2020 aluminum industry review
In 2020, the global aluminum industry experienced unprecedented turbulence. The market witnessed the impact of the epidemic on the upstream and downstream industrial chains, mergers and acquisitions between major companies, new production, new company entry, and anti-dumping and tariff increases in Europe and the United States. Unilateral behavior... Xiaobian organizes related events as follows.
Trump imposes 25% and 10% tariffs on imported steel derivatives and aluminum derivatives (i.e. downstream products), respectively
Earlier this year, Trump signed an announcement showing that since the implementation of additional tariffs and quota restrictions on imported steel products and aluminum products, the United States’ imports of steel and aluminum products have decreased, but certain steel derivatives and aluminum derivatives have Imports have increased substantially. The US assessed that the increase of foreign producers' exports of steel derivatives and aluminum derivatives to the United States was to circumvent the previously imposed tariffs on steel and aluminum, which would weaken the US government's efforts to limit imports to address the so-called national security risks. To this end, Trump decided to impose tariffs on imported steel derivatives and aluminum derivatives. According to the announcement, the United States will impose 25% and 10% tariffs on imported steel derivatives and aluminum derivatives, respectively, and the new tariff measures will take effect on February 8. At the same time, steel derivatives exported to the United States from Argentina, Australia, Brazil, Canada, Mexico and South Korea, and aluminum derivatives exported to the United States from Argentina, Australia, Canada and Mexico will be exempted from the above-mentioned tariffs.
Indonesia's Asahan Aluminum (hereinafter referred to as Inalum) plans to build a smelter with an annual capacity of 500,000 tons in North Kalimantan near the island of Borneo, thereby increasing the company's total production capacity to 750,000 tons.
The island has rich bauxite resources. The timing of the construction of the smelter is unclear. The expansion of Inalum’s only smelter in Kuala Tanjung, North Sumatra, was blocked due to power supply restrictions. The smelter currently has an annual production capacity of 250,000 tons. The company is currently trying to upgrade the furnace to increase its production capacity. 300,000 tons. It is reported that Inalum's subsidiary PT Aneka Tambang (also known as Antam) is building a refinery with an annual capacity of 1 million tons in Kalimantan. The refinery is responsible for processing bauxite into alumina, which is expected to start production in early 2022.
Canada makes the second double-reverse sunset review final ruling on industrial damage
On January 13, 2020, the Canadian International Trade Tribunal (CITT) issued an announcement to make the second anti-dumping and countervailing sunset review of aluminum extrusions (Aluminum Extrusions) originating in or imported from China. The current double countermeasures for the products involved in the case were cancelled. The import of the products involved in the case will cause substantial damage to the domestic industry in Canada, so it was decided to continue to maintain the current countermeasures.
The EU makes preliminary anti-dumping rulings on Chinese aluminum profiles
On October 13, 2020, the European Commission issued an announcement, making a positive preliminary anti-dumping ruling on aluminum extrusions (Aluminium Extrusions) originating in China, and decided to impose a levy on the enterprises involved for a period of 6 months from the day after this announcement was published in the official gazette. The provisional anti-dumping duties, tax rates are detailed in the table below. The EU CN (Combined Nomenclature) codes of the products involved are ex 7604 10 10, ex 7604 10 90, 7604 21 00, 7604 29 10, 7604 29 90, ex 7608 10 00, 7608 20 81, 7608 20 89, and ex 7610 90 90 ( TARIC codes are 7604 10 10 11, 7604 10 90 11, 7604 10 90 25, 7604 10 90 80, 7608 10 00 11, 7608 10 00 80 and 7610 90 90 10). The dumping and damage investigation period in this case is from January 1, 2019 to December 31, 2019. The damage analysis period is from January 1, 2016 to the end of the dumping and damage investigation period.
Earlier on February 14, 2020, the European Commission issued an announcement stating that European Aluminium (European Aluminium) represents an application filed on January 3, 2020 by a manufacturer whose aluminum profile output accounts for more than 25% of the total output of similar products in the EU. , The European Commission initiated an anti-dumping investigation on aluminum profiles originating in China.
EU conducts anti-circumvention investigation on Huacheng aluminum foil
On December 21, 2020, the European Commission issued an announcement stating that it will conduct an anti-circumvention investigation on aluminum foil rolls (Aluminium Foilin Rolls) originating in China. The European Commission pointed out in the announcement that the Commission has sufficient evidence to prove that the products involved in the case originating in China were re-exported through Thailand (whether or not marked as originating in Thailand) to circumvent the current anti-dumping measures against China's rolled aluminum foil. The EU CN codes of the products involved are ex76071111 and ex76071910 (TARIC codes are 7607111111 and 7607191011).
On December 20, 2011, the European Union initiated an anti-dumping investigation on rolls of aluminum foil originating in China. On September 18, 2012, the European Union made a preliminary anti-dumping ruling on rolls of aluminum foil originating in China. On March 13, 2013, the EU made a final anti-dumping ruling on this case. On March 13, 2018, the European Union initiated the first anti-dumping sunset review investigation against rolls of aluminum foil originating in China. On June 5, 2019, the European Commission issued an announcement stating that it made the first anti-dumping sunset review final ruling on rolls of aluminum foil originating in China.
NALCO achieved the best level of bauxite and alumina production in the 2019-20 fiscal year
In the 2019-20 fiscal year, under the unfavorable environment of the downturn in the international metal market and falling prices on the London Metal Exchange, NALCO achieved operating income of 84.26 billion rupees and net profit of 13.823 billion rupees, maintaining a profitable state. During the reporting period, the company's bauxite and alumina output reached 7.302 million tons and 2.161 million tons, the best level in the company's history; aluminum metal output reached 418,000 tons.
