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 withdrawal orders on LME surge in longest run in a year
Orders to remove aluminum from warehouses tracked by the biggest metals exchange rose for a third day, the longest stretch in more than a year, prompting traders to close out bearish bets on prices that are near a six-year low. Canceled warrants, as the bookings are known, surged 21 percent in the past three days to 1.1 million metric tons (mt), the highest in five weeks, London Metal Exchange (LME) data show. While the market is in surplus, the bookings are probably a sign that supplies are tightening and have spurred traders to cover positions on further price declines, according to ICBC Standard Bank Plc. "It’s unlikely to be related to real demand," Leon Westgate, an analyst at ICBC Standard Bank in London, said by phone. "With the large tonnages like that, it’s likely to be...
China alumina imports down 6.80% MoM in September
China imported 372,000 million tonnes (mt) of alumina in September, down 6.80% MoM, but up 9.79% YoY, customs data showed. Despite falling import prices, import volumes did not grow significantly, due to rising port stocks and weaker demand from aluminum smelters. China imported 3.14 million mt of alumina January-September, down 19.89% YoY. Imports from India grew 10.13% YoY to 486,000 mt during the first three quarters, 15.6% of total imports. Imports from Australia, however, fell 20.4% YoY to 1.88 million mt in the same period.
Two huge bauxite deposits discovered in China's Guizhou
Guizhou provinces in China recently announced the discovery of two new bauxite deposits. Preliminary studies suggest, bauxite reserves at one deposit in Zheng'an County are 20.98 million tones (mt), while at another deposit in Wuchan County, bauxite reserves stand at 33.24 mt. Bauxite reserves in China’s Guizhou province grew for four years running, according to the Guizhou Land & Resources Department. By the end of 2014, bauxite reserve base in the province stood at 133 mt, up 1 mt from 2013. Over the past few years, the number of small bauxite mines in Guizhou has decreased sharply due to stricter management by the local government. So, this news comes as an additional good news for the entire bauxite mining hub based in the region.
Rusal prepares testing site for RA-550 reduction cell
Global aluminium producer Rusal has completed preparation of a testing site for the RA-550 reduction cell. Prior to this, the Russia-based company completed engineering works and plans to commission the first cell in the third quarter of 2016. According to Rusal, the RA-550 cell development is aimed at achieving better levels of technical and economic performance in aluminium smelting. Rusal technical director Viktor Mann said: "RA-550 is a reduction cell with a breakthrough design for future smelters and upgrade projects at Rusal's existing smelting capacities. Alongside the technical and process standards, it is a compulsory requirement for any modern production facility to comply with health and safety standards and to minimise hazardous emissions into the atmosphere. So, all...
U.S. aluminum companies join hands against China's anti-competitive trade practices
Aluminum companies across the United States have come forward to form a new coalition aimed at fighting trade practices by China they think will cause potential damage to the U.S. aluminum indusrty in as little as eight to nine months. The coalition holds China responsible for heavily subsidizing its aluminum production that is causing a situation of oversupply in the global market resulting in price fall unlike ever before. The group comprising several aluminium producers is headed by embattled Century Aluminum, which posted a significant quarterly loss of $51.6 million last week and recently cut down production at its Kentucky plant. The coalition argues that China’s subsidization violates World Trade Organization rules. “As such, USTR should invoke its rights under the WTO and request...
Researchers use alumina to develop nearly 'unbreakable' glass
In a revolutionary breakthrough, Japanese researchers have developed a new type of glass that is nearly unbreakable and is said to be as strong as steel. To make glass tougher, alumina- an oxide of aluminium and silicon dioxide- is used. However, in the past, when researchers tried building strong glass by using large amounts of alumina, it caused the mixture to crystallize as soon as it touched any kind of container, preventing glass from being formed. Overcoming the obstacle, the team at the University of Tokyo’s Institute of Industrial Science, instead did away with the need of using container to make the glass. The researchers used gas to push the chemical components into the air, where they synthesized together. The resultant transparent ultra glass was 50 per cent alumina and rivals...
