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 Hongqiao Group cuts aluminium output as prices tumble
Aluminium producer China Hongqiao Group said on Thursday, it will cut annual capacity by 250,000 tonnes immediately, the latest smelter to pledge to curb supplies as the loss making industry combats record low local prices. The output cut, representing 6 percent of the company's total capacity, mirrors similar moves over the past month by the other base metal industries and followed a meeting of 14 major Chinese aluminium smelters in the southwestern city of Kunming in Yunnan province. "We will not consider resuming production of the (250,000 tonnes) capacity," a China Hongqiao official told Reuters. Aluminium futures in Shanghai closed slightly higher on the news, although the reaction was largely muted as the latest cut in the world's top producing country was considered too small to...
Latest innovations in bauxite residue valorisation discussed at BR2015
The Bauxite Residue Valorisation and Best Practices conference was reviewed as an informative and worthwhile event! It succeeded in bringing together academia and industry from around the world in an open dialogue, under one roof to discuss the latest innovations as well as develop possible strategies and new collaborations for a more sustainable way of using our resources. The event had a diverse and dynamic panel of speakers, who provided in-depth insight, as well as, methods and mechanisms that have worked on different types of bauxite residue of different countries. Renowned industry professionals graced the event in numbers and made the sessions both productive and pleasant with their enthusiasm and positive spirit. With KU Leuven as organiser, EU MSCA-ETN REDMUD as co-organiser and...
Doors opening for women at Hydro’s German aluminium plant
German industry is generally dominated by men. At Hydro’s aluminium rolling mill in Grevenbroich, Germany, Hydro has initiated several apprenticeship programs to increase the share of women in the industry. Hydro represents a great diversity in education, experience, gender, age and cultural background. Diversity is a substantial resource – not least in fostering innovation. In 2015, 13.5 percent of apprentices at Grevenbroich were female. From February 1 next year, the number will increase to 15.5 percent. One of female employees, Lena Krause, finished her apprenticeship (vocational training) 2-5 years ago and describes her experience as a woman at the plant with only positive words. “Of course, it is quite strange at the beginning to work in a male-dominated surrounding, but I can...
Mumtalakat's aluminium plans not price-driven, opine experts
Recent developments within Bahrain's aluminium sector, spurred by investment from sovereign wealth fund Mumtalakat, are not in response to global commodity prices, observed industry experts keeping a tab on GCC aluminium developments. Mumtalakat confirmed in November that it has entered a 49% joint venture (JV) with Indian aluminium firm, Synergies Castings, which will establish a facility in the Kingdom. Reports during the month also stated that the wealth fund is keen to enter a similar arrangement with Spanish materials manufacturer, Aleastur. Mahmood Al Kooheji, chief executive officer of Mumtalakat, told Construction Week that while no details about the latter JV can be revealed just yet, he is optimistic about working with Synergies. "With regards to Aleastur, we can confirm that we...
U.S. Commerce Dept raises import duties on some Chinese aluminium extrusions
The U.S. Commerce Department is ratcheting up pressure on some imports of aluminium extrusions, with a significant hike in the discounted duty rate for several Chinese companies. A document posted on the Commerce Department's website late on Tuesday showed the government has agreed to increase discounted countervailing duties on aluminium extrusion imports from 38 Chinese companies to 61.35 percent from 9.67 percent for several of them. The countervailing duty rate for Chinese extruders not qualifying for the discounted amount is 158.96 percent. The increase comes after Commerce raised anti-dumping duties on several Chinese extruders last week, in a victory for their U.S. competitors. Extrusion is the process of shaping aluminium, by forcing it to flow through an opening in a die used to...
PPB launches aluminium composites range for digital printers and fabricators
PPB has launched its first range of premium aluminium composite materials (ACM) targeted at digital printers, signmakers and fabricators. PPB said the product, proBond Aluminium Composite, offers a high-quality sheet for short-term digital print projects or high-end corporate ID signage. According to the company, proBond Premium, which is manufactured from 5005 alloy, is suitable for all signage and fabrication applications and is available in a range of colours and metallics. It is sold with a 10-year warranty. ProBond Digital White grade is said to offer strong ink adhesion from an "optimised digital paint surface" to give the good results for UV flatbed applications, including hoardings. It is made to ISO 9001 standards and has a five-year warranty. ProBond Lite has a 0.2mm aluminium...
