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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Hindalco Industries trades higher on the bourses
Hindalco Industries is currently trading at INR 73.35, up by 0.20 points or 0.27% from its previous closing of INR 73.15 on the BSE. The scrip opened at INR 72.50 and has touched a high and low of INR 73.65 and Rs. 71.70 respectively. So far 365860 shares were traded on the counter. The BSE group 'A' stock of face value INR 1 has touched a 52 week high of INR 176.40 on 27-Nov-2014 and a 52 week low of INR 71.30 on 07-Sep-2015. Last one week high and low of the scrip stood at INR 78.95 and INR 71.70 respectively. The current market cap of the company is INR 14991.80 crore. The promoters holding in the company stood at 36.99% while Institutions and Non-Institutions held 41.16% and 14.18% respectively. Hindalco Industries’ subsidiary Aditya Birla Minerals has signed a binding agreement with...
Ford introduces aluminum 2017 Super Duty pickup
Ford is doubling down on the use of aluminum-bodied vehicles with the unveiling of the 2017 F-Series Super Duty pickup at the State Fair of Texas. The F-Series Super Duty lineup of pickups and chassis cabs is taking the same path as the F-150 in switching from a steel body to one made of aluminum. The frame continues to be made of high-strength steel. "It is the toughest, most capable Super Duty we've ever done," said Raj Nair, head of global product development. Chevy and GMC showcase 2016 pickups at Texas State Fair Ford took a risk when it converted the body and bed of the popular F-150 to aluminum, which required taking two assembly plants down for months and which dented sales in the final months of 2014 and well into this year as inventories of the new model slowly built up. But...
Top African beverage can producer targets 100% market share
The Johannesburg-based Nampak Ltd., Africa’s largest maker of beverage cans, said it is considering an expansion to a drinks container plant in Angola as part of a program to generate more income outside its domestic market. In its new plan, the company is targeting 100 percent market share in Angola as the country’s buyers seek a local manufacturer in response to government policies for an import duty on the industry. Nampak supplies about 56 percent of the market in the southwest African nation, with imports accounting for the balance, Chief Executive Officer Andre de Ruyter told reporters. The Johannesburg-based company will probably see that market share increase as customers seek to avoid the looming import duty and source cans locally, Ruyter said. Nampak, which entered Angola...
US industry expresses concerns over mounting Chinese aluminum imports
The Aluminum Association has decided to approach the World Customs Organization (WCO) to seek a permanent solution to the problem of rising aluminum product imports from China. Further, the industry body has urged the US government to conduct bilateral talks with Chinese authorities in an attempt to reduce the flow of aluminum products from that country. Meantime, the association clarified that it has no plans to file trade cases as it believes in free and open trade between the two nations. According to Chuck Johnson, vice president of policy at the Aluminum Association, the US domestic aluminum industry is extremely concerned over the duty policy changes and export subsidies implemented by Chinese authorities, which ultimately has led to uncontrolled flow of goods into the US. Earlier...
LME to launch an improved metal-tracking system
The London Metal Exchange (LME) is launching an electronic system to better track material stored outside its exchange warehouses in response to a financing fraud in China that roiled banks and trading. The new system, called LME Shield, will launch in December this year, and will allow the exchange to provide electronic receipts for metal stored outside its system, LME head of business development Matt Chamberlain said during a presentation at Metal Bulletin's International Aluminum Conference in Vancouver. Chamberlain had previously told Reuters that the world's oldest and biggest metals market was considering expanding its electronic LMESword system, which proves the origin and title to LME-warranted metal, beyond exchange stock after receiving requests from several banks that finance...
China demand slowdown hurts Noranda Aluminium, stock plunges
Noranda Aluminum Holding Corporation was one of the biggest decliners in trade yesterday September 23. The stock plummeted by close to 14 percent on the back of 3 times the daily average volumes which is a bearish signal. The sell off on the back of above average volumes is a clear indication of the shift of momentum towards the sell side. The sell off in the stock was on the back of the sell off seen in the commodity markets as the company shares a direct relationship with aluminium prices and therefore any weakness in the commodity markets is seen as a huge negative for the stock in the near term. Traders on the street believe the stock could head to levels of $1.80 in the near term. The total market capitalization for the company is at $22.82 million. Noranda Aluminum Holding has been...
