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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Global mining equipment market revenue to reach $95.14 billion by 2022
As per a recent study, the Global Mining Equipment Market is expected to reach USD 95.14 billion by 2022. The mining industry has faced an economic slowdown over the last two years due to reduced investments and weak demand from major geographies including North America & Europe which has significantly hampered the mining equipment market. Leading manufacturers including Caterpillar, Sandvik and Atlas Copco have reported substantial drop in their revenues as a consequence of the mining industry's economic slump. The slowdown is primarily concentrated around new projects and expansion of existing projects. Current operations continue to perform well, with companies striving constantly to improve productivity. The mining industry is expected to start its recovery post 2017, as mining...
Update: Hindalco to ramp up production at MP aluminium smelter
Aditya Birla Group-promoted Hindalco Industries has said it would attain its full capacity at its Mahan aluminium smelter in Madhya Pradesh soon. The investment project faced a few road-blocks earlier pertaining to coal procurement apart from protests from environmentalists, but went on stream in mid-2013. Hindalco said: "Its (Mahan aluminium smelter project) final production capacity will be 3.6 lakh tonnes of aluminium metal per year. Currently, the unit is producing close to 95% of this capacity and is ramping up towards its full capacity, which is expected to be hit soon." In May 2006, Hindalco had signed a deal with state government and had proposed a sector specific special economic zone (SEZ) to attract an investment of more than INR 20,000 crore of which it had proposed to invest...
Manufacturer puts Bolton on the map with worldwide export success
BOLDMAN, the Bolton manufacturer of aluminium structures, is flying the flag for the town across the world with over 50 per cent of its business now coming from overseas sales. Set up in 1996, the manufacturer now employees 22 people in its workshop on the Britannia Way Industrial Estate and ships its aluminium products to Angola, Ivory Coast, Malaysia, Norway, Nigeria and the USA. Plans are also in place to see the product exported to Brazil, Czech Republic and Ghana by the end of the year. The company’s export success comes off the back of two record years of growth, with a reported turnover of £3.5million in the last financial year, up on £1.5million in 2013. Boldman began as a distributor of the Paletti Aluminium profile system. It remains the UK & Ireland’s only distributor and has...
New jaguar XE set for Zimbabwe
UK-based automobile manufacturer Jaguar Land Rover's all new premium model Jaguar XE is expected to be unveiled in Zimbabwe soon. The new car – in the pipeline for nearly two years – is billed as a competitor to the BMW 3 Series, Mercedes C-Class and Audi A4 in terms of superfluity, speed and comfort. Jaguar marketing and communications director for South Africa and sub-Saharan Africa Lisa Mallett said the vehicle has an ingenium engine, which makes it fuel efficient, using 4,21 litres of fuel per 100 kilometres. “With this new luxury model we are targeting a new customer group that is yet to enjoy our products,” she told . Mallet noted that the new Jaguar, with aluminium-intensive architecture and integral link rear suspension, was specifically made for the rough African terrain. “We are...
Car-O-Liner Aluminum Workstation wins 2015 Innovation Award
Car-O-Liner has been selected as the winner of the Professional Tool & Equipment News (PTEN) Innovation Award in the BodyShop Equipment category for the Car-O-Liner Aluminum Workstation. Every year, PTEN requests tool and equipment manufacturers to submit their new and innovative products for consideration in the PTEN Innovation Awards. This year, the publication received a record 117 product nominations. Evaluated by a panel of judges consisting of technicians and shop owners, the PTEN Innovation Awards recognize the most innovative products introduced in the last year to the automotive aftermarket. These tools, introduced or significantly updated within the last year, are evaluated based on their ability to make vehicle diagnosis and repair easier and more efficient, and make shops more...
Mojave Aluminium to build $120 million plant in Lenwood
Barstow's Mojave Aluminium Company announced plans build a $120 million aluminium plant in Lenwood, California. The 964-acre aluminium direct chill billet casting facility is targeted for a 173-acre site at the southeast corner of Gazana Street and Amarylis Avenue. The announcement comes weeks after a report surfaced alleging fraudulent market practices by China Zhongwang Holdings Limited, where Mojave Aluminium Company President Eric Shen was named as one of the persons involved in corporate misdemeanour. "The extent which Dupre Analytics report will affect the status of the Barstow (Mojave) Aluminium plant application, if any, is not known at this time," Mitchell told the City Council. "We will continue to closely monitor this issue in an effort to assess whether the capacity of Mojave...