Chhotanagpur Bauxite Union holds Annual Meet
The annual meet of India's Chhotanagpur Bauxite Union was observed at town hall in the head of district president Vakil Khan. In the meet, Rajya Sabha member-cum-secretary of the union Dheeraj Prasad Sahu and chairman of Scheduled Tribes commission Rameshwar Oraon were present. On the occasion, Dheeraj Prasad Sahu said, “Union is set up for rights of the labourers. It never works with the company for personal benefit. But some leaders of the labourers are engaged in selfish activities tying with management. They don’t bother for the problems of the labors.” Company does not want to start the bauxite based factory here. But it must take some initiatives to get rid of unemployment. The youth are getting out of tracks due to not getting jobs, Sahu concluded. Rameshwar Oraon said, “The...
Kuantan MP seeks government intervention in bauxite export suspension issue
The federal government of Malaysia needs to step in and suspend all licenses issued to export bauxite from Pahang until it can implement regulations to deal with the allegedly rampant pollution caused by the industry, Kuantan MP Fuziah Salleh said today. The PKR lawmaker claimed that everything from Kuantan’s air to its water supply and physical environment have been contaminated by the red taint of bauxite mining since it took off in a big way sometime last year. Fuziah said bauxite mining is only regulated under the Environmental Quality Act (EQA) 1974 if it is done on a plot of land measuring 250 acres or more, with smaller mines not required to prepare any environment impact assessment (EIA). “There are loopholes in the law, so they get away without (needing an) EIA,” she said at a...
Non-ferrous margins fell in 2015, costs escalated: BIR Convention
The Bureau of International Recycling (BIR) Annual Autumn Round-Tables Conference held recently in Prague noted that non-ferrous industry had a very tough year in 2015. The confidence level among industry participants hit lowest level during the year. The industry suffered large due to thin margins and rising costs. According to David Chiao, President, BIR Nonferrous Metals Division, the prevailing bad economic condition has led to significant cuts in company budgets and major alterations to earlier announced employment plans. The market summary report presented by Board member Nick Rose noted that nonferrous metal prices witnessed significant declines during the year. LME Nickel prices saw sharpest cut of nearly 35% during the year, followed by Zinc which registered 23% decline. Also,...
Henkel's Fa Mystic Moments wins World Aluminium Aerosol Can Award 2015
A high-profile jury of journalists from internationally renowned specialist packaging media chose the winners of the World Aluminium Aerosol Can Award again this year. Twelve editors from four continents voted and chose winners in two categories: cans that are already on the market and prototypes. The winner among the aluminium cans that are already on the market was the Fa Mystic Moments can from Henkel. The can producer Ball Corporation and Henkel Beauty Care continue to pioneer sustainable aluminium aerosol packaging. With the release of the Fa ReAl can, the producer has succeeded in producing an ultra-lightweight (20 grams) aluminium aerosol can that has 25% recycled aluminium content. This metal alloy is stronger and lighter without affecting the package integrity. For a 150- and...
Global industrial casting market to chart 7.88% CAGR growth over 2015-2019
A recently conducted research reveals the global industrial casting market is slated for growth at 7.88% CAGR over 2015-2019 period. Increased simulation-based castings and development of trends involving conducive government regulations have been identified as the major growth drivers in the report. Manufacturing sector in many developed economies is being brought under scanner as environmental sustainability is gaining significance all across the world. The US EPA has imposed a number of restrictions on power plants to reduce emission levels, and most importantly, greenhouse gas (GHG) emissions. The governments have made it compulsory for the automobile industry players to manufacture automobiles which are adequately high on fuel efficiency. The mandates have fuelled R&D activities...
Novelis Korea recognized for Green Management Excellence
Novelis, the global leader in aluminum rolled products and recycling, announced today that it has been awarded the Grand Prize in the Green Management Excellence category of the 2015 Global Standard Management Awards, held under the co-sponsorship of the Korea Management Association (KMA) and the Korea Management Association Registration (KMAR). Now in its fourteenth year, the Global Standard Management Awards have emerged as the most prestigious awards in the Korean business community. The Global Standard Management Awards recognize companies and organizations for their contribution to promoting sustainable development and enhancing global competitiveness in ten categories, including sustainable management, green management and energy management. The KMAR surveyed 709 companies with more...
