[SMM inventory] Review of major events in aluminum industry in 2020

SMM12 March 31: 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 giant companies, new production, new companies entering the market, as well as anti-dumping, tariff increases and other unilateral actions in Europe and the United States. SMM sorted out the relevant events as follows.

Trump imposed tariffs of 25% and 10% on imported steel derivatives and aluminum derivatives (that is, downstream products), respectively.

Earlier this year, Trump signed an announcement showing that US imports of steel and aluminium products have declined since tariffs and quota restrictions were imposed on imported steel and aluminium products. however, imports of some steel and aluminum derivatives have increased sharply. The US assessment believes that foreign producers have increased exports of steel derivatives and aluminium derivatives to the US to avoid previously imposed steel and aluminum tariffs, which will weaken the US government's efforts to restrict imports to address 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 tariffs of 25% and 10% 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 from Argentina, Australia, Brazil, Canada, Mexico and South Korea, and aluminum derivatives from Argentina, Australia, Canada and Mexico will be exempted from the duties.

Indonesia's Asahan Aluminum (hereinafter referred to as Inalum) plans to build a smelter with an annual capacity of 500000 tons in (North Kalimantan), North Kalimantan province, near Borneo, increasing the company's total capacity to 750000 tons.

The island is rich in bauxite resources. It is not clear when the smelter will be built. The expansion of Inalum's only smelter in Guaradanjung, North Sumatra, has been hampered by power supply constraints, which currently has an annual capacity of 250000 tons, and the company is trying to upgrade the furnace in an attempt to increase capacity to 300000 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, which is responsible for processing bauxite into alumina and is expected to start production in early 2022.

Canada has made the second double anti-sunset review of industrial damage to Chinese aluminum profiles.

On January 13, 2020, the Canadian International Trade Court (CITT) issued a notice to the aluminum profile (Aluminum Extrusions) originating from or imported from China to make the second anti-dumping and countervailing sunset review of industrial damage: if the current double countermeasures of the products involved are cancelled, the imports of the products involved will cause substantial damage to the Canadian domestic industry, so it is decided to continue to maintain the current double countermeasures.

EU makes preliminary decision on anti-dumping against Chinese aluminum profiles

On October 13, 2020, the European Commission issued a notice to make a preliminary anti-dumping ruling on (Aluminium Extrusions) of aluminum profiles originating in China, and decided to impose temporary anti-dumping duties on the enterprises involved for a period of 6 months from the day after this announcement was issued in the official bulletin, as 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 100, 7608 20 81, 7608 20 89 and ex 7610 90 90 (TARIC codes 7604 10 10 11, 7604 10 90 11, 7604 10 90 25, 7604 10 90 80, 7608 10 00 11, 7608 100 00 80 and 7610 90 90 10). The investigation period of dumping and injury 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 injury investigation period.

On February 14, 2020, the European Commission announced that on January 3, 2020, the European Commission launched an anti-dumping investigation into aluminum extrusions originating in China on behalf of European Aluminium (EU Aluminium (EU Aluminium) on behalf of manufacturers whose aluminum profile production accounted for more than 25% of the total output of similar products in the EU.

EU conducts investigation on anti-circumvention of rolled aluminum foil in China

On December 21, 2020, the European Commission announced that it would conduct an anti-circumvention investigation on rolls of aluminum foil (AluminiumFoilinRolls) originating in China. In the filing notice, the European Commission pointed out that the Commission had sufficient evidence to prove that the products involved in the case were re-exported through Thailand (whether marked as originating in Thailand or not) to circumvent the current anti-dumping measures against Chinese rolls of aluminum foil. The EU CN codes for the products involved are ex76071111 and ex76071910 (TARIC codes are 7607111111 and 7607191011).

On December 20, 2011, the European Union launched 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 European Union made a final anti-dumping ruling on the case. On March 13, 2018, the European Union launched the first anti-dumping sunset review investigation on rolls of aluminum foil originating in China. On June 5, 2019, the European Commission announced that it would make a final anti-dumping sunset review of rolls of aluminum foil originating in China.

NALCO achieved the best output of bauxite and alumina in fiscal year 2019-20.

In the 2019-20 fiscal year, under the adverse 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 a net profit of 1.3823 billion rupees, maintaining a profitable state. During the reporting period, the company's output of bauxite and alumina reached 7.302 million tons and 2.161 million tons respectively, the best level in the company's history, and the output of aluminum metal reached 418000 tons.

Cedar Group and Hongqiao International Trade sign Annual Aluminium Ingot long order Cooperation

Recently, Cedar Commodities supply chain Group and China Hongqiao International Trade Co., Ltd., a subsidiary of China Hongqiao Group, signed an annual aluminum ingot long order cooperation, which is expected to achieve an annual cooperation scale of about 1 billion yuan.

