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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Summit Racing Equipment launches Brodix BR Series aluminum cylinder heads for GM LS
Summit Racing has launched a new Brodix BR Series of aluminum cylinder heads for LS3 and LS7 engines. Brodix BR7 cylinder heads feature 262cc CNC-ported rectangular port intake runners that flow over 360 cfm of air. The BR7 STS cylinder heads are a step up from the standard BR7s. They have 264cc CNC-ported intake runners that flow over 375 cfm, plus CNC-machined 71cc combustion chambers and 1.350 inch diameter valve springs rated to .700 inches of valve lift. Assembled heads come with valve locks, retainers, and seals. A 4.125 inch minimum cylinder bore size is recommended for the BR7 and STS BR7 cylinder heads. They are also available as bare castings. The new aluminium cylinder heads are engineered to give more horsepower to the GM LS engines.
GM turning to aluminum for next-gen pickup trucks
Following Ford’s lead, GM is turning to aluminum and lightweight steel for its next-generation of pickup trucks and SUVs. The American automaker has announced that it will be investing $877 million to overhaul its factory in Flint, Michigan, that is in charge of producing pickup trucks. The investment is part of a plan to expand a trio of U.S. truck plants, installing new assembly lines, body welding shops and paint operations to accommodate future generations of Silverado pickups and SUVs including the Chevrolet Tahoe and Cadillac Escalade. People familiar with the automaker’s plans revealed that GM’s next-generation trucks and SUVs will use various materials, including aluminum and lightweight steel to help drop weight and improve fuel economy, similar to a move Ford made with its...
William King and Snelsons join Aluminium Federation
West Bromwich-based William King and Winsford-based Snelsons are the latest companies to join the Aluminium Federation. William King, which employs around 150 people, began life as an ironmongers in the 1820s, expand during the nineteenth century to incorporate iron and steel warehousing, trading and tinplate production. Today William King supplies metal products globally, and is an industry leader in the supply of steel strip mill and aluminium products. The company supplies all the major metal consuming sectors, including the automotive, consumer durable, packaging and construction industries. While the company’s success was traditionally founded on steel, in recent years aluminium has become an important part of its business especially that connected with automotive Tier 1 stampers and...
No immediate plans to shut down bauxite mining operations in Pahang
The Pahang government has no plans to immediately shut down bauxite mining operations here despite reports of the hazards to public health and environment. Menteri Besar Datuk Seri Adnan Yaakob said a shutdown order could not be issued as “issues like loss of income for landowners, mining workers, including lorry drivers, needed to be considered too. But our main concern is to protect the health of the people and the environment.” Adnan said the state Department of Environment (DoE) had, on Monday, sent samples of earth, water and bauxite to the Atomic Energy Licensing Board (AELB) headquarters for analyses to verify the radiation levels. “The result will only be known in a month. We cannot say for certain now whether the radioactive levels are safe. For the time being, we allow the...
Altech Chemicals MD brings high purity alumina to Proactive's Luncheons
Altech Chemicals managing director Iggy Tan outlined the company's focus of becoming a world leading producer of high purity alumina (HPA) at Proactive's Sydney / Melbourne Luncheons this week. Currently 70% of HPA demand is in the Asia Pacific region, providing the opportunity for Altech. Altech’s HPA plant is Malaysia is therefore well-positioned to service the region. Tan said that high purity alumina will be part of the next “new age materials boom,” just like rare earths, lithium and graphene. Altech is currently targeting around $55 million in project debt, and has commenced discussions with Asian banks. Malaysia HPA Plant: - Capital cost estimate US$76.9 million. - Payback period 3.8 years. - Pre-tax NPV10 of US$326 million. - Highly attractive IRR of 30.3%. - LT sale price...
Aluminium hits six-year low on firmer dollar
Aluminium hit a six-year low on Wednesday while other base metals also slipped as the dollar strengthened on speculation that the United States was closer to raising interest rates, a view bolstered by strong economic data. But losses were held in check after data showed activity in the services sector of China, the world's top metals consumer, expanded in July at its fastest pace in 11 months. Markets were pressured by the dollar hitting a 3-1/2 month peak against a basket of currencies after a voting member of the U.S. Federal Reserve's policy-setting committee expressed support for an interest rate rise in September. The dollar was also boosted by data on Wednesday showing the pace of growth in the U.S. service sector surged in July to its strongest level in a decade. A stronger dollar...
