Primary aluminium weekly recap: Citi flags the possibility of Chinese aluminium prices soaring 13% in three months; Yunnan province orders aluminium smelters to cut production again
This week started with the news of a fresh round of power restrictions implemented in China's Yunnan province. To stabilise the electrical supply, the Yunnan province of China directed the aluminium smelters in the area to adopt another round of output limitations. Since September, several of China's energy-intensive aluminium companies in Yunnan and neighbouring provinces have been operating their smelters at a reduced capacity. On the other hand, in a similar reference, Citi, an American multinational investment bank and financial services company, stated that with the reopening of the Chinese economy, the demand for aluminium is expected to increase and surpass iron-ore. As per the forecast, aluminium prices are expected to increase from 15 per cent to 30 per cent in the coming three months. In a conversation with worldwide media on February 14, 2023, a senior official of the Norwegian aluminium company said Hydro wouldn't raise output solely because power prices were falling.
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Citigroup Inc. or Citi, an American multinational investment bank and financial services company, stated that, with the reopening of the Chinese economy, the demand for aluminium is expected to rise, surpassing iron-ore.
China's Yunnan province had ordered the aluminium smelters in the region to implement another round of production restrictions to stabilise the electricity supply. The protracted drought and low reservoir levels have caused problems for the province's hydroelectric grid.
To know more: https://www.alcircle.com/news/yunnan-province-orders-aluminium-smelters-to-cut-production-again-91055
According to our sources, analysts from the metal industry have stated that Russia might restrict exports of critical metals like nickel and palladium if Washington imposes high tariffs on Russian aluminium imports.
The Department of Investment and Public Asset Management (DIPAM), which deals with all the matters relating to the management of Govt. of India investments in equity, including disinvestment of equity in Central Public Sector Undertakings, had rejected any disinvestment agenda for the state-owned National Aluminium Company (NALCO).
To know more: https://www.alcircle.com/news/dipam-rejects-nalco-s-disinvestment-agenda-91016
As a result of the shortage of hydropower in Yunnan after the Chinese New Year holiday, a new round of power rationing is likely to be introduced again to impede aluminium production. In addition, some aluminium smelters are already planning to halt their electrolytic cells.
On February 14, 2023, a top executive of the Norwegian aluminium giant stated during a discussion with international media that Hydro wouldn't increase production merely due to a decline in power costs. The company will ramp up when it feels comfortable and see that demand is more robust than expected.
Rio Tinto intends to supply responsibly sourced aluminium to the BMW Group's vehicle production plant in Spartanburg, South Carolina, beginning in 2024, for use in body components. Low-carbon primary aluminium from Rio Tinto’s hydro-powered operations in Canada, combined with recycled content, could reduce up to 70 per cent in CO2 emissions compared to the BMW Group’s benchmark for aluminium.
Emirates Global Aluminium welcomed His Highness Mohamed Ibrahim Al Hammadi at the Al Taweelah facility in Abu Dhabi. He is the Managing Director and Chief Executive Officer of Emirates Nuclear Energy Company (ENEC), Emirates Nuclear Energy Corporation is responsible for deploying and owning nuclear energy plants in the UAE.
To know more: https://www.alcircle.com/news/egas-al-taweelah-facility-welcomes-his-highness-mohamed-ibrahim-al-hammadi-the-ceo-of-enec-91067
According to the Shanghai Metals Market, China's domestic A00 aluminium ingot price suffered a loss of RMB 140 per tonne on Friday, February 24, after displaying restraint for the past two consecutive days. SMM data shows the price has come in at RMB 18,480 per tonne, standing W-o-W high by RMB 20 per tonne.
To know more: https://www.alcircle.com/news/chinas-a00-aluminium-ingot-price-loses-rmb140-t-on-wavering-consumption-by-downstream-smm-91082
On Thursday, February 23, both LME aluminium cash bid price and LME aluminium official settlement price went down by US$17 per tonne or 0.71 per cent to settle at US$2,368 per tonne and US$2,368.50 per tonne.
To know more: https://www.alcircle.com/press-release/lme-aluminium-price-slips-by-us17-t-to-us2-368-5-t-shfe-price-drops-to-us2-681-t-91081
The world's primary aluminium production initiated the year 2023 with an annual increase of 3.33 per cent from 5.648 million tonnes to 5.836 million tonnes, found the International Aluminium Institute. But on a month-on-month calculation, the output slightly dropped by 0.58 per cent compared to 5.870 million tonnes.
As expected earlier, aluminium production cut in Yunnan province and weaker-than-expected demand recovery would make the metal prices range-bound; both primary aluminium ingot price and aluminium alloys prices have remained muted as of Wednesday, February 22.
As the country's metals sector has boomed, Iran has reported significant increases in aluminium production. On February 20, 2023, IMIDRO, Iran’s state metals and mining company, stated aluminium production in four leading smelters in the country had reached over 528,000 tonnes in the first ten months of the financial year to January 20.
To know more: https://www.alcircle.com/news/iran-s-aluminium-production-rises-by-17-in-the-first-10-months-of-the-fiscal-year-91042
source https://www.alcircle.com/news/primary-aluminium-weekly-recap-citi-flags-the-possibility-of-chinese-aluminium-prices-soaring-13-in-three-months-yunnan-province-orders-aluminium-smel-91089
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