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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Alba participates in CRU’s 20th World Aluminium
Aluminium Bahrain B.S.C. (Alba), one of the world’s leading aluminium smelters, was a key sponsor and participant in CRU’s 20th World Aluminium Conference, which took place from May 11 to 13, 2015 at Dubai. Alba’s participation in this event demonstrated its support for global initiatives that help in boosting interactions between members of the aluminium industry. Moreover, Alba’s exhibition stand at the sidelines of CRU’s 20th World Aluminium Conference provided a platform to interact with potential trade partners during the event. Speaking about Alba’s participation in this Conference, Acting Chief Marketing Officer, Khalid Abdul Latif said: “CRU’s World Aluminium Conference plays a pivotal role in bringing together some of the leading decision makers from around the world, and...
Rusal sees aluminum market deficit erased on Chinese exports
United Co. Rusal, the world’s largest aluminum producer, said increasing Chinese exports may eliminate a market deficit of the metal this year. “Rusal doesn’t see the aluminum market in deficit this year after April,” Chief Executive Officer Vladislav Soloviev said to reporters on Wednesday, after the Moscow-based company reviewed its forecast. “There is a possibility that China will cover the whole deficit on the market this year, although we don’t see a metal surplus either.” The average price for the metal used in cars, airplanes and drink cans dropped in the first quarter from the preceding three months on concern over a supply glut this year. Rusal said on April 27 that it was keeping its forecast deficit, excluding China, at about 1 million metric tons as new supplies are slow to...
Southwest Aluminum to fill aluminum auto body sheet vacancy in China
Southwest Aluminum (Group) will start mass production on its self-developed aluminum automotive body sheet (ABS) in H2 2016, with annual capacity expected at 5,000 tonnes, local media reported. Due to restraints in capital, technology and equipment, made-in-China aluminum alloy automotive sheets are mainly used in vehicle structures, but its application in car body market stays vacant. Some Sino-foreign and Chinese brand car manufacturers have shown intention of buying aluminum ABS from Southwest Aluminum (Group), the media added.
Novelis appoints H.R. Shashikant senior vice president and chief human resources officer
Novelis, the world leader in aluminum rolling and recycling, today announced the appointment of H.R. Shashikant to the position of Senior Vice President and Chief Human Resources Officer, effective immediately. Shashikant was previously Group Executive President, Group Human Resources, for the Aditya Birla Group (ABG), the Mumbai-based conglomerate of which Novelis is a part. In his new role, Shashikant will be based at Novelis' global headquarters in Atlanta. "We are very pleased to have 'Shashi' join the Novelis team," said Interim President and Chief Executive Officer Steve Fisher. "He brings a wealth of experience in talent management, leadership development and HR practices, and I am confident he will play an important role in helping Novelis to continue its growth and achieve its...
Sam Walsh speaks of expansion plans in aluminium
At the Merrill Lynch global metals, mining and steel conference, Barcelona, Spain, Rio Tinto CEO, Sam Welsh, expressed his desire to continue pushing for growth despite the challenging environment. The tough environment for “subdued pricing and economic uncertainty” a lot of tough decisions had to be taken including job cuts for many able people, says Walsh. Rio Tinto has invested $4.8 billion for the modernization of its Kitimat aluminium smelter in British Columbia increasing its production capacity by 48% to around 420,000 tons/year. The modernization also allow 80% of Rio’s smelters to be in the first quartile backed by long-life, low-cost hydropower. “Our aluminium division has been working hard on productivity and cost for a number of years, delivering some low-cost creep tonnes...
Gulf Extrusions sees demand for aluminium products rising in Egypt
The United Arab Emirates's Gulf Extrusions, one of the largest aluminium product makers in the Gulf, said on Wednesday it would set up a commercial office in Egypt before the end of the year to take advantage of a growing market boosted by housing sector demand. The firm, part of the Al Ghurair Group, said it could see the market for extruded aluminium products in Egypt rising from 85,000 tonnes a year to around 300,000 tonnes in coming years, largely because of the need to build one million housing units a year there until 2020. "There will be a big leap and it will drive the demand for extruded aluminium products in the region as well," general manager Modar al-Mekdad told Reuters on the sidelines of the CRU Aluminium Conference in Dubai. "We already sell our products there through our...
