Downstream aluminium is where geopolitics meets the shop floor. Tariffs, shipping disruption, regulation and shifting demand are deciding who rolls the metal, who gets it and what it becomes, whether a beer can, a battery housing or a length of wire. Fifteen recent developments across North America, Europe, Asia, the Middle East and Oceania depict how aluminium flat rolled products (FRPs), packaging and electric vehicle (EV) demand are being rerouted, and where traders, exporters and buyers may need to adjust. Aluminium FRP and wire: tariffs and policy redraw the flows The tariff debate has reached the bar counter. In Virginia, Democrat Tom Perriello is campaigning on aluminium tariffs that he says raise brewers’ packaging costs. Across the border, a Windsor, Ontario brewery reports its...
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...
Grow with
AL Circle
The United States alumina imports in the fourth quarter of 2021 recorded a Q-o-Q rise of 22.32 per cent to 411,000 tonnes, unlike bauxite imports which fell during the said period by 11 per cent, found the USGS data. In Q3 2021, the United States imported 336,000 tonnes of alumina, which was, however, down by 12.27 per cent from 383,000 tonnes in Q2. On a year-on-year calculation, the United States alumina imports in Q4 2021 stood 30.89 per cent higher than 314,000 tonnes. But the United States alumina imports in the second half of the year edged 6.51 per cent downfall from 799,000 tonnes in H1 to 747,000 tonnes. But compared to H2 2020, the imports during the same period this year registered an increase of 19.33 per cent from 626,000 tonnes. In full-year 2021, the United States alumina...
The economy of South Korea is comprised of a mixed economic system that incorporates a variety of private freedom, blended with centralized economic planning and government regulation. Following the decades of robust economic development and global integration, South Korea has become a high-technology, industrialized $2 trillion economy led by such sectors as electronics, telecommunications, automobile production, chemicals, shipbuilding, and steel. The country produces both new and old aluminium scrap, although the export volume illustrated uneven movement. The East Asian nation on the southern half of the Korean Peninsula, South Korea exported 64,916 tonnes of aluminium scrap during 2019-21, attracting around $80.70 as revenue earnings. In 2019, South Korea exported 19,788 tonnes of...
ST Extruded Products Group (STEP-G) has joined Aluminium Stewardship Initiative (ASI) as its new member in the Production and Transformation category, taking the total number of ASI members to 214. STEP-G is a multinational company known for the manufacture of extruded aluminium profiles. It has its production sites present in Germany, Belgium and China. Bitterfeld, Bonn, and Vogt are three highly specialised German press facilities that produce a wide range of extruded profiles and bars. The automotive sector and its immediate suppliers place a high value on the company's creative capabilities. Industries like aerospace, construction, rail, mechanical, electrical engineering are also their customer. Different types of processing, as well as component manufacturing, round out the range....
Three-month LME aluminium opened at US$3,302 per tonne on Thursday, March 10, and hit a high and low of US$3,557.5 per tonne and US$3,302 per tonne, respectively, before closing at US$3,400 per tonne. A low level of inventory across the globe amid tight demand-supply situation due to geopolitical risks for the ongoing Ukraine-Russia war is continuing to elevate the LME aluminium prices. However, on Thursday, December 10, both LME aluminium cash bid price and LME aluminium official settlement price gained slightly compared to the previous days. While the formed grew by US$4 per tonne to stand at US$3,534 per tonne, the latter climbed by only US$3 per tonne to close at US$3,535 per tonne. On the other hand, 3-month bid price and 3-month offer price dipped by US$3 per tonne and US$4 per...
As per the market research by John Burns Real Estate Consulting (JBREC), which furnishes independent research and consulting services related to the US housing industry, projects that the usage of aluminium will augment by 34% - 51% in the residential building and construction sector by 2024. However, this would excel record shipment levels last seen in the early-to-mid 2000s. As per the analysis, the growth will be chauffeured by strong demand in the United States housing market along with a growing trend of builders and consumers alike choosing aluminium as a premium material in building construction. The study by JBREC, which was finalized in 2021, made three significant conclusions: Building aluminium market expected to grow at 8% Compound Annual Growth Rate (CAGR): Demand in...
