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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Rio Tinto releases strong second quarter production results
Rio Tinto releases strong production results for second quarter 2015 across all sectors. Rio Tinto chief executive Sam Walsh said “We have maintained our emphasis on efficiency and protecting returns, which is reflected in this solid production performance. We have also delivered three significant achievements within our growth portfolio. In aluminium, our Kitimat smelter is now producing metal from its expanded facilities, bringing 80 per cent of our smelting capacity into the first cost quartile. Our combination of world-class assets, financial strength, and operating and commercial excellence provides a sound base to continue to generate sustainable returns for our shareholders.” Aluminium Highlight • The modernised Kitimat aluminium smelter in Canada poured first hot metal during the...
BIR welcomes India’s latest scrap metals import provision
The Brussels-based Bureau of International Recycling (BIR) has issued a statement applauding the latest provisions issued by India’s Directorate General of Foreign Trade (DGFT) with regard to self-certification of imported, processed metallic scrap. The BIR, along with national trade associations Institute of Scrap Recycling Industries Inc. (ISRI), Washington, and the Metal Recycling Association of India (MRAI), had contacted Indian government ministries to ask that appropriately equipped scrap yards be permitted to self-certify the quality and safety of their processed metallic scrap. As a result, BIR reports, India’s Directorate General of Foreign Trade (DGFT) in late June 2015 issued Public Notice 23/2015-20, adding requirements for those recyclers seeking to self-certify exports of...
ZTE announces the Blade D6 with high-grade aluminum alloy body
ZTE apparently wasn't done announcing smartphones this week after yesterday's unveiling of the Axon. While that particular model is destined exclusively for the US market, at least for now, the new Blade D6 will get a more international launch. Traditionally ZTE has used the Blade sub-brand for mid-range offerings that are very good value for money. And while we can't comment on the latter in this case (since pricing information isn't available yet), the Blade D6 certainly fits the mid-range nicely. It comes with a 5-inch 720p IPS touchscreen, a 13 MP rear camera with dual-tone LED flash, an 88-degree wide-angle 5 MP selfie snapper, 4G LTE, Bluetooth, GPS, Wi-Fi, dual-SIM functionality, and a 2,200 mAh battery. It's powered by MediaTek's 64-bit MT6735 SoC with a 1.3 GHz quad-core CPU and...
Fresh selling seen in Aluminium, open interest up 6.24%
Aluminium settled down -0.7% at 106.25 as major economic indicators released yesterday fell short of market expectations. China's exports of unwrought aluminum and aluminum semis were 450,000 mt in June, with YTD exports from January to June at 2510,000 mt, up 35.2 % YoY. Aluminium stocks held at three major Japanese ports stood at 499,900 tonnes at the end of June, down 0.5 percent from 502,200 tonnes a month earlier. China's economy grew an annual 7.0 percent in the second quarter, steady with the previous quarter and slightly better than analyst forecasts, though further stimulus is still expected after the quarter ended with a stock market crash. The U.S. Commerce Department said that retail sales declined by a seasonally adjusted 0.3% last month, disappointing expectations for a gain...
Aluminium rises by 0.4% on global cues
Taking positive cues from global market and strong demand at domestic spot markets, aluminium prices edged up 0.38% to INR 106.65 per kg in futures trade today as participants enlarged positions. Marketmen said apart from increased domestic demand, a firming global trend as Chinese economic data came in ahead of estimates, boosting demand prospects in the world's biggest consumer of base metals, helped aluminium futures to trade higher. At the Multi Commodity Exchange, aluminium for delivery this month inched up by 40 paise, or 0.38%, to INR 106.65 per kg in a business turnover of 112 lots. Likewise, the metal for delivery in August traded higher by 30 paise, or 0.28%, to INR 108.35 per kg in five lots.