Rio Tinto plans to expand its bauxite operations in South of Embley, Queensland
Rio Tinto plans to expand its bauxite operations and would be reviewing the feasibility study for South of Embley, in Queensland later this year. The South of Embley project will allow Rio to use an existing mining lease to expand its bauxite mining to a location south to its Weipa operations. The company will also be investing in infrastructural developments to support the business operations including power station, processing plant, warehouses, workshops, barge and ferry facilities and ship loading facilities. According to Walsh, this project will bring an expansion in the field of seaborne bauxite which will increase Rio’s volumes by about 50% in a market that generated 44% earnings before interest, tax, depreciation and amortisation margins on a free-on-board basis last year.
CSR’s aluminium division witnesses stand out performance
CSR's building products arm reported an 18 per cent rise in revenue to $1.2 billion and a 31 per cent rise in earnings before interest and tax to $121 million. The struggling Viridian glass division returned to profitability with EBIT of $3.1 million compared with last year's EBIT loss of $14.9 million. However it was CSR's aluminium division, which owns a stake in the Tomago aluminium smelter, that was the standout achiever. Revenue in aluminium rose 17 per cent to $533 million while EBIT soared 101 per cent to $104.3 million on the back of record premiums for delivery of physical aluminium in Asia. "The building products business is starting to see some volume growth and there is pricing tension in the market, but it was actually aluminium that shot the lights out," Credit Suisse...
Gujrat Mineral Development Corporation saw boost in shares after bulk deal
GMDC or Gujrat Mineral Development Corporation engaged in exploration and development of mineral resources like bauxite rose 1.24% to INR 97.95 at 11:56 IST on BSE, after 0.44% equity changed hands in a bulk deal on the BSE on 8th May 2015. The stock had underperformed the market over the past one month till 7 May 2015, falling 17.13% compared with 6.72% fall in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 19.88% as against Sensex's 7.38% fall. GMDC's net profit fell 3.2% to INR 79.68 crore on 12.2% rise in net sales to INR 326.37 crore in Q3 December 2014 over Q3 December 2013. As on 31 March 2015, the Gujarat state government held 74% stake in GMDC.
EGA exports to fall as local demand grows
State-owned Emirates Global Aluminium said on Tuesday its exports would fall to 77 per cent of its production by 2017 as a result of a rise in local demand. "There will be five new plants in Abu Dhabi," chief executive Abdulla Kalban told the CRU Aluminium conference in Dubai. He said the new plants would be located in the capital's Khalifa Industrial Zone Abu Dhabi (Kizad). Emirates Global Aluminium, which now exports around 88 per cent of its production, was formed by the merger last year of Abu Dhabi's Emirates Aluminium (Emal) and Dubai Aluminium (Dubal). It produces about 2.4 million tonnes of aluminium products per year. Kalban said last September that the company would boost output by only about 200,000 tonnes over the next six years. The firm, which also owns bauxite producer...
UC RUSAL announces results for first quarter ending 31 March 2015
Key highlights • The first quarter of 2015 was a challenging period for the aluminium industry. In particular, there was a 8.5% decrease in the average London Metals Exchange ("LME") aluminium price of USD1,801 for the first quarter of 2015 as compared to USD1,968 in the preceding quarter, as well as downward trend on product premiums across all key markets reducing the average realized premium of RUSAL by 1.2% as compared to the preceding quarter, which put pressure on the Company's margins. • Revenue in the first quarter of 2015 increased by 16.7% to USD 2,477 million as compared to USD2,123 million for the first quarter of 2014 due to the increase in LME aluminium price, growth in volumes sold and higher average realized premiums between the comparable periods. • Aluminium segment cost...
China A356 aluminum alloy operating rate rises to 63.2% in April
The average operating rate at 15 Chinese A356 aluminum alloy producers rose from a month ago to 63.2% in April, SMM’s latest survey showed. Output at those surveyed increased 4,000 tonnes month-on-month to 110,600 tonnes, SMM data showed. Processing fees for A356 aluminum alloy changed little from March at 700 yuan ($114)/tonne (delivery to factory). Operating rate at A356 aluminum alloy producers is expected to continue growing slightly in May since the increase in orders at aluminum wheel rim manufacturers has not been impressive.
