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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AMAG and Danieli extend their business relations
After the orders assigned to Danieli for a hot rolling mill and a plate stretcher for the AMAG 2014 project, Austria’s leading aluminium producer recently decided to rely again on Danieli’s technological expertise. Danieli Fröhling, known as specialist for high-performance cutting and finishing lines for aluminium strip, will supply a coil preparation station and a slitting line for the AMAG 2020 investment programme. The equipment to be supplied will be used to prepare cold rolled coils to remove strip with undesired thickness variations both from head and tail end. Subsequently, these coils will be processed on a dedicated slitting line that will be able to slit the material in up to 4 finished strips. The large thickness range, many different finished strip widths and the big variety...
Nadcap approval for Wallwork aluminium and magnesium heat treatment
Metal improvement specialist, Wallwork Group, report that their Nadcap approval has now been extended to cover both their aluminium and magnesium heat treatment processes. The company is one of a small number of UK heat treatment companies able to process aluminium to aerospace industry standards. There are even fewer companies that have the rare ability to heat treat magnesium. The company processes complex components from satellite and aircraft parts through to motorsport and sports cycle equipment. Parts processed vary from fabrications and castings to small pressed-metal parts. Within their high-tech furnaces, Wallwork can heat treat loads of up to two cubic metres in each process cycle. Ian Lacey, business development manager for aluminium and magnesium heat treatment explained,...
India aluminium scrap prices stay flat; MCX aluminium settles down
India major aluminium scrap commodities prices stayed flat on Thursday, October 16, while aluminium futures prices at India's Multi Commodity Exchange (MCX) settled down weighed by large stocks and a surge in Chinese exports this year. The major aluminium scrap commodities dropped on Scrap Register Price Index as on Thursday. India's major scrap commodities like aluminium accessories scrap, aluminium ingots, aluminium rod company, aluminium rod local, aluminium sheet cutting, aluminium utensil scrap and aluminium wire scrap were remained flat on Thursday. The most active September aluminium contract on Multi Commodity Exchange settled down by 1.19% to INR 100.25 per kilogram on Thursday, from previous close of INR 101.45 per kilogram. The MXC aluminium prices touched an intra-day high of...
Ma'aden's Q3 net profit drops 83.5 percent
Saudi Arabian Mining Co (Ma'aden), the Gulf's largest miner, posted an 83.5 percent fall in third-quarter net profit on lower prices for its products. Ma'aden made a net profit of 79.9 million riyals ($21.3 million) in the three months to September 30, versus 485.4 million riyals in the corresponding period of 2014, it said in a bourse statement on Sunday, October 18. Two analysts had forecast a quarterly profit of 209 million and 265 million riyals respectively. Ma'aden, which operates in gold, aluminium and phosphates, is a key pillar in Saudi Arabia's plan to diversify its economy away from hydrocarbons. It said earnings had suffered from a fall in average prices for all of its products, and a fall in the volume of ammonia sales. Aluminium prices have come under pressure from a global...
USW members rally to call for end to Sherwin Alumina lockout
It was a landmark Saturday afternoon rally. Hundreds of United Steelworks (USW) members walked down Saratoga Boulevarde to call for the end to Sherwin Alumina lock out. Sherwin Alumina shuttered down its Gregory facility in 2014 rendering 450 employees jobless. USW members had offered more than once to work while negotatios continue, but the company turned down their proposal. It was high time that both the parties thought of a logical solution to the grave situation. Now, the workers have agreed to get back to their jobs with fair contracts. The rally was held to show their intent towards this end. It remains to be seen how Sherwin Alumina management reacts to the situation and works towards a solution that is worth accepting both for the company as well the United members.
Canada's First Bauxite still hunting for financing its Bonasika mining venture
Canada’s First Bauxite Corporation is yet to find a source to finance its proposed bauxite mining project at Bonasika. The delay has posed a major impediment in the start of construction of the mine. “They still looking for financing, it’s very difficult now,” said Commissioner of the Guyana Geology and Mines Commission Rickford Vieira in a statement recently. He said that the company had done a proposal and asked for more time. First Bauxite was supposed to begin construction by the end of January next year on receipt of two extensions; however, the delay in finding any potential source of financing meeting the deadline seems quite impractical. Bonasika bauxite mine is one of the several projects that have stalled due to difficulties in finding appropriate financing.
