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...
Grow with
AL Circle
Hindalco plunges over 7% as Novelis posts weak Q1
Hindalco Industries shares fell over 7 per cent to hit intraday low of Rs 95.55 after its subsidiary Novelis, which contributes around 50 per cent to its consolidated revenues, reported weak earnings for the June quarter. Novelis, which is world's largest recycler of aluminium posted a net loss of $60 million for the April-June quarter compared to a net profit of $35 million in the corresponding quarter of last fiscal on account of lower average aluminium prices. Its revenue fell 2 per cent annually to $2,634 million against $2,680 million year-on-year. Novelis' EBTDA or operating profit came in at $127 million against $228 million last year. Average realisation per tonne of Novelis fell 7 per cent sequentially to $3,430 from $3,679 in the March quarter, impacting its profitability....
China’s Gargantuan aluminum exports poised to soar
China’s ballooning exports of aluminum will probably get even bigger because of the surprise yuan devaluation. The country is the world’s biggest producer of the metal, which is used in everything from beverage cans to airplanes. Many Chinese producers haven’t cut output even amid slumping prices, partly because of government subsidies, according to Goldman Sachs Group Inc. Domestic demand has weakened at the same time, spurring a flood of aluminum to the global market. China’s shipments in 2015 through July surged 28 percent from last year, to a record. With this week’s yuan devaluation, the aluminum market should brace itself for even more supplies, because the weaker currency will lower domestic production costs. “It’s clearly bearish, because at the margin, it lowers domestic cost of...
Nalco Q1 net declines 40% to INR 163.44 cr
State-run National Aluminium Company (Nalco) reported a 40 percent decline in its net profit at INR 163.44 crore for the quarter ended June 30, 2015. The company had posted a net profit of INR 270.99 crore in the year-ago period. Total income of the aluminium producer fell by 16 percent to INR 1,491.27 crore in April-June quarter of this fiscal against INR 1,680.04 crore in the same quarter of 2014-15. Total expenses of the company fell to INR 1,366.55 crore from INR 1,499.06 crore in the reported quarter. Nalco's Net sales from aluminium fell to 1,042.26 crore in the June quarter of 2015-16 from INR 1,042.62 crore in the same quarter in 2014-15. The aluminium unit reported a loss of INR 13.89 crore before taxes and interest against a profit of INR 31.09 crore. The company has minimised...
India raises import duty on aluminium by 2.5 per cent
Government of India has raised basic customs duty on base metals by 2.5 per cent. The decision was taken after Finance Minister Arun Jaitley approached Parliament seeking the revision for specified goods falling under Chapter 72. Under the Central Board of Excise and Customs ( CBEC), this pertains to commodities such as iron and steel, copper, nickel, lead, zinc, tin, tungsten (wolfram), molybdenum, and aluminium among others. Domestic aluminium producers have been demanding import duty hike for some time now as they are facing stiff challenge from China, which is exporting aluminium products at cheaper rates. Cheap imports from Middle East too are deluging domestic market. As a result of this, market shares of the Indian aluminium producers are getting shrunk. Aluminium Association of...
OMC may get commercial coal mine from Centre
State owned Odisha Mining Corporation (OMC) may get to operate a commercial coal block for supply of the dry fuel to non-regulated sectors like steel, cement and sponge iron. The state government has already written to the Ministry of Coal to allocate the Patrapada coal block with reserve of 1042 million tonne to OMC. Patrapada is one of the 10 Schedule I coal blocks listed by the Ministry of Coal for non-regulated sectors. The remaining coal blocks identified are Nuagaon-Telisahi, Talabira II, Utkal, Biatarani West, Mandakini B, Rampia and dip side Rampia, Ramchandi promotional coal block and North of Arkhapal and Srirampur coal block. "The discussions with the Coal minister were very positive. We hope to get one commercial coal block from the Centre in favour of our PSU", said state...
Altech Chemicals receives initial substantial shareholding notice
Altech Chemicals has received a substantial shareholder notice from Malaysian cornerstone investor Melewar IIC Limited after acquiring a 7% interest in a placement. Melewar, a diversified industrial firm with steel, energy and engineering businesses, acquired 8,474,576 shares priced at $0.059 as the first tranche of a $1 million placement commitment. The remaining 8,474,577 shares will be issued subject to shareholder approval, which will be sought at the company’s Annual General Meeting planned for 30th October 2015. Shares in Altech Chemicals last traded at $0.10. Melewar, which is led by executive chairman Royal Highness Prince Ya’acob Bin Tunku Tan Sri Abdullah, will then be the second largest shareholder of Altech with a 12.9% interest. Altech had raised A$1.13 million for a detailed...
