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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China stimulus, jobs worry may boost some commodity exports: Russell
China's efforts to re-energise its economy through interest rate cuts are probably not enough to give much of a boost to commodity import demand, but oddly enough may act to boost some commodity exports. The People's Bank of China cut interest rates for the third time in six months on May 10 in the wake of weaker-than-expected trade and inflation numbers. It's no secret that both Chinese steel and aluminium producers have been struggling to stay in the black in recent years, given overcapacity and slower economic growth. Additionally they are confronting pollution issues and government policies that are encouraging a move toward a more consumer-driven economy and less reliance on export-orientated heavy manufacturing. Nonetheless, for now these industries remain vital employers of large...
EGA takes two awards in the 2015 Ideas.Arabia Idea of the Year Competition
The corporate commitment to innovation at Emirates Global Aluminium (EGA) has once again received independent recognition - this time through the award of top honours in two categories of the 2015 Ideas.Arabia Idea of the Year competition. The latest wins bring the total number of Ideas.Arabia Idea of the Year awards won by EGA to a total of 24, with operating subsidiaries Dubai Aluminium (DUBAL, also known as EGA Jebel Ali) and Emirates Aluminium (EMAL, also known as EGA Al Taweelah) having secured awards in previous years. This year's honours comprised: • Best Sustainable Ideas Scheme, which was awarded to the EGA Suggestion Scheme. This category was introduced for the first time this year by the organisers, Dubai Quality Group (DQG), to award schemes that have successfully been running...
New study affirms metal as a packaging material perfectly suited to a circular economy
Aluminium and steel fulfil the criteria for ‘permanent materials’ as defined in a study by the Swiss consultancy Carbotech AG. The study confirms that the current approach of classifying materials as renewable or non-renewable is insufficient for the development of good practices in sustainable resource management. Carbotech, in collaboration with the University of Applied Science Northwestern Switzerland (FHNW), conducted a scientific study to look closely at the characteristics of materials to provide a clear, unambiguous and simple basis for material classification. In the study, permanent materials are defined as those whose inherent properties do not change during use and regardless of repeated recycling into new products. Their recycling does not necessarily require the addition of...
Paulwell to visit Russia in June
Science, Technology, Energy and Mining Minister Phillip Paulwell announced on Thursday that he will be visiting Russia in mid-June for talks with government officials as well as officials of UC Rusal, the aluminium giant which owns Alpart. "The Russian Government has invited myself and a team to visit Russia and we have accepted the invitation and we will be going to Russia on or around 13th of June," said Paulwell, who was visiting Alpart in Nain, South East St Elizabeth for a familiarisation tour. "In addition to meeting at the highest levels within Rusal, we will be having discussions with the ministry of energy in Russia," Paulwell said. The minister said discussions with Russian officials would also include the future role of Russia and other BRIC member-countries in relation to "the...
Alpart ready to export bauxite to Rusal as it awaits its December 2016 reopening
Timothy O’Driscoll has been promising the reopening of the Alpart alumina refinery ever since he took over as managing director in 2009. Although there is still an expected 18-19 months time for that dream to be realized, last Thursday there was a glimmer of hope with the visit of Phillip Paulwell. The Mining minister got a rare walkthrough of Alpart, the mining operations as well as Port Kaiser that is being prepared for bauxite shipment in July. While the refinery plans to reopen, the mining and stockpiling operations of fresh bauxite have begun in March. Under a recent agreement between the Jamaican Government and Alpart’s Russia-based company Rusal, two million tons of raw bauxite will be exported to Russia bringing home revenue US $60 million. Igor Dorofeev, country manager for UC...
Noranda eyes boost in bauxite exports, but tax matter unresolved
Now that it has completed the expansion of its port in Discovery Bay, St Ann, Noranda Aluminum Holding is looking at boosting bauxite exports from Jamaica. Its current lease gives it room to sell at least an additional 400,000 tonnes of bauxite each year, but the company suggested that it might go after even greater tonnage. "Although the economics of this investment (the US$11-million port expansion project) are supported by the savings in shipping costs, the project also provides the opportunity to increase our third-party bauxite volume based on demand at a sufficient price and approval by the government of Jamaica," said Noranda in its filing to the US Securities and Exchange Commission (SEC). The mining company shipped 1.24 million tonnes of bauxite during the three months to March...
