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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Metro Mining nears major bauxite expansion as takeover advances
Metro Mining has received acceptance forms for 19.1% of Gulf Alumina as the company progresses an off-market takeover expected to benefit significantly from operational and developmental synergies through economies of scale. The majority of the acceptance forms have been received from Gulf’s largest and key founding shareholders. Metro is in the process of transferring an additional 2.5 million Gulf shares to Metro, representing 2.9% of Gulf’s shares on issue. This transfer is part of the acquisition agreement with Equity & Permanent Investment Capital which is on the same terms as the offer. The 16.3 million Gulf shares that are part of the acceptance forms, and the 2.5 million Gulf shares that are part of the acquisition agreement, total 18.8 million Gulf shares or 22.1% of Gulf’s...
Vedanta alumina refinery gets pollution board's nod for expansion
The Odisha Pollution Control Board (OPCB) has extended, for another five years, the consent to establish period for expansion of Vedanta alumina refinery project which is facing huge losses due to raw material shortages. The pollution board has extended the consent period till February 15, 2020 for 6 million tonne per annum (MTPA) refinery project at Lanjigarh in Kalahandi district, said a senior official on Monday. He said the project proponent has proposed to expand capacity from present one MTPA to 6 MTPA as well as captive power plant up to 285 MW in a phased manner. However, for the expansion up to 6 MTPA refinery plant, the proponent will obtain an amendment of environment clearance after completion of land acquisition of the balance area of 666 hectare as per conditions stipulated...
Reliance Steel & Aluminum Co. share price drops by 1.5%
Reliance Steel & Aluminum Co. has lost 1.5% during the past week and dropped 1.03% in the last 4 weeks. The shares have underperformed the S&P 500 by 0.68% during the past week but Reliance Steel & Aluminum Co. has outperformed the index in 4 weeks by 1.29%. Reliance Steel & Aluminum Co. is up 6.23% in the last 3-month period. Year-to-Date the stock performance stands at -2.9%. Shares of Reliance Steel & Aluminum Co. ended Thursday session in red amid volatile trading. The shares closed down 0.53 points or 0.91% at $57.91 with 287,850 shares getting traded. Post opening the session at $58.3, the shares hit an intraday low of $57.91 and an intraday high of $58.72 and the price vacillated in this range throughout the day. The company has a market cap of $4,149 million and the number of...
An analyst's take on what Indian aluminium sector will look like in 2016
The global commodity free fall and aluminium price slump played havoc with Indian metal companies in 2015, pushing many to the brink of operational losses and capacity shutdowns. The new year will be crucial to see which way the prices move. Metal manufacturers including those comprising the aluminium maket will also be banking on a pick-up in the domestic economy and some support from the government to fend off cheaper global imports. Upcoming Trends Debt restructuring In 2015, banks invoked strategic debt restructuring for a number of stressed metal manufacturers. Over the next 18 months, banks will look for buyers for these assets. The availability of assets at potentially reasonable valuations may give larger firms the option to buy assets and consolidate their hold on the markets....
Alcoa receiving lion's share of state development funding for St. Lawrence County
Empire State Development approved $101.1 million in economic development funding that is expected to create 634 jobs across the state, but St. Lawrence County’s share of the money will go largely to Alcoa in an effort to retain jobs. Statewide the funding supports projects that are creating 634 new jobs and retaining more than 1,500. Of the $101.1 million, St. Lawrence County will receive about one-third of the total, but no new jobs are expected as part of the plan. About $20.6 million will go to Alcoa, while the remaining $8.6 million will go toward the Newton Falls Railroad project. Alcoa Inc. will use working capital grants of up to $20.6 million to subsidize the Alcoa Massena plant to continue operations and retain hundreds of jobs. In November 2015, Alcoa announced its intention to...
Malaysia seeks to suspend bauxite mining after environmental scare
Malaysia is pushing to suspend bauxite mining due to concerns about its impact on the environment, a cabinet source said on Saturday, threatening to interrupt supply of the aluminium-making ingredient to China. The largely unregulated industry has grown rapidly in the last two years to meet Chinese demand. Bauxite mining was blamed for turning the waters red on a stretch of coastline and surrounding rivers in eastern peninsula Malaysia after two days of heavy rain earlier this week. The cabinet wants to temporarily halt bauxite mining until regulations, licensing and environmental protection can be put in place, the source told Reuters on Saturday. "The idea is to suspend it for a time until all this is sorted out, but ultimately the prerogative for licensing lies with the state," the...