UC Rusal to consider Jamaican energy options for its alumina refineries
Phillip Paulwell, Jamaica's Mining Minister, has disclosed that UC Rusal, the Russian aluminium conglomerate, will soon be meeting with the Electricity Sector Enterprise Team (ESET) to give a report on energy projects it is contemplating for its alumina refineries in Jamaica. UC Rusal is considering a number of options to generate electricity for ALPART, its alumina refinery at Nain in St Elizabeth, with a view to selling extra power to the national grid. It had initially considered LNG and coal as fuel sources, but is believed to be reconsidering those options, given the current low price of oil. "They will be in Jamaica at the end of this month," Paulwell told RJR News, adding that the fuel source issue will be a key feature of the discussions. The Jamaican Government will also be...
Xinfa Aurum Exploration installs beneficiation plant at Bua's Votua bauxite mining site
Xinfa Aurum Explorations (Fiji) Limited is constructing a beneficiation plant at its Votua bauxite mining site in Lekutu, Bua. Beneficiation of bauxite involves screening of the ore followed by a wash to remove fine particles. The screened ore is then placed on stockpiles before being loaded onto the ships. Xinfa Aurum Explorations Mine Manager, Basilio Vanuaca says, the bauxite extracted at the Votua mining site has more soil content than that extracted at Nawailevu. It is estimated that a stock of three million tonnes of bauxite is ready to undergo beneficiation before the purified ore is shipped to China. Vanuaca said, 400,000 tonnes of bauxite is expected to be extracted and purified from this site which would rake in about $16 million in revenue.
Balco moves Delhi High Court on coal mine bid rejection
Bharat Aluminium Company (Balco), a Vedanta group firm, has approached Delhi High Court against the government's decision to reject the company's winning bid for an auctioned coal mine in Chhattisgarh. The government last week rejected the company's plea to review the cancellation decision taken in March. The government had in March rejected bids for three coal blocks, one by Balco and two by Jindal Power, citing low prices and handed over the mines to state-run miner Coal India. The companies then moved the Delhi High Court. The court asked the government to consider Balco's plea afresh while appointing Coal India as a temporary custodian. Balco had submitted best bid of Rs 1,585 per tonne for Gare Palma IV/1 while Hindalco bagged another mine for steel sector in the same Gare Palma...
Aluminium hits six-year low after China devalues yuan
Aluminium on London Metal Exchange (LME) hit six-year lows after China devalued its currency, fuelling worries about oversupply and boosting cost of the commodity for the world's top metals consumer. "The devaluation will make commodities more expensive for China to import, so I would imagine that is the main reason for the negative reaction," said Caroline Bain, senior commodities economist at Capital Economics in London. The devaluation also makes exports more competitive, which may eventually increase industrial production and demand for metals, Bain added. "We're not too worried because ultimately it could be a factor in a pick-up in activity in the second half of the year. It could be positive for commodities in the medium term even if the initial reaction is negative." Aluminium...
Rexam first to produce commercial beverage cans with ‘Metal Recycles Forever’ logo in UK
Rexam is proud to announce the first commercial use of the Metal Recycles Forever logo in the UK market, printed on cans produced for micro-brewing customer Concrete Cow. The logo, endorsed by all members of Metal Packaging Europe, provides a definitive symbol for the metal packaging industry. Its creation is part of a behavioural change campaign, intended to inform consumers about the inherent recyclability of metal packaging, ultimately encouraging them to recycle more. Speaking on behalf of Rexam, European Sustainability Manager Matthew Rowland-Jones says, “We’re delighted that Concrete Cow has decided to use the logo and see this as an extremely positive step in the right direction. We are now focussing on encouraging more of our customers to include the symbol on their cans, in a bid...
Finding the right partner in Sapa key to Central do Alumínio's growth
Central do Alumínio began its metal-building business in some of the boldest and most modern building projects in Rio de Janeiro. Now its work can be seen all over Brazil. Sapa is contributing. Central do Alumínio is one of the premier metal builders in Brazil, specializing in aluminium frames for windows and facades. Its start came in Barra da Tijuca, a neighborhood in Rio that is considered one of the most developed places in Brazil, where the company was asked to support the construction of the area’s downtown shopping complex. Director Luiz Felipe Lucena says the company used approximately 370 tons of aluminum profiles for the frames in the complex. “This project was a success, but we have come a very long way since then,” he says. It is also a long way between Central do Alumínio and...
