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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Aluminium futures marginally up on global cues, spot demand
Aluminium futures traded a shade higher at INR 106.90 per kg today as participants strengthened their positions, supported by an upward trend overseas. Further, a rising demand at the domestic spot market also influenced metal prices. At the Multi Commodity Exchange, aluminium for delivery in June inched up by 15 paise, or 0.14 per cent, to INR 106.90 per kg in a business turnover of 558 lots. Likewise, the metal for delivery in July traded marginally higher by 10 paise, or 0.09 per cent, to INR 108.65 per kg in 71 lots. Marketmen said apart from an increased domestic demand, a firming global trend in the base metals pack at the London Metal Exchange , mainly influenced metal prices at futures trade here. 63.78 INR =1 $ (Dollar)
Press Metal smelter plant may lose RM150 million revenue due to halt
A three-week production halt last month at Press Metal Bhd’s smelting plant due to a fire may have cost the company up to RM160 million in lost revenue. “It would not be an entire loss, it’s a production loss. But certainly, the aluminium price is a big impact to revenue,” group chief executive officer Datuk Paul Koon said. “At the moment, the aluminium price is around US$2,000. But we have substituted this revenue by doing trading ,” he said. He was speaking to reporters after the company’s AGM yesterday. A three-week production halt on May 17 at its smelter in the Samalaju Industrial Park, Sarawak, had resulted in an output loss of around 60,000 to 80,000 tonnes for the company. The company’s current production capacity stands at 440,000 tonnes. It is nearing completion of the third...
Gateway Extrusions expands its Union facility
Gateway Extrusions, a fast-growing extruder of small diameter aluminum profiles, has embarked on a significant expansion of its Union facility. The company recently purchased the 129,000-square-foot production plant that it had been leasing in the Union Industrial Park, as well as adjacent properties. The company also is nearing completion of renovations to accommodate additional equipment coming online this year. “Gateway Extrusions has seen considerable growth in its sales and the variety of markets it serves, a result of the strategic plans put in motion over the past several years,” said Tom Ziegler, vice president. “This investment and expansion of our Union facility represents another step in the company’s overall growth goals,” Ziegler said. The company moved forward with the first...
ThyssenKrupp and Maxion Wheels in joint venture to develop ultra-lightweight aluminum and carbon fiber wheels
ThyssenKrupp Carbon Components and Maxion Wheels have established a cooperation agreement to develop and market innovative new ultra-lightweight aluminum and carbon fiber hybrid wheels for the premium vehicle OEM market. The combined expertise of ThyssenKrupp, a leading global automotive components supplier and innovator in carbon fiber applications and lightweight materials, with Maxion Wheels, the world's largest and most innovative wheel manufacturer, will offer customers exceptional performance benefits at an attractive price point. The combined technologies could generate a weight savings of up to 40% when compared to high performance forged aluminum wheels and at the same time offer high value styling. The ThyssenKrupp Carbon Components - Maxion Wheels team will work with OEMs to...
Noranda engages Morgan Stanley as Financial Advisor
Noranda Aluminum Holding Corporation announced today that it has engaged Morgan Stanley & Co. LLC ("Morgan Stanley") to serve as financial advisor for the Company as it evaluates a variety of strategic alternatives. The Company also announced that its Board of Directors has decided to suspend the Company's quarterly dividend and will seek stockholder approval of a reverse stock split at a ratio to be determined. "We are pleased to announce the engagement of Morgan Stanley as an advisor as we proactively identify and evaluate prudent actions to continue to create stockholder value across the aluminum price cycle," said Layle K. "Kip" Smith, Noranda's President and Chief Executive Officer. "In the face of low aluminum prices, I am proud of the progress we have made in improving our cost...
Jaguar updates XJ range of all-aluminium executive sedan
Hot on the heels of last week's new BMW 7 Series reveal, the Brits have struck back with Jaguar's latest XJ luxury offering. The all-aluminium executive sedan has been given a refresh, with key highlights including a larger front grille, new LED headlights and rear lights for the outside, while a new InControl Touch Pro 8-inch touchscreen infotainment system is part of an impressive audio/visual cabin setup. Propelling the stylish luxobarge is a revised 3.0-litre V6 diesel upping power from 202kW to 220kW and torque from 600Nm to 700Nm, meaning the 0-100kmh dash is dispensed with in 6.2-seconds. The rear-wheel drive XJ range also keeps the same supercharged 3.0-litre V6 and 5.0-litre V8 petrol engines as the old model, peaking at 404kW and 680Nm in the range topping XJR and helping it to...
