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 Zhongwang listed as No. 1 in Top 100 Science and Technology Innovation Enterprises in Liaoyang
Recently, Science and Technology Bureau of Liaoyang Municipal City (the “Science and Technology Bureau”) announced the list of "Top 100 Science and Technology Innovation Enterprises in Liaoyang City”. China Zhongwang was listed as No.1. The Science and Technology Bureau praised China Zhongwang, saying that the Group kept its efforts in “promoting structural optimization with increased production, and enhancing industrial upgrade with innovation”. Sitting on its current situation, the Group cultivates the innovation teams, accelerates the innovation development strategies, and commits to the development of “new, professional and specialized” technological products. The Group’s three new technologies were awarded the Liaoyang Scientific Technology Awards, namely 7N01 aluminium alloy...
Alba holds first Executive Series Training for 2016
Aluminium Bahrain B.S.C (Alba), a leading aluminium smelter in the world, held its first Executive Series Training for 2016 on Sunday, January 10, 2016 at Alba Oasis Hall. The Workshop, part of Alba’s Executive Education series, focused on aligning the management team on what needs to be done to further boost the company’s performance to combat the severe downturn in commodity prices. The training session was delivered by Mr. Mark Magnacca President and Co-Founder of Allego, who is a renowned motivational speaker and also the author of the management book “So What?” Commenting on the Workshop, Alba’s Chief Executive Officer, Tim Murray said: “With the collapse of all-in-aluminium prices it is critical that the objectives of the company are aligned to ensure we survive during these...
Alcoa’s 2016 aluminium forecast upbeat, but it all depends on China
Alcoa Inc.’s upbeat forecast for global aluminium supply and demand in 2016 is bullish. The world’s third largest aluminium company had said in November that it expects a deficit (demand exceeds supply) to the extent of 360,000 tonnes. Along with its fourth quarter results, the company on Tuesday announced an increase in its deficit forecast to 1.2 million tonnes (mt). How did Alcoa arrive at this number? It expects global consumption to rise by 6% in 2016, with China’s demand growing by 8% and rest of the world by 4%. That’s an aggressive forecast, considering the troubles in emerging markets, especially in China, which has a 51.6% share in the 2016 consumption estimate. In 2016, Alcoa expects 4.4 mt of additional production from new or restarted projects too. But crucially, it expects...
European Aluminium and ESTAL join forces
European Aluminium welcomed ESTAL, the European association of Surface Treatment on Aluminium, as a member. To increase benefits to its membership, ESTAL decided to join forces with European Aluminium as of 1st January 2016. Both associations work with the same metal - Aluminium - and are active on the building and the transport markets. European Aluminium and ESTAL together will better represent the value chain, bring more visibility to the aluminium sectors as a whole, and promote the unique strength of aluminium for sustainable and recyclable buildings and vehicles. Together the two organisations will be better positioned to promote aluminium and aluminium surface treatment, and consequently help increase the market share of the members of both associations. Ivo Vermeeren, President of...
US aluminium scrap imports inched higher while exports declined y-o-y in Nov '15
Aluminium imports of ingot, scrap and mill products into the U.S. and Canada (excluding cross-border trade) totaled 417 million pounds in November 2015, up 1.0 percent over the November 2014 total of 413 million pounds. Including scrap, which accounted for roughly 57 percent of reported aluminium exports in November, exports totaled 522 million pounds, down 5.5 percent from a year ago. Excluding scrap, exports totaled 224 million pounds, down 7.3 percent from last year. Exports of scrap decreased 4.2 percent year-over-year. Through November, imports were up 9.0 percent to 5,544 million pounds while exports were off 14.5 percent to 5,851 million pounds. Key U.S. economic indicators released over the past week showed a mixed picture. The strength of the U.S. dollar over the past year or...
AWAC returns to help Alumina pay final dividend
Melbourne’s Alumina is expected to continue to pay dividends despite the crash in prices for its namesake intermediate aluminium product. The impact of the crash in alumina prices hit home yesterday with the release of Alcoa’s fourth (December) quarter results in the US, with Alcoa the manager of the 60-40 global alumina alliance (AWAC) with Alumina. The Alcoa result of $US65 million ($93m) was better than expectations but was down from $US432m in the previous corresponding period, due mainly to savage alumina and aluminium metal price falls. Citi noted that Alcoa’s alumina earnings before interest, tax, depreciation and amortisation margin in the fourth quarter was $US57 a tonne, down from $US95 a tonne in the third quarter and $US100 a tonne in the first half of 20125. Third-party...