Altech Chemicals signs High Purity Alumina sales agreement with Mitsubishi
Altech Chemicals Limited has signed a sales and distribution agreement with Mitsubishi Corporation's Australian subsidiary, Mitsubishi Australia Ltd for its proposed high purity alumina (HPA) product. The Agreement appoints Mitsubishi as the exclusive seller and distributor of Altech's final HPA product to the Japanese market. Mitsubishi is Japan's largest general trading company with more than 200 bases of operations in approximately 90 countries worldwide. Mitsubishi employs a multinational workforce of approximately 70,000 people across some 600 companies. Mitsubishi has been engaged in long-term business with customers from around the world in virtually every industry, including energy, metals, machinery, chemicals, food and general merchandise. In 2014, consumption of HPA in Japan...
Metro Mining to seize benefits of upgraded mining approvals
Metro Mining says a decision by the Queensland Department of Environment and Heritage Protections (DEHP) requiring a full Environmental Impact Statement (EIS) for its Bauxite Hills Project is a setback but will provide considerable side benefits. Metro Mining had submitted a detailed application for a Site Specific Environment Authority (EA). Company CEO Simon Finnis says whilst the DEHP decision will delay commencement of planned mining operations by at least six months, the company will use the time to maximise the opportunities that accompany the EIS process. These include: • Removal of the 2 million tonnes per annum production limit – potentially allowing production to be more than doubled; • Provision for the ability to increase the scale of operations to improve market significance...
Constellium named gold recipient of EcoVadis CSR Rating Award
Constellium N. V. has been awarded Gold level recognition by EcoVadis, an independent rating agency which specializes in sustainable development and performance monitoring. Constellium achieved the highest level of recognition for its results in corporate social responsibility practices in the environment, social, ethics, and supply chain sectors. Constellium ranked in the top two percent of suppliers assessed by EcoVadis in all categories. In the environmental section, Constellium joined the top one percent of performers in the “basic precious and other non-ferrous metals” group. The EcoVadis methodology is based on international sustainable development standards and is overseen by a scientific committee of experts to ensure reliable third-party assessment. “This accolade is a testament...
Novelis to increase number of scrap metal suppliers within the UK
Novelis, the frontrunner in aluminium recycling, is seeking expansion in its global presence. It is considering strategic tie-ups with more number of scrap metal suppliers from the UK. The recycler had been working on a closed loop creation encompassing its automotive customers such as Jaguar and Land Rover. Novelis had started the task following a £6m investment in its Warrington recycling facility. It was completed last year. Novelis has already made an investment of half a billion dollars during the past few years in expansion. The projects included the launch of the world’s largest aluminium recycling plant in Nachterstedt, Germany. The £160m investment in Germany allowed the firm to take scrap from within Europe, allowing its recycling plant in UK to focus essentially on domestic...
Aludium installing new recycling technology in Amorebieta
With operations in Spain and France, Aludium is now installing new recycling technology in Amorebieta that, by the end of 2016, will increase the production volume of this plant substantially. The new technology will melt down and recycle lacquered aluminum and aluminum cans, profiles, and slag, which have been discarded up till now. The modern rotary furnace now being installed can process up to 40 tons per casting and will ultimately produce more than 50,000 tons of aluminum each year. Together with the accompanying fume-treatment plant with the latest technology, it will easily meet the highest emission standards set by the European authorities. INSERTEC was chosen for the project. Located in the Basque Country since 1980, INSERTEC has developed its core business in the design and...
