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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S.Africa's Hulamin H1 profit drops 34 pct
South African aluminium products maker and marketer Hulamin Ltd on Monday reported a 34 percent drop in first-half operating profit due to electricity shortages and planned maintenance. Africa's most advanced economy is the midst of its worst power crisis and is struggling to keep the lights on as its aging fleet of power stations becomes more unreliable. Hulamin had earlier warned that disruptions were impacting production. Hulamin reported basic and diluted headline earnings per share of 25 cents and 24 cents respectively for the first half ended June 30, compared with 41 and 40 cents per share a year earlier. Headline earnings per share is the key measure used in South Africa and strips out certain one-off items. In April, the company said it expected first-half earnings to drop by 44...
Nalco may include mining in its diversification plans
State-run National Aluminium Co is mulling over the idea of exploiting its core competence of mining to offset the fall in prices of aluminum. Nalco's new chairman and managing director, TK Chand, who met Odisha Chief Minister Naveen Patnaik on Monday, is also hoping that the company can soon mine the 75mt Potangi bauxite deposit reserved for it since 2007. Chand said he is hopeful that Nalco can beat the trend by pushing products with higher realisation and tapping newer markets, such as East Africa. In his earlier role as director, commercial, of Vizag-based public sector undertaking RINL, Chand had opened new markets such as Ethiopia, Kenya and Tanzania for RINL's steel products. In 2014-15, Nalco more than doubled its net profit and announced a turnover of Rs 7,771 crore, its highest...
"Considering the steady GDP growth in India, I expect the aluminium industry growth rate to go up to 7 to 8% in near future," Mr. Satish Pai, Deputy Managing Director and CEO, Hindalco Industries, India
Mr. Satish Pai is the Deputy Managing Director and CEO of the Aluminum Business, India, Hindalco Industries. Mr. Pai is responsible for setting strategic vision for the Aluminum business of Hindalco in India. He also provides operational leadership in order to build sustainable competitive strengths and enhance shareholder value. AlCircle had the opportunity to speak to him during The 19th International Conference on Non-Ferrous Minerals and Metals in Bhubaneswar. He shared with us his outlook for the aluminium industry in India and Hindalco's strategy to overcome the current low phase in aluminium. An Excerpt from the interview: AlCircle: You are here to promote aluminium, the future metal for India. How would you justify this position for the industry considering the present low phase...
GM's Chevrolet and Ford wage pickup wars over aluminum
The pickup wars have broken out again. Ads from General Motors' (GM) Chevrolet are attacking rival Ford's (F) innovative aluminum-body F-150 pickup as too costly and too slow to repair. In online ads -- one of which features National Football League hall of famer and broadcaster Howie Long -- Chevrolet suggests that aluminum isn't as strong as steel and that insurance costs are probably higher for the aluminum F-150. In a previous round of the pickup wars, Chevrolet ran a Super Bowl ad with Chevy truck owners having survived an apocalypse, but their friend wasn't so fortunate because he had a Ford pickup. Ford went to court for a cease and desist order. The Ford F-series pickups, traditionally the best-selling vehicles in America, have continued to outsell the Chevrolet Silverado in the...
BMC’s 2016 range to include a wider range of aluminium bikes
Swiss bike brand BMC has announced its 2016 range, which includes a wider range of aluminium bikes as well as some new colour schemes for its carbon models. BMC’s carbon Teammachine is its premium race bike used by its professional racing team. For 2016, BMC has added an aluminium version of the bike to its range, named the Teammachine ALR01. BMC claims 1295g for the painted frame, which comes in five sizes starting at 47cm and has computer-designed tube shapes and asymmetry and a carbon fork. The aluminium version is aimed at new riders and comes with a wide gear range and geometry for a more upright riding position. BMC will offer the ALR01 at four spec levels: Ultegra, 105, Tiagra and Sora, all with full Shimano groupsets. The carbon Teammachine SLR bike family gets new colour schemes...
Meadowlark Brewing moves into cans
To make its beers more accessible to consumers, Meadowlark Brewing has expanded into Rexam 12 oz. cans. Two of its core brews are available for the first time in this convenient, single-serve package. BADLANDS Extra Pale Ale incorporates the malt profile of an easy-drinking pale ale with the aroma and flavor of an IPA. Badlands pours a golden orange color with a nose of citrus and tropical fruits. OLE GUS Scotch Rye Wee Heavy is a full-bodied ale with robust caramel notes and a slight crispness due to the use of rye. It pours a dark, ruby color and is accompanied by subtle fruity esters from Edinburgh ale yeast. With a tagline of “Made in Montana. Treasured Everywhere,” the brewery takes its name from the Western Meadowlark or sturnella neglecta. This bird has long had an iconic presence...
