The global aluminium industry is entering a new phase of competition, with access to raw materials, affordable energy and production capacity increasingly shaping the position of major producers. China is preparing a large overseas smelting expansion, Ghana is attracting investment in its bauxite reserves, and India and Vietnam are advancing new aluminium projects. However, the expansion drive comes against a complicated market backdrop. Alumina prices have fallen sharply, energy and logistics costs remain significant, and trade policies are reshaping the economics of production and exports. Together, these developments point to a market in which securing resources is only part of the challenge; converting them into competitive aluminium will matter just as much. Africa’s bauxite...
Bell Bay Aluminium (BBA), Australia's oldest aluminium smelter, is reviewing its workforce and offering redundancies for a small number of positions, just over a month after receiving an AUD 200 million (USD 137.52 million) government support package aimed at securing the facility's future until at least 2031. Up to 10 roles are understood to have been affected by the review, although the smelter is expected to retain its existing workforce of approximately 550 full-time equivalent (FTE) employees. Some redeployment opportunities will also be available, while the positions identified are not understood to involve frontline services. The changes reportedly include some former participants in Bell Bay Aluminium's graduate programme. Rio Tinto, which operates the smelter near George Town in...
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In April 2020, Alcoa announced the suspension of its Ferndale smelter in Washington, following diminishing demand and dropping metal prices. However, war-related sanctions on Russia that had caused aluminium spot price to reach a record high, has boosted the reopening campaign of the Alcoa Intalco Works aluminium smelter. The new owners of the idled Alcoa Intalco Works smelter in Ferndale, Washington, have received $10 million in government funding to restore the decades-old facility. The smelter, on the other hand, consumes a lot of energy to run. And it is now the main issue. A proposal for reduced-rate power to operate the large plant was denied by the Bonneville Power Administration due to high stakes. The restarting of the smelter has suffered a setback, as policymakers are worried...
The Government of Ireland, which is the cabinet exercising executive authority in-country, is pursuing its dialogue with the European Commission and other EU nations in regards to the future of the Aughinish Alumina refinery to safeguard any type of job losses at one of the biggest employer of Limerick County. Following the Ukraine-Russia conflict, Aughinish Alumina’s Russian ownership has been in the headlines and the Ukrainian Ambassador to Ireland professing for it to be pulled down earlier this month. The Irish Fine Gael politician who is serving as Tánaiste and Minister for Enterprise, Trade and Employment since June 2020, Leo Eric Varadkar has been in conversations with his French and Swedish counterparts to avert the 480 jobs at the largest alumina refinery in Europe. If the...
As observed by market experts, China is boosting its aluminium export volume to balance the supply gaps in Western markets. In February, China exported 26,378 tonnes of primary aluminium in February, the highest monthly since 2010, turning into a net exporter for the first time since November 2019. China has brought in a shift in its trade patterns. From being a significant importer during 2020 and 2021 as domestic production failed to match demand, China has moved on to being an exporter as production in Europe is affected by the soaring LME aluminium price and physical premiums. The slower production resulting in a supply crunch in the Western countries has thus led to the surge in export flow of Chinese semi-manufactured products to Western markets. But on the other hand, this is...
LME aluminium opened at US$3,540 per tonne on Thursday and closed at US$3,468 per tonne, down US$78.5 per tonne or 2.21 per cent. On Friday, LME aluminium cash bid price stood at US$3,482.50 per tonne and LME aluminium official settlement price halted at US$3,483 per tonne, with a fall of 0.56 per cent and 0.57 per cent respectively, in comparison with the records of the previous day. The 3-month bid price of aluminium decreased by US$20 per tonne or 0.57 per cent to rest at US$3,497 per tonne. Meanwhile, 3-month offer price had a 0.54 per cent fall resting at US$3,499 per tonne. From data collected the same day, December 23 bid price stood at US$3,350 per tonne and December23 offer price at US$3,355, both witnessing a downward swing of 0.50 per cent or US$17 per tonne. LME aluminium...
Norsk Hydro ASA, a Norwegian aluminium manufacturer, has secured a US$200 million sustainability-linked loan to assist its transition from heavy oil to natural gas, a more sustainable fuel that will help meet its greenhouse gas reduction objectives. Hydro Alunorte, located in the city of Barcarena, State of Pará, is the world's biggest alumina refinery outside of China. The Alunorte alumina refinery in Brazil will be converted as part of the project, which is estimated to reduce CO2 emissions by 700,000 tonnes per year. “The Alunorte fuel switch project is one of the main enablers to deliver on Hydro’s sustainability ambitions to reduce greenhouse gas emissions by 30% by 2030. The strong relationship with the participating banks has enabled us to create a solution linking profitability...
