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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Ess Dee Aluminium to consider financial results on Aug 14, 2015
A meeting of the Board of Directors of Ess Dee Aluminium Ltd will be held on August 14, 2015, to consider and take on record the unaudited financial results of the company for the quarter ended June 30, 2015. The trading window for trading in the securities of the company shall remain closed from August 03, 2015 till 48 hours after the announcement of the outcome of the board meeting. Accordingly all officers and designated employees (including Directors) of the company have been intimated not to enter into any transaction involving the securities of the company during the aforesaid period of closure of Trading Window. Shares of ESS DEE ALUMINIUM LTD. was last trading in BSE at INR 366.3 as compared to the previous close of INR 361.8. The total number of shares traded during the day was...
North American Aluminum scrap prices edged higher
The North American Aluminum scrap prices ended marginally higher on ScrapMonster Price Index as on July 30th, 2015. 1100 Scrap prices moved higher by $0.01 per Lb. The prices of 3003 Scrap too increased $0.01 per Lb. 356 Aluminum Wheels prices held steady over the day. Meantime, 5052 Scrap and 6061 Extrusions price saw marginal increase of $0.01 per Lb over the day. 6063 Extrusions and 6063 Extrusions/Fe prices too were up by $0.01 per Lb. The prices of Al/Cu Radiators and Al/Cu Radiators/Fe remained flat. The prices of Aluminum Radiators witnessed marginal rise of $0.01 per Lb. Meantime, Aluminum Radiators /Fe prices appreciated by $0.01 per Lb. Aluminum Transformer prices too were up by $0.01 per Lb on 30th July. Breakage 50% Recovery prices held steady over the previous day. Chrome...
LME aluminium to fall further to $1,600/mt, SMM reviews
LME aluminum drifted lower after opening at USD 1,641/mt last Friday. It rallied to USD 1,643/mt at one point as weak US economic data softened the US dollar. However, it fell back later as the US dollar regained strength, and ended at USD 1,620/mt. Trading volumes were up 4,689 lots to 13,124 lots, and positions were down 619 to 879,000. Crude oil futures prices recorded its biggest single day decline since the 2008 financial crisis on July 31. OPEC expressed no intention of production cuts, and drilling activity in the US increased, causing crude oil to fall. Last Friday night, SHFE 1510 aluminum contract moved below the 5-day moving average after opening at RMB 12,245/mt, and finished the night session at RMB 12,225/mt. Trading volumes were down 16,690 lots to 10,924 lots, and...
Agreement should keep Tiwai Point aluminium smelter open
The future of the Tiwai Point aluminium smelter looks assured after South Island power generator and retailer Meridian Energy signed a variation to its existing deal with the Rio Tinto-controlled with New Zealand Aluminium Smelters Ltd (NZAS). NZAS had the right to terminate the existing contract today with effect from 1 January 2017. By signing this variation, the right has been waived. "It has been a complex and demanding negotiation, but this is a good outcome for Meridian," Meridian chief executive Mark Binns said in a statement. NZAS said the deal would allow the smelter's three potlines to remain fully operational. Chief executive Gretta Stephens said this was good news for the NZAS workforce, Southland and New Zealand. "We have crossed a hurdle today and now have more certainty...
Falling power costs cut China aluminum smelting costs in July
The average cost at Chinese aluminum smelters dropped 3.57% month-on-month in July, driven by lower power costs, SMM survey showed. Power costs fell 7.8% compared with June. Some aluminum smelters have received preferential power tariffs due to China’s power reform. Smelters with captive power plants benefited from falling coal prices. These positive factors allowed the average power tariff at those surveyed to fall to 0.3 yuan/Kwh, down 0.045 yuan/Kwh from early June. Alumina cost slid 0.82% on a monthly basis.
Vedanta Aluminium focuses on restructuring; ramp up plans stalled for now
Anil Agarwal led Vedanta Resources said it is planning to restructure high-cost operations in aluminium segment and has suspended ramp-up at its plant due to volatile commodity market. The mining conglomerate has been facing a challenging environment as global commodity prices are undergoing a volatile phase leading to downward pressure on prices, affecting the company's profit and revenue. "In light of the low LME (London Metal Exchange) prices and premiums we are reviewing restructuring some of our high cost operations in the Aluminium segment," Vedanta Resources said in a statement. EBITDA (operational earnings) for the June quarter was significantly lower and negative at USD (1.9) million due to reduced LME and metal premiums and USD 37 million provision made for RPO for previous...