Aluminium settled up 0.25% at 99.50, support 95.60
Aluminium was notable on account of a flurry of production announcements, not all of them bullish. Alcoa, for example, said that it would take out 500,000 tons at three of its four US smelters, although its Massena smelter was saved after NY State intervened with an aid package. However, South Carolina rejected a proposal from Century for a power deal for its Mount Holly facility, so that 224,000 unit will be closing by year-end. But cuts are not happening where they should, namely, in China. Instead, the country’s SRB is being lobbied by producers to buy up to 1 million tons of metal. The move would be ill-advised in many respects. For one thing, China does not need more aluminium stored in a national stockpile. Secondly, buying metal only postpones shutting down excess capacity, thereby...
Aluminium inches up 0.40% on spot demand
Aluminium prices edged up 0.40 per cent to INR 100.75 per kg in futures trade today as participants enlarged positions,supported by strong demand in the spot markets. However, a weak trend in the base metals pack at the London Metal Exchange (LME) capped the gains. Aluminium for delivery in January inched up 40 paise, or 0.40 per cent, to INR 100.75 per kg in a business turnover of 3 lots in futures trade at Multi Commodity Exchange. Likewise, the metal for delivery in December traded higher 30 paise, or 0.30 per cent, to INR 99.65 per kg in 88 lots. Marketmen said increased domestic demand, helped aluminium futures trade higher but metals weakness at the LME after Chinese trade data reinforced concerns over the economic deterioration of the world's biggest consumer of commodities,...
Aluminium glut piling up at hidden Asian warehouses
Falling official inventories of aluminium are offering a deceptive picture of stronger fundamentals, while unreported stocks are surging to record highs, threatening to weigh on already hard-hit prices. The build-up of inventories is off the radar of many investors since most are in unregistered warehouses in Malaysia and Korea and do not figure in official exchange stocks. Stocks of the metal used in transport and packaging have been steadily falling for the past 20 months in depots certified by the world's biggest and oldest market for industrial metals, the London Metal Exchange (LME). LME inventories have tumbled 46 percent since February 2014 to below three million tonnes, but much of that metal has merely been moved due to tough, new LME warehousing rules, analysts and industry...
China aluminium stockpiling on the table, SMM learns
Aluminium prices in China got an immediate boost on Wednesday as news on aluminium ingot stockpiling has been confirmed. SMM has learned that aluminium ingot stockpiling is in the cards, although who and how much to stockpile remains in the air. Major Chinese aluminium smelters have gathered together to discuss matters concerning aluminium ingot stockpiling, and the meeting result will be announced soon. In fact, aluminium supply in China is already beginning to tighten as recent production cuts have pushed down aluminum stocks in east and south China, major consumption hubs. This, together with stockpiling, will continue offering upward momentum to aluminium prices in the near future, SMM expects. SHFE 1512 aluminium contract closed at 10,390 yuan per tonne as of November 9.
China’s aluminium plants to meet to discuss output cuts
China's leading aluminium smelters have been reported to be meeting today to discuss possible output cuts amid plunging metal prices. This is supposed to be a definitive step taken by the embattled base metals industry to mull a coordinated action plan against rising metal glut. The meeting will be held in the southwestern city of Kunming. As many as 14 smelters, including Aluminium Corp of China, known as Chalco, will meet and analyse the situation strategically. The companies will discuss cutting production among other measures, although there is no guarantee that any action will be taken, the report said.
Nalco appoints five independent directors
The state-owned aluminium maker national aluminium Company (Nalco) on Friday, last week, named five independent directors on its board. "Part-time non-official (independent) directors have been appointed on the board of the company with effect from November 21, 2015, vide order dated November 17, 2015," Nalco said in a filing to Bombay Stock Exchange. The appointees are Damodar Acharya, Dipankar Mahanta, P K Nayak, Maheswar Sahu and S Sankararaman, the filing said. Last month, Coal India had also appointed five independent directors out of seven posts that had been lying vacant for over a year. As per the diversification plan, Nalco has ventured into renewable energy space, its website showed.