AluGlass to complete $16m worth multiple contracts in UAE
AluGlass Tech, an aluminium and glass contractor under the Ajman-based Tech Group, is close to completing multiple contracts worth Dh60 million ($16.3 million) in the UAE emirate. It includes residential and commercial facilities, a medical centre and the multi-million-dollar Al Zorah Resort and Golf Club project, said a statement. A leading name in the aluminium and glass industry, AluGlass Tech manufactures customised and complex windows, door fittings, automatic doors and gates, curtain-walls, cast aluminium decorations, partitions, and insulated glass products, it said. The firm has already provided its aluminium and glass fittings and claddings to some of the landmark projects including Ajman One, City Towers, Orient Towers and Ajman Pearl Towers. Shiraz Hasan, group chief executive...
Six major Chinese state-owned banks support China Zhongwang's Tianjin aluminium flat rolled project
China Zhongwang Holdings Limited, the world's second largest industrial aluminium extrusion product developer and manufacturer and the biggest one in Asia, today announced a 10-year syndicated term loan facility agreement in the principal amount of up to RMB20 billion or its equivalent. The Facility was entered into by the Company's wholly owned subsidiary, Tianjin Zhongwang Aluminium Company Limited, with a consortium of six major state-owned banks in mainland China. The Facility is largely RMB-denominated and carries the same base rate as The People's Bank of China of the same duration. The proceeds will be used to support the development of the Company's high value-added aluminium flat rolled product project iin Tianjin which is expected to commence production soon. Mr. Lu Changqing,...
Laminazione Sottile Group to acquire Lamp Ariflex
Laminazione Sottile Group, based in Naples, announces the agreement for the acquisition of Lamp Ariflex, company located in Spinetta Marengo (AL) and specialised in the production of flexible packaging. The company’s new name is IPS Ariflex (Industrial Packaging Solutions Ariflex). Laminazione Sottile Group is one of the European leaders in rolled aluminium production, with more than 150.000 tons including bare and coated rolled aluminium products and food trays. The new Laminazione Sottile Group’s investment will allow IPS Ariflex to keep the production in Spinetta Marengo in order to balance the demands for competitiveness imposed by markets with the support to local communities for a sustainable growth. M. Moschini, CEO of Laminazione Sottile Group, said: “IPS Ariflex represents an...
Aluminium recycling 'way behind' where it needs to be
The latest Packaging Recovery Note (PRN) figures show that aluminium is struggling to meet recycling targets. The Q2 figure is over 6,000 tonnes lower than where it needs to be and follows a 3,000 tonne shortfall in Q1. For the first half of the year, the figure is 20% down. Phil Conran, director at consultancy 360 Environmental, left, said aluminium was the poorest PRN performer. “The reasons are the continued lack of incinerator bottom ash (IBA) protocol accreditation and reduced demand [for recycled aluminium] in the UK because one of the big reprocessors has had less requirement in Q2,” he said. Following protocol changes which came into effect at the beginning of 2015, aluminium packaging contributed by scrap metal dealers was discounted from the recycling figures. The quantities...
Vedanta confirms no change in swap ratio despite stock price fall
Vedanta Ltd has said it stands by the share swap ratio, proposed as part of the plan to merge Cairn India Ltd with itself, despite a near 30% fall in the share of Vedanta since the merger was announced last month. “Swap ratio is not only based on the market prices of the shares but it also take into consideration various other factors such as intrinsic value of the companies taking into account the long term assessment of the business. Nothing has changed on those factors post announcement for valuers to change their report,” said Tom Albanese, chief executive officer of Vedanta, in an emailed reply to Mint. Since the announcement of the proposed merger on 14 June, Vedanta shares have fallen 27% due to concerns over its aluminium business. Cairn shares have done relatively better and...
Emirates Global Aluminium gross revenue up 30 per cent to $5.4 billion
Emirates Global Aluminium, the world’s fourth-largest maker of the metal, reported a 75 per cent rise in net income last year amid rising aluminium prices and cost cuts. EGA, created by the merger of Dubai Aluminium and Emirates Aluminium, did not specify its net income for last year or 2013. It said, however, that gross revenue rose 30 per cent to US$5.4 billion last year, without giving a corresponding figure for 2013. “Sustained focus on reducing costs resulted in a drop in controllable costs,” said the company, which did not reply to a request for more details. The price of the metal last year rose 2.9 per cent. EGA, which has an annual production capacity of 2.4 million tonnes, said last month that it had cut 250 jobs, or 4 per cent of its workforce, as a result of the merger of its...
