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...
Grow with
AL Circle
Aluminium demonstrates strong performance this year
Aluminium had been mostly ignored through much of the commodities boom in the first decade of the 2000s, thanks mainly to high supply coming from China, aluminum had been performing strongly this year, along with other metals like copper, zinc and lead. But since hitting a 12-month high on May 5 at $1,886 a ton, prices for the benchmark three-month aluminum futures have slipped 4.7% while other commodities have continued strengthening. The fall in prices is rattling aluminum producers such as Russia’s United Co. Rusal, which this week warned of a “new turn” in the global market for the metal. One factor troubling Rusal is the rising tide of Chinese aluminum exports. That could gather pace after China this month removed a 15% export tax on aluminum products.
Altech appoints Simulus as EPCM parter for Meckering
Highlights • Appointment of local company Simulus Engineering as EPCM partner for Meckering • Simulus was instrumental in testwork and development of flowsheet • Simulus is the key engineering contractor on the BFS Altech Chemicals Limited is pleased to announce that it has now appointed Simulus Engineering Pty Ltd (Simulus) as its Engineering, Procurement, Construction and Management (EPCM) partner for its proposed kaolin beneficiation plant at Meckering, Western Australia. Simulus has been the key engineering partner during the bankable feasibility study (BFS) phase of the project. The Meckering beneficiation plant will enable the initial simple wet processing of kaolin to remove oversize silica, followed by drying to reduce moisture content. The resultant upgraded kaolin will be packed...
European producers under pressure as aluminum 'all-in' price falls
Aluminum producers are expected to be under increasing pressure as the aluminum ‘all-in’ price (London Metal Exchange cash price + premium) has fallen over the last few months on the back of lower global premia, while the LME aluminum cash price has largely remained unchanged. LME cash price has traded in a tight $180/mt range for most of this year — practically unchanged from levels seen back in mid-October and mid-December. At the same time, the Platts European duty-paid aluminum premium assessment has come off around $350 since mid-November when it peaked at a record high of $500-510/mt. Platts assessed duty-paid aluminum at $150-160/mt plus LME cash, in-warehouse Rotterdam May 11. In theory, the lower all-in price should start to eat into smelter margins and see producers under...
Vietnam’s spot aluminum demand picks up as China’s semis exports fall
Spot import demand for primary aluminum ingot in Vietnam has picked up in the last month or so, as exports of Chinese remeltable semi-finished products decreased, trader and producer sources said Wednesday, May 13. Spot deals have closed this month at $200-$230/mt plus London Metal Exchange cash, CIF main Vietnam port, said Japanese and South Korean traders. The deals were for lots ranging 100-1,000 mt, mostly for June delivery, said traders. One lot of less than 300 mt was confirmed to be Middle Eastern in origin. Sources attributed the increases in the Vietnamese spot demand to Chinese supplies of remeltable semi-finished products, used as ingot substitute, decreasing. “Fake aluminum in Vietnam is not as visible as before,” said a producer source. The spread between Shanghai Futures...
Chinese aluminum smelters suffer, but processors heap profit
Many aluminum smelters in China are suffering losses, while aluminum processors make big money, a local source reported. Chalco, China’s top aluminum producer, swung into its largest-ever net loss 16.2 billion yuan ($2.6 billion) in 2014. Yunnan Aluminum Co., another large aluminum smelter, also suffered a loss of 467 million yuan ($76 million) last year. China Zhongwang Holdings, the country’s leading industrial aluminum extrusion manufacturer, reported a net profit of 2.48 billion yuan ($410 million) last year, up 16.5% from a year ago. Xingfa Aluminum Co., one of China’s oldest construction aluminum extrusion producers, also posted a net profit of 224 million yuan ($37 billion). The aluminum industry has been mired in severe overcapacity for years, leaving aluminum prices sluggish....
Novelis displays aluminum for high volume automotive solutions at Auto Shanghai 2015
Novelis, the global leader in aluminum rolling and recycling, will showcase its portfolio of cutting-edge automotive aluminum applications at Auto Shanghai 2015, the 16th International Automobile and Manufacturing Technology Exhibition through April 29. Driven by automakers’ growing need to produce lightweight vehicles to achieve fuel efficiency and reduced greenhouse gas emissions aligned with the Chinese government’s own initiatives for sustainable growth, demand for high-quality automotive aluminum is accelerating in China. Novelis forecasts the global demand from automakers for aluminum sheet will grow by approximately 30 percent each year through the end of the decade. As the global market leader in automotive aluminum applications, Novelis will showcase its AdvanzTM automotive...
