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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Aluminium rolling costs keep on falling
Costs are falling in the rolled products industry, due to both lower LME prices and weak energy prices. Using CRU's Aluminium Rolling Cost (ARC) model, we have shown that costs fell in 2014 and 2015, with 2016 costs likely to continue their downward movement. However, from 2017 onwards we expect costs to start recovering. The profitability of an aluminium rolling mill depends greatly on the plant's raw material allocation strategy. Mills typically source a range of raw materials including primary remelt ingot or liquid, rolling slab, hot rolled coil and a variety of different forms of scrap. The scrap generated in-house, termed run-around scrap, is also utilised to minimize costs. Typically, run-around scrap will make up approximately 30-35% of the total raw material mix. Raw material...
US Shredded Scrap prices rise sharply; US Aluminum Scrap prices show up trend
United States shredded scrap prices rose sharply during the week ended January 15, while major US aluminum scrap commodities weekly average prices on Scrap Register Price Index also showed an up trend. According to TSI, US Midwest weekly shredded index increased by $14 a long ton during the week to $184 a long ton (delivered mill). The slight upward movements seen from mid-December, which were as a result of mills securing early tonnage ahead of expected January price increases, have continued into the new year with mills looking to buy and dealers looking to sell. Although the market retains a bullish outlook for now, some participants feel the upswing in prices may be short lived with mills continuing to operate at near 60% utilization rates. The weekly average scrap prices of Auto...
AluSolutions 2016 announces ASI Executive Director Dr Fiona Solomon as keynote speaker
AluSolutions 2016, the only free exhibition and conference addressing sustainability challenges in aluminium production and processing, has announced Dr Fiona Solomon, Executive Director of the Aluminium Stewardship Initiative (ASI), as a keynote speaker. Dr Solomon brings nearly 20 years of experience in sustainability and corporate social responsibility to her role at the ASI and will present on how the industry can address the environmental, social and governance aspects of the aluminium value chain. Other speakers announced so far, include a representative from European Aluminium, Sustainability Consultant Melanie Williams, Graham Bruce from Taha International Corporation, as well as a representative from the Bureau for Middle East Recycling. The two-day exhibition, being held on...
Ameren in talks with state lawmakers to save Noranda's Missouri aluminium smelter
St. Louis based energy utility service provider Ameren Missouri is in talks with the state lawmakers to help its largest customer, Noranda Aluminum find some way out to evade possible closure of its Southeast Missouri aluminum smelter, reported sources close to both the companies. The smelting facility buys roughly 10 percent of Ameren Missouri‘s power; hence, its closure would mean huge loss for the power utility as well. No wonder, the company has stepped in to find a solution to the situation despite the fact that they have never got along with Noranda Aluminum in Jefferson City. Sources say, Ameren is seeking changes in Missouri utility law that would give it more certainty when it files for rate increases. While no bill has been filed yet, it is reported that Ameren Missouri wants a...
NALCO revives $2 billion Iran smelter plan as sanctions end
National Aluminium Company NALCO will soon send an official team to Iran to explore setting up a smelter complex worth about $2 billion, its boss said, as world powers lift sanctions on Iran that had made negotiations difficult. NALCO Chairman Tapan Kumar Chand told Reuters on Monday that the ending of sanctions on Iran in return for the country's curbs on its nuclear programme could help the company finally move ahead with its long-held goal to set up a smelter there to make use of cheap gas resources. "It's a major bottleneck which has been cleared," Chand said. "As far as Iran is concerned they have already informed us that they are ready to receive the team." Cash-rich NALCO will also visit Oman and Qatar in the next two months to work out the best place to set up a...
Metro Mining secures native title and land access agreement
Metro Mining has finalised a significant life-of-mine Native Title and Land Access Agreement for its Bauxite Hills project, north of Weipa. In a release to the Australian Stock Exchange today, Metro Mining says the agreement, reached jointly with the Ankamuthi People, and the Old Mapoon Aboriginal Corporation (OMAC), is a key milestone to granting of the Mining Lease. ‘The Agreement sets a sound foundation for long term relationship with the Ankamuthi People, Traditional Owners and OMAC, the Trustee owner of the land,” Metro CEO Simon Finnis said. “The agreement includes a Cultural Heritage Management Plan for the Project area, employment and training opportunities for traditional owners, business development and contracting opportunities for Ankamuthi businesses and payment of mining...
