Share, , Google Plus, Pinterest,

Posted in:

LME Roundup – Continued Overcapacity from China

July 1 – Results of Warehouse Discussion Paper and Next steps for consultation on warehouse operation, London Metal Exchange

July 1 –Glut of Chinese Goods Pinches Global Economy,” The Wall Street Journal

July 7 Aluminum Bear Market Piles Pressure on World’s Biggest Smelters,” Bloomberg Business

China, which accounts for half of the world’s aluminum output, is on pace to export record amounts of metal products this year, helping to deepen a worldwide glut. Producers outside China, including Alcoa Inc. and United Co. Rusal, had already cut back capacity through last year. Still, 1 million metric tons more, enough to supply Japan for six months, will probably be curtailed within a year, according to Macquarie Group Ltd.

July 8 –Aluminium Being Squeezed On Spurt In Output,” India Info Line

July 9 –Warehouse Crackdown Cuts Aluminum Costs: Delivery fees drop as rules kick in aimed at loosening Wall Street’s grip on stockpiles,” The Wall Street Journal

Manufacturers of goods from cars to soda cans are benefiting from declining aluminum costs, a sign that new warehouse rules aimed at loosening the grip of Wall Street banks are having the desired effect.

July 10 –Industry demands import duty hike on aluminium metal, scrap,” Times of India

July 16 –Aluminum Output Jumps to Record in China Swelling World Glut,” Bloomberg Business

New supply from China is forcing smelters elsewhere to cut output as exports surge and prices slump. Shipments from the country rose to the highest this year in June, boosting a global surplus of the raw material used in everything from cans and cars to aircraft and sending rates to the lowest since 2009.

July 17 –Warehouse reforms not key driver of premiums,” American Metal Market

London Metal Exchange warehousing reforms have had a limited effect on the Midwest aluminum premium, while import and demand levels have been far more influential, according to North American aluminum market participants and analysts.

July 20 –China, the aluminum giant that’s still growing: Andy Home,” Reuters

Global output grew by 10.3 percent in the first half of this year, the fastest rate of growth since 2010, when many smelters were reactivating capacity idled during the depths of the global financial crisis.

July 21 –Aluminum Declines to Two-Week Low as China Supply Adds to Glut,” Bloomberg Business

July 22 –Norsk Hydro CEO Says Low Aluminum Prices May Trigger Production Cuts,” The Wall Street Journal

Norwegian aluminum producer Norsk Hydro may trim production even further to cope with low aluminum prices, the firm’s president and chief executive Svein Richard Brandtzaeg in a telephone interview [with WSJ].  Norsk Hydro, one of the largest aluminum producers in the world, has already reduced capacity by 26%, but continues to feel the effects of the price plunge. Aluminum prices have fallen more than 10% since the beginning of the year and are trading at six-year lows.

July 30 –London Metal Exchange to Accept Chinese RMB as Cash Collateral,” Metal Miner


Share, , Google Plus, Pinterest,