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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Alstom to supply key equipment to DUBAL’s aluminium smelter
Alstom has signed a contract, worth approximately €36 million, with Emirates Global Aluminium (EGA) to supply equipment on a turnkey basis for Potlines 1 & 3 at EGA’s core operating subsidiary, Dubai Aluminium (“DUBAL”, also known as EGA Jebel Ali), in Dubai (United Arab Emirates). The project will be executed from Alstom’s competence centers in Europe and the Middle East. Continuous site activities will commence from June 2015, with project completion scheduled for March 2018. As part of this contract, Alstom will improve the performance of four Gas Treatment Centers (GTCs) at the DUBAL aluminium smelter by adding compartments and supplying a complete new pot feed system (Alfeed) for the transportation of alumina from the GTCs to 520 new D18+ electrolysis cells. The new cells are the...
Aluminium futures weaken on global cues
LME aluminium may seek a support in a zone of $1,611-$1,618 per tonne, before rising again. The zone has been formed by the 150 percent and the 161.8 percent Fibonacci projection levels of an uptrend from the Aug. 26 low of $1,525.50, based on the rise from the Aug. 24 low of $1,506 to the Aug. 25 high of $1,563. A trendline from $1,525.50 will provide a support in the zone as well. The uptrend may extend to $1,686 eventually, as revealed by a Fibonacci retracement analysis on the fall from the May 6 high of $1,977 to of $1,506. Amid weak global cues, aluminium prices in Indian market edged lower by 0.14 per cent to INR 107.90 per kg in futures trade yesterday after traders reduced their exposure. Besides, subdued demand in the domestic spot market weighed. At Multi Commodity Exchange...
Vedanta Aluminium goes on workforce reduction, cost cuts
Mining giant Vedanta Resources has resorted to "aggressive cost reduction" and "workforce reduction" in its aluminium segment amid subdued and volatile market conditions globally.The Anil Agarwal-led mining conglomerate said sharp rise in Chinese exports has led to a short-term market saturation and the cost of the metal in global market suggests that over 50 per cent of the world capacity is at loss, based on current prices at the London Metal Exchange (LME) plus premium. Vedanta is taking bold decisions in the current low price environment. A disciplined approach towards smelter ramp-up in light of current market volatility, it said in a statement. The ramp up of the first line of the 312 kilo tonne capacity at Jharsuguda will commence in the second quarter (July-September) this fiscal,...
Aluminum Association opposes CNIA call for export tax removal on primary aluminum
The Aluminum Association, which represents producers and suppliers to the North American aluminum industry, expressed strong concern about a recent call from the Chinese Non-Ferrous Metals Industry Association for the removal of a long-standing 15 percent tax on primary aluminum exported from China. The Chinese government, which relies heavily on imported bauxite, has long applied export taxes on primary aluminum as part of a broader strategy to discourage exports of energy-intensive products and emphasize sustainable, quality growth. The unilateral removal of these taxes could have unforeseen impacts on the balance of trade and the global aluminum market. In the United States, domestic primary aluminum production is an essential element to American manufacturing. This segment could come...
JW Aluminum issues 2015 second quarter results
JW Aluminum Company posted its 2015 quarterly report for the three months ended July 4 on September 2, Wednesday. The quarterly report is being furnished pursuant to the Indenture governing JW Aluminum’s Senior Secured Notes due 2017. The quarterly report will be made available to holders and beneficial owners of the Notes, qualified prospective investors in the Notes, and certain security analysts and market makers. JW Aluminum will post all of its annual reports, quarterly reports and current reports that are required to be delivered pursuant to the Indenture governing the Notes on JW Aluminum’s secure investor website maintained by Intralinks. JW Aluminum’s management will host an investor conference call to discuss the 2015 second quarter financial results on Friday, September 11....
Odisha locals extend support to Vedanta's Lanjigarh refinery
A delegation of project affected people of Vedanta from the region met Mr. Abhijit Pati, CEO Vedanta Aluminium and urged him to continue with operations at Lanjigarh and to explore all possible options to avoid closure of the refinery as it will result in catastrophic consequences for the region. They have presented him with a petition on the same during his visit to Lanjigarh yesterday on 9th September. Referring to the decision of closing down the plant, the petitioners expressed their concern over the future of ongoing CSR projects. The locals also said that closure of the plant will severely affect livelihoods of more than ten thousand workers of the region and drag the region back to the dark old days of poverty and ill- health. They also assured to extend all possible cooperation to...