Noranda completes 1-for-7 reverse stock split
Noranda Aluminum Holding Corporation announced today that it has effected a 1-for-7 reverse stock split of its common stock (the "reverse stock split") and a reduction in the number of authorized shares of its common stock from 200 million shares to 30 million shares (the "authorized share reduction"). The reverse stock split and authorized share reduction are addressed in an amendment to the company's amended and restated certificate of incorporation that was approved by the company's stockholders at a special meeting of stockholders held on August 24, 2015 and became effective on August 25, 2015. The company's stock will begin trading on a split-adjusted basis at the market open on August 26, 2015. The company's common stock will continue to trade on the New York Stock Exchange under...
A stronger USD weighs on aluminium, SMM reviews
A stronger US dollar weighed on base metals overnight. LME aluminum fell to as low as USD 1,525/mt on Wednesday and continued meeting resistance at the 5-day moving average. Finally, the light metal ended down USD 24/mt or 1.54% at USD 1,532/mt. Trading volumes were down 3,244 lots to 13,175 lots, and positions were up 8,207 to 855,000. SHFE 1511 aluminum opened lower at RMB 11,810/mt on Wednesday night. The contract fell back after a brief touch at RMB 11,855/mt. SHFE 1511 aluminum should move at RMB 11,800-11,870/mt on Thursday. In China’s spot market, ample supply against poor demand will leave spot discounts at RMB 100-60/mt over SHFE 1509 aluminum contract.
PBOC interest rate and RRR cuts lift aluminum prices overnight
Prices for aluminum and other base metals drifted higher overnight after the People’s Bank of China (PBOC) unexpectedly cut interest rate and reserve requirement ratio (RRR) on Tuesday. The rally in SHFE aluminum will be fleeting, Shanghai Metals Market understands. Three major US stock markets dived before the closing bell rang overnight after opening higher. Meanwhile, China’s A-share market also moved lower after a high opening today. These suggest that market sentiment remains fragile, which will act as a drag on base metals, including aluminum. Besides, poor market fundamentals will be a great concern. Production cuts by Chinese aluminum smelters are far from enough to reverse supply glut, given massive commissioning of new capacity. SHFE 1510 aluminum, the most active one, dipped to...
Aluminium Bahrain seeks rating ahead of $3.5 bln project fundraising
Aluminium Bahrain (Alba), owner of one of the world's largest smelters of the lightweight metal, is seeking a credit rating ahead of talks with banks about fundraising for its $3.5 billion Line 6 expansion, a company official to the media. Alba in June secured government approval for a larger-than-planned expansion of its proposed sixth "potline", or facility in which aluminium is made, which would boost annual output by 514,000 tonnes to 1.45 million tonnes. The company was considering a range of options to fund the scheme, including loans, export credit agency finance and a capital markets transaction. "We will be looking at the funding mix in conversations with our financial advisers, but no decisions have yet been made on how this important project for Alba and Bahrain will be...
UC RUSAL announces 2015 interim results
UC RUSAL, a leading global aluminium producer, announced its results for the three and six months ended 30 June 2015. Key highlights • A record low London Metal Exchange (“LME”) aluminium price driven by growing exports from China and oversupply in different regions exerted further pressure on the aluminium industry throughout the first half of 2015. The average LME aluminium price decreased by 10.1% from USD1,968 per tonne for the last quarter of 2014 to USD1,769 per tonne for the three months ended 30 June 2015. • A significant drop in premiums over the LME aluminium price in different geographical regions resulted in a decrease in average realised price by 7.8% to USD2,119 per tonne for the second quarter of 2015 from USD2,299 per tonne for the preceding quarter of the year. • Revenue...
Vedanta to shutdown Lanjigarh refinery on non-availability of bauxite
Non-availability of bauxite from Odisha and the prevailing turmoil in global aluminium prices have forced Vedanta to initiate the process of shutting down its one-million tonne a year alumina refinery at Lanjigarh. “We ran this unit with all commitment for nearly a decade, despite heavy odds. But with the current market turmoil, which is not likely to improve soon, and in the absence of access to bauxite from within the state, the plant is operating with a daily loss of INR 3 crore. Hence, we are forced to initiate the process of gradual closure,” said K K Dave, chief operating officer, Vedanta. Dave in a meeting said the refinery’s closure would impact nearly 10,000 people directly and the region at large. Yet, Odisha government declined to come to the refinery’s immediate rescue. State...