Total Merchant Ltd. to purchase Metalico
The board of directors for Cranford, New Jersey-based Metalico Inc., which operates scrap metal recycling facilities primarily in the eastern Great Lakes corridor, has agreed to sell the company to Total Merchant Ltd. for a total purchase price of approximately $87 million. According to a news release issued by Metalico, the all-cash deal includes a payment of 60 cents to Metalico’s stockholders for each share of the company’s common stock they own as of the closing date. The price includes roughly $44 million for Metalico’s outstanding equity plus the cost of retiring the company’s primary term and institutional senior and convertible debt, estimated at approximately $45 million, and the assumption of approximately $16 million of additional debt as of June 15, 2015. Total Merchant is an...
LIC hikes stake in Hindalco to over 13%
Aditya Birla-led Hindalco today said insurance giant LIC has raised its stake in the aluminium maker to over 13 per cent. In a BSE filing, Hindalco said LIC acquired 2.009 per cent stake in the firm through open market transaction between April 16 and June 17, 2015. After the transaction, the state-run firm's stake in Hindalco increased from 11.328 per cent to 13.337 per cent. The aluminium maker had reported a 36 per cent fall in standalone net profit to Rs 160 crore for the quarter ended March 31 against Rs 248 crore in the year-ago period, mainly on account of Rs 146 crore liability towards Renewable Power Obligations (RPO). The Aditya Birla Group flagship firm's standalone net sales rose by 10 per cent to Rs 9,219 crore in January-March quarter, from Rs 8,360 crore in the same quarter...
Bosnia region to sell 44% stake in Aluminij smelter
Bosnia's regional government will soon offer for sale its 44 percent stake in the country's sole aluminium smelter Aluminij Mostar to help cover a budget deficit, the Prime Minister said on Thursday. The sale of Aluminij, one of Bosnia's top exporters, is part of the government's plan, endorsed last week, to sell its minority stakes in eight companies. "The sooner, the better," Prime Minister Fadil Novalic said on Thursday when asked about the timing of the sale of Aluminij Mostar, adding: "We need money." He said the privatisation agency would prepare a sell-off plan, but declined to be more specific about the timing of a sale. The Bosniak-Croat Federation is struggling with a widening budget deficit which has exceeded 800 million Bosnian marka ($466 million). It hopes a possible new...
First Bauxite Corp. plans $200 million bauxite plant in St. John Parish
First Bauxite Corp. of Canada plans to invest $200 million to develop a proposed bauxite processing plant on the Mississippi River in St. John the Baptist Parish. State and corporate officials said that the project would create 100 direct jobs, ranging from entry-level to skilled trade and professional management positions at an average annual salary of $70,000, plus benefits. Louisiana Economic Development estimated the project would result in an additional 117 indirect jobs. At peak building activity, the company estimated, the project would generate 150 construction jobs. Based in Toronto, First Bauxite has concluded a feasibility study calling for the company to mine bauxite — an alumina-based ore — from Guyana, on the northern coast of South America, and ship it to Louisiana. At the...
Aluminium industry on track to meet demand from high speed rail growth
Aluminium China 2015 to showcase innovative new technology, products and processes for the rail transport industry – and much more With the rapid development of high-speed rail transport in China and other parts of the world diving demand for aluminium, next month’s Aluminium China 2015 will provide a shop window on the world’s leading companies, products and processes across the complete aluminium supply chain. China already has over 10 thousand miles of high-speed rail line with 12 thousand still under construction, while in October 2014 a Memorandum of Cooperation was signed with Russia to develop a Eurasian Moscow-Beijing high-speed transport corridor. With low density and high strength along with excellent plasticity and corrosion resistance, aluminium alloys are ideal for the...
Saudi Stock Exchange opens up to foreign investment: aluminium sector shines
The Tadawul, popularly known as the Saudi Stock Exchange opens doors to direct foreign investment in Saudi Arabia. Foreign investors who have more than £5bn reported assets supported by a five year track record can now invest directly, investment limited to overall 10 per cent of the Tadawul’s value. It will also allow single stock ownership up to five per cent of a listed company, with a total foreign ownership of 20 per cent. Investors will also be able to participate in initial public offerings on a case-by-case basis. For foreign investors, there is no dearth of untapped opportunities in the kingdom. Although Saudi is synonymous with oil production, the kingdom’s investment and business options are no more limited to petrochemicals. Aluminium sector has invited notable foreign...
