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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Novelis reports net loss of $60m in Q1 FY 2016: Automotive production up
Novelis, the world leader in aluminum rolling and recycling, today reported a net loss of $60 million for first quarter of fiscal year 2016. Excluding certain tax-effected items, the company reported net income of $24 million in the first quarter of fiscal 2016 compared to $28 million in the first quarter of fiscal 2015. Highlights • Net loss $60 million; excluding certain items, net income $24 million • Global FRP shipments of 768 kilotonnes in line with prior year • Adjusted EBITDA excluding metal price lag down 9 percent to $212 million • Global automotive production surges to meet growing customer demand • Record automotive shipments up 68 percent YoY reflects focus on premium product growth Excluding the impact of non-operational metal price lag in both periods, Adjusted EBITDA was...
Fresh selling seen in aluminium, open interest up 1.96%
Aluminium settled down -0.2% at 100.35 even after Century Aluminium curtailed capacity at one of its four smelters. Prices also seen under pressure as the market focused on a growing supply glut due to surging exports from top producer China and high stocks. China's exports of primary aluminium rose to 20,412 tonnes in the first six months of the year, a surge of 66 per cent from the same period a year ago. But the more pressing worry is exports of semi-finished aluminium products, which at 2.22 million tonnes have jumped 44 per cent. Stocks of aluminium in LME approved warehouses stand at around 3.4 million tonnes, but that does not include stocks held off exchange and by producers. Norsk Hydro, one of the world's biggest aluminium producers, last month estimated global inventories at...
Trulite Glass and Aluminum plans $119,500 worth expansion in Grenada
Officials from Trulite Glass and Aluminum Solutions recently announced the company is expanding operations at its facility in Grenada. The project represents a corporate investment of $119,500 and will create 15 jobs, bringing employment at the facility to 133. "I appreciate the team at Trulite Glass and Aluminum Solutions for choosing to expand its capacity in Grenada and create new jobs for the area's workers," Gov. Phil Bryant said. "Mississippi's existing companies are significant contributors to local economies and the state as a whole, and when they choose to grow in our state, it serves as a testament to the competitive business advantages Mississippi offers companies seeking long-term growth and success." "This opportunity to add jobs and expand production capabilities will serve...
China aluminum alloy wheel exports down 6% in June
China reported decline in both volume and value of its aluminum alloy wheel exports in June, according to the China Association of Automobile manufacturers (CAAM). Export quantity fell 6.0% year-on-year (YoY) to 60,000 tonnes in June, and export value also dropped 5.9% YoY to $300 million, CAAM data showed. Export volume and value in H1 totaled 383,700 tonnes and $1.93 billion, respectively, up 1.5% and 2.4%, from a year ago. The US was top export destination in terms of export value during H1, followed by Japan, Mexico, India and Canada.
Novelis appoints Steve Fisher President and CEO
The Novelis Board of Directors today announced that it has named Steve Fisher as its President and Chief Executive Officer, effective immediately. Fisher previously held the position of Chief Financial Officer and has been serving as Interim President and Chief Executive Officer since April 2015. He will continue to serve as Chief Financial Officer until a successor is named. Steve Fisher has been named President and Chief Executive Officer of Novelis. "Following a period of rapid expansion, Novelis is now focusing on maximizing the performance of its business," said Mr. Kumar Mangalam Birla, Chairman of the Board of Directors of Novelis. "There is no better person to lead Novelis through this transition than Steve Fisher. Throughout his nine-year tenure, Steve has demonstrated extensive...
Noranda receives continued listing standard notice from NYSE
Noranda Aluminum Holding Corporation announced today that it received written notice from the New York Stock Exchange (NYSE) on August 7, 2015 that the company is not in compliance with one of NYSE's continued listing standards because the average global market capitalization of its common stock over a 30 trading-day period was less than $50 million and, at the same time, stockholders equity was less than $50 million. Under NYSE rules, the company must notify the NYSE, within 10 business days after receiving the notice, if it intends to submit a plan that will advise the NYSE of definitive action it has taken, or is taking, to bring it into conformity with the listing standard within 18 months of receipt of the notice. The company must provide such a plan within 45 days after receipt of...
