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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Key factors that may drive India Aluminium sector in FY16
The latest report by India Ratings(Ind-Ra) says the operating profitability of domestic aluminium players will remain stable in FY16. The agency expects the rupee-dollar exchange rate to marginally weaken and hover around INR63/USD, helping export sales realisation. The on-going coal blocks auctions would substantially determine the direction of profitability, given as major players have captive power plants. The agency does not expect the low aluminium price levels of sub USD1,689/ton observed in 2014 to be revisited in FY16. On the other hand, the price levels above USD1,900/ton may not be sustained for long, given global oversupply and high inventory levels. The agency expects LME prices to increase at a moderate pace in FY16. Ind-Ra expects the global aluminium demand to stabilise,...
Aluminium to improve 2016 Lexus RX Facelift
Lexus has already confirmed that the RX Facelift, which includes both the RX350 and the RX450, will be released later this year and they will come with some aluminium-made parts. In detail, the Lexus RX Facelift will have its hood, tailgate and closures all made of aluminium. The application of this trending metal is aimed at dragging the weight of the RX Facelift down. With a lighter body, the RX Facelift will surely be better optimized for power while also being more fuel efficient at the same time. Of course, we have yet to receive any performance figures yet and this will have to wait until the RX Facelift gets fully unveiled at the end of this year.
PSC sounds open to slight rate cut for Noranda
Several members of the Missouri Public Service Commission appear to be leaning toward a slight reduction in the electric bills of the state’s largest energy The PSC hopes to decide on Ameren Missouri’s request for a rate increase by the end of the month, after almost a year of scrutiny. Along with the price Ameren customers will pay for electricity, several other policy issues need to be decided in the case, including the rate for Noranda, a southeast Missouri aluminum smelter. In a discussion on issues in the case this week, a majority of commissioners signaled they might consider a lower rate for the power-hungry aluminum smelter, Ameren’s largest electricity customer. However, it didn’t appear commissioners would go as low as Noranda wants. Noranda has been arguing it faces closure...
Attorney General recommends cancellation of mining licenses on Rennell Island
The Attorney General Chamber is recommending cancellation of mining licenses on Rennell Island. A report produced by the Attorney General this week points to maladministration and irregularities in the granting of mining leases to Asia Pacific Investment Development (APID) and Bintang Borneo for the bauxite deposit on west Rennell. Apparently, there was no recommendation or advice from the Mines and Minerals Board to the Minister of Mines to grant mining lease to both companies. The correct procedure would be for the Board to deliberate on their applications and make recommendations to the Minister. The Minister having received the recommendation from the Board would proceed to decide accordingly. Granting of mining lease in the absence of recommendations from the Board is a breach of the...
Aluminium industry size to double in 10 years, say industry experts
International industry players expect aluminium industry market worldwide to double within the next 10 years. Optimistic on growth prospects, participants at the ALUMINIUM MIDDLE EAST 2015, which concluded today, said with projects worth billions of dollars in the pipeline, the Middle East is among the key markets offering numerous attractive opportunities they are keen on tapping. The three-day ALUMINIUM MIDDLE EAST 2015 2015, organized by Reed Exhibitions witnessed many international companies announcing their expansion plans in the region, particularly the UAE. Participants at the expo said maintaining prices amid oversupply was among the key challenges and said new technology was playing a major role in generating cost efficiencies as well as driving demand. "I believe the market will...
Perini Navi designs all aluminium sloop Perseus 3
Built by the Italian shipyard Perini Navi in 2014, pictured here is the 60 metre sloop Perseus 3 in Malta. Her naval architecture, interior and exterior design was completed by Perini Navi, with Ron Holland Design collaborating on her interiors. Built entirely out of aluminium, she has a Gross Tonnage of 498 and accommodates 12 guests over five cabins. She is the second hull in the Perini Navi Group’s 60 metre series of yachts, and features a twin rudder system with innovative twin rudder control system. For the first time ever on a Perini Navi built boat, she is also equipped with a carbon bowsprit. A couple of her most attractive features include her two opening beach platforms as well as two 6.20 metre carbon fibre custom tenders.
