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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Cheap power could attract India's Nalco to set up $3bn aluminium smelter in Oman
Indian aluminium giant National Aluminium Co Ltd (Nalco) is exploring opportunities in Oman, Iran and Indonesia to set up an aluminium smelter plant with an estimated investment of around US$3bn. The company would finalise the location for the plant after examining factors like availability of low cost power and infrastructure, T K Chand, chairman and managing director of Nalco, was quoted by the Press Trust of India as telling reporters on Saturday. The smelter unit is sought to be of 5mtpa capacity together with 150MW captive power plant, Chand said, adding, “Though Nalco is ready to go alone on the project, we are open to a joint venture if a suitable partner comes forward.” “While power is cheap in Oman and Iran, abundant coal is available at low cost in Indonesia. Port facilities...
Aluminium sinks to one-month lows ahead of China data
Aluminium slid to one month lows on Monday, September 29 on worries about upcoming data that may show weak industrial activity in top metals consumer China. Data on October 1, Thursday is likely to show that China's giant factory sector shrank for the second month in a row in September. "The market is looking for direction and probably the most likely source of that is Chinese data," said Caroline Bain, senior commodities economist at Capital Economics in London. "We've had quite a bit of stimulus already and it hasn't yet been reflected in any sort of rebound in activity. We're going to need some improvement in data before we have any rebound in prices," she added. Aluminium dropped 1.1 percent to $1,549 a tonne in official rings, also hitting the lowest in a month. "Aluminum remains...
Primary aluminium production in India likely to touch 2.4-2.5 mt
Production of primary aluminium is likely to touch 2.4 - 2.5 million tonne (mt) in 2015-16 up from the level of 2.04 mt in 2014 -15, led mainly by improved demand from transport and electrical sectors. "With increasing investment by the central government in power transmission during 2014, India has seen improved demand growth from the electrical sector, which is likely to continue through 2015," Nalco chairman and managing director T K Chand said while speaking at the company's 34th annual general meeting. Demand growth is likely to be the highest in transport, building and construction sectors, but other sectors are also expected to grow simultaneously. It is estimated that by 2020, India would double its consumption to 5 million tonne, he added. In particular, beverage cans, alloy...
Alcoa’s Value-add Company to focus on high-performance multi-material products
Alcoa, the lightweight metal leader, announced that its Board of Directors has unanimously approved a plan to separate into two independent, publicly-traded companies. The separation will launch two industry-leading, Fortune 500 companies- the Upstream Company and the innovation and technology-driven Value-Add Company. The Value-add Company will include Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. The transaction is expected to be completed in the second half of 2016. Both independent companies will attract an investor base best suited to their unique value proposition and operational and financial characteristics. Both entities will be capitalized prudently, with the Value-Add Company targeting an investment grade rating and...
Century Aluminum hit badly by severely weakened metal market
Century Aluminium is all set for large-scale cost reduction; and this includes plans of huge layoffs at the company's Hawesville, Kentucky plant location- a decision likely to affect as many as 600 employees, if not more. The layoffs, made inevitable by the highly volatile metal market condition, begins October 24. Century officials say a severely weakened metal market due to a Chinese over-capacity of aluminum and what they call “unfair trade behavior” from China is prompting the closure of the Hawesville plant. That is unless the pricing environment changes drastically. Hawesville will stop producing primary aluminium by November 1.
Nalco plans INR 5,500 crore expansion at its Damanjodi alumina refinery
Armed with two coal blocks the National Aluminium Company (Nalco) is planning to go for third phase expansion of its refinery at Damanjodi with an investment of nearly INR 5,500 crore. The Navratna PSU is waiting for the state government's consent for allocation of Pottangi mines, company CMD T K Chand said it in Bhubaneswar on Saturday. "While we have got the much-awaited and much-needed allocation of Utkal D and E Blocks, we are looking forward for consent of state government for allocation of Pottangi Mines in Koraput district so that alumina refinery project of INR 5,500 crore can immediately start," Chand said on the sidelines of the 34th annual general meeting. "Pre-project activities for the one mtpa capacity expansion work have started considering sourcing of bauxite from the...
