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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Aluminium up by 0.3% as spot demand hardens
Aluminium prices edged up by 0.28% to INR 107.25 per kg in futures trade today as participants enlarged positions amid a firming trend overseas. Besides, strong demand in spot markets influenced metal prices. At Multi Commodity Exchange, aluminium for delivery in the current month inched up 30 paise, or 0.28%, to INR 107.25 per kg in a business turnover of 212 lots. Metal for delivery in October contracts also rose by a similar margin to trade at INR 108 per kg in 20 lots. Traders said that apart from increased domestic demand, a firming global trend despite concern over an economic slowdown in China, the world's largest consumer, helped aluminium futures trade higher.
China CWE's proposed $2bn dam in Guinea to boost expansion of bauxite processing
Guinea is in talks with China International Water & Electric Corp. to build a $2 billion hydro-power dam that would almost double the West African country’s energy output, providing new capacity for the expansion of bauxite processing, said Lansana Fofana, an energy ministry official. The 550-megawatt Souapiti dam would be CWE’s second project in the country, after it completed the 240-megawatt Kaleta dam about 120 kilometers (75 miles) north of the capital, Conakry, in July. The Kaleta project tripled Guinea’s electricity production and boosted efforts to expand grid access to more of the country’s 12 million citizens. “The idea is to feed the mining industry,” said Fofana, the head of the two hydro-power projects, in an interview this month during an inspection of the 1,545-meter...
AluMag to organize 3rd Automotive Lightweight Procurement Symposium in Detroit from Nov 9-11
AluMag, “The Market Developer” for the world’s premiere businesses, announced the 3rd North America Automotive Lightweight Procurement Symposium will be held from 9th – 11th of November 2015 at the Cobo Center in Detroit, USA. This year, the international symposium will be focused on automotive lightweighting, supply / process chain and procurement management. Procurement executives who are part of the lightweight supply chain and engineering as well as technical sales managers seeking an understanding of the synergy of cost-/ weight reduction programs are expected to grace the event in numbers. Noted speakers from the aluminium, magnesium, steel & composite industry will deliver lectures on topics related to lightweight supply chain and engineering. OEMs will express their needs &...
LME aluminium faces resistance at $1,644
LME aluminium faces a resistance at $1,644 per tonne, a break above which will lead to a gain to the next resistance at $1,660. These two resistances are identified respectively as the 38.2 percent and the 50 percent Fibonacci projection levels of an upward wave c, the third wave of a three-wave cycle that developed from the Aug. 24 low of $1,506. The longer the wave c hovers below $1,644, the more likely it will retrace to the support at $1,624, the 23.6 percent level. A rise to $1,648 may signal a break above $1,644.
2016 Hyundai Sonata update unveiled at Frankfurt show
Hyundai has officially unveiled the mildly updated 2016 Sonata sedan at the Frankfurt Motor Show, featuring a revised exterior design and more standard equipment. The 2016 Sonata continues to showcase Hyundai’s latest styling language, but at the front is a more aggressive bumper bar layout for the Sport variant. A set of updated 17-inch alloy wheels have also been added. At least three different powertrain options will be available, internationally, spanning from a 1.6-litre turbo producing 130kW and 265Nm, to a 2.4-litre naturally aspirated four-cylinder producing 136kW and 240Nm, to a range-topping 2.0-litre turbo producing 180kW and 350Nm. The 2.4 and 2.0T come matched to a six-speed automatic, while the 1.6T uses a seven-speed dual-clutch unit. Underneath the new Sonata, the...
Alcoa to pare down remaining Suralco Refining capacity
Lightweight metals leader Alcoa announced the curtailment of Suralco’s remaining 887,000 metric tons per year of alumina refining capacity as discussions continue with the Government of Suriname on preserving the country’s bauxite and refining industry. The refinery is scheduled to be idled by November 30, 2015. The curtailment and ongoing discussions are aligned with Alcoa’s strategy to create a globally competitive commodity business. Discussions between Alcoa and the Government of Suriname began in October 2014 to reach a joint solution for Suralco that has faced expiring bauxite reserves and lacks a long-term energy solution. “Suralco’s ongoing energy challenges and limited bauxite supply, combined with unfavorable market conditions, mean it is no longer possible to continue...