Aluminium use in automobiles reduces pollution: Nalco CMD
Growing application of aluminium in automobile industry has not only increased fuel efficiency but also reduced the vehicular pollution, said Nalco CMD T K Chand. "While the developed countries use on an average 140 kg of aluminium per vehicle, in India it is about 40 kg only. Nevertheless, by 2016 the use of this lightweight metal in auto sector in India is expected to go up by at least three times," said Chand, on the sidelines an Auto Fest in Bhubaneshwar on Saturday, October 17. Stating that replacement of one kg of heavy metal by aluminium reduces 22 kg of carbon dioxide emission during the lifecycle of a vehicle, Chand said, "Most importantly, at the end of a vehicle's life nearly 90 per cent of the aluminium is recyclable." "Initially, aluminium gained a foothold in wheels and...
Automation and recycling help Canadian aluminium automotive die casters to make a mark
According to the observations made in a recently published research report on aluminium die-casting market for automobiles in Canada, the market here is matured and is continuing a steady growth over the past couple of years. Despite ongoing economic crisis and government's hostile tax policies, that have been adversely impacting the small firms, as a whole, the regional market has continued to dominate the global aluminium die-casting market with the growing automobile industry in the country. Empire Die Casting, an Ohio-based aluminium and zinc die caster, and other plants have installed advanced electric aluminium melting, and distribution and holding systems. This infrastructural advancement is expected to cut the amount of energy consumed by aluminium smelters by 80%. Regional...
MSI Gaming announces the Thunderstorm aluminium mousepad
MSI Gaming, the leading gaming notebook manufacturer and innovator, announced the launch of its brand new Thunderstorm dual-sided gaming mousepad, which is engineered from anodized aluminum, forming a tough mousepad that will not bend during intensive gaming sessions. To keep it firmly in place, the Thunderstorm is equipped with anti-slip feet on all four corners. Its unique L-shaped design gives gamers maximum freedom to position their keyboard and mouse exactly the way they prefer. The edges of the solid aluminum Thunderstorm have a chamfer finishing for a premium look and feel. Suited for gamers of every type, the MSI Thunderstorm features two different surfaces to choose from. For ultimate swiftness, the polymer textured Speed Surface is optimized for fast movements and gives a smooth...
Canada's Linamar offers $882 million to buy French supplier Montupet
Canadian supplier Linamar Corp. has offered 771 million euros ($882 million) in cash to acquire French peer Montupet SA. Montupet, which is working with U.S. investment bank Jefferies, said its board is supporting Linamar's tender offer. The French company supplies valued-added aluminium castings and parts to a variety of automakers in Europe, including Volkswagen. Linamar CEO Linda Hasenfratz said in a statement: "Montupet is a technical leader in the market, well known and respected for its engineering and processing expertise in the cylinder head segment in particular where we intend to grow and leverage our respective strengths. "Our businesses are very complementary, with our finished machining strength and Montupet’s casting expertise, and we are remarkably aligned in our business...
Norsk Hydro's Pará port facilities may close for clean-up, operations unaffected
Brazil’s Federal and State Public Attorneys in Pará and the State Public Defender has requested that the Brazilian federal court halt activities at the Vila do Conde port to clean up after a ship, carrying cattle, capsized in the port on October 6. Hydro’s operations at the nearby Albras and Alunorte plants are so far unaffected. The capsizing happened at one of several quays at Vila do Conde, which is Pará’s biggest port and also the location of the quay that Hydro uses to load and unload finished goods and certain raw materials for Alunorte and Albras. Any possible future closure of the port would not immediately impact Hydro’s operations, however, a longer-term closure could eventually impact operations. Hydro is following the situation closely and is actively assisting authorities in...
LME aluminium vulnerable to losses this week
LME aluminium will be vulnerable to losses this week on negative news from China, SMM says. Bearish sentiment is strong in China. The US dollar index found strong support near 94. LME aluminium has lost support at all moving averages. All these factors will push LME aluminium down below $1,550 per million tonne. SHFE 1512 aluminium will range 11,000-11,200 yuan per tonne, dragged by lower production costs. Spot discounts in China will widen to 100 yuan per tonne due to high inventories. According to the analysts, LME aluminium may break a support at $1,563 per tonne. It fall to the next support at $1,552, as indicated by a Fibonacci projection analysis. The support is provided by the 14.6 percent Fibonacci projection level of an upward wave C, the third wave of a three-wave cycle from the...
