Aluminium Powder Comprehensive Study by Type (Spherical Aluminum Powder, Ferro Aluminium Powder, Atomized Aluminium Powder, Leafing Aluminium Powder, Others), Application (Explosives, Paints, Fingerprint Powder, Rocket Fuel, Others), Form (Atomized aluminium powder,, Aluminium flake powder,, Aluminium paste and, Aluminium pigment powder), End Use (Industrial, Automotive, … While the points above speak to demand (or lack thereof) for aluminium, the scale of the COVID-19 pandemic is broad enough to impact supply as well. All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. So far, the U.S. has imposed only a 10% tariff on $34 billion of Chinese goods, too small to make much of a difference. Primary production decreased 2.2 percent from 2014 to 9.8 billion pounds. Alcoa took a similarly pessimistic view. Adkins also said this had been partly offset by the restart of China Zhongwang Holdings’ smelter in the north eastern province of Liaoning and a capacity addition by Xinfa in Guangxi in China’s south. There is a growing tendency by major aluminium processors to use higher amounts of recycled aluminium for making their products. While Chinese demand for aluminium alloy is booming, domestic supply has struggled to keep pace. Our aluminium market analysis focuses on supply and demand fundamentals, price dynamics and forecasts for the entire value chain, including upstream and downstream markets. Production cuts in China and falling inventories indicating market deficits and seasonally higher demand towards the end of the year, did not manage to boost LME prices. The producers had to supply aluminium to LME warehouses as they could not reduce the volumes of metal production fast enough after the decline in demand. China’s estimated primary aluminium production stood at 2.878 million tonnes in September, a decline of 3.2% y/y, IAI data further showed. Compared to earlier polls, analysts significantly lowered their forecasts for the average aluminium price next year. Per Paul Adkins, managing director of AZ China, the Xinfa and Hongqiao incidents took about 1,300 tonnes a day from the market. Don't miss a single update from Aluminium Insider. The growing volume of recycled aluminum may help reduce the imbalance of supply and demand in the aluminum industry. The Shanghai Futures Exchange aluminium price will maintain its upward momentum in the first half of 2021 due to strong demand before trending gradually lower in the second half of the year on increased supply, market participants and analysts told Fastmarkets. China consumes 40-50% of the global aluminum supply each year. Hear from active traders about their experience adding CME Group futures and options on futures to their portfolio. Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX. The aluminium industry is facing a huge supply glut that could trigger thousands of jobs losses as the coronavirus pandemic forces key customers to halt production. “The current demand downturn has the misfortune of being timed with the start of the strongest period for ex-China supply growth since the late 1990s,” said analyst Nicholas Snowdon at Deutsche Bank in London. All things considered, this is the real reason why primary aluminium demand fell so quickly. The main downside risk to U.S. aluminum prices could be a sudden removal of tariffs. Understand how CME Group can help you navigate new initial margin regulatory and reporting requirements. The aluminium market is oversupplied despite many people forecasting a deficit, consultancy Harbor Aluminum’s managing director Jorge Vazquez told delegates at the LME Week seminar. Production amounted to 47.549 million tonnes in the first nine months of 2019, dropping 0.99% from 48.023 million tonnes in the first nine months of 2018. China churned out 2.90 million tonnes of the metal last month, the National Bureau of Statistics said, down 2.5% from 2.973 million tonnes in August. "We sold 300 million more cans of beer in the first nine months of 2020 than we did in the same period in 2019 in the United States alone. The country is also a significant aluminum producer and ran a large trade surplus of of aluminum in 2012. Access real-time data, charts, analytics and news from anywhere at anytime. Material demand and supply are broadly linked to energy, water, and climate change. China will import alloyed aluminium ingots (produced from secondary aluminium) from Europe and elsewhere instead of scrap and may increase exports of semi-finished aluminium products, at higher value and prices than alloyed ingots, while reducing the same (conversion) business in Europe and elsewhere. Prior to the tariffs, U.S. prices were about 10% higher than the global average. For aluminum prices, industrial demand is what counts. Among key findings for the North American industry, the report found that in 2015: Demand for aluminum (producer net shipments and imports) increased by eight-tenths of one percent to 25.7 billion pounds. Erik Norland is Executive Director and Senior Economist of CME Group. But the average is deceptive, because sharp gains for nickel of over 50% cover the fact that half of the metals are in the red, with losses of up to 15%. Production amounted to 47.549 million tonnes in the first nine months of 2019, dropping 0.99% from 48.023 million tonnes in the first nine months of 2018. “The story for 2020 is likely to be about the pace at which smelter cuts emerge to balance demand trends.”. Analysts expect cash LME aluminium to average US$ 1814 a tonne in 2020, up 6% from the current price. The global market is due to flip into a surplus of 304,000 tonnes next year from a deficit of 658,500 tonnes in 2019, according to the consensus numbers. Aluminium prices will see only modest growth in 2020 as the market moves into surplus, hit by a combination of a slowing demand growth and continued gains in supply. This would not necessarily have much of an impact on the U.S. premium for aluminum, but it could depress European and Japanese prices further should a global aluminum glut develop. Total exports of unwrought aluminum, including primary metal, alloy and semis, were 5.8 million tonnes last year, up 21 percent on 2017. It is essential to address a situation like Coronavirus in the present study. While Americans have to pay higher prices as a result of the tariff, premiums paid in Europe and Japan have fallen slightly. Steel production also increased in an annual comparison but, despite this, inventories at warehouses have been steadily going down since early October, indicating strong demand through the whole of the supply chain, although stocks increased slightly in late … On the Multi Commodity Exchange, aluminium for delivery in July contracts eased by 25 paise, or 0.18 per cent, to Rs 136.50 per kg in a business turnover of 810 lots. Global mining production in 2017 was close to 60,000 metric tons, more than triple what the world was mining in 1994 (Figure 5). Australian mineral exploration firm Lindian Resources Limited obtained the Guinean government’s sign-off to take title to 61 percent of the... Bosnian aluminium smelter Aluminij d.d. Modern Slavery Act Transparency Statement, By In the Middle East, primary aluminium production increased by 4.35% year-on-year to 456,000 tonnes last month. Lindian Gets Guinean Government Go Ahead For Purchase Of 61 Percent Of Woula Bauxite Project, Aluminij Mostar Inks Aluminium Billet Offtake Agreement With Glencore, Rusal Earns A- Rating From Carbon Disclosure Product In First-Ever Evaluation. He is responsible for generating economic analysis on global financial markets by identifying emerging trends, evaluating economic factors and forecasting their impact on CME Group and the company’s business strategy, and upon those who trade in its various markets. Impact on China domestic supply/demand of the new scrap law and the operational challenges of the law to primary and secondary aluminium … In the first nine months of 2019, China produced 26.37 million tonnes of aluminium, up 1.1% from a year earlier. New Delhi: Aluminium prices on Monday softened by 0.18 per cent to Rs 136.50 per kg in futures trade as speculators cut bets amid subdued demand in spot market. The bottom line is that there is enough aluminium whenever there is need for it. Disclaimer  |  Privacy Policy  |  Cookie Policy  |  Terms of Use  |  Data Terms of Use  |  Modern Slavery Act Transparency Statement  |  Report a Security Concern. The latest report added by DecisionDatabases on Aluminum Gratings Market covered many aspects of the current and future scenarios and a brief analysis of pre and post COVID-19 analysis. 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