Global aluminium foil demand to zoom over next 5 years
The growth of global demand for aluminium foil is estimated to rise by more than 4% CAGR until 2019, according to the data released by CRU International in a recently published report. The additional worldwide demand will add up to one million tons by the end of that period. The economic growth in China, which is fast becoming the leading market for production and demand, has been identified as the key growth driver. Reflecting the buoyant outlook for the industry, the Global Aluminium Foil Roller Initiative (GLAFRI) has recently welcomed new foil roller members on board: Gujarat Foils and Raviraj Foils with operations in India and UACJ Foil based in Japan and Malaysia. Otto Junker, the leading furnace manufacturer has also joined as a supplier member. Commenting on the aluminium foil...
Bahrain's Midal Cables to set up aluminium conductor unit in Odisha
Bahrain based Midal Cables will set up an aluminium conductor unit in Odisha at a cost of INR 358 crore. The project was recently cleared by the State Level Single Window Clearance Authority (SLSWCA). The facility with a production capacity of 60,000 tonne per annum (tpa) would come up at the aluminium park at Angul developed jointly by National Aluminium Company (Nalco) and state owned agency for land acquisition and industrial infrastructure development, Odisha Industrial Infrastructure Development Corporation Ltd (Idco). "The project by Midal Cables will create employment opportunities for 350 people. We are encouraging micro and small enterprises (MSEs) to set up downstream units at the park,” said a government official. The aluminium park has so far drawn 11 proposals for...
Alcoa to separate into two entities: Upstream Company to focus on five key verticals
Lightweight metals leader Alcoa announced that its Board of Directors has unanimously approved a plan to separate into two independent, publicly-traded companies, culminating Alcoa’s successful multi-year transformation. The separation will launch two industry-leading, Fortune 500 companies. The globally competitive Upstream Company will comprise five strong business units that today make up Global Primary Products - Bauxite, Alumina, Aluminium, Casting and Energy. The innovation and technology-driven Value-Add Company will include Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. The transaction is expected to be completed in the second half of 2016. After the separation, the Upstream Company, with its strong history in the...
Aditya Aluminium gets Odisha pollution watchdog's notice
The Odisha State Pollution Control Board (OSPCB) has issued a show cause notice to Aditya Aluminium, asking it why the plant should not be shut for not adhering to the pollution control measures, a board official said on Sunday. The company, which has set up an aluminium smelter plant, having capacity of .36 MTPA and a thermal power plant (5X150 Mw), has been asked to reply to the notice within 15 days, the official added. "Why consent to operate, already granted for 2015-16 in favour of your plant, shall not be revoked and closure direction shall not be issued for the above violations and appropriate legal action shall not be issued against your unit," said the notice issued to the Chief Operating Officer of Aditya Aluminium. During a surprise inspection by a team of the board, it was...
A 700,000-tpy aluminum project to settle in Yunnan
Yunnan Metallurgical Group signed an agreement with the government of Zhaotong, Yunnan, to build a 700,000-tpy aluminum project there, hexun.com reported. The project is scheduled to enter into operations in October 2017, with construction scheduled to begin in October 2015, the media added. The project has a total investment of 6 billion yuan or USD 940 million and will rely on hydropower.
China aluminum semis exports to rebound in Sept
China’s aluminum semis exports will rebound slightly in September after 6.25% year-on-year decline in August, SMM predicts. The rally will driven by the pullback in SHFE/LME aluminum price ratio and yuan’s devaluation, SMM’s aluminum research team said. Outbound shipments were just 300,000 tonnes in August, down from robust exports during H1. SMM attributes the year-on-year decline mainly to rising SHFE/LME aluminum price ratio, which curtailed exports of low- and medium-end products.
