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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25 officials from top aluminium firms tour Gulfex factory
Gulf Extrusions (Gulfex), a leading global manufacturer of extruded aluminium products, has welcomed 25 senior officials coming from various leading international aluminium organisations to their production facilities in Dubai, UAE. The visit was held on the sidelines of the 20th edition of the World Aluminium Conference, which took place at the Madinat Jumeirah. The delegation included VIPs from the International Aluminium Institute, European Aluminium Council and the Aluminium Federation, said a statement. During their tour of the facilities, the delegates were given a presentation and briefing on the company’s health and safety procedures, guidelines and best practices. Gulfex, which has just been awarded the ‘2015 Best Practices Award for Aluminium Extrusions’ from the ‘Excellence in...
Aluminum Extruders Council applauds prison sentence issued by federal judge
On Thursday May 14, 2015 Federal Judge Francisco Besosa in Puerto Rico handed down an 18-month prison sentence to Armando Garcia Vazquez, who pleaded guilty to participating in a fraud scheme to transship aluminum extrusions through Malaysia from China into Puerto Rico in order to avoid paying two million dollars in duties. This is the first time prison time has been issued for violating the aluminum extrusion orders. The Judge rejected the agreement reached by the defendant’s lawyer Francisco Rebollo and US Attorney Scott Anderson, who recommended a sentence of probation. Steve Lausell and Alberto Recio of Lausell Del Caribe, LLC an aluminum extruder in Puerto Rico, testified before the judge arguing for a stiffer penalty in order to send a message aimed at deterring other aluminum...
China alumina output grew 14.2% in April on expansions, production resumptions
China’s output of metallurgical-grade alumina grew 14.2% from a year ago to 4.64 million tonnes in April, SMM’s survey found. The growth was contributed mainly by commissioning of new capacity and restart of idled capacity in Shandong and Chongqing, SMM learned. One alumina refinery in Shanxi temporarily shut down 1.8 million-tpy capacity after an accident. But this was partly offset by commissioning of 800,000-tpy alumina line in Guizhou.
MWSD designs special forged aluminium wheels for glass transportation
Motor Wheel Service Distribution (MWSD) has launched a new forged aluminium wheel named Xlite ET45 built specifically for three-axle, multi-functional, inloader semi-trailers. The product is aimed primarily aimed at the glass transportation companies throughout Europe both OE and replacement markets. With its 11.75”x 22.5” size, 24.4 kg weight and load bearing capacity of 5,000 kg, this 10-stud wheel is ideal for the targeted industry. John Ellis, managing director at MWSD, said: “There is very specific demand from a number of key European trailer manufacturers and operators, all of whom require several specific safety and performance requirements for the unique operational nature of this particular industry. “We have worked closely with Wheels India to design a forged aluminium product...
JW Aluminum issues 2015 First Quarter Results and to host investor conference call to review results
JW Aluminum Company announced on Friday that they have posted their 2015 Quarterly Report for the three months ending April 4,2015 on their secure investor website at 3.40 PM Eastern Time on the same day. There will be a conference call hosted by JW Aluminum’s management on Wednesday, May 20, 2015 at 11:00 AM Eastern Time to discuss the first quarter results. This will be a closed conference and access will be limited to holders and beneficial owners of the JW Aluminum’s Senior Secured Notes due 2017. Qualified prospective investors and selected security analysts and market makers will also be welcomed at the conference. Information about how to participation in the conference will be posted on the secure investor website and can be accessed only by certified users via Intralinks.
Substituting aluminum for steel in siding to gain popularity
Many aluminum processors are using aluminum siding in their factories, so do some pavilions, due to its lightness, corrosion-resistance and recyclability, CNMN reported. Aluminum siding is more economical than traditional color steel siding, CNMN quoted Wen Xianjun, Deputy General of the China Nonferrous Metals Industry Association (CNIA) as saying. Given current aluminum prices, aluminum siding costs just about 10% more than steel siding for a house of the same area. However, aluminum siding is virtually maintenance free, while color steel siding needs maintenance after five years of usage. That is to say aluminum siding is more cost effective than steel one in the long term. According to rough estimate, China consumes 200-300 million tonnes of color steel siding annually, Wen said. This...