Orbite ships first 5N+ high purity alumina samples
Orbite Technologies Inc. announced shipment of its new samples of high purity alumina ("HPA") to prospective customers. The company had previously shipped 4N8 HPA samples to prospective customers. Feedback on purity and chemical composition of samples was positive and these prospective customers had indicated their desire to test HPA that is more representative of full-scale, commercial production, notably relative to mechanical properties. Orbite subsequently modified its existing calcination equipment and process to mimic more closely the new permanent setup. These new samples produced at Cap-Chat are more representative of the Company's intended final products. Purity levels achieved were up to 5N5 (99.9995% purity), which the Company will refer to as 5N+ going forward. These samples...
Orbite declares intention to purchase outstanding 2012 debentures
Orbite Technologies Inc. announced its intent to purchase all outstanding 8% convertible secured debentures issued on December 13, 2012 as per the terms of the indenture of that date. The debentures, the outstanding principal of which amounts to $25M, will be purchased for a price of $1,000 for each $1,000 of outstanding principal amount plus unpaid accrued interest. "The redemption of the debentures will increase cash available for operations by $2.0 million on an annual basis due to a reduction in interest payments," stated Jacques Bedard, Orbite's CFO. Additionally, the 2012 and 2013 refundable investment tax credits received, against which the debentures were collateralized, exceed the $25M of the principal amount of outstanding debentures by $1.0 million, and will be used against the...
MetalX acquires aluminum toll processing firm
MetalX, Waterloo, Indiana, has announced it has completed the acquisition of the assets and business of Metal Shred Industries LLC (MSI), an aluminum scrap toll processor located in Kendallville, Indiana. The MSI name will be retired and the facility will be identified as MetalX effective immediately. MSI, founded in 2006 as an affiliate of Metropolitan Alloys, shreds aluminum scrap on a toll basis for a variety of customers in the aluminum sector. It currently processes nearly 10,000 tons of aluminum annually. In a press release announcing the acquisition, MetalX says it intends to maintain MSI’s current toll processing relationships and volumes and also plans to expand the scope of operations to include open market purchases. Over the next several months, MetalX estimates that annual...
Century announces curtailment of one potline at Hawesville, KY Smelter
Century Aluminum of Kentucky, a wholly-owned subsidiary of Century Aluminum Company, announced the orderly curtailment of one potline at its Hawesville, Kentucky aluminium smelter, effective immediately. Following the curtailment, Hawesville's primary aluminium production will be about 60% of capacity. The plant was operating at approximately 80% capacity prior to the curtailment. Century Aluminum of Kentucky previously issued a notice of its intent to curtail its plant operations in their entirety beginning on October 24, 2015, unless the current pricing environment substantially changes, and such notice remains in effect. Chicago, Illinois based Century Aluminum owns primary aluminium capacity in the United States and Iceland.
Wainunu in Bua opens doors to bauxite mining
The vanua of Wainunu in Bua has agreed to bauxite mining. However, it has made its stand clear that proper preliminary work needs to be done first including an environment impact assessment report. Tui Wainunu Ratu Orisi Baleitavea confirmed the bose vanua of Wainunu (traditional leaders meeting) held in Daria Village last week agreed to open doors to bauxite company Aurum Exploration (Fiji) Ltd. "We will not have bauxite mining in our district anytime soon but at a later stage after all preliminary works are carried out properly in an accountable and transparent manner," he said. "Although we have agreed, we are seriously considering the impact it will have on the environment especially the rivers and streams in our district. There also needs to be a sustainable plan for the surrounding...
Global demand and recession affect Fiji bauxite exports
Fiji has exported $48 million worth of bauxite so far from the shores of Bua in the Northern Division. But the drop in global demand has affected export and slowed work progress at the mines this year. Aurum Exploration (Fiji) Ltd executive Derek Qiu confirmed although works continued, operations were not the same during peak period. He said the company had exported 1.2 million tonnes of bauxite since mining started in Bua. "We may just have two shipments this year because of the global market situation. The global demand is less but work at the Dreketi mine is progressing," he said. On the number of bauxite shipments expected from Dreketi, Mr Qiu said, that was yet to be determined. He did not either elaborate on the tonnage of bauxite stockpiled at the mine site. However, in July, he...
