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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China authority to tackle overcapacity in aluminum industry
China’s Ministry of Industry & Information Technology (MIIT) is mulling over plans to tackle chronic overcapacity in the country’s aluminum industry, Shanghai Metals Market has learned. Measures under consideration include: greater scrutiny of projects under construction; strict control over capacity expansions; encouraging vertical integration of regional power plants and aluminum smelters; pushing for fair pricing among on-grid power, captive power and local on-grid power networks; enhancing cooperation between upstream smelters and downstream processors; widening the field of possible applications for aluminum in construction, power, transportation and aerospace sectors; and encouraging domestic smelters to build aluminum smelting and processing facilities overseas.
Indian aluminium companies export more as home market slows down
Hindalco Industries and Vedanta Resources, India's two largest aluminium producers, have stepped up exports amid increasing capacity and poor domestic demand. Exports of primary aluminium from the country surged 65% in the first half of the current fiscal, according to the Centre for Monitoring Indian Economy, as demand slowed down at home due to a sluggish Economy, while overseas markets offered a better opportunity to Indian producers. Hindalco has exported as much as half of its produce during this financial year, compared to less than a fifth last year, while Vedanta Resources exported about 40% of its output in India against about 30% in 2013-14. "If we find it is better, economical and makes sense to export, we will-...better than holding onto the stock," said Hindalco's managing...
Open Energi joins Aluminium Federation
The Aluminium Federation (ALFED), the body that represents the UK aluminium sector, has welcomed Open Energi as a member. UK company Open Energi, which has offices in London and Manchester, has developed an energy demand response management product, which enables heavy electricity users, including many in the metals sector, to match use to availability. In addition to delivering new revenues to users, demand response management promises to lower the UK’s risk of blackouts, at the same time as reducing the overall cost of energy. It achieves this by avoiding the need to build new power capacity, making it easier to manage intermittent renewable energy supplies, and enabling significant emissions reductions. “Open Energi’s technology automatically responds to fluctuations in demand within...
Indian scrap prices may fall in line with global trend in February
It would seem foolish to predict anything but a fall in Indian scrap prices in line with the global trend in February. According to TSI, market participants are predicting a downward movement of around $10-15 a ton in the immediate future as the scrap industry cannot continue to play second fiddle to semi-finished material from Russia and China. If this correction occurs it seems likely that the market will remain depressed with only the Indian budget and its potential increase in duties for semi-finished products, to be unveiled this month, offering a potential catalyst for recovery.
New technology being devised to recycle multilayer packaging material
A new technology is being developed by Saperatec Industries of Czech Republic and Saperatec of Germany, a recycling technology supplier that will allow the separation of multi-layer packaging material. The two entities together is planning to build and operate facilities across Europe that will enable recycling of the multilayer packaging materials like plastics and aluminium laminates used in beverage cartons breaking them down to reusable raw materials. Both the companies together are making a double-digit million Euro investment but it is understood that this venture is expected to be beneficial as it will help them secure the international market entry, Tomáš Sysel, chairman of the board of directors at Saperatec Industries is optimistic about the partnership saying that this venture...
Hiring begins for Constellium-UACJ’s Kentucky plant
Constellium- UACJ is slated to begin hiring over the next two months for its Body in White plant in Kentucky Transpark with a target of recruiting around 50 people by the end of the year. The plant is supposed to employ 80 people in total once the $150million automotive aluminium sheet production facility goes into production. Meanwhile the existing facility at Neuf-Brisach, France is also undergoing expansion with two continuous annealing, picking and finishing lines ordered for the facilities, according to a news release. The installation of the equipment at the Bowling Green facility is to commence in the next two months said Markus Wild, chief executive officer for the Body in White plant. The equipment is used to release pressure out of the coils, cool it, treats it chemically,...
Hindalco secures Kathautia coal mine in Jharkhand
Hindalco Industries secured a coal mine in Jharkhand on the second day of the auction, boosting the shares of the company significantly. Six other contenders were in competition to secure the coveted Kathautia mine in Jharkhard including Monnet Ispat & Energy, Rungta Mines, UltraTech Cement and the prior allottee Usha Martin. Hindalco finally won the auction offering INR 2,680 per ton for the good quality coal and has the access to the 26 million tons available in the Kathautia mine. The company has shown rise in its net profit this year, rising from INR 334 crore reported last year to a net profit of INR 350 crore reported in the last quarter of the present fiscal year.