Xinjiang Zhonghe new product ultra-high purity aluminum sputtering target substrate has been put into production.

The ultra-high purity aluminum sputtering target substrate, a new product developed by Xinjiang Zhonghe Co., Ltd., has been put into mass production. Liu Jianhao, secretary of the company's board of directors, said that this is a new material mainly used in semiconductors, integrated circuits and other fields. Liu Jianhao: "it took ten years for our company to develop it independently." It can be used as the main supporting material of metal interconnect in semiconductor manufacturing, and it is also widely used in the field of flat panel display and solar cells. at present, the market demand is also increasing.

Japanese aluminum buyers agreed to set the Q4 aluminum premium at US $88 / ton, up 11% from the previous month.

As industrial demand recovered after the COVID-19 epidemic, some Japanese aluminum buyers agreed to set the aluminum premium for the 10-12 quarter at $88 a tonne, up 11 per cent from $79 this quarter, marking the first quarterly rise in five years.

Gansu Guotong has become the designated delivery warehouse of aluminum futures in the previous period.

According to the relevant provisions of the Shanghai Futures Exchange and other relevant provisions, it was decided that Gansu Guotong Commodities supply chain Management Co., Ltd. should become the designated delivery warehouse of aluminum futures in Gansu Guotong Commodities supply chain Management Co., Ltd. in accordance with the relevant provisions such as the Shanghai Futures Exchange's measures for the Management of the designated delivery Warehouse of Aluminum Futures, it was decided that Gansu Guotong Commodities supply chain Management Co., Ltd. Since the date of the announcement, the warehouse No. 968 Shandan River Street, Lanzhou New District, Lanzhou City, Gansu Province has become our designated aluminum futures delivery warehouse with an approved storage capacity of 10,000 tons and regional discount of 350 yuan / ton.

Rusal refutes rumors that the allegations are unfounded and false.

Rusal (00486) announced that it noted a news article in Bloomberg on December 17, 2020 that, inter alia, Mr.Oleg Deripaska would continue to exercise control over the company during 2020. The company strongly refutes the allegations in the news articles, which are unfounded and false.

Alcoa announces agreement to sell rolling business to Caesar

Alcoa announced that it had agreed to sell its rolling mill business to Caesar Aluminium for a total consideration of approximately $670 million, a deal 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 ownership of the plant's 269000 metric tons of aluminum smelter and its power generation equipment. Alcoa will also sign a land lease agreement with Caesar (Kaiser) to acquire the property Alcoa will continue to own at the Warrick site. Upon completion of the transaction, approximately 1170 employees of rolling operations, including foundries, hot mills, cold mills and coating and cutting lines, will become employees of Kaiser Aluminium. The rolling mill produces about 310000 tons of rolled aluminum each year for packaging, including food containers, aluminum cans and bottles.

Colombian aluminum supplier will build South America's first aluminum smelter with a planned annual capacity of 540000 tons

EGA Aluminum of the United Arab Emirates signed an agreement with NEO Aluminio Colombia, an aluminum supplier based in Colombia. The agreement uses EGA's technology output to develop the first aluminum production facility in South America. 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 540000 tons.

Chongqing Shunbo plans to acquire 100% stake in Aobo Company and cut into the field of deformed aluminum alloy.

On November 16, Chongqing Shunbo Aluminum Alloy Co., Ltd. announced that the company intends to acquire 100% equity and related claims of Chongqing Aobo Aluminum Manufacturing Co., Ltd. (hereinafter referred to as "Obo") held by Chongqing Light Textile Holdings (Group) Co., Ltd. (hereinafter referred to as "Light Textile Group") in the form of its own or self-raised cash. The company has signed the "Equity transfer intention Agreement" with the Light and Textile Group. It is understood that Aobo Company was established in April 2006 with a registered capital of 205 million yuan and is 100% owned by Light and Textile Group. The company operates, produces and sells aluminum, aluminum alloy and magnesium alloy strip materials; export enterprises produce a series of aluminum, aluminum alloy, magnesium alloy plates, strip materials and so on.

The United States launches a double-reaction investigation into aluminum foil from five countries.

The Alcoa Trade Law working Group filed a formal complaint with the Trump administration about imports of aluminum foil from five different countries and said it was a follow-up to anti-dumping and countervailing duty measures taken against aluminum foil manufacturers from China two years ago. The American Aluminium Association believes that aluminum foil imported from Armenia, Brazil, Oman, Russia, Turkey and other countries. It is currently selling at artificially low prices in the United States market and believes that they are doing so to protect the domestic aluminum industry in the United States.