UC RUSAL appoints Bob Katsiouleris as Director, European Sales
UC RUSAL, a leading global aluminium producer, announces the appointment of Bob Katsiouleris as Director of European Sales. Bob Katsiouleris will join RUSAL on 1st August 2015 following a successful period as Senior Vice President for Marketing, Sourcing and Sales at Nyrstar, where he was accountable for the company’s global commercial activities and supply chain management. At RUSAL, he will be responsible for leading and developing the Company’s European sales portfolio, reporting to Steve Hodgson, RUSAL’s Sales & Marketing Director. Bob will replace Ulli Schridde, who has successfully lead the company’s sales activities in Europe over the last five years. ‘Europe has been a cornerstone market for RUSAL over many years, driven by a number of deep relationships across all consuming...
LME aluminum to fall further to $ 1,620-1,660, forecasts SMM
LME aluminium is headed for further decline. It will fall to $ 1,620-1,660 per tonne next week, foresees Shanghai Metals Market. Given the negative technical indicators and strong bearishness in commodity market there is no possibility that the metal will rebound in the short term. But the downside space will be limited since it is already in oversold territory. SHFE 1510 aluminum contract should drop to 12,150-12,350 yuan per tonne, due to pessimism over aluminum consumption in China and growing expectations for interest rate in the US. In China’s spot market, moth-end cash crunch and weak demand in summer will leave spot discounts high at 90-130 yuan per tonne over SHFE 1508 contract.
Fiji miners to hunt their own power sources and refine locally
The Parliamentary Standing Committee on Natural Resources, Fiji says future large scale mining operations may have to provide their own power sources and conduct refining processes locally. Committee chairman Joeli Cawaki said this was one of the recommendations being considered after hearing submissions on the Nawailevu bauxite mine. The committee heard that the mining company was taking unrefined soil offshore to extract the bauxite ore because it was unable to find a power provider that could fulfil its demands. This process deprives Fiji of added benefits. "Looking towards the future, maybe the company that wants to come and mine has to provide their own power and that has to be part of the requirements," Mr Cawaki said. "But if they want to come and mine, let us value-add the...
Pahang Govt to issue mining licenses to contractors of Felda Bukit Goh
The Pahang government has been urged to issue bauxite mining licences to 32 contractors who have made deals with settlers of Felda Bukit Goh to carry out mining on their land. Bukit Goh Bauxite Coordinating Committee chairman Abd Wahid Abd Manaf held a closed-door meetiung with the bauxite entrepreneurs and settlers of Felda Bukit Goh at the Felda Bukit Goh Community Hall on Saturday last week and said problems would arise for settlers who had signed agreements with contractors to mine bauxite on their plantations. “Generally, the settlers have felled their oil palm trees and dug up their plantation (to facilitate bauxite mining). “If it is stopped and licences are not issued, their source of income will be badly curtailed,” he said.
Chinese spot alumina prices rangebound as market awaits new direction
Chinese spot alumina prices were rangebound this week as market participants awaited clearer direction amid continued weak domestic aluminum prices and market volatility. Platts ex-works Henan alumina spot price closed the week Friday at a stable Yuan 2,360/mt ($386) for 70:30 cash and credit payment terms, unchanged from Thursday and a week ago, but down Yuan 40 on the month. Spot trade was slow moving this week as overall market sentiment remained weak, with alumina prices expected to test lower in the near term. Some spot talks for August deliveries have started, but actual trades were lacking, sources said. Henan refiners were heard quoting Yuan 2,350-2,380/mt this week for cash up to 50% credit payment terms, while smelters eyed Yuan 2,320-2,380/mt for cash up to full credit basis....
Further fall in aluminium prices will make production cut inevitable
Aluminium producers in India seem to be worried with the slump in metal’s price. The aluminum arm of India’s Vendanta Ltd is just about scrambling to keep its business viable. Underutilized capacity is already adding to their cost; sources say any further fall in the metal prices would likely force the company to scale down its production. Meanwhile, with smelters becoming economically unviable, the company is seeking access to other raw materials like power, bauxite and coal. Last week, the Aluminium Association of India (of which Vedanta, Hindalco and others are part of) met the Mining Secretary, as well as Chairman of Excise and Customs seeking import duty hike of 10 percent from current 5 percent. The Association cited that imports have surged to a whopping 159 percent between FY11...
