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 makes breakthrough in bauxite flotation technology
China's Zhengzhou Mineral Utilization Research Institute has been awarded national intellectual property for its invention of inhibitor that effectively separates diaspore from silicon-containing substances. Diaspore is one of the three component minerals of the economically important aluminum ore bauxite, and bauxite flotation is the process by which the aluminium ore fines are concentrated following the separation of impurities mainly in the form of silica granules. The invention also allows alumina recovery rate from bauxite to increase to 74.96% from 53.98%. The invention will provide important technical support for China’s vast reserves of diaspore.
Recycling plants struggle to remain efficient and feasible
Americans generate about 254 million tons of trash and recycle and compost about 87 million tons of this material, which adds up to a 34.3 percent national recycling rate. Recycling and composting prevented the release of approximately 186 million metric tons of carbon dioxide in 2013, according to the U.S. Environmental Protection Agency, comparable to taking over 39 million cars off the road for a year. Aluminum cans are currently recycled more than any other beverage container in the U.S, which is good for business and the environment, says the Aluminum Association, because making a can from recycled aluminum saves not only aluminum but 92 percent of the energy required to make a new can. A 2015 analysis by the Aluminum Association and the Can Manufacturers Institute determined that if...
Napco expands into extrusion coating, rotogravure printing and aluminium lidding
Napco, which works with Nestle, Mars and Kwality ice cream, has expanded its corrugated, paper and plastic packaging manufacturing capabilities to include extrusion coating, rotogravure printing and aluminium lidding. The Saudi Arabia based-firm has also introduced in-mold labelling and thermoforming to its services. Exhibiting at Gulfood Manufacturing 2015 in Dubai, with its sister company ROTOPAK the two companies target the food, dairy, beverage, catering, and ice cream sectors in the Arabian Gulf, Africa, Europe and South Asia. Sarkis Dagher, vice president, Market Development, told DairyReporter, the company is looking to expand in KSA, Egypt, UAE, Lebanon and the US. "The global sustainability megatrend is changing our world and is having a measurable impact on companies’ top and...
Vedanta group's Balco inaugurates new coal mine
Bharat Aluminium Company Limited (Balco), a subsidiary of Vedanta Limited, inaugurated its Chotia coal mine on November 3, 2015. The mine was allocated to Balco in February this year after the company emerged as the highest bidder for it in the first phase of coal auction. Balco has projected three lakh tonnes of coal will be mined during FY 2016 from the Chotia coal mine, which incidentally is the only coal mine of Vedanta group. Balco had bid a price of Rs 3,025 per tonne during the auctions, which is considerably lower than the import price of Rs 4,500 for a similar grade, the company said in a statement on Saturday. Ramesh Nair, CEO & whole-time director, Balco who inaugurated the mine said on the ocassion: "'Chotia is integral to Balco's strategy. It will add to our coal security by...
November aluminium price forecast by SMM: Alcoa, LME round-up and impact
Aluminium prices inched higher last week boosted by Alcoa‘s production declines. Physical premiums too improved slightly driven by the recent short-term price movements. However, there is even more to look at for those investing in firms like Alcoa, Rio Tinto Group and Norsk Hydro – notably, the London Metal Exchange‘s aluminium inventories, says Shanghai Metals Market. In short, LME’s aluminium inventory has been steadily dropping after reaching about 5.5 million metric tons (mt) in mid-2013. According to Market Realist, that drop was compounded in October with aluminium inventory at LME warehouses down 138,900 mt. As of this week, LME warehouses recorded a total aluminium inventory of 3.03 million mt, according to the news source, of which nearly 36% is from cancelled warrants. All the...
China finds great potential in coal ash stockpiles for alumina extraction
There is great potential to extract alumina from coal ash in China, as the country boasts the world’s top generator of the material. China is expected to produce 620 million tonnes of coal ash, a byproduct of thermal power generation, in 2015, making it the world’s top producer, said Cui Yuansheng, professor at the Institute of Technical Information for Building Materials Industry as saying. Stockpiles of alumina-rich coal ash in central and west Inner Mongolia, north Shanxi, among other regions, have exceeded 100 million tonnes, and are growing at about 25 million tonne pace every year. The coal ash contains 40-50% of alumina, offering huge potential for extraction. However, technical bottleneck exists that needs to be broken. For example, consuming 1 tonne of coal ash could generate 6-7...