Specialized revamps its Allez aluminium road bike with aerodynamic features
Specialized has revamped its popular Allez aluminium road bike for 2016 with aerodynamic features inspired by its Venge carbon aero road bike. Photos from a US Specialized dealer launch, shared by two US bike shops on social media, have revealed the new design direction for the latest generation Allez. The new Allez features an aero shaped seat tube and seatpost, and following the trend with aero road bikes, a smaller rear triangle with the seatstays meeting the seat tube well below the top tube. The seat tube curves around the rear wheel to improve aerodynamics. The current Allez takes styling cues from Specialized’s Tarmac model, this new bike shows a new direction for the aluminium model. This new Allez Sprint is also the first new road bike we’ve seen equipped with SRAM's brand new...
Suppliers testing carbon-aluminum hybrid materials for lightweight wheels
Somewhere along the line, you’ve probably acquired at least a basic understanding of the benefits of lightweight wheels; their contribution to a low curb weight is the least of it. By reducing unsprung mass – that is, whatever mass isn’t kept aloft by the suspension – engineers can improve a vehicle’s response, handling, and steering feel. Furthermore, the reduction of rotational inertia that comes with lightweight wheels can allow for better acceleration and efficiency, to an extent. Of course, aluminum alloy wheels have been the de facto lightweight alternative to steel for a number of decades now, and we dare say that the material has become the new norm. These days, carbon fiber has replaced aluminum as the more appealing, ideal composition for lightweight wheels. Alas, carbon fiber...
Ford offering $10,000 discount on new aluminum F-150 pickup
Ford Motor Co. has begun offering discounts that can exceed $10,000 on its new aluminum-bodied F-150 pickup, which has been losing sales and market share this year as the automaker works to build inventory on dealer lots. The company’s website offers “up to $10,029 in total savings” on a 2015 F-150 XLT SuperCab 4X4 with the luxury chrome or sport package in some U.S. regions. That model comes with a discount of $7,050 in other areas, according to Ford.com. U.S. sales slid 8.9 percent last month for Ford’s F-Series pickups, its top-selling line and most profitable vehicles. The truck’s share of the big-pickup market fell to 28 percent in June from 33 percent a year earlier, according to researcher Autodata Corp. Ford blamed tight inventory caused by the conversion of two plants to build...
Aluminum Prices face downward pressure from poor market fundamentals
Aluminum prices, though rebounding from six-year low thanks to China’s efforts to stabilize plummeting stock market, still face downward pressure from poor market fundamentals, enanchu.com predicts. Expansions of low-cost new capacity are exacerbating already oversupplied market. For example, Xinjiang Qiya Aluminum just put online 250,000-tpy capacity, which will bring its total operational capacity up to 850,000-tpy by the end of July. Xinjiang East Hope is in the process of commissioning its 900,000-tpy new project. More capacities might enter operations once aluminum prices become attractive. Small-scale production cuts have been reported in Henan, but these are just a tip of the iceberg in relation to overwhelming capacity in operation. Aluminum demand has taken a hit by sluggish...
Japan aluminium stocks fall for the first time in 15 months
Aluminium stocks at Japanese ports fell for the first month in more than a year in June as western banks started snapping up metal in Asia after spot premiums fell to two-year lows. Aluminium stocks held at three major Japanese ports fell 0.5 percent to 499,900 tonnes at the end of June from a month earlier, trading house Marubeni Corp said on Wednesday. It was the first decline since March last year. Prior to June's fall, stocks had risen to record levels over several months due to rising exports from China and slack demand in Asia. Japan is Asia's biggest importer of the metal used in cans and window frames. Big western banks were among buyers recently, after spot premiums over LME cash prices crashed to two year lows around $70-$80 a tonne in the second quarter. That left reduced...
Queensland Bauxite aims for early mining at South Johnstone project
Queensland Bauxite is progressing its plans for its South Johnstone DSO Bauxite Project in northern Queensland to begin production of bauxite later this year. The recently completed drilling program is waiting on drill results to upgrade the current quantity of Indicated Resource and define a Measured Resource, which will allow finalisation of the initial mine plan for the Mineral Development Licence (MDL) Application. Samples are currently being processed by ALS Laboratory with results to be modelled upon receipt of all assays. Mine plan, environmental studies and works for the mineral development licence application are on schedule. Granting of an MDL would enable shipping of bauxite from the South Johnstone Bauxite Project – currently scheduled for Q4 2015 – with the goal of proving...
