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 primary aluminium imports rise to 34,900 mt in October
According to China Customs, China imported 34,900 mt of primary aluminium in October, up from September’s 10,600 mt. The month-on-month growth is driven by a significant growth of imports under tolling trade. Primary aluminium imported under tolling trade came mainly from Iran, New Zealand and Australia. Imports under general trade were a mere 10,000 mt. aluminium premiums in Japan remained between USD 80-90/mt in October. Overseas institutions see no sharp drop in Japan aluminium premiums in the short term. China will maintain a 17% VAT on primary aluminium imports. These factors will act as constraint on primary aluminium imports.
Rio Tinto to go ahead with $1.9 bln bauxite expansion
Rio Tinto expects to produce 2.8 million tonnes of bauxite a year and replace the output from the depleting East Weipa mine. It slashed its budget for major projects to roughly $5.5 billion for 2015 from more than $17 billion three years ago. The project also provides further expansion options which could increase annual output to 50 million tonnes. In 2011 commodities saw a minor spike, but haven't been able shake off their downwards trend since. Chief executive, Sam Walsh, said the project would provide 1,400 permanent jobs and 1,100 in the construction phase, set to begin in 2017. Norsk Hydro ASA, Europe's third-largest aluminum producer, last month signed a letter of intent to acquire Vale SA's 40 per cent stake in Brazilian bauxite producer Mineracao Rio do Norte SA. It is expected...
China alumina imports up 113.83% YoY in October
China imported 581,500 mt of alumina in October, up 113.83% YoY, customs data showed. A sharp fall in import prices lured Chinese aluminum producers and traders to ramp up imports. FOB price of West Australian alumina fell 11% MoM to USD 243/mt at the end of October. Imported alumina is suitable for production of high-purity aluminum or low-Fe aluminum, due to relatively low content of lithium and iron. This also partly explained the growth in import volumes.
China bauxite imports to fall further in December after 34% slump in November
China’s bauxite imports fell 34% month-on-month in November, a trend to continue in December, SMM expects. SMM bases its prediction on falling shipment from top supplier Malaysia due to monsoon season there, as well as destocking by Chinese alumina producers against year-end cash tightness. China imported 4.48 million tonnes of bauxite in October, up 74.36% from a year ago, but plunged from 6.81 million tonnes in September, customs data showed. The month-on-month decline was dragged mainly by a 41.5% slump from Malaysia, a 36.1% decline from Australia and an 11.1% drop from India.
"A nation must exploit its natural resources in order to grow," Vedanta Chairman Anil Agarwal
Anil Agarwal, the founder and Chairman of Vedanta Resources Plc., in a freewheeling discussion on India's industrial development and inclusive growth process, said in his signature unabashed style, “It is vital for a nation to develop its natural resources. If a nation is to develop above the ground, it needs to develop the resources it has under the ground." A nation, he stressed, cannot develop if it imports vital resources. He points out that a single aluminium processing factory can support hundreds of small businesses. “We make ingots, but there will be factories that will make sheets, foil and even aluminium that is used in advance processes like car chassis’ now. India has large reserves of high-quality bauxite, yet our market is being inundated with cheap Chinese aluminium.” Mr....
Alba receives VIP delegation from Ma’aden
Aluminium Bahrain B.S.C (Alba), one of the world’s leading aluminium smelters, today, December 06, 2015 welcomed a VIP delegation from the Saudi Arabian Mining Company (Ma’aden) comprising its Chairman, Engr. Abdullah Al-Saif and President, Engr. Abdulaziz Al Harbi. Ma’aden’s VIP delegation met with Alba’s Chairman of Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa, Chief Executive Officer, Tim Murray, Chief Finance Officer, Ali Al Baqali, Chief Operations Officer, Isa Al-Ansari, Chief Marketing Officer, Khalid Abdul Latif and other Alba officials. The visit was to build upon existing relations between the two smelters and share information on ways to work together towards a successful future in the aluminium sector. Speaking about this visit, Alba’s Chairman Sh. Daij said:...
