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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Glencore increases Century Aluminum stake slightly
Glencore converted some of its preferred shares in mid-sized US aluminium producer Century Aluminum into common stock worth about $200 000 at the end of 2015, boosting its stake slightly, a filing showed on Tuesday. The Swiss trader and miner, which was already Century's largest shareholder, converted 456.38 convertible preferred shares into just over 45 000 common shares, taking its overall stake to 37.35-million common shares. The raises its stake to about 42.97%, up slightly from 42.91%. Century's shares have plunged by about 85%, to around $4.30, over the past year as a global aluminium surplus and concerns about slowing economic growth in China, the world's top producer and consumer, have curtailed metal prices. Aluminium prices have lost about a quarter of their value since May last...
U.S. aluminium and aluminium alloys recovery rate falls 7.5% y-o-y in Oct 2015
The U.S. aluminium industry purchased an estimated 757 million pounds of aluminium scrap during October 2015, according to aluminium recycling statistics published by the U.S. Geological Survey, Department of Interior, down 7.0 percent from the October 2014 total of 814 million. USGS estimates that recovery of aluminium and aluminium alloys totalled 654 million pounds, a decrease of 7.5 percent year-over-year. Through October, preliminary data indicate that recovery of aluminium from scrap totalled an estimated 6,593 million pounds, down 1.7 percent from the 2014 YTD total of 6,710 million. U.S. exports of scrap, not included in the government’s consumption statistics, totalled 2,897 million pounds YTD, down 10.0 percent from the same period in 2014.
Chinese auto market buoyancy fails to keep domestic aluminium demand afloat
Primary aluminium production curtailments plus rumours of imminent stockpiling of aluminium helped lift prices in December 2015. From an all-time time low of RMB9870/t hit in late November, the SHFE cash price has since rallied, and reached RMB11,200/t by the end of the year. At the start of 2016, prices again dipped as concerns developed over the financing of any stockpiling program. However, despite the pick-up in SHFE prices, the Chinese market remains soft. Demand is still struggling in key sectors such as construction and consumer durables although the automotive market has picked up in the last two months, thanks partly to cuts in auto sales taxes. The CNIA in China has called for semis VAT export rebates to be increased further. As of yet the Chinese government has not heeded this...
Kaiser Aluminum appoints Keith A. Harvey President and COO
Kaiser Aluminum Corporation announced yesterday the appointment of Keith A. Harvey as President and Chief Operating Officer. Mr. Harvey has served as the company's Executive Vice President - Fabricated Products since June 2014 with full responsibility for the sales, marketing, manufacturing and advanced engineering functions of the company's Fabricated Products business. "Keith's new appointment reflects his current role and responsibilities and recognizes his performance and contribution to the company's success," said Jack A. Hockema, CEO and Chairman. "For the past twenty years Keith has been instrumental in the company's growth and transformation to a position of industry leadership in its chosen end markets. He is well-regarded within the industry and has the respect of his peers and...
Demand for U.S. aluminium semi-fabricated products increases 4.7%
Shipments of aluminium extruded products (extruded shapes, pipe & tube, and rod & bar) by U.S. and Canadian producers totalled an estimated 407.9 million pounds during November 2015, a rise of 4.4 percent over the November 2014 total of 390.9 million pounds. Compared to the previous month, shipments decreased 10.1 percent from the October 2015 total of 453.7 million pounds. Year-to-date shipments through November 2015 totalled 4,788.2 million pounds, up 5.1 percent over the 2014 year-to-date total of 4,555.1 million pounds. Preliminary estimates indicate that aluminium demand in the United States and Canada (shipments by domestic producers plus imports) totalled an estimated 21,741 million pounds through October 2015, up 1.0 percent over the same period last year. Demand for...
LME data shows warehousing firm Metro will charge the most to store aluminium
Warehouse firm Metro International Trade Services, at the heart of a controversy surrounding queues to get metal released from storage is planning to charge the highest rents for aluminum stocks in warehouses approved by the London Metal Exchange. Data from the LME last week showed Metro is planning rent rises of more than 30 percent for the 12 months starting on April 1 at its warehouses in the United States, Italy, South Korea and Malaysia. Metro's charges for aluminum jump to 72 U.S. cents per tonne per day compared with 54 cents now. The average of all warehouse rents for aluminum from April will be near 50 cents. The company, now owned by investment firm Reuben Brothers, was one of the first to create long wait times for aluminum at its storage facilities in Detroit more than five...
