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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First Bauxite Corporation appoints new Chief Financial Officer
First Bauxite Corporation is pleased to announce the appointment of Mr. William White as the Company's Chief Financial Officer to replace Mr. Daniel Crandall effective January 1, 2016. Bill brings over 25 years of experience in accounting and finance. Bill previously served as the CFO of U.S. Silica Company, including during its initial public offering in 2012, and is a Certified Public Accountant (inactive). Bill's role with the Company will include contributing to the implementation of the Company's strategic plan and optimisation of the Company's resource base to produce and sell manufactured bauxite products, including ceramic proppants. A key function will be arranging financing to allow for FBX's entry into the ceramic proppant business. The Board of Directors of FBX thanks Mr....
Andhra Govt scraps GO 222; Mining Dept awaits rules for bauxite extraction
N. Chandrababu Naidu, Chief Minister, Andhra Pradesh announced Tuesday that the GO 222, issued during the Congress rule for supply of bauxite ore to Anrak Aluminium would remain scrapped. During 2007, when the late Y.S Rajasekhara Reddy was in power, an agreement was signed between Anrak Aluminium (a joint venture of Ras-al-Khaimah Government and Pennar group) and the State Government for supply of 224 million tonnes of bauxite ore proposed to be extracted from the eastern ghats of Visakhapatnam district by the AP Mineral Development Corporation (APMDC). However, due to various reasons including the controversy over the bauxite mining issue, mining could not be taken up but the Anrak group constructed an aluminium refinery at Makavaripalem in Visakhapatnam district. Chief Minister in his...
Aluminium hits 3-week peak on China demand speculation
Aluminium touched the highest in over three weeks on Wednesday on greater optimism about demand in top metals consumer China and as investors tidied up portfolios towards the year end. Some European investors may have also been following the lead of counterparts in Asia after some big Chinese commodity funds positioned themselves for a short-term uptick in metals prices despite a poor longer-term outlook. Much of the focus has been on China's Central Economic Work Conference, which decided to maintain a proactive fiscal policy in 2016, said Xiao Fu, head of commodity market strategy at Bank of China International in London. "Some of the fiscal expenditures on social development like shanty towns and also infrastructure investment in railways and highways will likely increase next year....
Novelis sustainability report highlights progress in recycling and water conservation
Novelis, the world leader in aluminium rolling and recycling, published its 2015 sustainability report today, detailing significant progress toward increasing the use of recycled aluminium and using natural resources more efficiently. At the end of Fiscal Year 2015, Novelis achieved an average of 49 percent recycled aluminium inputs, up 19 percentage points from baseline years of 2007-2009, and a reduction in water use intensity by 22 percent. Over the past five years, Novelis has doubled its recycling capacity, helping to reduce its greenhouse gas (GHG) emissions by 13 percent from baseline. Recycling aluminium produces 95 percent fewer GHG emissions and requires 95 percent less energy than primary aluminium production, enabling Novelis to achieve lower GHG emissions despite increasing...
Kaiser Aluminum allocates $150M for equipment upgrades
Kaiser Aluminum Corp announced that it will spend US $150 million on capital improvements at its Spokane, Washington facility over next five years. The investment, according to Kaiser Aluminum, will help to reduce cost, increase opreational efficiency and expand production capacity. Kaiser Aluminum manufactures aluminium coil, sheets and plates for the aerospace, automotive and general engineering industries at its Trentwood rolling mill. President and Chief Executive Jack Hockema said he expects continued growth and an increasingly competitive environment in markets served by Trentwood. “This capital project represents a very attractive organic investment opportunity to advance Trentwood’s position as a world class facility for quality and cost efficiency,” Hockema said in a news...
