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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Aluminium drops on oversupply worries
Aluminium hit a three-week low on Thursday on concerns of oversupply and a cut in Chinese power prices, while lead and zinc hit multi-month highs on further inventory drawdowns. Daily London Metal Exchange (LME) data showed lead stocks MPB-STOCKS fell 725 tonnes to 223,125 tonnes, their lowest level since mid-March, while zinc stocks MZN-STOCKS fell 50 tonnes to 509,925 tonnes, their lowest point in five years. LME three-month lead jumped 2 percent to close at $1,962 a tonne after touching a high of $1,967.50, its strongest since mid-December. Zinc finished up 0.8 percent at $2,177 a tonne after hitting $2,182.50, its highest since early January. Aluminium ended down 0.5 percent at $1,762.50 a tonne, having earlier hit a three-week low of $1,759. Aluminium traded on the Shanghai Futures...
FourWinds plans $500m Abu Dhabi aluminium project and educational complex investment
The privately-held FourWinds Group of Companies plans to develop an aluminium project and an educational complex in Abu Dhabi for a total cost of about US$500 million. The group is keen to expand its operations in Abu Dhabi’s industrial sector, particularly in the Khalifa Industrial Zone Abu Dhabi (Kizad), a free zone that houses the smelter Emirates Aluminium (Emal) and Khalifa Port. FourWinds, which invests in property, infrastructure, industry and natural resources, is focused on the automotive parts industry in Abu Dhabi. “We have a strategy in aluminium and we are negotiating an [aluminium] facility in the proximity of Emal to actually manufacture again for the automotive industry certain aluminium components. We are already negotiating offtake agreements with certain buyers in...
Rusal, China Hongqiao eyeing cooperation over aluminum processing
Rusal has expressed its intention of cooperating with China Hongqiao Group over aluminum processing business during its recent visit to the company, China Hongqiao said in its website. China Hongqiao, a large aluminum product manufacturer, is working hard to transform and upgrade its business model and aiming for long-term development in aluminum processing. Rusal has rich experience and advanced manufacturing technologies. This will provide room for these two companies to cooperate with each other and play their individual competitive advantages.
Hindalco falls as aluminum giant Alcoa misses estimates
Shares of Hindalco Industries slipped nearly 2 per cent to hit intraday low of INR 137.35 after global aluminum giant Alcoa Inc's first quarter earnings missed expectations. Alcoa's earnings missed estimates. However, the commentary for auto continues to remain positive as it expects global aluminum demand growth to be 6.5 per cent. The impact of Alcoa's earnings highlights revenue visibility for Hindalco's Novelis unit. Reacting to the news, shares of Hindalco came under selling pressure. At 10:30 a.m., the stock was down 1.4 per cent at INR 138 underperforming the Nifty which was down 0.15 per cent.
Vedanta reports record production for the fourth quarter and full year 2015
Vedanta Resources plc releases production report for the Fourth Quarter and Full Year ending 31 March 2015. In the aluminium segment, Vedanta reports record quarterly and full year Aluminium production with the new Jharsuguda-II and Korba-II smelters ramping up successfully. The company also reports record quarterly and full year production at Lanjigarh Alumina refinery. Tom Albanese, Chief Executive Officer, Vedanta Resources plc, said: "We continue to focus on the execution of our defined strategy and, despite volatile commodity markets, we remain confident in our diversified business model. In particular, record levels of production in Zinc and Aluminium over the year underpin our confidence in achieving greater operational performance and enhancing production across our well-invested...
Constellium unveils its newly expanded automotive structures facility in Van Buren, MI
Constellium N.V. today unveiled its newly expanded plant in Van Buren, Michigan. This state-of-the-art facility produces customized automotive structures and features advanced prototyping and development capabilities. The 210,000 square foot expansion project has doubled plant manufacturing capacity for a total $40 million investment. “Constellium is making extensive investments across the United States both in automotive structural parts and Body-in-White,” said Pierre Vareille, Chief Executive Officer of Constellium. “Through the newly expanded Van Buren plant we are now well-positioned to take full advantage of the growing automotive demand for aluminium structures in North America.” “Van Buren is an ideal location,” commented Paul Warton, President of Constellium’s Automotive...
