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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Sesa Sterlite plans cost cuts for the financial year 2015-16
Sesa Sterlite, the metals, mining and energy firm has released its revised capital expenditure (capex) for the new financial year (2015-16) cutting costs to $1 billion from $2 billion planned last year. Cairn India bears the bigger brunt of the cost cuts with their capex reduced to $500 million from the previous $1.2 billion due to low prices of crude oil. Even the Gamsberg zinc mining project company in South Africa will witness a reduced capex from $250 to $80 million. The chief financial officer of Sesa Sterlite, D.D. Jalan has confirmed the cost cuts and told the investors that 80% of the allotted $1 billion will be utilized in the core businesses of oil and gas while the remaining 20% will be spread between the zinc, aluminium and power business. The falling commodity prices led by...
China posts over 600,000 tonne fall in bauxite Imports from Australia, Malaysia in Jan 2015
China’s bauxite imports fell 20% on the month to 2,587,823 tonnes in January 2015, customs data showed. Imports from Australia and Malaysia – China’s major suppliers – fell 330,664 tonnes and 367,632 tonnes, respectively, from a month ago, the major reason behind the month-on-month decline in total imports. Expensive Australia ore cools China’s appetite. Inbound shipment tumbled 67% from a year ago when huge volumes of Indonesian ore continued to arrive ahead of the export ban. It’s worth noting that China began to source bauxite from the Solomon Islands, importing over 40,000 mt from the country.
China primary aluminum imports rise 180.89% MoM in January 2015
China imported 5,216 mt of primary aluminum in January, plummeting 90.5% YoY, but soaring 3,359 mt or 180.89% MoM, customs data showed. The SHFE/LME aluminum price ratio rose above 7.0 in December from 6.7 in November, favoring imports. Moreover, falling aluminum premiums in overseas markets helped cut imports costs for Chinese buyers, another incentive for imports. Aluminum capacity expansions in India and growing exports of aluminum semis by China have sent spot premiums in Europe down to USD 300/mt from USD 500/mt. Premiums in North America and Asia are also falling.
Hydro signs contract for engineering design of Karmøy technology pilot
Hydro has entered into a contract with Multiconsult for engineering services for the planned pilot plant at Karmøy. The Karmøy pilot aims to verify the world's most energy and climate efficient electrolysis technology. The contract covers the engineering design of demolition work, a new potroom, rectifier and transformer substations, power distribution, infrastructure and support systems. "This contract marks an important step towards the implementation of the Karmøy pilot, which will enable us to roll out the next generation of aluminium production technology," says Hilde Merete Aasheim, head of Primary Metal in Hydro. Last month, Hydro made a formal investment decision to develop a full-scale pilot plant in Karmøy, to confirm the feasibility producing the most energy and climate...
Ceresana reveals a detailed report on rigid metal packaging in Europe
Ceresana, a market research institute, conducted a new study that reveals that the European market volume for rigid metal packaging is likely to reach 284 billion units in 2021. The demand for metal for sustainable and attractive packaging is on the rise as more industries are adopting metals like aluminium for its high-quality appearance, superior protection from external elements and recyclability. Oliver Kutsch, the CEO of Ceresana says, "Already today the recycling rate for metal packaging in Europe amounts to significantly more than 70%". Ceresana studies the European market for cans, tubes, caps and closures as well as specialty products like beer cans, trays for ready meals tubes for pharmaceutical products, paint buckets but also heavy transport packaging for industrial goods like...
Alumina says Portland smelter safe from Alcoa’s review
While Alcoa is busy reviewing its upstream portfolio to cut back costs and production through sale or closure, Alumina Limited says that the Portland aluminium smelter in New Zealand is safe from scrutiny. The Portland plant, which is a joint venture between Alcoa, Alumina Limited, China’s Citic group and Japan’s Marubeni, produces 358,000 tons of aluminium per year. Although Alcoa has cut back, closed or sold 1.3 million tons of annual smelting since 2007, the New Zealand plant does not seem to be in any immediate danger. Alcoa has announced on Friday that they will be looking through 500,000 tons of annual smelting capacity and 2.8 million tons of refining capacity for sale or closure, putting the fates of the three Alcoan refineries in West Australia is uncertainty.