Altech Chemicals inches towards German credit support for HPA
Altech Chemicals has taken a step closer to clinching the support of an export credit insurance scheme which could cover most of the total capital cost of the company’s high-purity alumina (HPA) project. Altech has received a letter of interest from the administrator of Germany’s export credit agency (ECA) confirming that the group would, in principle, support the project, which encompasses kaolin mining in Western Australia and a proposed HPA processing plant in Malaysia. ECA debt is expected to cover about US$40 million of the project’s total capital expenditure of about US$77 million. After including an expected additional senior debt requirement of about US$15 million, total project debt financing would be around US$55 million. Interest rates charged by lenders on debt that is...
First Bauxite Corporation gets mining licence extended
First Bauxite Corporation announced today that the Government of Guyana (GoG) has granted a two-year extension to the construction commencement date under the Bonasika Mining Licence from January 31, 2016 to January 31, 2018. In addition, the GoG may grant a further one year extension to January 31, 2019 if it is satisfied after a review of the performance and financial standing of the Company that such an extension has merit. The Company will now discuss with the GoG specific modifications that are required to the Mineral Agreement, BML and Environmental Permit to reflect the new Bonasika Ceramic Proppant Project scope. First Bauxite is also pleased to provide a general business update and detail on the expected use of proceeds from the US$15 million private placement of secured...
Bauxite Resources receives SASAC approval for sale of Yankuang interest in JV
Bauxite Resources Limited has been advised that State-Owned Assets Supervision and Administration Commission of the Peoples Republic of China ("SASAC") approval, which was one of the conditions of the agreements with Yankuang Resources Pty Ltd (Yankuang) and Yankuang Group Company Ltd ('YGL')') for the sale of Bauxite's interest in the Bauxite Alumina Joint Venture, and the Buy-back of Yankuang's shares, has now been satisfied. The transaction is now only conditional on BRL Shareholder approval. The Notice of Extraordinary General Meeting to seek shareholders’ approval of the transaction was dispatched to shareholders today with the meeting to be held on Monday 18th January 2016. Key terms of the transaction: • The joint ventures with Yankuang will be terminated • Yankuang will pay BRL...
Wise Alloys LLC exploring alternatives to refinance its existing ABL
Constellium N.V. today announced that its indirect wholly-owned subsidiary Wise Alloys LLC is exploring alternatives to refinance its existing Asset Based Lending facility, including engaging in discussions with both current and potential new lenders. Wise currently intends to seek to refinance its existing ABL with a facility that will have a maturity of five years and will be secured by the same collateral as the existing ABL, but which will not be guaranteed by Constellium. This is one of the actions in connection with the ongoing exploration of alternatives for Wise, which Constellium announced on November 5, 2015. There can be no assurance as to when or whether Wise will refinance its existing ABL facility, and the terms of any such refinancing are not agreed at this time. Neither...
NAPCO hired as official aluminium extruder for Oman project
National Aluminium Products Company (NAPCO) has entered into an agreement with Profils Systemes Gulf for a partnership project in Oman. Under the terms of the agreement, NAPCO will be the official aluminium extruder for windows and doors for the premium beachfront development. The mixed-use Saraya Bandar Jissah property, nestled amid the picturesque natural Bandar Jissah beach, features luxury villas, hotels, a spa, a heritage village built around an archaeological site, a recreational centre with restaurants, retail outlets, social club and sports amenities. Robert Holtkamp, CEO, NAPCO, said: "In a landmark deal, Profils Systemes has sub-contracted us to be the aluminium extruder for the Saraya Bandar Jissah development in Oman. "The deal is a valuable addition to our portfolio of elite...
Alba gears up for Line 6 expansion project
Aluminium Bahrain B.S.C. (Alba), one of the world’s leading aluminium smelters, continues to look forward as the company prepares for future growth according to a statement issued by the Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa. The statement was made following the fourth quarterly meeting for the year 2015, which was held on Wednesday, December 09, 2015 at Alba. The Board approved minutes of the previous meeting, which was held on September 30, 2015 as well as discussed matters arising from the same. At this meeting, the Board reviewed and approved the 2016 Annual Operating Plan which is forecasting a very difficult year as a result of the collapse of the All-In-Aluminium prices. The Board also reviewed the2015 Corporate Governance Report and Q3...
