Upstream weekly recap: Donald Trump's return to the White House sparks aluminium industry speculation; Skyrocketing alumina prices drive aluminium cost pressure
This week has brought notable progress in the upstream sector of the aluminium industry, encompassing bauxite, alumina, and primary aluminium. Australia's Metro Mining sets a new monthly record for bauxite shipments in October, reaching 69.5 per cent of its annual target. A key highlight was the increase in alumina prices reported by the Shanghai Metals Market, with the average price reaching RMB 5,391 per tonne. Donald Trump's return to the White House as the 47th President of the United States after defeating Kamala Harris in the 2024 election is already sparking speculation about the potential shifts in global trade policies and economic measures that could impact various industries, including the aluminium sector. Industry experts are keenly observing how his administration's approach may influence trade tariffs, import-export regulations, and strategic partnerships in the aluminium market. Let’s review the past week in the global aluminium market and what it signals for the future.
Donald Trump returning to the White House as the 47th President of the United States after winning the 2024 election against Kamala Harris is already raising speculations about global trade policies and economic measures for the ensuing time. This especially comes after his protectionist regime as the 45th President of the United States from 2017 to 2021, which saw heavy import duties as part of the "America First" economic policy. During 2017-2021, the Trump presidency imposed waves of tariffs on products like solar panels, washing machines, and consumer goods. Even steel and aluminium were not spared from the heavy import duties. Countries like China, Mexico, Canada, and the European Union, the big players in the world aluminium market, faced tariffs during that period.
To know more: https://www.alcircle.com/news/donald-trump-2-0-what-is-in-store-for-the-global-aluminium-industry-112488
On November 08, 2024, Shanghai Metals Market saw the price of alumina rise to RMB 5,391 per tonne on average. However, the real eyecatcher was the price climb in the provinces of Lianyungang and Bayuquan. The price of alumina has been on a rapid surge spree since the beginning of September. Despite the five other provinces witnessing the surge, these two provinces kept a steady heed in alumina pricing.
Metro Mining Limited has yet again achieved a new monthly high shipment by delivering 793,420 tonnes of wet bauxite in October 2024. The shipment volume rose 1.72 per cent month-on-month from 780,000 tonnes and surged year-on-year by 18 per cent. The integration of a real-time monitoring system and improved operating capacity and loading rates, stabilising at 1,800 tph by September and peaking at 2,500 tph during free-digging operations at Ikamba's conveyor system, contributed to a new record high of Metro's bauxite shipment.
On November 7, Alcoa announced the suspension of bauxite shipments from Brazil’s Juruti port due to a vessel stranded in the waterway. This marks the latest in a series of supply chain disruptions impacting the aluminium raw material market, contributing to record-high alumina prices and supporting elevated aluminium prices. Alcoa invoked force majeure at its Juruti bauxite mine on November 6, citing the blocked waterway as a barrier to fulfilling customer supply commitments, according to an emailed statement from an Alcoa spokesperson to Reuters.
To know more: https://www.alcircle.com/news/alcoa-halts-shipments-from-juruti-mine-amid-port-blockage-fuelling-alumina-price-surge-112498
The Americas primary aluminium production in the third quarter of 2024 maintained a steady trend, reaching 1.375 million tonnes compared to 1.372 million tonnes in Q2 2024, despite monthly output drop in August and September, particularly in North America. Over the past two months, North America's primary aluminium production decreased M-o-M, deriving 333,000 tonnes in August and 324,000 tonnes in September. The decline in August output was relatively marginal compared to 334,000 tonnes in July, but the decrease in September intensified, marking a 2.7 per cent fall.
Century Aluminum Company, a US-based producer of primary aluminium, announced its third-quarter 2024 results, revealing net sales of $539.1 million. That was down by 3.9 per cent sequentially from $560.8 million, attributed to decreased third-party alumina sales but partially offset by increased aluminium shipments, higher aluminium prices on LME, and value-added product premiums.
Contradictory to August 2024's decision to cancel the auction, State Property Fund has scheduled a repeated auction for the state-owned stakes of Zaporizhzhia Industrial Aluminium Plant JSC, a company in Ukraine that was known as the producer of aluminium bars and cylindrical ingots.
Jiaxin New Materials Company has conducted a trial production of its new 7-series high-end aluminium alloy round ingot product. The development of this much-awaited product marks a significant milestone for the China-based company. The newly developed product is a high-strength aluminium alloy with zinc as its primary alloying element. It exhibits excellent plasticity following solution treatment, allowing it to serve as a steel substitute in high-temperature environments.
Aluminium Bahrain B.S.C. (Alba), the world’s largest aluminium smelter ex-China, is reportedly thinking otherwise about its capacity expansion plans. Instead of proceeding with the plan of building a new Line 7, the company is considering installing new production facilities to replace the existing Lines 1, 2 and 3.
To know more: https://www.alcircle.com/news/alba-revises-line-7-plans-mulls-over-replacing-lines-1-2-and-3-with-modern-facilities-112467
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