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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China’s scrap aluminium imports declined while exports inched higher in December
China imported 167,191 mt of scrap aluminium in December 2015 and 2,086,952 mt of the same commodity during the twelve months period ending 31st December, 2015, according to the data published by the country’s General Administration of Customs in their recently published Exim report. The monthly import figures for December showed a 26.8 per cent decline from the corresponding period last year, while the January-December figures indicated at a 9.5 per cent year-on-year (y-o-y) drop in imports. According to the GAC data, China shipped around 139 mt and 1043 mt of scrap aluminium in December and during January-December period respectively. The monthly data shows 50.75 per cent increase while the yearly data indicates at a 7.4 per cent increase in scrap aluminium shipments y-o-y from China to...
CARSTAR Vision Park hosts aluminium repair sessions
CARSTAR Canada has launched a series of one-day aluminium repair information sessions. The events take place at CARSTAR Vision Park in Hamilton, Ontario. The first of these sessions took place January 26. The next is set for January 27, with two more events scheduled for February 17 and 18. The information sessions are focused on providing CARSTAR’s franchise and insurance partners with a better understanding of the processes used in aluminium repair. Each event follows a set pattern. Representatives of CARSTAR and Pro Spot deliver classroom style presentations on the process, including the importance of making sure the right tools and training are in place before a facility attempts aluminium repair. At the January 26 session, Bill Davidge of CARSTAR and Art Ewing of Pro Spot delivered...
Novelis creates new Sales and Marketing organization to better serve global customers
Novelis, the world leader in aluminum rolling and recycling, announced the creation of two executive positions, Vice President of Sales and Marketing Global Can, and Vice President of Sales and Marketing Global Automotive. Effective April 1, 2016, these new positions will allow Novelis to more seamlessly serve its global customer base and accelerate its global integration strategy. Andy King has been named Vice President, Sales and Marketing, Global Can. In this new role, King will be responsible for driving can business growth, product branding and marketing, and portfolio management across all global markets. Prior to this position, King served as Vice President and General Manager, Can, Novelis Asia. King has held a number of leadership positions with the company since 1996 and has...
Alcoa wins fourth Boeing contract in string of recent deals
Lightweight metals leader Alcoa announced a long-term supply agreement with Boeing for multi-material aerospace parts. Under this agreement, Alcoa will supply components for the 777X-Boeing’s newest commercial airplane-the 737 MAX-scheduled for first delivery in 2017-and the 787 Dreamliner. The deal draws on capabilities gained through the Firth Rixson acquisition and the company’s new aluminium-lithium facility in Lafayette, Indiana. “This is the latest in a series of Boeing contract wins made possible by Alcoa’s recent aerospace investments,” said Alcoa Chairman and Chief Executive Officer Klaus Kleinfeld. “Alcoa has successfully built a strong leadership position in this market and we are proud to see our home-grown innovations and new products create value for our customers.” Under...
Market downturn to hit Nalco profit despite high production
National Aluminium Company (Nalco) chairman and managing director TK Chand on Tuesday said that the company’s profitability would remain depressed during the current fiscal despite achievement of higher production. Chand said that the company is set to close the fiscal 2015-16 with a bauxite production of 63 lakh tonnes registering a growth of 10% over the last fiscal. Similarly, he added, there would be growth of 2.6%, 14 % and 14% respectively in the production of alumina hydrate, aluminium and net power by the end of this fiscal. The CMD pointed out that even though the profitability of Nalco has registered 39% growth in PAT (profit after tax) in Q2 over Q1, it has remained depressed as compared to last year due to continuous downturn in the market. He, however, said that the company...
Vedanta announces results for Q3 and nine months ended Dec 31
Resources giant Vedanta Limited, formerly known as Sesa Sterlite Ltd, announced its unaudited consolidated results for the third quarter ended 31 December 2015. Revenues during the quarter at INR 14,801 crore, were lower by 9% q-o-q due to softening of oil and metal prices, partially offset by improved volumes in the Power business. Revenues for the quarter were 23% lower y-o-y, on account of the fall in oil and metal prices. EBITDA at INR 3,212 crore was 22% lower q-o-q and 48% down y-o-y, primarily due to the fall in metal and oil prices. Depreciation and amortisation at INR 1,770 crore, was higher by INR 110 crore q-o-q on account of assets capitalized in Q3 FY2016 at Aluminium and Power, and a one-time depreciation charge at Lisheen post closure. Depreciation was also lower driven by...