Japan Q1 aluminium premiums set at $110/T
Japan's aluminium premiums for January-March shipments were set at $110 per tonne, up 22 percent from the previous quarter, on higher overseas rates, six sources directly involved in the talks said. The deal, which marks the first increase in four quarters and a rise from a $90 per tonne premium PREM-ALUM-JP in the previous quarter, is in line with a climb in U.S. and European surcharges for physical aluminium amid tighter availability. Japan is Asia's biggest importer of the metal and the premiums for primary metal shipments it agrees to pay each quarter over the London Metal Exchange (LME) cash price set the benchmark for the region. Three end-user sources and two buyers at trading houses said all deals were done at $110, while a source at a producer said all shipments were booked at...
January aluminium price forecast: Australian miners thrilled with turnaround
With the sudden rise in aluminium prices just last week, miners across the world are rejoicing, including in Australia where the outlook is expected to improve. According to a report from the International Business Times, an increase in US consumer spending has boosted investors’ hopes of a stronger economic projection for the year ahead. The immediate, short-term result has led to stocks of Australian mining conglomerates rising this past week with an extended rally in raw material prices, helping put an end to the recent commodity retreat. “Mining and metals shares advanced with some expectations of rising investment in underweight commodities stocks in early 2016,” Helen Lau, analyst at Argonaut Securities (Asia) Ltd. in Hong Kong, told Bloomberg. “Signs of improving fundamentals have...
China's appetite for imported bauxite unlikely to weaken in near term
China had a voracious appetite for both domestic and imported bauxite in 2015 to meet the country’s growing alumina production. However, with some of the biggest alumina producers of the country announcing massive output cuts in recent times, industry watchers conjectured that demand for domestic as well as imported bauxite would decline in the near term; but that is unlikely to happen, as alumina production in the country is still on the rise. China’s bauxite output is expected to increase 5.9% from 2014 to 86.68 million tonnes in 2015, SMM predicts. SMM sees the country’s bauxite imports surging 47% from 2014 to 53.13 million tonnes in 2015.
Noranda Bauxite's job-cut plans take union by surprise
Noranda Bauxite said yesterday that it had been in consultations with unions representing the workers as it prepares to cut jobs this month. The company said this move was in response to the major decline in the global price of aluminium and demand facing the industry. Noranda Bauxite said that following the temporary suspension of its mining activities on December 21 last year, the company resumed full operations yesterday, with the return of approximately 100 employees who had been laid off during a two-week break in mining over the holiday season. During the lay-off, the company continued to carry out its drying and shipping operations from the plant in Discovery Bay. However, Noranda Bauxite's General Manager Antoine Liddell said that preserving jobs is a major consideration now; but...
Aluminium trading range 99.3-101.5, gains at 100.35
Aluminium settled up 0.2% at 100.35 despite of concern about market surpluses. Japanese aluminium buyers have agreed to pay producers a premium of $110 per tonne for metal to be shipped in the January-March quarter. Japan is Asia's biggest importer of aluminium and the premiums for primary metal shipments it agrees to pay each quarter over the London Metal Exchange (LME) cash price set the benchmark for the region. China looked set for a soggy start to 2016 after activity in the manufacturing sector contracted for a fifth straight month in December, suggesting the government may have to step up policy support to avert a sharper slowdown. While China's services sector ended 2015 on a strong note, the economy still looked set to grow at its slowest pace in a quarter of a century despite a...
Alba meets members of Arabian Gulf University
Aluminium Bahrain B.S.C (Alba), one of the leading employers in the Kingdom of Bahrain, met with a delegation from the Arabian Gulf University (AGU), comprising professors and students on December 27, 2015. Alba’s Chief Operations Officer, Isa Al Ansari, Chief Marketing Officer, Khalid A. Latif, Director Administration Abdul Rahman Janahi and Manager Training Rawdha Al Aradhi and other officials welcomed the AGU delegation. This visit reaffirmed Alba’s commitment to support the Kingdom's educational development by sharing information about the Company’s processes and its contribution towards the development of the Kingdom of Bahrain. Commenting about this visit, Alba’s Chief Operations Officer, Isa Al-Ansari said: "Alba is happy to welcome the members from AGU and share with them the role...
