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...
Grow with
AL Circle
Aluminium prices hit by mounting China demand concerns
Aluminium prices tumbled to six-year lows on Wednesday, October 28, as traders fretted about the likelihood of large surpluses this year and next and the lack of substantial output cuts to balance the market. Benchmark aluminium on the London Metal Exchange (LME) slumped to $US1460 a tonne in early trade, its lowest since June 2009. It later recovered to close at $US1484 on Tuesday. "Aluminium's fundamentals are extremely challenging, we haven't seen anyone really seriously cutting back production," observed an industry analyst. "Problem is they are all waiting for someone else to do the decent thing." A latest survey conducted earlier this month showed analysts on average expect the aluminium market to have a surplus of 815,000 tonnes this year. The range of forecasts was from 440,000...
Orbite provides update on patents related to alumina refining technology
Orbite Technologies Inc. announced that it has received patent titled "Methods for Separating Iron Ions from Aluminum Ions" from IP Australia. The company has also been notified of the following: • Patent application No. 14/005,885 titled "Processes for Recovering Rare Earth Elements from Aluminum-Bearing Materials" has been found allowable by the United States Patent and Trademark Office ("USPTO"); • Patent application No. 2,863,755 titled "Methods for preparing Hematite" has been found allowable by the Canadian Intellectual Property Office ("CIPO"); • The State Intellectual Property Office of the People's Republic of China ("SIPO") issued a Notification of Granting for patent application No. 201280044914.7 titled "Methods for Separating Iron Ions from Aluminum Ions". Fees will be paid...
Bauxite Resources reports reduced mining activities in quarter ended Sept 30
Bauxite Resources Limited has recently announced its September 2015 quarterly report. During the quarter, exploration activities were significantly reduced while the dispute with Yankuang was under mediation. The result of that mediation was announced to the market on 21 October 2015. Bauxite Resources Ltd, Yankuang Resources Pty Ltd and Yankuang Group Company Ltd had been engaged in a formal mediation in an effort to resolve the dispute between the parties regarding amongst other things the progress of the Refinery Bankable Feasibility Study. The mediation was conducted on 11 August 2015 and was adjourned to enable the parties to explore a proposal under which the joint ventures would be terminated with Yankuang acquiring BRL's interests in the joint ventures and in BRL's 100% owned...
Update: Logan Aluminum announces $240 million expansion plans
Logan Aluminum, the Delaware based maker of rolled sheets for the beverage industry, has announced its long awaited $240 million investment plans, which would add automotive industry among its customers. Earlier on October 28, Wednesday, Governor Steve Beshear brought the news to Warren County that would exectedly create significant employment opportunities. “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 aluminum industry,” Beshear said in a news release. “Logan Aluminum sets the example of how innovative Kentucky companies can add capacity, products and jobs by reacting to market forces.” Logan already employs more than 1,000 people. In addition to the...
Ball Corp. acquires remaining interest in Brazilian joint venture
Ball Corp. announced that it will acquire the minority interest owned by its joint-venture partners in Latapack-Ball that supplies cans and ends to the Brazilian market. Ball Corp. said it will acquire the remaining 39.9 percent minority interest in the Latapack-Ball beverage-can business in exchange for the issuance of 6 million Ball common shares, giving the Broomfield-based company full ownership of Latapack-Ball. Ball’s shares were trading at $66.90 Tuesday, which would give the deal an estimated value of $401 million. The joint venture was established in 1995. The operation supplies cans and ends to the Brazilian market from four manufacturing facilities. The local business has grown over the years as local customers’ packaging mix continues to shift to metal beverage cans, according...
Aluminium dross processing company Taha International strengthens its management team
Taha International, headquartered in Bahrain, as part of its further growth strategy, and to support the company entering a robust new phase of expansion, has strengthened the management team with three key appointments. Graham Bruce , formerly CEO of Gulf Aluminium Rolling Mill (Garmco) Bahrain, and ex-Chief Commercial Officer of Oman Aluminium Rolling Company, (OARC) Oman, has taken up the post of deputy CEO of Taha effective 18th October. Mr Bruce has been in the region since 2010 and is delighted to return to Bahrain to join Taha at this exciting moment in the company’s development. Max von Arnim , a partner at Fjord Capital has taken up the role of CFO for the Taha Group in Bahrain. Fjord are a London - based private equity investor focused on industrial resource efficiency and have...