Shelbyville company to invest in press, expansion
Brazeway announced recently that it will invest in a new extrusion press and expansion in its Shelbyville facility. The move is designed to continue Brazeway’s leadership in the HVAC, refrigeration and automotive aluminum heat transfer markets. The press will be the largest extrusion press in North America for aluminum extruded tubing. Shelbyville Mayor Tom DeBaun welcomed the news. “Brazeway has been a longstanding employer in Shelby County, and I am pleased to see them growing at their Shelbyville location. The announcement of this project is a direct result of the city and county units of government, as well as the Shelby County Development Corporation, coming together successfully for economic development purposes. The city and the county were compelled to put forth a cooperative...
Akzonobel scoops double win at Rexam supplier awards
At the 12th annual Rexam Supplier Awards, Rexam, a leading global beverage can maker, brought together 75 suppliers from 47 different companies to recognise accomplishments and innovations that have been key in driving growth and success within the beverage can industry. AkzoNobel were the big winners of the night and were declared ‘Supplier of the Year’ for their collaborative approach to developing a global partnership with Rexam that is underpinned with comprehensive local plant support. Nominated across a number of award categories, AkzoNobel has continuously delivered a superior product and supported Rexam’s efforts towards the Dow Jones Sustainability Index. The Excellence Award for Quality also went to AkzoNobel, who have consistently supplied outstanding product quality throughout...
Alcoa reports quarterly business update
Alcoa reports business update for First Quarter 2015. On April 8, 2015, Alcoa reported strong 1Q15 profits, demonstrating that the Company’s strategy of building its value-add portfolio and creating a globally competitive commodity business is fully on track. The company also continued with creating sustainable value for its shareholders. Net income increased in 1Q15 to $195 million, or $0.14 per share, including $168 million of special items that were primarily restructuring-related charges. Excluding the impact of special items, net income more than tripled year-over-year to $363 million, or $0.28 per share, in 1Q15. Total Company revenues for 1Q15 rose 7% to $5.8 billion, from $5.5 billion in 1Q14. The revenue increase resulted principally from organic growth, driven by strong...
China aluminium surplus to eat away global deficit: Russell
China's exports of aluminium products have continued to surge, a trend that if continued may push the rest of the world toward a surplus. China's exports of primary, alloy and semi-finished aluminium grew by around 43 percent in the first quarter over the same period last year, according to preliminary customs data released on Monday. While the initial data release doesn't provide the detailed breakdown, figures for January and February show that the overwhelming share is semi-finished products, such as bars, rods, wire, plates, sheet and foil. In the first two months of the year, exports in this category, commonly known as semis, surged 91 percent to 770,000 tonnes, a trend that will almost certainly be continued when the detailed March figures are released later this month. Exports of...
Iran to launch anode manufacturing factory
The managing director of Iranian Aluminium Company has said launching of anode manufacturing factory would bring $ 54mn to the economy in saving costs of import. Hamid Badkoubeh told a press conference on Tuesday that construction of the anode manufacturing unit would be started in late May in Kheirabad and would produce 100K tons of aluminium anode to provide Iran’s Aluminium Complex demands for anode and cut the dependence on imported anode. “With each ton of aluminium anode having a price of $600, the unit will bring the country $54mn in saving costs of imports; the unit will be completed by 24 months and will incorporate the most up-to-date technology and facilities,” he added. Badkoubeh also said that China and Russia would suffer losses with the unit operating, since these two are...
China A356 aluminum alloy operating rate fell to 60.91% in March
The average operating rate at 15 Chinese A356 aluminum alloy producers fell from a month ago to 60.91% in March, SMM’s latest survey showed. Output at those surveyed dropped to 106,600 tonnes, due to maintenance or non-market-driven production cuts, SMM data showed. Processing fees for A356 aluminum alloy changed little from February at 700 yuan ($114)/tonne (delivery to factory). Many aluminum wheel rim manufacturers reported moderate orders. This explains why falling supply did not lift processing fees.
