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...
Grow with
AL Circle
Boyne Smelters begins aluminium can recycling
In time for National Recycling Week (9-15 November), Boyne Smelters Limited (BSL) is now operating Queensland's only and Australia's largest aluminium can recycling facility after a successful pilot proved the potential of the value-add processing concept earlier this year. The smelter is now recycling around 13 million aluminium cans a month, which will add 2,400 tonnes of aluminium to its production annually. In 2011, BSL invested in a partnership with Inalco for an onsite processing plant to recycle dross, cell bottoms, and scrap aluminium. Prior to 2011, all dross was sent offsite for processing. But it wasn't until Australia's largest remaining aluminium recycling plant closed last year, resulting in the majority of aluminium cans being sent offshore for processing, that BSL staff...
Rusal to launch Boguchansk aluminium smelter in Q1 2016
Russian aluminium giant Rusal plans to launch its Boguchansk aluminium smelter in Russia's Krasnoyarsk region in the first quarter of 2016, Chief Executive Officer Vladislav Soloviev told media on Friday, last week. The smelter was previously expected to start production by the end of 2015. But due to extreme price volatility and a hostile market condition the plan got delayed. Now, to meet the existing demand, Rusal has decided to go ahead with the plan and start production in its Boguchansk aluminium smelter in the first quarter of 2016.
Rexam celebrates inauguration of innovative Widnau plant in Switzerland
Rexam, a leading global can maker, proudly announces the completed construction and inauguration of its new wall-to-wall manufacturing plant in Widnau, Switzerland. The hi-tech plant will produce a range of Slim and Sleek™ cans to meet global growth in energy drinks and marks the culmination of collaborative working and innovative thinking, with environmental consideration as its core. The plant, which represents an investment of £115 million over 3 years, will have a capacity to produce 2.2 billion cans per year and starts up with one line operational with a further 2 lines to come on stream. Taking only 30 months from ground-breaking to completion the can making plant is situated alongside the Rauch Trading can filling plant. Transferring cans directly between the plant and adjoining...
Varron group inaugurates aluminium alloy manufacturing plant in Nagpur
Shrikaant Sawaiika promoted Varron group recently inaugurated the first phase of its aluminium and other base metal alloy plant in Nagpur, India. Nitin Gadkari, Minister of Road Transport, Highways & Shipping, did the honours in the presence of group Chairman and Managing Director, Shrikaant Sawaiikar. Being commissioned under the umbrella of Varron Auto Kast, the 110-acre plant will cater to the automotive, engineering and construction industries. The integrated facility includes an aluminium alloy manufacturing factory, aluminium pressure die-casting, aluminium extrusions, copper and forging plant. The Varron group which started as a small forging company in Sangli way back in the late 1980s, has grown over the years into a trusted aluminium ingot supplier for the Automobile, Power,...
One aluminium producer seeks Q1 premium of $120/T from Japan buyers
An aluminium producer has offered Japanese buyers a premium of $120 per tonne for January-March primary metal shipments, up 33 percent from the previous quarter, said sources close to industry bodies asscoiated with pricing of metals. Japan is Asia's biggest importer of the metal 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. For the October-December quarter, Japanese buyers mostly agreed to pay a premium of $90 per tonne PREM-ALUM-JP, down 10 percent from the prior quarter. The latest quarterly pricing negotiations began this week between Japanese buyers and miners including Rio Tinto Ltd, Alcoa Inc and South32 Ltd, and are expected to continue next month.
LME aluminium to extend upward momentum this week
LME aluminium will extend upward momentum into next week, SMM expects. SHFE aluminium will rise further to 10,400-10,800 yuan per tonne on more short-covering triggered by output out news. And this will push LME aluminium up to 1,500-1,550 per tonne. A firm US dollar amid high expectations for US rate hike this year will pressure LME aluminium at highs, though. A firm US dollar amid high expectations for US rate hike this year and concerns over China economic slowdown all bode ill for LME aluminium. In China’s spot market, despite rising SHFE aluminium, the fact that forward-month SHFE aluminium contract underperform near-month contracts and growing wait-and-see sentiment among processors will check spot discounts in check around 100 yuan per tonne over SHFE front-month contract.