NALCO's bauxite mine bags Pollution Control Excellence Award
The bauxite mine of Navratna PSU National Aluminium Company Ltd (NALCO), situated at Panchpatmali Hill in Odisha's Koraput district, has bagged the prestigious Pollution Control Excellence Award -2015. The award, instituted by State Pollution Control Board, Odisha (OSPCB) was conferred on NALCO in recognition of its "effective pollution control measures and sound environment management practices" at bauxite mines. On behalf of the company, Sharanan Choudhuri, GM (O&M) - Mines, received the award from Odisha Chief Secretary G C Pati at the 32nd Foundation Day Celebrations of OSPCB held here today, a company release said. Appreciating the concerted efforts of the team of Panchpatmali Mines, NALCO's CMD T.K. Chand conveyed hearty congratulations to the company collective for the accolade....
Indian aluminium scrap prices stayed stable in the week ended Sept 04
Indian containerized shredded scrap import prices stayed flat in the week ended September 04, while Indian aluminium scrap prices on Scrap Register Price Index remained almost stable. According to TSI, containerized shredded index for Indian imports remained flat at $241 a ton CFR Nhava Sheva port. Imported volumes were once again light as participants held off from buying amidst volatility in finished steel prices and currency FX. As a result of the Rupee depreciating, offers into the country were lowered slightly, but buyers await to see what sort of volumes of billet start arriving from China. For the most part, participants felt prices would slide in the coming weeks, in line with international benchmarks. As per the Scrap Register Price Index, scrap prices for aluminium accessories,...
Kitimat smelter expansion to be reviewed
Unifor, Canada’s largest private sector union, has successfully argued before the BC Supreme Court that Rio Tinto’s Kitimat aluminum smelter must reviewed by the Environmental Assessment Board (EAB). The project, to be built without a sulphur dioxide scrubber, had been approved by the province’s ministry of transportation. Without a scrubber, the sulphur dioxide emissions would increase to 42 t/d from 27 t/d, according to Unifor. The decision to approve the smelter without scrubbers will now be sent back to the EAB. Rio Tinto is currently in the midst of a US$4.8 billion modernization and expansion to increase Kitimat capacity by 48%, to 420,000 t/y from 282,000 t/y. Rio’s AP™ technology will be installed as it has been at Alma and Arvida, QC, smelter. The company says that the new...
Aluminium expected to trade higher in mid-September
Base metals nickel and aluminium are likely to experience a price hike by the middle of September due to various positive global cues, observed a market research group. The white metal will get a price boost on production upgrade from a giant Russian bauxite producer, the analysts forecast. “ We expect aluminium prices to trade higher in September 15 as supply glut concerns will likely get a breather as Russia’s Rusal, the world’s top aluminium producer, is considering capacity cuts of 200,000 tonnes a year this year,” the group added. Earlier this year, Rusal deputy chief executive Oleg Mukhamedshin had said that bauxite producers across the globe are forced to either cut production or completely shut operations down due to the losses obtained from weak global prices. “Chinese smelters...
Sapa restructures business areas in Asia
As part of its strategy to profitably grow in Asia and to serve its customers in this region even better, Sapa has decided to reorganize its business and will include its extrusion operations in Asia with its global aluminium tubing business. As a consequence, Salvador Biosca, executive vice president and head of Sapa’s Precision Tubing business area, will take over the responsibility also for the extrusion business in Asia. “By putting together our precision tubing and extrusion operations in Asia, we are focusing our efforts, and we believe this will be a very positive change for our operations in this important region,” says Biosca. He will take over responsibility for the Extrusion Asia units as of October 1, 2015. Over the last few years, Sapa has established strong positions in...
Ford, Alcoa collaborate on more formable and design-friendly next-generation aluminum alloys
Ford Motor Company and Alcoa Inc. are collaborating to produce next-generation automotive aluminum alloys that are more formable and design-friendly. Ford will use Alcoa’s Micromill® material in multiple components on the 2016 F-150 - becoming the first automaker to use the advanced automotive aluminum commercially. The companies entered into a joint development agreement to collaborate on next-generation aluminum alloys for automotive parts using Micromill™ technology. ‘‘Light-weighting enables us to design vehicles with great customer attributes – like the F-150, which can tow more, haul more, accelerate quicker and stop faster than the previous F-150, and is more fuel-efficient than ever,” said Raj Nair, Ford group vice president and chief technical officer, Global Product Development....