The largest aluminium producer in the GCC region, Emirates Global Aluminium (EGA) has inked a memorandum of understanding (MoU) with PT Inalum (Persero), the largest primary aluminium producer in Indonesia, concerning a strategic alliance to upgrade Inalum's aluminium by 400,000 tonnes per year. However, this needs to be realised that the memorandum of understanding is a make-sure action to Indonesian President Joko Widodo's visit to UAE in November 2021. Husin Bagis, the Indonesian Ambassador to UAE down rightly appreciated the signing of the cooperation between the two aluminium production giants of the two nations. The Ambassador in his official statement said, “The EGA-Inalum cooperation is highly expected because the President has declared the importance of mineral down streaming for...
The production of aluminium from bauxite ore is an extensive process where specific costly items are required to gain alumina powder. Then the extracted alumina powder is sent down to refineries for aluminium production. The process to acquire aluminium more efficiently and quickly rather than this arduous process of extraction and smelting, as aluminium, a metal with excellent recycling properties, its scrap can be recycled through a process of re-melting and then forging it into any shape. The global metal and mining giant Rio Tinto has facilitated the construction of a new re-melting furnace in Quebec to keep up with the sustainability trend around the world. Australian aluminium manufacturers like Capral Extrusion and Tomago have joined hands to carefully carry out the re-melting of...
The German aluminium tube manufacturer with a presence of more than 70 years, Tubex GmbH has taken possession of a Hungarian company in the business of producing aluminium aerosol cans and aluminium tubes Matrametal. However, as of now, the terms of Tubex’s acquisition deal for Sirtok, Hungary based firm Matrametal have not been revealed. Tubex, as a manufacturing company produces aluminium aerosol cans, aluminium tubes, aluminium cartridges and plastic tubes for the cosmetics industry, as well as for pharma, food and technology. Dr Cornelius Grupp, the Managing Director of Tubex Holding said, “The acquisition of Matrametal complements the strategic orientation of the Tubex Group in terms of location, customers and market.” Now, with the acquisition of aluminium packing specialist firm...
This week the global aluminium downstream segment witnessed some limited but sporadic changes, showing that the metal industry is eventually getting on track. Like, Hindalco industries planning to expand its aluminium industry following the record breaking surge in price of the metal over the next 5 years. On a different note, ALVANCE Aluminium Duffel has taken a new approach that will see it shipping aluminium rolled products by barge to the port of Antwerp. On the market side, Hindalco’s aluminium wire rod and billets prices had gone up by INR2250/t following an intermittent cut. Also, the Q3 (3QFY22) results of LB aluminium shows its net profit has declined by .58 per cent to score at RM14.79 million. The European leader in the manufacture and sale of aluminium rolled products for...
As Russia retreats its military activities in some areas of Ukraine, allowing the resumption of alumina refineries and aluminium smelters, the LME aluminium benchmark price begins downsizing throughout the week with the hope of supply chain recovery. Starting at US$3,606 per tonne on Monday, March 28, LME aluminium price on March 29 shrank by US$23 per tonne to stand at US$3,583 per tonne. On Wednesday, March 30, the price plunged by US$75 per tonne to come in at US$3,508 per tonne, and further inched down the next day by US$5 per tonne to US$3,503 per tonne. To know more: https://www.alcircle.com/news/lme-aluminium-price-on-decline-recording-us3-503-t-due-to-russian-retreat-shfe-rises-to-us3-590-t-77981 China’s domestic price of A00 aluminium ingot also downsized through the week from...
On Thursday, March 31, Josh Bunting, the President of Bunting Architectural Metals announced the construction of a new aluminium extrusion facility in Lawrence County with the help of the government Tom Wolf’s administration. Neil Weaver, the Acting Secretary of the department of commerce said that the new extrusion facility aims to create around 80 job opportunities paying 33 per cent more than the average local per capita income. For this project, Josh Bunting had received a loan of US$2.1 million from the state. Bunting has bought the 333,980-square-foot facility at 930 Cass St. in Shenango Township, which is on 24.3 acres. The new plant will be used as an aluminium extrusion mill, producing products for the building, construction, automotive, and transportation industries. Bunting...