AMAG: Asia- an attractive market for high quality aluminium products
AMAG, a leading producer of high grade rolled aluminium products based in Austria, offer customers in Asia a wide range of specialty materials for aircraft, automotive and electronics. AMAG has over 70 years’ experience in the production of aluminium with special competence in high-strength sheet and plate. Helmut Wieser, CEO of AMAG Austria Metall AG said: “In today’s fast moving markets, our sales team in Asia is essential to understand customer requirements for innovative and eco-friendly material solutions. Thanks to our customers and business partners, 2014 was a record year in Asia, driven by sales of specialty aluminium coil, sheet and plate for demanding processes and applications.” In 2014 AMAG successfully commissioned new hot rolling and plate facilities to increase annual...
Altech Chemicals Ltd raises $1.13M for detailed design phase of HPA Project
Altech Chemicals Limited is pleased to advise that it will raise a total of $1.130 million via share placement, for the commencement of detailed design work for the company’s high purity alumina (HPA) project and for corporate and general working capital purposes. The company will issue a total of 19,144,068 fully paid ordinary shares at $0.059 per share. The majority of the placement ($1.0 million) will be to Malaysian cornerstone investor Melewar IIC Limited (Melewar). Melewar is a diversified Malaysia industrial firm with steel, energy and engineering businesses, and as a result of the placement Melewar will become the second largest shareholder of the company, holding approximately 12.9% of shares on issue. The company has invited Melewar to nominate a Malaysian based non-executive...
PT WHW targeting alumina production in 2016
PT Well Harvest Winning Alumina Refinery (WHW) development project continued speeding the processing of bauxite into alumina. Li Yu Yong, Project Leader alumina smelter PT WHW, said that the company had already begun construction. This phase has been underway since 2013 and is scheduled for completion later this year. Alumina refining is the first in Indonesia. "We are targeting next year to start production," Li said in Ketapang, West Kalimantan. The new plant is slated to produce as much as 1-4 million tonness of refined alumina per year. Later in the period 2018-2020, the capacity will be increased to 6-9 million tonnes per year and in the long term over 2021-2043, the production will go up to around 9 million to 12 million tonnes per year. "Until 2043, we target to produce 255 million...
Centre insists on DGPS survey before grant of bauxite leases to L&T
The Union Mines Ministry has stressed on Differential Global Positioning System (DGPS) survey of Kutrumali and Sijimali bauxite deposits before grant of mining lease (ML) to engineering & construction major Larsen & Toubro (L&T). "Apart from the survey, there is no other roadblock for L&T to get the ML", said an official source. Since L&T already has a subsisting prospecting license (PL) over these twin deposits, it is hopeful to bag them. Both Kutrumali and Sijimali, spread across Rayagada and Kalahandi districts, have combined reserve of 300 million tonne of bauxite. Despite being a PL holder over Kutrumali and Sijimali bauxite leases, L&T's bid to bag the deposits had come unstuck. The lack of any end use plant had aborted L&T's earlier attempts of winning the ML. L&T had won PL for...
GMDC reports 44% fall in Q1 net profit
Gujarat Mineral Development Corporation (GMDC) has reported results for first quarter ended June 30, 2015. The company has reported a fall of 43.66% in its net profit at Rs 73.54 crore for the quarter ended June 30, 2015 as compared to Rs 130.54 crore for the same quarter in the previous year. The company’s total income has decreased by 21.67% to Rs 356.74 crore for the quarter under review, from Rs 455.41 crore for the corresponding quarter of the previous year. GMDC is engaged in business of mining and mineral processing. The company manufactures two grades of fluorspar namely acid and metallurgical. It owns two bauxite reserve located at Kutch and Jamnagar.
Jaguar to build lightweight aluminium Land Rovers in its new Slovakia plant
Jaguar Land Rover has announced the location of its new production facility in central Europe. It is to come up near Nitra in western Slovakia. There were speculations regarding the location of the company’s latest plant, with Poland being considered as the preferred site in eastern Europe. However, JLR has confirmed it has finally signed a letter of intent for the potential development of a new factory in Slovakia. JLR is the manufacturer of the highly fuel-efficient aluminium-intensive XE. The upcoming facility is intended to help the company substantially scale up its production, with a feasibility study set to explore plans to create capacity for up to 300,000 vehicles. This could help boost JLR’s global output taking it to around 800,000 vehicles per year. JLR has confirmed the new...
