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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North American Aluminum scrap prices declined on Index, 27th May, 2015
The North American Aluminum scrap prices declined on ScrapMonster Price Index as on May 27th, Wednesday. 1100 Scrap prices declined by $0.01 per Lb. The prices of 3003 Scrap too fell $0.01 per Lb. A down move of $0.01 per Lb was witnessed in 356 Aluminum Wheels and 6063 Extrusions/Fe. Meantime, prices of 5052 Scrap and 6061 Extrusions too dropped by $0.01 per Lb. 6063 Extrusions witnessed a decline of $0.01 per Lb over the day. The prices of Al/Cu Radiators and Al/Cu Radiators/Fe were down by $0.01 per Lb each. Aluminum Radiators went down by $0.01 per Lb each. Aluminum Radiators/Fe, Aluminum Transformers and Breakage 50% Recovery prices remained flat on 27th May.
Showa Denko reports success in UBC recycling program
The Japan-based manufacturing conglomerate Showa Denko (SDK), along with its various divisions, collected about 5.24 million used aluminum cans (UBCs) for recycling last year. SDK’s Showa Aluminum Can Corp., a subsidiary of Showa Denko, began its annual aluminum can recycling campaign more than 40 years ago. Since its start, the company's aluminum can recycling program has expanded and now covers 98 percent of SDK’s employees in Japan. The UBCs collected through the program are used primarily by Showa Aluminum Can Corp., which recycles the UBCs back into aluminum cans. In addition to aluminum Showa Denko manufactures and markets chemical products serving fields ranging from heavy industry to the electronic and computer industries. SDK makes petrochemicals (ethylene, propylene), aluminum...
Metro Mining to reveal resource and reserve upgrade
Metro Mining is focussed on the Bauxite Hills Project which is located in the world renowned bauxite province of Cape York, in Queensland, Australia. At the project pre-development and approvals have commenced, with a Pre-Feasibility Study completed. Production is on schedule for Q3 2016. The company is well-funded with A$4.6 Million in cash at the end of March 2015. The company has been granted trading halt by the ASX on June 1 morning, with the reason 'pending a resource and reserve upgrade'. The halt will last until the opening of trade on Wednesday 3rd June 2015, or earlier if an announcement is made to the market.
China's appetite for Malaysian bauxite grew in April; Australian ore lost favor
China still favored Malaysian bauxite in April owing to its prevailing price appeal, Shanghai Metals Market understood. Malaysian bauxite was $ 10-11 per tonne cheaper than Australian and Indian ore at $ 46.66 per tonne, allowing its imports to grow 275,700 tonnes from March and 29.11% from a year ago. However, imports from Australia and India fell 12.26% and 14.55%, respectively, on a monthly basis. China’s bauxite imports totaled 4.72 million tonnes in April, up 275,700 mt on the month and 29.11% on the year, customs data showed.
High demand spurs expansion in Compagnie des Bauxites de Guinée
Compagnie des Bauxites de Guinée (CBG), a bauxite miner in Guinea is planning an expansion worth $1 billion to meet the growing demands and increase its production to 23.5 million tons per year by 2018, announced the director general of the firm on Friday. Halco Mining consortium, controlled by Alcoa, Rio Tinto and Dadco Investments, is the majority stake holder in CBG with 51 percent ownership. According to the contract signed by CBG with Mubadala, Abu Dhabi’s state-owned investment fund and Dubal in 2013, the company will be supplying a total of 10 million tons of bauxite with the first 5 million due to be delivered in 2017. The high demand has encouraged the company to take up other supply deals as well invoking a need to expand their operations so that they can produce enough bauxite...
China alumina imports plunged 46.98% in April
China’s alumina imports plunged 46.98% from a year ago to 315,900 tonnes in April, customs data showed. SMM attributes the slump to to growing domestic supply and loss of appeal of imported alumina. Prices for domestic alumina kept falling as a result of growing output. Prices in Henan and Shanxi were 2,470-2,520 yuan ($398-406) per tonne and 2,440-2,480 yuan per tonne, respectively, last week, much lower than 2,580-2,630 yuan per tonne for imported alumina at the Port of Lianyungang, SMM data showed.