Non-Ferrous Minerals and Metals Conference projects positive outlook for India despite bearish market situation
The International Conference on Non-Ferrous Minerals and Metals; organized by Corporate Monitor, which has earned its reputation as a forum for the domestic and international Non-Ferrous industry players as well as industry experts, just concluded its 19th session on July 10, 2015 in Bhubaneswar. Though, currently the non-ferrous metal and mining sector is going through a tough period due to dwindling metal prices, the conference speakers highlighted a positive outlook for the industry, especially for India. Chairman and Managing Director of NALCO, NR Mohanty, said that the Indian market is becoming highly competitive despite the overall pessimistic situation in the metal sector. “It is high time for aluminium companies in India to maximise production from scrap. Recycling scrap into...
Metro Mining raises $5.6m with mining operations in sight
Metro Mining Ltd has announced a Capital Raising of $5.6M, comprising a fully underwritten Shareholder Rights issue aimed at raising $3.6 million, which follows a successful Placement which has raised $2M. Argonaut and GMP Securities acted as joint lead managers to the Capital Raising. As a result of the strong support, the Rights Issue has been fully underwritten by the Joint Lead Managers. The proceeds of the Offer will be used to further the development of Metro Mining’s Bauxite Hills Project through to a decision to mine. Focus will now be on completion of the Definitive Feasibility Study (DFS), achieving permitting approvals, undertaking pre-development work including potential pre-commitments for mining and transhipment contractors. The proceeds will also be used to support a modest...
Chalco reverses losses in aluminum segment in H1 2015
Chalco reversed losses in its aluminum segment in H1 2015, it said during its mid-year conference. The Chinese aluminum giant attributes the surprising result partly to cost reduction and higher production efficiency.
Vertical aluminum processing industry booming in Henan
Coal-electricity- aluminum -processing industry chain is developing in full swing in Yichuan Industrial Park, Henan Province, local media reported. The park is now home to 2.22 million Kw installed power generating capacity, 840,000 tonne aluminum capacity and 650,000 tonne aluminum processing capacity, the media added.
C.R. Laurence opens U.S. Aluminum headquarters in Waxahachie, Texas
C.R. Laurence announced the opening of its new U.S. Aluminum Manufacturing and Distribution Headquarters in Waxahachie, Texas. This new 350,000-square-foot state-of-the-art facility serves as a centralized operations anchor that allows U.S. Aluminum to stock larger inventories, reduce lead times, and improve service throughout the U.S. Aluminum network across North America, company officials report. According to a company release, the expanded central production, distribution and inventory capacities, coupled with fabrication services available locally, enable customers to meet project requirements faster than ever.
SMM sees little immediate impact of lower premiums on Chinese exports
Aluminum premiums in Asia have plummeted to $90-100 per tonne from $380 per tonne early this year. Will lower premiums inhibit outflow of aluminum semis from China? SMM sees little immediate impact on Chinese exports. Given saturated domestic market, exports will remain the way out for Chinese producers. Besides, despite lower premiums overseas, exports remain profitable, partly due to export rebate enjoyed by semis and removal of provisional export duty on some aluminum products. China’s monthly exports of unwrought aluminum and aluminum semis have held around 400,000 tonnes this year, much higher than the same period last year, customs data showed. The country exported 450,000 tonnes of unwrought aluminum and aluminum semis in June, according to China Customs.
Tiwai smelter needs to comply with environmental obligations under Resource Management Act
Despite being set up well prior to the act's establishment Tiwai aluminium smelter needs to comply with environmental obligations under the Resource Management Act, a Ministry for the Environment spokesperson says. A new policy in the proposed Invercargill City District Plan "encourages" New Zealand Aluminium Smelters (NZAS) to rehabilitate Tiwai Point if the smelter closes - but the smelter maintains it has strict internal requirements around any such eventuality. A question arose around where the smelter sat in terms of environmental obligations - as it was established in the late 1960s under a far more permissive regime. Although the smelter was set up prior to the Resource Management Act coming into force, the smelter still needed to comply with environmental obligations under the...