Supply glut not China slowdown is behind tumbling aluminum prices, says Rusal’s Deputy CEO
Some have blamed China’s economic slowdown for slump in global aluminum prices , which have fallen to the lowest since July 2009. However, that is most unlikely, opined Rusal’s Deputy CEO Oleg Mukhamedshin. Mukhamedshi argued that supply glut is the true culprit behind lower aluminum prices. In fact, demand for the light metal remains strong, Oleg Mukhamedshin said in an interview with finance.qq.com. The biggest issue facing the industry is the entry of new market players, which exacerbates already oversupplied market, Oleg Mukhamedshin added.
East Hope to put online huge integrated aluminum project in 2016
East Hope Group will bring online its vertically-integrated aluminum project in Lingshi County, Shanxi Province, next year. The project covers 3 million-tpy aluminum hydroxide , 300,000-tpy primary aluminum, 300,000-tpy carbon, 300,000-tpy aluminum semis, etc., the media said. Shanxi is rich in bauxite , coal and limestone, giving easy access to East Hope’s project.
Balco begins process to shut Korba's aluminium rolling business
Balco, part of Anil Agarwal-led Vedanta Ltd, has started the procedure to shut down its rolling business in Chhattisgarh - a move that will see 1,000 people losing jobs. Last month, the aluminium manufacturer had announced its decision to shut down the rolling mill in Korba (Chhattisgarh) on account of "steep fall" in the prices of the metal besides dumping from China and falling margins. "Balco has begun the official procedure to close down its Sheet Rolling Division and Foundry at Korba. The company has issued the information to the Secretary, Labour Ministry, Government of Chhattisgarh as well as the BSE and NSE," the company said in a statement. Mining conglomerate Vedanta Ltd, earlier Sesa Sterlite, holds 51 per cent stake in Bharat Aluminium Company (Balco), while the remaining is...
Indonesian president visits Dubai seaport and aluminum processing plant
President of Indonesia, Joko Widodo (Jokowi) visited a container seaport and an aluminum processing plant in Dubai during his recent visit to the Emirates. The president closely evaluated the seaports management, which is run in an efficient and timely manner. "We have prepared the guidelines for cooperation for the dry port in Surabaya, and we will also develop them in Tanjung Api-api. I have ordered a two-week survey, and in Jakarta, we have decided to implement it immediately," Jokowi noted while visiting Dubai Port World. The head of state thereafter visited an aluminum processing plant to explore cooperation in aluminum processing in Asahan. "Aluminum in Asahan is also similar. There is also silica sand and nickel that we could process as good as here. Between two and three weeks,...
Chalco and Shenhua Group to build 4 million-tpy alumina JV in Hebei
Chalco, China’s aluminum giant, recently inked an agreement with Shenhua Group to jointly come up with an alumina project in Hebei Province of North China. The project will be build in partnership with the the provincial government. The three parties have agreed to build the alumina project at Huanghua port in Cangzhou city. The joint venture, with total investment at 10 billion yuan, will have a capacity of 4 million tonnes of alumina per annum. The project will source its main raw material- bauxite ore imported from the Port of Huanghua and sell its product primarily to central and west China, such as Inner Mongolia and Xinjiang. The plant would boost demand for bauxite in China, which is already the world's biggest buyer of the ore. The first phase of the 10 billion yuan ($1.6 billion)...
Bauxite mining in Karlapat area to save Lanjigarh refinery faces opposition
Vedanta’s doomed Lanjigarh alumina refinery which has been facing severe bauxite ore shortage has little hope of survival as the efforts to mine bauxite from the proposed Karlapat area in Odisha’s Kalahandi district face opposition from tribal organizations like Lok Sangram Manch (LSM) and Niyamgiri Suraksha Samity (NSS). Carrying out refining operations in Lanjigarh facility has always been challenging for Vedanta as the refinery has to depend on bauxite ore procured from outside the state. Earlier in 2013, it was once planned that bauxite mined from the Niyamgiri Hills would feed the refinery; but due to protests of the local tribals, the plan was dumped. Following it, the unit has been running at losses for a while. However, with the global prices of primary aluminium declining sharply...
