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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Altech Chemicals receives financing interest for high-purity alumina
Altech Chemicals has attracted interest in its high-purity alumina (HPA) project from a major German bank experienced with similar investments in the Asia-Pacific region. Altech’s HPA operation encompasses mining properties 130 kilometres from Fremantle port in Western Australia and a proposed processing plant in Malaysia with a throughout capacity of 4,000 tonnes per annum. The bank has delivered a Letter of Interest (LOI) expressing its interest to arrange senior debt financing for the project. The German Export Credit Agency was identified as applicable to Altech’s HPA project because the majority of the plant and equipment will be sourced from European Union manufacturers and because German group M+W is the appointed engineering, procurement and construction contractor. Altech, M+W...
Uncertainty hovers around alumina refinery projects in AP
Uncertainty hovering around the State government’s stand on bauxite mining for a decade or so are sending wrong signals to the efforts to showcase Andhra Pradesh as an investment destination, say investors. The State signed a Memorandum of Understanding (MoU) with Jindal South West Aluminium Limited in 2005 for establishing alumina refinery and smelter complex but so far not an inch has moved. The worst victim is Anrak Aluminium Limited, which invested INR 5,800 crore to set up a 1.5 million tonne alumina refinery in Makavarapalem mandal, about 100 km from here in 2012 expecting supply of bauxite ore by AP Mineral Development Corporation. The issuance of GO allowing APMDC to mine bauxite in GK Veedhi mandal was put on hold at the State Cabinet’s meeting held on Monday, November 16,...
Dubai Cable building $60 million aluminium plant
Dubai Cable Co., the second-largest cable manufacturer in the Middle East, is building its first aluminium plant as customers in Saudi Arabia to the US seek cheaper alternatives to copper for power transmission. The $60 million factory in Abu Dhabi in the United Arab Emirates will have capacity to produce 50,000 metric tons of aluminium rod and overhead conductors annually, Andrew Shaw, managing director of Dubai Cable, said in an interview Monday at the company’s copper rod plant in Dubai. The project, called Ducab Aluminium Co., will create 120 to 140 jobs with its opening planned for the first quarter of 2016, he said. Copper is losing about 2% a year of demand to less costly materials such as aluminium, or about 500,000 tons, London-based researcher CRU estimates. Aluminium is about...
2015 CMRA Convention: Removing the barriers associated with scrap shipment
Chinese nonferrous metals producers have been scaling back their purchases of imported scrap, and this may be partially because of trade policies in China, said some members of a panel discussion at the 2015 Annual Convention of the China Nonferrous Metals Industry Association Recycling Metals Branch (CMRA). The event took place in early November in Ningbo, China. Increased inspection regimens and fees imposed by a coalition of China’s customs and environmental agencies have been necessary to stem the shipment of substandard materials, said panelists, but several policies and procedures are unnecessarily burdensome or even off-target, according to some participants. The grades of metal awaiting shipment are valued by metals producers and if misclassified shipments arrive the buyers will...
America Recycles Day shows economic and environmental benefits of the recycling industry
The Institute of Scrap Recycling Industries (ISRI), Washington, says it celebrated America Recycles Day Sunday, November 15, by applauding all individuals who make an effort to recycle daily. America Recycles Day, a national initiative of Keep America Beautiful, Stamford, Connecticut, takes place every Nov. 15 in an effort to promote and celebrate recycling in the U.S. Each year it provides Americans with an important reminder not only of the need to recycle but also of the positive impact the recycling industry has on the environment, energy savings and the economy, ISRI says. “America Recycles Day 2015 comes at a time when many in the media are questioning the value of recycling,” says Robin Wiener, president of ISRI. “While some of the sector is indeed facing challenges, the overall...
Aluminium premiums in Europe seen stabilising after rise
Surcharges for physical aluminium in Europe levelled off after recent gains and may come under pressure from additional supply if Chinese exports rebound and some inventories are liquidated. The surcharges, or premiums, which consumers pay on top of the London Metal Exchange (LME) cash price for immediate delivery of metal, have gradually climbed over the past couple of months amid tighter availability. European premiums were quoted at $160-$170 a tonne for duty-paid material in Rotterdam, recovering from $115-$135 in September and from a peak of $500 in November 2014. "They're (premiums) just starting to come under pressure. For the rest of the year, we see them coming down slightly," a European trader said. The rise in premiums was partly driven by a fall in imports of aluminium from...