Xingfa Aluminum to expand aluminum extrusion capacity to 500,000-tpy on market optimism
Guangdong Xingfa Aluminum Holdings plans to expand aluminum extrusions capacity to 500,000-tpy from current 350,000-tpy in coming five years, CNMN reported today. Liu Libin, Chairman of Xingfa Aluminum, holds positive views of the aluminum demand outlook, citing acceleration of China’s urbanization process, drive for lighter car body, and China’s "One Belt and One Road" initiative. The company, among China’s oldest aluminum extrusion producers, reported a 29% and 20% increase in sales of construction and industrial aluminum extrusions in 2014, the media added.
Aluminium Bahrain CEO optimistic about $2.5bn expansion approval in 2015
The chief executive of Aluminium Bahrain (Alba), owner of one of the world’s largest aluminium smelters, said on Tuesday he was optimistic the company would receive the needed approvals for its $2.5 billion Line 6 expansion project this year. “I am optimistic that we will get approvals in 2015,” CEO Tim Murray told an industry conference in Dubai. “We are pushing as a management very hard for this move forward,” he said. The plan will make Alba the largest single-site aluminium smelter in the world by boosting per-annum production by 400,000 metric tonnes at a time when demand for the metal is growing.
Rio Tinto Alcan sees possible deficit in 2015 in aluminium market
May 12 Rio Tinto Alcan, the mining giant's aluminium business, expects a global deficit in the aluminum market in 2015 despite good figures in the first quarter, the company's chief executive said on Tuesday. Speaking at the CRU Aluminium industry conference in Dubai CEO Alf Barios said he expected a pick up in demand in China. He also said he expected demand to grow by four percent per year and sees price volatility continuing in the short term while inventory levels by 2020 should fall to nine weeks from the current 12 weeks.
Ma’aden’s aluminium smelter to produce above initial capacity target in 2015
The giant JV aluminium smelter between Alcoa and Saudi Arabian Mining Co (Ma’aden) which reported a few technical glitches in the beginning is ready to produce above its initial capacity target this year, said representatives from Ma’aden. Although the project has officially started operations last year, it was not able to perform up to its capabilities due to technical difficulties producing an initial annual production of 740,000 tons per year. This year that number is expected to rise slightly higher to 760,000 tons. In a conference in Dubai, senior vice president Thomas Walpole said that70 to 80 percent of the smelter’s current production is being exported. The $10.8 billion project is segmented into three parts: bauxite mine, refinery, smelter and a rolling mill. Walpole says the...
Top aluminium producers underline the importance of aluminium scrap utilization
The nonferrous market in Europe may be finding some solid footing, which could be good news for the overall health of most nonferrous metals markets there. One sticking point continues to be China, which continues to send mixed signals on its economy. For aluminium, after a modest price rally, the metal has fallen quite significantly. Reflecting the challenges for European handlers of aluminium has been the drop in aluminium premiums. Various reports note that aluminium premiums in Europe have fallen by around 42% this year from last year’s level. Despite some difficulties, there does appear to be improved demand in a number of countries, with a sense that buying could start to strengthen later this year. Adding the positive signals, the European aluminium producer Norsk Hydro completed...
Novelis reports fiscal year 2015 results
Novelis, the world leader in aluminum rolling and recycling, today reported net income of $148 million for fiscal year 2015, a 42 percent increase from the $104 million reported in fiscal 2014. Excluding certain tax-effected items, net income increased four percent to $161 million in fiscal 2015. Adjusted EBITDA grew two percent to $902 million in fiscal 2015 compared to the $885 million reported in fiscal 2014. The increase was primarily driven by higher shipments, favorable product mix due to a strategic shift to grow automotive shipments and cost benefits from using a higher percentage of recycled metal inputs. Partially offsetting these gains were higher costs associated with the start-up and support of new capacity, lower pricing in some Asian markets, as well as unfavorable foreign...
