Major aluminum market developments in September

Production;

September 16 - Russia's UC RUSAL will revive a project to build an alumina refinery in the country's north. The project to build 700,000 tonne alumina refinery in the Komi republic was postponed indefinitely in 2008 as RUSAL decided to cut output of alumina and aluminium due to the global economic crisis.

September 16 - Brazil's Alumar alumina refinery has been hit by power and commissioning problems but should be producing consistently more than 9,000 tonnes per day by year end.

September 15 - Norsk Hydro said that aluminium production had resumed as planned at its Qatalum smelter in Qatar. The plant was hit by a power outage in August.

September 15 - Norsk Hydro said that it may convert its troubled Neuss aluminium plant in Germany from a producer of primary metal to a recycling unit. The company said in April it may close Neuss, Germany's largest aluminium smelter because of high German power costs. In January 2009 Norsk had said it was cutting aluminium output at Neuss and was reviewing its future.

September 13 - The Aluminum Association said that the annual rate of primary US aluminium production rose 9.4% to 1,718,667 tonnes in August from 1,570,783 tonnes in August 2009 but was down 0.2% from July's annual rate of 1,722,329 tonnes. For the year through August, the annual production rate was down 3.9% at 1,714,950 tonnes from an annual production rate of 1,784,967 tonnes for the comparable 2009 period.

September 13 - China produced 10,835,000 tonnes of primary aluminium in the first 8 months of the year up 37.4% from year ago levels. Output of alumina rose by 37.6% over the same period to reach 19,490,000 tonnes.

September 10 - Kaiser Aluminum Corporation said that all smelting related activities at its Anglesey aluminium plant in Wales will be decommissioned. It said that the site would continue to operate a remelt business.

September 7 - Argentina's Aluar said that it expects to bring on stream another 48 new electrolytic cells at its main plant early next year. The primary aluminium plant located in the southern city of Puerto Madryn has already installed 24 electrolytic cells which will boost capacity by 15,000 tonnes per year when they become fully operational. The cells are the second phase of USD 1.5 billion expansion which aims to increase annual production to 465,000 tonnes from last year's 412,000 tonnes.

September 3 - Noranda Aluminum Holding said that it expects to increase production at its New Madrid smelter by about 35 million lbs by 2013. It said that the smelter has initiated steps to complete USD 38 million capital project.

September 1 - India's environment ministry said that it has found serious violations of green laws in Vedanta's existing alumina refinery in eastern India, the latest in the London based firm's mining troubles in India. In a letter to the company posted on the ministry's website, it also asked Vedanta to explain why the environment clearance given to its 1 million tonnes per year plant in Orissa state should not be revoked.

Prices;

Aluminium performed strongly in September with 3 months prices ending the month at USD 2,351 per tonne up around 14% from the previous month. An early high for the month of USD 2,204.75 was reached on September 6. The market retreated after that as risk aversion re emerged but not for long.

A weaker dollar also helped bolster prices at times and aluminium ended September around the month's highs. The market went on to make further gains in early October and pushed through USD 2,400 for the first time since late April. Gains have since been pared.