Columbia's aluminium coils and sheets manufacturer signs contract with Russian Alfa-Metal
Detal company and Russian Alfa-Metal have signed a contract for 3 years. Under the contract, Detal exports to the Russian market of 30 thousand tons of metal products. Products will mainly consist of rolls and boards colored aluminum. At the current price level, the cost of the contract will be $70 mln. But if the price at the commodity exchanges will increase, the cost of the contract increases accordingly. Detal S.A. is headquartered in Colombia. The company's line of business includes the retail sale of paint, glass, and wallpaper, along with rolls and boards colored aluminium. The monthly production capacity of Detal is 4.5 million tons of initial aluminum, of which 1000 tons processed into sheets and coils made of colored aluminum for sale. The aim is to transform all products in...
EGA ensures lasting legacy to the UAE economy through commitment to innovation
Innovation is one of the key corporate principles of Emirates Global Aluminium, the region's largest aluminium producer. Indeed, it is largely through innovation that EGA has been able to sustain and grow its business over the past four decades. Fully supporting the innovation strategies of the leadership of the UAE, the technologies developed in-house by EGA have made the company a respected competitor in the global aluminium industry and helped solidify its position as the nation's industrial flagship. EGA's core operating assets are Dubai Aluminium ("DUBAL" also known as EGA Jebel Ali) and Emirates Aluminium ("EMAL" or EGA Al Taweelah) whose combined production is 2.4 million tonnes per annum, ranking EGA among the five largest primary aluminium producers in the world. From the first...
Government agrees on temporary suspension of bauxite exports from Pahang
The federal government in Malaysia has agreed to a suggestion to temporarily suspend the export of bauxite from Pahang until proper regulations are in place to keep the industry in check. Natural Resources and Environment Minister Datuk Wan Junaidi Tuanku Jaafar said he is agreeable to the suggestion made by PKR’s Kuantan MP Fuziah Salleh, though he stressed that this would require the buy in from Pahang state government. “We will meet with the state government to discuss the matter,” he said when winding up points raised during the Budget 2016 debate. Earlier when interjecting, Fuziah stressed that Pahang’s capital city of Kuantan is suffering from heavy pollution caused by illegal mining operations that have mushroomed to meet high demand for the mineral. She claimed that mining...
Straface - new president for Sapa's extrusion operations in Americas
Charlie Straface, currently the general manager of the Industrial Region of Sapa Extrusion Americas, has been appointed as the new business area president effective immediately. Over the last several years, Sapa has strengthened its safety, operations and productivity. Straface will now take the company into the next phase of its development. Straface joined Sapa in 2008 through the Alcoa joint venture and brings valuable experience and competence from the industry. During many years within Alcoa’s rolling, tubing and extrusion businesses, he held roles of increasing responsibility, ranging from quality and technology manager, to operational and general management roles, including VP of Quality and Technology and General Manager for Distribution. In Sapa, Straface became General Manager...
Adoption of aluminum in auto industry yet to pick up
The CEO of the world's largest producer of rolled aluminium, Novelis, explained to investors that sluggish business at the company in the past earnings season was a result of a slower-than-expected adoption of aluminium by the automotive industry. For decades, high-end vehicles have been made with aluminium. But over the last year the adoption of an aluminium body in the Ford F-150, the best-selling car in America, was supposed to mark the beginning of a once-in-history shift from steel to aluminium for more mainstream vehicles. The aluminium industry is beset by falling prices, and executives have pointed to the use of aluminium by the auto industry as a reason for optimism. This year was supposed to be the beginning of a new era in body manufacturing. But the story of aluminium adoption...
Alro reports an adjusted net profit of RON 145 million in the first nine months of 2015
Alro SA,one of the largest aluminium producers in Central and Eastern Europe, registered an adjusted net profit of RON 145 million in the first nine months of 2015, compared to a adjusted net loss of RON 115 million in the similar period of 2014. The company’s turnover was of RON 1.77 billion, compared to RON 1.44 billion in 9M2014. Financial and operational highlights: • Turnover of RON 1.77 billion, as compared to RON 1.44 billion in 9M 2014 • Increased sales revenue by 23% • Increased primary aluminium production to 203,100 tonnes, from 194,300 • Processed aluminium production of 59,800 tonnes, from 59,200 tonnes “The financial results obtained by Alro in the first nine months of this year are a clear signal that the strategy that we have been applying for over 10 years is the correct...
