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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Aurum Exploration (Fiji) anticipates bauxite shipment
In the wake of global economic slowdown and aluminium price decline, which have severely affected demand, bauxite shipments to China have been reported to have come to a standstill. But, Aurum Exploration (Fiji) Ltd's executive Derek Qiu said they were anticipating a shipment before the end of the year. "Probably by next month we are hoping to hear progress for shipment, but as of now there have been no shipments and no confirmation of any shipments in the near future," Derek Qiu said. "At the moment it is very hard to secure a market because of the economic conditions affecting the ore's market. We have done two shipments this year while 70,000 tonnes of bauxite valued at $1.4million are still lying at the stockpile area at Nawailevu, Bua," he added.
Sapa in line with the development of progressive aluminium solutions
The consumption of aluminium solutions is highest in the transportation and building sectors. Sapa President & CEO Egil Hogna witnessed new developments related to both sectors at company sites in Gloucester and Tewkesbury, both in the UK. The visits were part of Hogna’s 100-day program, in which he is traveling to company locations and meeting employees around the world. He joined Sapa as its chief executive on September 1. First at the Gloucester plant, which employs 140 people, one of the first stops made by Hogna (pictured in orange helmet) and local management was to examine the facility’s fabrication processes and quality tracking system. The majority of the work done at the site is for the automotive market, and includes extruded aluminium roof rails, trim pieces and tread plates....
Alexandria plans $8.5M expansion at its aluminium extrusion plant
Alexandria Extrusion MidAmerica LLC is planning an $8.5 million expansion at the aging Indianapolis plant it bought in 2012. The Department of Metropolitan Development disclosed the plans this week in a tax-abatement request that will be heard by the Metropolitan Development Commission on Wednesday. Alexandria Extrusion is a subsidiary of Minnesota-based Alexandria Industries, which acquired the local aluminum extrusion plant at 4925 Aluminum Drive, near Massachusetts Avenue and East 30th Street, three years ago. The 68,500-square-foot plant has operated since 1955 under different owners, including National Aluminum Corp. The plant designs and produces aluminum objects used by the signage, solar, recreational and medical industries. Alexandria Extrusion said it plans to spend $1.5 million...
ET Foundation and Bonnell Aluminum invite entries for 2016 Aluminum Extrusion Design Competition
The ET Foundation, the educational and research organization devoted to promoting and advancing aluminum extrusion processes and technologies, and Bonnell Aluminum are inviting entries for the 2016 International Aluminum Extrusion Design Competition. The 2016 competition is divided into two classes: Professional and Student. Bonnell Aluminum is the sole sponsor for the cash awards, totaling $20,000, including a Grand Prize of $3,500 awarded to the best design across all categories and classes. The 2016 Design Competition will include a new student design category. Professional designers, engineers, and manufacturers along with students studying design and engineering at universities, colleges, technical schools and high schools around the world are invited to participate. The ET...
US aluminium premiums surge as Alcoa production cutbacks signal turnaround
US aluminium premiums have jumped to their highest in three months after Alcoa announced plans to idle the bulk of its US smelting capacity, stirring speculation among traders that the market may have turned a corner. Spot CME Midwest premiums rose to 8 cents/lb on Monday for the biggest one-day jump in months as traders scrambled to secure metal in anticipation of lower domestic output even as global inventories are plentiful. Worries about waning demand from China, the world’s top producer, also linger. Premiums were firm around 7.9 cents on November 3, Tuesday. On Monday, one of the world’s leading aluminium producers announced it would curtail production at three of its four US smelters, slashing annual capacity by 500,000 tonnes. The rise in surcharges, paid on top of the benchmark...
Alcoa reports progress towards aluminium business targets at 2015 Investor Day
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. Alcoa also outlined a clear roadmap to complete its separation in the second half of 2016. The company delivered the update at its 2015 Investor Day event in Grand Rapids, Michigan. “Alcoa’s transformation continues to create exciting profitable growth in our Value-Add business and lower the cost position of our Upstream business to ensure success throughout the cycle,” said Klaus Kleinfeld, Chairman and Chief Executive Officer. “Culminating our successful multi-year transformation, we have now set a clear path to separating the portfolios into two strong,...