UC RUSAL opens Russia’s deepest mine
UC RUSAL, a leading global aluminium producer, announces the launch of the first start-up complex at the Cheremoukhovskaya-Gloubokaya mine in the North Urals Bauxite Mine (“SUBR”). Cheremoukhovskaya-Gloubokaya becomes Russia’s deepest mine, with a depth of 1,550 meters, and ranks among the top five deepest mines in the world. Total investment in the mine to date is over 5.8 billion rubles. The launch of Cheremoukhovskaya-Gloubokaya will create access to new bauxite deposits and thanks to the optimization of technological processes of ore transportation and extraction will decrease bauxite cash costs at SUBR by up to 15%. Active construction of the mine commenced in 2010. Uncovered deposits of bauxite at Cheremoukhovskaya-Gloubokaya are estimated at 42 million tonnes. “For the first time...
China holds all the cards in aluminium
Global aluminium consumption in 2014 rose by 9% and not 7% that Alcoa Inc, the biggest US producer, had earlier estimated. China was the chief culprit for this gap as its actual consumption was higher by 1.3 million tonnes (mt). In 2015, the global aluminium consumption is expected to increase by 6.5%, lower than the 7% projected in Alcoa’s January estimate. The lower growth is not worrying because it can be attributed to a higher base. Aluminium consumption in 2015 is pegged at 57.5 mt now, instead of 56.4 mt earlier. That increase is due to an upward revision by Alcoa, the world’s third largest aluminium producer, in China’s aluminium consumption. Ordinarily, higher consumption should be good for producers as it could mean higher prices. But the China factor pops up again. Although it...
New Providence Fire Department seeks aluminum cans to help burn victims
This has been a tough winter for everyone, including the New Providence Fire Department — the aluminum can cart was plowed in during much of February and March, which means donations are down. For those who may not know about the can cart, three or four times a year Frederick Gaghan and Emil Koref take the cart down to Newark and recycle the aluminum cans. The proceeds from the recycling are donated to the Saint Barnabas Burn Foundation for Children. Not only was the cart snowed in, the bad weather probably kept people from even putting a run to drop off their aluminum cans on their to-do list. The cart is no longer in the corner of the parking lot, it's on the back edge of the lot and there's plenty of room for those cans. The money raised from the donations is used to sponsor former...
Indian regulation requires recording video of scrap shipments
The Mumbai-based Metal Recycling Association of India (MRAI) is conducting meetings in an effort to stave off a regulation that requires overseas scrap shippers to record videos of their container loading process. MRAI Secretary General Amar Singh, in an April 7, 2015, memo to member companies, says the association has been meeting with officials from the Directorate General of Foreign Trade (DGFT) of India to explain “the difficulties faced by exporters, importers & PSICs (Pre-Shipment Inspection Certificate inspectors) of implementing the new procedures.” Singh writes that MRAI “conveyed [to the DGFT] that it is not practical to submit video recordings, etc.” Another meeting between the MRAI and the DGFT will take place Thursday, April 9, 2015, according to Singh, “to further discuss...
Alcoa’s outlook in the downstream and end market segment seems positive for 2015
The recent Alcoa results show the company is making a great shift from upstream operations to downstream sector and achieving positive results as a consequence. Alcoa has made positive growth projections for the year 2015 across the different sections of the downstream business including aerospace, automotive, building, construction, industrial gas turbines and packaging end markets. Growth predictions for global aerospace sales are estimated at 9 to 10 percent in 2015 as there are several deliveries listed for the year across large commercial aircraft, regional jet and business jet segments. Global automotive production increase is touted at 2 to 4 percent for 2015 with 1 to 4 percent expected rise in North America. In the sections of commercial building and construction market,...
Alumina Limited shares jump 2% following the release of Alcoa quarterly earnings report
Alumina Limited, the 40% owner of Alcoa World Alumina & Chemicals (AWAC) – part of the world’s third largest aluminium producer, Alcoa Inc – has seen its shares jump 2% following the release of a quarterly earnings report. AWAC, which pays dividends to Alumina as part of its major shareholding, achieved a stronger profit result during the quarter, despite lower aluminium spot prices, on the back of a continued fall in the Australian dollar and Brazilian Real (versus the U.S. dollar). During the period, AWAC produced 3.8 million tonnes of alumina, with Alcoa’s profits from the aluminium ingredient jumping more than 100% year-over-year. For local shareholders in ASX-listed Alumina, this resulted in $29 million in capital returns and income during the quarter, including a $5 million dividend...