MCX aluminium rise on global cues, spot demand
Taking positive cues from global market and strong demand at India spot markets, aluminium prices edged up 0.43 per cent to INR 94.25 per kg in futures trade today as participants increased their bets. Marketmen said apart from increased domestic demand, a firming global trend after an interest rate cut in China last week and before a meeting of US Federal Reserve that is expected to keep rates unchanged, helped aluminium futures to trade higher. At the Multi Commodity Exchange, aluminium for delivery this month inched up by 40 paise, or 0.43 per cent, to INR 94.25 per kg in a business turnover of 273 lots. The November traded higher by 35 paise, or 0.37 per cent, to INR 95.90 per kg in 49 lots. Globally, aluminium climbed 1.2 per cent to $1,514 per tonne at the London Metal Exchange.
UC RUSAL posts alumina production growth in third quarter 2015
UC RUSAL, a leading global aluminium producer, has announced its operating results for the third quarter 2015. Alumina production for the quarter ended September 30 totaled 1,870 thousand tonnes (+2.8% QoQ). Alumina production for the first nine months of the current financial year stood at 5,496 thousand tonnes (+1.1% YoY). International operations, including Aughinish Alumina and Windalco, accounted for the major part of the output growth due to routine maintenance repairs performed at those plants in 2Q15. The overall alumina production growth is attributable to stronger internal (intercompany) demand and sustainable demand from third parties.
Aluminum hits a fresh six-year low
Aluminium hits a fresh six-year low as spot aluminium closed at $1,442 per metric ton in the London Metals Exchange (LME) on October 26. Prior to this, spot aluminium made a closing low of $1,496 per metric ton on August 24. Of all base metals, aluminium looks the weakest as of now in the commodity marketplace. Industry analysts attribute this price fall to global aluminium oversupply. Years of production cuts by major aluminium producers failed to restore the desired balance in the market. Aluminium production cuts by companies such as Rio Tinto (RIO) and Century Aluminium (CENX) have been counterbalanced by growing Chinese exports. Aluminum demand strong Aluminum demand, on the other hand, is stronger than most other industrial metals. Alcoa expects global aluminium demand to rise 6.5%...
Logan Aluminum announces groundbreaking
Delaware based Logan Aluminum’s long talked about expansion project will likely be unveiled this week. Logan County’s largest employer announced that it would hold a ground breaking ceremony for an expansion project on Wednesday at 1 p.m. No further details were announced, but in March the Kentucky Economic Development Finance Authority gave preliminary approval to Logan Aluminum for incentives regarding an expansion project. The preliminary approval is for a proposed $282 million expansion project for the north Logan industry, which is the county’s largest employer and among the biggest in the region. According to the proposal, Logan Aluminum would create 188 jobs that could pay an average of $50 per hour including benefits. The purpose for the potential expansion would be to make...
Sapa restructures extrusion business in Sweden
Sapa's aluminium extrusion unit in Sweden, Sapa Profiler AB, has informed its organization about restructuring of operations and consequent manning reductions. Union representatives have been notified and will begin local negotiations shortly. Sapa's long-term strategy is to build strong and effective production units that meet the demands of local and regional customers. In order to optimize its production facilities and its organization to achieve Sapa’s long-term strategy, Sapa Profiler AB will focus its operations to areas where the company has a competitive advantage and invest in these. The changes have resulted in that the company has given notice to 185 employees, mainly within the manufacturing areas. "Although we have a very strong market position in Sweden, recent improvements...
EU raises objections to Rexam-Ball deal
Rexam has received a statement of objections from the EU Competition Commission regarding the proposed £4.4bn acquisition of the company by Ball Corporation, and it could be instructed to sell its UK operations to rival firms. In July the EU launched a detailed probe into whether the deal could lead to higher prices for beverage cans. It is thought that the commission is concerned the remaining competitors would not provide sufficient competitive constraints on the merged entity. However, it is understood that Ball can walk away from the deal if required to divest assets that generate sales of more than £1bn, but would have to pay a break-up fee of about £300m. The group said it will work on a package of remedies to address the EU’s competition concerns. Typically, the acquirer will have...
