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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Declining alumina prices hit US caustic soda market
At the start of 2015, those in the alumina industry had a right to feel like things were brightening for the lightweight metal in global markets. The global industry had been grinding its way through a years-built glut of supply that had depressed prices and forced alumina producers in the West to close dozens of operations. While the excess inventory was being worked down, prices had moved up. Demand for US caustic soda for alumina refining was brightening. But that was then. Today, a surge in alumina production in China has surplus material sloshing through global markets, sinking prices and adding to the oversupply that has weighed on the market for the past several years. Prices for alumina are at six-year lows, down 26% from a year ago and alumina companies are smarting. Several have...
Anglesea community groups share in Alcoa grants
Alcoa yesterday announced $225,000 in grants to its long term community partners in Anglesea to help them transition to a future without Alcoa. Outgoing President Alcoa Refining and Managing Director, Alcoa of Australia, Mr Alan Cransberg, announced the grants to 14 local Anglesea organisations at a function held to thank community partners for their support and partnership. Mr Cransberg said the grants will help underline Alcoa’s proud 46 year history in Anglesea. “We have created some tremendous partnerships in the Anglesea community over nearly 50 years and we are very proud that our community partners have enabled us to live out our values in the community,” Mr Cransberg said. “Looking back across the years we are delighted with the contribution our employees and the company has made...
China’s exports of aluminium bars, rods and profiles grew 41% y-o-y in 2014
China dominates in the global aluminium bar, rod and profile trade. In 2014, China exported 855 thousand tonnes of aluminium bars, rods and profiles totaling 2,987 million USD, 41% over the previous year. Its primary trading partner was Malaysia, where it supplied 27% of its total aluminium bars, rods and profiles exports in value terms, accounting for 99% of Malaysia’s total imports. From 2007 to 2014, China was a net exporter of aluminium bars, rods and profiles. In this period, exports consistently exceeded imports in value terms. In physical terms, the difference was more pronounced due to low export prices. Germany and Mozambique were among the other main global suppliers of aluminium bars, rods and profiles in 2014. However, the fastest growing exporters from 2007 to 2014 were the...
China aluminum alloy wheel exports fall for three consecutive months in July
China’s aluminum alloy wheel exports fell for three months running in July on a yearly basis, according to the China Association of Automobile manufacturers (CAAM). Export quantity fell 8.3% year-on-year (YoY) to 66,700 tonnes in July, and export value also dropped 9.2% YoY to $327 million, CAAM data showed. Outbound shipment totaled 450,400 tonnes during January-July, down 0.1% from a year ago. The US remained the top export destination – 55.86% of China’s export value – during January-July, followed by Japan, Mexico and India.
Auto supplier Sapa sets up shops in Detroit
Auto supplier Sapa is planting a stake in metro Detroit with the establishment of business as well as research and development facilities as part of a growth strategy in lockstep with increased use of aluminum in future vehicles. Sapa is a Norwegian manufacturer of extruded aluminum, headquartered in Oslo. It is a 50/50 joint venture owned by the Norwegian companies Orkla Group and Norsk Hydro. The global supplier has 6,500 employees and 25 plants in the U.S., mostly extrusion plants but also a tubing plant and some casthouses. In Michigan, there is an extrusion press for automotive customers in Kalamazoo. There are two plants in Canada and two in South America. The supplier now has a business development office in Birmingham and has leased 10,000 square feet in Troy for a research and...
China bauxite imports soared in July on rapid alumina capacity expansions
China’s appetite for imported bauxite grew significantly in July due to rapid expansions in the country’s alumina capacity, observed Shanghai Metals Market (SMM). Bauxite imports hit 5.06 million tonnes in July, up 63.52% year-on-year and 25.26% month-on-month, customs data showed. China imported 2.28 million metric tonnes (mt) of bauxite from Malaysia in July, 45.07% of national imports due to price attractiveness of Malaysian ore. China’s imports of Malaysian bauxite might surpass 17 million mt this year, well above forecast made early this year. Malaysian bauxite continued to gain favor thanks to its price attractiveness. Malaysia shipped 2.28 million tonnes of bauxite to China in July, 45.07% of China’s total imports. Average CIF price of Malaysian bauxite was $46.3 per tonnes, 16.37%...