Aluminium bottle can for beer suits Montanans’ outdoor lifestyles
Philipsburg Brewing Company’s Maddy Mason knows Montanans work hard and play hard in Big Sky Country. That’s a big reason the company chose to package one of its most popular beers-Tramway Rye Pale Ale-in Alumi-Tek® reclosable aluminium bottles from Ball Corp. “Montanans spend much of our time outside-hiking, fishing, floating, skiing, and ice fishing, to name a few examples, in settings that go well with a cold beverage,” says Mason, Sales and Marketing for Philipsburg. “We chose Ball’s Alumi-Tek bottle because we want to make sure that the beer ends up in your mouth and not in your boat! The smooth pour and distinctive look and shape of Alumi-Tek offers a premium drinking experience to our fans, and a look that makes our beer stand out on retail shelves in a growing craft beer market.”...
SMM sees high possibility for China to hike aluminium semis export rebate in 2016
There is a good chance for China to raise export rebate on deeply processed aluminium semis in 2016 after dosing so during the 2008-2009 global financial crisis, SMM predicts. SMM's prediction is based on the fact that such products have high value-added, and encouraging exports of such products can help alleviate overcapacity in domestic aluminium market. SMM sees low possibility for China to remove export duty on aluminium ingot and intermediate aluminium products, such as aluminium coil, in 2016. Cancellation of export duty on aluminium ingot and intermediate aluminium products runs against China’s intention of encouraging exports of deeply processed products. Besides, massive exports of such products will cause overseas aluminium prices to slump, which will send ripple effects into...
US Shredded Scrap prices edge higher; Aluminium Scrap prices remain flat
United States shredded scrap prices edged up during the week ended December 18, while major US aluminium scrap commodities weekly average prices on Scrap Register Price Index showed a steady trend. According to TSI, US Midwest weekly shredded index increased $1 a long ton the week to $170 a long ton (delivered mill). US mills have begun to pay higher than average December prices as they look to secure scrap for January commitment with prices seen as high as $190 a long ton. Participants believe that this uptick in scrap prices could last for the next two months as export demands remain low and the operating rates of mills only being around 65%. The major aluminium scrap commodities on the Scrap Register Price Index showed flat trend during the week. The weekly average scrap prices of Auto...
Aluminium price rise though surprising has little long-term significance
The London Metal Exchange (LME) aluminium price has risen from the low $1,400s per metric ton in October to the mid $1,550s last week. At the same time, the Japanese have started settling first quarter 2016 physical delivery premiums at $110 per mt, 22% higher than the previous quarter, the first time they have risen in a year. Meanwhile, probably not unconnected, Japanese port stocks have fallen at the country’s three major ports. Stockpiles fell in November by 7.5% to 401,000 mt according to Reuters. Over the in US, the Midwest transaction price, which includes the LME price and premium that buyers pay to take delivery of the metal, has risen steadily this month to $1,736 per metric ton by December 24, up from $1,599/mt on 28 October, which was its lowest point since May 2009. Perhaps...
Chinese aluminium scrap prices rise on Index 30th Dec, 2015
The Chinese aluminium scrap prices increased marginally on the Scrap Monster Price Index on December 30th, Wednesday. 6063 Extrusions witnessed a rise of CNY 50 per MT over the previous day. Aluminium Radiators and Transformers prices increased by CNY 50 per MT each. E.C Aluminium Wire prices jumped higher by CNY 100 per MT to touch CNY 10,900 per MT. Old Cast prices too appreciated by CNY 50 per MT. The prices of Aluminium Radiators and Old Sheet saw marginal rise of CNY 50 per MT each. UBC and Zorba 90% INF prices too increased by CNY 50 per MT over the previous day.
Aluminium futures slide on weak demand; global cues
Aluminium futures eased by 0.20 per cent to INR 99.95 per kg on the first session of the 2016 today as speculators reduced positions amid weak demand at spot market and weakness in base metals overseas. At the Multi Commodity Exchange, aluminium for delivery in January traded lower by 20 paise, or 0.20 per cent, to INR 99.95 per kg, in a business turnover of 124 lots. Analysts said offloading of positions by speculators due to sluggish demand at spot market and a weak trend in industrial metals, mainly weighed on aluminium prices.
