Primary aluminium weekly recap: Speira’s German aluminium smelter plans to reduce production by 50% as energy cost bites; European aluminium smelters being victim to energy price surge
This week the global primary aluminium segment witnessed a lot of essential changes. European aluminium smelters have once more increased their output cutbacks. According to Citi analysts, the 4.5 million tonnes of total aluminium production capacity in Europe have been decreased by 1 million tonnes since 2021, and another 500,000 tonnes are in jeopardy. Next in line is the European aluminium rolling company Speira, planning to lower the output of its German aluminium smelter to 50 per cent of its maximum capacity by September. Not only this, Talum, a prominent Slovenian firm that specializes in alumina and aluminium products, has lowered its primary aluminium output by 20 per cent of its smelting capacity. However, on a positive note, on Wednesday, August 24, Norsk Hydro announced that the ongoing labour dispute was finally called off. A resolution to the labour dispute over the amendment of the Electrochemical Agreement was reached.
European aluminium smelters have once again ramped up their production cuts owing to soaring electricity prices. By 2021, 1 million tonnes of total 4.5 million tonnes of Europe's aluminium production capacity has been reduced, while another 500,000 tonnes are under threat, according to Citi analysts.
To know more: https://www.alcircle.com/news/production-vs-reduction-european-aluminium-smelters-being-victim-to-energy-price-surge-83391
Meridian Energy, New Zealand's most significant renewable energy generator and Rio Tinto, the majority owner of the Tiwai Point aluminium smelter, have made predominantly positive comments about their anticipation of attaining a deal to keep the smelter open after 2024.
To know more: https://www.alcircle.com/news/meridian-energy-seeks-15-years-of-operational-commitment-from-tiwai-aluminium-smelter-83383
The ongoing labour dispute between Industri Energi and Norsk Hydro ended on Wednesday, August 24. A resolution to the labour dispute over the amendment of the Electrochemical Agreement was reached between Industri Energi and Norsk Industri, which resulted in the cancellation of the strike at Hydro Sunndal.
To know more: https://www.alcircle.com/news/strike-at-hydro-sunndal-finally-called-off-operations-to-resume-soon-83374
Rising energy prices are affecting the aluminium industry more than ever. As a result, Speira, a significant European aluminium rolling firm, is thinking of reducing the production of its German aluminium smelter to 50 per cent of the total capacity. The final decision on the production cut is expected to be taken by September.
To know more: https://www.alcircle.com/news/speiras-german-aluminium-smelter-plans-to-reduce-production-by-50-as-energy-cost-bites-83360
Alcoa Intalco aluminium smelter sees a silver lining once again to restart its operation, as the climate and health care bill has been passed by Congress and signed by President Joe Biden with provisions that could help the resumption of the smelter's operation.
To know more: https://www.alcircle.com/news/federal-governments-new-bill-seems-to-be-a-saviour-for-alcoa-intalco-aluminum-smelter-83355
Despite several meetings with Industri Energi and Norsk Industri, the collective agreement between the two companies to secure a new labour deal failed, due to which some employees at Alcoa's Mosjøen aluminium smelter in Norway went on strike on Monday, August 22. However, Alcoa's Lista plant in Norway is not currently part of the ongoing strike.
According to a report on Monday, August 22, a strike at Hydro Sunndal aluminium plant had started, resulting in the implementation a production cut agreement. Also, due to the strike, around 30 members of Industri Energi will not report to work at the aluminium plant.
To know more: https://www.alcircle.com/news/hydro-sunndal-strike-starts-20-production-to-ramp-down-within-the-next-four-weeks-83337
On Tuesday, August 23, Aluminium Stewardship Initiative (ASI) announced that Yunnan YunLv Yongxin Aluminium Co., Ltd., based in the Yangjie Industrial Park, Yunnan Province, China, received the ASI Chain of Custody Standard V1 (2017) Certification. In September 2021, the facility was granted the Performance Standard Certification by ASI.
The benchmark price for aluminium on the LME has increased by US$107.50 per tonne over the week, with only brief declines. The official settlement price for LME aluminium and the cash bid price for LME aluminium increased by US$11.50 per tonne or 0.48 per cent to open the week at US$2,387 per tonne and US$2,387.50 per tonne, respectively.
To know more: https://www.alcircle.com/news/lme-benchmark-aluminium-price-marks-0-85-upward-shift-to-us2442-5-t-shfe-drops-us17-t-83386
On Friday, August 26, China's A00 aluminium ingot price went up by RMB 10 per tonne to rest at RMB 18,860 per tonne. The average prices are likely to range between RMB 18,840 per tonne and RMB 18,880 per tonne, with spot contracts to be traded at a discount price of RMB 40 per tonne.
