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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RUSAL announces results for the three and nine months ending 30 September 2015
UC RUSAL, a leading global aluminium producer, announces its results for the three and nine months ended 30 September 2015. Key highlights • In the third quarter of 2015 London Metal Exchange (“LME”) aluminium price continued its sharp decline and reached an average of USD1,589 per tonne, recorded low since the second half of 2009, demonstrating a 20.0% decrease compared to USD1,987 per tonne in the third quarter of the prior year. This negative trend was compounded by significant decrease in the realized premiums over the LME aluminium price down to an average of USD206 per tonne in the three months ended 30 September 2015, 51.2% lower than USD422 per tonne in the third quarter of 2014. • However, the Company managed to withstand the negative industry environment and record an Adjusted...
UK automotive parts aluminium die-casting market to reach $273.98 million by 2020
Britain's auto industry witnessed an increase of 6.6% from 2013 and recorded revenue of 69.5 billion GBP in 2014. This clearly demonstrated the health of the carsin UK and commercial vehicle manufacturers, along with the supply chains of business. Growing popularity for fuel-efficient vehicles, coupled with a need to reduce the vehicle weight greatly influenced the employment of aluminium die casting parts in the UK automotive industry. UK market for automotive parts aluminiumdie-casting will reach $273.98 million by 2020 from $210.94 million in 2015 at a slower CAGR of 5.37%. Companies such as Kemlows, Norfran Ltd., Daften, and MRT Castings are slowly expanding their product range and trying to gain their market share in the region. The market is segmented based on the production process...
North American aluminium scrap prices edged higher 10th Nov, 2015
The North American aluminium scrap prices ended marginally higher on ScrapMonster Price Index as on Tuesday, November 10th, 2015. 1100 Scrap prices moved higher by $0.01 per Lb. The prices of 3003 Scrap too increased $0.01 per Lb. An up move of $0.02 per Lb was witnessed in 356 aluminium wheels. Meantime, 5052 Scrap and 6061 extrusions price saw marginal increase of $0.02 per Lb and $0.01 per Lb respectively over the day. 6063 extrusions and 6063 extrusions/Fe prices too were up by $0.02 per Lb each. The prices of Al/Cu radiators and Al/Cu radiators/Fe held steady over the previous day. The prices of aluminium radiators increased by $0.01 per Lb. Meantime, aluminium radiators /Fe prices appreciated by $0.01 per Lb. Breakage 50% Recovery prices were up by $0.01 per Lb. aluminium...
Orbite receives U.S. fly ash monetization patent
Orbite Technologies Inc. announced that further to its October 6, 2015 press release, the United States Patent and Trademark Office has granted the Company U.S. patent No. 9,181,603 titled "Processes for Treating Fly Ash". The patent covers the selective extraction and recovery of valuable elements such as scandium, gallium, rare earths and rare metals, alumina, magnesium oxide and titanium dioxide from fly ash, a residue from coal combustion, using Orbite's chloride-based technology. This patent clears the way for Orbite to pursue the commercial application of its unique technology in the U.S., where upwards of 75 million tonnes of fly ash is being produced on an annual basis, representing a significant environmental and economic liability. By being able to extract all individual...
Rising Chinese production reigns in global aluminium prices
China is showing no signs of slowing down on exports. Surging shipment volumes of aluminium off the Chinese ports are becoming contentious while prices of the metal used in automobiles to beverage cans continue to hover just above their six-year low. Despite a dip last month, China’s aluminium exports are up 14.4% so far this year, according to official data, as companies there take advantage of their ability to produce at a lower cost than international rivals to seize market share. While major aluminium companies like U.S.–based Alcoa Inc. have cut production this year, Chinese output has risen by 18% year-to-date, according to the International aluminium Institute, a supply flood that has helped keep prices depressed. The major factors playing crucial for the smelters to stay...
Power tariff cuts and falling coal prices to keep Chinese aluminium smelters productive
Aluminium prices in China, presently the biggest exporter of the metal across global markets, are nowhere near bottom even when they are now just one step to 10,000 yuan per tonne. Despite spurious production cuts here and there, the country’s aluminium output has been hitting new highs. China produced 21.07 million tonnes of aluminium during January-August, a 12.2% jump from a year ago, data from the China Non-Ferrous Metals Industry Association (CNIA) showed. It is learned from industry sources that power tariffs for aluminium smelters in Gansu, Ningxia and Qinghai will be pared down from 0.35-0.37 yuan/Kwh to 0.25 yuan/Kwh, equating to 1,300 yuan cost savings per tonne of aluminium produced. Power tariffs at most Chinese aluminium smelters averaged over 0.35 yuan/Kwh in October....
