following the applicable regulations, if the contract for the supply of power to KAP in 2022 is not signed by December 25, we will be obliged to issue an order to completely suspend the delivery of electricity via the transmission system on December 31.”
To know more: https://www.alcircle.com/news/montenegro-power-transmission-operator-to-disconnect-the-supply-of-kap-aluminium-smelter-74191
On December 22, 2021, the official gazette of the government of the largest country in South America and Latin America, Brazil, notified that it sanctioned a duty-free import quota for non-alloyed aluminium of 350,000 tonnes for 2022. On 21st December, a conclusive decision was drawn by the executive management committee (Gecex) of Brazil’s foreign trade chamber (Camex), a part of the Ministry of Economy, Govt. of Brazil.
To know more: https://www.alcircle.com/news/brazil-govt-approves-duty-free-import-of-350-000-tonnes-aluminium-for-2022-74208
Primary aluminium inventories in China continued to decrease by over 40,000 tonnes week-on-week as of Thursday, December 23. According to the Shanghai Metals Market, the inventories this week shed 46,000 tonnes to come in at 864,000 tonnes across the eight major Chinese consumption areas, including SHFE warrants. In Wuxi, primary aluminium inventories plunged by 28,000 tonnes this week to come in at 326,000 tonnes, while the inventories in Nanhai decreased by 14,000 tonnes to settle at 197,000 tonnes as of December 23.
National Aluminium Company Limited increased its aluminium ingot and aluminium products prices, with effect from Tuesday, December 21, since the last hike of INR 3,000 per tonne on December 10. With the latest hike, NALCO’s aluminium ingot price came in at INR 231,950- 235,450 per tonne, up by INR 2,700 per tonne or 1.18 per cent from INR 229,250- 232,750 per tonne on December 10.
Hindalco Industries Limited increased its aluminium ingot and aluminium products prices with effect from Wednesday, December 22, after a cut on the previous day. Hindalco’s aluminium ingot price came in at INR 238,250 per tonne on December 22 after being grown by INR 3,000 per tonne from INR 235,250 per tonne on December 21.
The LME aluminium benchmark price opened the week on Monday, December 20, at US$2,645.50 per tonne, which grew by US$50.50 per tonne to stand at US$2,696 per tonne on Tuesday, December 21. The price further soared on Wednesday, December 22, by US$115 per tonne to come in at US$2,811 per tonne, and closed a little higher on Thursday, December 23, at US$2,818 per tonne.
To know more: https://www.alcircle.com/news/lme-aluminium-price-grows-by-us7-t-to-stand-at-us2818-t-shfe-price-drops-to-us3159-t-74205
A00 aluminium ingot price in China stood at RMB19,580 per tonne on Monday, December 20. On Tuesday, December 21, the price decreased by US$160 per tonne to peg at RMB19,420 per tonne but rebounded the next day by RMB 140 per tonne to RMB 19,560 per tonne. On Thursday, December 23, A00 aluminium ingot price further hiked by RMB 510 per tonne to close the day at RMB 20,070 per tonne. On Friday, December 24, the price remained restrained, found SMM.
Responses