Orbite announces bought deal financing
Orbite Technologies Inc. is pleased to announce that it has entered into an underwriting agreement with Euro Pacific Canada Inc. under which the Underwriter has agreed to buy on a bought deal basis 4,000 units of the company at a price of $1,000 per Unit for gross proceeds of $4,000,000. In addition to the Units distributed pursuant to the Bought Offering, the company has entered into agreements with several of its key suppliers who have agreed to receive an aggregate of 2,938 Units as consideration for outstanding invoices in the aggregate amount of $2,938,000. The company also granted the Underwriter an option, exercisable in whole or in part, at one or more additional closings, at any time within 30 days of the closing of the Bought Offering, to purchase up to an additional 6,000 Units...
Bauxite Resources updates on its quarterly activities and cashflow status
Bauxite Resources Limited (BRL) has recently announced its December 2015 quarterly activities and cashflow results. Following are the financial and operational highlights: - Cash at bank at 31 December 2015 was A$21.1 million and no debt. - Quarter exploration activities were minimal within the Bauxite Alumina Joint Venture (BAJV) as activities were focused on the completion of the sale of BRL's interest in the BAJV to Yankuang. - BRL remains in its joint venture with HD Mining (HDJV) under which all exploration and study costs are met by HD Mining. The current resource base is 87.8Mt - HD Mining have an 'earn in' of up to 60% on decision to mine. Activity Summary for December 2015 Quarter During the quarter exploration activities were minimal within the Bauxite Alumina Joint Venture...
Nalco eyes 10% growth in bauxite output
Beating the slump in world aluminium market, National Aluminium Company (Nalco) is eyeing 10% growth in bauxite production by the close of this financial year. “By the end of 2015-16, the (bauxite) production is likely to be at the level of 6.3 million tonne (mt), a growth of 10%. Similarly, in production of alumina hydrate, there is likely to be a growth of 2.6%, in aluminium 14% and net power 14% by the end of this financial year. In profitability, Nalco has registered 39% growth in profit after tax in Q2 over Q1”, Nalco Chairman and Managing Director T K Chand said in his Republic Day address to company employees. Chand admitted that Nalco’s profitability in this fiscal remained depressed due to continuous downturn. “But, Nalco is determined to make a difference with other industry...
Granco Clark to showcase novel aluminium billet precision technologies at ET16, Chicago
Leading metal processing technology and equipment manufacturer Granco Clark, in their latest issue of quarterly newsletter- Precision, has updated on their four major technology inventions which they will be showcasing at this year’s ET16 to be held in Chicago from May 2-6. Below are the important features and functionality of Granco’s aluminium billet precision technology solutions: Granco Clark Hot Billet Saw The Granco Clark Hot Billet Saw makes smooth, accurate cuts with no deformation. Maximizing an extrusion system’s efficiency, this saw cuts billets to the precise size required just before they enter the press cycle, eliminating the need to stock multiple-length billets. This saw can deliver 100% log consumption. Its compensation-cut system “thinks ahead” and avoids unusable end...
Valspar showcases its best-selling architectural coatings at Architect@Work London
During Architect@Work London, The Valspar Corporation will be exhibiting in booth #48 and featuring two of its most recognizable architectural coatings brands – Syntha Pulvin® powder coatings and Fluropon® liquid coatings. Architect@Work (A@W) London will be held at the Olympia London in the National Hall, January 27-28. With a distinguished 43-year history in the U.K., Valspar's Syntha Pulvin is the premier architectural powder coatings brand in Europe. Trusted by approved applicators across Europe, Syntha Pulvin powder coatings are available in a wide range of colours, textures and performance levels. At A@W, Valspar will introduce Syntha Pulvin's newest offerings: Anodite is a new generation of architectural polyester powder coatings with a smooth, low-gloss, metallic appearance...
Kobe Steel launches new 7000 series aluminium alloy 7K55
Kobe Steel, Ltd. has developed a 7000 series aluminium alloy called 7K55 that offers both outstanding stress corrosion cracking resistance and high yield strength in the 400 N/mm2 class. 7K55 has already been adopted for use as an extrusion for bumper beams by a Japanese automaker. Kobe Steel aims to expand the application of this new aluminium alloy in the future. In the automotive sector, the need for lighter car bodies is growing due to stronger environmental regulations in recent years. Aluminium extrusions for bumper beams and the body framework are an effective way to lighten the weight of cars. As a result, demand for aluminium extrusions is expanding. Bumper beams absorb the energy of a collision and serve to protect passengers from the impact. The 7000 series aluminium alloys,...
