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 A356 aluminium alloy output rises in November on car market recovery
The 15 large Chinese A356 aluminium alloy producers reported higher operating rates and output in November, stimulated by recovering automobile market, SMM survey showed. The average operating rate at those surveyed was 61.67% and total output was 111,000 tonnes in November, both up from October. Data from the CAAM showed that China’s automobile output and sales both hit record highs in November. Automobile output was 2.54 million units in November, up 16.24% month-on-month and 17.74% year-on-year; sales were 2.51 million units, up 12.93% month-on-month and 19.99% year-on-year. Automobile output and sales were 21.82 million units and 21.79 million units, respectively, in the first eleven months of 2015, up 1.80% and 3.34%, and with the growth up 1.78 percentage points and 1.83 percentage...
Guinea's president names mining executive as new prime minister
Guinea President Alpha Conde named mining executive Mamady Youla as prime minister on Saturday as part of a strategy to revive the West African nation's ailing economy, the government announced. Guinea is a major producer of bauxite, an aluminium ore, but growth has been hamstrung by a slump in metals prices and a two-year Ebola epidemic that killed more than 2,500 people and has driven away some investors. Conde was re-elected to a second five-year term in a landslide victory in October, pledging to get Guineans back to work. "The nomination of Mamady Youla, a senior Guinean executive in the private sector and administration, confirms President Alpha Conde's new push to support job creation and training ... and reinforce Guinean businesses," a government statement said. From 2004 until...
Uncertainty looms over Anrak Aluminium's INR 7,000 cr alumina refinery
A big question mark hangs over the future of Anrak Aluminium's Rachapalli alumina refinery located in Makavarapalem Mandal, about 90-km from Vishkhakhapatnam. With the Andhra Pradesh Government announcing the cancellation of the bauxite supply agreement that it had with Anrak Aluminium Limited, the alumina refinery built at a cost of nearly INR 7,000 crore now awaits possible closure. It is learnt from industry sources, however, that the company is mulling signing fresh agreement for bauxite supply with the State Government and clearing issues with local tribal people and opposition parties in order to avoid any such consequences. Anrak Aluminium Limited was promised the raw material by the Andhra Pradesh Mineral Development Corporation from Jerrela and Sapparla blocks in the Agency. It...
Aluminium prices to shine among base metals this week
Aluminium prices, both on the SHFE and LME, will continue gathering strength this week, as market will continue digesting positive news from China. Aluminium stocks in China’s major trading markets have been falling for six weeks in a row and destocking accelerated with expanding production cuts. This will drive SHFE 1603 aluminium up further to 11,000 yuan per tonne and allow spot aluminium in domestic market to trade at premiums over SHFE 1601 aluminium. A softer US dollar and strong SHFE aluminium will push LME aluminium up to $1,530-1,560 per tonne.
Aluminium price recovery unlikely in 2016
Excess aluminium capacity continued to put downward pressure on prices in 2015. Prices are not expected to recover in 2016 as continued additions to capacity, particularly in China, contribute to a build-up of stocks, according to a report by Australian Dept of Industry Innovation and Science. Aluminium spot prices are estimated to have decreased by more than 10 per cent to average US$1663 a tonne in 2015 as excess capacity and subdued global demand contributed to a build-up in stocks. Global aluminium stocks are estimated to have increased by 12 per cent in 2015 to 6.5 weeks of consumption, as per the report. The profitability of many smelters has been reduced at current prices, which may force the closure of some capacity in high-cost regions. However, this is expected to be more than...
Aluminium is the preferred material for outdoor fencing
Aluminium is the preferred material for outdoor fencing due to its strength, durability and non-corrosive properties. Aluminium fencing for one's garden or pool can be easily installed; it is lightweight and looks good too. It can be molded to any design of one's choice and can be combined with other fencing materials like glass to create a beautiful fencing for one's garden and pool. Above all, it works out cheaper than any other fencing material. There are several other benefits to using aluminium as fencing material. Since it does not corrode even after being exposed to the elements, one's garden and pool fence will look as good as new even after years of installation. It is particularly suited for properties that are in close proximity to the sea or other water bodies. There is little...