Altech Chemicals Ltd: Kerrigan exploration licence granted
Altech Chemicals Limited advises that exploration licence E70/4718 (Kerrigan project) has been granted. The licence covers an area of approximately 480km2, is on freehold agricultural land and contains Inferred Kaolin Mineral Resources of 85 million tonnes at 85.1% brightness (JORC 2004). The Kerrigan project is located approximately 20km south of the Western Australian wheat belt town of Hyden and 335km south east of Perth. The project is proximal to the Hyden to Lake Grace railway line (15km to the east), which connects to the port city of Albany, Western Australia; there are also established sealed roads from Hyden to Perth and the ports of Albany, Bunbury, Esperance and Fremantle. As announced by the company on 24 August 2011, CRA Exploration conducted various mineral and chemical...
Rio Tinto delivers productivity gains and cost savings in aluminium
Rio Tinto will today provide an update on the significant progress being made on costs and productivity in its Aluminium business and unveil further detail on the recently approved Amrun bauxite project which positions Rio Tinto as the industry-leading supplier of bauxite. By the end of 2015, the Aluminium product group will have delivered around $300 million of cash cost improvements, a reduction of $45 million in sustaining capex and cut working capital by around $400 million versus 2014. Cash remains a key focus, and the momentum in operating cost reductions continues through a broad range of initiatives that should remove around $300 million in additional cash costs from the product group in 2016, excluding any impact from currency or oil. Further improvements will also be made in...
Australian Bauxite's first exports delayed by Malaysian bauxite surge
Aspiring exporter Australian Bauxite Limited (ABX) has clarified the real reason its maiden shipment from its first mine in Tasmania has been delayed for so long. Delays in winning shipping permits had previously been explained as the reason first exports from Tasmania's Bell Bay port were behind schedule, but ABX told the ASX for the first time on Monday that all shipping permits had been obtained. ABX managing director Ian Levy said low bauxite prices were the real reason why the company had not begun exports. "The shipment has been delayed due to the bauxite market being disrupted by low-cost, opportunistic bauxite exports from Malaysia flooding the Chinese and other markets in the months before the Malaysian wet season commences," the company said. "The current irregular exports of...
SHFE aluminium to outperform LME aluminium this week
SHFE aluminium will outperform LME aluminium this week on positive news from China, SMM expects. Capacity cuts in Chinese aluminium market are intensifying, which will cheer market up. This will push SHFE aluminum up to 10,300-10,500 yuan per tonne, SMM predicts. A firmer US dollar amid high expectations for US rate hike will keep LME aluminium in check between $1,470-1,500 per tonne. In China’s spot market, falling stocks will help narrow spot discounts to less than 100 yuan per tonne over SHFE front-month contrat.
Chinese firm to start constrution of Bintan aluminium smelter in January
Another Chinese firm is all set to start building its smelter come January. Shandong Nanshan Aluminium, China's second-largest aluminum producer, has been reported to be mulling over construction on its $2 billion manufacturing complex in Bintan, Riau Islands, early next year. The company is set to build a smelter, dams and a 2,800-megawatt power plant to produce aluminium ingots, powder, foil and sheet, Riau interim governor Agung Mulyana said on Thursday. "It has been decided that we will establish a 2,000-hectare industrial complex in Bintan," he said, adding that the company would source bauxite from Kalimantan. The plant is estimated to create between 7,000 to 9,000 jobs for local residents and 2,000 positions to be filled by foreign workers. Earlier reports suggested that Nanshan...
Aluminium gains on jitters ahead of U.S. jobs, OPEC
Aluminium along with other base metals rose on Friday, last week, as nervous investors bought back short ositions ahead of a U.S. jobs report and an OPEC meeting result. Prices of aluminium that have been plummeting since for last few months surged to week highs. Analysts expect that data later on Friday will show U.S. job growth remained solid in November, which could pave the way for the Federal Reserve to raise interest rates this month for the first time in nearly a decade. "People seem to be pre-positioning ahead of non-farm payrolls and OPEC, in case they throw up surprises," said Robin Bhar, head of metals research at Societe Generale in London. "We've already had one surprise (with the ECB) so the market is cautious and people are covering shorts, especially since it's Friday."...