Aluminum production continues at Noranda's New Madrid plant following damage to casthouse
Noranda Aluminum Holding Corporation announced today that molten aluminum production at its New Madrid, Missouri aluminum plant is continuing at the same level as before an explosion yesterday in that facility's casthouse. Although the incident affected the company's production of extrusion billet, the company is redirecting that portion of the plant's molten aluminum output to other saleable products such as redraw rod and aluminum ingot. "We are thankful that no serious injuries occurred as a result of yesterday's incident," said Layle K. "Kip" Smith, Noranda's President and Chief Executive Officer. "We are investigating the incident's cause and assessing the damage to the casthouse. Once that assessment is complete we will determine the necessary steps and timeline for restoring our...
LME aluminium to hover above $1,603
LME aluminium has found a support at $1,603 per tonne, and may hover above this level or rebound to $1,653. The support is provided by the 100 percent Fibonacci projection level of a downward wave C, the third wave of a three-wave cycle that developed from the Sept. 2, 2014 high of $2,119. This wave may end either around this support or extend into a much lower range of $1,371-$1,459, formed by the 161.8 percent and the 138.2 percent levels. Regardless of a possible extension of this wave, aluminium may first bounce towards $1,653, the 86.4 percent level.
Constellium reports second quarter 2015 financial results
Constellium N.V. reported results for the second quarter ended June 30, 2015. Highlights below are in comparison to the second quarter of 2014. • Shipments of 386 thousand metric tons, up 38% • Revenue of €1.375 billion, up 49% • Adjusted EBITDA of €93 million, including €19 million from Muscle Shoals adjusted for Midwest premium impact • Strong Adjusted Free Cash Flow of €72 million and liquidity of €690 million • Automotive rolled shipments up 18%; Automotive extruded shipments up 16% • Muscle Shoals operational integration progressing well, still working through metal management issues • Q2 2015 Diluted EPS of (€0.45), EPS excluding unrealized gains on derivatives of (€0.61) Constellium’s second quarter 2015 results include a record Adjusted EBITDA in our AS&I segment and better than...
Aluminum processing industry booming in inner Mongolia
Aluminum processing industry is developing in full swing in Huolingol Industrial Park, Inner Mongolia. Inner Mongolia Jinlian Aluminum Co. has partially finished construction of its 3 million-tpy aluminum plate, strip & folil project, whose investment totals 100 billion yuan ($16 billion). Main body of workshop for 2.5 billion yuan ($400 million) light gauge aluminum foil project is scheduled to be completed later this year. The project is co-invested by Inner Mongolia Jinlian Aluminum Co. and Zhejiang Dingsheng Aluminium Industries Co.
Alcoa raises criticism of CFTC over LME warehouse reform
Alcoa ramps up its criticism of the Commodity Futures Trading Commission (CFTC)'s intervention in the London Metal Exchange's warehousing reform plan, challenging the commodity regulator's handling of the issue for a second time in as many months. In a letter late last month, Alcoa general counsel Max Laun called on CFTC chairman Timothy Massad to retract the regulator's decision to delay ruling on the LME application to register as a "foreign board of trade" in the U.S. The letter again accused the CFTC of overstepping its authority in attempting to regulate a foreign exchange as it privately pushed for the LME to introduce reforms, including a cap on rents at warehouses. The move shows rising concerns among aluminum producers about the impact of the LME rule changes on prices, which...
Global bauxite reserves stand at 28.1bnt as of January 2015
Global bauxite reserves were estimated to be 28.1 billion tonnes (bnt) as of January 2015. The production rose on the back of buoyant demand for aluminium in the global market place. In 2014, production of bauxite was 263 million tonnes (mt), down by 3.7 per cent from same period previous year. A recent research revealed that Guinea with the largest bauxite reserves of 7.4bnt contributes about 26 per cent of the global reserves, followed by Australia with 6.5bnt. Deposits at Weipa mines in Queensland and Gove in the Northern Territory, both in Australia, have been found to have grades between 49–53 per cent of alumina, and are amongst the world's highest grade deposits. There is a host of planned projects on anvil. Investments are also being made in smelting and processing as aluminium...
The Aluminum Extruders Council comments regarding blockbuster report on China Zhongwang Holdings Ltd.
