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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Bauxite Resources announces completion of sale of Yankuang JV and buyback of shares
Bauxite Resources Limited advises that completion of the sale of BRL's interest in the Bauxite Alumina Joint Ventures ('BAJV'), and the Buy-back of all of Yankuang's shares in BRL, occurred this morning following BRL Shareholder approval of the transaction at the EGM held on 18th January 2016. The key changes for BRL, as a consequence of this, are as follows: • BRL's net cash funds have increased by $6m, being the difference between the sale price of $7.15M received for its interest in the BAJV and the buy-back sum of $1.15M paid by BRL for Yankuang's shares in BRL; • BRL has a royalty right of 0.9% of the FOB price (presently estimated to be worth approx. 50 cents per tonne) from the sale of all bauxite mined from the Felicitas and Fortuna tenements. The royalty is payable on the first...
Brazil alumina exports revenue declined 11.8% y-o-y in Dec: MDIC
According to the data revealed by Brazil’s foreign trade ministry, alumina exports of the country remained nearly stable year-on-year in December 2015. A total of 699,456 tons of alumina (aluminium oxide powder refined from bauxite) was shipped abroad last month, a rise from 698,969 tons in December 2014, the figures showed. Revenues generated from alumina exports declined 11.8% to $190 million on a fob basis, in the same comparison, last month, MDIC data showed.
China aluminium imports declined 43% and exports slid 68% y-o-y during Jan-Dec 2015
Chinese aluminium imports in December 2015 was estimated at 4,478 mt, an increase of 141.13 per cent year-on-year, revealed data published by General Administration of Customs, China on January 26. This is in contrast with the annual primary aluminium import data which showed 42.86 per cent decrease year-on-year. Australia topped the list of the countries supplying primary aluminium to China, followed by Oman and the UAE, in the month of December. The Gulf country (UAE) supplied 17,758 mt of the white metal, used in making appliances to luxury automobile and spaecraft bodies, to China during the January-December period, marking a significant 134.35 per cent rise year-on-year. Aluminium shipments from India and Russia declined 57.72 per cent and 85.91 per cent year-on-year respectively...
Aluminium consumption in India picking up with GDP growth: Nalco CMD
Aluminium consumption in the country is slowly picking up in the backdrop of an increase in GDP to 7.3 to 7.5 % this fiscal. Growth in electrical & electronics sectors, construction, transport & automobiles are likely to trigger higher consumption, tough rising imports are a major concern for the industry, Nalco chairman T. K. Chand said recently. "We are passing through a difficult time. World aluminium market is sluggish and is in a slump cycle. Global aluminium production has out-passed consumption by 2.6%, making a surplus of roughly 1.4 million tonne in 2015. Slowdown in consumption in China has resulted in dumping of surplus production of that country in international market, making a steep fall in metal prices," Chand said. Incidentally, an average per capita consumption of 2.2 kg...
General Motors Shanghai VP Mr. Heil to speak at Asia Automotive Lightweight Procurement Symposium
The 4th Automotive Lightweight Procurement Symposium will be kicked off on the 11th of July 2016 at the Jumeirah Himalayas Hotel in Shanghai, China. The AluMag Symposium, which was held the first time in Düsseldorf (Germany) back in 2014, has experienced a steady growth in attendees from 85 at the 1st event to 115 at the 3rd symposium. Though the agenda has not been finalized yet a number of high ranked industry executives have already accepted AluMag`s invitation to speak at the upcoming Shanghai Symposium. Among the booked speakers are Mr. Stefan HEIL, Executive Director Vehicle Manufacturing Engineering at SAIC/GM; Dr. Mark WHITE, Chief Engineer Advanced Body JLR Product Development at Jaguar Land Rover Engineering Centre Whitley and Mr. Ping BAO, Chief Engineer & Director of Auto...
About 60% of bauxite waste affected areas cleaned up in Pahang
The state Fire and Rescue Department, Pahang, confirmed that about 60% of the bauxite waste affected areas has been cleaned up since the cleaning works began on January 14. Its director Datuk Abdul Wahab Mat Yasin said cleaning was expected to be completed earlier than the scheduled date on February 14. "However, the Department of Environment will check and determine whether we still need to do more cleaning. We will comply and utilise all the facilities we have, including the road sweeper, mobile water tank and manpower," he said after attending the department's annual parade here recently. Prime Minister Datuk Seri Najib Tun Razak had recently directed the Urban Well-Being, Housing and Local Government Ministry to conduct cleaning up works in the bauxite mining affected areas here. The...