Testing practices addressed at Sapa Profiles Inc. in Portland, Oregon
As a result of internal investigations, Sapa Profiles Inc. in Portland, Oregon (SPI) has learned that the test records for certain aluminium extrusions manufactured at the SPI facilities were altered by certain employees. Specifically, we have learned that some test results for mechanical properties – ultimate tensile strength, yield strength, and elongation – have been altered to change failing test results to passing test results between 1996 and 2015. This unsanctioned practice is completely unacceptable. The misconduct was immediately stopped and the employees involved were terminated. In addition, SPI alerted U.S. government officials and is working closely with them as they conduct their own investigations. The U.S. Department of Justice (DOJ) Civil Division is currently...
Ess Dee Aluminium Ltd approves appointment of additional director
The Board of Directors of Ess Dee Aluminium Ltd at its meeting held on November 10, 2015, has approved the appointment of Mr. Kanwal Kishore as an Additional Director and Whole Time Director on the Board of the company with effect from November 10, 2015 subject to the approval of the members of the company. Shares of Ess Dee Aluminium was last trading in BSE at INR 320.2 as compared to the previous close of INR 322.6. The total number of shares traded during the day was 22977 in over 680 trades. The stock hit an intraday high of INR 328.4 and intraday low of 318.8. The net turnover during the day was INR 7456863.
Continued recovery of European demand keeps aluminium foil production on track
The steady recovery of demand for aluminium foil products in Europe has continued to see the gap between 2014 and 2015 production narrow to just a 0.3% drop by the end of Q3, compared with 2.5% in the first quarter of the year. This continues the trend seen in Q2. Deliveries for the first 9 months of the year reached 652,900tonnes, (2014: 654,900t) according to the latest figures released by EAFA, the European Aluminium Foil Association. Continuing to lead this recovery are thicker foils, used typically for semi-rigid containers and technical applications, with shipments 4.5% higher than the same stage last year. Demand for thinner gauges, used mainly for flexible packaging and household foils, fell by 2.7%, less than the previous quarter, reflecting the instability still existing across...
Noranda Q3 2015 results reflect a challenging aluminium price environment
Noranda aluminium Holding Corporation reported results for third quarter 2015. Sales were $309.5 million in third quarter 2015, $332.7 million in second quarter 2015 and $361.4 million in third quarter 2014. Sequentially, sales decreased $23.2 million, or 7.0%, primarily due to the lower average Midwest transaction price and lower external shipments at Primary partially offset by higher external shipments at Alumina. Other financial highlights: • Cash and cash equivalents totaled $8.9 million and total available liquidity was $112.7 million as of September 30, 2015 • Excluding special items, loss per share was $3.87 loss versus a $0.32 loss per share in third quarter 2014; reported loss per share was $17.49 versus a $0.40 loss per share in the third quarter 2014 • Average realized Midwest...
Alba reports 3Q 2015 results; value-added sales remains a priority
Aluminium Bahrain B.S.C. (Alba) announced the release of its third quarter of 2015 results on Wednesday, November 11, 2015. Alba’s total sales for the third quarter of 2015 were BD 184.4 million (US$ 490 million) versus BD 223.2 million (US$ 593 million) for the same period in 2014, a drop of 17% YoY due to lower LME prices. For the nine months of 2015, total sales totalled BD 590.3 million (US$ 1.57 billion), a decrease of around 2% YoY versus BD 599.6 million (US$ 1.60 billion) for the same period of 2014. Net Income for the third quarter of 2015 dropped by 70% YoY to BD 8.7 million (US$ 23 million) versus BD 29.5 million (US$ 78 million) for the same period in 2014 due to lower LME prices. The company posted a Net Income of BD 75.7 million (US$ 201 million) for the nine months of 2015...
Participants to visit Hydro’s plant in Madrid post 23rd International Recycled Aluminium Conference
Aluminium recycling will be in focus at the 23rd International Recycled Aluminium Conference in Madrid, November 16-18, 2015. As part of the conference, participants will visit Hydro’s recycling plant in Azuqueca. Roland Scharf-Bergmann, head of Recycling in Hydro, the lead sponsor of the event, will be the keynote speaker at the conference. He will be addressing the qualities and benefits of secondary aluminium. Iñigo Aranguren, managing director of Hydro Aluminium Iberia, is also a conference speaker. The International Recycled Aluminium Conference this year will attract representatives from more than 100 companies from 35 countries. Remelting aluminium uses just 5 percent of the energy needed to make primary aluminium. Hydro is one of the largest remelters of aluminium in the world....
