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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ALUMINUM USA: Successful premiere with good prospects
ALUMINUM USA, which celebrated its premiere at the Cobo Convention Center in Detroit from November 11-12, 2015, was a success with good prospects for the future. 172 exhibitors from 20 countries showcased lightweight manufacturing solutions. Besides key US players, numerous companies from Canada, Europe and Asia attended at ALUMINUM USA – from suppliers of raw material, semi-finished and finished to producers of machinery, plant and equipment for aluminium processing and manufacturing. 920 visitors from the aluminium industry as well as the automotive, transport, building and packaging industries, came to the first edition. The exhibitors were practically unanimous in their conclusions: with ALUMINUM USA, a new trade fair was launched that has the potential for long-term success. “The...
China signals curbs on aluminium output in accord with Russia
China signaled it’s prepared to curb aluminium production to try to stem oversupply as part of an agreement with Russia. The Sino-Russian protocol on energy cooperation, signed November 16 by Russian Deputy Prime Minister Arkady Dvorkovich and Chinese Vice Premier Zhang Gaoli, includes a section on bringing aluminium output into line with demand, as per industry reports. It also supports tie-ups between Russia’s United Co. Rusal and Aluminum Corp. of China Ltd., or Chalco, on developing mining and new alloys. “China is finally ready to review its policy in aluminium and help to stabilize the market after the price declined to the level where all of its aluminium producers are working below break-even," Rusal’s Deputy Chief Executive Officer Oleg Mukhamedshin said in a phone interview from...
Indian Government mulling import duty rise for aluminium
The government is considering raising import duty on aluminium products by as much as five per cent, among other policy measures, to tackle unabated import of cheap products adversely impacting the sector. "Domestic industry is going through tough a time. Some firms have approached the Directorate General of Safeguards for a hike in safeguard duty. "If it doesn't happen, we in our pre-budget consultation with finance ministry will propose," said Balvinder Kumar, mines secretary. He said the government was aware of the situation the industry is going through and would take appropriate measures. When asked on the duty hike, he said, "We will propose to raise it to 7.5 or 10 per cent from the present five per cent." Sources said mining conglomerate Vedanta has approached the Directorate...
Vedanta may scale back expansion on soft aluminium prices
Lukewarm aluminium prices at the London Metal Exchange (LME) has prompted diversified metals major Vedanta to hold back a plan to scale up its smelter capacity at Jharsuguda in Odisha from 0.5 million tonnes per annum to 0.8 mtpa. Earlier this month, LME aluminium prices went below $1,500 a tonne on weak demand and excess supply from China. With no quick recovery in sight and concern on a further dip, Vedanta is being cautious. “In the current scenario, we don't think it would be prudent and viable to ramp up smelter capacity. Aluminium prices are at multi-year lows and are expected to plunge further. Unless prices rebound to $1,600 a tonne, we might not consider expansion at the Jharsuguda smelter,” said Abhijit Pati, chief executive officer (aluminium) at Vedanta. Vedanta erected two...
China aluminium stocks’ collapse might not be indicative of a market turnaround
China’s aluminum stocks stopped growing and fell 37,000 tonnes on a monthly basis as of November 12. However, this slump is unlikely to indicate at a turnaround in market fundamentals. Market players should be aware that aluminum stocks are actually well above 340,000 tonnes seen a year ago, said industry experts. Shanghai Metal Market analysts attribute the fall mainly to production cuts, growing consumption nearby processors and falling arrivals due to snow in northwest China. Falling supply from production cuts will be quickly filled up by growing new capacity. Year-end cash crunch will curtail consumption. As such, inventories will remain at current highs for the rest of the year, SMM predicts.
Shipston Equity Holdings acquires aluminium design and casting company
Compass Automotive Group, a premier aluminium design and casting company with a manufacturing plant in Fruitport, has been acquired by Shipston Equity Holdings LLC. The transaction was announced earlier this November upon which Compass Automotive Group was renamed Shipston Aluminum Technologies, International (SAT). The plant is located on 15 acres of property near the border of Muskegon and Ottawa counties at 14638 Apple Drive. The company is now reporting to Nick A. Busche, the president and Chief Operating Officer of Shipston's Advance Machining and Materials Technologies Group. Shipston Equity Holdings acquired Busche, an Albion, Ind.-based company in November of 2014. According to Shipston Chairman and CEO Michael D. Dingman, the majority shareholder, the acquisition of SAT has a...