Aleris reports Q3 2015 results- adjusted EBITDA up 24% Q-o-Q
Aleris Corporation reported results for the three and nine months ended September 30, 2015. Except as otherwise indicated, all amounts reflect the divested recycling and extrusions businesses as discontinued operations. Third Quarter Summary: • Adjusted EBITDA of $68 million, up 24 percent compared to third quarter of 2014 • Global automotive volumes up 29 percent compared to prior year • Global aerospace volumes up 16 percent compared to prior year • Solid productivity savings in North America led by Nichols integration and network optimization efforts • Stronger U.S. dollar positively impacted Europe profitability • Asia Pacific achieved positive Adjusted EBITDA • Purchased $125 million in principal of Senior Notes; liquidity of $612 million as of September 30, 2015 Fourth Quarter...
Kobe Aluminum Automotive Products plans expansion
Kobe Steel, Ltd. announces that its U.S. joint venture, Kobe Aluminum Automotive Products, LLC (or KAAP), will expand its production facility to meet the growing demand in North America for aluminum forged suspension products. KAAP will invest approximately $56.6 million in capital investments. Start-up of the new production equipment is anticipated to begin in 2017. KAAP will install an additional melting and casting line and two forging presses. The expansion will increase production capacity up to 750,000 pieces per month. The investment also includes the acquisition of adjacent land and the construction of an additional building to house the new equipment, while looking ahead to further potential expansion in the future. About 100 people are anticipated to be hired. By making cars...
ARABAL 2015 receives royal patronage
The CEO of the Saudi Arabian mining company "Ma’aden" Khalid bin Saleh Al-Mudaifer announced the patronage of His Royal Highness Prince Saud bin Nayef bin Abdul Aziz Al-Saud, the governor of the Eastern Province of the Arab International Aluminium Conference and Exhibition "ARABAL 2015", which will be hosted by Ma’aden. The event takes place between the fifteenth and seventeenth of November in Dhahran International Exhibitions Center in the Eastern Province, and will be attended by His Excellency Engineer Ali Al-Naimi, the Minister of Petroleum and Mineral Resources. Engineer Al-Mudaifer spoke at a press conference hosted by Ma’aden yesterday in order to shed light on the final preparations for "ARABAL" and the themes addressed and activities associated with this global gathering....
Metro Mining outlines its Bauxite Hills project operation plan
Metro Mining announecd feasibility study results of its Bauxite Hills project in Queensland. Based on the analysis, which indicated at a healthy production over a 25+ year life with modest costs and a tight payback period, the company valued the project at A$235 million. Definitive Feasibility Study (DFS) figures for the project have contemplated a simplified operation producing 2 million tonnes per annum (mtpa) of direct shipping ore (DSO) bauxite earning annual EBITDA of $A54.4 million at a low operating cost of $22.5 per tonne before royalties. Capital expenses came in at only $33.9 million, allowing for a payback period of 1.1 years and an internal rate of return at 148%. Assuming all regulatory approvals are granted by late 2016 and project funding is obtained prior to the start of...
"We are making all efforts to keep our operations running… resorted to closure only after exhausting all other viable options," Dr Mukesh Kumar, President & Group Head - Technology & Innovation, Vedanta Limited
Vedanta Limited, a Vedanta Group company is one of the world's largest global diversified natural resources company, with operations across zinc-lead-silver, oil & gas, iron ore, copper, aluminium and commercial power. To remain competitive in the recent global melt down condition due to low metal prices and non-availability of raw materials, Vedanta Limited is plunging into cost cutting, capacity cut and technology innovation drives. Dr. Mukesh Kumar is the President & Group Head – Technology & Innovation, Vedanta Limited. He is looking after Technology/ Projects of Vedanta Resources, developing innovative culture in the group with a focus on zero discharge, zero waste and zero harm through implementation of state of the art technologies. He spoke to AlCircle about Vedanta's waste...
Shipston Equity Holdings acquires aluminium design and casting company
Shipston Equity Holdings, LLC, a privately owned company, today announced the acquisition of Compass Automotive Group, LLC, a premier aluminium design and casting company. Effective immediately, Compass will be renamed Shipston Aluminum Technologies, International (SAT). Terms of the transaction were not disclosed. SAT is a leader in the design and manufacture of complex safety critical aluminium high-performance castings found in chassis, suspension, engine and driveline systems primarily for automotive industry. SAT has expertise in modified and proprietary low pressure permanent mould and squeeze casting processes that are used in applications requiring high-integrity precision. Its customers include virtually all North American, Asian and European OEMs as well as major tier 1...