Aluminium needs new driver to boost demand, observes BofAML
The global economy lacks an immediate driver that could boost global growth and aluminium demand, according to Bank of America Merrill Lynch. Digging a bit deeper on economic activity, China’s recent GDP report is a case point: while the country is stabilising, much of this was driven by relatively poor quality growth, including rising activity in financial markets, the bank said. A cyclical rebound is Merrill Lynch's base for the coming weeks, but China’s economic restructuring will continue. This suggests that most metals are in need of a new structural growth driver, making production curtailments, especially on aluminium, even more essential. Correlations between metals prices were high ahead of the Great Financial Crisis (GFC) and in the immediate aftermath of it. Prior to the GFC,...
Goldman Sachs cuts aluminum outlook predicting glut through ’19
Goldman Sachs Group Inc. reduced its aluminum price forecasts by at least 21 percent from 2016 through 2018 because of a global surplus. The bank cuts its predictions to $1,525 a metric ton in 2016, to $1,625 in 2017 and to $1,700 in 2018 from $1,925, $2,100 and $2,200 as it projected a glut of about 2.5 million tons to 3 million tons from 2016 to 2019. Prices fell to a six-year low on the London Metal Exchange this month as exports from China surged. While shipments from the country, the world’s biggest producer, fell in July from the highest level this year, they have still increased 28 percent in the first seven months from a year earlier, customs figures showed on Saturday. A balanced market will be difficult to achieve because most of the easy cuts outside of China have already been...
Altech Chemicals focuses on low-cost High Purity Alumina production
Altech Chemicals is positioned to transition into a leading producer of 99.99% (4N) High Purity Alumina (HPA) at a low cost. The company's focus is to produce HPA directly from kaolin clay which will be sourced from the company’s 100% owned kaolin deposit at Meckering, Western Australia. Around 70% of HPA demand is in the Asia Pacific region, and Altech’s HPA plant in Malaysia would be well-positioned to benefit. The company has now raised A$1.13 million at A$0.059 for a detailed design phase of the company’s HPA project. A$1 million of the placement went to Malaysian cornerstone investor Melewar IIC Limited. Melewar's executive chairman, Royal Highness Prince Ya’acob Bin Tunku Tan Sri Abdullah, said that Altech’s High Purity Alumina Project is very exciting, and that he looked forward to...
First bauxite shipment leaves Guinea Boke for Hongqiao Group
China Hongqiao Group began its first shipment of 180,000 tonnes of bauxite from the Port of Boke, Guinea on July 20. China Hongqiao Group, together with other companies, established Boke Mining Company and started port project at the Port of Boke to develop bauxite in Guinea. They have built two bauxite berths, one heavy cargo berth, as well as loading belts. The port's annual capacity is designed to handle 10 million tonnes, and is expected to rise to 30 million tonnes in coming three years. Annual bauxite shipment to China is scheduled to reach 20 million tonnes by 2016. Bauxite in Boke enjoys higher grade than ores from other countries, such as Indonesia, Malaysia, Australia and India. As such, costs for producing alumina with Guinean bauxite are comparatively lower, thus making up for...
Guinea renews bauxite contract with Iran
Guinea has renewed a 25-year agreement with the government of Iran to allow it to start producing bauxite, according to official sources and documents seen by Reuters on Sunday. Iran will hold a 51 percent stake in the project, the Societe des Bauxites de Dabola-Tougue (SBDT), which permits production over 5,684 square kilometres once a fresh feasibility study has been conducted. Guinea holds the minority stake, according to the contract, first signed in 1992. The documents were signed at the end of July by Guinean Minister of Mines Kerfalla Yansané and Iranian Minister of Industry, Mines and Trade Mohammad Reza Nematzadeh. The concession includes 13 bauxite plateaus at Dabola and 12 at Tougue, both in central Guinea, which have a combined reserve of 600 million tonnes. A study in 2010...
Rio Tinto to decide on $1.45bn Weipa mine by 2015 end
A decision on the $1.45 billion South of Embley bauxite project at Weipa is to be made by the end of the year 2015, confirmed officials at Rio Tinto. Despite Rio Tinto reporting a first half year net profit slumping 43 per cent to $3.98 billion as falling iron ore, coal, copper and aluminium prices took their toll, it still plans about $8 billion in capital expenditure next year and a return to $9.5 billion in 2017. Growth projects being factored in to this number include the South of Embley bauxite project and its 1200 jobs. The half yearly report said feasibility studies were “progressing as planned” for South of Embley, described as a 22.8 million tonne a year “tier one investment opportunity on Cape York” with mining costs expected to be in its first quarter of development. As per...