Negotiations underway amongst top Chinese companies for purchase of Alpart
According to the industry sources, negotiations are ongoing for purchase of Alpart alumina plant at Nain, St Elizabeth by leading Chinese metals company, Jiuquan Iron and Steel (Group) Company (JISCO) from Russian owners UC Rusal. The price of the 46-years old Alpart plant, established in 1969 is said to be the point of disagreement between JISCO and UC Rusal. Listed as the biggest carbon and stainless steel producer in North West China, JISCO, which boasts of making products which "clang" is said to be among the top 100 companies in China - a country of 1.35 billion people and consistently described as the world's fastest-growing economy. Negotiations for sale of Alpart have taken place at the highest level, sources said. JISCO is placing on the table a "massive development plan" that...
Huge participation expected in Detroit Automotive Lightweight Procurement Symposium
The third Automotive Lightweight Procurement Symposium will be kicked off At the Cobo Center in Detroit, USA on Monday, the 9th of November. The event is the ideal location to listen and interchange with executive speakers & delegates from leading OEMs & Tiers like FORD, MERITOR, BOCAR, DAIMLER, SUBARU, SEISSENSCHMIDT, RYOBI, GM and many more. The symposium will be accompanied by a small lightweight technology exhibition featuring companies like BOCAR, BHARAT FORGE, WHITEHALL, KURTZ, which will be open during all breaks and receptions. Furthermore three receptions will be held during the three day event to offer a perfect setup to interchange with fellow industry experts. • Delegate statistics as on 4th November 2015: • Region: Europe 11%, Nafta 72%, Asia 17% • Supply Chain: OEM 28%,...
Linde oxyfuel remelting technology speeds shift to automotive aluminum
With the demand for automotive aluminum accelerating in the U.S., Linde LLC is focusing its global expertise in oxyfuel technology on improving both the casthouse processing and heat treating of aluminum and aluminum alloy products. At the Aluminum Show 2015 in Detroit, November 11 and 12, Linde will introduce advanced Linde Low-Temperature Oxyfuel (LTOF) technology for remelting aluminum, and highlight research into the Linde Direct Flame Impingement (DFI) process which uses oxyfuel to assist in the heat treating of aluminum sheet. Secondary aluminum processors serving the automotive industry can quickly improve productivity with Linde LTOF technology, which can be installed or retrofitted to virtually any aluminum remelt operation to improve fuel efficiency, boost melting rates, and...
Aleris Aluminum selected for prestigious Grand Egyptian Museum
Aleris announced at Batimat, the world's leading construction exhibition, that it signed a contract with Alico/ORASCOM to supply a superior aluminum product for the roofing and wall cladding of the Grand Egyptian Museum (GEM). Described to be the largest archaeological museum devoted to Egyptology in the world, GEM is the most prestigious project of Egypt's Ministry of Antiquities so far. The site is located on 50 hectares (120 acres) of land between the ancient pyramids of Giza and Cairo. Aleris will contribute to this impressive project by supplying its unique 151EX aluminum product for the roofing, ceiling and wall cladding of the museum. 151EX is a premium alloy, specifically optimized for expanded metal anodising quality. This type of aluminum, with a timeless and pure look, has...
Alcoa updates on Value-Add business progress
Lightweight metals leader Alcoa reported progress on the company’s performance against three-year financial targets and its continuing transformation as it prepares to separate into two industry-leading, publicly-traded companies. As the company prepares for the separation, both the Value-Add businesses and the Upstream businesses reported progress against 2016 targets set at the end of 2013. The Value-Add businesses: • Global Rolled Products forecast approximately $1 billion of revenue growth for the three-year period, with 2016 adjusted EBITDA per metric ton at or above average historical highs of $344; • Engineered Products and Solutions (EPS) forecast approximately $3.1 billion of revenue growth between 2013 and 2016, with adjusted EBITDA margin of approximately 23 percent next year;...
Constellium reports Q3 2015 financial results
Constellium N.V.reported results for the third quarter ended September 30, 2015. Highlights below are in comparison to the third quarter of 2014 and include the acquisition of Wise Metals. • Shipments of 374 thousand metric tons, up 41% • Revenue of €1.259 billion, up 36% • Adjusted EBITDA of €79 million, up 10% despite €6 million impact of scalper outage • Automotive rolled shipments up 13%; Automotive extruded shipments up 11% • AS&I achieved a record €22 million in Adjusted EBITDA, up 29% • Q3 2015 Diluted EPS and EPS excluding unrealized losses on derivatives are (€0.43) • Liquidity of €577 million expected to be at similar or higher level at year-end • Exploring alternatives to reduce cash flow impact to Constellium of investments in Muscle Shoals • Electing to pay Wise PIK Toggle...
