AL Circle Analysis: Bauxite developments, alumina trade & primary aluminium market dynamics across Australia, Guinea, US & India
The aluminium industry is entering another phase of supply-chain repositioning. Across bauxite, alumina and primary aluminium, companies are investing in new resources, consolidating strategic assets and expanding processing capacity, while governments are increasingly treating domestic supply as a strategic priority. The latest developments from Australia, Guyana, Guinea, Indonesia, the US and India point to a market where resource security, processing location and control over supply chains are becoming as important as production growth. At the same time, new trading mechanisms and changing investment patterns are beginning to influence how aluminium and its raw materials reach the market. Bauxite supply expands, but securing the right tonnes is becoming harder In Western Australia, VBX...
China's 22.87 Mt extrusion market faces a structural shift as 317 GW solar growth counters weak construction demand
The global aluminium extrusion landscape is undergoing a structural transition driven by industrial decarbonisation, global electrification, and the rapid deployment of clean energy infrastructure. Historically anchored by civil engineering and residential real estate, demand for extruded aluminium profiles in China, the world’s dominant manufacturing hub, is decoupling from traditional property sectors. Persistent structural weakness in China’s domestic construction market has slowed the consumption of conventional architectural profiles such as window frames, door sections, and curtain walls. Conversely, advanced industrial applications, specifically solar photovoltaic (PV) racking, battery energy storage systems (BESS), power grid modernisation, and electric vehicles (EVs), have...
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MCX aluminium down by 0.5% on global cues
Aluminium prices fell 0.48% to INR 103.70 per kg in futures trading today with speculators indulged in cutting down their positions, taking weak cues from global markets. Moreover, subdued demand in the domestic spot markets also weighed on the metal prices. At the Multi Commodity Exchange, aluminium for delivery in current month shed 50 paise, or 0.48%, to INR 103.70 per kg, in a business turnover of 134 lots. Metal for delivery in March fell 6 paise, or 0.38%, to INR 104.30 per kg in six lots. Analysts said the weakness in aluminium at futures trade was mostly in tandem with a downtrend in base metals at the London Metal Exchange (LME) on concern that supply gluts and waning demand in China will keep commodities under pressure.
As an educator, Sapa keeps level of technical training high
Increased knowledge is driving the use of aluminium solutions, and Sapa is serving as one of the educators. The company has provided more than 75,000 hours of technical training to external stakeholders since 2013 - and it is not stopping there. The growth in the amount of technical knowledge training that Sapa has provided over the past three years is taking place in all of the company’s business areas and in all regions. In 2016, the company will arrange technical training in around 20 countries for external stakeholders around the world. Spreading global competence locally is a key target. Most of the training is offered free of charge to customers, product designers and developers, technicians, engineers, and architects across markets and industries. Only in a handful of countries are...
China's imported alumina demand to surpass 5 mln mt in 2016
China’s appetite for imported alumina is to grow voracious in 2016. SMM expects, it will surpass 5 million mt in 2016 mainly due to two reasons. First, domestic supply of alumina will tighten following output cuts by some of the major Chinese alumina refiners; and second, sea freight charges are at multi-year lows. FOB price of West Australian alumina is just around USD 205/mt at present. Such low price is still lucrative enough for the aluminium smelters that are located near ports. So, that will provide a reasonable traction to alumina imports. In 2015, however, China imported 4.65 million mt of alumina, down 11.8 per cent year-on-year, and imports were 544,100 mt in December 2015, customs data showed. SMM in its earlier forecast had attributed this decline to the production cuts and...
Metro Mining readies export logistics at growing bauxite project
Metro Mining has further de-risked its developing export business profile by entering into a deal for the provision of transhipment services relating to the Bauxite Hills project in Queensland. The agreement with Bauxite Transhipment Services (BTS) will allow Metro to minimise capital expenditure as BTS will provide all tugs and barges required for the operation. This move is expected to deliver a low-cost and low-risk transhipment solution that does not require any dredging or bed levelling of the Skardon River. As a joint venture between Transhipment Services Australia and indigenous ship loading company Dadaru, BTS will represent an opportunity for Metro to maximise the employment of local people. The terms of the agreement provide the flexibility to expand the transhipping operation...
Altech Chemicals publishes quarterly activities and cashflow report
Altech Chemicals published its quarterly activities and cashflow report for the period ending December 31, 2015. The highlights of the report are given below: 1) Altech signed mandate with German KfW IPEX-Bank for project financing • Exclusive project finance mandate with German KfW IPEX-Bank • Mandate for senior debt, including German Export Credit Agency (ECA) insured debt • Approx. US$40m of ECA cover project debt • Balance of approx. $15m senior debt 2) Altech appointed HPA sales & marketing manager (China) Mr Martin Ma to develop the HPA business in China 3) Altech received Letter of Interest (LOI) for German export credit cover 4) Altech received LOI from Euler Hermes for • German ECA cover • Around 55% of plant and equipment sourced from Germany & additional 10% from Europe • Debt...