Hindalco’s profits hurt by falling aluminium prices
Hindalco Industries Ltd’s profitability took a hit in the March quarter, compared with the December quarter. Though its aluminium output rose smartly as its new capacity ramped up, falling prices and weaker metal premiums affected realizations. The copper business did relatively better but its profitability, too, declined. Aluminium production rose by 11.5% while that of copper rose 5.3%. In the March quarter, Hindalco’s stand-alone revenue rose by 8.9% to INR9,371.6 crore, over the preceding quarter, with aluminium leading the way with a 13.9% increase. But the aluminium division’s segment profit fell by a massive 20.3%, and copper segment’s profit fell by 1.6%. Lower realizations hurt aluminium margins, while copper suffered due to adverse market conditions, according to a company...
Aluminium set for biggest monthly loss in 2-1/2 yrs on supply glut
Aluminium slid on Friday on continued worries about heavy output from China swamping the global market and was on track for its biggest monthly decline in over 2-1/2 years. Three-month aluminium on the London Metal Exchange dropped 1 percent to $1,758 a tonne by 0943 GMT after gaining 2.2 percent on Thursday. Aluminium is set for a loss of 8.7 percent in May, the biggest monthly drop since October 2012, as data showed Chinese output rose to 2.59 million tonnes in April. "I definitely see more downside risks than upside potential for aluminium because of the supply glut," said analyst Daniel Briesemann at Commerzbank in Frankfurt. "Looking at the technical side, I wouldn't be surprised to see the price to drop to $1,700 and it would be very interesting if it crashes through this level."
Nalco Q4 net more than doubles at INR 355 crore
State-run National Aluminium Company (Nalco) on Saturday reported a more than doubling of its net profit of INR354.87 crore for the fourth quarter ended March on the back of an exceptional gain as against INR172.45 crore in the same quarter a year ago. New Delhi, May 30 (IANS) State-run National Aluminium Company (Nalco) on Saturday reported a more than doubling of its net profit of INR354.87 crore for the fourth quarter ended March on the back of an exceptional gain as against INR172.45 crore in the same quarter a year ago. The Bhubaneshwar-headquarterd Nalco said in a stock exchange filing that during the quarter in question there was an out-of-court settlement with the Odisha government regarding "disputed electricity duty, interest on unpaid electricity duty and the duty on...
Major automotive companies to present their newest lightweight achievements and competences in Shanghai
AUDI, GEELY and MAGNA together with DGS, Kurtz, Guangdong Hongtu, Kobelco, Sapa, Novelis, Strikowestofen and Voestalpine are going to present their newest lightweight achievements and competences at the up-coming Asia Automotive Lightweight Procurement Symposium, which will take place from the 6th – 8th of July 2015 at the Jumeirah Himalayas Hotel in Shanghai. The symposium provides an ideal location to listen and interchange with executive speakers and delegates from the aluminium, magnesium and steel industry at the only international symposium [Shanghai 2015 - Detroit 2015 - Duesseldorf 2016], focused on automotive lightweighting, supply chain and procurement management. The 2nd Automotive Lightweight Procurement Symposium is held in the days leading up to the Aluminium China and China...
Ingrid Joerg appointed president of Constellium’s Aerospace and Transportation business unit
Constellium N.V. today announced the appointment of Ingrid Joerg as President of its Aerospace and Transportation business unit effective June 1, 2015. Ms. Joerg will report to Pierre Vareille, Chief Executive Officer of Constellium. Ms. Joerg, who previously served as Chief Executive Officer of Aleris Rolled Products Europe, will replace Laurent Musy, who has decided to leave Constellium. Mr. Musy will spend a few weeks with Ms. Joerg before taking a top executive position in a company in another industry. “Ingrid brings to Constellium a wealth of international experience in the aluminium industry. Her primary focus at the Aerospace and Transportation business unit will be on continuing to improve operational performance and addressing capacity constraints to enable Constellium to...
New aluminium-clad Range Rover Sport SVR launched in South Africa
Land Rover launched the new Range Rover Sport SVR in South Africa claiming to become the company’s ultimate sports model being the first car to wear the coveted SVR badge. Next year, Jaguar F-Type SVR is likely to be the next model to wear the badge. With a lightweight aluminium body, the Range Rover Sport SVR is 39 percent lighter than its steel predecessor adding ease of maneuvering to the big vehicle making it significantly more agile. The five-litre supercharged V8 engine offers outputs of 405kW and 680Nm, giving it a roaring pick up of 0-100km/h in just 4.7 seconds. It reaches a top speed of 260km/h. Despite the ‘sports’ nametag, the car does not neglect its SUV roots and handles well in off-road terrains. The lighter vehicle does not compromise on strength and stability as it has...
