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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Electricity market reform: A chance to unlock investment in European aluminium production
Electricity is the lifeblood of aluminium production. Long - term certainty of supply and a competitive electricity price are crucial to unleash the growth potential of the industry in Europe. European Aluminium welcomes the planned reform of the EU Electricity Market Design as an opportunity to accelerate the transition towards a more decentralised, low-carbon and competitive electricity market in Europe. This should go hand in hand with the creation of a compensation scheme that lifts the burden of indirect carbon costs passed on to Europe’s Aluminium producers. Aluminium smelters offer great benefits to the power system, such as the ability to balance supply and demand. Their flexibility to reduce electricity consumption as needed contributes to grid stability and helps tackle...
Aluminium structural components showcased in SAG Tech Days North America 2015
SAG Tech Days held at each of the two US truck manufacturers and current SAG customers Navistar-International respectively Daimler Trucks North America in mid September were a huge success. Thereby less known possibilities from SAG as Rheocasting or aluminum structural components in general were presented as well as the possibility to work with SAG as a product development partner. Fully packed with sample parts and presentation material the first stop was Navistar in Chicago where the managing director of SAG Mecasa, Mr. Luis Alvarez and the head of Sales of SAG Mecasa, Mrs. Alejandra Casas joined. Navistar currently receives air-tanks from the SAG-Mecasa/Proform joint venture. A presentation room was equipped with SAG posters and sample parts. During the day numerous employees from...
Klöckner & Co expands business with aluminium for automotive industry in Europe
Klöckner & Co is building a new service centre at its operating location in Bönen, North Rhine-Westphalia, Germany, through its subsidiary Becker Stahl-Service GmbH. The new facility will process aluminium flat products for the automotive and manufacturing industries in Europe. Capital expenditure in the low to middle double-digit millions of euros is planned for the new business, which will trade as Becker Aluminium Service GmbH. Some 40 jobs will be created at the new Bönen service centre scheduled for completion in 2017. “The launch of Becker Aluminium Service is a further step in systematically implementing our strategy of increasing the percentage of sales generated with higher value-added products and services. At the same time, we are supplementing Becker’s product portfolio with...
ISRI, iScrap App agreement provides recyclers with new marketing opportunities
The Institute of Scrap Recycling Industries (ISRI) announced Friday last week that it has added iScrap App to its list of affinity programs. This opens the door for ISRI members to access expert advice on marketing their business, profiles on the iScrap App directory, and a discount for its premium service. “Through our Member Affinity Program, ISRI is constantly looking to bring increased value and new benefits to its membership,” said Robin Wiener, president of ISRI. “In addition to discounted equipment, insurance, supplies, shipping, and other perks, ISRI members will now benefit by being able to rely on the marketing strategists and having their business listed on iScrap App at a discounted rate. This provides a significant advantage over non-ISRI members.” iScrap App was developed by...
Nalco updates on its US$2.8bn venture in Iran or Oman
National Aluminium Company Ltd. (Nalco) was earlier reported to have planned to invest US$2.80 billion to build an integrated aluminium roject in either Iran or Oman. In a recent update, the company sources divulged that the proposed 5 lakh tonne-per-year smelter, which will also include a captive power plant, will run on surplus alumina from Nalco's existing and proposed Indian refineries. The planned aluminium smelter will cater to the markets for value-added products, primarily from the automobile industries in South Asia, Southeast Asia, Europe and the US. The public sector company has free cash reserves of INR 17,000 crore; and this project has been conceived based on these strong financial credentials. As per the update, Nalco would consider various parameters for the captive power...
Century announces third aluminium smelter curtailment in 2 months
Century aluminium Co, controlled by Glencore Plc, said it will curtail one of three potlines at its Sebree, Kentucky, aluminium smelter by December 31, the company's third capacity reduction in two months as weak prices bite. The curtailment will reduce the 210,000 tonne-per-year plant's capacity by around 70,000 tonnes and comes just one week after it announced plans to close its 224,000-tonne Mount Holly, South Carolina, smelter by Dec. 31 if it does not receive a favorable power deal. Century blamed the need to close the Sebree potline on low aluminium prices due to Chinese overcapacity and rising exports, resulting in a sharp drop in aluminium futures and the premiums paid for physical delivery of the metal have fallen sharply, harming producers. In late August, it announced plans to...