Pacific Aluminium sackings spark new maritime row
The political fight over the government’s coastal shipping rules has deepened with the maritime union protesting against Pacific Aluminium’s decision to sack the 16 crew on one of its ships and use foreign workers on its Newcastle-Gladstone route. In a potential flashpoint likely to infuriate key Senate crossbenchers before parliament begins next week, the Maritime Union of Australia accused the Coalition of “giving the green light for another Aussie ship to leave the coast” after the government awarded a special licence to Pacific Aluminium to replace the Australian crew on CSL Melbourne. The situation mirrors a bitter two-month industrial stand-off over the MV Portland in Victoria that ended when the ship’s owner, Alcoa, forcibly removed the crew in a late-night raid. Pacific Aluminium...
Alcoa to appoint three new directors to its Board
Lightweight metals leader Alcoa Inc. has announced that it will appoint Ulrich “Rick” Schmidt, John C. Plant and Sean O. Mahoney to serve on the company’s Board of Directors, effective February 5, 2016. These appointments will further strengthen the company and add valuable aerospace and automotive experience to the Board as Alcoa prepares to separate into two independent companies in the second half of 2016. With these appointments, the Alcoa Board will be expanded to consist of 15 directors. “We are pleased to welcome Rick, John, and Sean to the Alcoa Board,” said Klaus Kleinfeld, Chairman and Chief Executive Officer. “As we prepare to separate into two strong companies, we have been actively working to ensure each has a world-class Board of Directors focused on creating shareholder...
About 51% of Chinese aluminium smelters bearish toward prices this week, SMM survey
About 51% of the 35 Chinese aluminium smelters surveyed by SMM see aluminium prices fall this week. These pessimists expect SHFE 1604 aluminium to fall below RMB 10,600/mt and LME aluminium to fall below USD 1,500/mt. First, spot discounts in domestic spot market have expanded, due to cooling downstream consumption as the holiday nears and stocks in trading markets are beginning to rise. Second, China’s manufacturing PMI remained negative in January. Third, short selling pressure remains strong at highs. Fourth, the US dollar index remains high. Another 35% see SHFE 1604 aluminium hovering around RMB 10,600/mt. Investors will be cautious about entering out of risk aversion ahead of the 2016 Chinese New Year holiday in early February. The rest 14% are bullish that LME aluminium will rise...
US purchased 758 million pounds of aluminum scrap during November 2015: USGS
According to aluminum recycling statistics published by the U.S. Geological Survey, Department of Interior; the U.S. aluminum industry purchased an estimated 758 million pounds of aluminum scrap during November 2015. This is a 1.1 percent down from the November 2014 total of 766 million. USGS estimates that recovery of aluminum and aluminum alloys totaled 652 million pounds, a decrease of 1.5 percent year-over-year. Through November, preliminary data indicate that recovery of aluminum from scrap totaled an estimated 7,602 million pounds, up 3.1 percent from the 2014 YTD total of 7,372 million. U.S. exports of scrap, not included in the government’s consumption statistics, totaled 3,195 million pounds YTD, down 9.5 percent from the same period in 2014.
Sapa strengthens communications team
Aluminium industry increases focus on branding and communication. In tandem with the industry trend, Sapa Group, the world's leading aluminium downstream products manufacturer, is strengthening its communications team. “As the world largest aluminium extrusion-based solutions company in the world, counting 100 production sites in more than 40 countries, and with 23,500 employees, we are a relatively unknown company. However we increasingly see the importance of building our brand and using communication as a driver for growth”, explains EVP Communication Erika Ahlqvist. I am therefore pleased to be able to strengthen our communication department with the appointment of Hilde Haugen Kallevig with her strong communication background and international experience. Hilde Haugen Kallevig is...
JVM Castings appoints new Group Sales Manager
Midlands-based JVM Castings has appointed a new Group Sales Manager to help the company meet growth targets over the next few years. Bob Freeman, who joined the team earlier this month, brings with him 32 years of experience in the castings and automotive industries, most recently with Sales & Purchase Management roles at King Automotive Systems Ltd and Sarginsons Industries Plc. Prior to that, Bob held a Supervisory MP&L role at Jaguar Cars’ Radford Plant in Coventry for almost a decade. His background in aluminium castings for the automotive, construction and civil engineering sectors made him a natural choice for JVM Castings, who in 2014 celebrated their 50 year relationship with Jaguar Land Rover as a Tier 1 supplier. As Group Sales Manager at JVM, Bob will be responsible for...