INALUM expands capacity to double production
Indonesia Asahan Aluminum (INALUM) has allocated up to US$2.5 billion to finance a number of projects in order to help achieve a target of producing 500,000 tons of aluminum by 2020. Among the projects are a new 200,000 ton capacity aluminum smelter and a steam-fueled power plant (PLTU) as well as the expansion of Inalum’s designated port at Kuala Tanjung in North Sumatra. Inalum president director Winardi Sunoto said that in order to accomplish the production target, Inalum would need a minimum of 1 million tons of raw aluminum material to process. Currently, the state-owned aluminum maker's top production capacity is at 250,000 tons. “With our expansions and our projects, we expect to be able to double our production by 2020,” Winardi said on Thursday. Regarding the projects, Winardi...
Union accepts proposed labor deal at Alcoa Intalco aluminum smelter
Workers at Alcoa's Intalco Works aluminum smelter voted to accept the company's final contract offer, staving off a second labor dispute at a U.S. smelter this year as prices tumble below production costs. "The Contract was accepted," The international Association of Machinists & Aerospace Workers said on its website. Contract negotiations began on Oct. 1 between Alcoa and the International Association of Machinists & Aerospace Workers Local 2379, which represents 500 of the 560 workers at the 230,000 tonne-per-year smelter in Ferndale, Washington. The vote prevented any industrial action at the plant, as aluminum prices on the London Metal Exchange (LME) languish near 6-year lows and after the Midwest premium AL-PREM paid on top of futures for physical delivery fell an unprecedented 66...
ANTAM and INALUM forms a JV to develop smelter grade alumina refinery
PT ANTAM Tbk and PT Indonesia Asahan Aluminium (INALUM) announced that they have agreed to set up a joint venture company to develop and operate Smelter Grade Alumina Refinery (SGAR). Construction of the SGAR in its proposed location in West Kalimanta, is to start in 2016; operations at the plant will commence in 2019. ANTAM's President Director, Tedy Badrujaman, said, 'The agreement with INALUM to set up a joint venture company with strategic partner is the next step following the signing of MoU between the two companies in July this year. The development of SGAR Mempawah will add value to our vast bauxite reserves through downstream processing.' INALUM's President Director, Winardi Sunoto, said, 'Our synergy with ANTAM is part of our sustainable development initiatives to create an...
Production from Guinea's Alufer bauxite mine delayed until 2017
Operations at Guinea’s Alufer Bel-Air bauxite mine experienced a setback as its extended negotiations with the government pushed back production at the site by a year to 2017. The independent miner had earlier announced its plans to invest around USD 400 million to develop the Bel-Air open-pit mine near the coast of the West African country, which is home to almost one-third of the world's reserves of bauxite. Production had been expected to begin in 2016. However, administrative problems over the terms of a contract delayed the entire project. A basic production agreement needs to be signed with the mining company first and ratified by parliament. "We had a first round of negotiations in Conakry and we now need to meet again in the coming weeks to continue with them," said a Guinean...
LME aluminium neutral in $1,577-$1,599 range
LME aluminium looks neutral in a range of $1,577-$1,599 per tonne, and an escape will point a direction. The range is formed by the 23.6 percent and the 38.2 percent Fibonacci projection levels of an upward wave C, the third wave of a three-wave cycle from the August 24 low of $1,506. A break above $1,599 could lead to a gain to $1,616, the 50 percent level, while a break below $1,577 could cause a loss to the range of $1,552-$1,563, formed by the 7 percent and the 14.6 percent levels.
Aluminium gains by 0.1% on spot demand
Aluminium prices were up by 0.15% to INR 101.60 per kg in futures trade on October 15 as speculators enlarged positions even as metal weakened overseas. At the Multi Commodity Exchange, aluminium for delivery in October rose 15 paise, or 0.15%, to INR 101.60 per kg, in a business turnover of 406 lots. The metal for delivery in November traded higher by 10 paise, or 0.10%, to INR 103.15 per kg in eight lots. Analysts said the rise in aluminium prices at futures trade was mostly attributed to a firming trend at the spot markets on the back of rising industrial demand but metals weakness overseas, limited the gains.
