Primary Aluminium Weekly Recap: Russia-Ukraine conflict lifts LME aluminium price to new high; Rio Tinto & Tasmanian State Government to work towards sustainable economy
The global aluminium benchmark price rally to a record high this week has created a buzz across the industry. On Thursday, February 24, the LME aluminium price stood 13-year high at US$3,519 per tonne, attributable to Russia-Ukraine conflict that fuelled the worldwide supply concerns of the metal. However, on Friday, February 25, the price slipped by US$164 per tonne to stand at US$3,355 per tonne.
In response to this global aluminium price hike, National Aluminium Company Limited (NALCO) expanded its aluminium ingot and aluminium products prices by INR 20,000 per tonne or 7 per cent. With effect from Friday, February 25, NALCO’s aluminium ingot price came in at INR 300,450- 303,950 per tonne versus INR 280,450-283,950 per tonne.
To know more: https://www.alcircle.com/news/nalcos-aluminium-ingot-selling-price-inflates-by-inr20-000-t-on-worldwide-supply-woes-76711
On February 21, the global mineral and metal giant Rio Tinto signed a new partnership agreement with Tasmanian State Government at the Bell Bay Aluminium smelter towards working together to ensure a strong and sustainable future economy for George Town, the Tamar Valley region and Tasmania. The new partnership will endeavour to propel the economic growth and employment outcomes in the State and support the Tasmanian Government’s target of doubling renewable electricity generation by 2040.
The largest renewable energy of New Zealand, Meridian Energy’s Chief Executive Officer, Neal Barclay unbolted the door to negotiations, which might drive Rio Tinto’s Tiwai Point aluminium smelter to remain functional for at least another 12 years considering 2034. Rio Tinto negotiated down the smelter’s power price from about 5.5 cents a kilowatt-hour to about 3.5c/KWh in January 2021, at a time when aluminium prices were shorter than two-thirds of their current level.
The devolved government of Scotland, the Scottish Government stands strong amid encountering an inherent financial disclosure of £161 million in regards to its connection in the Lochaber aluminium smelter acquisition deal by British Businessman, Sanjeev Gupta owned GFG Alliance. However, the Public Audit Committee at Holyrood was informed that the government’s financial exposure scaled to £161 million in 2021 from £37 million in 2020.
In Europe, a catastrophic scarcity of aluminium caused regional prices to skyrocket, presenting chances for commodity traders who pounced on once-in-a-lifetime opportunity to profit by exporting metal from warehouses 6,000 miles away. According to two persons aware of the cargoes, some significant trading firms lately loaded aluminium from Malaysia's Port Klang into break-bulk boats bound for Europe. It's a trade that would normally be extremely unprofitable, but the high expenses were mitigated by the higher prices that European purchasers are prepared to pay for metal.
To know more: https://www.alcircle.com/news/shortage-of-aluminium-in-europe-causes-regional-prices-to-shoot-up-76699
According to the International Aluminium Institute data, world primary aluminium production in January 2022 stood at 5.513 million tonnes, 0.36 per cent less than 5.533 million tonnes a month ago. On a year-on-year calculation, world aluminium production in January 2022 recorded a decline of 4.45 per cent from 5.770 million tonnes.
The controlling shareholder of Tiwai Point aluminium smelter in New Zealand, Rio Tinto will commence transporting the hazardous stuff which is being stowed away at Tiwai Point, as the company initiates clearing up the site, a place where it has produced aluminium for over 50 years.
To know more: https://www.alcircle.com/news/rio-tinto-commences-tidy-out-toxic-waste-from-tiwai-point-aluminium-smelter-site-76708
On Thursday, February 24, Century Aluminum announced its fourth quarter and full-year 2021 results, revealing the net income of $60.4 million for Q4 versus $52.4 million a quarter ago. That was a quarterly increase of 15.27 per cent on higher shipments from 196,095 tonnes to 200,961 tonnes. Net sales increased by 13 per cent in Q4 from $581.4 million to $659.1 million sequentially.
Norsk Hydro, a Norwegian aluminium producer, posted record quarterly and yearly earnings on Tuesday, owing to a boom in global commodity prices, and indicated its dividend payout for 2021 will more than quadruple.
In the October-December quarter, adjusted profits before interest, taxes, depreciation, and amortisation (EBITDA) increased to 9 billion Norwegian crowns ($1 billion), up from 3.4 billion the year before. Analysts had expecting 9.31 billion. Global supply-chain bottlenecks, rising energy prices, and inflationary threats were the sources of concern for the organisation.
To know more: https://www.alcircle.com/news/norsk-hydros-dividend-payment-for-2021-may-surge-more-than-quadruple-76681
According to the Shanghai Metals Market, social inventories of primary aluminium totalled 1.1 million tonnes, gaining 60,000 tonnes week-on-week across eight major consumption areas, including SHFE warrants. The smelters and traders were highly willing to make shipments, but the downstream demands were suppressed by increased aluminium prices.
In Gongyi, primary aluminium inventories have built up by 25,000 tonnes week-on-week to come in at 189,000 tonnes, followed by the hike of 20,000 tonnes in Wuxi to 395,000 tonnes.
To know more: https://www.alcircle.com/news/primary-aluminium-inventories-in-china-gain-60-000-tonnes-w-o-w-to-total-1-1-million-tonnes-7670
source https://www.alcircle.com/news/primary-aluminium-weekly-recap-russia-ukraine-conflict-lifts-lme-aluminium-price-to-new-high-rio-tinto-tasmanian-state-government-to-work-towards-sust-76723
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