Alcoa reports ATOI $98 mln in Q4 2015 despite 24% alumina price decline
Lightweight metal major Alcoa reported fourth-quarter and full-year 2015 results yesterday. Despite lower alumina and aluminium prices, the Upstream verticals remained profitable. In the face of a 24 percent alumina price decline, after tax operating income (ATOI) was $98 million in the fourth quarter, down $114 million sequentially from $212 million and $80 million lower year-over-year from $178 million. Sequentially, cost reductions slightly offset the impact of lower pricing related to both the Alumina Price Index and London Metal Exchange-based contracts and unfavorable foreign currency movements. Adjusted EBITDA per metric ton decreased $38 from third quarter 2015 to $57 in fourth quarter 2015 and decreased $28 year-over-year.
Six Chinese firms to form JV for commercial aluminium stockpiling - Antaike
Six large Chinese aluminium producers in China are considering forming a joint venture company that will handle primary aluminium stockpiling, a report by state-backed research firm Antaike said on Tuesday. The six companies -- four state-owned firms and two private enterprises -- include Aluminium Corp of China (Chinalco), State Power Investment Corporation, Yunnan Aluminium, Jiugang group, Jinjiang group and Weiqiao Aluminium & Electricity, Antaike said. The amount that the joint venture company will stockpile has not been decided, according to the report. An aluminium stockpiling plan has been discussed over the past few weeks after aluminium prices fell to multi-year lows in the second half of last year, and is likely to be funded by commercial loans, sources have said. The...
RUSAL announces staff reshuffling in Aluminium Division
UC RUSAL, a leading global aluminium producer, announces a number of senior staff appointments within the company’s Aluminium Division. Evgeny Popov has been appointed as Managing Director of Sayanogorsk Aluminium Smelter (SAZ). Prior to the appointment, Mr Popov worked as Director of Production Department of the Aluminium Division. Evgeny Kuriyanov has been appointed as Managing Director of Irkutsk Aluminium Smelter (IrkAZ). Prior to the appointment, Mr Kuriyanov worked as Director for Reduction Process at Krasnoyarsk Aluminium Smelter (KrAZ). In their new roles, Evgeny Popov and Evgeny Kuriyanov’s responsibilities will include expanding the range of value-added products (VAP), improving these products’ quality, continuing the RUSAL Business system’s further development, as well as...
China's top aluminium maker aims to raise $490 mln with stock
China Hongqiao Group. Ltd., the world’s biggest maker of aluminium, will raise nearly half a billion dollars from a rights offer underwritten by its founder, highlighting the difficulties of producers amid five-year-low commodities prices. The company’s shares fell in Hong Kong. The Shandong province, China-based company aims to bring in HK$3.84 billion ($490 million) by offering seven shares for every 50 held by shareholders, the company said in a statement to the Hong Kong stock exchange after close of trading on January 8. Chairman and founder Zhang Shiping, who has pledged to underwrite 99 percent of the issue, holds more than 78 percent of Hongqiao through a holding company, according to the statement. “Strategically the raising will address working capital needs and highlights the...
LME aluminium may edge up to $1,511
LME aluminium may edge up to $1,511 per tonne, as it has cleared a resistance at $1,479. The resistance was provided by the 38.2 percent Fibonacci projection level of a downward wave C, the third wave of a three-wave cycle from the September 9, 2015 high of $1,655.50. The next resistance will be at $1,511, the 23.6 percent level, around which the current bounce may end and the wave C will resume. A fall below $1,479 could also signal the resumption of the wave C towards $1,453, the 50 percent projection level.
Viastore to supply automated conveyor solution for aluminium alloy wheel manufacturer
Viastore Systems, a leading material handling automation systems and software company, was selected by Dicastal North America, the North American division of CiTic Dicastal Co. Ltd. of Qinhuangdao, China to supply and install an automated conveyor solution for the company’s new manufacturing facility in Greenville, MI. Dicastal selected viastore after reviewing several companies. While being a Michigan-based company played a role in the selection, Dicastal also selected viastore because of an innovative design solution that reduced Dicastal’s upfront capital costs. “viastore was able to design a system for us that made sense and was economical to your needs to today, yet allowed for growth for tomorrow,” said Bernie Polzin, GM/VP, Dicastal. “We’re eager to get the project underway.” For...