In the fourth quarter (Q4) of 2021, the United States imported 784,000 tonnes of crude and dried bauxite, a decrease of 97,000 tonnes or 11 per cent quarter-on-quarter from 881,000 tonnes. The imports in the third quarter, on the other hand, were 20.03 per cent higher than 734,000 tonnes in Q2. On a year-on-year calculation, the United States’ crude and dried bauxite imports in 4Q2021 registered an increase of 7,000 tonnes or 0.90 per cent from 777,000 tonnes. In the second half of 2021, the United States’ crude and dried bauxite imports totalled 1.665 million tonnes – 16.52 per cent more than 1.429 million tonnes in the first half of the year. In full-year, the imports came in at 3.09 million tonnes, reflecting a downfall of 2.83 per cent from 3.18 million tonnes in 2020. Jamaica...
On Thursday, March 10, China’s aluminium billet inventories crash-dived by 16,500 tonnes or 6.83% a week-on-week, as aluminium prices went down for the third day, found the Shanghai Metals Market. As a result, the inventories registered at 225,000 tonnes. However, conversion margins on aluminium billets continued to rise, drawing attention from the downstream purchasers. Some of the world's largest aluminium extruders have resumed production, which, together with price adjustments in the metal, might hasten the depletion of aluminium billet stockpile. The chart below indicates the current status of aluminium billet inventories across China in more detail: In Foshan, the aluminium inventories dropped by 14,100 tonnes to total at 103,900 tonnes. For the same day in Wuxi and Huzhou, the...
According to the Shanghai Metals Market, social inventories of primary aluminium have built up by 20,000 tonnes week-on-week across eight major consumption areas in China, including SHFE warrants. Data shows inventories have come in at 1.14 million tonnes on March 10 compared to 1.12 million tonnes last Thursday, March 3. Smelters and traders were in a rush to sell aluminium ingots due to growing aluminium prices, but downstream buyers showed a strong wait-and-watch sentiment. The chart below indicates the current status of primary aluminium inventories across China in more details: Primary aluminium inventories have seen the highest growth in Wuxi this week by 16,000 tonnes to stand at 434,000 tonnes, followed by the increase of 8,000 tonnes in Nanhai to stand at 269,000 tonnes, found...
The administration of Joe Biden, the President of the United States of America is advocated by the top members of the ‘House of Representatives Financial Services Committee’ towards reimposement of economic sanctions on Russian oligarch Oleg Deripaska's United Company Rusal, the Russian aluminium giant. While speaking at an American Bankers Association (ABA) summit in Washington, committee chairwoman Maxine Waters, a Democrat, and Republican ranking member Patrick McHenry emerged with independent support to reimpose economic sanctions on Rusal, as in December 2021, it secured waivers from Donald Trump's administration. Maxine Waters said, “I had always opposed the decision by then-treasury secretary Steven Mnuchin to waive economic sanctions against Rusal and that she was further...
Hindalco Industries Limited has revised its aluminium products and aluminium ingot prices back-to-back for the third day in a row, in tandem with the LME aluminium price movement. With effect from Thursday, March 10, Hindalco has increased its aluminium wire rod price by INR 2,500 per tonne to INR 320,350 per tonne, following a massive cut of INR 40,500 per tonne on the previous day to INR 317,850 per tonne. Hindalco’s aluminium billets price has also seen a raise of INR 2,500 per tonne on March 10 from INR 320,850 per tonne to INR 323,350 per tonne. Aluminium ingot price has come in at INR 309,250 per tonne, also up by INR 2,500 per tonne from INR 306,750 per tonne on March 9. Hindalco links its aluminium ingot and aluminium products prices to the three-month future of aluminium on the...
In December 2021, Malaysia imported 38,300 tonnes of aluminium scrap from the United States, falling incessantly by 148,000 tonnes or 27.87% month-on-month. In November 2021, 53,100 tonnes of US aluminium scrap was exported to Malaysia, which escalated by 4,400 tonnes or 9.03% from 48,700 tonnes in October 2021. According to the US Geological Survey (USGS) figures, the total amount of US aluminium scrap exported to Malaysia in the fourth quarter (Q4) of 2021 closed at 140,100 tonnes, highlighting a Q-o-Q plunge of 3,600 tonnes or 2.50% from 143,700 tonnes in Q3 2021. In the third quarter (Q3) of 2021, Malaysia imported a total of 143,700 tonnes of aluminium scrap from the United States. For the third quarter (Q3), Malaysia imported 143,700 tonnes of aluminium scrap from the US, which...
According to the Shanghai Metals Market, alumina production in China during February 2022 (28 calendar days) stood at 5.47 million tonnes versus 6.5 million tonnes in January (31 calendar days). That reflected a downfall of 15.85 per cent month-on-month. The output of metallurgical-grade alumina stood at 5.27 million tonnes in February compared to 6.28 million tonnes a month ago. According to the Shanghai Metals Market, the average daily output of metallurgical-grade alumina in February 2022 stood at 188,000 tonnes. Impact on the roasting capacity of alumina refineries in Shandong due to heating season policy and strict environmental protection was one of the primary reasons for the decline in alumina output during February. In Shanxi, alumina output decreased by 21 per cent...
