Primary aluminium weekly recap: China’s aluminium production in May grows 4% M-o-M to 3.435 Mt; Vedanta reports 12% reduction in carbon emissions in FY2022 on the World Environment Day
The global aluminium primary aluminium segment witnessed a lot of significant changes. To begin with, the news that garnered the most attention this week was the appointment of Satish Pai as the new board chairman of the International Aluminium Institute. Satish Pai is the Managing Director of Hindalco Industries, one of the world’s largest integrated aluminium producers. Also on the occasion of World Environment Day, Vedanta Aluminium’s CEO Rahul Sharma stated that the company's climate measures resulted in a 12% reduction in carbon emissions intensity at several of its smelters in FY2022. Under the market forefront, China produced 3.435 million tonnes of aluminium in May (31 days), up 4.15 per cent over the previous month's 3.298 million tonnes (30 days), says the data from SMM. On Monday, June 6, the LME aluminium cash bid price and LME aluminium official settlement price began the week with a strong jump of US$40 per tonne and US$40.50 per tonne, respectively, to US$2,741 per tonne and US$2,742 per tonne. On Tuesday, June 7, prices fell by US$27 per tonne, or 0.98 per cent, to US$2,714 and US$2,715 per tonne.
The only body representing the global primary aluminium industry, International Aluminium Institute (IAI), had publicised the appointment of Satish Pai as its new Chairman. Satish Pai is the Managing Director of Hindalco Industries, one of the world’s largest integrated aluminium producers. Previously he was serving as the Vice-Chairman and he succeeds Ben Kahrs, Alcoa Corp’s Chief Innovation Officer.
Commemorating the World Environment Day on June 5, 2022, Vedanta Aluminium, India’s leading aluminium producer, stated that business growth and sustainable development go hand-in-hand. On the same occasion, Rahul Sharma, CEO of Vedanta Aluminium, said certain initiatives of the company related to climate led to a decrease in carbon emissions intensity at many of their smelters by about 12 per cent in FY2022.
On Monday, June 6, the LME aluminium cash bid price and LME aluminium official settlement price began the week with a strong jump of US$40 per tonne and US$40.50 per tonne, respectively, to US$2,741 per tonne and US$2,742 per tonne. On Tuesday, June 7, prices fell by US$27 per tonne, or 0.98 per cent, to US$2,714 and US$2,715 per tonne.
China’s A00 aluminium ingot price on June 6 opened the week with a hike of RMB 300 per tonne to close at RMB 20,840 per tonne, which dropped by RMB 20 per tonne to settle at RMB 20,820 per tonne on Tuesday, June 7.
In Guangdong’s southern region, many traders claimed that they were falsely duped into extending a credit against fictitious quantities of aluminium. This news stirred China’s metal market to the core. As per the report, more than RMB 500 million ($75 million) may was duped.
According to the Shanghai Metals Market, China produced 3.435 million tonnes of aluminium in May (31 days), which registered an increase of 4.15 per cent from 3.298 million tonnes in April (30 days). On a year-on-year basis, the output in May grew 3.6 per cent from 3.32 million tonnes.
As recorded by the Shanghai Metals Market, China’s social inventories of primary aluminium witnessed a downfall on Friday, June 9, across eight primary consumption areas. According to the data provided by SMM, the aluminium ingot inventory fell sharply by 29,000 tonnes week-on-week compared with last Thursday.
Published
11-Jun-2022
