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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Expert says Malaysian bauxite industry needs a stricter system
The Government of Malaysia should draw up more stringent procedures for the industry during the three-month moratorium on bauxite mining, says geologist, Dr Habibah Jamil. Dr Jamil, who is also a part of the Science and Technology Faculty at Universiti Kebangsaan Malaysia, said it was vital because the aluminium ore posed a serious threat to health. “Bauxite is high in aluminium hydroxide, iron oxide and chromium. These elements are inside the fine dust and can be absorbed into the body through inhalation,” she said. “Long term exposure to aluminium hydroxide can cause Alzheimer’s disease while iron oxide will damage the liver." Besides, the red mud makes water murky and kill fish and other life in the ponds and rivers it pollutes. Dr Habibah said the adverse effects on humans might only...
Gateway Extrusions adds new equipment
Fast growing national aluminium extruder Gateway Extrusions, in Union, has implemented the second phase of its multi-phase expansion program with the acquisition of a new 7-inch extrusion press. Purchased and installed this summer, the equipment underwent rigorous testing and calibration before being brought into full operation this fall. The new press represents a major upgrade from the company’s existing 7-inch aluminium press. “This state-of-the-art press has greatly enhanced our capabilities and improved production speeds,” said Tom Ziegler, vice president for Gateway Extrusions. “We’re able to offer our customers the extruded profiles they need in a broader range of lengths and tempering with the new equipment. The system’s features allow us to operate more efficiently, moving from...
Ball Corporation obtains regulatory clearance for Rexam
Ball Corporation BLL announced that the European Commission has granted regulatory clearance in Europe related to its proposed acquisition of Rexam PLC, subject to the divestment of 12 plants in the European Economic Area ("EEA"). Ten of these plants manufacture can bodies, while the other 2 produce can ends. In early 2015, Ball Corporation had confirmed its offer to acquire Rexam. The pending acquisition of Rexam for a cash and stock deal valued at $8.4 billion (£5.4 billion) will create the world's largest consumer packaging supplier. Rexam and Ball Corporation are, respectively, the first and second largest beverage can manufacturers in the EEA as well as the two market leaders worldwide. Ball Corporation was facing hurdles from its shareholders and regulatory bodies on the concern...
Alcoa names Karl Tragl President of Transportation and Construction Solutions Group
Lightweight metals leader Alcoa today announced that Karl Tragl will become President of the Company’s Transportation and Construction Solutions Group. He succeeds José Drummond, who resigned from Alcoa to become CEO of a Brazilian company. Tragl’s appointment is effective on February 15, 2016. Tragl joins Alcoa from Bosch Rexroth AG, Bosch’s $6 billion automation solutions company, where he has held the role of chief executive officer since 2010. While there, he grew revenues significantly across a customer base that spans most of Alcoa’s major markets, including construction and commercial transportation. Highly respected by customers for his expertise in the application of industrial Internet solutions, his insights are expected to help shape the expansion of Alcoa’s digitization, 3-D...
Kaiser Aluminum announces a 12.5% increase in quarterly dividend payment
Kaiser Aluminum Corporation today announced that its Board of Directors has declared a quarterly cash dividend of $0.45 per share representing a 12.5% increase over the prior quarter's dividend. The dividend will be payable on February 12, 2016 to shareholders of record as of the close of business on January 25, 2016. "The increase in our quarterly dividend reflects our continued confidence in the outlook for our business," said Jack A. Hockema, CEO and Chairman. "We are very well-positioned for further long-term growth and shareholder value creation facilitated by strong secular demand for automotive and aerospace applications, and with continued improvements in our production capacity, efficiency, and quality we will continue to capitalize on these growth opportunities. Our priorities...
Chinese aluminium scrap prices stay stable; SHFE aluminium settles slightly higher
Chinese aluminium scrap prices stayed stable on Scrap Register Price Index as on Friday, while zinc futures prices at Shanghai Futures Exchange settled higher amid weakness in other base metals counters as news on aluminium stockpiling by six large smelters has been digested. According to the Scrap Register Price Index, the major Chinese aluminium scrap commodities like 6063 extrusion, aluminium scrap, aluminium can and EC Wire (Al >99%) stayed flat on Friday. However, the most active 1603 aluminium contract on the Shanghai Futures Exchange settled slightly higher by 0.4% to 10,700 yuan per ton on Friday from the previous close of 10,660 yuan per ton. The SHFE aluminium prices touched an intra-day high of 10,750 yuan per ton and an intra-day low of 10,645 yuan per ton during Friday. The...