The Aluminium Stewardship Initiative has announced the joining of Nedal Aluminium BV as its new Production and Transformation member, which brings the total number of ASI members to 220. Based in the Netherlands, Nedal Aluminium develops, produces and sells aluminium profiles and lighting columns. The company’s aluminium lighting columns are a result of 80 years of research and product development, suitable for every location and every soil type. This is an ongoing process and ensures that the company continues to innovate. On joining the ASI as its 220th production and transformation member, M.T. Veldman, Managing Director of Nedal Aluminium, said: “In line with group policy and values, Nedal Aluminium BV completely endorses the vision, mission and sustainability priorities of ASI – to...
The Bengaluru, India headquartered, a high precision component producer, Sansera Engineering is in the vicinity to bag its first order from BMW Motorrad worth around INR 300-400 crore towards the supply of aluminium forging components, according to the industry experts. However, the deal from the motorcycle brand BMW will be a testament to the organization’s capability to produce small aluminium forged components and probable support it secures more high-value orders from other promising global customers. Furthermore, apart from the incremental business, the deal for high margin aluminium forged components will append to its bottom line. As per our report from the industry experts, the official declaration is anticipated to happen within the next 7 days. Sansera’s order book reveals...
According to the Shanghai Metals Market, social inventories of primary aluminium in China totalled 1.04 million tonnes this week, as of March 31, 2022, across eight major consumption areas, including SHFE warrants. Compared to a week ago, March 24, primary aluminium inventories built up by 2,000 tonnes this week, but down by 11,000 tonnes from Monday, March 28. On Monday, inventories in China gained 13,000 tonnes from 1.039 million tonnes on March 24 to come in at 1.052 million tonnes, found SMM. But with no easing of the pandemic in sight any soon, China’s primary aluminium inventories are expected to dip next week amid the on-going production and supply disruptions. The chart below indicates the current status of primary aluminium inventories across China in more details: In Wuxi,...
Podback, a Nestle and Jacobs Douwe Egberts joint venture in the U.K. is the first cross-industry alliance for the coffee consuming sector in the west. The Podback scheme was launched in 2021 and allows coffee pods from brands including Nespresso, Nescafé, and Tassimo to be recycled when customers return them via drop-off or kerbside collection, depending on location and availability. Pods are airtight containers of coffee equivalent to tea bags which are very important to the coffee machine. Warm water is forced with extreme pressure down the pod to brew the steaming hot coffee each time the release button is pressed. With the emergence of modernisation, human beings can barely afford some dedicated amount of time for a meal. To make the food search easy, companies have come up with ideas...
As per the USGS data, the United States exported a total of 4,000 tonnes of aluminium scrap to Indonesia in December 2021. On a month-on-month analysis, a downfall of 1,850 tonnes or 31.62 percent can be witnessed from 5,850 tonnes in November. In November 2021, Indonesia’s import of aluminium scrap from the United States closed at 5,850 tonnes, showing a decline of 610 tonnes or 9.44 percent from 6,460 tonnes in October. For the same year in October, Indonesia shipped 6,460 tonnes of aluminium scrap from the United States, which on a month-on-month forefront plunged by 910 tonnes or 12.34 percent from 7,370 tonnes in September 2021. The amount of aluminium scrap imported by Indonesia from the United States for September 2021 closed at 7,370 tonnes. As per the USGS data, on a...
World alumina production in February 2022 amounted to 10.606 million tonnes, which included 9.975 million tonnes of metallurgical-grade alumina. That reflected a month-on-month decline of 8.7 per cent from 10.926 million tonnes but a year-on-year increase of 0.8 per cent from 9.897 million tonnes, found the International Aluminium Institute. In the first two months of the year, world’s metallurgical-grade alumina production totalled 20.901 million tonnes, marginally up from 20.864 million tonnes during the same period last year. According to the IAI data, world metallurgical-grade alumina production in February 2022 recorded a hike of 0.80 per cent when compared to the output of 9.897 million tonnes last year. Daily average output of metallurgical-grade alumina across the world during...
LME aluminium opened at US$$3,540 per tonne on Thursday, March 31, and closed at US$3,468 per tonne, down US$78.5 per tonne or 2.21 per cent. The pressure created on Russia by all the other European and Australian metal giants is finally reducing the aluminium price in the London metal market. For three successive days the price of aluminium has recorded decline which brings hope to the Industries who deal with any form of this metal. The Russian forces have left Chernobyl to the Ukrainian Authority and the retreat of the soldiers might bring good news after all for the world economy. LME aluminium cash bid price stood at US$3,502 per tonne and LME aluminium official settlement price halted at US$3,503. The former recorded a fall of 0.11 per cent or US$4 per tonne and the latter decreased...