Rusal to decide on aluminium plant suspensions in mid-December
Russian aluminium giant Rusal plans to decide in mid-December which aluminium smelters to suspend as a part of its plans to potentially cut up to 200,000 tonnes of production, Chief Executive Vladislav Soloviev told reporters on Tuesday. Rusal, the world's top aluminium producer, is looking to cut production, under pressure from sliding prices due to a market surplus. "We have not decided yet. We are now looking at KUBAL," Soloviev said. KUBAL, the sole producer of primary aluminium and the largest industrial facility in Sweden, has annual production capacity of 128,000 tonnes of aluminium. "We will take a decision along with the business plan in December," Soloviev said. He added that apart from KUBAL, Rusal was looking at the Kandalaksha smelter in North-Western Russia with annual...
"Despite several handicaps…aluminium industry will remain viable and grow in Asia." The Convener and the Vice President, IBAAS Symposium
International Bauxite, Alumina & Aluminium Society (IBAAS) in cooperation with China Aluminium International Engineering Corporation Limited (CHALIECO) & Suzhou Research Institute for Non-ferrous Metals Co. Ltd (SINR) have organized the 4th International IBAAS Symposium (near Shanghai, China) during November 25-27, 2015. The theme of this conference would be “The Development and Future of Aluminium Industry in China - Reality and Dream”. At this crucial juncture when issues like raw material scarcity, market oversupply, higher input cost and low metal prices are crippling the global aluminium industry, the conference is expected to open up an apt forum for discussions on innovative ideas, technical solutions and probable changes in market dynamics. AlCircle spoke to Dr. Ashok Nandi, the...
Vedanta rating increased to "Buy"
Vedanta was upgraded by an international investment research firm from a “sell” rating to a “buy” rating in a report released on Monday. The brokerage currently has a $6.25 price target on the stock. The firm's price objective indicates a potential upside of 12.82% from the stock’s previous close. According to the brokerage firm, “Vedanta Limited is a natural resource company. The company’s business primarily involves exploring, extracting and processing minerals and oil & gas. Its segments include zinc, oil & gas, lead, silver, copper, iron ore, aluminium and commercial power. The company operates primarily in India, South Africa, Namibia, Ireland, Australia, Liberia and Sri Lanka. Vedanta Limited, formerly known as Sesa Sterlite Limited, is based in Panaji, India. “ Shares of Vedanta...
Alba a key participant and sponsor of ARABAL 2015
Aluminium Bahrain B.S.C (Alba), a leading aluminium smelter in the world, is a key participant and gold sponsor of the 19th edition of the Arab International Aluminium Conference and Exhibition (ARABAL), the most important trade event for the aluminium industry in the Middle East. Hosted by Maíaden in Dammam, Saudi Arabia from November 15 to 17, 2015, ARABAL 2015 event focuses on the integration of the aluminium upstream and downstream sectors throughout the GCC, and combines an international exhibition and strategic conference with participation from leading aluminium smelters in the world. Alba is participating as one of the pioneering aluminium smelting companies in the Middle East, and will be showcasing its portfolio of high-grade aluminium products, and highlighting its quality...
Nalco alumina refinery bags Business Excellence Star Recognition Award
The Alumina Refinery of National Aluminium Company Limited (NALCO) has bagged the prestigious Business Excellence Star Recognition Award. Institute of Quality, CII has adjudged NALCO as the “Leader in Process Industries, for Excellence in Operations Management”. Appreciating the concerted efforts of the team of Alumina Refinery, Shri T.K. Chand, CMD of the company, conveyed hearty congratulations to NALCO Collective for the accolade. On behalf of the company, Shri V. Balasubramanyam, Director (Production) and Shri R.K. Mishra, ED (Mines & Refinery) received the award recently during the National Quality Summit in Bangalore. It may be noted here that NALCO’s energy efficient Alumina Refinery, situated at Damanjodi in Koraput district of Odisha, is one among the lowest cost producers in the...
US Shredded Scrap prices decline sharply; US Aluminum Scrap prices stay flat
United States shredded scrap prices declined sharply during the week ended November 06, while major US aluminum scrap commodities prices on Scrap Register Price Index remained flat. According to TSI, US Midwest shredded index fell by $14 a long ton the week to $167 a long ton (delivered mill). Order books for steel at US mills remain fairly dire, meaning appetite for scrap has been extremely low with several mills reportedly out of the market all together this month. Buys were reportedly concluded in a range of down $10-20 a long ton on October’s level. Pricing was stronger the further East you went, with yards supported by a buoyant export market. Several bulk cargoes have been sold to Turkey and India in recent days and weeks. The scrap prices of 356 Auto Wheels, 5052 Alum Clip, 6061...