IFC to lend €15m to Belarusian Alutech
The International Finance Corporation (IFC, part of the World Bank group) will lend €15 million to the group of companies Alutech, the largest privately owned manufacturer of aluminum sections in Belarus, told IFC representatives. The IFC said that the money will be granted to help bolster and diversify the Belarusian company Alutech and stimulate the growth of the private sector. The IFC's long-term loan will substitute the company's short-term financial debt. It will allow Alutech to reinforce the structure of the capital and help continue increasing export and diversifying it geographically. Carsten Mueller, the IFC's director for investments in production sector, services, and agribusiness in Europe, the Middle East and North Africa, noted that investments in Alutech represent part of...
Alicon Castalloy acquires casting business of Atlas Castalloy
Alicon Castalloy, one of the leading manufacturers of aluminium alloy castings, has acquired the castings business of Atlas Castalloy. The acquisition includes transfer of plant and machinery against issue of equity shares to the existing shareholders of Atlas Castalloy. The acquisition has been completed through an all-share deal wherein existing shareholders of Atlas have been issued 1.26 million equity shares of Alicon. Atlas Castalloy, manufactures aluminium castings at its production facility at Chinchwad, Pune with a capacity of 6000 million tonnes per annum, generated revenue of INR 1.37 billion during FY 2014-15. Vimal Gupta, CFO, Alicon Group, said "The acquisition will enable the company to achieve economies of scale with additional production capacities, optimal utilization of...
Alucast secures coveted automotive quality accreditation
Alucast, which is a specialist supplier of sand, gravity and pressure castings, has secured TS16949, a prestigious automotive quality accreditation, as part of its continuous improvement drive and believes this latest development will pave the way for 33 per cent growth between now and 2018. Boosted by the industry-specific approval, the company is expecting to win a number of new orders, taking turnover from its current £7m level to £10.4m in three years, potentially creating 25 new jobs in the process. “We’ve always offered outstanding manufacturing standards to our global client base, but in order to win more work with tier 1 and car makers we had to secure TS16949. It’s fast becoming a pre-requisite on tenders,” explained Martin Haynes, technical manager at Alucast. “It is a quick...
Hindalco said to refinance INR 14,700 crore of loans
Hindalco Industries Ltd, the Indian aluminium producer backed by billionaire Kumar Mangalam Birla, refinanced about INR14,700 crore ($2.2 billion) of debt. Shares extended gains. The Mumbai-based company got the average maturity of its local-currency project loans extended by 10 years, two of the people said, asking not to be identified as the details are private. Under the revamp deal, the metal maker needs to pay 6% of its debt in the first five years, versus 35% originally, one of them said. Hindalco, whose debt more than doubled to INR 29,000 crore in the four years through March, is battling mounting costs amid a slump in aluminium prices. Interest costs surged fourfold in the two years through June while the light-weight metal has declined 21% on the London Metal Exchange in the...
Vedanta smelter bags national award in energy efficiency
The aluminium smelter unit of Vedanta Limited at Jharsuguda has been bestowed the coveted ‘Excellent Energy Efficient Unit’ award in the ‘16th National Award for Excellence in Energy Management’ conducted by Confederation of Indian Industries (CII). This is the third successive year that Vedanta’s Jharsuguda unit received this prestigious award. The unit was adjudged as the “Excellent energy efficient unit” in General category (including metal & refinery), out of 127 shortlisted companies for final presentation. The parameters on which the award was bestowed were; the last three Energy Conservation initiatives, specific energy reduction trend, innovative projects that were carried out and Energy conservation approach & team work. The ‘Excellent Energy Efficient Unit’ award is instituted...
Québec launches its first Aluminium Development Strategy
Québec Premier Philippe Couillard, accompanied by Minister of the Economy, Innovation and Exports Jacques Daoust and the Parliamentary Assistant to the Premier for the Saguenay Lac-Saint-Jean region and Member for Dubuc Serge Simard, has announced the launch of the Québec Aluminium Development Strategy to foster the industry’s growth and global reach. The strategy’s objectives are to double aluminium processing in Québec by 2025, to support equipment manufacturers and specialized suppliers in export markets, and to consolidate Québec’s position as one of the world’s largest primary aluminium producers. “We owe Québec’s reputation for excellence in large part to the aluminium sector’s businesses and employees. No other state has developed a complete strategy to promote industry growth....
