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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JLR-Novelis project REALCAR wins Best B2B Partnership award
The Ethical Corporation’s annual Responsible Business Awards recognise sustainable and ongoing business collaboration. This year’s winners in the Best Business to Business (B2B) Partnership category are Jaguar Land Rover and Novelis for their work on the REALCAR project. The aim of the REALCAR (Recylced Aluminium CAR) project is to develop a new aluminium alloy for use in vehicle manufacture. Innovate UK played a key role in enabling this work by funding an initial research and development project. The winning project needed to show clear environmental, social and commercial benefits. The judges commented: "This project has great commercial impact tackling a major issue with measurable impact and values, very scalable for other industries; new and unique. Multiple outcomes have emerged...
Odisha government lists bauxite reserve for auction
The Government of Odisha has included one bauxite reserve (Ballada in Koraput district) among the list of 12 mines to be auctioned in the first phase. Earlier, the state government enlisted only iron ore, manganese and limestone mines for auction. The move assumes significance as Vedanta Limited has announced closure of its 1 million tonne per annum refinery at Lanjigarh in Kalahandi district due to lack of raw material (bauxite). While the plant has been facing acute shortage of bauxite, the state government is yet to come out with a solution. Odisha is trying to be the first state in India to start the mining auction according to the Mines and Minerals Development and Regulation Act, 2015, launched by the Narendra Modi government at the Centre. "The differential global positioning...
PGCIL incorporates Grids Conductors to make aluminium and aluminium alloy conductors
State-run transmission utility Power Grid Corporation of India (PGCIL) has incorporated a wholly owned subsidiary company named Grid Conductors to manufacture aluminium and aluminium alloy electricity conductors at an estimated cost of INR 127.35 crore on 15 September, 2015. PGCIL owns and operates about 1,19,579 ckt kms of transmission lines at 800/765kV, 400kV, 220kV & 132kV EHVAC & +500kV HVDC levels and 197 sub-stations. As on 30 September, 2015, the company has transformation capacity of about 2,40,954 MVA. This gigantic transmission network, spread over length and breadth of the country, is consistently maintained at an availability of over 99%..
Alcoa reports Q3 2015 productivity gains in rolled products and end use segments
Lightweight metal major Alcoa Inc reported after-tax operating income (ATOI) decline in third quarter 2015 in its rolled products and end use segments. However, strong productivity gain was reported in both the segments, which has long-term significance, as far as Alcoa's diversified business is concerned. Following are the financial highlights: Transportation and Construction Solutions ATOI in the third quarter was $44 million, down $6 million year-over-year. The decline was driven by cost headwinds and the unfavorable impact from currency, which were offset by strong productivity gains. This segment delivered an adjusted EBITDA margin of 15.2 percent, compared to 15.5 percent for the same quarter last year. Global Rolled Products ATOI in the third quarter was $62 million, down $7...
Barnshaw Metal supplies rolled aluminium sections for composite aerospace components
Barnshaw Metal Bending has supplied Aim Engineering, a manufacturer of bespoke tooling for composite aerospace components, with rolled metal sections to replace press-formed components that had started to crack. The start of the manufacturing process for many aerospace components is the production jig, which has taken on a greater prominence with the growing application of resin transfer moulding (RTM) process, which is capable of producing complex three-dimensional components using carbon fibre as the structural element. Aim Engineering is a specialist manufacturer of bespoke production tooling for a variety of industrial sectors including aerospace and had been contracted to produce an aluminium jig for creating fan cowl components for a turbofan engine. The base for the moulds is a set...
U.S. automotive parts aluminium die casting market to witness growth over 2015-20
A recently published market research report reveals the U.S. aluminium die-casting industry for automobiles is all set to dominate the global market in tandem with the growing automobile industry in the country. The report says the market has grown steadily over the past couple of years, and despite ongoing economic crisis and government tax policies that have affected the small firms, the regional market, as a whole, will continue to do well. Over 95% of the aluminium die-casting produced in the U.S. is made from post-consumer recycled aluminium, subsequently leading to aluminium content of municipal solid waste decline to less than 1% in 2014. In a nutshell, the study indicated at the enhanced focus that the U.S. automobile makers are now riveting on collaborating with the part die...
