Industry News

The Bureau of International Recycling (BIR) has reported a decline in the tonnage reported by UK non-ferrous traders due to the latest banking crisis, indicating a weakening of market trust. As the only global recycling industry federation, the BIR represents over 30,000 companies worldwide, with a direct membership of over 900 companies and 37 national associations from 68 countries.

The Panchpatmali bauxite mine, operated by NALCO, has achieved a new record in bauxite excavation. The mine, located on the Panchpatmali hills of Koraput district in Odisha, has reported an excavation rate of 75,50,670 tonnes in FY 22-23, surpassing its previous benchmark of 74,14,100 tonnes in FY 18-19. The fully mechanized opencast mine has been in operation since November 1985, providing feedstock to the alumina refinery at Damanjodi on the foothills.

China’s social inventories of aluminum billet experienced a significant drop of 9,600 tonnes week-on-week, falling to 158,400 tonnes as of March 30, according to the Shanghai Metals Market survey. This represents a steeper decline compared to the previous week, which saw a drop of only 1,500 tonnes. Some warehouses in east China stopped obtaining billet stocks, contributing to lower inventories. Additionally, a significant amount of billet stocks directly arrived at downstream processing plants instead of social warehouses, which also contributed to the weekly inventory downfall.

Japan, the world’s leading industrial economy, has announced sanctions on Russia amidst the Ukraine-Russia geopolitical crisis. Effective April 7, Japan has banned exports of aluminium, steel, and components for aviation, space industry, and drones to Russia. The move comes as Japan joins the United States, the United Kingdom, and the European Union in imposing sanctions on Russia following its military buildup near the Ukrainian border.

According to the International Aluminium Institute, primary aluminium production in Russia and Eastern Europe fell to 310,000 tonnes in February 2023, down by 9.88% from the previous month's output of 344,000 tonnes. However, the average daily production rate was sustained at 11,100 tonnes. Year-on-year, the output fell by 4,000 tonnes, or 1.27%, from 314,000 tonnes. In the first two months of 2023, the production reached 654,000 tonnes, down by 1.36% from the corresponding period of the previous year.

China's social inventories of aluminum ingot across eight major consumption areas, including SHFE warrants, dropped by 38,000 tonnes over the week to 1.09 million tonnes as of March 30, a slower decline compared to the previous week's drop of 85,000 tonnes, according to the Shanghai Metals Market.

The decrease is attributed to high aluminum prices, limited increase in downstream operations, and cautious buying from downstream buyers due to a lack of confidence for future orders.

India's top three aluminum players, NALCO, Hindalco, and Vedanta, raised their aluminum ingot and aluminum products prices this week in line with the LME aluminum benchmark price increase. NALCO increased its aluminum ingot price by INR 5,600 per tonne, or 2.6 percent, from the previous week to INR 221,450-224,950 per tonne, effective March 28. NALCO’s aluminum wire rod and billets prices also saw an increase of INR 5,600 per tonne from the previous week.

Alumex PLC, a leading producer of high-quality aluminum profiles and a sister company of Hayleys Group, is focused on enhancing its value-added services to strengthen its position as a top industry exporter. Alumex has been recognized by several prominent award-giving organizations in 2022, and the company is now committed to making a measurable impact on international and regional markets.

On Thursday, March 30th, the LME aluminium began trading at US$2,380.5 per tonne, reaching a high of US$2,400 per tonne and a low of US$2,369.5 per tonne before closing at US$2,386.5 per tonne, showing a slight increase of US$3.5 per tonne or 0.15 per cent.

The LME aluminium cash bid price and official settlement price dropped on Wednesday, March 29th, by US$22 per tonne or 0.93 per cent, closing at US$2,343.50 per tonne and US$2,344 per tonne, respectively.

The demand for aluminium has cooled due to an economic slowdown in the US and Europe.

The increase in global aluminium output occurred at the same time as concerns about reduced demand for the metal due to economic instability. Europe's industrial economy suffered greatly due to the geopolitical-induced energy crisis, while fears of a recession were raised in the US due to inflation and rising interest rates.