New aluminium extrusion technologies on show at Dubai forum
New technologies in aluminium extrusion were presented at the recently concluded Innovative Technologies for Aluminium (ITA) seminar in Dubai, UAE. Organised by Interall, a leading meeting and event planner, the special invitation event was attended by about 75 selected delegates, representing 38 companies from 13 Gulf states. Companies that developed the new technologies included Italtecno, specialized in aluminium surface treatments, Tecam, expert in systems and equipments for waste water treatment and Turla, specialist in the aluminium extrusion field manufacturing wrapping machines and complete packing lines for extruded aluminium. The seminar was opened by Turla, which highlighted ADAM - Advanced Data Acquisition & Management, the modern software where data are collected, analyzed,...
iMT Taiwan 2015 sets the stage for an even bigger 2nd edition
International Metal Technology Taiwan Exhibition and Conference (iMT Taiwan) was a resounding success. Held at the Kaohsiung Exhibition Centre, from 2-4 December 2015, the event saw industry professionals from 11 countries across the globe congregating at the venue in impressive numbers. 172 globally renowned companies exhibited their product ranges and cutting-edge technology innovations at the exhibition, which was primarily meant to highlight Taiwan’s growing potential as a metal business and manufacturing hub. However, these are all recorded facts; what made iMT Taiwan make a mark in its very first edition is the influence it had on the business decision making thought-process of the exhibitors and visitors alike. As per a post-event survey report, about 43% of the participants were...
Aluminium futures weaken on global cues
Aluminium prices were down 0.50 per cent to INR 99.95 per kg in futures trade today as participants trimmed exposure amid weak global cues and sluggish demand in the domestic spot markets. At the Multi Commodity Exchange, aluminium for delivery in current month eased by 50 paise, or 0.50 per cent, to INR 99.95 per kg in a business turnover of 848 lots. Similarly, the metal for delivery in January 2016 contract was trading lower by 50 paise, or 0.49 per cent, at INR 100.60 per kg in 50 lots. Marketmen said the weakness in aluminium at futures trade was mostly in tune with a weak trend at London Metal Exchange (LME), led to the decline in aluminium futures prices.
Production cuts accelerate destocking in China aluminium market
Aluminium stocks in China’s five major trading markets have been falling for four weeks in a row as smelters cut production as counter measures to aluminium prices that have hit multi-year lows. Smelters that used to ship aluminium ingots to major consumption hubs have ramped up shipment to regions with massive output cuts, SMM has learned. This resulted in lower arrivals into major trading markets. Besides, more aluminium liquid has been turned into intermediate products, such as bar and rod, also reducing ingot available for sale. The table below shows details of aluminum stocks at China’s five major markets:
Portland Aluminium injects US$36,000 into the local community through ACTION grants
ACTION (Alcoans Coming Together in Their Neighbourhoods) is a program developed by the Alcoa Foundation to recognise the collective efforts of Alcoa employees in communities where they live and work. ACTION recognises the team efforts of Alcoa employees who spend a minimum of 20 hours on community service project for a local nonprofit organisation. In recognition, nonprofit organisation receive either a US$1500 or US$3000 grant. Portland Aluminium Plant Manager, Peter Chellis said that ACTION grants were an important part of Portland Aluminium’s commitment to building stronger communities. “Encouraging and supporting our employees to volunteer is a key part of our commitment and it is great to see so many of them getting involved and recognising the needs within the community and putting...
SCRS releases presentations from 2015 OEM Collision Repair Technology Summit at SEMA
The Society of Collision Repair Specialists (SCRS) has announced that the feature presentations delivered during the second annual OEM Collision Repair Technology Summit at last November’s SEMA Show are now available. The event, hosted by SCRS and held on Thursday, November 5th, put show attendees in a room with innovators in automotive structural design and technology who focused on emerging trends in vehicle construction and technology. The day-long agenda featured two presentations by Doug Richman, vice president of engineering and technology for Kaiser Aluminum, and Dr. Blake Zuidema, director, Automotive Product Applications for ArcelorMittal, that highlighted the evolution and future of aluminum and steel substrates in advanced vehicle design. The 2015 OEM Collision Repair...
