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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Ardagh Covers 100 Years of Coke's Contour in Aluminium
One of the most important anniversaries in the food and beverage sector this year must be the 100 year anniversary of the iconic Coca-Cola contour bottle. To celebrate this remarkable milestone the company has turned to Ardagh Group to manufacture a very special limited edition 25cl aluminium bottle. Ardagh’s specialist plant in Beaurepaire, France, has applied its expertise for high definition, high resolution printing, with a series of striking designs on aluminium bottles that will delight the brand’s millions of fans as well as serious collectors. Germany in particular is playing a starring role, with 10 individual designs, each representing a decade of Coca-Cola advertising campaigns. The original contour shape, designed by the Root Glass Company of Terre Haute, Indiana, won...
Vollmer launches new circular saw grinding machine
Vollmer has launched two new lines of grinding centers – CHP840 and CHP1300 for the universal sharpening of carbide tipped circular saw blades up to 840mm with the option of 1300mm diameter. The next generation grinding centre has four CNC-controlled axes for the accurate grinding and polishing of virtually all tooth geometries in a single cycle. This groundbreaking new grinding concept delivers ease of use with an ingenious new multi-function hand wheel and programs for use in the aluminium, plastic, wood and metal cutting sectors. The result is a new range of machines that provide the perfect combination of precision, productivity and flexibility for the universal machining of TCT saw blades from 80 up to 1300mm diameter. The latest addition to the Vollmer line has been designed in a...
China shows the slowest aluminium production growth since 2009
Chinese aluminium production in the first two month of 2015 showed a growth of 6.8% compared to last year and has been the slowest start to a year since 2009. Bloomberg had forecasted the growth this year would be around 7.7%. The latest data was released by the National Bureau of Statistics on Wednesday in Beijing. Due to irregular trade during the week-long Lunar New Year holidays, the industrial data including output, retail sales and fixed asset investments are combined for the month of January and February. The Lunar holidays occur at differing dates each year and started on Feb 18 this year. “The data shows demand for January and February was weak, but it also reflects production cuts,” said Helen Lau, a Hong Kong-based analyst at Argonaut Securities. “There is still room for the...
First call rating update on Century Aluminum Company
Century Aluminum Company First Call has rated the counter a Hold. The rating recommendation was disclosed in the First Call research information. Century Aluminum Company stock has received a short term price target of $ 22.17 from 6 Analyst. The share price can be expected to fluctuate from the mean short term target, can be seen from the standard deviation reading of $6.18. The higher estimate of target price is $31 , while the lower price target estimate is $14 Century Aluminum Company dropped 4.17% or 0.67 points in the stock market. After opening the day at $15.51, enthusiastic buying supported the stock to a high of $15.79, from whereon serious profit booking came into action. The counter finally ended at $15.41 with the volume soaring to 3,698,894 shares. The closing level of the...
Superfund decision for Columbia Falls aluminum smelter expeded this fall
Columbia Falls may know by autumn whether the now-closed aluminum smelter there will become a Superfund site. Last Tuesday the owners of the Columbia Falls Aluminum Company announced the smelter is permanently closing. The next day the Environmental Protection Agency notified Governor Steve Bullock it proposes to add the plant to its priority list of industrial sites that should be cleaned. "Investigation has shown that there are contaminants that potentially could impact human health and the environment at the site. A listing on the National Priorities List identifies sites where additional information is needed" said EPA's Cynthia Peterson. Smelter officials oppose a Superfund listing, describing it as slow and stigmatizing. EPA say the Priorities list proposal will be added to the...
Chinese overproduction continues to be a threat to the western aluminium producers
According to a recent research, the unexpected advancement in the Chinese aluminium industry has caused noticeable damage to western firms like Rio Tinto. Rio had acquired the Canadian giant Alcan in 2007 and justified the purchase by the expectation that China would soon stop producing, shutting down unproductive smelters and start importing causing the aluminium prices to improve. However China instead of ceasing production, stepped up production aided by government subsidies which has causing the total aluminium production to double since 2007, says the former executive of Rio Tinto. This continued expansion kept the price of the metal low which did not experience a dramatic rise even at the heights of the boom. This has caused Rio Tinto to sell off down two-thirds of its $US38 billion...