The 3rd Automotive Lightweight Procurement Symposium to focus on automotive lightweighting
The 3rd Automotive Lightweight Procurement Symposium to be focused on automotive lightweighting, supply / process chain and procurement management, will take place in Detroit from the 9th – 11th of Nov 2015. At this year North America Automotive Lightweight Procurement Symposium, delegates will have the chance to listen and interchange with executive speakers and delegates from the aluminum, magnesium, steel & composite industry. Lightweighting, supply chain and procurement management will be the main theme and localization. "Best buy country" and "Make or buy" are some of the topics to be presented. OEMs will express their needs & expectations from the supplier and technology as well as lightweighting side while Tiers will showcase their leading weight reduction solutions, joining...
Weak prices, Chinese exports might fuel capacity cut in aluminium: Nalco
Subdued prices and higher Chinese exports might curtail capacity and hinder new expansion projects in the aluminium sector globally, despite strong production levels in India and West Asia, said a top executive at National Aluminium Company (Nalco). “Global prices of aluminium have remained under pressure on account of a number of factors, including the high global inventory of the metal, concerns about the performance of the Chinese economy and appreciation in the US dollar. Prices of aluminium are generally expected to remain low in the near-term due to subdued global demand for the metal as well as uncertain macro-economic environment prevailing globally,” Nalco's Chairman and Managing Director T K Chand said here in his address to shareholders at the company's 34th annual general...
Fall in aluminium price pushing Tiwai Pt into red: analyst
A startling slump in the price of aluminium on global markets is more than offsetting a 20 per cent fall in the New Zealand dollar against the greenback, pushing the Tiwai Pt aluminium smelter into negative cashflow, according to estimates by Wellington investment firm Woodward Partners. Woodward senior analyst John Kidd has begun producing a monthly "Tiwai-o-meter" to track the smelter's commercial viability as power companies and major energy users assess the outlook for electricity supply towards the end of the decade, following the announced removal of more than 1000 megawatts of coal and gas-fired generation between now and 2018. Tiwai Pt, near Bluff, uses one-seventh of all electricity generated in New Zealand, has forced reductions in the price it pays for electricity in response...
Mining Act review to determine royalty shares of landowners in Fiji
Landowners of Fiji's first bauxite mine at Nawailevu in Bua are yet to get their fair share of royalty because a formula to determine it will be part of the review of the Mining Act. And until that happens, royalties will be held in trust by Government. This was clarified by Lands Minister Mereseini Vuniwaqa in Parliament on Friday. Last Monday, Opposition parliamentarian Mosese Bulitavo told Parliament that Nawailevu landowners managed to buy only two twin cabs, set up a village canteen, improve their homes, invest in Fijian Holdings Ltd and also a $600,000 fair share of royalty for the future generation compared with the landowners of Papua New Guinea western and southerland highland province. Mr Bulitavo said the PNG landowners were shareholders of PNG's mineral resource development...
ThyssenKrupp looks to source aluminium, zinc from India
Germany-based diversified industrial group ThyssenKrupp plans to set up a resource office in India for sourcing of metals such as aluminium and zinc for its projects related to aerospace and defence among others spread across the globe. The group has 1,55,000 employees across 80 countries with a turnover of around $45 billion. “Our plan is to focus on sourcing materials, which India is highly resourceful in and which have not been previously sourced by us, like aluminium, zinc and ore. We are also exploring options to form a resource office that will look more intensively into opportunities like these,” ThyssenKrupp India CEO Michael Thiemann told PTI. India, which is its third largest market in Asia Pacific, has sales of about ?3,300-3,700 crore and a headcount of 5,700. It is present in...
YTD Aluminum exports from the US and Canada slumped: Aluminum Association
The Aluminum exports from the US and Canada declined sharply by 23.5% during the initial seven-month period of the year. The exports totaled 1.671 billion lb during this period. Meantime, imports surged higher by 19.3% year-on-year to 3.563 million lb. The above figures are in accordance with the latest trade data released by the Aluminum Association. As per trade data, the aluminum demand in the US and Canada were up by 2.4% during Jan-July ’15. The demand, inclusive of domestic producer shipments plus imports, totaled 15.158 billion. The demand for semi-fabricated mill products were up by 7.2% over the previous year to total 10.927 billion lb. Meantime, apparent aluminum consumption during the seven-month period totaled 13.487 billion lb, up by 6.9% when matched with the previous year....