Sapa President and CEO sees positive trend in offshore, maritime use of aluminium
More customers from the offshore and maritime sectors are ordering extruded aluminium solutions from Sapa. President & CEO Egil Hogna saw some of this growth first-hand at the company’s plant in Norway. Hogna’s visit to the Magnor plant concluded his 100-day program, which took him to three continents and 20 different company locations. The plant in Magnor is Sapa’s only production site in Norway, located about two hours from the corporate head office in Oslo. Sapa employs around 110 people in Magnor. Henrik Futtrup, who manages the plant, guided Hogna through the facility while discussing the current and expected trends, both externally and internally. Sapa in Magnor mainly serves customers in the building and construction market, however, it has also experienced an increase in customer...
Anti-dumping probe in aluminium foil imports from China
India has started an anti-dumping probe into imports of aluminium foil, widely used by food and pharmaceutical firms, from China to protect domestic producers from cheap imports. Hindalco Industries, Raviraj Foils and Jindal India have approached the Directorate General of Anti-Dumping and Allied Duties (DGAD) for initiation of anti-dumping investigation and imposition of anti-dumping duty on imports of aluminium foil from China. In a notice, the DGAD said "prima facie" sufficient evidence exists to justify initiation of an anti-dumping investigation. "The authority (DGAD), hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry ... to determine the existence, degree and effect of alleged dumping and to recommend the amount of...
North America’s can stock (class) scrap receipts fell in November
According to the monthly report from Aluminum Association, can stock (class) scrap receipts fell y-o-y in the month of November in US and Canada. New can stock (class) scrap receipts totaled 53.1 million pounds during November 2015, off 7.3 percent from the November 2014 total of 57.2 million pounds. Compared to the previous month, class scrap receipts decreased 8.1 percent from the October 2015 total of 57.7 million pounds. Year-to-date class scrap receipts through November 2015 totaled 627.1 million pounds, down 2.7 percent from the 2014 year-to-date total of 644.2 million pounds.
Decision to allow bauxite mining after public debate: CM, Andhra Pradesh
Asserting that his government would not go against the interests of tribals, Andhra Pradesh Chief Minister N Chandrababu Naidu today said a decision on allowing bauxite mining in Visakhapatnam region would be taken after a thorough public debate. Speaking on the issue in Legislative Assembly, he said the government is committed to the welfare of tribals and cited the example of coffee cultivation being promoted in about 50,000 acres in the region. The government's intention is to promote industrialisation and creation of wealth where ever mining of mineral resource is involved, he said. Mineral wealth helped states like Jharkhand and Chhattisgarh, and Andhra Pradesh can take advantage of oil and gas reserves available in the state (KG basin), he said. The government would not, however, go...
China alumina output to continue falling in December
China’s alumina output will continue falling in December as tumbling prices and massive aluminum production cuts will force more producers to scale back production, SMM expects. Alumina prices are now near or even below cash costs at Chinese alumina producers, dampening production activity, SMM learns. China’s alumina output fell to 4.72 million tonnes in November from 4.91 million tonnes in October, SMM statistics showed.
India aluminium industry pitches for reducing taxes on raw materials
Indian aluminium industry, that has been facing tough times on account of cheap imports and softening of prices, is now pushing for reducing the duty on raw materials in a bid to cut production costs. The industry says India has an inverted duty structure with 5 per cent import duty on alumina as well as CT pitch and 7.5 per cent on aluminium pitch and caustic soda -- all raw material -- which together lead to high production costs at a time prices are driving further south. However, aluminium metal has a 5 per cent import duty. "If the duties on raw materials are reduced by even 2.5 per cent the government's exchequer will earn USD 166 million or close to Rs 1,100 crore annually as domestic firms will be able to sell more products," a senior official from industry body Aluminium...
Some Japanese aluminium buyers agree to pay Q1 premium of $110/T
Some Japanese aluminium buyers have agreed to pay producers a premium of $110 per tonne for metal to be shipped in the January-March quarter, five sources directly involved in the quarterly pricing talks said. The deal, which marks a 22 percent rise from a $90 per tonne premium PREM-ALUM-JP in the previous quarter, is the first increase in four quarters, in line with a rise in overseas surcharges for physical aluminium. 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.