Vedanta releases production updates for Q2 and H1 ended 30 Sept 2015
Vedanta Resources Plc., the diversified metals and minerals conglomerate, announced its production results for the second quarter and half year ended 30 September 2015 on Friday, October 10. The company reported stable volumes from the existing smelters; updated on cost reduction initiatives that are currently in progress; and announced plans to ramp up production at its Jharsuguda-II smelter in Q3. Production highlights: - The Lanjigarh alumina refinery produced 272,000 tonnes in Q2, 20% higher than the corresponding prior quarter. The production was stable at the 500kt Jharsuguda-I and 245kt Korba-I smelters. - The 325kt Korba-II smelter produced 19,000 tonnes during Q2 FY2016 with 83 pots operational. However, the ramp up of further pots has been temporarily put on hold due to weaker...
Alba set to exceed production growth goals for the year
Aluminium Bahrain (Alba), the Gulf nation’s leading aluminum smelter, is set to exceed its annual production growth targets, an announcement that came at the company’s third quarter meeting in a statement from Alba’s Chairman Daij Bin Salman Bin Daij Al Khalifa; that announcement comes as the company continues its Line 6 Expansion Project, which will allow the company to massively increase output even more in coming years. When complete, the Line 6 Expansion Project would make Alba the largest single site smelter in the world. The line is expected to begin production in 2019 and is projected to boost the per-annum production by 514 thousand metric tons. Board members at the meeting reviewed a report from Alba Management on market forecasts from the London Metal Exchange for coming years,...
Alcoa reaffirms aluminium demand forecast, lowers surplus forecast
Alcoa Inc., the largest U.S. aluminium producer, maintained its forecast for global consumption of the metal. Demand is set to climb by 6.5 percent this year, New York-based Alcoa said in its third-quarter earnings statement. That matched the company’s prediction in July. Analysts at Morgan Stanley forecast 6.9 percent aluminium demand growth, attributing light-weighting of automobiles as a key driver. While Morgan Stanley forecasts a 2016 surplus of 1.18 million metric tons, Alcoa sees the market shifting to a deficit. The company narrowed its 2015 surplus forecast to 551,000 tons from 762,000 tons in its second-quarter earnings presentation. The company lowered its China consumption forecast to 9.3 percent in 2015, from 9.5 percent. It still expects global aluminium demand to double...
Aluminium market rises on short covering, open interest drops 2.76%
Aluminium settled up 0.75% at 101.25 supported by expectations of a mild improvement in demand from top user China. China’s primary aluminium imports surged 40.65% MoM to 21,800 mt in August, customs data showed. In August, primary aluminium imports were largely under two trade modes, namely feeding processing trade and goods in bonded areas (including pilot areas under customs supervision). Primary aluminium imported under these two trade modes is either sold overseas after being processed or stored in bonded zones, rather than being traded in China’s domestic market. In overseas market, the euro zone’s final manufacturing PMI was 52.0 in September. ISM’s US manufacturing PMI was 50.2 in September, slightly below 50.6 expected. The US non-farm sector created just 142,000 jobs in...
LME aluminium may fall to $1,553
LME aluminium may break a support at $1,566 per tonne and fall towards the next support at $1,553. These supports are identified respectively as the 38.2 percent and the 14.6 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. This wave has been developing within a wedge, the lower trendline of which suggests a target at $1,553 as well. Resistance is at $1,580, the 61.8 percent level, a break above which could lead to a gain to the 76.4 percent level at $1,588.
China's nonferrous metal output up 9.4% In Jan-Aug
The output of the ten nonferrous metals gained 9.4% from a year earlier to 33.87 million tons in the first eight months of this year, according to the latest report released by the National Development and Reform Commission (NDRC). According to the statistics, the country's aluminium electrolytic output grew 12.2% year on year to 21.07 million tons in the eight-month period, while the output of copper, Zinc and alumina oxide expanded 8.2%, 10.1% and 11.5% over the previous year to 5.07 million tons, 4.11 million tons and 37.87 million tons, respectively. Meanwhile, the output of lead shed 4.1% year on year to 2.58 million tons during the eight-month period. Last month, the average prices of aluminium electrolytic, Zinc and copper futures on the Shanghai Futures Exchange saw a decline to...