Aluminum Association updates on North America’s downstream market
According to an Aluminum Association report shipments of all major aluminium products declined in the month of December. Shipments of can stock by domestic producers totaled 345.5 million pounds during December 2015, off 1.1 percent from the December 2014 total of 349.4 million pounds. Compared to the previous month, shipments rose 3.3 percent over the November 2015 total of 334.4 million pounds. Preliminary shipments for 2015 totaled 4,178.1 million pounds, down 1.7 percent from the 2014 total of 4,250.5 million pounds. Compared to December 2014, producer shipments of can stock to U.S. markets decreased 2.6 percent to 289.9 million pounds while exports increased 7.4 percent to 55.6 million pounds. Estimated net shipments of Aluminum Sheet and Plate by U.S. and Canadian producers totaled...
Aluminium up by 0.3% on global trend
Aluminium futures traded 0.30% higher at INR 100.75 per kg, largely in tandem with a firming trend in base metals at the London Metal Exchange (LME). Besides, increased demand at domestic spot markets influenced prices. At Multi Commodity Exchange, aluminium for delivery in January rose 30 paise, or 0.30%, to INR 100.75 per kg, in a business turnover of 304 lots. Metal for delivery in February was trading higher by 25 paise, or 0.25%, at INR 101.20 per kg in two lots. Analysts attributed the rise to a firming trend at the London Metal Exchange (LME) and pick up in demand at the domestic spot markets mainly influenced aluminium futures here.
Alba inaugurates 2016 ‘Town Hall Meetings’
Aluminium Bahrain B.S.C. (Alba), one of the leading aluminium smelters in the world, kicked-off the inaugural session of 2016 ‘Town Hall Meetings’ on January 14, 2016 at the Oasis Hall. Delivered by Alba’s Chief Executive Officer, Tim Murray, the 2016 ‘Town Hall Meetings’ will brief all employees about the Company’s performance in 2015 along with the expectations for 2016. The ‘Town Hall Meeting’ was a special initiative introduced by Murray in January 2014 to update employees on Alba’s performance and goals through presentations and interactive sessions. Speaking about this initiative, CEO Tim Murray said, “The Town Hall Meetings have become a tradition in our Company as a platform that provides a direct means of communication with our employees. Alba had a remarkable 2015 on many fronts...
Tiwai Point smelter nearing break-even amid global aluminium glut
The future of Tiwai Point aluminium smelter looks healthier. Amid falling alumina prices, global aluminium glut, and a weakening New Zealand dollar, this phenomenon indeed stands out as a milestone for the smelter owner, observe researchers in a recently published assessment note on the prospects for the New Zealand electricity sector this year. "Tiwai remains an uncertainty for the industry," the note says, with options to cancel existing electricity contracts triggering in April and January next year ahead of possible closure in early 2018 or a staged reduction in output. "Surprisingly perhaps, we think the risk of an early 2018 exit remains low despite bombed out aluminium prices," the note added. The smelter uses 13% of all the electricity generated in New Zealand. Its closure would...
Dudley's Aluminium secures a £300k contract to develop Crawley Retail Park
Leading aluminium fabricator Dudley’s Aluminium is posed to start work at the upcoming Acorn Retail Park in Crawley. The park will be built on the outskirts of Crawley, with a host of renowned retailers such as Mark, Spencer’s and Smyths Toys all part of the project, creating employment for the local economy. Dudley’s has secured a £300k contract to provide key structural aluminium fittings at the site. The scope of duty would include creating and installing custom-made aluminium curtain walling and automatic doors. Commenting on the project, Dudley’s managing director Colin Shorney said: “We are pleased to have secured the Acorn Retail Park contract, and look forward to completing our work at the site this year. The retail park will create a number of new jobs, supporting the local...
Louisville aluminium processor names a new president
Tri-Arrows Aluminum Inc. has named Henry Gordinier as its new president. Gordinier previously was the Louisville company's executive vice president for commercial and planning, according to a news release. He rejoined the company in July 2014 after working as vice president of strategic planning for Kindred Healthcare Inc. Gordinier will report to Tri-Arrows CEO Steve Shiraishi, who became president and CEO of the company in May 2015. Tri-Arrows supplies rolled aluminium sheet products produced at its jointly owned rolling mill, Logan Aluminum in Russellville, Ky. The company has annual revenue of about $1 billion, according to the release, and it supplies the beverage container and automotive industries in North America. The company began operations in 1977 as ARCO Aluminum. It was...