LME aluminium neutral in $1,453-$1,511 range
LME aluminium looks neutral in a range of $1,453- $1,511 per tonne, and an escape will point a direction. The range is formed by the 50 percent and the 23.6 percent Fibonacci projection levels of a downward wave C, the third wave of a three-wave cycle from the September 9, 2015 high of $1,655.50. It could be hard to conclude that the bounce from the January 12 low of $1,449 has extended or the drop from the December 24, 2015 high of $1,564 has resumed, until the metal leaves the range. A break below $1,453 could cause a loss to the 61.8 percent level at $1,426, while a break above $1,511 could lead to a gain to $1,531, the 14.6 percent level.
Nashtec: Current supply of APYRAL® 40 CD from Sherwin Alumina is secure
Nashtec LLC, a Delaware limited liability company, is a joint venture company between Nabaltec (which holds 51% of the membership interests in Nashtec) and Allied Alumina LLC (which holds 49% of the membership interests). On Monday January 11, 2016, Nashtec’s supplier of aluminum hydroxide required for the production of APYRAL® 40 CD, Sherwin Alumina LLC, filed a petition in the U.S. Bankruptcy Court in Corpus Christi, Texas, for relief under chapter 11 of the U.S. Bankruptcy Code. Sherwin is continuing to operate its business in the ordinary course while under bankruptcy court protection. At the Nashtec facility, this will also cause no supply limitations to the customers. Sherwin’s filings with the bankruptcy court included a proposal to sell its alumina production plant and all of its...
Accuride introduces new lightweight aluminium wheels at HDAW’16
Accuride Corporation, a leading supplier of components to the global commercial vehicle industry - announced it has added two new lightweight aluminium wheels to its product offering today at Heavy Duty Aftermarket Week 2016 in Las Vegas. The wheels are part of Accuride’s effort to provide customers the lightest high-performance steel and aluminium wheels possible. Re-engineered to reduce weight by 5-7 percent, the new aluminium wheels are both standard type 22.5 x 9.00 wheels produced at the company’s aluminium wheel production facility in Erie, Pa. The new wheels will be available effective April 1, 2016. Accuride continues to redesign and light-weight its popular aluminium wheel product portfolio to reduce weight and improve fuel savings for its fleet and aftermarket customers without...
Chelsea FC chooses Sapa's Technal systems for academy extension
Aluminium façade systems from the Technal brand have been specified for a third project at Chelsea Football Club’s training academy campus in the UK - a seamless below-ground extension to an existing pavilion. Sited on green-belt land, the extension demanded a sensitive architectural approach to ensure minimum visual impact in the landscape. Designed by AFL Architects and using the same palette of materials as in the original building at Cobham, in Surrey, the basement extension - now complete - provides additional gym, medical treatment and rehabilitation areas immediately adjacent to the existing fitness and related activities. Excavation of a moat enabled the project to avoid any further outward construction or compromise the original design for the campus. In order to maintain natural...
SaucePM launches ergonomically shaped aluminium beverage can
Packaging and print consultancy SaucePM has developed a new concept within drinks packaging - an ergonomically shaped aluminium can. The innovative packaging format, called Recanize, has been launched today. The shaped can aims to emulate on-trade glassware while offering all the benefits of a traditional aluminium drinks can. Aimed at off-trade brand owners, its launch presents the off-trade with the opportunity to purchase a manufacturing licence for the “revolutionary packaging concept”, SaucePM said. The company has also produced a short video to introduce brands to the Recanize concept, which benefits from global patent protection. SaucePM managing director Neil Shackleton said: “Recanize completed its patent application and is now ready for mass production. To kickstart the launch,...
India aluminium scrap prices remain flat
India major aluminium scrap commodities prices remained flat on Friday, last week, while aluminium futures prices at India's Multi Commodity Exchange settled slightly lower, tracking weakness in other base metals counters as market is witnessing under long liquidation. The major aluminium scrap commodities dropped on Scrap Register Price Index as on Friday. India's major scrap commodities like aluminium accessories scrap, aluminium cable scrap, aluminium ingots, aluminium rod company, aluminium rod local, aluminium scrap, aluminium scrap taint/tabor, aluminium sheet cutting, aluminium utensil scrap and aluminium wire scrap remained flat on Friday. The most active January aluminium contract on Multi Commodity Exchange settled slightly lower by 0.30% to INR 100.75 per kilogram on Friday...