Prescott Brewing Company expands canned offerings
To meet growing demand for its beers, Prescott Brewing Company has expanded its canned offerings. Achocolypse has joined Ponderosa IPA and Liquid Amber Ale, becoming the brewery’s third beer available in Rexam 12 oz. cans. Achocolypse has been in development for over three years to create the perfect blend of dark and bitter chocolates infused into a classic Porter. Ponderosa India Pale Ale is a medium bodied ale, with a light copper color characterized by an intense hop flavor and a full flowery hop aroma. Liquid Amber is a smooth and flavorful medium bodied ale with a malty caramel flavor and little hop character. Named after the historical Arizona town where it is located, Prescott Brewing Company first opened its doors more than 21 years ago. In 2011, the brewery built a new off-site...
UAE is No. 1 aluminium supplier to Japan in GCC
The UAE ranked top among Gulf countries for aluminium supply to Japan in 2014 and also got the second position after Saudi Arabia for total trade with the Asian country. Japan’s import of aluminium from GCC countries surged by 44.77 per cent to $1.1 billion in 2014 compared to $756.88 million in the previous year. Most of the additional supply came from the UAE, from where imports grew by 41.37 per cent in 2014. The UAE was the fourth-largest supplier in the world with a share of 8.28 per cent of Japan’s total aluminium imports. The value of Japan’s bilateral trade with GCC countries contracted 3.82 per cent in 2014 to $164.76 billion, compared to $171.31 billion in 2013. The decline was mainly attributed to an estimated 4.28 per cent average fall in the price of crude oils that Japan...
Aluminum cans in wider use for canned coffee
Aluminum cans are increasingly being used for canned coffee in Japan, grabbing market share from steel, the conventional material for containers of the ubiquitous beverage. According to data from the Japan Soft Drink Association, the market share of steel cans fell to 45.7 percent in 2014, while that of aluminum cans increased to 22.3 percent. Plastic bottles accounted for 20.3 percent. In the face of growing competition from aluminum cans, steel makers and can manufacturers are working hard to reduce the weight of their products. As aluminum is weaker than steel, the inner pressure of an aluminum can needs to be higher if it is to be used as a beverage container. But high inner pressure makes it difficult to carry out checks for bacteria inside the container. Therefore, the soft drink...
Japan Kobesteel aims to grab China automotive aluminum sheet market share
Kobesteel’s automotive aluminum sheet factory in Tianjin is under construction and scheduled to start production early next year, CNMN reported. The factory, with total investment at 389 million yuan ($63 million), will produce 100,000 tonnes of automotive aluminum sheet annually. Sinosteel is proud to claim 50% of market share in Japan’s automotive aluminum sheet market. China’s automobile production hit 23.72 million units in 2014, more than twice of that in Japan. The new factory in China represents Kobesteel’s ambition to grab market share in China and optimism over the automotive aluminum sheet market.
US Aluminium Scrap prices show flat trend; LME Aluminium settles down to $1,846 a ton
United States major aluminium scrap commodities prices showed a flat trend on Thursday, while the futures prices at London Metal Exchange settled down 0.7% at $1,846 a ton. As per Scrap Register Price Index, major aluminium scrap commodities like 356 auto wheels, 5052 alum clip, 6061 alum extrusion, 6063 10-10 extrusion, al/cu rad with iron, al/cu radiator, alum breakage 50%, alum litho sheets, alum old sheet, alum rad with iron, alum radiator, alum transformer, alum transmission, alum turning, mix alum casting remained almost a flat trend on Thursday. Aluminium futures prices at London Metal Exchange traded down on Thursday as market capitals failed to stimulate commodity trade, weighing on prices. US initial jobless claims just slipped 1,000 to 264,000 in the week ending May 8, better...
Rio Tinto puts aluminium assets on block in potential $1bn deal
Rio Tinto is making a fresh attempt to sell unwanted aluminium assets in a potential $1bn deal, the latest sign of global miners’ attempts to restructure in the face of a commodities downturn. The Anglo-Australian company has engaged Credit Suisse to find a buyer for its Pacific Aluminium business, a group of smelters in Australia and New Zealand, according to people aware of Rio’s plans. The move is part of trend among mining groups, which are cutting back on non-core assets. BHP Billiton, the world’s largest mining company, is spinning off a collection of assets into a separate company called South32, which is due to start trading Monday. Rio has not created a separate spinout vehicle but has sold $4bn of assets in the past two years, chief executive Sam Walsh said this month. The...