OARC plans to double output by 2017
Oman Aluminium Rolling Co (OARC) plans to double output by 2017 with shipments to the US, India and Italy. Production will jump to 140,000 metric tonnes of aluminium parts from about 70,000 tonnes last year, Graham Bruce, chief commercial officer, said in an interview at the Aluminium Middle East conference in Dubai. The US$385mn OARC plant at the Sohar Industrial Estate was inaugurated in December 2013. OARC is benefiting from a perception that aluminium products made in the Middle East are ten per cent cheaper than the rest of the world because of lower electricity and natural gas costs, Bruce said. “We’re new,” he said. “There’s a lot of interest from Korea and India.” Aluminium prices will probably trade between US$1,700 to US$1,800 a tonne for the rest of the year, even with demand...
Former Top Gear presenter to speak at ALFED event
The Aluminium Federation (ALFED) has chosen former Top Gear presenter Quentin Willson to be the guest speaker at its annual dinner. Willson, who currently presents Channel 5’s Classic Car Show with Jodie Kidd, co-hosted BBC’sTop Gear from 1991 with Jeremy Clarkson. Until the original format ended in 2001, he appeared every week on the programme, often as an expert on used cars. He has also presented motoring programmes such as The Car’s the Star and Fifth Gear. He is passionate about cars, especially about lightweighting and the use of aluminium in vehicle construction. The Aluminium Federation’s annual dinner will this year be held on Thursday, 10 September at the Tortworth Court Four Pillars Hotel in south Gloucestershire. The dinner will, as in previous years, be preceded by a members'...
JW Aluminum issues 2014 annual results and to host investor conference call to review results
JW Aluminum Company announced today that it has posted its 2014 Annual Report for the Year Ended January 3, 2015 on JW Aluminum’s secure investor website at 4:00 PM Eastern Time on Wednesday, April 15, 2015. The annual report is being furnished pursuant to the Indenture governing JW Aluminum’s Senior Secured Notes due 2017 (the “Notes”). The annual report will be made available to holders and beneficial owners of the Notes, qualified prospective investors in the Notes, and certain security analysts and market makers. JW Aluminum will post all of its annual reports, quarterly reports and current reports that are required to be delivered pursuant to the Indenture governing the Notes on JW Aluminum’s secure investor website maintained by Intralinks. JW Aluminum’s management will host an...
Aluminium industry to become key non-oil contributor in UAE
Fall in oil prices is benefiting the regional aluminium industry and it is expected to become one of the key non-oil contributors in the future, said an industry expert. “Investments in the sector are expected to reach $55 billion [Dh202 billion] by 2020 compared to $40 billion in 2014,” said Daniyal Qureshi, group exhibition director at Reed Exhibitions Middle East, organisers of the event. He said that global industry experts have projected continued growth in aluminium exports from the UAE over the long term. Aluminium is the “metal of choice for regional players” as it can be recycled 100 per cent with minimal resources. “Fall in aluminium prices will reduce the cost of manufacturing and the demand will increase. The expansion of smelters is massively driven by demand from the massive...
Altech Chemicals appoints Castle as its Mining and Processing Partner
Altech Chemicals Limited announces that it has signed a Memorandum of Understanding (MOU) with mining services company, Castle Equipment Pty Ltd (Castle), appointing it as mining contractor and processing plant operator for the Company's aluminous clay (kaolin) deposit at Meckering, Western Australia. Castle is an experienced mining industry services provider, offering a range of mining, crushing and equipment hire services to businesses operating in the Western Australian mining industry. At its Meckering deposit, Altech is planning to campaign mine approximately 145,000 tonnes of aluminous clay (kaolin) at 3 to 4 year intervals, to provide feedstock for its proposed 4,000tpa high purity alumina (HPA) processing plant to be located in Malaysia, and which is the subject of a bankable...
Queensland Bauxite drilling targets increased mine life at South Johnstone
Queensland Bauxite's current drilling program at the South Johnstone Bauxite Project in Queensland is targeting an increase in mine life. Drilling is aimed at further increasing the level of JORC Indicated and Inferred Resources. The Exploration Target area has a range of between 193 million tonnes and 405 million tonnes of possible bauxite mineralisation at South Johnstone. Off-take discussions Queensland Bauxite has said that it is in discussions with a number of groups for off take sales agreements of bauxite from South Johnstone. The company said it has recently hosted a major Asian commodity group to discuss a potential off take agreement. This increase the number of discussions and interest in potential offtake agreements for South Johnstone bauxite. The company added that good...
