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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A new, simpler PRN system under way for 2016
Advisory Committee on Packaging (ACP) chairman Phil Conran said a simpler accreditation process for the Packaging Recovery Note (PRN) system will be introduced from 2016 onward. The changes proposed therein will hopefully encourage more secondary aluminium businesses (as well as other metal reprocessors) and exporters to register for the system. That will in turn boost the number of PRNs on the market and provide the Government with a more accurate picture of UK packaging recycling. The committee’s technical liaison group wants the Environment Agency (EA) to allow hassle-free accreditation without sampling. That could lower the fees for companies interested in getting accredited. Provision for automatic renewal of accreditation for EU exports has also been thought about in the new PRN...
China aluminium extrusion operating rate slump to continue in Aug
Operating rates at Chinese aluminum extruders will extend July’s declines in August due to sluggish property and export market, Shanghai Metals Market foresees. The average rate will be 54% for aluminum extruders, with 58% in industrial aluminum extrusion segment and 54% in construction aluminum extrusion segment, SMM’s aluminum research team said. Operating rates averaged 56.01% in July at 30 Chinese aluminum extruders surveyed by SMM, down 3.34 percentage points year-on-year and 4.16 percentage points month-on-month. Strong orders from railway sector allowed industrial aluminum extruders to run at 59.08% of their capacity. Construction aluminum extruders, however, ran at just 55.65% of their capacity because of depressed real estate market and falling export orders from South America.
Midas clinches three Chinese rail contracts worth $21 million
A subsidiary of Midas, Jilin Midas Aluminium Industries Co, has won three contracts worth RMB94.6 million (S$20.74 million) for the supply of aluminium alloy extrusion profiles for metro trains in the People's Republic of China. The first metro train supply contract worth RMB38.2 million is from CNR Changchun Railway Vehicle Co for Shenzhen Rail Transit Line 9. The other two supply contracts are from Nanjing SR Puzhen Transport Co for Hefei Rail Transit Line 1, worth RMB32.7 million; and for Suzhou Rail Transit Line 4, worth RMB23.7 million. The contracts are slated for delivery this year and the next, and are expected to contribute positively to Midas' financial performance for the two years. Midas is a manufacturer of aluminium alloy extrusion products for the passenger rail...
NZ aluminium smelters related cargo boosts South Port's profit
South Port, New Zealand's southernmost commercial deep water port, has announced a record $7.74 million profit for the 2014-15 year and plans for a $4.25m freight centre servicing road and rail in Invercargill. The Bluff-based company said busy seasonal freight activity had produced a record cargo volume in the year and the highest after-tax profit result in the port operator's history. South Port chairman Rex Chapman said stronger bulk volumes drove overall cargo throughput to the new record level of 2.86 million tonnes while the company's warehousing, container handling and marine functions provided support to core activity. South Port chief executive Mark O'Connor said the lift was largely driven by fertiliser, stock food and dairy-related product while other cargo categories held up...
LME confirms fee holiday for new aluminium
The London Metal Exchange (LME) confirmed plans to waive fees for its new aluminium premium and steel contracts from launch on November 23 to December 31, a move the exchange hopes will help boost volumes and liquidity. "During that period the Exchange will not charge any trading or clearing fees in respect of any trading in the Aluminium Premium Contracts," the LME said in a note. Trading and clearing fees for the aluminium premium contract range between 50 and 90 U.S. cents. The clearing fee for delivery is 35 cents. Fee incentives and the launch of the new contracts are subject to final regulatory approval from the Financial Conduct Authority and rule change consultations for the Exchange. The exchanges is also planning fee rebates and stipends to cover operational costs for market...
No ‘promises’ from Government of India on import duty hike on aluminium
The Government of India has yet again refrained from giving any assurance to the domestic aluminium industry on its demand for an import duty hike. For the second time in a little over a month, on Thursday the top officials of aluminium majors BALCO, Hindalco, Vedanta Ltd and others, under the aegis of the Aluminium Association of India, met senior officials from the Mines Ministry, Department of Revenue, NITI Aayog and the Prime Minister’s Office to press their demand for an import duty hike. The industry has been seeking an increase in import duty of aluminium metal to 10 per cent from the existing 5 per cent and aluminium scrap to 10 per cent from the existing 2.5 per cent. However, no assurances were given on any timeline for the import duty hike, said a member of the Aluminium...