Albemarle's arm Chemetall buys aluminium finishing business of Chemal GmbH
Chemetall, a global business unit of the US-based Albemarle Corporation, has acquired the business of Chemal GmbH & Co KG, based in Hamm, Germany. This transaction will enhance Chemetall's integrated portfolio for the aluminium finishing industry. Chemal GmbH & Co KG, founded in 1975, specialises in research and development of surface finishing chemicals for aluminium and its alloys with emphasis on anodising and pretreatment technologies. "Consisting of advanced pretreatment and anodising technologies, Chemetall is one of the few players globally positioned with a comprehensive product range for the aluminium finishing industry. This transaction will expand our expertise in this market and, combined with strong technical services offered by our wholly-owned subsidiaries around the world,...
Coca-Cola wants more done on aluminum waits as costs run high
The London Metal Exchange hasn’t done enough to reduce the time it takes to withdraw aluminum from warehouses, said William Hovis, who helps oversee Coca-Cola Co.’s purchases of the metal. Hovis, chief procurement officer at the company’s bottling investment group, echoed concerns from other aluminum buyers such as MillerCoors LLC after lengthy wait times at LME storage facilities led to inflated rent charges. The surcharge added to the price of metal for immediate delivery on the LME, known as the premium, is a “significant cost” for the world’s biggest beverage company, according to Hovis. Coca-Cola supports the LME’s proposal to limit rents at some warehouses, he said. “The LME has taken good steps forward, yet we don’t think they’ve gone far enough,” he said at the CRU World Aluminium...
Rexam to sponsor AmeriCAN Canned Craft Beer Festival for fourth year
To help spread the word that aluminum cans are the ideal package for craft beers, Rexam will be the presenting sponsor of the annual AmeriCAN Canned Craft Beer Festival on Saturday, May 16th, 2015, at the Scottsdale Civic Center in Scottsdale, Arizona. This is the fourth year the company has supported this event which celebrates the canned craft beer revolution. In 2014, craft beer volume sales increased more than 17 percent, and dollar sales were up 20.5 percent based on data from Chicago-based Information Resources Inc. Now in its fifth year, the AmeriCAN Canned Craft Beer Festival will feature more than 300 canned craft beers from local and national breweries and include food, music and other entertainment. Rexam will continue its mission to increase aluminum can recycling, providing...
Constellium reports solid first quarter 2015 financial results including Wise Metals
Constellium N.V. today reported results for the first quarter ended March 31, 2015. Highlights below are in comparison to the first quarter of 2014. • Shipments of 381 thousand metric tons, up 41% • Revenue of €1.4 billion, up 58% • Adjusted EBITDA of €95 million, up 34% • P&ARP revenue more than doubles due to the acquisition of Wise Metals • Automotive rolled shipments up 19%; Automotive extruded shipments up 12% • Positive foreign exchange impact on Adjusted EBITDA partially offset by negative effect of premiums • Diluted EPS of (€0.30); EPS excluding unrealized losses on derivatives of (€0.02) Constellium reported solid first quarter 2015 results, including Wise Metals, our newly acquired Muscle Shoals, Alabama packaging facility, which is reported in our P&ARP segment. Revenues for...
Landowners receive $200,000 for bauxite mining
The Naita land owning unit of Lekutu, Bua to date received a total premium of $200,000 from bauxite mining works on their land. Lekutu landowner Tevita Raiova said the premiums covered the roads, land lease and bauxite ore extracted from their land. Mr Raiova confirmed they were yet to receive royalties for rocks and soil, adding that they were happy with the premiums received so far. He said they had an understanding with the Ministry of Lands regarding the royalty for soil and rocks, however, they were informed by the ministry that they (ministry) were still working on a formula for the distribution of royalty monies.
Trek adds aluminum-frame models to Émonda road bike line
Trek Bicycle is expanding its Émonda road bike line — which is highlighted by its super-light Émonda carbon frames introduced last year — to include a new aluminum frame model, the Émonda ALR. Trek did not release pricing information but said the line brings Émonda features to an "aluminum price point." The ALR is still quite light, with Trek claiming a 56cm frame weighs 1,050 grams. A complete bike with Shimano 105 parts comes in at a claimed 18.77 pounds. The frames are made with Trek's "Invisible Weld Technology," which is said to use less material for a lighter connection that is also smooth aesthetically. The frame tubes are hydroformed 300 Series Alpha Aluminum. The bikes have full carbon forks and have Trek's integrated speed and cadence sensor, DuoTrap S. The bikes use Trek's H2...