China aluminum semis exports to rise 14.4% y-o-y in 2016
China will export 14.4 per cent more aluminium semis in 20016 than the corresponding period previous year, after a spike in 2015, SMM expects. Intensified competition among domestic downstream market players will drive down processing fees for aluminium semis. This, along with improving product quality, will further strengthen competitiveness of Chinese aluminium semis in the international market, said an aluminium analyst from SMM. According to customs data, China’s aluminium semis exports declined to 370,000 tonnes in December 2015 from 397,400 tonnes in November. SMM attributes this decline to the rising SHFE/LME aluminium price ratio. In 2015, China exported 4.2 million tonnes of aluminium semis, of which, extrusion exports alone zoomed 39.1 per cent to 1.19 million tonnes;...
US shredded scrap prices stay flat; aluminium scrap prices show down trend
United States shredded scrap prices stayed flat during the week ended January 22, while major US aluminium scrap commodities weekly average prices on Scrap Register Price Index showed negative trend. According to TSI, US Midwest weekly shredded index remained flat during the week at $189 a long ton (delivered mill). Utilization rates at mills have continued to increase, and are now running near 70%, a positive sign for the sector. Mills are, however, still reluctant to buy new supplies, even with plenty of offers going around, due to inventories having been restocked in January. According to participants, inventories will begin to become quite low next week and hence buying will increase again, with supplies expected to be sucked in from the east coast. The weekly average scrap prices of...
Aluminium demand stable in North America despite the volatile market
Preliminary estimates indicate that aluminum demand in the United States and Canada (shipments by domestic producers plus imports) totaled an estimated 23,798 million pounds through November 2015, up nine-tenths of one percent over the same period last year. Demand for semi-fabricated (mill) products totaled 16,960 million pounds, up 4.2 percent. Apparent consumption (demand less exports) in domestic markets totaled an estimated 21,143 million pounds, increasing 4.3 percent year-todate. Aluminum net shipments (including exports) by domestic U.S. and Canadian facilities totaled an estimated 1,700 million pounds during December, down 2.8 percent from the December 2014 total of 1,749 million pounds. Shipments of aluminum mill products decreased 1.0 percent from the previous year to 1,142...
Vedanta to ramp up aluminium SEZ capacity from next fiscal
Buoyed by an order of the state power regulator here, diversified metals and mining major Vedanta Ltd is gearing up to ramp up capacity at its aluminium smelter SEZ (Special Economic Zone) at Jharsuguda from the next fiscal. "The state power regulator, OERC (Odisha Electricity Regulatory Commission), has allowed us to use three 600 Mw units (or 1800 Mw) from our own 2,400 Mw power station to run our smelter. The OERC order will facilitate us to expand our aluminium smelting capacity. With the availability of our own captive power, we hope to ramp up operations from our aluminium SEZ from the next fiscal", a senior Vedanta executive told Business Standard. Vedanta owns two aluminium smelting facilities at Jharsuguda. While the standalone smelter of 0.5 million tonne per annum (mtpa) is...
India mines ministry proposes increase in aluminium duty
The ministry of mines in India has proposed a hike in import duty on aluminium to 7.5% from 5% now, and a correction of the inverted duty structure in the industry, in its pre-Budget communication to the finance ministry. If the proposals are implemented, domestic aluminium makers such as Hindalco, Vedanta Aluminium and Nalco would benefit. However, the mines ministry hasn’t favoured the industry demand for a doubling of the import duty on aluminium metal scrap to 5%. The inverted duty structure is deemed to prevail when the taxes on raw materials are higher than that on finished products, disadvantaging domestic value addition. Explaining the severity of the prevailing situation due to a combination of factors such as lower demand, higher imports and subdued price, a senior mines...
Guinea miner Alufer to produce 5 mt of bauxite in 2017
Guinea-focused bauxite miner Alufer will produce 5 million tonnes of bauxite next year, the mines minister said on Monday, potentially boosting Guinea's output by more than a quarter. Guinea holds nearly a third of the world's reserves of bauxite, the metal used to make aluminium, and currently produces around 18 million tonnes. Some mining investment has been held up due to a global commodity price slump. "Alufer will produce 5 million tonnes of bauxite from 2017 for an estimated cost of $140 million," said mines and geology minister Abdoulaye Magassouba at an event marking the signing of a convention between Guinea and Alufer. The independent miner, whose main Bel Air open-pit mine is located near the West African country's Atlantic coast, is set to eventually ramp up production to 10...
China's appetite for imported bauxite to grow bigger in 2016
China’s demand for imported bauxite will remain high in 2016 after a 53.86 per cent increase in 2015, SMM predicts. SMM expects output of alumina in China that relies heavily on imported bauxite to grow to 20.4 million tonnes (mt) in 2016, and this will boost demand for imported bauxite to 55 mt. China’s customs data showed that the country imported 7.11 mt of bauxite in December 2015, up 118.82 per cent from corresponding period last year, and imported 55.82 mt in 2015. Alumina capacity at Shandong Weiqiao Pioneering Group expanded to 11 million-tpy, the main driver of China’s bauxite import growth. In an earlier report, SMM had predicted, China’s appetite for imported bauxite would decline in the short term. The forecast came after Shandong Weiqiao Pioneering Group and Shandong Xinfa...