Alcoa's aerospace-technology aluminium wheel blanks used for Solomon Alsberg Audi wheel
Alcoa has extended the range of lightweight wheel forgings supplied to Solomon Alsberg for their exclusive high-performance alloy wheels. The aerospace-derived metallurgy of the Alcoa blanks allows Solomon Alsberg to create a wide range of ultra-stylish wheels that improve vehicle performance and dynamics as well as reducing fuel consumption and emissions. The 20 inch blanks supplied within this programme are produced from billets of 6061-T6 aluminium, using the same technology as the wheels it produces for the Boeing 747. The superior strength of this alloy in one-piece wheels allows a significant weight saving over cast or multi-piece wheels. The forging process aligns the metal grains uniformly along the contours of the wheel, allowing less material to be used thus reducing weight....
First Bauxite announces extension agreement with note holders and issuance of US $11 mln note
First Bauxite Corporation is pleased to announce that it has entered into an extension agreement with its note holders to extend from January 19, 2016 to February 29, 2016 the maturity date in all the outstanding notes issued by the company to the Pacific Road Resources Funds and Resource Capital Fund V L.P. The company also agreed to revise the Tranche 2 Purchase Date to February 29, 2016 in the note purchase agreement dated October 30, 2015 between the company and Resource Capital Fund VI L.P. related to the 8% interest bearing convertible note issuable to RCF VI in the principal amount of US$11,000,000. All other terms of the transaction remain in place as described in the company's news release dated October 30, 2015. The existing debt roll-over and tranche 2 closings remain subject...
Report casts doubt on 2016 bauxite supplies
Most news concerning global metal demand and pricing has been gloomy in 2015 and so far in 2016, but a report from a London-based research firm is pointing to a supply factor that could put upward pressure on aluminum pricing. In its new “Metallurgical Bauxite & Alumina” report with forecasts to 2026, London-based Roskill notes that China, the world's largest alumina and aluminum producer, lost Indonesia in 2014 as a significant supplier of bauxite to feed its alumina refineries and now there may be a supply disruption from Malaysia. Following Indonesia’s decision to implement a ban on the export of unprocessed ores [in 2014], China’s aluminum industry “turned to Malaysia in an attempt to fill the void,” writes Roskill. “Malaysia’s ability to rapidly increase its output was demonstrated...
Global high purity alumina market poised to grow at 6.9% over 2016-2021
According to a recently published market research report, the global high purity alumina (HPA) market was valued at US$ 1.2 billion (bn) in 2014 and is projected to grow at a compound annual growth rate (CAGR) of 6.9% during the forecast period to reach US$ 3.6 bn by the end of 2021. HPA is a high-end product of the non-metallurgical grade alumina market. It is a high-value product that serves as a base material for the manufacture of sapphire substrates used in a wide range of applications such as light emitting diodes (LEDs), scratch-resistant artificial sapphire glass, and semiconductor wafers. According to the market assessment, global packaged LED production which is currently witnessing a significant annual growth rate of 9%-11%, is expected to be a major demand driver for HPA....
China aluminium destocking slows on softening consumption
Aluminium stocks in China fell at a slower pace as downstream consumption has softened. Aluminium stocks in China’s five major trading markets fell almost 40,000 tonnes each week on average in December, SMM data showed. However, average weekly decline was just about 5,000 tonnes in the first half of January. Some small and medium aluminium processors have closed early for the 2016 Chinese New Year holiday due in early February, hurting consumption of the light metal, SMM has learned. Aluminium smelters stepped up shipments to regions with massive production cuts, allowing stocks in major trading markets to continue falling, though. The table below shows details of aluminum stocks at China’s five major markets:
Alcoa to delay curtailment of Intalco Smelter
Lightweight metals leader Alcoa today announced it will delay the curtailment of its Intalco Works smelter in Ferndale, Washington until the end of the second quarter of 2016. The plant was initially scheduled to curtail by the end of the first quarter. The company announced a full curtailment of the Intalco smelter (230kmt) on November 2, 2015, with the plant’s casthouse continuing to operate. However, recent changes in energy and raw material costs have made it more cost effective in the near term to keep the smelter operating to provide molten metal to the plant’s casthouse. Once all announced curtailments and closures are complete, the company will have removed approximately 25 percent operating smelting capacity and approximately 20 percent of operating refining capacity by mid-2016,...