Malaysian bauxite rush brings wealth, and worries
Malaysian farmer Surin Beris’s palm plantation has been razed and bulldozers are tearing into its red soil, releasing potentially hazardous dust into the environment - yet he couldn’t be happier. Surin, 67, is reaping a windfall from a modern-day gold rush in Malaysia’s sleepy rural state of Pahang for the high-grade bauxite that lies in its ruddy soil. Demand for bauxite, which is used in aluminium production, is soaring - fuelled by heavy demand from China. The boom is a “gift from Allah”, said Surin, a Muslim in a bright white skullcap who previously made about 2,000 ringgit ($470) per month cultivating the plum-sized fruit that is squeezed to make palm oil. “I made a million ringgit in less than six months. I thank the Almighty for being so generous,” he said. Bauxite mining took off...
Rising aluminum prices bring cheer to Australian Miners, outlook predicted to improve
Stocks of Australian mining giants climbed Thursday as an extended rally in raw material prices helped put the brakes on an ongoing commodity rout. An increase in U.S. consumer spending and signs of a revival in the Chinese economy in November have raised investors’ hopes of a better economic outlook in 2016. Shares in the Rio Tinto Group -- a British-Australian mining conglomerate -- rose 4.4 percent Thursday to post its biggest two-day advance in more than three years, as aluminum prices hit a three-month high. The company's stock has gained 8.8 percent since Wednesday. BHP Billiton, the world’s largest miner, rose 5.3 percent during morning trade in Sydney. “Mining and metals shares advanced with some expectations of rising investment in underweight commodities stocks in early 2016,”...
Aluminium up by 0.6% on international cues
Taking positive cues from global market and strong demand at domestic spot markets, edged higher by 0.60% to Rs 100.30 per kg in futures trade today as participants increased their bets. Marketmen said apart from increased domestic demand, a firming global trend as the US economy expanded faster than estimated, boosting demand in the second-largest metals user, helped aluminium futures to trade higher. At the Multi Commodity Exchange, aluminium for delivery this month inched up by 60 paise, or 0.60%, to Rs 100.30 per kg in a business turnover of 239 lots. Likewise, the metal for delivery in far-month January 2016 contract traded higher by 50 paise, or 0.50%, to Rs 101 per kg in 15 lots.
Continuus-Properzi of Milano announces collaboration agreement with C.P.T. sarl of Bizerte
Continuus-Properzi of Milano has announced a new Collaboration Agreement with C.P.T. sarl (Construction & Projects Tunisie) of Bizerte (Costruction & Projets Tunisie) which replaces a previous engineering exchange letter of intent related to CCR Aluminium rod lines. Carmelo Maria Brocato Vice President and Commercial Director, commented: “There was a certain amount of confusion among potential Buyers in recent years mainly because under the same nomenclature very different Aluminium rod lines can be quoted with a price ratio that can reach even 1 to 4! The new Agreement with C.P.T. makes everything clear and places the Buyer in a position to compare apples to apples; it is important they get what they pay for and exactly what they need. This is the mission of the Properzi Group.” After...
Marubeni sees Japan's aluminium premiums rising towards $150/T in 2016
The premiums that Japanese buyers pay for aluminium are expected to rise next year towards $150 a tonne, compared with $90 in the current quarter, due to tighter supply after cutbacks and closures by producers, Japanese trading house Marubeni said. Japan is Asia's top aluminium importer and the premiums for primary metal shipments PREM-ALUM-JP it agrees to pay each quarter over the London Metal Exchange (LME) cash price set the benchmark for the region. "Japanese premiums are likely to gradually climb next year and the following year as there have been and will be more inventory adjustments worldwide," Norinobu Ozawa, general manager at Marubeni's light metals section, told reporters on Thursday. More metal is seen flowing into the U.S. market as a series of output reductions will tighten...
China’s aluminum demand to surge 34% in 2016-20 on growth in transport sector: CNIA
China’s aluminum consumption is expected to surge 34% in the 13th Five-Year Plan period (2016-20), on anticipated demand growth by the transport industry, a source with China Nonferrous Metals Industry Association said Wednesday. CNIA forecast China’s aluminum demand to reach a maximum 44 million mt/year by 2020, up from an estimated 32.8 million mt/year in 2016, with the zenith value of 44 million mt/year to sustain for a long period of time after 2020. Besides demand from the traditional aluminum-consuming industry - the construction sector - the CNIA source told Platts that the transport sector, including new energy vehicles (Nevs, or vehicles partially or wholly powered by electricity), lighter weight vehicles, airplane manufacturing, aluminum alloy flyovers - is also expected to be a...
