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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Aluminum supplier to open Goodyear manufacturing plant
Basic Metals Inc., an independently-owned aluminum service center and supplier based in Wisconsin, will open a manufacturing and distribution center in Goodyear in September. Specializing in aluminum sheet, coil and circles, Basic Metals supplies aluminum to manufacturers, metal fabricators and metal spinners. “We are pleased that Basic Metals has chosen Goodyear for its place of operations,” Goodyear Mayor Georgia Lord said. “As Goodyear’s manufacturing sector continues to grow, we will also see supply chains expand.” That means more opportunity for economic growth, she said. Basic Metals Chief Financial Officer Kevin McAllister said Goodyear was attractive because of its growth in the past decade. The company expects to employ eight to 10 workers. The large property will allow for...
Century issues warn notice at Hawesville, KY smelter
Century Aluminum of Kentucky, a wholly-owned subsidiary of Century Aluminum Company, today issued a notice to employees at its Hawesville, Kentucky aluminum smelter of its intent to curtail its plant operations beginning on October 24, 2015 unless the current pricing environment substantially changes. The announcement was made pursuant to the federal Working Adjustment and Retraining Notification Act (WARN). "We regret the need to issue this notice at this time and fully understand the impact it will have on our employees, in our community and with our customers," commented Michael Bless, President and CEO. "The simple fact is that the recent significant decline in the aluminum price is being driven by unfair trade behavior over which our industry has no control. Chinese overcapacity and...
Japan’s spot aluminum import premiums steady at $90-$100 mt
Japan’s spot aluminum import premiums were steady at $90-$100/mt plus London Metal Exchange (LME) cash CIF Japan Monday, unchanged since July 28, despite falling premiums in Europe. Spot import trade was absent in Japan despite the strong yen, as the fourth quarter contract negotiations are expected to start this week. Japanese buyers and overseas seller sources reported no deals, offers or bids over August 20-24. In Europe, spot premiums fell last week reacting to a tighter LME contango spread and global supply overhang and the seasonal demand slowdown. Assessment for duty-paid European premiums fell to $135-$150/mt plus LME cash in-warehouse Rotterdam last Friday from $150-$165/mt. Sumitomo Corp said it forecasts $100/mt contract premiums for Q4, in its note to customers. Platts’ Q3...
Aluminium production once again nears record levels
International Aluminium Institute (IAI) that measures the production trend in the world has come out with its latest numbers. IAI has mentioned that the trend of aluminium production again moved to higher side. In July 2015, world aluminium markets moved very close to the record production numbers. Data estimates from International Aluminium Institute (IAI) showed that the total primary aluminium production reached 4.92 million tonnes in July 2015 compared to 4.90 million tonnes in June 2015. This marks an increase of 0.41% on a monthly basis. The production of aluminium in July 2014 was 4.44 million. This means that aluminium production increased by 10.81% on a yearly basis. China remained the major contributor to the production along with the GCC nations and it did impact the increase...
Aluminium market under long liquidation, open interest drops 6.96%
Aluminium settled down -0.34% at 101.10 lost more ground on Monday with both markets dropping to the lowest levels since 2009 on concerns over slowing economic growth in China, the world's top consumer of industrial metals. Aluminium gave up 1.5 percent to $1,524.50 a tonne, its weakest since June 2009. Also activity in China's factory sector shrank at its fastest pace in almost 6-1/2 years in August as both domestic and export demand dwindled. Asian stocks slumped to 3-year lows as a slide in Chinese equities gathered pace, hastening an exodus from riskier assets as fears of a China-led global economic slowdown churned through markets. Also Loss-making aluminium smelters in China could idle another two to three million tonnes of annual capacity in coming months as metal prices trough at...
LME aluminium may end bounce around $1,547
Aluminium may end its current bounce at London Metal Exchange (LME) around a resistance at $1,547 per tonne, as suggested by a Fibonacci projection analysis. The resistance is provided by the 161.8 percent Fibonacci projection level of a downward wave C, which developed from the July 15 high of 1,729.50. This wave does not seem to have completed, as it may eventually travel to $1,460, the 238.2 percent level. A break above $1,547 could lead to a limited gain to $1,560, the 150 percent level, while a drop below $1,530, the 176.4 percent level, could signal the completion of the bounce.