UK needs to develop stronger policies in waste management
The European Commission has decided to scrap its circular economy package which targeted 70% recycling by 2030 for a more ambitious plan to be released later this year according wide-spread reports. However, it might not be the best approach for UK to blindly follow the EU regulations as the waste produced and the way it is dealt with is different between UK and the other EU member states. UK must create its own policies that suit its requirements better. Under the circular economy package, the targets for recycling in Europe were 70% for municipal waste by 2030, 80% recycling and reuse rate for packaging waste and 90% for ferrous metals, aluminium and glass by 2030 among others. UK industry is ready to meet these targets if not surpass them if the government reacts positively by...
Curbing the illegal mining of bauxite in Karnataka
As per section 23C of the Mines and Minerals (Development and Regulation) Act, 1957 state governments have been empowered to make rules for prevention of illegal mining and for purposes connected therewith. Therefore, matters relating to regulation and control of illegal mining, etc are all matters which lie in the domain of state governments. However, the Ministry of Mines in co-ordination with State Governments has taken the following steps to curb and check illegal mining in the Country: (i) Regular monitoring of framing of rules by the State Governments to control illegal mining as per Section 23C of MMDR Act (so far 20 States have framed the rules under section 23C of MMDR Act, 1957 to curb illegal mining); (ii) Regular monitoring of setting up of Task Forces at State and District...
Stronger dollar steers Romanian aluminum producer Alro back to profit
Romanian aluminum producer Alro Slatina, part of international group Vimetco, posted an adjusted net profit of some EUR 5.17 million in the first quarter of 2015, compared to an adjusted loss of EUR 10 million in the same period of last year. The company’s turnover went up by 20.5%, in local currency, to the equivalent of EUR 134 million. The sales increase was mainly supported by the stronger dollar, as the average USD/RON exchange rate was about 20% higher in Q1 2015 compared to Q1 2014. Alro also increased its production of primary aluminum and processed aluminum, and the average aluminum price on the London Metal Exchange went up by 5% compared to Q1 2014, to an average of USD 1,800 per ton. The stronger dollar also had a less favorable effect on the company’s results mainly due to...
Century Aluminum US plant lockout in prospect after union rejects deal
The United Steelworkers union has rejected a pay deal from Century Aluminum for workers at the fourth-largest aluminium smelter in the US, the local branch said on Tuesday, and a lockout is now set to go ahead. Unionised workers at the Century Aluminum smelter in Hawesville, Kentucky, had voted on Monday on the revised labour deal after management agreed to postpone a lockout of staff to Tuesday. The rejection of the deal, which would replace the contract that expired at end-March, was posted on the website of the Hawesville branch. Century, which is controlled by Glencore, said it is prepared for a lockout which will start on Tuesday morning and is expected to continue to operate at full production. The smelter has a capacity of 244 000 t/y. The vote "leaves us with no choice but to lock...
Bridgnorth Aluminium's extension plans await approval
Bridgnorth Aluminium plans to build a research and development laboratory that will employ 65 people. On Tuesday, there was a discussion by Shropshire Council’s south planning committee regarding the rolling mill installation and has been recommended for approval. The project will include an air purification building, exhaust stack, oil filter plant and transformer closure. A meeting in Shirehall will decide the planning permission for the stacks, which will rise up to 26 meters at their highest preventing rolling oil from entering the atmosphere. James Gittins, chairman of Bridgnorth Town Council planning committee, said: “The plans were brought before full council and recommended for approval. “But there were reservations about the height of the stack and we have asked for an...
Rusal predicts that Chinese aluminium oversupply might end soon
Rusal, the world’s largest aluminium company, predicts that China’s overproducing trend in aluminium may finally come to an end. China saw a boom in exports by 49% in the first quarter but because the price arbitrage has become a lot less attractive, the exports are likely to fall soon according experts like Rusal and commodities correspondent Henry Sanderson. The constant flow of aluminium from China has been a point of concern for aluminium producers across the world. China has been shipping out aluminium thinly veiled as semi-fabricated aluminium products and receiving tax rebate from the government while the products are remelted and used as primary aluminium outside the country. Rusal along with its results has also reported a steady fall in China’s semi-fabricated aluminium from...