China aluminum shake-up planned in state reform push
China is trying to push its two biggest aluminum businesses together as part of a planned shake-up of state-owned enterprises (SOEs), industry sources said, a move that would create the world's largest aluminum maker. Power company State Power Investment Corp (SPI) is in talks to hive off its aluminum assets to Aluminum Corp of China (Chinalco), allowing SPI to focus on power construction and generation, three industry sources told Reuters. The consolidation is shaping up as a test of Beijing's ambitions to restructure its vast but underperforming state-owned sector, particularly at a time of slowing economic growth. If successful it would be a fillip for reform, but slow progress in what is seen as a relatively simple tie-up underscores the problems China faces in more challenging SOE...
Hindalco seeks shareholders' nod to raise up to INR 6,000 crore
Aluminium maker Hindalco Industries seeks its shareholders' approval to raise up to INR 6,000 crore through issuance of non convertible debentures (NCDs) on private placement basis. "Consent is sought to offer or invite subscription to non convertible debentures up to an amount not exceeding INR 6,000 crore on private placement basis from time to time until September 15, 2016," Hindalco said in a BSE filing. Hindalco said its Board will consider raising funds in one or more series/ tranches. The company's AGM will be held on September 16. Shares of Hindalco were trading at INR 80.15, down 0.68 per cent, on the BSE in the morning trade.
LME aluminium to fall towards $1,504
LME aluminium is expected to fall towards a support at $1,504 per tonne, as it may have completed a bounce caused by this level. The support is provided by the 200 percent Fibonacci projection level of a downward wave C, which developed from the July 15 high of $1,729.50. This wave has been travelling within a falling channel, and the lower channel suggests a target at $1,487, the 214.6 percent level. A further gain from the current level may be limited to $1,560, the 150 percent level, around which, the upper channel line has established a resistance as well.
US primary aluminium output falls in June: USGS
United States' domestic primary aluminium production in June 2015 was 133,000 metric tons, according to latest data released by U.S. Geological Survey (USGS). The average daily production was 4,450 tons, 3% less than the daily production during the preceding month and 4% less than that in June 2014. Primary aluminium production during the first half of 2015 was 5% less than that of the same period in 2014. Total aluminium recovered from scrap in June 2015 was 308,000 tons, 8% more than that recovered in May and slightly more than that in June 2014. Of this, 174,000 tons of aluminium was recovered from new scrap, 13% more than the amount during the preceding month and 6% more than the amount recovered in June 2014. The amount of aluminium recovered from old scrap was 134,000 tons, slightly...
HELUKABEL publishes first-ever aluminum cable catalog
HELUKABEL has published its first-ever aluminum catalog, which presents its extensive range of aluminum cables and conductors, as well as information about proper processing techniques and the associated connection technology. It is the first catalog of its kind to appear on the market. With more than 100 pages, everything readers need to know regarding aluminum as a conductor material and the extensive product range is clearly presented. Aluminum cables have a long history at HELUKABEL. Thanks to the POWERLINE ALU-series, HELUKABEL has even been able to offer a finely stranded aluminum cable for several years now. Once developed for wind power applications, other industries are also benefitting from this highly flexible cable product. Traditionally used in ground and medium-voltage...
Global beverage containers market to grow at a CAGR 2.83% during 2014-2019
A recently conducted market research reveals consolidation in the packaging industry is going to have a substantial impact on the market. Rexam, the premeire can maker, if merges with Ball will craete a gloabl leader in the metal beverage packaging indsurty. A deal to this effect was announced in February 2015. Together Rexam and Ball is expected to serve its combined end user base in Europe, North America and Latin America in a better way. Post consolidation, the top three vendors will together constitute a major share of the metal beverage container market. As per the report, the global beverage container market is expected to grow at CAGR of 2.83% during 2014-2019. It has been observed the market for carbonated soft drinks (CSDs) has been shrinking over the last one decade, whereas...
