Aluminum Prices Rose Sharply

- Aug 02, 2018-

1. Aluminum price rise: China's aluminum export profit is stable at a high level, and aluminum export orders are still relatively strong. Aluminum inventories continued to decline and the premiums narrowed. At present, the market is bullish on the aluminum market due to the expected increase in supply and supply, and the low price of aluminum, which causes the refinery to lose production. The tightening of environmental protection and the strengthening of the expectation of de-capacity, while the environmental protection rectification led to the tighter bauxite mine, the alumina loss was implemented elastically, the alumina price continued to rise, and the aluminum cost end support effect appeared. The world's largest alumina refinery Hydro Hydro's environmental protection has not yet reached the standard, the alumina plant will resume or will continue to postpone, the foreign alumina prices continue to rise, further leading to the internal and external alumina supply and demand surface strong and weak differentiation, the domestic alumina export window opened. In addition, environmental remediation has led to a more intense bauxite mine in the country, and alumina production has been elastically produced. Both support a sharp rise in alumina prices.

2. The U.S. Treasury Department extended the time limit for divestment from EN+, GAZ, and Rusal. The US Treasury Department said on Tuesday that it has approved a deadline for investors to withdraw from EN +, GAZ Group, and Rusal. US Treasury Secretary Steven Mnuchin said last week that the United States is in close talks with Rusal to remove it from the US sanctions list. EN+ has also taken a series of measures, including restructuring the board of directors to get rid of US sanctions. This week, the London Metal Exchange’s cancellation of warehouse receipts doubled to the highest level in more than a year. This is a signal of rising demand for spot, although Rusal said it is prepared to reach an agreement with the United States on sanctions to enable it to freely enter the Western market. Colin Hamilton, managing director of BMO Capital Markets' Commodity Research division, said in a telephone call in London that “Russia looks like it will eventually be exempted in all respects”.