Inalum to produce 244,000 tons of aluminium in 2016
PT Indonesia Asahan Aluminium (Inalum) has set a target of producing 244,000 tons of aluminium in 2016. President Director Winardi Sunoto, said on September 8, Thursday, that the companys production target for 2015 had been set at 255,300 tons. "Unlike in 2016, Inalums production will be in the form of alloy and billet," he said. Diversification is one of the companys strategies, which has now become a state-owned company. Winardi said the company had set production targets until 2020, with the target for 2017 set at 233,500 tons, for 2018 at 226,000 tons, for 2019 at 316,000 tons and for 2020 at 500,000 tons. He added that to increase production, considerable electricity would certainly be needed and therefore a new power plant was needed to be built. In connection with that, he also...
LME signs up 9 warehouse firms for new aluminium premium contracts
The London Metal Exchange has signed up nine warehouse for its new aluminium premium contracts due to be launched in November, a crucial step towards ensuring their acceptance and use. Warehouse companies that will get involved in the premium contracts include Henry Bath, majority-owned by China's CMST Development, and Pacorini, the exchange said in a statement. The new contracts - one each for the United States, Northern Europe, East Asia and South East Asia - need warehouses to create warrants which can be traded by consumers and producers and other market participants such as funds. Warrants are legal ownership documents for metal stored in LME warehouses. Premiums are paid over the LME cash price to cover the cost of freight and insurance, and reflect regional demand and supply....
Fully electric CNC bending machine to launch at Fabtech, Chicago in November
Bending machine manufacturer Inductaflex will launch its first ever fully electric CNC bending machine at Fabtech, North America's largest metal forming, fabricating, welding and finishing event at McCormick Place Chicago, between November 9th and 12th. The all-new AL-1 is intended to provide automotive, aerospace, commercial vehicle and other customers with a cost effective, high precision, multiple bend solution. AL-1 can bend most materials and profiles, from complicated aluminium extrusions to polished stainless steel tubes. During development, the machine has already demonstrated its capabilities by successfully curving a 45mm wide x 65mm high extruded aluminium window section to a 165mm outside radius and 120mm inside radius - a task that has traditionally been considered to be...
China’s automotive aluminium alloy market to grow at 20% over 2014-18
Lightweight materials are the key components for making lightweight vehicles. Currently, majority of lightweight vehicles that are being manufactured contain materials such as high-strength steel, plastic and composites, carbon fibre, magnesium alloy, and of course, aluminium alloy. Among them, although the percentage contributed by aluminium alloy in vehicle making is still low at around 8%, recent tie ups with aluminium behemoths like Alcoa and Hydro with leading automakers suggest that it will soon go up in the near future. In terms of weight, body, powertrain and chassis system together occupies almost 60% of a vehicle. Body, especially, shares more than 20% of the total weight of the vehicle. So, it remains the main target for reducing weight and a key application area for automotive...
Alcoa to supply titanium for F-35 program in addition to advanced aluminium products
Lightweight metals leader Alcoa today announced a contract to supply titanium for Lockheed Martin’s F-35 Lightning II aircraft program, also known as the Joint Strike Fighter (JSF). Under the contract, Alcoa becomes the titanium supplier for airframe structures for all three variants of the F-35 over nine years, from 2016 to 2024. At current projected build rates, the contract has an estimated value of approximately $1.1 billion. In addition to the forged titanium bulkheads, Alcoa already supplies several key, multi-material components for the F-35, including: • Multiple structural aircraft body components including the largest forged aluminium bulkheads, which Alcoa manufactures in one piece—as opposed to multi-piece assemblies • Advanced aluminium die forgings for the critical wheel and...
Bano to showcase 'revolutionary' aluminum shredder in Detroit
Italian recycling technology specialist Bano Recycling, with over 30 years of experience in producing single-shaft shredders, is coming to Detroit to present its new Premac Hydro shredder series at next month’s Aluminum USA trade show. During the last ten years Bano has developed advanced solutions for aluminum and non-ferrous metal scrap processing. Its 'revolutionary' Premac Hydro line is no exception, specifically designed to process aluminium scrap metal. This high quality machine achieves high recovery while keeping maintenance costs low. The Hi-Torque slow-speed single-shaft system ensures precise cutting and is 'inspired by customer needs'.