29% of Chinese smelters bearish toward aluminium prices this week, SMM survey
About 29% of the 34 Chinese aluminium smelters surveyed by SMM are bearish toward this week’s aluminium prices. Those pessimists fear that LME aluminium will fall below USD 1,480/mt and that SHFE 1603 aluminium will drop below RMB 10,600/mt, citing a series of negative factors: 1. Downstream consumption will cool as the off-season sets in, which will widen spot discounts; 2. Alumina prices kept falling, weakening cost support for aluminium ; 3. Power tariff subsidies in Xinjiang, Gansu, Yunnan and Sichuan will reduce power costs for aluminium smelters; 4. The price spread between SHFE 1601 and 1602 aluminium contracts widened to near RMB 300/mt due to nearing delivery date. This will force cargo holders to sell at larger discount. Another 29% are optimistic that LME aluminium will rise...
China aluminium output growth slows for three consecutive years in 2015
The growth of China’s primary aluminium output slowed for three years in a row in 2015, SMM expects. SMM attributes the slowdown to partly due to the Chinese government’s control over investment in energy-intensive industries, including aluminium. In addition, low-cost aluminium capacity replaced high-cost capacity at a slower pace as falling aluminium prices left producers in losses and gave no incentive to put new capacity online. The country’s production of the light metal is expected to grow 10.5% from 2014 to 30.64 million tonnes in 2015, SMM estimates.
Chinese aluminium scrap prices rise on Index December 31, 2015
The Chinese aluminium scrap prices increased marginally on the Scrap Monster Price Index on Dec 31st, Thursday. 6063 Extrusions witnessed a rise of CNY 200 per MT over the previous day. Aluminium Radiators and Transformers prices increased by CNY 100 per MT each. E.C Aluminium Wire prices jumped higher by CNY 250 per MT to touch CNY 11,150 per MT. Old Cast prices too appreciated by CNY 100 per MT. The prices of Aluminium Radiators and Old Sheet saw marginal rise of CNY 100 per MT each. UBC and Zorba 90% INF prices too increased by CNY 100 per MT over the previous day.
AMAG certifies final acceptance of Danieli innovative twin-coiler rolling mill
AMAG has certified final acceptance of the innovative twin-coiler rolling mill developed by Danieli Automation. This hot rolling mill is used to process products ranging from medium-thickness plates to thin-strip coils, for alloys ranging from series 1xxx to 8xxx for aerospace, marine, transportation and commercial applications. The aluminum ingots are rolled to produce either plates or coils. The rolling stock is precisely and automatically measured in line (i.e., thickness, crown, wedge, and length) in order to comply with the stringent tolerance targets. After cutting, the plates are marked and stacked for the next process phases. Alternatively, the slabs can be rolled in multiple passes to produce coils, that are automatically removed from the mandrel, strapped, weighed and marked....
Granco Clark promotes Jason Luscombe to Customer Service Manager
Aluminum extrusions systems and equipment manufacturer, Granco Clark has recently announced the promotion of long-time team member Jason Luscombe to the position of Customer Service Manager. Mr. Luscombe has been a dedicated employee of Granco Clark for more than 16 years. He has worked previously for the company as both a Controls Engineer and a Service Engineer. His performance in these roles has resulted in an impressive history with efficient on-site installations, and unmatched support of the customers. His contributions and quick attention to customer requests have helped the North American aluminum extrusions equipment manufacturer improve their reputation as a full-service company. His strong technical abilities and his dedication to customer success are the qualities that this...
Potential Malaysia bauxite ban to chip away at China stockpiles
A potential suspension on bauxite mining in Malaysia, the world’s top exporter of the aluminium-making ingredient, could dent stockpiles in China but is unlikely to curb breakneck output in the aluminium sector there, industry and analysts said today. The Southeast Asian nation is pushing to suspend bauxite output due to concerns over its impact on the environment, threatening to interrupt supply to No1 aluminium producer China, a cabinet source said at the weekend. The councillor in charge of environment for Malaysia’s main producing state of Pahang, Mohd Soffi Abd Razak, told Reuters today that Pahang’s chief minister and the national resources minister would make a joint statement on the issue “very soon”. World prices for aluminium, used in everything from planes and trains to...