Odisha to come out with draft policy for downstream industries
To give a fillip to downstream industries, the state government of Odisha in India plans to come out with a dedicated policy for downstream industries, which includes aluminium extrusion and allied businesses. "The draft of the policy would be ready before the end of this fiscal. The policy for downstream industries would focus on assured raw material linkage for such units. The policy would boost downstream units around the mother plants and also generate substantial employment", said industries minister Debi Prasad Mishra. In its recently notified SEZ (Special Economic Zone) policy, the state government has stressed that investors in metal sectors like steel, aluminium and ferro alloys with investments exceeding Rs 1,000 crore need to establish downstream parks if they want to put up...
AluSolutions 2016: Conference speakers announced
AluSolutions 2016, the only free exhibition and conference addressing sustainability challenges in aluminium production and processing, has announced Dr Fiona Solomon, Executive Director of the Aluminium Stewardship Initiative(ASI), as a keynote speaker. Dr Solomon brings nearly 20 years of experience in sustainability and corporate social responsibility to her role at the ASI and will present on how the industry can address the environmental, social and governance aspects of the aluminium value chain. Other speakers will include a representative from European Aluminium, Melanie Williams, Graham Bruce from Taha International Corporation, as well as a representative from the Bureau for Middle East Recycling. With more speakers still to be announced, organiser Quartz Business Media is...
Alcoa to curtail refining and smelting capacity to drive upstream competitiveness
Lightweight metals leader Alcoa announced that it is taking decisive action to curtail uncompetitive smelting and refining capacity to ensure continued competitiveness amid prevailing market conditions. The company will reduce aluminum smelting capacity by 503,000 metric tons and alumina refining capacity by 1.2 million metric tons. Alcoa will begin the curtailments in the fourth quarter of 2015 and will complete them by the end of the first quarter of 2016. The reductions will further improve the cost position of the Upstream business and ensure competitiveness in a lower pricing environment, including a 30 percent drop in the Midwest transaction aluminum price year-to-date. Alcoa has been aggressively reshaping its Upstream portfolio as part of a successful multi-year strategy to...
Researchers develop new energy-efficient technique to weld steel and aluminium
As manufacturers, particularly in the automobile industry, continue to work toward incorporating lighter metals like aluminium with heavier steel, the ongoing problem has been how to successfully weld them together. The problem is that the high heat created in the welding process actually weakens these lighter metals, creating a less than optimum weld. After 10 years of research, engineers at The Ohio State University have developed a new welding technique that may prove to solve this problem while also using 80 percent less energy and creating bonds that are 50 percent stronger. "With our method, materials are shaped and bonded together at the same time, and they actually get stronger," says Glenn Daehn, professor of materials science and engineering at Ohio State, who helped develop the...
China aluminium semis exports to continue losing steam, SMM Sees
China’s aluminium semis exports lost steam in September, a trend to continue as the year goes on, SMM predicts. Falling aluminium premiums and prices overseas, as well as anti-dumping will inhibit outflows of Chinese aluminium semis. Meanwhile, falling profitability has dampened Chinese companies’ willingness to accept export orders, SMM has learned. Outbound shipments were unchanged from August at 300,000 tonnes in September, but were down 11.76% from a year ago, customs data showed.
China set to offload more aluminium onto global market
Amid accusations made by the US trade associations and other market bodies that China might be violating international trade regulations and fair competition norms, the world’s largest aluminium producing country is yet again set to unleash fresh loads of aluminium onto the global market. This comes in the wake of the Chinese government offering lower power tariffs to the country’s dying smelters in an effort buoy the slowing economy. Electricity being the single most crucial factor in aluminium smelter operation is expected to lower the cost of production significantly thereby helping the producers to stay economically viable in the short to medium term. China is already producing excess aluminium and offloading it onto the world markets. This breather from the country’s top authorities...