Senators press U.S. administration on China aluminum extrusion duties
The U.S. senators on November 18, Wednesday, urged the Obama administration to enforce duties on Chinese aluminium extrusions, the latest call for government action as the U.S. industry escalated calls to curb subsidized imports of the metal. In a letter to Department of Commerce Secretary Penny Pritzker and Customs and Border Patrol Commissioner Gil Kerlikowske, the senators accused Chinese extruders of evading antidumping and countervailing duties. The duties were imposed in 2011 on Chinese-made extrusions, which are shaped by forcing liquid aluminium through an opening in a die, for use in products ranging from car parts to window panes. U.S. companies accuse Chinese exporters of mislabeling their products to evade duties. Ohio Senators Sherrod Brown, a Democrat, and Rob Portman, a...
SAF Perimeter Systems introduces SMACNA series gutter systems
SAF Perimeter Systems announces the addition of their Sheet Metal and Air Conditioning Contractors‘ National Association inspired drainage systems. The SMACNA Series Gutters are fabricated with heavy gage aluminum making them ideal for commercial, industrial and high end residential building projects. Quality purposed gutter system profiles featured in the SMACNA Manual are frequently specified for high value projects. “Our SMACNA Series Gutters are a direct response from customers who want quality gutters fabricated with thicker aluminum than is typically available from a roll former, and with custom color and wall thickness options,” states SAF Perimeter Systems Product Manager, Corey Faciane. SAF Perimeter Systems SMACNA Gutters are an extension of their Industrial Series Gutter...
Novelis opens new aluminium automotive heat treatment line in Europe
Novelis, the world leader in aluminum rolling and recycling, today celebrated the opening of a state-of-the-art aluminum automotive heat treatment line in Nachterstedt, Germany, to serve European and global automotive customers. Located adjacent to Novelis' existing rolling mill and the world's largest aluminum recycling center, the $85 million investment will increase production capacity by 120,000 metric tons of automotive sheet annually. At full production, this line will increase Novelis' European automotive sheet capacity to 350,000 metric tons per year and will provide global customers with high-quality automotive sheet, including the Novelis Advanz™ portfolio of alloys used in lightweight vehicle structures and body panels. Since 2011, Novelis has invested more than $550 million...
Hind Aluminium standalone Sep '15 sales at INR 180.21 crore
Hind Aluminium Industries has reported a standalone total income from operations of INR 180.21 crore and a net profit of INR 2.19 crore for the quarter ended September '15. Other income for the quarter was INR 0.80 crore. For the quarter ended September 2014 the standalone total income from operations was INR 100.84 crore and net profit was INR 1.58 crore, and other income INR 1.66 crore. Hind Aluminium shares closed at 84.00 on November 16, 2015 (BSE) and has given 81.62% returns over the last 6 months and 47.63% over the last 12 months.
Mumtalakat-Synergies Castings JV to set up aluminium plant in Bahrain
Mumtalakat and Synergies Castings have formed a Joint Venture to build a downstream aluminium facility in Bahrain, the chief executive of the kingdom's sovereign fund said on Wednesday, November 18. The $150 million worth aluminium casting and specialty alloy wheel manufacturing plant will take around 18 months to come up and is expected to open by 2017 end, updated Mahmood al-Kooheji. "There is a secure channel for the products as they have the customer demand, which will make it very easy to make profits," said Kooheji. The JV is Synergies Castings’ first foray outside India, added Kooheji. The company supplies alloy wheels to leading car companies- General Motors, Ford and Toyota, to name a few. The aluminium plant will have an annual production capacity of around 25,000 metric tonnes,...
‘Wings’ sculpture soars with aluminium from Hydro
World-famous architect Daniel Libeskind has created an extraordinary large-scale sculpture: Wings. The four-part artwork is made primarily of aluminium provided by Hydro. Libeskind’s artwork is the size of a tree and opens towards the top like the petals of a bloom. Its two pairs of wings anchor at the four corners of the Piazza Italia at the Milan Exhibition Centre in northern Italy. The piece was commissioned by the Siemens conglomerate, which has this year managed to fascinate thousands of visitors with this interactive technology experience. The sculpture’s matte, shimmering aluminium surfaces are fitted with large numbers of LEDs that together create multicolored lighting effects. Image loops on the surfaces of the piece address the four key issues facing our society: health,...