Beijing mulls bailout for aluminium industry
China's state stockpiler is considering buying more than 1.0 million tonnes of aluminium from local smelters, sources said, an initial sign that Beijing could agree to the first major bailout in its embattled metals industry since 2009. News that the central government might scoop up a sizeable portion of domestic inventory in a bid to shore up struggling smelters stunned some traders, who said the strategy to increase state reserves would offer only short-term support to prices as the demand would be artificial. Shifting metal into storage would do little to get rid of the structural overcapacity that has pushed international prices to decade lows and helped create global oversupply, the traders said. Estimates on the world glut range between 8 million and 12 million tonnes. The...
EGA co-hosts ICSOBA 2015 in Dubai
The International Committee for Study of Bauxite, Alumina and Aluminium ("ICSOBA") and Emirates Global Aluminium (" EGA ") will collaboratively host the 33rd ICSOBA Conference and Exhibition in Dubai from 29 November to 1 December. Formed in 1963, ICSOBA's main objective is to promote the exchange of ideas and findings from the various fields of research and practice related to bauxite exploration and mining as well as alumina and aluminium production. ICSOBA 2015 marks the first time that the event is taking place in the UAE; and the conference will feature a number of international industry speakers who will cover topics including bauxite and bauxite resources; alumina production and residue solutions; primary aluminium production; carbon and carbon materials and; aluminium products and...
Cairns businesses stand to benefit from $2.6bn bauxite project at Weipa
Cairns businesses have been urged to ensure they are competitive to seize the opportunities offered by a $2.6 billion bauxite mine expansion on Cape York. Rio Tinto on Friday, November 27, gave board approval of the long-awaited Amrun bauxite project, formerly known as South of Embley, at Weipa. The single biggest investment in Far North Queensland, the mine’s expansion will create 1100 jobs and inject $400 million and more than $800 million into the local and Far North economies during the three-year construction phase alone. Rio has confirmed Cairns will serve as a major hub for the mine despite its distance from Weipa. It will be used as a base for flights to and from the site, as well as providing other goods and services. Advance Cairns chief executive Mark Matthews sees the project...
Metro Mining in trading halt over pending acquisition
Australian Securities Exchange (ASX) has granted a trading halt to Metro Mining, pending details in connection with a potential material acquisition by the company. Metro Mining recently delivered an extensive Definitive Feasibility Study for its wholly-owned Bauxite Hills project located in Cape York, Queensland. The trading halt on ASX will remain effective until the opening of trade on Wednesday 2nd December 2015. It can also be lifted earlier provided Metro makes an announcement to the market before the stipulated date and time.
Noranda ekes out profit despite higher bauxite levy
Noranda Bauxite Limited was able to eke out US$500,000 (J$60 million) of operating profit during the three months to September. The mining company generated US$33.5 million in sales during the quarter, or US$2.7 million higher revenue than year-earlier levels. This was primarily as a result of an 18 per cent increase in external sales prices and a five per cent rise in external shipment volume. Also, savings from the expansion of its port in Discovery Bay, St Ann, helped reduced cost, albeit not by as much as the reduction it saw in fuel expenses. "Bauxite results reflect US$3.5 million lower fuel costs, a US$1-million currency benefit and lower demurrage fees," said the latest financial statements filed by Noranda to the US Securities and Exchange Commission. This was offset by an...
Ball offers EU to sell 11 plants for Rexam deal approval
U.S. drinks can maker Ball Corp is ready to sell 11 European plants to get EU antitrust regulators to approve its 4.43 billion pound ($6.69 billion) acquisition of Britain's Rexam Plc, people familiar with the matter said. The world's two largest beverage can makers by volume want to merge to better manage capital spending and cut costs. The European Commission, however, fears the deal would push up prices for companies and consumers. The combined company would have 60 percent of the beverage can market in North America, 69 percent in Europe and 74 percent in Brazil, according to Morningstar analysts. Ball is prepared to divest four factories in Germany, three in the UK, one each in Spain, France, the Netherlands and Austria, the sources said on Wednesday. Nine of the plants make cans and...