Odisha govt to put only two mines for auction
The Odisha government would put only two mines for auction in the first phase even as it had identified 12 blocks for open bidding in the state. "Two mines like Ghoraburahani-Sagasahi East Iron Ore Block and Jhunka-Patriposi block, will be put for auction in the first phase," state steel and mines minister Prafulla Kumar Mallick told the Assembly in a written reply today. The two mines are located in Sundergarh district. Mallick informed the House that the 12 mines identified for auction comprised five iron ore mines, five limestone blocks, one bauxite block and one manganese block. Ghoraburanhani Sagasahi East Iron Ore Block is of 2.435 sq km having 116.16 Million Ton Reserve of Iron Ore and Jhumka-Pathiriposi Iron Ore Block covering 3.10 sq km having reserve of 30 Million Ton of Iron...
Vishakhapatnam bauxite mining logjam: Tribal JAC seeks withdrawal of GO
After the Left Parties voiced their opposition against proposed bauxite mining in Andhra’s Vishakha Agency area, it is now the leaders of the Tribal Joint Action Committee (JAC) who are up against government’s initiative to unleash the mineral development potential of the state. They have demanded that CM Naidu’s government should back out from bauxite mining and withdraw GO 97. Speaking at a roundtable here on Friday, former SC and ST Commission Chairman Meruga Nagarjuna said the AP government was unlawfully trying to lease out forest lands on the pretext of mining violating tribal rights. AP Tribal JAC chairman Merajoth Hanumanth Naik demanded that the government cancel agreements with all multi-national companies. Jindal South West Aluminium Ltd. belonging to Jindal Group and Anrak...
Europe should continue to strive for the ideal circular economy
The European Commission's Circular Economy package is a balanced and achievable proposal but what now counts are the steps taken by the European Parliament and Council of Ministers to ensure a global mindset, effective enforcement, and strong recycling ambition, write Maarten Labberton and Magdalena Garczynska. Maarten Labberton is the Director of the Packaging Group and Magdalena Garczynska is Recycling Director at European Aluminium. The Circular Economy package is a landmark step towards a more resource-efficient Europe. It will help the EU to maintain its status as a world leader in recycling and drive sustainable growth in the European economy to the benefit of future generations. What is important is what happens next. The European Parliament and the EU member states now have the...
Ball Corporation prices Senior Notes to fund Rexam buyout
Ball Corporation BLL declared the pricing of an underwritten public offering of $1 billion of 4.375% Senior Notes, due 2020. The company has also priced $424.3 million (€400 million) of 3.50% Senior Notes, due 2020 and $742.5 million (€700 million) of 4.375% Senior Notes, due 2023. Depending on customary closing conditions, the offering is expected to close on Dec 14, 2015. On Nov 30, Ball Corporation commenced the public offering of these dollar and euro denominated notes. Goldman, Sachs & Co.; Deutsche Bank Securities; BofA Merrill Lynch; KeyBanc Capital Markets; Mizuho Securities; and Rabobank will serve as joint book-running managers of the offering. Ball Corporation will use the net proceeds from the offering, along with borrowings under its credit facilities and cash on hand, to...
Fresh thinking about aluminium at EAC 2015
European Aluminium Congress 2015 focused on building the future with aluminium. Sapa was one of the sponsors of the two-day event, which was held in Düsseldorf and organized by the aluminium associations in Austria, Germany and Switzerland. Gerold Trommelschläger, who leads Sapa's extrusion operations in the German-speaking countries in Europe, took part in one of the panel discussions at European Aluminium Congress 2015. Germany’s Minister of Economic Affairs & Energy Sigmar Gabriel opened the event EAC 2015 with glowing words about the light metal. “Aluminium is an innovative material for which there is growing demand worldwide. It is no longer possible to imagine certain branches of industry without aluminium,” he said. “It is therefore not without reason that the sector is looking...
Canadian corporation mulls aluminium foundry in Richland County
Linamar Inc., headquartered near Toronto, is considering development of a 300-job aluminium foundry and automotive components plant near Blythewood off Interstate 77. The Canadian corporation also would acquire the existing Pure Power Technologies plant in Richland County as part of the plan to establish the foundry nearby, Linamar chief operating officer Jim Jarrell said Friday. The Linamar foundry would be jointly owned with GF Automotive, a Swiss automobile industry supplier. The company also is looking at a site near Asheville, N.C., where Linamar already has a facility. The company is weighing incentive packages from both Carolinas and should make a decision by Christmas, Jarrell said. Plans are not final yet. “Both states have rolled out the red carpet to us,’’ Jarrell told The...