"Lotus has been producing cars with aluminum riv-bonded chassis for several decades", GREGORY E. PETERSON, Senior Technical Specialist, LOTUS ENGINEERING
GREGORY E. PETERSON is a Senior Technical Specialist in LOTUS ENGINEERING. Gregg's responsibilities include lightweight structures, transferring emerging technologies into commercial opportunities and program management. He has led numerous lightweighting programs for both automotive and non-automotive applications, including aerospace, commercial vehicles and agriculture. He is one of the expert OEM led speaker faculties in the Global Automotive Lightweight Materials Detroit 2015 to be held on August 18 - 20. An excerpt from his Pre-Conference Interview: What do you see as being the primary barriers to the wider application of lightweight materials in the automotive industry at the moment? The primary barriers that I see are cost, infrastructure and experience with the specific...
Reynaers introduces energy efficient aluminium glazing products
Reynaers Aluminium, the UK’s leading aluminium glazing systems maker has introduced all new aluminium curtain walling products as a part of its "At Home" range of glazing systems. Working in conjunction with CF 77 bi-folding doors and CS 68 aluminium doors and windows, Reynaers’ curtain walling product CW50 has been used to maximise the amount of light and space in the property. The property, named as Green Acres is constructed by Fusion Glazing; the fabricators have incorporated energy efficient materials, such as triple glazing in it. The products are strong and thermally efficient. Photovolatic panels can also be installed in them- a property which makes the glazing products even more versatile. Reynaers at Home offers a series of solutions for different projects. Its aluminium curtain...
Balco plea to accept winning bid for Chhattisgarh mine rejected
The government has rejected a plea of Bharat Aluminium Company (Balco), a Vedanta group firm, to accept its winning bid for an auctioned coal mine in Chhattisgarh. The government had in March rejected bid by Balco citing low prices and handed over the mine to Coal India. The company had moved Delhi High Court. The court had asked the government to consider Balco's plea afresh while appointing Coal India as a temporary custodian. The company had in its plea told the coal ministry that the coal in the Gare Palma IV/1 mine was of inferior quality than that mentioned in the bid documents. The company had also said that the block received less value as it did not have any coal evacuation system. It also cited that the winning company for the block would have to take host of regulatory...
Aluminum products exports by China decline from six-month high
Aluminum shipments from China, the world’s biggest producer, fell from the highest level this year amid a decline in global prices. Sales of unwrought aluminum and products slumped 20 percent to 360,000 metric tons in July from 448,980 tons in June, preliminary customs data showed Saturday. While monthly exports dropped, shipments climbed 28 percent to 2.87 million tons in the first seven months, the data showed. China is heading for the slowest economic expansion since 1990 and faltering domestic demand combined with excess capacity has spurred a surge of aluminum and steel supply onto world markets, pressuring foreign producers. Prices of the metal used in everything from cans to aircraft fell for the third month in July, declining 4.3 percent, and lost 14 percent this year.
Pennex Aluminium unveils $38 million expansion at Leetonia location
Pennex Aluminum Company unveiled their new $38 million expansion of their extrusion and fabrication line at their Leetonia location last week. The facility now has two large aluminum press lines that company officials say are the most innovative of their kind in the world. The expansion was made possible through a 15 year tax abatement from Leetonia and a 45%, six-year tax credit from the state of Ohio. Ohio Lt. Governor Mary Taylor, says, "Being able to step in with a job creation tax credit certainly is helpful when you have businesses like this looking at various opportunities to expand knowing they could have expanded in Pennsylvania. Of course we want to be able to compete and I think that was very helpful." Pennex makes a lot of different kinds of parts for different kinds of...
Mines auction likely from Oct-Nov; Centre clears 58 blocks in 12 Indian states
The much-awaited auction of mineral-bearing mines, including with iron ore and bauxite, is expected to start from October-November with the Centre handing over a list of 58 explored blocks to 12 producing states. "Mines auction is expected to begin from October-November. MECL has handed over reports of 58 blocks, which can be auctioned immediately, to states," said Steel and Mines Minister Narendra Singh Tomar. Tomar said auction of minerals comes under the domain of states and the Centre has facilitated ground for auction by bringing in transparency and addressing problems in procedural delays. The state governments will have to do field work besides other formalities before auctions. The Centre has spent Rs 350 crore on detailed exploration of 155 blocks. The Mineral Exploration...