According to the Shanghai Metals Market, primary aluminium inventories in China witnessed a decrease of 1,000 tonnes week-on-week across eight major consumption areas, including SHFE warrants. Therefore, on Thursday, August 25, the inventories totalled 679,000 tonnes, which in comparison with the month's third Monday, August 15, shrunk by 19,000 tonnes.
To know more: https://www.alcircle.com/news/chinas-primary-aluminium-ingot-inventory-suffers-a-loss-of-1-000-tonnes-w-o-w-on-august-25-83397
Talum, the major Slovenian company specializing in alumina and aluminium products, has reduced its primary aluminium production by 20 per cent of its smelting capacity due to exorbitant energy prices. Power prices in Europe have been rising since the beginning of 2021, making some production sites unviable due to the high energy requirements of aluminium smelting.
To know more: https://www.alcircle.com/news/exorbitant-energy-prices-cause-20-primary-aluminium-production-cut-at-talum-83389
Malaysian aluminium giant Press Metal Aluminium Holdings Bhd. has reported that its net profit for the second quarter of the financial year ended June 30, 2022 (Q2 FY2022) escalated by 60.1 per cent to RM409.17 million against RM255.58 million in the same quarter previous, boosted by enhanced revenue and contribution from subsidiary companies.
To know more: https://www.alcircle.com/news/malaysia-s-press-metal-posted-rm409-17-million-in-profits-during-the-second-quarter-83385
Last year South32 witnessed a rise in annual revenue, amounting to US$2.67 billion or AU$3.87 billion in total, owing to systematically augmenting prices of raw materials like metallurgical coal and aluminium. The diversified miner made the highest profit since its inception in 2015, owing to a collection of the residual assets discarded by BHP. South32 made US$1.03 billion from aluminium and US$1.54 million from industrial coal used for steel production.
To know more: https://www.alcircle.com/news/south32-reports-a-seven-fold-rise-in-profit-for-h12022-83380
Along with the month-on-month hike in the world primary aluminium production during July 2022, output in Africa has recorded an increase of 4,000 tonnes or 2.96 per cent to bounce back at 139,000 tonnes in the said month. According to the International Aluminium Institute, Africa's primary aluminium production in June 2022 had a monthly fall from 139,000 tonnes to 135,000 tonnes.
According to the International Aluminium Institute data, world primary aluminium production in July 2022 rose by 176,000 tonnes or 3.10 per cent month-on-month. From 5.672 million tonnes in June 2022, the world output escalated to 5.848 million tonnes in July. The average daily output in June 2022 was 189,100 tonnes, while the average daily production in July 2022 came in at 188,600 tonnes.
Information & eGovernment Authority reported that in July 2022, Bahrain's exports of goods and services of domestic production surged by 29 per cent to BD421 million ($1.17 billion) from BD327 million recorded same month a year ago.
To know more: https://www.alcircle.com/news/unwrought-aluminium-alloy-ranks-as-the-most-exported-commodity-from-bahrain-in-july-22-83349
Emirates Global Aluminium (EGA), the biggest premium aluminium producer in the world, has announced its best-ever half-year results, driven by strong operational performance across the value chain resulting in robust earnings. EGA has reported a net profit of AED 5.9 billion for H1 2022, which exceeds the net profit of AED 5.5 billion in the entire year of 2021 and stands 247 per cent higher than AED 1.7 billion in H1 2021.
The Plansee Group, belonging from Reutte, Austria, along with interested innovators like aluminium manufacturer Trimet from Essen, Germany, technology developer Arctus from Iceland and the Saarland University have discovered the latest procedure of aluminium production that diminishes the carbon emission that is usually collateral to the method, releasing only oxygen in its place. This will ultimately lessen the carbon footprint due to aluminium production.
To know more: https://www.alcircle.com/news/plansee-group-assembles-team-to-produce-carbon-free-aluminium-83375
Researchers from iForest, Delhi are instigating policymakers to make a shift to a green energy-based economy in Odisha's Angul region, one of India's largest coal generating zones. This step is to ensure a circular economy for energy, steel, urea and aluminium production units so that the coal reserves stay preserved for a longer period of time.
To know more: https://www.alcircle.com/news/researchers-propel-the-transformation-of-odishas-angul-district-into-green-economy-83379
Ghana Integrated Aluminum Development Corporation (GIADEC) believes it can raise nearly US$6 billion in private finance to achieve a unified aluminium sector. It also hopes that the integrated aluminium development plan would help Ghana's packaging, pharmaceutical, electric cable manufacturing, and construction industries reach their full potential.
To know more: https://www.alcircle.com/news/giadec-aims-to-raise-us6-billion-to-actualize-an-integrated-aluminium-industry-in-ghana-83384
source https://www.alcircle.com/news/primary-aluminium-weekly-recap-speiras-german-aluminium-smelter-plans-to-reduce-production-by-50-as-energy-cost-bites-european-aluminium-smelters-bein-83405
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