Cedar Group and Hongqiao International Trade Co., Ltd. signed annual long-term aluminum ingot cooperation
Recently, Cedar Commodity Supply Chain Group and Hongqiao International Trade Co., Ltd., a subsidiary of China Hongqiao Group, signed an annual long-term aluminum ingot cooperation. It is expected that the two parties will achieve an annual cooperation scale of about 1 billion yuan.
Xinjiang Zhonghe's new product ultra-high-purity aluminum sputtering target substrate began to be put into production
The new product developed by Xinjiang Zhonghe Co., Ltd.—ultra-high-purity aluminum sputtering target substrate was put into mass production. According to Liu Jianhao, secretary of the company's board of directors, this is a new material mainly used in semiconductor, integrated circuit and other fields. Liu Jianhao: "It was independently developed by our company over a decade. It can be used as the main supporting material for metal interconnects in semiconductor manufacturing, and is also widely used in flat panel displays and solar cells. The market demand is also increasing.
Japanese aluminum buyers agreed to set the Q4 aluminum premium at US$88/ton, up 11% month-on-month
With the recovery of industrial demand after the new crown pneumonia epidemic, some Japanese aluminum buyers agreed to set the 10-12 season aluminum premium at US$88 per ton, an 11% increase from the US$79 premium this season, marking the first quarterly rise in five years .
Gansu Guotong became the designated delivery warehouse of Shanghai Futures Exchange
According to the Shanghai Futures Exchange's announcement on approving Gansu Guotong Commodity Supply Chain Management Co., Ltd. to become the designated delivery warehouse for aluminum futures, according to the "Shanghai Futures Exchange Designated Delivery Warehouse Management Measures" and other relevant regulations, it was decided after research: Supply Chain Management Co., Ltd. has become our designated delivery warehouse for aluminum futures; since the date of the announcement, the company's warehouse at No. 968, Shandanhe Street, Lanzhou New District, Lanzhou City, Gansu Province, has become our designated delivery warehouse for aluminum futures. The approved storage capacity: 1 10,000 tons, the regional discount is 350 yuan/ton.
Rusal's allegations have no factual basis and are false
RUSAL (00486) issued an announcement stating that the company noticed a Bloomberg news article on December 17, 2020, stating that, among other things, Mr. Oleg Deripaska will continue to exercise control over the company during 2020. The company strongly refutes the allegations in the news article, which have no factual basis and are false.
Alcoa announces agreement to sell rolling business to Caesars
Alcoa announced that it has agreed to sell its rolling mill business to Caesars Aluminum for a total consideration of approximately US$670 million. The transaction is expected to be completed by the end of the first quarter of 2021. The rolling mill is located in Warrick Operations, an integrated aluminum production plant near Evansville. Alcoa will retain the ownership of the 269,000 metric tons per year aluminum smelter and its power generation equipment. Alcoa will also sign a land lease agreement with Kaiser to acquire property that Alcoa will continue to own at the Warrick site. After the transaction is completed, approximately 1,170 employees in the rolling industry including foundries, hot rolling mills, cold rolling mills and coating and slitting lines will become Kaiser Aluminium employees. The rolling mill annually produces about 310,000 tons of rolled aluminum for packaging, including food containers, aluminum cans and bottles.
Colombian aluminum supplier will build South America's first aluminum smelter, with an annual output of 540,000 tons
The United Arab Emirates EGA Aluminum Company signed an agreement with the Colombia-based aluminum supplier NEO Aluminio Colombia. This agreement is to use EGA's technology output to develop the first aluminum production facility in a South American country. NEO Aluminio Colombia is currently evaluating the feasibility of building a low-carbon aluminum production facility in the northwest of the country, which is a green aluminum conversion plant in Colombia. The project is powered by hydroelectric power and aims to increase the annual production capacity of aluminum to 540,000 tons.
Chongqing Shunbo intends to acquire 100% equity of Aobo Company, cutting into the field of deformed aluminum alloy
On November 16, Chongqing Shunbo Aluminum Co., Ltd. issued an announcement that the company intends to acquire Chongqing Aobo Aluminum held by Chongqing Textile Holding (Group) Company (hereinafter referred to as "China Textile Group") with its own or self-raised cash. Materials Manufacturing Co., Ltd. (hereinafter referred to as "Aobo Company") 100% equity and related claims. The company has signed the "Equity Transfer Intention Agreement" with China Textile Group. It is understood that Aobo Company was established in April 2006 with a registered capital of 205 million yuan and 100% of the shares are held by China Textile Group. The company is engaged in the production and sale of aluminum, aluminum alloy, and magnesium alloy sheet and strip materials; the series of aluminum, aluminum alloy, magnesium alloy sheets and strip materials produced by export enterprises.
The U.S. launched a double-reverse investigation on aluminum foil from five countries
The Alcoa Trade Law Working Group officially filed a complaint with the Trump administration on imported aluminum foil from 5 different countries and stated that this is a follow-up to the anti-dumping and countervailing duty measures taken against Chinese aluminum foil producers two years ago. Measures. The American Aluminum Association believes that aluminum foil imported from Armenia, Brazil, Oman, Russia, Turkey and other countries is currently being sold at artificially low prices in the US market, and believes that they are doing so to protect the domestic aluminum industry.