Indigenous initiatives fill void left after Rio Tinto's exit from Nhulunbuy
Indigenous businesses in north-east Arnhem Land are finding opportunities in the void left by the loss of Rio Tinto's alumina refinery, which was once the largest employer in the town of Nhulunbuy. Rio Tinto closed the Gove alumina refinery last year. Since then, economic development has been a focus for the Gumatj leaders who are expected to use this weekend's Garma festival to showcase their economic projects and announce a new agreement with the Commonwealth aimed at giving traditional owners greater control over economic development on their land. The CEO of the Gumatj Corporation Klaus Helms said the town had changed since the "curtailment" of the refinery. "What I have noticed is that the town is not reflecting a mining town anymore but becoming a regional town," he said. Mr Helms...
Orbite announces second quarter 2015 results and provides update on HPA construction
Orbite Technologies Inc announced today the filing of its Consolidated Interim Financial Statements for the second quarter ended June 30, 2015 . The Company reported a net loss of $3.7 million (or $0.01 per share) for the second quarter, as compared to a net loss of $4.3 million ( $0.02 per share) for the same period in 2014, representing a decrease of 12.7%. The company also reported a net working capital of $8.5 million. All dollar amounts are in Canadian dollars unless stated otherwise. Second Quarter Major Highlights: • The Company completed several financing initiatives during the quarter towards the funding of its HPA facility. • Orbite received a $2 million installment and announced it would be receiving an additional $3.0 million installment from the Government of Québec towards...
Construction starts on Mining Training Centre for the Yolgnu people
A new Mining Training Centre being developed for the Yolngu people of northeast Arnhem Land with $2.4 million in support from Rio Tinto will have the capacity to train up to 24 people at a time. Construction of the new Centre is set to start on the Dhupuma Plateau site, where accommodation and a small-scale bauxite mining operation is being established by the Gumatj Corporation. A sod-turning ceremony was held at the site today as part of the 17th annual Garma gathering. Gumatj Corporation Deputy Chairman Djawa Yunupingu said “Training Yolngu people in mining operations will help create long-term employment opportunities for the local community. “We're developing a sustainable bauxite operation that will deliver on-the-job training, guaranteed work for our graduates, as well as providing...
Aluminium demand picks up in China with improved domestic macro-economy
Demand for aluminium has gradually picked up in China along with improved domestic macro-economy. Especially in domestic real estate market, the sales volume and selling price of apartment and house have rebounded. Domestic aluminium price has declined significantly. There is an expectation that production cut of high-cost capacity will happen again in domestic aluminium smelting sector in the coming months, which will further ease the surplus on domestic aluminium market. According to China Nonferrous Metals Industry Association (CNIA) China’s consumption in 2015 is forecast to grow at a lower rate than previous years, at 6 per cent, facilitating 25.5Mt of consumption. Demand will continue to be underpinned by consumer durables and the automotive industry. World aluminium consumption is...
Chinese alumina refineries operating at full capacity despite dropping price
Chinese domestic alumina refineries are still operating at full capacity despite the fall in aluminium price. However, the alumina price has been dropping over the last few months as domestic aluminium smelters buy the raw materials “hand-to-mouth” in view of the falling aluminium price. According to an Antaike Report, Alumina Production in China has increased close to 11% year to date between 2014 and 2015 (Antaike). Alumina prices have also reduced from US$335/tonne freight on board (FOB) Australia in March to stand currently at US$318/tonne FOB Australia (CBIX report)). The recent signing of the free trade agreement between Australia and China is anticipated to boost Australian export of bauxite and alumina to China.
China’s bauxite imports 27% higher in Jan-May 2015 compared to same period in 2014
Following the Indonesian Bauxite ban in January 2014 high-quality bauxite stockpiles and reserves in China are being depleted, and China continues to look for new import markets. Towards the end of 2014 there was a substantial pick-up in Malaysian bauxite exports to China, with lower-cost product being shipped based on lower freight costs. The bauxite stockpiling in China during 2013 had a dampening effect on potential sharp price increases. However these stockpiles have reduced over time and it is expected that China’s imports will now facilitate further upward movement of the bauxite unit value in 2015. According to Antaike, China’s imports of bauxite reached 3.8Mt in May 2015 with a total 18.6mt in the first five months of 2015, 27% higher than the same period in 2014, but a 44%...