Redwave updates on its next-generation sorting system for metal recycling
Redwave, the premiere technology solutions provider for the recycling and mining industry, has developed a next-generation sorting system for the metal and aluminium recycling industry. The sorting system Redwave XRF was initially used in the field of glass sorting, for the separation of heat-resistant and leaded glass from the waste glass cullet. The company says soon it became apparent that the fields of application go far beyond the glass sector. The use of this technology together with the development of a new machine design set new standards in the metal sorting, in particular the sorting of nonferrous metals. Using this technology it is possible to separate also material which, up to now, was considered as not sortable, Redwave says. Besides the high throughput and purity, the...
China aluminum inventory to continue growing on capacity expansions, SMM Says
China’s aluminum stocks will grow further in October after 320,000 tonne year-on-year surge in September, SMM predicts. New capacity will come online at faster pace heading into October, the major contributor to inventory growth, SMM’s aluminum research team said. Poor downstream consumption will be another driver. The surge in September was because new capacity overshadowed production cuts.
Aluminum demand to rise to 78 mt by 2025 -Rio Tinto
Global demand for aluminum will rise by 24 million tonnes to 78 million tonnes annually by 2025, said Alfredo Barrios, Rio Tinto's Chief Executive for aluminum, at an industry conference in Vancouver on September 22, Tuesday, though market fundamentals will continue to force further capacity closures. "Demand for our products is clearly healthy. The issue we face is excessive supply," said Barrios adding that the aluminum market should return to balance in the next five years.
Non-regulated power players in India oppose e-auction of coal linkages
Players from the non-regulated sectors in India including cement, iron and steel, sponge iron, aluminium and fertiilisers have objected to the Centre's move to introduce auction for coal linkages. They have appealed to the Centre not to shift in haste to Supplier Controlled Ascending Market Clearing Auction methodology from the present system of coal allocation through Standing Linkage Committee. As per the Supplier Controlled Ascending Market Clearing Auction methodology, the prices are increased till demand-supply equilibrium is established. Coal India Ltd (CIL) is expected to open a separate e-auction window exclusively for non-regulated power sectors with a quantity of 4 million tonne. An inter-ministerial committee has sought suggestions and objections on the new method as it...
Synergy to sell surplus coal to Worsley alumina refinery
West Australian Government-owned electricity generator Synergy has reached an agreement to sell surplus coal to the operators of a South West alumina refinery plagued by supply issues. The deal between Synergy and the operators of the Worsley alumina refinery, owned by South 32, was dubbed a short-term arrangement to plug a gap in the facility's supply. The Worsley refinery, east of Bunbury, is typically supplied by Griffin Coal but the cash-strapped Collie producer has been struggling to maintain that while it battles significant financial issues. While Energy Minister Mike Nahan confirmed the agreement in State Parliament yesterday, he said it was too early to say the exact volume of coal that would be involved. He also would not confirm the price the coal would be sold at, saying it...
Metal service center activity weakened through August
U.S. service centers’ steel and aluminum shipments declined during August, and though Canadian centers’ deliveries increased slightly, the year-to-year figures showed shipments declining even more significantly. Inventory positions declined only slightly for both metals in the United States and Canada. The results are drawn from the Metals Service Center Institute’s Monthly Activity Report, which records results for North American processors and distributors of steel and aluminum products. Service center shipments represent a substantial volume of the metals consumed by machine shops and fabricators, and the activities at those operations are a reflection of industrial activity in the North America. Aluminum shipments by U.S. service centers fell 4.7% to 131,800 tons from July to August,...
Sapa acquires aluminum casting plant in The Dalles, Oregon
Portland Oregon – Sapa, the world leader in aluminum solutions, announced today it has completed an asset purchase agreement with Northwest Aluminum Specialties, Inc. to acquire its casting plant in The Dalles, Oregon. This facility brings Sapa's North American cast house network to a total of nine locations and provides additional strength to Sapa Extrusion's West region, including the Portland manufacturing plant. Under the terms of the agreement, Sapa has purchased the physical assets of the Northwest Aluminum Specialties casting facility including: plant, property, equipment, and inventory. The company looks to retain the majority of the more than 50 employees employed at the plant. "This asset acquisition provides us with vertical integration for our extrusion pressesand expands our...
