LME Aluminum to Swing Widely (2017-8-30)

[SMM Aluminum Express News] Jordan's Orbit Aluminum Industries expands recycling and rolling operations with US$200 million investment. Orbit Aluminum Industries, an aluminum recycling and coil manufacturer based in Aqaba, Jordan, announced on October 12 that it is expanding its operations through a US$200 million investment across two industrial sites. The project includes aluminum scrap recycling and slab casting at the South Industrial Complex, alongside expanded rolling, coil coating and paint production at the Aqaba International Industrial Estate. The facilities are designed for 60,000 mt/year of hot- and cold-rolled aluminum coil and 30,000 mt/year of coated coil, with development planned in two phases supporting approximately 640 jobs. The facilities will process recycled aluminum from used beverage cans, extrusion scrap and other sources, producing 1xxx, 3xxx and 5xxx series aluminum alloys for construction, transportation and industrial applications. Certain coated products can contain approximately 75% recycled aluminum. The expansion strengthens Jordan's downstream aluminum processing and recycling capabilities, targeting customers in the Middle East, Europe and North America, without adding primary aluminum smelting capacity.

[SMM Aluminum Express News] New Zealand government rejects aluminum industry's request for import protection. New Zealand's government has rejected calls from the domestic aluminum industry for additional measures to protect local manufacturers against imported aluminum products, according to Radio New Zealand (RNZ). The decision suggests that domestic producers will continue to face competition from overseas suppliers without the proposed additional trade protections. The development is primarily relevant to downstream aluminum manufacturers rather than primary aluminum production. Continued import competition could maintain pressure on domestic fabricators and processors, while allowing downstream buyers to access competitively priced imported products. No direct change to New Zealand's primary aluminum smelting capacity has been established.

[SHFE aluminum pulls back while LME aluminum stabilizes slightly; aluminum market tug-of-war between longs and shorts continues sideways trend] Macro-wise, expectations for US dollar rate hikes have cooled, but the dollar remains elevated, continuing to weigh on valuations across the nonferrous metals sector. Industry-wise, the improvement in actual demand during China's traditional peak season has not fully met prior expectations, and downstream purchasing has turned more cautious amid high prices, weakening price support. On Monday, social inventory of aluminum ingots saw destocking of 35,000 mt, providing some price support. Overall, bullish and bearish factors are intertwined for aluminum prices in the short term, and prices are expected to consolidate in a sideways range.