Sustainability by Qatalum at the GAC Environment Conference
Qatalum recently participated in the GAC Environment Conference 2015 in Doha, Qatar by delivering the event’s welcome speech and presenting a number of case studies relative to sustainability. As the aluminium industry grows in importance amidst a slump experienced by the Middle East’s energy sector, the Conference offered an opportunity for Qatalum to focus on the event’s central theme: the environment. The GAC Environment Conference was launched to provide an opportunity for sharing and discussing environmental developments as they relate to emission control in smelters and power stations. Through a series of sessions, the Conference provided attendees the opportunity to network whilst gathering a range of essential information. Khalid Laram, Qatalum’s CEO, delivered an address to the...
Aluminium remains a structurally challenged market, more curtailments necessary: BofAML
LME aluminium prices though inched up higher this week, it is still a far cry from where it can pacify aluminium producers in major markets globally. According to Bank of America Merrill Lynch, while China’s aluminium exports have now stabilised somewhat, headwinds to aluminium quotations may persist near term, especially if some market participants release working capital and dump unreported stocks into LME warehouses. “In this scenario, which we believe is possible, aluminium may fall to $1,200/t (54c/lb),”BofAML says. The sustained pressure on aluminium prices suggests that more than 50% of smelters globally are not profitable. Historically, this has prompted production curtailments. Some producers have already announced their plans to cap production; however, the crisis situation...
Plight of the US aluminium industry continues, and so are the protests
The misearbly distressed US aluminium industry is fighting for survival as the price of aluminium plumbs depths not seen since 2009. Century Aluminium, a company owned by the Glencore Group, that suffered huge losses in the recently ended quarter, is fighting back. A lobby group funded by Century Aluminum has started a petition and online campaign urging the US government to take action against China, which it blames for subsidising lossmaking domestic producers of the metal and driving down prices. The US could stop producing aluminium by next year if prices continue to decline, according to the analysts of a US based consultancy firm. That would mean more job losses and making the country completely reliant on imports of the metal that is consumed in vast quantities by its aerospace,...
Orbite closes C$22M non-dilutive debt facility
Orbite Technologies Inc. announced that it has completed a secured debt financing totalling up to C$22 million (or US$16.95 million) in the aggregate. The Facility is comprised of a US$6.5 million revolving credit facility, term loan A (US$0.45 million) and term loan B (US$10.0 million) - all with MidCap Financial. The credit facility and term loans with MidCap will bear interest at the London Interbank Offered Rate (or Libor) rate, which shall be no less than 0.5% (currently 0.2%), plus 6.5%. "Having successfully commenced commissioning of sections of our HPA plant, we have now secured the remaining funds required for completion and full commissioning of the facility, and to cover our working capital requirements beyond the start of commercial production, expected in the fourth quarter...
Andhra government to divert land for bauxite mining
The Government of Andhra Pradesh, India, has decided to divert 1,212 hectares in Chintapalli and Jerrila reserve forest in Narsipatnam division for bauxite mining. In a decision that could trigger agitations in the agency areas of Visakhapatnam, the State government has approved mining lease for the Andhra Pradesh Mineral Development Corporation for taking up bauxite mining in the agency area. Chief Minister N. Chandrababu Naidu initially preferred to tread the issue with caution and maintained status quo on the Memorandum of Understanding (MoU), which was kept in abeyance ever since protests began in the agency area. Legal status to remain unchanged In the orders issued on Thursday, October 5, the government said the legal status of the forest land being diverted would remain unchanged...
Alcoa foresees 1 million mt global alumina deficit in 2016
Lightweight metals leader Alcoa reported progress on the company’s performance against three-year financial targets and its continuing transformation as it prepares to separate into two industry-leading, publicly-traded companies. The company delivered the update at its 2015 Investor Day event in Grand Rapids, Michigan. In its Upstream business forecast, Alcoa moved down two points on the global alumina cost curve to the 23rd percentile in 2015 with goal to improve position to the 21st percentile in 2016; The company also projected a 1 million metric ton alumina deficit in 2016 from a 2.2 million metric ton surplus in 2015 estimated in third quarter 2015, due to record global alumina demand and refinery curtailments. The company was recently reported to be planning to reduce aluminium...