The world's second-largest metals and mining company, Rio Tinto, has initiated a crucial review of its partnership agreement with Rusal, the Russian aluminium giant for Queensland venture as it looks to cut off all business cords with Russia due to its invasion in Ukraine. On 10 th March 2022, Rio Tinto stated in the present day high-profile corporate withdrawal from Russia, “We are in the process of terminating all commercial relationships that we have with any Russian business.” This announcement has intensified the concerns in regards to the future of Rio Tinto’s majority-owned Queensland Alumina Limited (QAL) in Gladstone, one of the biggest alumina refineries operational in Australia, where Rusal holds a 20% stake. As per industry source, the partnership agreement between Rio Tinto...
LME aluminium opened at US$3,680 per tonne on Wednesday and hit a high and low of US$3,680 per tonne and US$3,300 per tonne respectively before closing at US$3,301 per tonne, a drop of US$380 per tonne or 10.32%. Following a plunge in the price of aluminium on Tuesday, LME aluminium benchmark price rose again on Wednesday, March 9, driven by the pertinent danger of the ongoing Russia-Ukraine crisis. Both LME aluminium cash bid price and LME aluminium official settlement price marched ahead by US$30 per tonne or 0.85% and US$31.5 per tonne or 0.89% to settle at US$3,530 per tonne and US$3,532 per tonne. 3-month bid price and 3-month offer price also stepped up by US$19 per tonne or 0.54% to score at US$3,533 per tonne and US$3,535 per tonne. December 23 bid price and December 23 offer...
In South America, alumina production in January 2022 stood at 995,000 tonnes, reflecting a month-on-month downfall of 9,000 tonnes or 0.90 per cent, found the International Aluminium Institute data. In December 2021, alumina output stood in South America came in at 1,004,000 tonnes, up by 6.24 per cent from 945,000 tonnes in November. In the fourth quarter of 2021, alumina production in South America amounted to 2.934 million tonnes, 3.67 per cent higher than 2.830 million tonnes in Q3 but 2.52 per cent less than 3.010 million tonnes in Q4 2020. On a year-on-year basis, South America’s alumina production in January 2022 recorded a decrease of 6.92 per cent from 1.069 million tonnes. In full-year 2021, alumina output in South America totalled 12.111 million tonnes, up by 2.81 per cent from...
China’s aluminium production in 28 days of February 2022 reflected a positive trend with a daily average output of 105,000 tonnes, up by 2,000 tonnes from 103,000 tonnes a month earlier. Total production in the month came in at 2.95 million tonnes versus 3.204 million tonnes in January (31 days). However, on a year-on-year basis, the output dipped 2.3 per cent from 3.02 million tonnes, showed the Shanghai Metals Market data. Output in the past two months of 2022 amounted to 6.15 million tonnes, which was also down by 3 per cent from 6.34 million tonnes of production during the same period last year. The increase in daily average production leading to a stable flow of monthly output in February could be attributed to the recommencement of production at aluminium smelters or the beginning...
On Tuesday, March 8, Altech Chemicals Limited, a speciality aluminium technology and production company stated that they have started working on its proposed US$144 million listed green bond offering. For this, they have joined hands with UK-based structuring agent Bedford Row Capital Plc and Australian business Bluemount Capital. The main aim of this collaboration is to support the development of its much anticipated high purity alumina (HPA) processing plant in Malaysia. Careful examination of the financial, legal, environmental, social and governance (ESG) components of the project has been finished. Also, legal counsel from numerous nations has concluded their reviews of the content. After an initial bond offering "reach out" phase to potential subscribers, more than 80 businesses...
The growing price of aluminium cans since the beginning of the pandemic has negatively influenced the local breweries like the Brickway Brewery and Distillery in Omaha. However, in light of the current crisis due to the increased sanctions on Russia, the prices of aluminium are expected to inflate higher, majorly affecting the craft breweries. According to Dr Peter Zhu, a supply chain specialist at the University of Nebraska Lincoln, the soaring prices of the aluminium cans during the initial stage was because most of the people were buying canned alcohol to take home rather than sitting at a bar. And currently, aluminium from Russia, the world's third-largest producer of aluminium, accounting for 6% of global output, is unavailable. "All of our products, both our beers and our canned...