METCASE offers bespoke aluminium electronics cases
METCASE, the metal enclosures division of the OKW Enclosures Limited, announed they are now offering fully bespoke aluminium electronics cases, created using METCASE’s standard case components such as diecastings and extrusion profiles or from fully fabricated sheet metal components. METCASE can manufacture complex mounting plates, chassis and front panel assemblies. Plus, METCASE engineers can manufacture enclosures to customers’ designs or provide bespoke solutions from their detailed specifications. 3D modelling is now available on all standard METCASE aluminium cases, instrument housings and 19in rack mount enclosures. Customers can request 3D drawings as STEP, SAT or X_T files so they can specify customised front panels and internal components quickly and more easily. 3D modelling...
Aluminium top hotplate for working with solids directly on the plate surface
The HP61A Programmable Hotplate by Torrey Pines offers the usual high quality and programmable features expected, but is also suitable to use when working with solids directly on the plate surface. This makes it ideal for use in tasks such as wafer processing and annealing, baking photo resists, wax and glue heating and bonding, micro fabrication and encapsulation, surface mount soldering or any need to heat samples directly on the heater surface. The heater plate is 305mm or 12? square and milled-flat cast aluminium, ensuring even heating across the whole surface. The temperature range is from ambient to +450°C, controlled to ±1°C of the target. Accuracy is 1% of the reading, and the unit is supplied with a temperature calibration certificate traceable to NIST. Programming is done...
India aluminium scrap prices up
Indian aluminium scrap prices on Scrap Register Price Index traded up. The Indian scrap market remains extremely slow with transactions continuing to be few and far between. As per the Scrap Register Price Index, scrap prices for Aluminium Accessories, Aluminium ingots, Aluminium Rod Company, Aluminium Rod Local, Aluminium Sheet cutting, Aluminium utensil, Aluminium Wire traded up during last week.
Defra seeking reaction to aluminium recycling shortfall
The Department for Environment, Food & Rural Affairs (Defra) is taking steps to improve compliance of aluminium reprocessors after the number of aluminium packaging waste recovery notes (PRNs) issued in the UK failed to meet statutory business targets for 2015. In the second quarter of 2015, figures show only around 12,334 tonnes of aluminium were recycled, compared to the estimated 16,750 tonnes required per quarter to achieve the government’s target. The industry argues, however, that the actual recycling level is much higher, but that it is not being correctly reported because the PRN system is not fit for purpose, due to an onerous voluntary accreditation process. Because of the shortfall in aluminium PRNs, the department has today (21 August) released a position paper outlining steps...
Gulf Industry Fair to showcase GCC's industrialization development
Gulf Industry Fair 2016 (GIF) will be unveiling a series of events and initiatives at the Fair to enhance its reputation for being the GCC's exclusive annual industrial promotion showcase championing economic diversification and industrialization across the GCC. The 2016 annual industrial event is scheduled to take place from February 9th - 11th 2016. Gulf Industry Fair provides a unique one-stop shop approach for the elements of industrial development across the Aluminium, Energy and Environmental Protection, Industrial Metals, Industrial Processes and Manufacturing, Logistics and Industrial Facilities, Industrial Security and Safety, Ports and Maritime Industries as well as Training for Industry . "The 2016 Exhibition takes place at a watershed period for the economies of the region "...
South32’s full-year earnings jump 41% on aluminum, alumina
South32 Ltd., the miner spun out of BHP Billiton Ltd. in May, said full-year earnings rose 41 percent helped by its aluminum and alumina operations. Underlying earnings were $575 million in the year ended June 30, compared to a proforma $407 million a year earlier, the Perth-based miner said in a statement. South32, the world’s biggest manganese ore producer, had record output of alumina in Brazil, metallurgical coal and manganese alloy in Australia and manganese ore from South Africa. A cost-cutting program also boosted earnings, it said. The company will seek to reduce costs by at least $350 million a year for the next three years, and is continuing a review of South Africa manganese operations that may lead to a further reduction in planned production, it said. The producer declined...