Demand outpaces supply of high-end aluminum rolling material products
With the recovery of global economy, aluminium alloy plate capacity gap in some countries continues to enlarge, gradually forming a very large scale of import demand. From the current market, China’s demand for high-end aluminum rolling material products has a very big market gap. The consumption of global high-end aluminum rolling material products accounts for 35% of the total, but only 12% of the proportion of high-end products. China is far lower than the global average. At present, the country rely mainly on imports for more than 600000 tons of high-end aluminum rolling material products, each year. Meanwhile, China’s companies are able to grasp these high-end production technology, as long as the enterprises keep the leading level in facilities, have technical support in advanced...
Addison’s 5-axis Mecal helps Neville Precision with aluminium extrusion sawing
Neville Precision Engineering has bought a 5-axis Mecal MC304 Ariel-5 MDT machining centre from Addison Saws, the first 5-axis machining centre of its type to be sold in the UK by Addison. The Mecal unit allows the cutting tool to approach the component from all possible angles to complete cutting and machining operations on the top, bottom, sides and ends. This has brought immense flexibility to a new manufacturing process at Neville Precision Engineering. The new contract is for manufacturing 10,000 train carriage light fittings per year. Finished components measure 2 m long by 200 mm wide, and are produced from 4.5-metre-long extrusion bars. For the contract, “I initially considered purchasing an additional Mecal 4-axis machine,” comments Neville Precision Engineering’s managing...
MCX aluminium futures rise 1.97% on global cues
Aluminium prices on Mumbai's Multi Commodity Exchange (MCX) gained 1.97 per cent to INR 98.30 per kg in futures trade as speculators enlarged positions amid positive cues from global markets. Besides, increased demand at domestic spot markets influenced prices. At MCX, aluminium for delivery in November rose by INR 1.90, or 1.97 per cent, to INR 98.30 per kg in a business turnover of 353 lots. Also, the metal for delivery in December traded higher by INR 1.80, or 1.84 per cent, to INR 99.60 per kg in 125 lots. Market analysts said the rise in aluminium prices at futures trade was due to a firming trend in base metals at the London Metal Exchange amid rising demand at spot markets here.
Bahrani-Russian work team discusses aluminium industry cooperation
A special work team comprising Bahrani and Russian industry experts, who are in charge of exploring areas of cooperation between the Kingdom of Bahrain and Russia in the Aluminium industry, held its first meeting on Thursday, November 26. The meeting waschaired by the Undersecretary for Industry Affairs at the Ministry of Industry, Commerce and Tourism Osama Mohammed Alarrayedh. The diplomats and experts reviewed several aspects of joint cooperation in the field of aluminium industry, including ways to exchange information regarding the current situation in both countries and how to boost it as well as ways to face challenges and potentials of establishing joint ventures for producing bauxite and alumina. Ministers of industry and commerce in both countries held several meetings, which...
Rusal leads Russian business entities' conslidated efforts to mitigate environmental impacts
UC Rusal, Sberbank, RusNano, RusHydro and Ingosstrakh have introduced an initiative to consolidate the efforts of Russian business to mitigate environmental impacts and help prevent climate change by creating the ‘Climate partnership of Russia’. The initiative signals another step forward to introducing new climate agreements at the upcoming UN Paris Climate Change Conference (“COP21”). COP21 presents an unprecedented opportunity to chart a new and sustainable direction in the continuing development of the global economy. The agreements that will be reached at COP21, succeeding the Kyoto Protocol, will have to set a new global strategy to minimize the anthropogenic impact on the environment for the carbon footprint. Scientific studies have left little space for doubt that global warming...
Gulf Industry Fair to uphold aluminium sector’s potential for wealth creation
The Gulf Industry Fair 2016, taking place from 9 to 11 February at the Bahrain International Exhibition and Convention Centre will showcase the importance of the aluminium sector and ‘value added’ products in wealth creation of the economy. Led by Aluminium Bahrain (Alba), one of the world’s leading aluminium smelters, and supported by the Gulf Aluminium Council (GAC), the Aluminium Zone at Gulf Industry Fair 2016 promises to reflect the trends of the global aluminum industry, which continues to drive opportunity for downstream suppliers such as Bahraini companies Balexco, Midal Cables, Ameeri Industries and Turk Mechanical. Alba’s Line 6 Expansion Project, will add approximately 514,000 tonnes to Alba’s current annual capacity of 931,000 tonnes (year-end 2014) – which will make Alba the...