Earlier this week a report surfaced on the Internet that contained a scathing series of allegations against China Zhongwang Holdings Ltd, which is reportedly the second largest extruder in the world. The report, from Dupre Analytics, contends that Zhongwang’s chairman, Liu Zhongtian, and his family have developed a “network of proxies and intermediaries outside of China, and used them to secretly set up entities and aluminum processing facilities that span the globe.” AEC Director of Operations, Jeff Henderson, said, “If proven to be true, these allegations make it clear that Zhongwang investment and penetration into North American and Asian markets has been built on a house of cards. Our industry has read about and seen the pictures of the one and a half billion pounds of extrusions that...
First Bauxite receives NI 43-101 Compliant Technical Report for its Feasibility Study on Bonasika bauxite project
On behalf of the Board of Directors of First Bauxite Corporation, Alan Roughead, President and CEO announced that First Bauxite Corporation has received the NI 43-101 Compliant Technical Report with respect to its Feasibility Study to produce ceramic proppants from its Bonasika bauxite project. On June 18, 2015 the Company announced the FS results for the Project. A copy of the Technical Report has been filed with the applicable securities and regulatory authorities in Canada. The Technical Report was prepared by Ausenco Engineering Canada Inc. First Bauxite Corporation (FBX) is a Canadian natural resource company engaged in the exploration and development of bauxite deposits in Guyana, South America. The Company has its head office in Toronto and is managed by experienced professionals...
Fresh selling seen in aluminium, open interest up 3.75%
Aluminium settled down -0.34% at 102.55 traded under pressure from a globally oversupplied market due to Chinese exports. Three-month Lme aluminium earlier touched a six-year low at $1,601.50 a tonne, a drop of more than 20 percent since early May. The metal used in transport and packaging ended at $1,612, down from $1,618 on Friday. Slowing Chinese economy and poor market fundamentals should keep LME aluminum in check around USD 1,600/mt on Tuesday. Production cuts in China cannot offset growing new capacity and falling consumption. While LME aluminium and ShFE aluminium steadied from six-year and record lows respectively, trapped by a swelling global surplus. Also US factory activity slipped in July and consumer spending advanced at its slowest pace in four months in June, indicating...
Large explosion rocks Noranda's southeast Missouri aluminum plant
A massive explosion rocked a southeast Missouri aluminum plant Tuesday, injuring some workers and creating a plume of smoke that could be seen for miles. The explosion and fire occurred around 12:30 p.m. at the Noranda Aluminum plant near the town of Marston in New Madrid County, about 170 miles south of St. Louis. Noranda spokesman John Parker said all workers had been accounted for and there were no life-threatening injuries. He said some people suffered what appeared to be non-critical burns and smoke inhalation. Parker said one of the injured workers was taken to a hospital for treatment. Others were treated at the scene. Parker said a molten metal explosion occurred in the cast house of the plant, where aluminum is converted into finished products. Production in the cast house has...
Chinese aluminum scrap prices declined on SMPI on 31st July
The Chinese aluminum scrap prices declined marginally on the Scrap Monster Price Index on July 31st, Friday. 6063 Extrusions witnessed a price decline of CNY 150 per MT over the previous day. Aluminum Ingots and Transformers prices declined by CNY 150 per MT and CNY 100 per MT respectively. E.C Aluminum Wire prices dropped by CNY 150 per MT to touch CNY 12,000 per MT. Old Cast prices too witnessed a down move of CNY 100 per MT. The prices of Aluminum Radiators and Old Sheets saw a down move of CNY 100 per MT. UBC and Zorba 90% INF prices declined by CNY 100 per MT each from the previous day levels. Other non-ferrous scrap prices too witnessed marginal decline during the day.
Ford's focus on aluminium body vehicles spurs competition among steelmakers
A joint venture steel plant AM/NS Calvert, in Alabama is preparing to produce the latest generation of ultra high-strength steel for the North American auto industry. Ford's decision to make the body of one of its best sellers F-150 pickup out of aluminum is pressing the steel industry to respond to the escalating struggle to cut vehicle weight. The Calvert partners, Luxembourg-based ArcelorMittal and Japan-based Nippon Steel & Sumitomo Metal Corp., are investing $80 million to improve the Calvert plant. ThyssenKrupp sold the plant to the two partners in February 2014. Shipments of ultra high-strength steel from Calvert to carmakers are expected to begin in early 2017. Despite all the efforts from steel industry players to position steel ahead of aluminium for automotive body making, the...