Aluminium slides on global cues
Prices of aluminium declined by INR 2 per kg at the non-ferrous metals market today largely on weak global trend. Traders said sentiments in aluminium turned weak as it declined to a three-week low in global markets after the biggest US producer flipped its outlook for the metal to an oversupply from an earlier forecast of a small deficit. Meanwhile, aluminium for delivery in three months fell 0.3 per cent to USD 1,766.50 a metric tonne on the London Metal Exchange. In the national capital, aluminium ingots, sheet cutting, wire scrap and utensils scrap were down by INR 2 each to INR 158,Rs 159,INR 161 and INR 158 per kg respectively. Following are today's metal rates (in INR per kg): Zinc ingot INR 114-120, Nickel plate (4x4) INR 1,055-1,060, Gun metal scrap INR 227, Bell metal scrap INR...
Aluminium industry leaders to gather at Dubai event
Aluminium industry leaders and professionals from more than 25 countries are set to gather at a specialised exhibition for the industry in the region next week in Dubai. The fourth edition of Aluminium Middle East 2015 will run from April 14 to 16 at the Dubai International Convention and Exhibition Centre. It is being organised by Reed Exhibitions. Under the theme ‘Forging Connections, Building Possibilities,’ the exhibition will help the region’s aluminium industry reach a new level of extraordinary growth by bring manufacturers, producers, investors and service providers under one roof. The event will offer an opportunity to interview chief executive officers, leading experts and professionals from global industry associations and largest aluminium companies including Emirates Global...
$180 million aluminum processing projects to settle in Inner Mongolia
Liaoning Zhongda Aluminum Co. will invest 1.12 billion yuan ($180 million) to build three aluminum processing projects in Inner Mongolia’s Holingola, local media reported yesterday. The company plans to start construction on 100,000-tpy industrial aluminum extrusion bar project this May and put it into operations next year. 200,000-tpy aluminum alloy plate project is slated to begin construction in May 2016, and come online in June 2017. Besides, ground will be broken on another project that produces aluminum parts for 3,000 robots this August, with operations expected in October 2017, it added.
Chairman of New Zealand Aluminium says they pay one of the highest electricity charges
New Zealand Aluminium Smelters pays one of the highest electricity costs in the world, outside China, competing with the smelters of Eastern and Southern Europe, says Chairman Brian Cooper in a statement. The statement made by Cooper comes in response to the fear expressed by the electricity companies who are apprehensive about the future of the company. Since the company uses one-sixth of the total electricity produced in New Zealand, in case of a plant shut down, the market would be flooded and all calculations and assumptions about the power companies’ economics will get disrupted severely. Fears of the electricity companies are not misplaced as the Tiwai Point smelter did come terribly close to closure two years ago and was saved by a $30 million grant from the Government and...
Aluminium Bahrain set to appoint adviser for expansion plan says Alba CFO
Aluminium Bahrain (Alba) is close to selecting the financial adviser for its $2.5 billion Line 6 expansion project, having whittled down its choice to two banks, its chief financial officer told Reuters. The scheme 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, Ali al-Baqali said in an interview at the plant. Alba, at the centre of an aluminium industry which contributes around 10 percent of Bahrain's GDP, retendered the adviser role after a contract with BNP Paribas waned in October. "We short-listed a few banks and as of today, we are evaluating the final two proposals," Baqali said, without naming the banks involved. The proposed opening date for Line 6,...
Mineral reserves must not cross 1.25 times the requirement of company
With the Mines and Minerals (Development and Regulation) Amendment Act, 2015 allowing the state government to specify an end-use for any mine, companies would not be eligible for auction if the mine’s mineral reserve is found to be exceeding 1.25 times their stated requirement over a period of 50 years. Besides, the Union government has proposed an upfront payment of 0.5 per cent of value of resources by companies, who secure licence for mining major minerals like iron ore through auction under the new law. According to the new mineral auction rules proposed by the Centre on Wednesday, minerals such as bauxite, iron ore and limestone can only be reserved for the end-use of alumina, integrated steel plants and cement plants by state governments. However, a manganese mine can’t be reserved...
