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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Indian aluminium in 2016: can a turnaround happen?
Aluminium producers in India are looking to the US and other export markets with hope in the new year, after the double whammy of cheap Chinese imports and low prices for the silver -white metal for almost all of 2015. As in other countries, the overall global commodity free fall was the main cause of the mayhem for Indian producers. Aluminium prices dropped from a monthly average of $2,455 a metric ton in 2011 to the recent $1,468 per mt. A large number of Indian aluminium majors are now staring down capacity shutdowns and operational losses. Companies such as Vedanta have been negatively affected. What can save Indian aluminium? There are three factors aluminium producers are banking on: more and newer innovative uses of aluminium, especially by US companies, India’s economy improving...
Schuler adapting hot-forming technology to the rising demand of automotive aluminium alloys
Schuler, the technological and global market leader in metal forming equipment such as presses, automation, dies, with deep process know-how is adapting the technology of hot forming to the special demands of high-strength aluminium alloys used in automobile manufacturing. The lightweight construction material, aluminium, is becoming increasingly important for the automotive industry, due to its high strength and low weight. High-strength aluminium alloys offer the greatest potential for weight reduction in body construction. With the newly developed technology of hot forming of aluminium sheet, now it is possible to produce complex geometries. High-strength aluminium alloys make special demands on shaping processes with regard to formability. In a cold state it is only possible to form...
Environment Ministry re-issues APs for bauxite mining in Pahang
The Natural Resources and Environment Ministry has approved the re-issuance of Approved Permits (AP) for bauxite-mining near Kuanatan area in Pahang. Its minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar said the APs to be given back to the mining sites were to enable the relocation of the 70,000 metric tonnes of bauxite to other areas. He said the process to release the licence will be done by the Chief Secretary to the Government today, and they hope that the relocation could be done by tomorrow latest. “I had ordered the issuance of the APs yesterday. This is to enable them to export the bauxite to other areas for clearing purposes. We do not want them to throw the bauxite into the river and pollute the water. The Chief Secretary to the Government will process it by today and hopefully...
Aluminium-intensive JLR lines up for 2016 Qatar Motor Show
Jaguar Land Rover MENA and its exclusive retailer partner in the State of Qatar, Alfardan Premier Motors Co., have confirmed their participation in the sixth edition of the Qatar Motor Show. Running from January 28th to February 1st 2016, the Qatar Motor Show will take place at the Doha Exhibition and Convention Centre (DECC). Celebrating British innovation at its best, Alfardan Premier Motors will be displaying the All-New Jaguar XF on stand giving motoring fans a glimpse at the dynamic, coupé-like, aluminium-intensive, lightweight saloon vehicle. Underpinned by class-leading driving dynamics and refinement, the All-New Jaguar XF brings an unrivalled blend of design, luxury, technology and efficiency to the business car segment. The car’s dynamic design is formed around Jaguar’s...
Russia's Rusal eager to enter China's aluminium sector
Russia's leading aluminum maker Rusal wants to enter China's aluminum downstream production industry through joint ventures, Rusal CEO Vladislav Soloviev said at the World Economic Forum in Davos on Friday. Soloviev said he sees the downstream aluminum production industry, which makes aluminum products such as wires and alloys, has big potential to develop in China as the country has the benefit of economies of scale and market demand. Currently Rusal has a partnership with China North Industries Corporation established in 2011, under which Rusal bought a 33 percent stake in Shenzhen North Investments Corporation Limited, a trading affiliate of China North Industries Corporation specializing in aluminum, alloys and non-ferrous metals. The share purchase led to the establishment of the...
Protect Indian metal industry from imports: Anil Agarwal
Anil Agarwal, chairman of Vedanta Resources, has called upon the government to do everything to protect Indian metal industry from the ravages of indiscriminate foreign imports and help revive stalled manufacturing projects. In an impassioned plea to Prime Minister Narendra Modi and finance minister Arun Jaitley ahead of the budget, Agarwal said manufacturing has a multiplier effect on GDP and growth. "Investments made cannot be allowed to suffer. We can't keep them idle. The government should ensure that existing businesses are not on crutches and they don't start bleeding," he told ET in Davos. Vedanta has been forced to curtail aluminium production due to lack of bauxite availability and its iron ore business in Goa has been hurt by government-imposed export duty. Vedanta has also been...