The State of Recycling Congressional Briefing to highlight impact of recycling in U.S.
The Institute of Scrap Recycling Industries (ISRI), Keep America Beautiful, and the Congressional Recycling Caucus will host a briefing on the “State of Recycling” on November 18, I p.m. onward (Eastern) at Capitol Hill, Rayburn House Office Building, Room 2322 (House Energy and Commerce Committee Hearing Room). The briefing session will highlight the current economic, environmental, and social impact of recycling in the U.S., and related policy issues. Despite difficult market conditions due to a slow growing economy, recycling is a vibrant activity and a key driver in domestic and global manufacturing, as well as a pillar of the sustainable development due to its unmistakable economic and environmental benefits. The challenges and opportunities for the industry and consumers will be...
GCC states make significant headway in aluminium production
The member countries of the Gulf Cooperation Council (GCC) are making great strides in aluminium production. Together accounting for 15 per cent of global aluminium production, they are making significant headway, while simultaneously focusing on cost rationalisation and productivity enhancement. Abdulaziz A Al Harbi, Ma’aden Aluminium’s president, said recently, GCC aluminium producers were cashing in high on factors like availability quality bauxite and moderate power tariffs to boost their smelting capacity. He noted that Ma’aden seeks to have a full production chain starting from extracting raw materials to producing final products. He said this while elaborating on Saudi Arabia’s plans to diversify the economic base and expand investments in non-oil industries, such as the...
Indian aluminium set to lose global cost advantage
Aluminium producers in India, raising prices to compensate for the expensive coal they have to buy from the open market after losing captive coal blocks in a Supreme Court order last year, may be turning uncompetitive in the global market, said analysts. The situation is expected to worsen once coal linkages allotted to these producers expire. On 24 September 2014, the Supreme Court cancelled coal blocks allotted to private companies, including Vedanta Ltd and Hindalco Industries Ltd. Since then, coal blocks are being auctioned as part of a new policy intended to ensure better price discovery for natural resources. Besides, coal linkages allotted to aluminium manufacturers expire by 2018—raising costs further as firms bid to retain their raw material linkages. “Indian aluminium...
China aluminium inventories to stay high in coming 5 months, SMM foresees
Trading inventories in China’s domestic aluminium market are expected to remain high in the coming 5 months, Shanghai Metals Market expected at the annual summit in Shanghai. “No big drop in aluminium inventories is expected in China’s domestic trading market from November to next March, and high inventories will be continuing pressuring aluminium prices ,” SMM aluminium analyst predicted at the summit held on Nov. 12-13. According to SMM data, spot aluminium stocks s in five major trading regions, including Shanghai, Wuxi, Nanhai, Hangzhou, and Gongyi reached up to 968,000 tonnes last Thursday. “The impact of production cuts at Chinese aluminium producers should not be overestimated unless large-scale closures, and it is normal to see production cuts or suspension at high-cost production...
MCX aluminium falls by 0.3% on global cues
Aluminium prices were down 0.26% to INR 96.70 per kg in futures trade today as investors cut down their bets amid weak global cues and sluggish demand in the domestic spot markets. In futures trading at the Multi Commodity Exchange, aluminium for delivery in current month eased by 25 paise, or 0.26%, to INR 96.70 per kg in a business turnover of 84 lots. Similarly, the metal for delivery in December contract was trading lower by 25 paise, or 0.25%, at INR 98.25 per kg in five lots. Marketmen said the weakness in aluminium at futures trade was mostly in tune with a weak trend at London Metal Exchange (LME) where most industrial metals slumped to multi-year lows on concerns over faltering Chinese demand and the dollar traded at its strongest in more than a decade.
CME Group expands base metals offering with new Aluminium Japan Premium futures
CME Group, the world's leading and most diverse derivatives marketplace, today announced it will expand its base metals offering with the introduction of a new Aluminum Japan Premium (Platts) futures contract to begin trading on 7 December 2015. Pending relevant regulatory review periods, the new contract will be available for trading on CME Globex and for submission for clearing through CME ClearPort, and will be listed with and subject to the rules and regulations of COMEX. "This new contract complements our offering of U.S. and European aluminum premium futures contracts, and enables market participants to hedge their exposure to the Asian aluminum premium," said Young-Jin Chang, Senior Director of Metals Products, CME Group. "Market participants in Asia have demanded a solution in...
