Mining Frontier
  • Home
  • News
  • Press Releases
  • Market Reports
  • Sectors
    • Aluminium
    • COAL
    • COPPER
    • DIAMONDS
    • GOLD
    • IRON ORE AND MANGANESE
    • NICKEL
    • NIOBIUM
    • PHOSPHATES
    • PLATINUM
    • STEEL
  • Projects
  • Events & Conferences
  • Contact US
  • More
    • Newsletter Archive 2022
No Result
View All Result
  • Home
  • News
  • Press Releases
  • Market Reports
  • Sectors
    • Aluminium
    • COAL
    • COPPER
    • DIAMONDS
    • GOLD
    • IRON ORE AND MANGANESE
    • NICKEL
    • NIOBIUM
    • PHOSPHATES
    • PLATINUM
    • STEEL
  • Projects
  • Events & Conferences
  • Contact US
  • More
    • Newsletter Archive 2022
No Result
View All Result
Mining Frontier
No Result
View All Result
Home Market Reports

Aluminum: In Search of an Asian Trading Hub, Middle East

March 8, 2016
in Market Reports

China’s objective is to have greater influence on global metals prices…as such, this might be a conducive time for China to participate in the global aluminum derivatives market.

Base Metals Prices Slide
Copper prices have been on a downtrend since 2013. Aluminum held out until November 2014, but has since also been on a continuous decline. Since the early 1990s, metals consumption in China had grown by 14% annually, while demand in the rest of the world grew at a meagre 0.4% — due, in part, to the offshoring of manufacturing operations to China. The offshoring mode has largely run its course. As new supply comes on, it will outstrip demand and this could force higher-cost manufacturing firms to close down.

Hard for Physical Players to Exit Market
Despite the supply glut, there is no easy way out of the sector for some. On the one hand, the Chinese government is under pressure to maintain domestic employment in these industries. On the other, Chinese traders are stuck with Take-or-Pay (ToP) contracts, and the surviving firms have to maintain production even if it means having to take losses on their exports.

Aluminum Flows are More Even Across Regions
China is self-sufficient in the production of primary aluminum. It is, in fact, a net exporter of unwrought aluminum, with US$1.4 billion exported versus US$0.7 billion imported in 2014.

Unlike copper, the American, European & Asian regions each have a fair market share of physical trade flows of aluminum. No country accounts for more than 13% of the import or export market. Japan, the largest importer in Asia, only has 11% market share of global aluminum imports.

The absence of a dominant aluminum hub in Asia might be the reason aluminum futures volumes are relatively light on the exchanges in China and India, and hardly traded on the exchange in Japan. Historically, aluminum derivatives trading has been concentrated in London.

Development of Regional Indexes for Aluminum
However, as large physical volumes flow in and out of Asia and North America, there needs to be some way to price the regional differences. Due to the lack of liquid physically-deliverable futures contracts in these regions, traders have turned to Price Reporting Agencies such as Platts and Metal Bulletin for price discovery.

Previous Post

Packaging steel: environmentally sound power pack for a wide range of optional applications

Next Post

WEC Group Ltd Acquires 7 Million Pound Rotherham Factory to Strengthen Operations at MTL Advanced

Related Posts

GoldON Provides Exploration update on West Madsen Gold Property in Ontario's Red Lake Camp
Market Reports

Donlin Gold announces final 2021 drill programme results

March 4, 2022
PJSC MMC Norilsk Nickel financial results
Market Reports

Anglo American rough diamond sales value for De Beers first sales cycle of 2022

February 3, 2022
Newmont awards contract to K2fly for implementation of RCubed solution
Market Reports

Anglo American reports first rough diamond sales value for De Beers in 2022

February 3, 2022
Intercontinental Gold Provides Update to Delay in Filing Annual Financials and Announces Delay in Filing Interim Financials Caused by COVID-19
Market Reports

Intercontinental Gold Provides Update to Delay in Filing Annual Financials and Announces Delay in Filing Interim Financials Caused by COVID-19

June 1, 2020
North American Nickel Announces Earn-in Agreement with Option to Acquire a 100% Interest in Loveland Nickel Property
Market Reports

North American Nickel Announces Earn-in Agreement with Option to Acquire a 100% Interest in Loveland Nickel Property

January 10, 2020
Rio Tinto well positioned to sustain strong returns
Market Reports

Rio Tinto well positioned to sustain strong returns

November 7, 2019
Next Post

WEC Group Ltd Acquires 7 Million Pound Rotherham Factory to Strengthen Operations at MTL Advanced

No Result
View All Result

Recent Posts

  • FIRST MODE POWERS WORLD LARGEST ZERO-EMISSION VEHICLE FOR MINING GIANT ANGLO AMERICAN
  • Vale and Nippon Steel to evaluate carbon-neutral ironmaking solutions
  • Orica launches lower environmental impact Fortis Protect range of bulk explosives
  • FLSmidth to supply Sabina Gold & Silver with full flowsheet offering at Goose gold mine
  • thyssenkrupp to build first in the world Rail Running Conveyor systems for Tier 1 copper miner
Mining Frontier

System

  • Search
  • Sitemap
  • Feed

Resources

  • Contact US
  • Download Mediapack
  • Home
  • News
  • Press Releases
  • Market Reports
  • Sectors
  • Projects
  • Events & Conferences
  • Contact US
  • More

© 2019 Copyright Valuemediaservices All rights reserved.

No Result
View All Result
  • Home
  • News
  • Press Releases
  • Market Reports
  • Sectors
    • Aluminium
    • COAL
    • COPPER
    • DIAMONDS
    • GOLD
    • IRON ORE AND MANGANESE
    • NICKEL
    • NIOBIUM
    • PHOSPHATES
    • PLATINUM
    • STEEL
  • Projects
  • Events & Conferences
  • Contact US
  • More
    • Newsletter Archive 2022

© 2019 Copyright Valuemediaservices All rights reserved.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In