Sohar Aluminium’s output at 377,186 tonnes in 2015
The collective output of primary aluminium by the five GCC producers - Emirates Global Aluminium in UAE, Alba in Bahrain, Ma’aden Aluminium in Saudi Arabia, Qatalum in Qatar and Sohar Aluminium in Oman - stood at 5.27mn tonnes in 2015. This was seven per cent higher than in 2014. Sohar Aluminium’s total production in 2015 stood at 377,186 tonnes. “Record GCC output reflects the continuous improvements in efficiency and optimisation of resources,” said Mahmood AlDaylami, secretary general of the Gulf Aluminium Council. GCC aluminium production constitutes ten per cent of total global output and is considered one of the key economic drivers for the Gulf region, a press release said on Sunday. Nearly 40 per cent of the total production is utilised by the downstream aluminium industries in...
Jaguar's posh new aluminium rich XF to debut in SA next month
Jaguar's all new, second generation XF sedan will be launched in South Africa next month with a range of engine choices. The premium car maker says the 2-litre turbodiesel version will be the most efficient car in the midsize premium sedan class. Though the new XF’s general profile is very reminiscent of the outgoing model, the completely new and aluminium rich chassis structure mean it weighs up to 190kg less. This diet plan combines with a freshly-sculpted and also aluminium intensive body which is 10 percent more aerodynamic than the previous model’s. Under the bonnet is the same 132kW/430Nm “Ingenium” diesel engine as found in the smaller XE sedan, paired with the same eight-speed auto gearbox. Jaguar says acceleration from 0-100km/h takes 8.1 seconds, but when driven frugally an...
Nanshan Aluminum mulls acquiring Shandong Yili Power's asset to extend value chain
Nanshan Aluminum has been reported to be mulling over plans to acquire aluminium asset and captive power plant of Shandong Yili Power. The acquisition is being strategized as an important step towards integrating its value chain further, Nanshan Aluminum said in a disclosure filed with the Shanghai Stock Exchange. On completion of the transaction, estimated at 7 billion yuan (as per China Securities), Nanshan Aluminum’s aluminium supply will expand from current 136,000 tonnes to 816,000 tonnes. Nanshan Aluminum, a vertically integrated company that covers thermal power, alumina, aluminium and aluminium semis, has over 1 million tonnes an aluminium processing capacity.
LME aluminium likely to consolidate this week
LME aluminium is expected to consolidate this week, SMM expects. Firm US dollar, depressed global stock market and falling commodity prices will keep LME aluminium in check between $1,470-1,500/mt. SHFE 1603 aluminium should move at 10,700-10,900 yuan per tonne, supported by tight supply in domestic spot market, but capped by selling pressure at highs. Inflow of deliverable goods will ease tightness in China’s spot market. Downstream stocking before the 2016 Chinese New Year holiday in early February will allow suppliers to hold offers firm. Spot premiums of 50-100 yuan per tonne are expected over SHFE 1602 aluminium.
AluSolutions: New speakers announced
AluSolutions 2016, the only free exhibition and conference addressing sustainability challenges in aluminium production and processing, is excited to announce confirmed speakers from Rio Tinto, Norsk Hydro and Schueco. Taking place on 10th – 11th May 2016 at the Abu Dhabi National Exhibition Centre, the AluSolutions conference will demonstrate how the aluminium industry is making continuous improvements in the environmental efficiency of producing aluminium, as well as its sustainability benefits in end-use applications. The second day of the conference (11th May) will host Dr Fiona Solomon, Aluminium Stewardship Initiative (ASI) Director, as keynote speaker. Dr Solomon brings nearly 20 years of experience in sustainability and corporate social responsibility to her role at the ASI and...
Ma’aden announces reduction in profits and increase in production and capacity
The Saudi Arabian Mining Company (Ma’aden) announces a net profit of SR605 million for the financial year 2015, a decrease of 55% compared to its 2014 financial net results. Speaking on these results, Ma’aden CFO Khalid Al-Rowais pointed out that the company has been impacted with the decline of commodity prices, specifically in the aluminium business. However, looking at the overall performance of the year, Ma’aden has achieved the highest production levels in a number of sectors including phosphate where production exceeded 2.6 million tons of phosphate fertilizer compared to 2.4 million tons in 2014. The company’s aluminium sales also reached 836,000 tons of aluminium compared to 663,000 in 2014 while its gold production jumped to 164,000 ounces compared to 154,000 ounces of the...