Rolls crossover to make broad use of aluminum
Rolls-Royce's new crossover will use a new aluminum spaceframe that won't be shared with BMW, says CEO Torsten Mueller-Oetvoes. The spaceframe technology will be adopted for all future Rolls-Royce cars, Mueller-Oetvoes said. The crossover, announced last month, also will use aluminum extensively for the body and other components, he said. Crossovers are becoming musts for ultraluxury brands. Rival Bentley will launch its Bentayga crossover next year. Lambor-ghini is awaiting approval for its Urus crossover that was shown as a concept three years ago. Aston Martin showed its concept DBX electric crossover last week at the Geneva auto show. Mueller-Oetvoes would not say whether the Rolls crossover will seat five or seven passengers -- the Bentley will seat five. Some components will come...
Hindalco Industries gains after winning a coal block in Jharkhand
Hindalco Industries rose 0.54% to INR148.70 at 9:15 IST on BSE after the company won the Dumri coal block in Jharkhand at Rs 2,127 per tonne on the third day of coal auctions for schedule III category mines held on Saturday, 7 March 2015. The stock hit a high of INR 150 and a low of INR 148 so far during the day. The stock hit a 52-week high of INR 198.70 on 25 July 2014. The stock hit a 52-week low of INR 112.15 on 5 March 2014. The Dumri coal block has a total extractable reserve of 40.854 million tonnes. The coal ministry has started auctioning coal blocks after the Supreme Court in September last year cancelled the allocation of more than 200 coal mines allotted between 1993 and 2010 after ruling that they were arbitrary and illegal. Hindalco Industries' net profit rose 7.6% to INR...
Alcoa continues transforming upstream portfolio, announces strategic review of smelting and refining capacity
Lightweight metals leader Alcoa today announced that it is continuing to aggressively transform its upstream portfolio to create a lower cost, globally competitive commodity business. The Company said over the next twelve months it will review 500,000 metric tons of smelting capacity and 2.8 million metric tons of refining capacity for possible curtailment or divestiture. The review will include facilities across the Alcoa system. The potential actions could affect 14 percent of Alcoa’s global smelting capacity and 16 percent of its global refining capacity. Currently, the Company has 19 percent, or 665,000 metric tons, of smelting capacity and 7 percent, or 1.2 million metric tons, of its global refining capacity idle. “Alcoa continues to take decisive action, transforming its upstream...
China alumina imports fall 40% in Jan. 2015 as imported material loses appeal
China’s alumina imports fell 40% on monthly and yearly basis to 385,194 tonnes in January 2015, customs data showed. Imported material being less attractive is the main reason for lower inbound shipments. Domestic prices fell due to growing production, while FOB price of Australian alumina stayed above $350/tonne. On top of this, tighter liquidity is also partly responsible falling imports.
Tiwai point smelter returns to profits but uncertainties linger
The Tiwai Point almunium smelter is back to running a profitable operation, though uncertainties about its outlook have left question marks over its intrinsic value, according to majority owner Rio Tinto. The smelter "is currently profitable as a result of high regional and product premiums and operational cost improvements," Rio Tinto said in its 2014 annual report, confirming electricity supplier Meridian Energy's analysis last month that the plant should be running a cash surplus. The smelter makes up part of Rio Tinto's Pacific Aluminium unit, which reversed some US$1 billion of earlier impairment charges in the 2014 financial year as aluminium prices turned around, and because of the repeal of Australia's carbon tax. Rio Tinto's average realised price for primary metal products in...
Alcoa enters a new gas supply agreement with Santos
Alcoa today welcomed the announcement of a new gas supply agreement with Santos. Commencing in 2018, the five-year agreement to supply natural gas to Alcoa’s Western Australian alumina refineries will meet 18 per cent of Alcoa’s WA gas requirements. “We hope this agreement will lead to other gas supply opportunities,” said Alcoa of Australia Managing Director, Alan Cransberg. “We rely on long-term competitively-priced gas supplies to refine alumina from bauxite in Western Australia, creating thousands of jobs and helping drive the local economy. “Our key long-term contracts roll off in 2018-2020 and we are working to secure replacement contracts. This agreement with Santos is encouraging, meeting 18 per cent of our needs.” Alcoa is the state’s single largest user of natural gas, consuming...