Aluminium Association of India (AAI) announces New President and Vice President
Aluminium Association of India, the apex body representing the entire spectrum of Indian Aluminium Industry, at its Governing Council Meeting held on 27th January 2015 at New Delhi elected Mr. S.K. Roongta, Chairman, Bharat Aluminium Company Limited (BALCO) as Hon. President and Mr. Satish Pal, Deputy Managing Director, Hindalco Industries Limited as Hon. Vice President. Mr. S.K. Roongta is Chairman – Bharat Aluminium Company Ltd. (BALCO) & Talwandi Sabo Power Limited (TSPL) both Vedanta Group Companies and Heads Aluminium & Power Business of the Vedanta Group comprising of 2.5 million tonnes of fully integrated aluminium and 8000 MW of Power. Earlier he served as Chairman of Steel Authority of India Limited (SAIL) from August 2006 to May 2010. An Electrical Engineering Graduate from BITS...
Pahang Govt. to cease mining activities if pollution continues
The Pahang Govt. says if the pollution problem persists, despite the recent steps taken, they will not hesitate to cease bauxite and iron ore mining activities. Following the complaints raised by Chinese tourists regarding the dirty condition of the Kuantan Port, the state government took the matter very seriously as it not only affected the local residents but also the state’s tourism industry. The government has tried to rectify the issue by meeting with 106 bauxite and iron ore operators and arriving at the decision to prevent bauxite-laden lorries to take any other road beside the Jalan Gebeng-Bypass, with an ultimatum of two months to clear out the bauxite stores at the port. However Menteri Besar Datuk Seri Adnan Yaakob he told reporters “If there is no solution to the (pollution)...
UC Rusal comments on LME official stock decline below 4 Mln tonnes
UC RUSAL, a leading global aluminium producer, notes that official LME aluminium stocks fell below 4 million tonnes on 11 February for the first time since May 2009. RUSAL notes that LME aluminium stocks keep declining and maintain a steady decrease of around 7 thousand tonnes per day. This drawdown reflects the Company’s view of the supply and demand balance on the global market excluding China which is currently in deficit. The fundamental demand for aluminium remains strong and RUSAL expects to see the stocks at LME warehouses to continue to decrease throughout 2015. Premiums fill in the gap between the LME pricing mechanism and physical market. RUSAL’s expectation is that stocks (reported/unreported) are being delivered to the consumer market to address the supply deficit so up until...
Rexam secures land to expand operations in India
Rexam, a leading global beverage can manufacturer, has secured land in Sri City (55km from Chennai), Southern India, as well as in Mahindra World City, Jaipur, Northern India, to build a further two beverage can plants in addition to its existing plant in Mumbai. Each plant represents an initial investment of close to £50 million and will add a total production capacity of close to 1.6billion cans. Our plant in Sri City is expected to be operational by H2 2016 and this will be followed by the plant in Jaipur. The two plants will create around 150 new jobs in each of their local communities. Craig Jones, Sector Director Rexam AMEA, commented: “These investments will support and enable us to take advantage of the continued exciting growth of the beverage can in India. Having plants in...
Goa Carbon Ltd looking for overseas expansion options
Goa Carbon Ltd is in expansion mode, looking for opportunities overseas even though their last attempt to set up a greenfield calcined petroleum coke (CPS) project in China to produce 300,000 mt per annum could not be commissioned. With clients like Hindalco and Vedanta looking to expand, Goa Carbon is also hoping to spread its wings and had bought land in China for the purpose but for reasons unknown the land had to be returned thwarting their overseas attempts. Chairman Shrinivas Dempo says that at the management level they are still exploring and evaluating options to invest in China and other places although the company does export to overseas countries like France, Greece, Cameroon, Dubai and other countries. The second largest manufacturer of CPC in India, the company has a total...