First Bauxite Corp announces Private Placement and rollover of existing debt
First Bauxite Corporation is pleased to announce a non-brokered private placement to Resource Capital Fund VI L.P. of an aggregate of US$15 million principal amount secured convertible notes bearing 8% interest and maturing August 1, 2017 to close in two tranches, the first of which closed today with the issuance of a US$4 million Note. The principal amount of the Notes will be convertible at the option of RCF into common shares of the company at CAD$0.05698 per share for a period of one year from the date of issuance and CAD$0.10 per share thereafter, while interest outstanding on the converted amount may, at RCF's election, be settled by the issue of company shares at the Market Price. The company may prepay the principal amount of the Notes in shares valued at the Conversion Price if...
Malaysia overtakes Australia as China’s top bauxite supplier
Overwhelming price appeal made Malaysia overtake Australia as the top bauxite supplier to China during January-September period. Bauxite imports from Malaysia soared to 15.87 million tonnes (mt) during the first nine months 2015, surpassing 15.09 mt imported from Australia, showed customs data. China, the world's top aluminium producer, imported 6.81 mt of bauxite ore in September, up 138.62% year-on-year. Average CIF price of Malaysian bauxite in September was $45.97 per tonne, 13.83% lower than Australian ore and 27.53% lower than Indian ore, SMM data showed.
LME aluminium unlikely to rebound this week; to retest resistance at $1,488
Aluminium on London Metal Exchange (LME) will have little chance of a rally this week, SMM said last week, Friday. The US dollar will stay elevated on US Fed’s hawkish tone, and SHFE aluminium will remain in downward track, boding ill for LME aluminium. Also, LME aluminium has met strong resistance at the 5-day moving average. The metal on London exchange is expected to retest resistance at $1,488 per tonne, as it has completed a downtrend from the October 9 high of $1,646. The trend could be broken down into five small waves, signaling its completion. This explains why the metal could stabilise around support at $1,462, the 161.8 percent Fibonacci projection level of the trend. The consolidation above this support strongly suggests the formation of a bottom, which will be followed by a...
RUSAL invests up to $10 million in the casthouse modernisation project at Sayanogorsk
UC RUSAL, a leading global aluminium producer, has conducted the initial tests of new equipment within the project for melting furnace installation in the casthouse at Sayanogorsk smelter (RUSAL Sayanogorsk). The project investment will total up to USD 10 million. The project, scheduled to be implemented throughout 2015–2016, aims to boost efficiency by recycling the processed waste of value-added products. The company expects annual volumes of processed waste to exceed 27 thousand tonnes, including dross pressing. At the first stage of the project new equipment has been purchased: an automated hot dross pressing machine equipped with a gas filtering system. ‘Installation of a melting furnace will allow us to bring VAP production efficiency at the smelter to a fundamentally new level. As...
Showa Aluminum Can builds integrated production system in Vietnam
Showa Aluminum Can Corporation, a consolidated subsidiary of Showa Denko, completed construction of can end production lines in Vietnam, and went into quantity production of can ends this October. In May 2014, SAC acquired controlling stake of Hanacans Joint Stock Company (Hanacans), an aluminum beverage can manufacturer of Vietnam. Since then, by introducing SAC's advanced manufacturing technology and latest quality management system into Hanacans, SAC has successfully increased Hanacans' sales in Vietnamese market where demand for canned beer continues increasing. In the past, Hanacans did not have the line to produce can ends, and outsourced them. Therefore, Hanacans started to set up new can end production facilities in October 2014. Moreover, in August 2015, Hanacans was successfully...
Sapa continues improvement in financial results
Sapa continued to improve its financial performance with a third quarter result that was significantly better than its result in the same quarter last year. Underlying EBIT in the third quarter was NOK 404 million, compared with NOK 201 million last year. The increase was driven by positive contributions from improvement programs and restructuring efforts, strong North American demand, and positive currency effects. Through the first nine months of 2015, underlying EBIT for Sapa was approximately 80 percent higher than in the same period last year. The improvement in underlying EBIT this year was influenced by the same factors, partly offset by negative effects from sharply falling metal premiums in North America. Operating revenues rose by 20 percent in the third quarter, compared with...