Alba Chairman receives Ambassador of India to Bahrain
Aluminium Bahrain B.S.C (Alba), a prominent industrial company in Bahrain and one of the world’s leading aluminium smelters, received H.E. Mr. Alok Kumar Sinha, Ambassador of India to Bahrain today, January 18, 2016. Alba’s Chairman of Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa met with H.E. Mr. Alok Kumar Sinha, who was appointed in mid-2015 to his post in the Kingdom of Bahrain. The meeting was held to familiarise H.E. Mr. Alok Kumar Sinha with Alba’s pioneering role as the first smelter in the Middle East and its position as an industrial leader and an economic pillar of the Kingdom of Bahrain. Shaikh Daij thanked H.E. Mr. Alok Kumar Sinha for his visit and hailed the historic and outstanding relations shared between the two countries. He also expressed his keenness...
Hydro's fourth quarter results 2015 to be released on Feb 17
Norsk Hydro ASA, the Norwegian aluminium and renewable energy company announced yesterday that its fourth quarter results 2015 will be released at 07:00 CET (01:00 AM EST, 06:00 UK time), on Wednesday February 17, 2016. The quarterly report and presentation slides will be available on Hydro’s website at the same time. Presentation in Oslo According to the company sources, Hydro will host a combined analyst and press conference, in English, at its corporate headquarters at Drammensveien 260, Oslo at 08:30 CET the same day. The presentation will be held by President and CEO Svein Richard Brandtzæg and CFO Eivind Kallevik and can also be seen on web TV. Q&A / Conference Call There will be a conference call at 15:15 UK Time (16:15 CET, 10:15 AM EST,) the same day. The Q&A will be held by...
About 32% of Chinese aluminium smelters bearish toward prices this week
About 32% of the 25 Chinese aluminium smelters surveyed by SMM paint a dismal picture of aluminium prices this week. They are bearish that LME aluminium will fall below USD 1,465/mt and that SHFE 1603 aluminium will drop below RMB 10,600/mt, citing a series of negative factors: 1. Major Chinese aluminium smelters have announced plans to hoard aluminium from the market, but no action has been taken yet; 2. Downstream producers will begin closing early for the 2016 Chinese New Year holiday due in early February; 3. Global stock market remains weak. Chinese A-share market fell to 2847.54, a one-year low; 4. Crude oil prices will fall as sanctions on Iran are to be lifted soon; 5. US industrial output fell 0.4% MoM in December, triggering pessimism over US Q4 GDP. Another 48% expect SHFE 1603...
The 4th Iran International Aluminium Conference to be held on May 11-12, 2016
The 4th Iran International Aluminium conference (IIAC2016) with the motto "Aluminium, key to a sustainable industry" will take place on the 11-12 of May 2016. In this conference apart from promoting the aluminium industry, the upgrading of aluminium knowledge is also considered of vital importance. With these critical facts in mind, the deadline for full text entry has been set for the 30th of January. According to the scientific committee, about 220 abstracts have been received up to this point. Among the well-known names sponsoring this conference, "Fives" is one of the first to show interest. Also due to the importance of media relations in this conference, Aluminium International Today, Aluminium Times, Metals Market, Iran Mavad, and AlCircle along with a few other renowned media...
China alumina refineries slash 9.1 mt/y capacity since Nov 2015
Large alumina refineries in China have begun to slash output due to rock bottom prices of aluminium, which has 80% of the country's domestic alumina industry operating with negative cashflow, state-backed research house Antaike said on Friday. "Domestic alumina refineries have halted 9.10-million tonnes per year capacity... around 2.30-million tonnes per year alumina capacity will be closed in the near term," Antaike said in a release. Most of the product cut happened in the high-cost regions of Shandong and Henan, it said. China is the world's biggest producer of glut-stricken aluminium.
