Global Leader in Hydro Power and Aluminium
Impact on Global Aluminium Market Yet to be Assessed
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BEARISH FACTORS
SUPPORTIVE FACTORS
Ent
GROUP
Substantial uncertainty regarding the
length of the current "lockdown measures"
critically impacting the levels of economic
activity
Aluminium demand globally has declined as
travel restrictions and industrial production
slow in response to COVID-19
Furthermore suspension of car production
at least for two weeks was announced on:
European plants by such major car
producers as VW Group, Renault-
Nissan, FCA, PSA Group, BMW Group,
Daimler, Ford, Toyota
USA plants by GM, FCA and Ford.
This will cause demand reduction for to
parts and raw materials over whole supply
chain.
+ Current recovery in Chinese industry likely to be positive for demand.
Fewer exports of aluminium from China are seen as a positive for ex.
China demand.
+ Metal prices are at present supported by central bank actions. Overall
market expectation of monetary easing globally has pushed the dollar
lower, and metal prices higher.
+ Aluminium smelters in the US and Europe may start considering capacity
closures on the back of:
+ Low profitability. Around 11 mnt of smelting capacity outside china
suffering from losses at current aluminium prices. At current SHFE
price of RMB11,325/t, all Chinese smelters are loss making.
+ Exports of raw materials from China have been hurt by transport
disruptions, exposing the world's dependency on Chinese caustic
soda, carbon, magnesium and silicon for alumina and aluminium
production.
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Sustainable business
En+ Group overview
Investment highlights
Results snapshot
Power segment
Metals segment
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