LME aluminium to approach $1,511
LME aluminium is expected to approach resistance at $1,511 per tonne, driven by a wave c. This is the third wave of a three-wave cycle from the January 12 low of $1,449. It is progressing towards $1,511, the 23.6 percent Fibonacci projection level of a downward wave C, which is the third wave of a three-wave cycle from the September 9, 2015 high of $1,655.50. A break above $1,511 could lead to a gain to $1,531, the 14.6 percent level, while only a break below support at $1,453, the 50 percent level, could confirm the continuation of the wave C towards $1,426, the 61.8 percent level.
Indian govt mulls buyback route for Nalco stake sale
The Government of India is planning to opt for the buyback route, instead of an offer for sale (OFS), for divesting its stake in Bharat Heavy Electricals (BHEL) and National Aluminium Company (Nalco) so that it can get higher prices from the stake sale. The government expects to garner around INR 9,000 crore from these buybacks whereas OFS is likely to fetch INR 5,600 crore at the current market valuations. The government plans to sell 10% of its stake in BHEL, while it is expected to divest 25% of its stake in Nalco. According to Sebi norms, a company is free to fix the maximum price for the buyback and this price is independent of stock market performance. The final buyback price is usually 20-30% higher compared the current share price. For instance, during the recent buyback of...
MCX aluminium up by 1.2% on global cues
Buoyed by firming trend overseas and rising spot demand, aluminium futures rose by 1.24% to INR 101.75 per kg today as traders created fresh positions. At the Multi Commodity Exchange, aluminium for delivery this month moved up by INR 1.25 or 1.24% to INR 101.75 per kg in a business turnover of 554 lots. The metal for delivery in February contracts rose by INR 1.05 or 1.03% to INR 102.50 per kg in a business turnover of 161 lots. Market participants said besides rising demand at domestic spot markets, a firming trend in the base metals pack at the London Metal Exchange (LME) helped aluminium futures to trade higher.
Asia Alumina: Australia firms $1.50/mt to $204.50/mt as longs contract
Platts Australian alumina daily assessment at $204.50/mt FOB gained $1.50/mt from Monday, January 22nd, as the market continued to gravitate from a long to a more balanced position. Global refining cuts in response to poor margins, and recent consumer restocking and dip buying have put a floor under the market. There appears to have been a creeping up of buying inquiries in the last couple of days. In the past week, consumer and trader sources have noted that offers were harder to come by. Stockholders have said they were in no hurry to offload. A stockholder said he was anticipating demand to pick up in coming weeks. In the meantime, there was the option of storing the tons in China, he said. A Chinese smelter affirmed that sellers were eyeing more than $215/mt CIF China. Platts assessed...
Calcined bauxite demand to rise buoyed by proppants sector growth
Roskill's new release- a Non-Metallurgical Bauxite & Alumina report with forecasts to 2021, shows the ceramic proppants sector is poised to become the largest market for non-metallurgical bauxite by 2021, overtaking the refractories industry. Consumption of bauxite, the principal ore of aluminium, in refractories, both directly and via brown fused alumina, accounted for more than 20% of the total non-metallurgical bauxite market in 2015. Demand for calcined bauxite in production of ceramic proppants is expected to grow by more than five percent per year out to 2021 as North America and China target greater exploitation of unconventional oil and gas reservoirs, according to Roskill's new Non-Metallurgical Bauxite & Alumina report. Within only a decade, hydraulic fracturing has proved to be...
Ghana seeks global investors for bauxite mining
A Principal Mining Officer at the Minerals Commission, Jerry Ahadzi has said that Ghana is in search for investors to exploit its bauxite and other mineral resources. These investors, according to him would also be expected to lead in the development of the entire value chain for these mineral resources. The official said this while throwing light on the potential for the mining industry in the country at the ongoing International training for journalists on the natural resources sector by the Natural Resources Governance Institute(NRGI) here. Ahadzi said just as for the entire continent, only between 10 percent and 20 percent of Ghana’s entire mineral resources have been discovered and currently being exploited. “These minerals (including bauxite) have already been discovered and are in...