Indian aluminium industry may resort to production cuts, layoffs
Facing the double whammy of plummeting prices and subdued capacity utilisation, the domestic aluminum industry hinted at resorting to production cuts and retrenchment if the government does not raise import duty to 10% immediately from 5% to protect the home turf from rising imports. “The domestic aluminium industry is bleeding. All producers are running at an EBITDA loss. We are at a situation where the more we produce, the more we incur losses. Though we have not resorted to any production cut so far, if this situation continues for some more time, we would not have any option left which may also lead to job cuts,” said Abhijit Pati, a member of the governing council of Aluminium Association of India (AAI), said. The industry employs 7.5 lakh people directly and indirectly. An AAI...
AluChem to commission a low-soda alumina plant in 2015
In 2015, AluChem will launch a new line of low and ultra-low-soda aluminas focused toward ceramics and investment casting applications. This new high-purity alumina product portfolio will utilize proprietary purification technology in the production of low and ultra-low-soda calcined, reactive and tabular aluminas, which will complement AluChem’s already-established low-soda AC99 tabular alumina products. The new low-soda operation will further enhance the company’s soda reduction capability by allowing soda removal on a large production-scale basis to levels below 0.05%. This feedstock will be used to produce low-soda calcined, reactive and tabular aluminas, which will expand AluChem’s product portfolio for the technical ceramics and investment casting industries. AluChem’s low-soda...
High Purity Alumina Market - APEC to exhibit the fastest growth by 2014 - 2020
Extensive market research has revealed that Asia Pacific is the largest market of high-purity alumina (HPA) attributed mainly to the high concentration of allied industries such as semiconductor and electronics equipment manufacturing industries in China, Taiwan and South Korea. It is then followed by North America and Europe. The U.S is the largest regional market of HPA in North America, Germany, Italy and The U.K are the largest market of HPA in Europe. Asia Pacific region is also the fasted growing market of HPA driven mainly by the rising demand of high definition television, smart phones, and rising application of electronic sensors and display in automotive in this region. High-purity alumina, (minimum of 99.99 percent pure aluminum) is the form of non-metallurgical alumina and...
Glencore to proceed with bauxite mining project in Aurukun, Cape York
The Minister for Natural Resources and Mines, Anthony Lynham has confirmed the competitive bid process to mine a bauxite lease in Aurukun will not be reopened. Dr. Lynham told at an open community meeting of about 30 people in the Cape York community on Saturday the Swiss company Glencore would proceed with the project. “The next stage for the project is for the department ... to consider Glencore’s application for a mineral development licence,” he said after the meeting. Glencore was named preferred proponent by the former LNP government over local company Aurukun Bauxite Development (ABD), which has signed an Indigenous Land Use Agreement with Aurukun’s Native Title Body Ngan Aak-Kunch (NAK). It was the first time Dr Lynham, as minister, visited Aurukun to discuss the lucrative bauxite...
China alumina output peaks in July, SMM Says
Despite falling alumina prices, China’s alumina output peaked at 4.83 million tonnes in July, SMM data showed. The figure grew 11.6% year-on-year, and was up from June’s 4.72 million tonnes. Large refineries maintained high production due to their cost advantages. China
Aluminium market under long liquidation, open interest drops 9.92%
Aluminium settled down -0.49% at 100.75 tracking weakness from LME aluminum which opened at USD 1,567/mt on Tuesday. LME aluminum touched an intraday high of USD 1,573.5/mt, but was then dragged down by a strong dollar to USD 1,549.5/mt. Finally, the light metal ended at USD 1,551/mt. Also pressure seen after China’s railway shipment fell 10.9% YoY in July, and the country’s power generation dropped 2% YoY in July, pointing to weak Chinese economy. Poor Chinese economic data mean that selloffs in commodity market will persist. Aluminum dropped to the lowest since 2009 as demand concerns mounted on the outlook for slower growth in China, the world’s biggest user. A recent study showed housing starts in the U.S. to have inched up to a nearly eight-year high in July, but also indicated a...