Middle East draws in Spanish-based aluminum extrusion manufacturer Tecalex
The Aluminium Middle East held in April revealed a lot of interest among industry participants to invest in the aluminium sector of Middle East particularly downstream segment. Low energy costs and cheap labour are the main attractions in the Middle East and companies like Spanish-based Tecalex have shown interest to set up multiples units in the Middle East to develop their designing and manufacturing equipment for aluminium extrusion business. "We are also finalizing plans to expand our operations in Saudi Arabia, Qatar and Oman. The expansion plan includes two more plants in Saudi Arabia, a second plant in Qatar and two additional extrusion units in Oman," said Miguel-Angel Calvo, Senior Sales Manager for Latin America, Middle East and Africa, Tecalex, which is participating in the...
Union leaders want to continue contract negotiations with Century Aluminum
United Steel Work Local 9423 leaders announced they want to continue contract negotiations with Century Aluminum. Union President Mike Gaynor released a statement Wednesday afternoon that says the union urges Century Aluminum management to take back its unfair and unnecessary threat to lockout union members. Union leaders say they are committed to resolving the remaining issues at the bargaining table so members can focus on their jobs instead of preparing for a labor dispute. Century Aluminum recently announced a lockout for May 11.
Bell Bay Aluminium acquires deal from Tasmanian government securing 1,500 jobs
Bell Bay Aluminium had urged the government of Tasmania in February that increasing the electricity rates will hit the company hard and may result in large scale jobs cuts. In return, the government has struck a secretive deal with the firm that could secure the 1,500 jobs that were in risk. The details of the deal were not revealed by either Tasmania’s Energy Minister Matthew Groom or GM of Bell Bay Ray Mostogl citing commercial sensitivities. What is known is that Bell Bay has assured they will be increasing their power consumption by 10 percent and investing $30 million to upgrade the plant. Mr. Mostogl says that the deal was not indicative of creation of new jobs but rather securing of the existing ones. The new investment of $30 million made by the parent company Rio Tinto Alcan is...
Indian aluminium scrap prices remain flat; MCX Aluminium settles down
Indian aluminium scrap prices on Scrap Register Price Index remained flat on Wednesday, while aluminium futures prices at India's Multi Commodity Exchange traded down. As per Scrap Register Price Index, major copper scrap commodities like aluminium accessories scrap, aluminium ingots, aluminium rod company, aluminium rod local, aluminium sheet cutting, aluminium utensil scrap, aluminium wire scrap traded almost flat on Wednesday. However, the most active May aluminium contract on Multi Commodity Exchange last traded down by 2.20% to Rs. 121.85 per kilogram from previous close of Rs. 124.60 per kilogram. The MXC aluminium prices touched an intra-day high of Rs 125.60 per kilogram and an intra-day low of Rs 120.90 per kilogram. MCX aluminium settled down on Wednesday gave back most of gains...
Canyon Resources in halt ahead of capital raising
Canyon Resources has been granted an ASX trading halt in relation to a capital raising. The halt will last until the earlier of the announcement being made or the start of trade on Friday, 8th May 2015. Canyon is focused on advancing development of the Birsok Bauxite Project in Cameroon. During the March 2015 Quarter, it completed geological mapping, drill target definition and access clearing of newly defined bauxite plateaux ahead of the upcoming drilling program.
BJD opposes divestment of National Aluminum Company
Government's plan to divest 10 per cent of its stake in navratna firm National Aluminum Company (NALCO) was today opposed in the Rajya Sabha by the BJD which said profit-making firms should not be sold. Raising the issue during Zero Hour, Dilip Kumar Tirkey (BJD) said Nalco was a profit-making PSU and warned of labour unrest if the government went ahead with the divestment plan. He said BJD and Odisha Chief Minister Naveen Patnaik were opposed to disinvestment and urged the government to withdraw such plans. He said the government should choose loss making PSUs for stake sale. Presently, Government of India holds 80.93 per cent equity in Nalco. Sanjiv Kumar (JMM) raised the issue of Fertilizer Corp of India's (FCI) Sindri plant in Jharkhand lying shut since 2002. He said during the Lok...