Metro Mining mulls acquiring Gulf Alumina
Metro Mining, in a news release earlier this month, had revealed its intention to make an offer to acquire all of the shares in unlisted company Gulf Alumina Limited. On December 2015, a bidder’s statement was lodged with the Australian Securities and Investments Commission and ASX in respect of the offer. Lately, Metro confirms it has sent the bidder’s statement to all Gulf bid class security holders. Metro is making an off-market takeover offer of 3.3 shares in Metro for every one Gulf share. Upon successful completion of the offer, Gulf shareholders will own circa 44% of the combined Metro and Gulf groups. Metro management considers the merging of Metro and Gulf would present better prospects for developing their adjacent projects at Skardon River than on a stand-alone basis. According...
Ball completes acquisition of Brazilian Joint Venture
Ball Corporation announced that it has completed acquisition of the remaining 39.9 percent minority interest in Latapack-Ball Embalagens Ltda., which supplies beverage cans and ends to the local Brazilian market. Latapack-Ball was founded in 1995 and was one of the most successful joint ventures in Ball's history. Approximately 5.7 million Ball common shares were issued to the main joint venture partner, Participações Industriais do Nordeste S.A. (PIN), for its controlling ownership in Latapack S.A., equivalent to a 38.1 percent economic interest in Latapack-Ball, and $17.4 million of cash was paid to the smaller joint venture partner, in exchange for their respective interests in the former joint venture. Ball is pleased to welcome PIN as a large and important shareholder. "As a global...
MCX aluminium up by 0.6% on global cues
Taking positive cues from global market and strong demand at domestic spot markets, aluminium prices edged higher by 0.60% to INR 100.30 per kg in futures trade today as participants increased their bets. Marketmen said apart from increased domestic demand, a firming global trend as the US economy expanded faster than estimated, boosting demand in the second-largest metals user, helped aluminium futures to trade higher. At the Multi Commodity Exchange, aluminium for delivery this month inched up by 60 paise, or 0.60%, to INR 100.30 per kg in a business turnover of 239 lots. Likewise, the metal for delivery in far-month January 2016 contract traded higher by 50 paise, or 0.50%, to INR 101 per kg in 15 lots.
Chinese aluminum smelters to benefit from power tariff cuts
China’s State Council announced Wednesday to cut coal-fired on-grid power tariffs from January 1, 2016. This move comes as a welcome rain to domestic aluminum smelters, since power cost takes up almost 40% of their total costs. The power tariff cut is about 0.03 yuan (¢0.4632)/Kwh nationwide on average. Assuming 13,600 electricity is needed per tonnes of aluminum produced, the cut will equate to about 400 yuan cost savings for smelters.
Mining shares surge as aluminium rise on faster U.S. growth
Mining stocks rose the most in more than 10 weeks in London as aluminium advanced after a report showed the U.S. economy expanded faster than estimated, boosting demand in the second-largest metals user. The U.S.’s gross domestic product expanded at a revised 2 percent annualized rate, a government report showed on Tuesday, beating the median forecast in a Bloomberg survey calling for a 1.9 percent increase. China, the biggest metals consumer, will add monetary stimulus next year, making good on a pledge to support growth as leaders push through policies to cut overcapacity and reliance on credit, according to economists surveyed by Bloomberg. “There’s been a lot of short-term borrowing around on aluminium and lead,” Robert Montefusco, a broker at Sucden Financial Ltd., said by e-mail....
Over 85% of councils in the UK are collecting aluminium foil for recycling
Over the past three years, the number of councils collecting aerosols has increased from 87 per cent to 96 per cent, providing almost complete coverage throughout the UK. Meanwhile, foil recycling has also seen a dramatic increase in collection, from just 35 per cent of councils in 2007 to 86 per cent today. "Alupro provides local authorities with free materials to explain how to recycle empty aerosols, household foil and foil containers. We have also worked with councils and their service providers to dispel some of the myths about these materials being ‘difficult’ to recycle,” says Rick Hindley, Executive Director of Alupro. “We’re delighted to see how well councils have responded to this clear messaging, which has enabled more aluminium packaging to be recycled than ever before.” 500...