Aleris reports first quarter 2015 results
First Quarter 2015 Results Adjusted EBITDA totaled $55 million for the first quarter of 2015 compared to $43 million for the first quarter of 2014. First quarter results were impacted by the following: • Higher shipment volumes of 15 percent, due primarily to our acquisition of Nichols, 17 percent higher automotive volumes, 3 percent higher global aerospace volumes, and 24 percent higher truck trailer volumes, led to an increase of approximately $5 million of Adjusted EBITDA; • Improved rolling margins, primarily from North America, contributed $4 million of Adjusted EBITDA; • Improved scrap spreads, as well as lower raw material prices in Europe, increased Adjusted EBITDA by approximately $2 million; • A stronger U.S. dollar contributed to higher margins and currency exchange gains...
Technical Glass and Aluminium Company wins contract for external façade in Jeddah
Lamar Investment and Real Estate Development Company, a leading real estate developer based in Saudi Arabia, has awarded an external façade contract worth SR200 million ($53 million) to UAE-based Technical Glass and Aluminium Company, for its upcoming project in Jeddah. Work on the façade is scheduled to start in the second half with the landscaping works set to begin in early 2016. As per the deal, the Technical Glass and Aluminium Company’s scope of work includes the design and supply of glass and aluminum and all the façade works of the prestigious towers including the unitised curtain walls, precast, stone panel and the cladding panel. Bakr R. Nazer, the CEO and managing director of Lamar Investment & Real Estate Development Company, expressed delight at having reached a significant...
Hindalco slips on weak performance by Novelis
Shares of aluminium major Hindalco fell over 3 per cent on Wednesday after its US subsidiary Novelis reported weak results. A 20 per cent drop in operating profits during the March quarter dampened investor sentiment as the subsidiary brings in around two-third of Hindalco’s consolidated revenues and one-third of the company’s profits. The fall in profits at the world's largest producer of rolled aluminium products was on account of three main factors. One, a strong dollar led to a sharp decline in regional metal premiums in its main markets such as Brazil and Europe thus resulting in losses to the tune of $28 million. This is an ongoing concern for the company and may continue to dampen the profits. Two, there was a loss of $37 million due to aluminium price lag. This happens on fixed...
Alum Tulcea allocates 30% of 2014 profit for retooling
Approximately 30% of the 2014 net profit recorded by alumina producer Alum Tulcea will be allocated for retooling and the rest will be distributed to cover losses from previous years, the operational manager of the company Nicolae Anghelovici told Agerpres after Alum’s debut on AeRO market. In 2014, Alum Tulcea saw a net profit of 47 million lei, after in 2013 it recorded losses of some 137.5 million lei, over eight times higher than in 2012. Alum Tulcea is the only alumina producer in Romania, with a production capacity of 500,000 tonnes per year. The alumina produced by the company is supplied on the domestic market to Alro (ALR), part of Vimetco Group, as well as on foreign markets. In 2014, Alum recorded a turnover of 534 million lei, up by 3% compared to the previous year (518...
APID faces possible lease cancellation despite paying all dues, claims company
Four shipments of bauxite have been shipped out by Asia Pacific Investment Development appointed Bintan Mining SI Limited from its Rennell operations according to custom reports. A total of $1.2 million has been paid as export duty to the government for the China bound shipment dispatched in February. Bintan SI Limited was appointed by APID to carry out the mining operations while the latter held the mining lease and there are valid records to prove they have paid a royalty of $342,567 to landowners last month. Since the landowners do not have a bank account, the money is held at the Central Bank. According to the documents, a total sum of $1.6 million per year has to be paid to Renbel Province for mining operations which include business license and other fees. A spokesperson from APID...
Metro Mining steps up bauxite marketing with China appointment
Metro Mining has appointed the former Chairman for Traxys China and Comalco executive Norman Ting to assist with marketing of the Bauxite Hills Project on Cape York, north of Weipa to alumina refineries. Ting has over thirty years of experience and contacts in Asia trading bauxite to fall back on which is useful as Metro Mining positions it Bauxite Hills project to commence production in 2016. Bauxite is projected to be supply challenged within two years given the ban by Indonesia on export of unprocessed minerals which caught bauxite in its net. Providing a vast opportunity for Bauxite Hills, with China's Xinfa Group sitting on a 7.8% shareholding and also assisting in finding off takers for bauxite to move the advanced project into production. The Mine Plan includes a JORC Ore Reserve,...