Aluminium body of 2015 Ford F-150 unlikely to hurt resales, observe experts
Even before the 2015 Ford F-150 arrived at dealerships there has been some scepticism about the car due to it having body panels made from aluminium. On the plus side was the fact that the aluminium helped the vehicle to shed 700 pounds, which means its better on the fuel economy, on the downside is the fact that there could be higher repair costs. However it is looking as though the aluminium isn’t in fact going to hurt resales. It is now looking as though the resale value for the 2015 Ford F-150 is on the rise, based on the latest calculations. Experts now say that it will hold 58% of its value over three years. Compared to this was the 2014 model which came in at 52%. The figure means that Ford now has the highest resale value forecast in full-size pick-ups in the US. The 2015 Toyota...
Kulshan Brewing Company moves into Rexam cans
Hoping to bring its award-winning beers to even more customers, Kulshan Brewing Company has added cans to its packaging mix. Two of its brews - Bastard Kat IPA and Full 90 Session Ale are available now in Rexam 12 oz. cans. Brewed with passion and precision, Bastard Kat is an American Style West Coast IPA with a full hop flavor and aroma predicated upon the citrus notes of the Cascade Hop. Full 90 Session Ale features crisp, herbal, light citrus German Perle hops balanced with Vienna malt providing a soft bready character to this light ale. To keep up with demand for its beers, Kulshan recently expanded its operations opening a second brewery location that is twice the size of its original brew house. It features a large taproom and a brand-new canning line, which made it possible for...
Alupro announces revisions to the aluminium IBA protocol
Following approval from Defra and the Environment Agencies, revisions are being introduced to the protocol that account for aluminium packaging recovered from incinerator bottom ash (IBA). Three revisions to the protocol are designed to obtain a more accurate rate of the aluminium packaging currently being recycled in the UK or exported for recycling, the Aluminium Packaging Recycling Organisation (Alupro) has announced. The existing protocol, which is based on the mixed non-ferrous element of IBA, has been revised. The protocol now recognises that a minimum of 70% of the mixed non-ferrous metals recovered from IBA is aluminium packaging, including drinks, cans, foils and aerosols. This increase from the previous percentage of 50% follows detailed studies of tested samples and discussions...
Growing new aluminum capacity to add to China's 5.5 mt supply glut
China’s aluminum market is in surplus by approximately 5.5 million tonnes at present, and this situation will only get worse in H1 2015 as more capacity come on stream. About 1.8 million-tpy aluminum capacity is expected to enter into service in the second half of the year. New aluminum capacity concentrates in west China, where over 2 million tonnes capacity was newly built in H1 2015 alone. West China contributes to about 60% of the country’s aluminum production, and local operating rate is as high as over 90%. Most smelters there have captive power plants and enjoy lower power tariffs, allowing their production costs to stay low at 8,000-9,000 yuan per tonne. High-cost smelters in other parts of the country have cut or ceased production against falling aluminum prices. However, the...
Chalco swings to profit in H1 on cost cuts
Aluminum Corp of China Ltd (Chalco) posted a first-half net profit of 27.6 million yuan ($4.31 million), helped by lower production costs and rising sale prices of alumina products. Chalco swung to a net profit in the first quarter of this year after having posted a record loss in 2014 that was partly due to huge writedowns. The first-half profit compared with a net loss of 4.12 billion yuan in the six months through June 2014. The company, China's top integrated aluminium group, sells its product mainly in the domestic market. The front-month aluminium contract in Shanghai fell about 4 percent in the first half of this year as overcapacity weighed on prices amid the slow economic growth in China. The contract price, typically reflects domestic demand for spot primary aluminium, has...
Vedanta to halve output at Lanjigarh alumina refinery, job cuts to follow
Vedanta Ltd will halve output at its one- million-tonne-a-year alumina refinery at Lanjigarh in Orissa state in about two months, a senior executive said, due mainly to acute shortage of raw material bauxite and weak LME aluminium prices. Job cuts at the refinery, which employs about 2,000 people, are likely to be proportional to output reduction, Abhijit Pati, head of Vedanta’s aluminium business, told on Thursday. This is nothing but a part of the closure process that has already been kicked off by the minerals and metals behemoth in a phased manner. Odisha government, earlier this week, had declined to come to the rescue of the company saying there was inadequate bauxite to feed the big alumina refinery. Hence, the inevitable shutdown and resultant output reduction and job cuts.