New Aluminum Association office to showcase dynamic, growing aluminum industry
The Aluminum Association announced that it will move its headquarters to 1400 Crystal Drive in Arlington, VA effective June 22, 2015. The new building is aluminum-clad and is certified Gold by the U.S. Green Building Council Leadership in Energy & Environmental Design (LEED) standards. The Association collaborated with CBRE's Nonprofit Practice Group on the move with the goal of a more collaborative space that showcases aluminum and enhances the Association's culture of advocacy. "This is an exciting time for aluminum as this innovative industry continues to expand. As we enter a period of game-changing growth, the Association has the opportunity to emphasize our policy and market focus while maximizing the experience for our membership in a more modern office," said Heidi Brock,...
Top steelmaker fights for autos as Ford turns to aluminum
When the Ford Motor Co. confirmed last year it would build its most popular pickup truck using aluminum, the automaker's steel supplier was caught flat-footed. Now, ArcelorMittal, the top worldwide supplier of steel for automobiles, has built a two-pronged response to try to head off defections by other customers including General Motors Co., Fiat Chrysler Automobiles NV and Japan's biggest carmakers. First, the Luxembourg-based company developed lighter steel that's as strong as earlier products. Second, it embedded almost three-dozen engineers with car companies around the world so there are fewer surprises on vehicle redesigns, according to Brian Aranha, head of ArcelorMittal's automotive business. "We see the threat," said Aranha, whose unit is ArcelorMittal's most profitable, in an...
Componenta signs EUR 30 million credit facility agreement to grow its aluminium business
Componenta Dökümcülük A.S. signed on 17 June 2015 a new 5½ year credit facility agreement of EUR 30 million. New credit facility consists of two separate loan agreements which are an investment loan of EUR 20 million and a revolving credit facility of EUR 10 million. As a consequence, the average maturity of the interest bearing debt portfolio of Componenta Dökümcülük will be further lengthened. Componenta's aluminium business segment has been the Group's more profitable business. Componenta signed a substantial business contract in first quarter 2015 based on which Componenta will sell complex aluminium components worth more than EUR 100 million to European markets till end of 2025. In addition, Componenta has signed several others aluminium component contracts worth smaller amounts. In...
Consumer recycling rate of aluminum cans hit 17-year high in 2014
The latest report released by the Aluminum Association in partnership with Can Manufacturers Institute for the year 2014 indicates that consumer recycling rate during the year touched 56.7%- the highest recorded rate since 1997. The report notes that cans are being recycled at the highest rates due to the high value of aluminum compared to other packaging materials. According to the report, the aluminum industry recycling rate remained essentially flat at 66.5% in 2014. The rate represents amount of used aluminum can scrap, including imported and exported cans that get recycled as a percentage of U.S. shipments. The consumer recycling rate for aluminum cans was up nearly 2 points to 56.7% during 2014, when compared with the rate of 54.9% in 2013. The recycling rate is the highest over the...
Aluminum premiums settle after rout, consumer buying supports
Surcharges for physical aluminum have settled close to equilibrium levels after tumbling by up to three-quarters this year, supported by consumer buying and more attractive conditions for financing deals. Tapering Chinese exports of the metal will also help stabilize surcharges; a glut of aluminum had been a big factor in setting off a slide in premiums late last year and early in 2015. The surcharges, or premiums, which consumers pay on top of the London Metal Exchange cash price for immediate delivery of metal, have settled closer to levels seen several years ago before a sizzling rally sent them to record highs. "Everybody's looking for some stabilization, both producers and consumers don't want to see this volatility any more," said a trader in Europe. "If you look at historic levels,...
Qatalum's Casthouse starts joint collaboration with Qatar University
Academic collaboration allows for further research in developing metallurgical competence in Qatar and Increases competence on specific casthouse products for process optimisation. This results in a wider product portfolio of high quality aluminium products for a larger global market. Qatalum's casthouse has defined a joint student project together with Qatar University. The project's objective is to study microstructure development during the homogenisation process of aluminium alloys. Therefore, further developing aluminium metallurgy competence amongst the students. The specific research and development case concerns a commercial alloy and is directly related to Qatalum potentially gaining increased market share with extrusion billet alloys containing chromium. This type of alloy is...
