The offshore rig count can gauge the extent of energy exploration and the activity levels of integrated companies.
During the week ending March 13, 2015, the US onshore rig count fell by 64 compared to the previous week’s count.
Upstream energy companies are trimming their spending plans for 2015, which may reduce shale oil and gas production.
Last week, the Permian Basin oil rig count fell by 22 over the previous week’s count. This was the 14th straight weekly decline and a 7% decline from the previous week.
Any hope of a strong revival was crushed as the natural gas rig counts diminished in each of the last six consecutive weeks.
Alcoa expects RTI International Metals to contribute $1.2 million to 2019 revenues. It expects RTI’s EBITDA margin to increase from 14.5% to 25% by 2019.
Alcoa has announced the acquisition of RTI International Metals (RTI). RTI will enhance Alcoa’s portfolio of titanium offerings.
Oilfield service company Baker Hughes’s (BHI) US crude oil rig count decreased by 56 last week, down from 922 to 866.
The first step in Alcoa’s transformation is opening an expanded wheels facility in Hungary, which is part of Alcoa’s lightweighting initiatives.
Alcoa’s transformation will focus on lightweight multi-material innovations and consolidate Alumina and aluminum production into the primary business.
There are piles of aluminum inventory lying in non-LME registered warehouses. More than 10 million tonnes of aluminum metal is stuck in financing deals.
The US rig count generally experienced an uptrend in 2014, but that trend has reversed in the past three months.
The LME aluminum inventory has come down by ~5% in 2015. Lower aluminum inventory on the LME is positive for the aluminum industry.
Alcoa gets more than $1 billion in revenues from nonresidential construction. Investors should thus track nonresidential construction activity closely.
Vehicle sales in February were 16.16 million units on seasonally adjusted basis, a 5% increase over February 2014. This is positive for aluminum companies.
China’s manufacturing PMI has been below 50 for two consecutive months. This reflects a slowdown in the Chinese economy and impacts industrial commodities.
China’s aluminum exports are increasing because China increased its aluminum smelting capacity multifold over the last ten years.
Unwrought aluminum exports from China increased more than 150% YOY in February. Over the first two months of 2015, aluminum exports increased more than 75%.
Aluminum premiums in Europe have just seen the biggest three-month fall for the last 17 years.
US Midwest aluminum premiums are down 10% in 2015. Lower premiums are negative for Alcoa. It had record 2014 profits on the back of higher aluminum premiums.