South Korea buys 2,000 tons of aluminium paying the lowest premium
South Korea has paid the smallest premium in more than a year to source aluminium, the results of a tender showed on Wednesday, the latest sign of intensifying pressure on premiums that is putting the operations of global producers under threat. South Korea bought 1,000 tonnes of aluminium to be sourced from India and another 1,000 tonnes from Australia for May 24 shipment via two tenders closed on Tuesday, the state-run Public Procurement Service said on its website. K Commodity Co Ltd won both bids by offering to accept premiums of $330 per tonne, CIF Incheon, over London Metal Exchange (LME) prices. The drop in premiums is likely to boost headwinds for aluminium producers, who receive the delivery surcharge on top of LME cash prices. The drop represents a 7 percent fall from a $355...
Heavy rain hampering bauxite stockpiling in Bua
Xinfa Aurum Exploration Limited in Bua is facing bauxite stockpiling issues as a result of heavy rain showers in the region. Managing Director, Isirelli Dagaga highlighted the issue in an interview where he also says that they even refrain from mining in wet weathers as it results the production. The company hopes to mine 400,000 tons of bauxite from the current mining site located in the Votua village in Bua. Dagaga says that the ships come to them only once a month that too depends on whether they have enough stockpiles. So they are only stockpiling at present but the constant heavy showers in affecting their progress. “We expect the next ship to arrive on the 4th of April,” he says. He also says that they are able to ship twice a month when the weather is good and June is usually a...
Aluminum Association updates on US aluminum scrap market
The U.S. aluminum industry purchased an estimated 759 million pounds of aluminum scrap during December 2014, according to aluminum recycling statistics published by the U.S. Geological Survey, Department of Interior, up 7.7 percent over the December 2013 total of 705 million. USGS estimates that recovery of aluminum and aluminum alloys totaled 647 million pounds, an increase of 8.5 percent year-over-year. Preliminary data for 2014 indicate that recovery of aluminum from scrap totaled an estimated 8,019 million pounds, up 4.5 percent over the 2013 total of 7,677 million. U.S. exports of scrap, not included in the government’s consumption statistics, totaled 3,832 million pounds in 2014, down 6.3 percent from 2013.
New technology boosts productivity of aluminum-sheet annealing
Sheet aluminum for auto and truck bodies remains the top growth area as the industry shifts to lighter-weight vehicles. Now a new technology from Linde for continuously annealing cold-rolled strip aluminum may soon speed production. Details about the new technology will be presented at TMS 2015, March 15-19, at Walt Disney World in Orlando, Florida. In a paper titled, "Direct Flame Impingement (DFI) – a new oxy-fuel based technology for continuous annealing of aluminum strip," Linde senior nonferrous expert Henrik Gripenberg will discuss DFI technology, applications, and pilot test results. The presentation, part of the Aluminum Processing Symposium, session 1, is scheduled for March 16th at 2:50 p.m., at the Dolphin - Southern Hemisphere I. With Linde's Direct Flame Impingement...
Madras HC asks Centre not to issue any notification against Hyundai
The Madras High Court has asked the Government of India not to issue any notification against the Korean auto major Hyundai in a case related to anti-dumping duty. The order, which was passed on February 27, 2015, on a petition filed by Hyundai, which sought the Court to terminate the investigation in connection with imposition of anti-dumping duty on import of cast aluminium alloy wheels originating in or exported from China, South Korea and Thailand. During his argument Senior Counsel P S Raman, who appeared for Hyundai, pointed out mainly two infirmities in respect of the findings rendered by the designated authority. Firstly that the second extension for final decision was granted by the Central Government only on April 30, 2014, after the expiry of first extension dated March 19,...
Noranda, consumer parties reach agreement on allocation of Ameren Missouri electricity rates
Noranda Aluminum Holding Corporation announced it has joined in a rate design agreement with consumer groups in the Missouri Public Service Commission ("PSC") general electricity rate case for Ameren Missouri. The consumer agreement remains subject to approval by the PSC as part of the Ameren rate case, which is expected to be decided by May 31, 2015. Among other provisions, the consumer agreement establishes a new electricity rate structure for Noranda's aluminum smelter in New Madrid, Missouri. The proposed smelter rate structure has a ten-year term, an initial rate of $34 per megawatt hour, and exempts the smelter from fuel adjustment charges. Compared to rates in place during 2014, at full production the proposed smelter rate structure would have reduced the smelter's electricity...