China Zhongwang company recognized as an SME with "High Industrial Growth in Liaoyang"
Recently, Liaoning Zhongwang Machinery and Equipment Manufacturing Co., Ltd, a company under China Zhongwang, was recognized as one of the "Hundred SMEs with High Industrial Growth in Liaoyang" by Liaoyang City Economic and Information Technology Commission. By carrying out the recognition work, the Commission aims to further implement the spirit of the "Opinions of the State Council on Several Recent Major Policies and Moves for Supporting the Revitalization of Northeast China" (National [2014] No.28), to enhance the independent innovative ability of industrial enterprises in the whole city, and to actively encourage the development of the SMEs of high growth rate. The Commission made its decision after corporate application, expert judgments and rounds of discussion among the...
Chalco seeks extending aluminium value chain to downstream
Chalco is seeking to extend its value chain to downstream business against setbacks in aluminium segment after prices of the light metal sank to multi-year lows. Chalco will focus on manufacturing of aluminium semis used in transportation and construction sectors, mainly aluminium used in high-speed train and aluminium formwork, as well as aluminium automotive sheet,Chalco Chairman Ge Honglin was quoted as saying in a recent meeting. China’s demand for construction formwork is about 800 million m2 each year, said Chinese aluminium expert Lang Dazhan in an interview. Should all these formwork be made of aluminium, this will equate to about 20 million tonnes of aluminium consumption,Lang added. Chalco spokesman Nie Zhen said Chalco is planning to build a plan that produces aluminium...
Sapa lends support to Stirling aircraft project
Sapa’s aluminium extrusion company in the UK helped in the reconstruction of a Short Stirling Bomber aircraft used in World War II. The project is a tribute to the people who designed, maintained and flew the historic aircraft. Sapa Profiles UK worked alongside The Stirling Aircraft project team to help construct a forward fuselage section, which incorporates the main crew stations in the plane. The extrusion supplied by Sapa is located at the bottom of the fuselage bomb bay and attaches to the bottom of the frame, where the outer bomb doors are attached. The extrusion is an integral part of the bomb bay structure and acts as the main keel of the fuselage. First of its kind The Stirling Project and Sapa's Steve Nash (right)The Short Stirling Bomber was the first operational four-engine...
Alcoa announces long-term contract with GE Aviation
Lightweight metals leader Alcoa has signed a long-term contract with GE unit GE Aviation for jet engine components in an agreement valued at more than $1.5 billion over the contract life. Under the deal, Alcoa will supply advanced nickel-based superalloy, titanium and aluminum components for a broad range of GE Aviation engine programs. “We greatly appreciate GE’s continued confidence in Alcoa’s aerospace capabilities, and are proud to support its advanced jet engine programs through this agreement,” said Alcoa Chairman and Chief Executive Officer Klaus Kleinfeld. Alcoa will employ advanced manufacturing capabilities to produce the parts across several facilities including LaPorte, Indiana; Whitehall, Michigan; Hampton, Virginia; Dover, New Jersey; Wichita Falls, Texas; Winsted,...
Glencore’s U.S. unit Sherwin Alumina files for bankruptcy
Sherwin Alumina Co., the troubled U.S. unit of commodities company Glencore Plc, filed for chapter 11 bankruptcy Monday as a protracted slump in the price of aluminum and a labor lockout strained the alumina plant operator’s finances. Sherwin entered bankruptcy with a plan to sell its assets to another Glencore unit called Corpus Christi Alumina, in exchange for forgiveness of $95 million in debt plus $250,000 in cash. Commodity Funding LLC, another Glencore unit affiliated with Corpus Christi, has also agreed to provide $40 million to Sherwin to fund its operations during the bankruptcy case. The company hopes to gain court approval of a plan to test that offer at auction on March 23 and ultimately exit bankruptcy by March 31, according to court documents. “Glencore is supportive of the...
Noranda issues statement regarding its New Madrid aluminum smelter
Noranda Aluminum Holding Corporation today announced that production has been idled at two of the three pot lines at its aluminum smelter in New Madrid, Missouri, following an electrical supply circuit failure. The electrical supply circuit failure occurred shortly before 1:00 p.m. Central Time on January 7, 2016 and no serious injuries were reported. Noranda is assessing the incident to determine its root cause. The third pot line was not directly affected and production in that line has continued. As Noranda's Flat-Rolled Products business sources metal from a portfolio of suppliers, the Company believes it has access to sufficient sources of aluminum to meet customer commitments for flat-rolled products. The Company is evaluating its ability to meet customer commitments for its primary...