Chinese secondary aluminium alloy ingot export prices move further down
Due to the Yen depreciation and the weak demand from overseas market, export prices for Chinese secondary aluminium alloy ingot, used for diecast automotive components, fell steeply this week as some producers turned aggressive. The prices edged down by $30t to about $1,730-1,750t CIF Japan this week. The spot Chinese export price of ADC12 alloys was assessed at $1,740-$1,790/mt FOB China Tuesday, down $55/mt from $1,815-$1,825/mt FOB last week. Last week also witnessed some slip of export prices from $1,800-1,820t CIF Japan to about $1,760-1,780t CIF Japan. It is predicted that export prices for Chinese secondary aluminium alloy ingot will drop further as the auto industry in Japan will not turn better in the short term.
Aluminum Association updates on North American Primary market for July
The Aluminum Association, in cooperation with the Aluminum Association of Canada, reported primary aluminum production in North America (U.S. and Canada) was at an annual rate of 4,404,055 tonnes during July 2015, down 41,098 tpy (-0.9%) from the previous month's rate of 4,445,153 tonnes. The annual rate of production has decreased in four of the last five months. Compared to a year ago, the annual rate of production was 2.5 percent below the July 2014 rate of 4,519,242 tonnes. Through July 2015, actual production totaled 2,604,941 tonnes, 3.0 percent below the 2014 total of 2,686,090. Producer inventories totaled 2,977.3 million pounds in June, down 1.5 percent from the May 2015 level of 3,023 million pounds. Compared to a year ago, producer inventories were up 6.7 percent.
Portuguese component makers start aluminium frame production
Rodi, Miranda, and Ciclo-Fapril, the three leading component makers of Portugal announced they will invest € 12 million in aluminium frame production in Agueda, Portugal. Construction of the frame making facility is to start this September. The aluminium frame factory that Rodi, Miranda, and Ciclo-Fapril are building will have an initial capacity of 450,000 aluminium frames for e-bikes. Production is to commence in April 2016. Another investment of € 5 million is planned for Phase 2. With Eurobike starting tomorrow the investors and initiators of the frame facility, which is to be a vital part of Bike Valley Portugal, consider this as the right time to announce the project. The frame factory is built on a 63,000m² plot at the Casarão Industrial Park in Agueda; the town where all...
Andhra government determined to go ahead with bauxite mining
Despite protests coming in from Girijans living in the Vishakha Agency and political parties in opposition in the state, Andhra Pradesh government seems insistent on going ahead with the bauxite mining projects in the Agency area in Vizag and East Godavari districts. In a recent development, the Union Ministry of Environment and Forests cleared the Jerrela block, which is estimated to have around 224.60 million tons of rich quality bauxite (having 42 per cent to 56 per cent of alumina) in an area spread over 1,162 hectares. AP Mineral Development Corporation, which has been made the nodal agency to take up bauxite mining by the State government, received a letter from MoEF recently. Though a lot of paperwork remains to be completed before APMDC takes up mining on its own or cooperatives...
Ford set to produce aluminum body Super Duty
The Ford brand will get an aluminum-bodied Super Duty and several new high-performance cars in the coming year. According to Automotive News, most of its lineup has been recently updated, and another significant round of redesigns is expected just before the end of the decade. Ford said it is putting the Super Duty through the same aluminum lightweighting transformation that the F-150 underwent for 2015. It also may use a good deal of magnesium, as evidenced by a spectacular fire that immolated a Super Duty prototype last year. The lighter weight should create a good bump in towing capability and at least a slight increase in fuel economy. Ford may drop the 6.2-liter, V-8 engine, as it did with the F-150, but definitely will keep the 6.7-liter, Power Stroke, diesel V-8 that was recently...
Aluminum Association updates on downstream market in US and Canada
Preliminary estimates indicate that aluminum demand in the United States and Canada (shipments by domestic producers plus imports) totaled an estimated 13,063 million pounds through June 2015, up 2.9 percent over the same period last year. Demand for semi-fabricated (mill) products totaled 9,349 million pounds, up 7.9 percent. Apparent consumption (demand less exports) in domestic markets totaled an estimated 11,640 million pounds, increasing 7.4 percent year-to-date. Exports of aluminum ingot and mill products from the U.S. and Canada (excluding cross-border trade) totaled 1,423 million pounds through the first half of 2015, down 23.3 percent from the same period last year while imports were up 20.3 percent to 3,095 million pounds. Demand for aluminum semi-fabricated (mill) products in...