NALCO: If you cannot beat Middle Eastern aluminum smelters, join them
India’s National Aluminium Co. (NALCO) seems to be declaring it will, indeed join them. The state-owned aluminium producer is sending a team to Iran, Qatar and Oman to explore opportunities for setting up a gas-fired thermal power plant and associated aluminium smelter next month according a report in the India Times. NALCO has been looking at a $2 billion project to set up a smelter in Iran’s Kerman province, but sanctions meant it never got beyond the feasibility stage. Now, with sanctions lifted, the firm is exploring all locations in addition to the Iranian project probably with the intent that they can show the Iranians they have other options and negotiate a better deal. New Suitors India is reported by the Indian Aluminium Association (IAA) to have the world’s fourth-largest...
Metro Mining sees major profit hike in doubling bauxite plans
Metro Mining released results of a Pre-feasibility Study showing considerable benefits in increased production under an Environment Impact Statement process. Late last year the State Government requested Metro undertake an Environment Impact Statement - rather than the less onerous Environmental Approval process - for the Bauxite Hills Project. Bauxite Hills is 95 km north of Weipa on western Cape York. Metro’s Pre-feasibility Study (PFS), released to the Australian Stock Exchange today, is based on bauxite production of 4 million tonnes per annum (Mtpa). The company had previously restricted proposed mining to 2 Mtpa. Metro CEO Simon Finnis says increasing production required only minor changes to capital, operational and equipment requirements. “Importantly, the environmental impact of...
XINFA Aurum Exploration Fiji reports decline in bauxite export
XINFA Aurum Exploration (Fiji) Ltd confirmed yesterday a decline in their bauxite export caused due to global recession that hit the economies last year. Ever since then, the demand for bauxite has dropped sharply affecting shipments departing from the shores of Bua. XINFA Aurum Exploration executive Derek Qiu said they only exported two bauxite shipments in 2015, and hoped to resume exports this year. However, he could not confirm any date. Refering to China, the biggest buyer of the aluminium ore, Mr. Qiu said, "Because of the global economy recession, the bauxite mining demand went down;" the demand somewhat declined from the Chinese aluminium producers as well. Mr Qiu added mining works was still in progress despite the low demand from the market. Mr Qiu also added, despite the...
China aluminium stocks fall faster on output cuts and pre-holiday stocking
Aluminium stocks in China’s five major trading markets fell at a faster pace, SMM has learned. SMM attributes the decline to production cuts and downstream stocking before the 2016 Chinese New Year holiday in early February. Production cuts continued affecting aluminium ingot shipments from Northwest China and other regions into China’s major consumption hubs. Some warehouse owners expect arrivals to remain low this week, judging from short-term shipment plans. Aluminium stocks in China’s five major trading markets will continue falling this week, due to low arrivals and pre-holiday downstream stocking, SMM aluminium analyst expects. The table below shows details of aluminium stocks at China’s five major markets:
Job loss fears loom over Fort William aluminium smelter workers
Workers at the aluminium smelter at Fort William have been told that the owners are reviewing its operations. The announcement from Rio Tinto said the review would include its assets in Lochaber. The plant is one of the largest employers in the area. It is thought to support more the 160 full-time jobs. The Scottish government said Highlands and Islands Enterprise was "engaging with the company" to understand the potential impacts of the announcement. The smelter is Rio Tinto's only operational site in the UK and is unique in that it generates its own power from two hydro electric schemes. One is in Fort William and the other at nearby Kinlochleven. The Fort William hydro-powered smelter has more than 160 employees. Around a quarter of them managers and technical specialists. It was...
Indian aluminium makers demand ban on bauxite exports
Battling a spate of cheaper aluminium imports from China and West Asia, aluminium producers have made a strong pitch to the Government of India to either ban bauxite exports or raise exports duty to 50 per cent. The proposal to ban exports of bauxite, the key raw material in aluminium production, is one of the flagship demands of the domestic producers in the run up to the 2016-17 Budget. Bauxite exports from the country are chiefly to China which adds value to the raw material and dumps them back in the form of aluminium and other finished products. Thus, China generates employment in their country and provides export rebate to value added products which are shipped back to India where aluminium manufacturers are forced to operate at depleted capacities. In the last one year, bauxite...