Malaysia bauxite mining ban may be extended further
Malaysian ban on bauxite mining may be extended. CBIX was down 1.1% (US$0.5) over the week, finishing at US$47.1/dmt, as lower prices from non-Malaysian suppliers continued their trend lower. Sentiment from Malaysia suggests authorities are likely to take a hard line approach to ensuring bauxite miners meet environmental standards. Given the improvements necessary to meet the standards by most of the miners (lead times on equipment purchase, installation etc), it may take longer to achieve than the three-month duration of the current ban. Some industry insiders are now suggesting the ban may be extended to five months (from three). Miners and exporters are currently clearing stockpiles and planning for the necessary process upgrades. Despite the turmoil, Malaysian bauxite prices were...
Aluminium beverage can recycling at new record high
The overall recycling rate for aluminium beverage cans in the European Union, Switzerland, Norway and Iceland increased by 1.8% to a new record level of 71.3% in 2013. European Aluminium considers this result an important milestone on its path towards its voluntary recycling target for used beverage cans of 80% by 2020. From its first introduction more than 50 years ago, the aluminium beverage can has been an integral part of the Circular Economy. It is infinitely recyclable without loss of its properties and its value. This makes it the ideal packaging solution to help achieving the new ambitious EU recycling targets proposed for the years 2025 and even 2030. Maarten Labberton, Director of the European Aluminium Packaging Group stresses the need for more efficient collection, sorting and...
EGA team develops new system to cut power costs in aluminium production
A team of engineers at Emirates Global Aluminium (EGA), the fifth largest aluminium producer in the world, has developed a unique cathode structure that could reduce operating costs at the plants significantly. Aluminium production is an energy-intensive industry, such that using less energy during the production process reaps a number of benefits – including lower operating costs and reduced emissions levels. Over the past 25 years or so, EGA has made substantial investments in developing technologies that ensure continuous improvements in the company’s operations, with energy-efficiency being at the top of the agenda. More recently, efforts have been launched to protect the company’s inventions through applications to patent EGA’s proprietary technologies. Since 2014, EGA has worked...
Nalco to scan sites in Iran, Qatar for smelter unit next month
State-owned aluminium maker Nalco will send a team of officials to Iran, Qatar and Oman as early as next month to explore opportunities for setting up a gas-based thermal power plant and an aluminium smelter. Previously, the over $2-billion project was slated to come up at one of the specially designated economic zones in Iran's Kerman province, but could not materialise due to sanctions on the Persian Gulf nation, a source said. "Now as the sanctions have gone, Nalco will send a team to Iran to explore options for setting up the project by next month or March. They will also visit Oman and Qatar. Since we can get really cheap power in these countries, this will help bring down production cost," he added. It takes around $1,500-1,700 to produce one tonne of aluminium metal, with alumina...
Aluminium down 0.1% on subdued demand
Aluminium prices eased by 0.10% to INR 100.90 per kg in futures trade today as participants trimmed positions, tracking a trend at spot market on sluggish demand. At the Multi Commodity Exchange, aluminium for delivery in far-month February eased by 10 paise, or 0.10% to INR 100.90 per kg in business turnover of 44 lots. Likewise, the metal for delivery in January contracts weakened by 5 paise, or 0.05% to INR 100.10 per kg in 1032 lots. Anlysts said the weakness in aluminium at futures trade was mostly owing to slackened demand from consuming industries in the spot market.
China to export more semi-fabricated aluminium in near-term
China's exports of semi-fabricated aluminium products will rise in the near-term as delivery premiums have stabilized and increased in consuming markets, Macquarie Bank head of commodities research Colin Hamilton said on Thursday. "China is going to be exporting deflationary pressures to the global aluminium market for quite a while now," Hamilton said in a presentation at the Platts Aluminum Symposium in Fort Lauderdale, Florida.
