The Islamic Republic of Iran’s aluminum produce has increased to 8 percent in the first month of the new Iranian year (started March 20, 2010). This is compared to March 20 of 2009. The news added the information: Iran has produced 25,732 tons aluminum during the last Iranian month (March 20-April 20, 2010) showing 8 [...]
Aluminum is defying logic when it comes to basic economics. Spot aluminum premiums have climbed to their highest price in nearly five years, in the face of mounting warehouse stockpiles.
Aluminum stockpiles have risen consistently this year amid the downturn in the auto sector; however recent evidence that the economy is improving combined with confidence in Chinese purchases have lifted aluminum demand.
Despite the recent recovery in LME aluminum prices; demand for the stainless steel component remains in the dumps. Without any idea of when demand may stage a comeback, aluminum miners are bracing for more tough times.
In the past few weeks, the global marketplace has been met with some much welcomed positive news. However, on the back of a massive slide in commodities prices, aluminum companies are still struggling with record low prices and seemingly nonexistent demand.
Aluminium for delivery in three months on the London Metal Exchange fell to a low of $1,279 a tonne – the lowest level since November, 2001. Record high stocks were responsible for the overwhelming downward pressure. Aluminium LME warehouse inventories leapt by 13,125 tonnes to stand at 3.17 million tonnes, their highest ever.
Aluminum prices are near five-year lows as orders drop from automakers, builders and appliance manufacturers. The global recession, collapsing consumer and corporate confidence and plunging demand for industrial metals have combined to drop the aluminum prices on the LME to their lowest monthly rate since April 2003.
Aluminum industry executives sent a warning to other market leaders that unless large aluminum producers make deeper output cuts, the entire industry will likely take many years to recover from the current slump. Just 10% of world aluminum output is slated to be taken offline, and unless this number is pushed higher by more output cuts long-lasting damage to the sector is possible.
World aluminum prices recorded a marginal gain on Monday on the back of news that the incoming US administration will be unveiling a major stimulus package. US President-Elect Barrack Obama announced plans for the biggest infrastructure investment since the creation of an interstate highway in the 1950’s.
At aluminum’s current price around 90% of the world’s smelting capacity is operating at a loss, and this is forcing producers to revise production programs to cope with aluminum’s current price point.
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