Rio Tinto posts production growth despite alumina price slump
Global mining behemoth Rio Tinto reported growth in production in its alumina operations in FY 2015. Alumina production from the company's QAL and Yarwun plants in 2015 totalled 6.61 million tonnes (mt), an increase of 355,000 tonnes from the 2014 total of 6.256 mt. The QAL plant produced 3.747 mt, up from the 2014 total of 3.568 mt, and the Yarwun plant produced 2.864 mt, up from the previous year's 2.688 mt. Total global production of alumina including the company's alumina plants in Brazil and Canada in 2015 was 11.837 mt. The 2014 total was 1.212 mt, but that included the company's Gove plant in the Northern territory which was closed down in May 2014.
Hydro remains committed towards environmentally sustainable bauxite mining
The Research Council of Norway and the state of Pará in Brazil has agreed on a new research collaboration. The agreement is important for Hydro's research on biodiversity and forest rehabilitation after bauxite mining. In 2013, Hydro joined an extensive research collaboration (Biodiversity Research Consortium (BRC)) with the University of Oslo and three Brazilian research institutions to provide a research-based approach to replanting after Hydro's bauxite mining in the state of Pará in Brazil. In connection with a recent BRC seminar in Pará, which Crown Prince Haakon also attended, a new letter of intent on academic collaboration and exchange was signed between Pará and the Research Council of Norway. Important for replanting efforts Hydro's vice president responsible for environmental...
Rio Tinto releases solid fourth quarter production results
Rio Tinto released solid fourth quarter production results despite the challenging market conditions. Rio Tinto chief executive Sam Walsh said Rio Tinto remained focused on operating and commercial excellence against the industry's "challenging market backdrop". "In 2015, we delivered efficient production, meeting our targets across all of our major products, while rigorously controlling our cost base," he said. "We will continue to focus on disciplined management of costs and capital to maximise cash flow generation throughout 2016." Highlights for Aluminium Business • Continued strong performance in bauxite exceeded full year guidance of 43 million tonnes, with record third party shipments of 26.6 million tonnes. • Aluminium production was in line with 2014, with record annual...
Price pattern of stronger Shanghai Aluminium prices to change
Base metal prices on the SHFE are expected to be vulnerable to losses this week, Shanghai Metals Market foresees. “China will release a bag of 2015 economic data, and this, coupled with narrower volatility of Chinese yuan in offshore market, will pressure the Shanghai prices, and the condition of SHFE stronger than LME will likely be changed,” SMM says. Overseas investors now also eye on European Central Bank’s rate decision on its January meeting. SMM forecast for most actively-traded contracts in aluminium spot market is 10,580-10,750 yuan per tonne.
LME Aluminium to meet strong resistance
LME aluminium is expected to meet resistance at the 40-day moving average and move at USD 1,458-1,483/mt on Monday. SHFE 1603 aluminium should consolidate at RMB 10,580-10,750/mt. In China’s spot market, spot discounts of RMB 0-10/mt and premiums of RMB 0-30/mt are expected over SHFE 1601 contract.
Yulian Group puts huge aluminium processing project online
According to the industry sources, Henan Yulian Energy Group put online its huge precision aluminium processing project on January 11. The project has an annual capacity of 600,000 tonnes. The project, equipped with melting & casting lines, cold rolling and hot rolling lines, is scheduled to reach full capacity this year, the source added.
Aluminium foil project goes on stream in China Guizhou
Guizhou Xintianli Aluminum Foil Co. brought into service its precision aluminium foil project in Guiyang, Guizhou Province, on January 8, as per a recent report. The aluminium foil manufacturing plant, with total investment at 1.2 billion yuan ($ 185 million), has an annual capacity of 50,000 tonnes, the industry source added. Once fully operational, the project will yield 1.2 billion yuan in annual revenues. Globally, aluminium downstream industry, driven by the packaging industry growth, has been charting heights with every passing year. Despite Chinese economy slowdown, the country's downstream aluminium sector too has shown significant growth prospects. In recent times, the domestic aluminium demand in China has declined, but once the economy is back on track it will pick up. Till...
