AL Circle Analysis: Guinea’s 150Mt bauxite cap, China’s import swings, US tariffs draw aluminium Q4’26
The global aluminium supply chain is facing a series of changes that extend from bauxite mines and alumina refineries to smelters, regional premiums and finished-metal trade. In 2026, the market’s direction is being shaped not only by production volumes but also by freight costs, export restrictions, shifting Chinese demand and tariffs. Developments across Guinea, Australia, China, Europe and North America point to a market where access to supply is increasingly as important as the availability of raw materials. Bauxite supply: Guinea’s cap meets a well-stocked China, but is it stable? Guinea remains central to the seaborne bauxite market, with its shipment connections to China demonstrating the importance of reliable logistics. A new sea-rail route has enabled a Guinea bauxite shipment...
EU approves Germany’s power relief instrument: Could aluminium producers save €459m annually?
Germany’s aluminium industry could receive some relief from persistently high electricity costs after the European Commission, under the European Union (EU) approved the country’s industrial electricity price scheme for 2026–2028. The measure is intended to ease the burden on energy-intensive businesses, strengthen industrial competitiveness and support Germany’s position as a manufacturing hub. The stakes are particularly high for aluminium producers. Electricity can account for 30–40 per cent of primary aluminium production costs, making power prices a critical factor in operating margins and investment decisions. Explore- Most comprehensive and forward-looking industry-focused report — Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook...
Grow with
AL Circle
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...
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.