Architecture firm creates library wrapped in aluminium fins for Chicago’s Chinatown
SOM, one of the largest and most influential architecture, interior design, engineering, and urban planning firms in the world, made conspicuous use of aluminium made architectural components while conceiving the new Chinatown Branch Library in Chicago. Encompassing 16,000 square feet (1,490 square metres), the new library is located in Chicago's Near South Side, on an urban site near a busy intersection and elevated metro station. "The building sits at the key intersection of South Archer Avenue and South Wentworth Avenue – the nexus of Chicago's historic southern and emerging northern Chinatown neighbourhoods," the firm said. The two-storey building with featuring a striking circular form has a double-layer glass curtain-wall that is wrapped with 118 vertical fins of varying heights....
American Aluminum Extrusion to shift its operations to Roscoe facility
American Aluminum Extrusion plans to move all of its operations and employees to its Roscoe, Ill. facility this year. The company has operated its facility in Beloit since 2001. In 2011, the company opened its Roscoe facility in the former Warner Brake and Clutch complex on McCurry Road. It currently employs 90 people in Roscoe and 70 people in Beloit. When the move is complete, the company expects to employ 150 people in Roscoe. American Aluminum Extrusion provides reliable service to some of the most demanding industries such as transportation, distribution, building, linear motion, and electronic OEM markets. A specialist manufacturer and supplier of custom-made and standard aluminium extrusion products, American Aluminum Extrusion designs specialty equipment for large volume or close...
Growing mining equipment demand to raise global market valuation by US$117 bn by 2018
According to a recent market research report, the global mining equipment market is estimated to be worth US$117 bn by 2018. The overall market was worth US$71.5 bn in 2012 and is projected to grow at a CAGR of 8.60% during the forecast horizon. Mining is an important sector and contributes massively to the world economy in terms of revenue. The sector also supplements the economy by generating employment and providing resources to other industries. Mining activities across the globe have witnessed a steady rise in the past couple of years. This, in turn, has fuelled the demand from the global mining equipment market. The demand for mining equipment is especially high across developing countries. The report points out that the primary reason for the surging growth of the global mining...
Aluminium may trade 100-103 range: SMC
Aluminium in London Metal Exchange (LME) may move in range of 100-103 in the month of December. This week's trading is expected to be volatile in what will be a shortened week as the LME's electronic trading platform will close today and will remain closed until January 4 for New Year holidays. Prices are hovering around the top of their current ranges despite current dollar strength, with the exception of a few base metals which continue to trade sideways. Aluminium fell 0.5 percent to $1,528 a tonne and shows little signs of recovery in the short term.
Kaiser Aluminum stock downgraded to "Sell"
Kaiser Aluminum Corp.was downgraded by a leading investment research firm from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday, December 29. According to the investment firm “KAISER ALUMINUM is a leading producer of fabricated aluminum products for aerospace and high strength, general engineering, automotive, and custom industrial applications. Repeatedly acknowledged as Best in Class among its global customer base,Their 11 fabrication plants typically produce and ship more than 500 million pounds of product annually. “ A hedge fund recently raised its stake in Kaiser Aluminum Corp. stock. Eagle Asset Management boosted its stake in shares of Kaiser Aluminum Corp. by 99.0% during the third quarter, according to its most recent disclosure...
NALCO inks R&D agreement with Chalieco
An agreement has been signed between NALCO, a Government of India enterprise and Chalieco of China, for R&D cooperation in the fields of mutual interest. Projects to be taken up by these two companies include separation of iron concentrate from Red Mud and Extraction of Gallium from Bayer Liquor, according to an official release issued here. “Extraction of marketable iron concentrate from Red Mud will be our first R&D project with Chalieco. This will be a major step in extracting value out of Red Mud, which is otherwise treated as an industrial waste,” said Tapan Kumar Chand, CMD of NALCO. “On successful completion of the project, efforts will be commercialized through a demonstration plant,” Chand added. The agreement was signed on Tuesday at Bhubaneswar by B.K. Satpathy, Executive...