LME aluminum to fall to $ 1,630-1,660 next week
LME aluminum will fall to $ 1,630-1,660 per tonne next week, Shanghai Metals Market foresees. Expectations for US interest rate hike will keep the US dollar index elevated, thus pressuring LME aluminum. Selling pressure at highs and tumbling Chinese stock market will send SHFE 1510 aluminum contract down to 12,150-12,300 yuan per tonne.
Ball runs into antitrust wall over Rexam purchase
The ball is in the European Union's court. The $6.8 billion merger between the world's two biggest can and bottle manufacturers looks like it is running afoul of European antitrust concens. Earlier this year, the top can maker, Ball, offered to buy No. 2 manufacturer Rexam in a cash and stock deal that would create a combined company with $15 billion in sales and generate $300 million in annual cost savings. The bid was a 17% premium to Rexam's closing price the day before the offer was announced. Ball counts companies such as Coca-Cola, Unilever, and Molson Coors among its customers, while Rexam also provides Coke with containers as well as Anheuser-Busch InBev. Each has slightly more than 20% of the global packaging market with third place Crown Holdings owning a 19% share. Reuters...
Ford's aluminum F-150 to cost more for repairs, insurer group says
Ford’s revolutionary aluminum-body F-150 pickup truck does well in most crash tests but is significantly more expensive to repair, according to an analysis by the Insurance Institute for Highway Safety. That means buyers of the truck, the first to use the lighter-weight metal extensively, probably will pay more in out-of-pocket expenses after a crash and might ultimately have higher insurance premiums, the insurance trade group said. The F-150 has been America’s bestselling vehicle for 33 consecutive years. The company has sold about 400,000, or about 4% of the autos sold so far this year. The institute put the truck through a series of crash tests and found the vehicle’s performance varied, depending on the model. The F-150 crew cab, which Ford calls the “SuperCrew,” posted “good”...
Arab exports to Brazil hit $3.37 billion in H1 of 2015
Arab nations exported $3.377 billion worth of products to Brazil during the first half of 2015, according to the statistics released by Brazil's Ministry of Development, Industry and Foreign Trade, and compiled by the Arab-Brazilian Chamber of Commerce. Exports from Qatar grew 87.96 per cent to reach $424.50 million in the first half of 2015 from $226 million in the same period of 2014. Kingdom of Saudi Arabia exports hit $776 million, followed by Kuwait's $243 million and the UAE's $239 million during the first half of 2015. Other Arab countries, including Egypt, Oman and Bahrain exports reached $54.36 million, $41.45 million and $33.36 million, respectively. Dr Michel Alaby, secretary-general and CEO of Arab-Brazilian Chamber of Commerce, said: "The flourishing exports from the Arab...
Sapa focusing operations in China
After careful evaluation of its business in China, Sapa has decided to exit its Jiangyin plant and concentrate its operations in China to fewer sites to better serve the demanding customers in high value-add segments. Sapa has since the inception of the joint venture undergone extensive restructuring of its global operations to better meet the market needs. After careful evaluation of its business in China, Sapa has decided to exit its Jiangyin plant and concentrate its operations in China to fewer sites to better serve the demanding customers in high value-add segments. Sapa currently operates four production sites in China. During August production will be transferred from the Jiangyin plant outside Shanghai to Sapa’s other Chinese plants. “We have decided to focus operations to the...
Zhongfu obtains Quality Management System Certificate for automotive plates
Henan Zhongfu Industrial Co. Ltd., the Chinese subsidiary of the international investment and industrial holding Vimetco, one of the largest on the aluminum market, has obtained the Quality Management System Certificate for Production of Components and Provision of Respective Services in the Automotive Industry. Obtainment of this certificate will enable Zhongfu to supply to the domestic and international markets plates made of aluminum alloys for manufacturing of automotive bodies, which will definitely expand the market of certified products. The certification of Zhongfu products was made by National Quality Assurance Co., Ltd. (NQA), UK, in accordance with the Quality Management System in respect of automotive plates TS16949 established by the International Automotive Task Force (IATF)...
