We should remember that the core issue facing the global steel and aluminum industries is global in nature and not necessarily limited to the US market.
For aluminum producers, the all-in aluminum price consists of the price of aluminum plus physical aluminum premiums. These premiums are regional in nature.
China produced ~2.76 million metric tons of aluminum in April—a YoY increase of 7.6%. Its production has risen 12.0% YoY in the first four months of 2017.
In fiscal 2016, Alcoa (AA) produced 45.0 million bone dry metric tons of bauxite, 13.2 million metric tons of alumina, and 2.42 million metric tons of aluminum.
One reason US aluminum producers find it hard to compete is because the cost of electricity is higher in the United States. Chinese producers allegedly get a power subsidy.
China’s economic growth rates could be impacted when Donald Trump takes office. His tough stance on imports from China could be negative for its economy.
There’s been a broad-based rally in commodity prices since Trump won the election. But several fundamental factors are also supporting aluminum prices.
In this article, we’ll see what Donald Trump’s presidency could mean for Alcoa and other aluminum producers, which include Century Aluminum and Norsk Hydro.
Donald Trump appears to favor a more aggressive trade policy—regularly citing job losses as a result of imports from countries, especially China (FXI).
After the split, the new Alcoa (AA) will house the business units that are currently under the Primary Metals and Alumina segments. We’ll look at the challenges that Alcoa could face once it is listed as a separate company.
US Midwest aluminum premiums are currently quoted at $0.07 per pound. Premiums have fallen slightly in July and are now down more than 22% year-to-date.
For aluminum producers, the all-in aluminum price consists of the aluminum price plus regional aluminum premiums. Aluminum premium is a surcharge that consumers pay on top of prevailing prices.
According to data released by the International Aluminum Institute, China produced 2.5 million metric tons of aluminum in December—a YoY increase of ~1%.
There have been conflicting signals coming from China (FXI). Recent reports suggest that China might buy 1 million tons of aluminum from domestic smelters.
The usage of aluminum in automobiles has been gradually increasing, as it improves vehicle performance, reduces CO2 emissions, and boosts fuel economy.
According to the National Bureau of Statistics of China, industrial production in China rose 5.6% in October compared to 5.7% in September. The reading was below market expectations of 5.8%.
On November 2, 2015, spot aluminum closed at $1,463 per metric ton on the London Metals Exchange. Spot aluminum prices were down more than 7.5% in October.
The Singapore dollar gained against the US dollar on October 14, 2015. The GDP (gross domestic product) grew ahead of the forecasts in the third quarter.