Rexam engages with British craft brewers at craft beer masterclass
Rexam, a leading global can maker, last week hosted a craft beer masterclass for craft brewers at its newly expanded Graphics & Design Centre at European HQ, Luton. Guests were shown the full can manufacturing process, from concept of the design to the delivery of cans. Eleven customers attended in total and all expressed how informative and insightful they found the session – the first of its kind. Attendees gained a higher understanding of the functionality of the can as a packaging format and the 360o design potential – key for small brands with limited marketing spend. Experts at the Graphics & Design Centre work with customers to introduce them to different can sizes and finishes, and to translate their brief into a design that will stand out on the shelf. In the last year Rexam...
China Zhongwang net profit increases by 30% to RMB2.52 billion in Q1 2015
China Zhongwang Holdings Limited, together with its subsidiaries, announced its unaudited results for the nine months ended 30 September 2015. During the review period, the Group’s revenue rose 3.0% year-on-year to RMB12.68 billion. As sales of high-end industrial aluminium products increased, together with reduced raw material costs due to a decline in the price of aluminium, the Group’s gross profit margin increased by 6.2 percentage points to 34.8%. Profit attributable to equity shareholders surged by 29.1% year on year to approximately RMB2.52 billion. Mr. Lu Changqing, Executive Director and Vice President of China Zhongwang, said, “Seizing opportunities arising from China’s industry upgrade and the light-weight development trend of the transportation sector, the Group continued to...
Aluminium Federation to seek governmental support for UK’s aluminium sector
The Aluminium Federation, UK, has called for an urgent meeting with Secretary of State for Business, Innovation and Skills, Sajid Javid. The Federation stresses that the UK’s aluminium sector needs similar support to that being proposed for the country’s steel industry. “The UK aluminium sector has already suffered major plant closures such as those currently threatened in the steel industry, and our energy-intensive industry needs government backing just as much as steel and other metals,” said Aluminium Federation chief executive Will Savage. “Specifically, we want to see swift action on energy taxes, business rates, public sector procurement, support for R&D, resourcing for BIS and a firm stance to be taken regarding China’s application for ‘Market Economy Status’ at the EU. The...
Aluminum climbs as Alcoa shrinks capacity on China export deluge
Aluminum notched higher after Alcoa Inc., the largest U.S. producer, announced reductions in smelting and refining capacity, in a latest response to Chinese export deluge that have created a global surplus and driven prices to the lowest level in more than six years. The metal used to make everything from aircraft to window frames and cans climbed as much as 1.5 percent to $1,516 a metric ton, the highest level in a week, after the New York-based company said it will reduce smelting capacity by 503,000 metric tons and alumina refining by 1.2 million tons. The measures will be completed by the end of next quarter. Prices have slumped 27 percent in the past year after Chinese shipments surged to a record as new low-cost capacity started in the world’s biggest supplier. Goldman Sachs Group...
LME aluminium may rise into $1,532-$1,548 range
Aluminium on London metal Exchange (LME) may break resistance at $1,515 per tonne and rise towards the resistance range of $1,532-$1,548, as indicated by its wave pattern and a Fibonacci projection analysis. Resistance is provided by the 114.6 percent Fibonacci projection level of a downtrend from the October 9 high of $1,646. The trend could be broken down into five small waves, with the fourth wave having peaked around $1,548, the 86.4 percent level. Wave theory suggests this peak may be approached. However, the target at $1,548 could only be confirmed when aluminium overcomes resistance at $1,532, the 100 percent level. Support is at $1,505, the 123.6 percent level, a break below which could lead to a loss to the 138.2 percent level at $1,488.
China primary aluminum imports up 97.93% YoY in September
China imported 10,600 mt of primary aluminum in September, down 11,200 million tonnes (mt) MoM, but up 97.93% YoY, customs data showed. The MoM decline is due to lower SHFE/LME aluminum price ratio. In September, tolling trade remained the major trade mode, and aluminum ingot imported not via tolling trade was rarely sold in China’s domestic market. Aluminum premiums in Japan fell to USD 90/mt in late October, down USD 10/mt from August. Despite falling aluminum premiums overseas, supply glut in domestic market and a 17% VAT will offer little incentive to import. This, combined with further decline in the SHFE/LME aluminum price ratio, means that imports will continue falling in October.