Logan Aluminum’s Russellville facility to brighten up Kentucky aluminium scenario
Logan Aluminum announced that its upcoming Russellville facility will join Kentucky’s growing ranks of automotive suppliers. The development will help secure the commonwealth’s position among the world’s top aluminium production centers. “Strong, lightweight materials are quickly becoming standard in vehicle production, and Logan Aluminum’s expanded operations contribute to Kentucky’s position as a global leader in the aluminium industry,” Gov. Steve Beshear said during a recent facilities expansion announcement. Kentucky’s aluminium industry is gaining strength with every passing day. Nationally, it ranks first in aluminium production capacity, said Mandy Lambert, business development commissioner at the Cabinet for Economic Development. It leads the country in aluminium jobs and...
USW lends support to Century Aluminum's campaign against China subsidies
The United Steelworkers union, which represents workers at several U.S. aluminum smelters that will reduce or shutter production in the coming months, lent its support on Monday to a Century Aluminum campaign against cheap Chinese exports. USW, largest industrial union in North America with 1.2 million active and retired workers, joins China Trade Task Force (CTTF), a recently-launched pressure group supported by Century Aluminum, controlled by Glencore Plc. "We join the CTTF in calling on the administration to present the Chinese government with a simple choice: either remove your illegal subsidies on aluminum or face swift retaliation," USW International President Leo Gerard said in a statement Until USW announcement, Century had been sole member of task force formed to voice protests...
Essential investment for Welsh Aluminium Firm to meet demand
Aluminium fabricators Dudley’s Aluminium has invested £125,000 in cutting-edge machinery, and taken on two apprentices, as it continues to complete a number of important projects throughout the UK. The company has purchased its first ever CNC machining centre as well as an automatic notching machine, after nearly 20 years of using traditional semi-automatic machinery. CNC machining is a process used in the manufacturing sector that involves the use of computers to control machine tools. The nine metre long CNC machining centre will lead to increased output, greater precision in the manufacturing process, and more efficient deployment of staff. Bob Rice, operations director at Dudley’s said: "It has been an excellent operating period for us and after doing the cost benefit calculations it...
Plans for establishing more aluminium frame production in Europe
Next to the new Triangles factory for making aluminium e-bike frames in Portugal there is a second frame facility in the making close the Europe’s main markets. The plans for that facility are now being developed. Speculations are underway that there is another aluminium frame factory to be set-up in Europe. It is assumed that there is a Dutch company behind it. Industrial conglomerate Currently the initiative for establishing a 2nd alloy frame producing facility in Europe is in the early stages. As it seems plans are in an orientation phase. The company behind it is an industrial conglomerate capable of a multi-million euro investment. New bike assembly facility in Portugal The new bike assembly facility being set-up in Portugal will presumably have an annual production capacity in...
Continued recovery of European demand keeps aluminium foil production on track
The steady recovery of demand for aluminium foil products in Europe has continued to see the gap between 2014 and 2015 production narrow to just a 0.3% drop by the end of Q3, compared with 2.5% in the first quarter of the year. This continues the trend seen in Q2. Deliveries for the first 9 months of the year reached 652,900tonnes, (2014: 654,900t) according to the latest figures released by EAFA, the European Aluminium Foil Association. Continuing to lead this recovery are thicker foils, used typically for semi-rigid containers and technical applications, with shipments 4.5% higher than the same stage last year. Demand for thinner gauges, used mainly for flexible packaging and household foils, fell by 2.7%, less than the previous quarter, reflecting the instability still existing across...
2Q profit outperforms expectations on higher aluminum production
The standalone performance of Hindalco Industries, controlled by Indian billionaire Kumar of the metal, for the September quarter was impacted by a fall in the price of aluminium, a business which accounted for over 40% of revenues and nearly half of profits last fiscal. Profit rose to INR 1.03 billion ($15.5 million) for the quarter to September 30, from INR 788 million a year earlier, the Mumbai-based company said in a statement Tuesday. Analysts had expected a loss of INR 1 billion. Revenue increased 4% to INR 89.25 billion, despite a sharp drop in prices and realizations, as the company ramped up production at its new factories. Producers such as Hindalco and billionaire Anil Agarwal's Vedanta are grappling with an influx of cheap imports from China and the Middle East amid falling...