Constellium invests €22.5 million to expand casting, extrusion and fabrication capacity in Decin, Czech Republic
Constellium N.V. announced today that it is investing €22.5 million in its site located in Decin, Czech Republic. The investment, expected to be completed by April 2016, will include a new casthouse, a new indirect extrusion press line for production of hard alloy bars and profiles, a new drawing line, and a complete refurbishment of an existing extrusion line to meet increased demand for drawn bars. The investment follows a €15 million investment announced in May 2014 that included a new casthouse and extrusion line to increase production of hard alloy extrusions by almost 10,000 tons per year. Both investments further Constellium’s strategy of boosting production capacity of high-volume specialty alloy products and extrusions to supply primarily the European automotive market. The plant...
Nespresso to recycle in SA
Nespresso has launched its first programme to recycle its used aluminium capsules in South Africa. The programme will allow Nespresso Club Members and South African coffee drinkers to return used Nespresso capsules for recycling at dedicated collection points at Nespresso Boutiques in South Africa. “Nespresso is committed to continuously improving its environmental performance across its value chain," said Pierre Debayle, Regional Manager, Nespresso MEAC. Nespresso says it uses aluminium for its Grand Cru capsules as it is the best material available today to protect and preserve the highest quality coffees against factors such as oxygen, light and humidity which could compromise freshness, taste and quality. Aluminium is also the only material that interacts with Nespresso machines to...
Century Aluminum delays earnings report in wake of exec’s medical leave
Rick Dillon, the executive vice president and chief financial officer of Chicago-based Century Aluminum Co., is taking a temporary medical leave of absence and that will delay an earnings report for the company that owns a smelter in Mount Holly, Century announced Thursday. Dillon is expected to return to the company by the end of March. The company provided no further details about the leave of absence. Michael Bless, Century’s president and CEO, will assume Dillon’s duties in his absence. Century said it will reschedule its earnings announcement to Feb. 24. The earnings announcement had been scheduled for Feb. 19 after the markets’ close. The company announced on Dec. 1 that it had completed its $67.5 million acquisition from Alcoa of the Mount Holly smelter, one of Berkeley County’s...
Nagpur institute inks pact with MIT
City-based Jawaharlal Nehru Aluminum Research Development and Design Centre (JNARDDC) on Thursday signed an MoU with the Maharashtra Institute of Technology (MIT), Aurangabad to promote scientific and technological education, and research and development in the region. The MoU was signed by the JNARDDC director Anupam Agnihotri. He said now even his centre would be following international standards where research institutions work in collaboration with the industry and academic institutions. The MoU will help in creating a dynamic aluminium R&D cluster in the state and the country. MIT Aurangabad, established by the Gramudyyogik Shikshan Mandal, offers a number of technology, management, architecture and science studies. It is also part of the Centre's national knowledge network. It is...
Press Metal on track to be a global player
Press Metal Bhd, which is on track to become the largest aluminium smelter in the region by the end of the year, recorded a profit of RM42mil on the back of a record turnover of RM1.1bil in the final quarter of its operations in 2014. With its smelting plants in Mukah and Bintulu in Sarawak running at full capacity, Press Metal registered a record turnover of RM4.1bil for the financial year ended Dec 31, 2014 and a profit of RM212.7mil. Last year, Press Metal, which had been hit by the shutdown of its aluminium smelting plant in Mukah due to an electricity outage, posted a loss of RM28.7mil on a turnover of RM807.6mil in the fourth quarter, while for the whole year, its net profit was RM15mil on a turnover of RM3.1bil. The Mukah plant resumed operations in April last year after having...
Aluminium overtakes copper for No.2 spot at Rio Tinto
Rio Tinto has been struggling for years to recover from the $38 billion purchase that elevated it to the world's biggest aluminium company but also brought it to the verge of bankruptcy. Now signs of price improvements for aluminium and related alumina and bauxite, amid slowing supplies out of China, are turning the division's fortunes around. In Rio Tinto's financial results on Thursday, data showed aluminium had surpassed copper as the second biggest contributor to underlying earnings - $1.25 billion against $910 million for copper - in 2014 behind iron ore. For perspective, in 2013, aluminium contributed $550 million versus $820 million by copper. "Our aluminium division has grown into a significant contributor to group earnings and cash flow," Chief Executive Sam Walsh said. Copper...