Altech appoints EPCM partner for its HPA Project
Highlights • Appointment of M + W Group as EPCM partner • Leading global engineering and construction group with extensive Asian experience • Strengthens the Bankable Feasibility Study (BFS) team Altech Chemicals Limited is pleased to announce that following its strategic decision to select Johor Bahru, Malaysia as the preferred location for its proposed 4,000tpa high purity alumina (HPA) processing plant, it has now appointed M+W Group as its Engineering, Procurement, Construction and Management (EPCM) partner. Headquartered in Stuttgart, Germany, M+W Group was founded in 1912, is a leading global engineering and construction business, has offices in over 30 countries, and in excess of 8,500 employees world-wide. The firm has a strong presence in Asia with regional offices in both...
Antam reports losses for 2014 due to Indonesian ore export ban
The Indonesian mineral-ore export ban has affected the state-run diversified miner Aneka Tambang (Antam) reporting a total net loss of Rp 775.29 billion (US$ 59.28 million) for the year 2014 which is a sharp contrast from the previous year where the company enjoyed a net profit of Rp 409.95 billion. Antam suffered a serious fall in net sales in 2014, where numbers dropped from Rp 11.3 trillion in 2013 to Rp 9.42 trillion last year. The ban on export coupled with weak commodity prices has severely hit the company’s sales. Tato Miraza, the Antam president director says that to combat the dismal situation the company has resorted to efficiency savings and diversification into the downstream sector. Tato further added that his company had high hopes for the government’s planned state capital...
NALCO Board to consider Interim Dividend for FY 2014-15
A meeting of the Board of Directors of National Aluminium Company Ltd will be held on March 12, 2015, to consider declaration of interim dividend for the Financial Year 2014-15. March 19, 2015 has been fixed as the Record Date for the purpose of Payment of Interim Dividend. Shares of NATIONAL ALUMINIUM CO.LTD. was last trading in BSE at INR 48.75 as compared to the previous close of INR 49.85. The total number of shares traded during the day was 91207 in over 1085 trades. The stock hit an intraday high of INR 49.9 and intraday low of 48.5. The net turnover during the day was INR 4469039.
Tomago aluminium pushes for a final call on RET
As the fate of RET still remains in the dark, Tomago Aluminium is making fresh attempts to urge the MPs and senators to reach a final decision on the case soon requesting a 100 percent exemption for the aluminium industry to be effective from January 1, 2015. The energy-intensive aluminium industry has been the biggest sufferer having paid more than $500 million in Renewable Energy Target (RET) costs already (since 2001) with Tomago alone has paying $120 million. Matt Howell, the CEO of Tomago says that the extra cost imposed by RET had been difficult to digest at a time when aluminium was already suffering. “The Renewable Energy Target costs us around $25 million per annum at Tomago. Affordable energy is critical for aluminium smelters. Removing regulatory costs, such as the RET, would...
China aluminum semis exports fall 22.45% MoM in January 2015
China exported 380,000 mt of aluminum semis in January, up 42% YoY, but down 110,000 mt or 22.45% MoM, customs data showed. A 63.19% MoM plunge in extrusion exports dragged down overall aluminum semis exports. Extrusion exports increased 6.37% YoY to 67,000 mt, though. Foil exports gained 10.52% YoY and 6.49% MoM to 82,000 mt, and exports of plate/sheet and strip increased 91.88% YoY and 9.74% MoM to 214,000 mt. Aluminum semis exports returned to normal in January after significant increases in December. The rising SHFE/LME aluminum price ratio and stricter customs scrutiny made robust growth of token exports unsustainable. Falling aluminum premiums overseas has left Chinese aluminum semis less attractive. This impact may be expected to hurt exports of Chinese aluminum semis into Q2.
Alcoa to acquire RTI International Metals, boosting value-add, multi-material aerospace portfolio
Lightweight, high-performance metals leader Alcoa is announcing another major milestone in its transformation, further building its value-add portfolio for profitable growth. The Company has signed a definitive agreement to acquire RTI International Metals, Inc., a global supplier of titanium and specialty metal products and services for the commercial aerospace, defense, energy and medical device markets. Alcoa will purchase RTI in a stock-for-stock transaction with an enterprise value of $1.5 billion. With RTI, Alcoa will grow its value-add businesses and further strengthen its aerospace portfolio. RTI will expand Alcoa’s range of titanium offerings and add advanced technologies and materials, increasing the Company’s position as a leading industrial innovator. “Alcoa is accelerating...