Mine auction in India may start by October-November
Mineral-producing states are expected to begin auction of mines bearing minerals such as iron ore, bauxite and limestone by October and November, Steel and Mines Minister Narendra Singh Tomar reportedly said. "I have spoken to all the Chief Ministers of the mineral-producing states, and the process has started there," Tomar said. The Minister reported that the government is in the process of finalising the guidelines of the District Mineral Foundation (DMF).
Chinese aluminium smelters to close more capacity on low prices
Loss-making aluminium smelters in China could idle another two to three million tonnes of annual capacity in coming months as metal prices trough at 6 1/2 year-lows. The closures would trim a production surplus in the world's top aluminium producer and consumer, as well as support domestic prices, although any price gains may prompt some firms to revise their plans, they said. Chinese spot aluminium prices have held around six-year lows since last month, falling to 11,820 yuan ($1,848) a tonne on Monday, the lowest since February 2009. Capacity cuts by a group of large smelters so far this year would extend to about 2.4 million tonnes in coming months, the China Nonferrous Metals Industry Association said in a statement on Monday, after meeting late last week with smelters. China...
Sumitomo cuts Q4 LME aluminium price forecast to $1,800 from $2,000
Japanese trading firm Sumitomo Corp has cut its forecast of London Metal Exchange (LME) aluminium prices to $1,800 in the October-December quarter from its January estimate of $2,000 due to rising exports from China and a stronger U.S. dollar. It also lowered its estimate of Japan's aluminium premiums, the surcharge for obtaining physical metal, for the quarter to $100 per tonne from its earlier prediction of $425. Japan is Asia's top aluminium importer and the premiums for primary metal shipments PREM-ALUM-JP it agrees to pay each quarter over the LME cash price set the benchmark for the region. "We had thought a combined price of the LME cash level and the premium would not slide much below $2,000. But it has fallen much more than anticipated," told Shingi Yamagiwa, manager of...
Alba Line 5 successfully completes a decade of operations
Aluminium Bahrain B.S.C. (Alba), one of the world’s leading aluminium smelters, recently marked the 10th year of operations of its Reduction Line 5. Inaugurated by His Royal Highness, The Prime Minister, Prince Khalifa bin Salman Al Khalifa in 2005, Line 5 was a historic milestone in the Middle East’s aluminium industry. It expanded Alba’s annual aluminium production by adding 307,000 metric tonnes per annum (mtpa), making it the largest aluminium smelter in the world outside of Eastern Europe with a total output of 827,000 mtpa. Line 5 set the world record for the fastest and safest start-up of an aluminium reduction line of 77 days without a single loss time injury (LTI). At 1.2 km, Line 5 was also the world's longest reduction lines back then, with 336 pots using one of the most...
Norsk Hydro: Egil Hogna appointed new CEO at Sapa
The Board of Directors of Sapa AS has appointed Egil Hogna (44) as the company's new President & Chief Executive Officer. He will replace Svein Tore Holsether on September 1, 2015. "I am very excited about the opportunity to lead Sapa. As the leading player in its industry, with 23,500 employees in over 40 countries, Sapa is well positioned to deliver innovative aluminium solutions meeting customer's demands all over the world - today and tomorrow," says Egil Hogna. For the last six years, Egil Hogna has led the downstream operations at Yara International. He has previously served in a variety of management positions in Yara and Hydro, including CFO and head of Investor Relations. Hogna has a Master of Science degree from the Norwegian university of science and technology, NTNU, in...
iPhone 6S packs in stronger aluminium alloy; passes “bendgate” test
Lightweighting is fast becoming the order of the day. Be it in the automotive sector or in the mobile handset industry, every company is now focussing on the technology that enables them to lightweight their products in order to add more value to them and stay cost effective in the long run. Apple’s iPhone is the latest brand to join the lightweighting bandwagon. It is said to have used a higher grade of aluminium in its latest iPhone 6S model. It is rumoured that the handset has passed the much hyped “bendgate” test and the feat is entirely being attributed to its aluminium alloy built which makes it sturdier and more durable than its earlier versions. Spectrometer analysis confirms iPhone 6S rear shell contains high concentration of zinc - indicative of 7000-series aluminium used in...