ISRI Convention and Expo 2015 to be held in Vancouver
The seaport city of Vancouver in Canada is the chosen city for the ISRI Convention and Expo 2015, by the US Institute of Scrap Recycling Industries (ISRI). A variety of topics will be covered under the convention offering informative general sessions and workshops on topics like: ferrous, electronics, aluminium, copper, nickel, lead, zinc, stainless steel, plastics and recovered paper. The convention will also cover discussions on the economy. Stan Slap, entrepreneur, strategist and motivator opened the general session with his keynote speech titled ‘Tough Times, Tougher Teams’. The session will talk about the common excuses given for poor performances and how altering mentalities towards creating solution can create strong foundations in a company. US defense secretary Robert Gates, a...
India plant secures SQ certification from Hyundai-Kia Motors
Sapa’s aluminium tubing plant in Pune, India, has obtained the supplier quality mark of certification from Hyundai Motors India Ltd. The accolade verifies quality mindset from shop floor to management. SQ – Mark Tier 2 is a certificate issued by the automotive quality assurance team of Hyundai Motors India Ltd (HMIL). It is awarded only to suppliers able to adhere to strict parameters on quality, process, environment, health and safety, and on-time delivery. Sapa’s Pune plant passed the vigorous demands on the first time around. Managing director Bharat Behal of Sapa Precision Tubing Pune Ltd credits his team for the work they put into the process. “We knew going into this that HMIL only certifies its highest-performing suppliers,” he says. The Supplier Quality Certificate is supported by...
XINFA's first shipment of bauxite to China expected next month
The first shipment of bauxite to China is expected next month as mining has already started at Votualevu village in Lekutu, Bua. XINFA Aurum Explorations Fiji Limited Mine Manager, Basilio Vanuca says 400,000 tonnes of bauxite is expected to be extracted from the new site. He said 200 seasonal workers are employed by the company. He said they were given another 20 year land lease and their bauxite mining license was extended last year. The new bauxite mine is expected to rake in about $16 million in revenue.
Plantation owners seek answers about possible mercury soil contamination by alumina refinery
The owners of two historic plantations asked the St. James Parish Council Wednesday to pay for tests that would determine whether the Noranda Alumina plant near Gramercy is causing mercury soil contamination. Norman Marmillion, owner of Laura Plantation in St. James Parish, and John Cummings, owner of Whitney Plantation in St. John the Baptist Parish, which is home to an acclaimed slavery memorial, said they were making the request in response to reports last month that Noranda officials believed the 55-year-old plant has been emitting mercury into the air for decades undetected and unpermitted. The owners argued the public, physicians, parish officials and state regulators all need to know what those soil tests might show and claimed the emissions were a detriment to their...
New technology for recycling aluminium alloy revealed at the Australian International Airshow
Australians demonstrated some clever innovations at the Australian International Airshow conducted last week which included a new way of recycling aluminium. Australia’s boffins demonstrated this country could still lead the way when it comes to aviation research. Deakin University metallurgist Thomas Dorin and his team have developed a technology that they believe will allow the millions of tonnes of aluminium alloys used in aircraft to be re-used in the industry, with potential savings in the billions. While recycling of aluminium cans is common, the cost-effective recycling of the aluminium alloys used in aircraft is difficult due to alloying elements and the need for low levels of impurities. Dr Dorin said the team had a proof of concept that showed its technology, developed at...
Indian Govt plans to auction minerals like iron ore, bauxite
New Delhi In a bid to bring in reforms in the mining sector and enhance transparency, the government plans to auction minerals such as iron ore, bauxite and manganese, Parliament was informed today. Minister of State for Mines and Steel Vishnu Deo Sai replied in affirmative in response to a query in Rajya Sabha as to whether there is any proposal to auction such minerals. "An Ordinance was promulgated on January 12, 2015 to amend Mines and Minerals (Development and Regulation) Act, 1957 providing for auction of mineral concessions," he said. In reply to another query, Sai said the Ordinance provides for "grant of mineral concession through auction by competitive bidding" and "enhancing penal provisions to check illegal mining". He said changes were being brought in the legal framework to...
