Stagnancy in Aluminum Industry, Outlook Shows Promising Trends
%2Fhttps%253A%252F%252Fofbadmin.s3.ap-southeast-1.amazonaws.com%252Fnexizo%252Fproduction%252Fstrapi%252FAluminum_4_ffd921dd4b.png&w=1920&q=100)
The aluminum industry is currently experiencing stagnancy in production and price movements. However, the outlook appears promising, with expected improvements in downstream consumption and macroeconomic conditions. Despite recent fluctuations, the market shows signs of stability and potential growth in the near future.
Price
- As of the last day, LME opened at $2,475/ton and closed at $2,433.50/ton. Today, LME opened at $2,516/ton.
- As of Friday, SHFE opened at 19,880 Yuan/MT and closed at 19,925 Yuan/MT. - Today, SHFE opened at 19,875 Yuan/MT.
- As of the last day, MCX closed at 232.40 Rs/Kg. Today, the market opened at 231.85 Rs/Kg.
Demand and Supply
- In the first half of 2024, global aluminum production rose by 3.9% to 35.84 million metric tons, with China leading this growth. China's output increased by 7% to 21.55 million metric tons, while the International Aluminium Institute (IAI) estimated a 5.2% rise to 21.26 million metric tons for the same period.
- In contrast, aluminum production in Western and Central Europe grew by 2.2%, and Russia and Eastern Europe saw a 2.4% increase. The aluminum market in Asia is tightening, evidenced by a 16%-19% hike in premiums for shipments to Japan for the July-September quarter, now at $172 per metric ton.
- Additionally, aluminum stocks at Japan’s three major ports were at 317,860 metric tons at the end of June, reflecting a 3% increase from the previous month.
News
- Hindalco announced a bold $10 billion investment plan to expand its domestic operations and U.S.-based aluminum recycler Novelis Inc. Chairman Kumar Mangalam Birla mentioned this during the metals refiner's shareholder meeting on August 22, marking a significant step in Hindalco's efforts to bolster its production capacity and improve its position in the global aluminum market.
Expert's Opinion
- On the macroeconomic front, expectations of a US Federal Reserve rate cut have created a positive environment. Meanwhile, due to ongoing high temperatures, various industries in Sichuan have been required to stagger their production schedules, although aluminum production has not been significantly affected.
- Additionally, an aluminum plant in Inner Mongolia that partially shut down over the weekend due to an accident resumed normal operations on Monday, leading to minimal overall supply disruptions.
- The quick rebound in aluminum prices has reduced warehouse outflows, which has helped keep spot discounts from narrowing. However, with the traditional peak season approaching and domestic economic stimulus measures in place, downstream consumption is slowly improving, and a turning point in inventory reduction is anticipated.
- In the short term, aluminum prices are likely to continue fluctuating upward, with ongoing attention needed on macroeconomic changes and the sustainability of downstream aluminum consumption.
Daily Market Report
%2Fhttps%253A%252F%252Fofbadmin.s3.ap-southeast-1.amazonaws.com%252Fnexizo%252Fproduction%252Fstrapi%252FZinc_4_f74f0349b5.png&w=3840&q=75)
Zinc Prices Rise on Reduced Supply and Strong Demand Outlook
Zinc prices surged across global markets, driven by reduced supply due to production cuts and strong seasonal demand expectations. LME zinc hit a nearly six-week high, supported by a weaker US dollar. The bullish trend is reinforced by positive macro sentiment and ongoing supply constraints, with forecasts predicting further output reductions.
Read Story
%2Fhttps%253A%252F%252Fofbadmin.s3.ap-southeast-1.amazonaws.com%252Fnexizo%252Fproduction%252Fstrapi%252Fnon_ferrous_1_83b9a04ebf.png&w=3840&q=75)
Zinc Prices Rise Slightly Amid Mixed Trading and Market Trends
LME zinc prices rose slightly, closing at $2,857.50/mt, while SHFE zinc increased to 23,825 yuan/mt. MCX zinc fell by 0.62% to ₹265.30/kg. Market trends show a decrease in LME inventory and SHFE trading volume, with bullish sentiment driven by production cuts and supply tightness in Asia.
Read Story
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FAl_Ingot_d893cec4bd.JPG&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FAluminium_d79ae74f64.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FZinc_Ingot_SHG_0_99995_53f40b6205.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FLEAD_Ingot_1d45536fed.jpg&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FCopper_Cathode_31c31256dd.JPG&w=3840&q=75)
%2Fhttps%253A%252F%252Fnexizo.ai%252Fassets%252Fbg-png-msite.png&w=3840&q=30)