Slight improvements noticed in metal prices say analysts
Aluminium and copper prices recovered from recent losses as the US dollar weakened against the euro and optimism grew over a Greek debt deal. However some analysts were cautious over whether gains could be sustained due to plentiful supplies. Most other base metals also rebounded from a recent downturn that had been partly due to a stronger US dollar, which makes commodities priced in the US currency more expensive to buyers using other currencies. The euro has gained against the dollar after Greece expressed confidence this week it will soon seal a cash-for-reforms deal. 'We've had a bit of a bounce this morning. One of the reasons is because the dollar has stopped appreciating, in the short term at least,' said Stephen Briggs, metals strategist at BNP Paribas in London. There was also...
ALPART brings hope for job opportunities in bauxite industry at St Elizabeth, Jamaica
Expectations are high in Junction, St Elizabeth, as stakeholders are of the view that the impending reopening of the Alumina Partners of Jamaica (ALPART) bauxite processing plant, and new opportunities in the agriculture and business process outsourcing (BPO) sectors should churn out numerous jobs for young people in the community. The three areas were cited as potential sources of employment by Richard Parchment, member of parliament for South East St Elizabeth, while speaking to the issue of youth unemployment at last Thursday's Job Creation, Investment and Growth Forum in Junction, put on by The Gleaner Company. "In terms of youth unemployment, it is a situation that we have happening in our area. The closure of ALPART took 1,200 people out of the workforce," said Parchment, making...
EU circular economy consultation launched
The European Commission on May 28 launched a 12-week public consultation on the main policy options which it says will feed into the development of an “ambitious new approach” on the circular economy. According to the Commission, stakeholders’ views will be put towards the preparation of a revised proposal on the waste review and a new action plan for a “competitive” circular economy, which will be presented before the end of 2015. The policy options will look at waste policy “and beyond” and address the full product lifecycle, the Commission said, including actions on intelligent product design, reuse and repair or products, recycling, sustainable consumption, recycling levels, smart use of raw materials, stronger markets for secondary raw materials and “specific sectorial measures”....
China Aluminium Scrap prices remain stable; SHFE Aluminium settles down
Chinese aluminium scrap prices stayed stable on Scrap Register Price Index as on Wednesday, while aluminium futures prices at Shanghai Futures Exchange traded down. According to the Scrap Register Price Index, the major Chinese aluminium scrap commodities like 6063 10-10 extrusion, aluminium, aluminium can, EC wire (Al >99%) remained flat on Wednesday. However, the most active August aluminium contract on the Shanghai Futures Exchange settled down by 45 yuan per ton to 13,220 yuan per ton on Wednesday from the previous close of 13,265 yuan per ton. The SHFE aluminium prices touched an intra-day high of 13,250 yuan per ton and an intra-day low of 13,185 yuan per ton during Wednesday. Aluminium futures prices at Shanghai Futures Exchange at its weakest in a year on rising supplies....
Vedanta India to buy up to 5.33% stake in Cairn India
Vedanta India will acquire up to 5.33 percent stake, worth over INR 2,200 crore, in its group concern Cairn India next week. Anil Agarwal-led Vedanta India, which changed the name from Sesa Sterlite last month, is a promoter in Cairn India. It will acquire up to 100 million shares of the company from another promoter Twin Star Mauritius Holdings Ltd. In a BSE filing, Vedanta said it will acquire up to 5.33 percent stake or 100,000,000 shares of Cairn India from Twin Star Mauritius Holdings on June 3, 2015 or within a period of 90 days for INR 220.40 per share. After the acquisition of the shares, Vedanta India's stake in Cairn India will grow from 18.73 percent to 24.06 percent, said the filing on Wednesday. Twin Star Mauritius Holdings held 39.41 percent stake in Cairn Indiaas of March...
Growing aluminium supply hurts prices
Aluminium hit its weakest in a year yesterday on rising supplies amid fears that the market is headed for the worst period in three years. Aluminium is in oversupply with a huge stock overhang, and output has continued to rise this year, with the latest industry figures showing daily average production rising to 68,500 tonnes in April. Norwegian producer Norsk Hydro said it would increase aluminium output by 35,000 tonnes per year. "Although LME stocks are falling there's (still) a lot of aluminium around and (then) we see large increases in production. Aluminium needs a deficit to erode overhead stocks," Fastmarkets head of research William Adams said. London Metal Exchange aluminium hit its lowest since March last year at $1,731 a tonne, and traded down 0.7 per cent in official midday...