Odisha pitches for Pottangi bauxite mines allocation for Nalco; fresh bid for Niyamgiri on cards
Indian aluminium major National Aluminium Company (Nalco) has inched closer in its bid to bag the Pottangi bauxite deposits with the Odisha government writing to the Union mines ministry to allocate the mines in favour of the central PSU. "We have already written to the Centre to allocate Pottangi mines in favour of Nalco. The DGPS Differential Global Positioning System) survey for the mine will be carried out by Nalco'', said director (mines), Odisha, Deepak Mohanty. The Pottangi bauxite mines, with 70 million tonne deposits, has already been reserved for Nalco since 2007. Nalco would source bauxite from these mines to feed its new refinery stream. The Navratna company is adding the fifth stream of one million tonne per annum (mtpa) capacity to its existing alumina refinery at Damanjodi...
Vedanta reports strong cash flows in a challenging commodity price environment
Indian miner Vedanta Limited (formerly known as Sesa Sterlite Ltd) has announced its unaudited consolidated results for the second quarter ended 30 September 2015. Revenues stood at INR 16,349 crore and a cash flow of INR 7,145 crore was generated despite a challenging commodity price environment prevailing in the domestic as well as global marketplace. Following are the financial highlights of the results: • Continued optimization of opex and capex to maximise free cash flow and reduce net debt; generated free cash flow of INR 7,145 crore and net debt reduced by INR 5,335 crore in Q2 • EBITDA at INR 4,113 crore up by 2% QoQ; robust EBITDA margin1 at 32% • Attributable PAT at INR 974 crore, 12% higher QoQ • Strong balance sheet with Cash & Cash Equivalents of over INR 52,000 crore, up 11%...
China Zhongwang denies United States' aluminum extrusions dumping accusations
China Zhongwang Holdings Ltd , the world's second largest producer of aluminum extrusions, denied U.S. accusations it had evaded import duties, saying its export business had been conducted in strict accordance with rules in China and overseas markets. The accusations are the first formal U.S. move to curb China's aluminum exports, which U.S. producers say have grown steadily over the past year. In a petition filed with the U.S. Commerce Department last Thursday, the U.S. Aluminum Extruders Council (AEC) asked the government to clarify that pallets and 5050 alloys are subject to antidumping and countervailing duties introduced in 2011. That ruling marked a major victory for U.S. extruders that argued Chinese exports were unfairly subsidized. Zhongwang Chairman Liu Zhongtian said in a...
Lanka Aluminium penetrates deeper into the domestic market
Lanka Aluminium Industries PLC, Sri Lanka’s leading manufacturer and distributor of state-of-the-art aluminium fittings and solutions, has opened their showroom and service centre in the town of Nittambuwa recently. The opening was attended by senior officials from Lanka Aluminium and representatives of construction and interior design establishments in and around Nittambuwa. “We have a wide range of doors and windows which are specifically designed to suit our environment & climate. We take precautions to ensure that there is no water leakage and offer provisions for insect screens which is very important for households especially considering the problem with dengue,” said Dinal Peiris-Managing Director, Lanka Aluminium Industries PLC. “One of the main reasons for opening our showroom...
Arabal participants to visit Ma’aden projects at Ras Al-Khair
The Saudi Arabian Mining Company (Ma’aden) will organize a tour of its integrated aluminium facility for attendees of the Arabal conference taking place 15 – 17 November at Dhahran International Exhibitions Center in Saudi Arabia’s Eastern Province. The tour is intended to familiarize attendees with Ma’aden’s aluminium operations at Ras Al-Khair industrial city. Ma’aden, the Arabal host and organizer, will showcase the company’s operational facilities at Ras Al-Khair industrial city on theNovember 17, the day after the conclusion of the two day conference. The tour will include a visit to the alumina refinery (the first in the GCC), aluminium smelter and rolling mill, the latter being the only facility of its kind in the region and among the most technically advanced in the world. Arabal...
LME aluminium to hover above support at $1,488
LME aluminium may continue to hover above support at $1,488 per tonne, or bounce to resistance at $1,515. Support is provided by the 138.2 percent Fibonacci projection level of a downward wave (c), the third wave of a three-wave cycle from the Sept. 9 high of $1,655.50. It has triggered a strong bounce and may cause another one, which will be weaker, probably to extend to $1,515 only, the 114.6 percent level. A break below $1,488 could cause a loss to the 161.8 percent level at $1,462.