Presezzi Extrusion to upgrade Kato Light Metal Industry's existing presses
The company Kato Light Metal Industry has entrusted to Presezzi Extrusion the replacement of two existing presses with two 23MN front Loading presses equipped with double tooling for 6" and 8". Both presses are designed end engineered to serve the automotive industry and to meet its technical requirements and quality. These presses are equipped with the most advanced automation systems and innovative system for energy saving, which is based on a patent developed by the R&D centre of Presezzi Extrusion called PE.ESS PATENT. Particular attention was paid by the technical staff of Presezzi in the optimisation of the layout and thanks to the reduced number of pumps and small size, it ideally suits to small spaces typical of Japanese industry.
Novelis Inducted into Ellen MacArthur Foundation's Circular Economy 100
Novelis, the world leader in aluminum rolling and recycling, today announced its induction into the Circular Economy 100 (CE100), a global platform bringing together leading companies, emerging innovators, cities and regions to accelerate the transition to a circular economy. The news was announced during the U.S. Chamber of Commerce Foundation's 2015 Sustainability Forum in Washington, D.C., an event hosted in partnership with the Ellen MacArthur Foundation to explore the powerful impact of the circular economy with U.S. businesses and stakeholders. An early adopter of circular economy principles, Novelis has increased the recycled content of its products from 33 percent to 50 percent since 2011, closing the loop on global aluminum production and consumption for society to use again and...
Alumina sees a jump in earnings for Q1 2015
Alumina says average earnings per tonne jumped at its AWAC joint venture during the first quarter of the year amid "healthy demand" and lower costs, while the longer-term outlook is likely to benefit from a global supply squeeze. Chief executive Peter Wasow said average alumina earnings before interest, tax, depreciation and amortisation (EBITDA) increased to $US102 a tonne in the first quarter of 2015 from $US85 in the fourth quarter as positive momentum from last year continued. The Alcoa World Alumina and Chemicals joint venture, in which Alumina has a 40 per cent interest, had average EBITDA per tonne of $US54 in 2014, up from $US45 in 2013. Mr Wasow told the Alumina annual general meeting today that the industry had been experiencing a strong demand-pull. "Aluminium demand growth has...
Specialty alumina maker TOR Minerals declares Q1 2015 results
TOR Minerals International, makers of specialty mineral products, declared its first quarter financial results on 6th May, 2015. The company reported specialty alumina revenue of $4,348 for the first quarter of 2015, compared to $5,259 reported for the same period last year. There has also been a dip of 17% in net sales of specialty alumina. The company experienced overall fall in revenue by 23% to $10.1million in Q1 2015 and net loss of ($190,000) versus Q1 2014 net income of $707,000. The decrease in specialty alumina sales, which includes ALUPREM®, HALTEX® and OPTILOAD® was pegged primarily to a decrease in volume from a large U.S. customer while the negative effect on foreign currency translation also played a part. TOR however confirms that there will be a unit volume growth expected...
Alba's Q1 Net Income more than doubles to reach $US 99 million
Q1 2015 Alba Highlights: • Continued improvement in safety performance • Alba metal sales at 228,307 metric tonnes versus 226,472 mt in Q1 2014 • Production up by 2.4% to reach 237,774 mt versus 232,298 mt for the same period in 2014 driven by strong operational performance • Increase in physical premiums • Value-Added Sales averaged 64% of total shipments Aluminium Bahrain B.S.C. (Alba) announced the release of its first quarter of 2015 results on Thursday, May 7, 2015. Commenting on Q1 2015 Results, The Chairman of Alba’s Board of Directors, Daij Bin Salman Bin Daij Al Khalifa: “Alba had a tremendous 1st quarter and I would like to thank all the employees of Alba for their contributions to this success. We intend to use this strong momentum as we look forward to the Line 6 expansion...
U.S. purchased 770 million pounds of aluminum scrap during February 2015
The U.S. aluminum industry purchased an estimated 770 million pounds of aluminum scrap during February 2015, according to aluminum recycling statistics published by the U.S. Geological Survey, Department of Interior, up 5.7 percent over the February 2014 total of 728 million. USGS estimates that recovery of aluminum and aluminum alloys totaled 657 million pounds, an increase of 6.4 percent year-over-year. Through February, preliminary data indicate that recovery of aluminum from scrap totaled an estimated 1,328 million pounds, up 6.5 percent over the 2014 YTD total of 1,246 million. U.S. exports of scrap, not included in the government’s consumption statistics, totaled 457 million pounds YTD, down 21.9 percent from the same period in 2014.