Greater awareness takes Alufoil container recycling to new high
New data released by EAFA, the European Aluminium Foil Association, confirms that recycling rates in Europe for alufoil trays and semi-rigid containers in 2013 reached about 55%. The previous reporting period (2010) saw that figure rise above 50% following concerted efforts by the industry to promote the benefits of resource efficient and sustainable packaging options. The Association says continued work by the industry to promote the value of collection and recycling; along with national campaigns are having significant effects. Increased awareness has seen consumers recognise all aluminium foil trays and containers, not only those used as primary packaging, can be recycled, as well as other kitchen products, such as disposable alufoil BBQ and oven trays. EAFA's Container Group Chairman...
Award-winning UK ‘treehouse’ features aluminium systems
Aluminium curtain walling from the Technal brand has helped turn a stunning “treehouse” suspended in the woodland canopy in Yorkshire into a multi-award winning conference venue recognized for architectural excellence. Designed by architects The Harris Partnership and built by Conlon Construction, the 2,060-squre foot aerofoil-shaped “treehouse” was commissioned by the Bayford Group at the former ancestral home of aviation pioneer Robert Blackburn, who inspired its aeronautical theme and its name, the Blackburn Wing. Accommodating up to 140 people, the stunning timber, copper and glass events center is the centrepiece of a £6m multi-phase restoration project across the historic, 19th-century Bowcliffe Estate in Yorkshire. It is one of only two structures ever to have been built in an area...
North American aluminum scrap prices declined on Index 28th Oct, 2015
The North American aluminum scrap prices declined on ScrapMonster Price Index as on October 28th, Wednesday. 1100 Scrap prices declined by $0.01 per Lb. The prices of 3003 Scrap too fell $0.01 per Lb. A down move of $0.01 per Lb was witnessed in 356 Aluminum Wheels and 6061 Extrusions. Meantime, 5052 Scrap prices, 6063 Extrusions and 6063 Extrusions/Fe too declined by $0.01 per Lb over the previous day. The prices of Al/Cu Radiators and Al/Cu Radiators/Fe remained flat over the previous day. Aluminum Radiators prices went down by $0.01 per Lb. Aluminum Radiators/Fe and Aluminum Transformer prices held steady on 28th Oct. Breakage 50% Recovery prices too remained unchanged. E.C Aluminum Wire prices too slipped by $0.01 per Lb. The prices of Litho Sheets and Old Cast witnessed decline of...
Metalface offers new communication option for recyclers
Metalface, an Internet and mobile communication network designed for metals recyclers, says it will go online in late October 2015. Sepp Hermelink of the Netherlands-based company describes Metalface as an “all-in-one business network [that] will enable metal recyclers to find, connect, communicate and share prices with people in the industry in real time.” Hermelink says Metalface is “backed by industry leading companies in the media, [trade] federations and recyclers.” Adds Hermelink, “This platform will revolutionize the way people in the metal recycling industry will communicate.” On its website, Metalface offers to provide access to a network of contacts who can be found by searching for “metal recyclers at over 15,000 companies worldwide.” Metalface says its chat app provides access...
Bauxite mining in Bua continues, two more sites being explored
Bauxite mining in Fji's Bua province has not ended and other prospective sites are being explored for possible deposits. This was confirmed to members of the Parliament Standing Committee on Natural Resources by Department of Mineral Resources director Malakai Finau. Mr Finau said although the company mining bauxite at Nawailevu had started exploration on Wainunu in Bua, there was no guarantee it would be given access to other sites. "In Nawailevu there are two sites, Nawailevu south and Nawailevu north, they haven't completed exporting," said Mr Finau. He said standing bauxite at the stockpile site at Naviqiri amounted to 70,000 wet metric tonnes, which was estimated during the last inspection visit by the department. Mr Finau also revealed the initial $US26 ($F55) per tonne had to be...
Aluminium futures weaken on global cues
Aluminium prices were down 0.78 per cent to INR 95.30 per kg in futures trade today as investors reduced exposures amid weak global cues and sluggish demand in the domestic spot markets. At the Multi Commodity Exchange, aluminium for delivery in November eased by 75 paise, or 0.78 per cent, to INR 95.30 per kg, in a business turnover of 416 lots. Similarly, the metal for delivery in October was trading lower by 70 paise, or 0.74 per cent, at INR 93.90 per kg in 513 lots. Marketmen said the weakness in aluminium at futures trade was mostly in tune with a weak trend at London Metal Exchange (LME) as industrial metals weakened after hints of an interest rate hike in December by the US Federal Reserve boosted the dollar and diminishing commodities appeal.