IBC Advanced Alloys reports unauthorized third party release of proprietary information
IBC Advanced Alloys Corp., an integrated manufacturer and distributor of rare metals (beryllium) based alloys and related products, reports an unauthorized third party release of proprietary IBC information whereby material competitive business intelligence, as well as proprietary information regarding Beralcast, the company's beryllium aluminum casting process, was sent electronically by a large customer of the company to a competitor of the company. The unauthorized releases occurred between July 10th and July 15th, 2015 and were identified during routine ongoing reviews of all email transmissions relating to the company's work with the customer. IBC's President and Chief Executive Officer, Anthony Dutton, met with senior management of the customer to report the unauthorized releases...
Inabata and Toyo to launch anti-counterfeit blister foil
A blister foil with anti-counterfeit features developed by Japan's Toyo Aluminium will be launched at Pharma Expo next month. The blister foil technology features colour-shifting inks that can be complemented by additional semi-overt and covert features and - according to US distributor Inabata - are much cheaper than holograms or other colour-shifting ink technologies. "Our ink is banknote-grade with much cheaper price," the Inabata spokesman told SecuringIndustry.com. "Because it is cost competitive - with no similar grade in the market - and no one can copy our products vivid colour, we believe there are many advantages for consumers and pharma companies." Toyo Aluminium has been manufacturing aluminium foil since 1978 and their products are widely used in pharmaceutical and other...
HC seeks Centre's reply on Balco plea
Delhi High Court today sought the Centre's response on Bharat Aluminium Company's (Balco) plea challenging government's decision rejecting its representation to reconsider cancellation of its bid for a Chhattisgarh coal block. A bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva issued notice to the Coal Ministry and sought its reply to Balco's plea by September 17, the next date of hearing. Balco, a Vedanta group firm, had initially moved the court in March this year after its bid, which was the highest for Gare Palma IV/1 coal block, was cancelled by the government amid speculation of cartelisation. The court had thereafter asked the government to consider Balco's plea as a representation and appointed Coal India Ltd as a temporary custodian of the mine. The government in the...
Need for new power source felt as uncertainty hovers over Tiwai aluminium smelter closure
Meridian Energy Ltd, New Zealand's leading electricity generator and retailer, said in a briefing for its annual report, it thinks New Zealand needs a new source of energy by 2019. Earlier the corporation held that the country had adequate power sources and will not require additional power stations for years; however, with uncertainty hovering around demand for electricity which might arise from Tiwai Point aluminium smelter, the company has recently changed its outlook for the country's electricity requirement. Tiwai Point aluminium smelter, controlled by Rio Tinto's subsidiary Pacific Aluminium uses one seventh of New Zealand's electricity. It has been long since talks are on regarding its prospective closure. Despite an agreement inked earlier this month, it could still operate till...
Capacity expansions to slow China aluminum inventory declines
China’s aluminum stocks have been falling for three months running, but the pace will slow down due to robust growth in new capacity, Shanghai Metals Market notes. On the supply side, the scale of aluminum production cuts will be small this year due to falling production costs. Some 2-3 million tonnes of cost-effective new capacity will come on stream in H2, SMM statistics found. Slowing consumption will exacerbate oversupply pressure in H2, SMM’s aluminum research team said.
Raising import duty on aluminium products 'tricky': India Mines Ministry
The government of India said the demand by primary producers to raise import duty is a "tricky" case as the move will help the bigger players -- Hindalco, Balco, Nalco and Vedanta -- but may hurt smaller firms that import scrap. The Ministry is reviewing the case for increasing import duty on aluminium and has met with both the primary producers as well as the small companies who import aluminium scrap for various purposes. "In this case there are two things. On one side there are firms who are importing scrap. On the other hand primary players are only four -- Hindalco, Vedanta, Balco and Nalco -- who tell us to raise the import duty on Aluminium. But if we increase it then the firms who import scrap will be adversely affected. They have also come to us and said that import duty should...
