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 turns to Australia for more bauxite
Australia has been exporting more bauxite to China after Indonesia began limiting exports of raw ore last year. Vessel-tracking data from IHS Maritime's Market Intelligence Network show six ship calls at Australian bauxite ports Weipa and Gove in January. In total, 496,643 tonnes of bauxite were shipped from the two ports last month. In the same month last year, six ships transported 387,812 tonnes of bauxite from the two ports. Due to deeper draught limits, Panamax bulkers have been shipping Australian bauxite. Supramaxes are the main means of shipping Indonesian dry bulk cargoes. Chartering managers told IHS Maritime besides the loss of Indonesian supply, Winning Shipping, which specialises in shipping bauxite to China, has been seeking alternative supplies from Australia and the...
Delhi High Court halts final bidding for 3 CGH blocks
The Delhi High Court Thursday directed the Union government not to conduct final bidding till February 18 for three coal blocks in Chhattisgarh, for which Sarda Energy and Minerals Ltd has submitted its initial price offer on its plea challenging the two-phased auction process in which half of the round one bidders are to be eliminated. A bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva allowed the government to open today the initial price offers (IPOs) for the three blocks - Gare Palma IV/1, IV/4 and IV/7 - as well as announce the qualified bidders, who were in top 50 per cent of bidders, and said the same would be subject to final outcome of Sarda's plea. "In present case, although we have permitted announcement of qualified bidders, we direct respondent (Coal Ministry) not to...
Altech appoints Seatram as its transport and logistics provider
Highlights • Memorandum of Understanding (MOU) with Seatram • For supply of total transport and logistics solution for Altech’s proposed high purity alumina (HPA) operation • Leading international freight forwarder and logistic provider based in Western Australia • Malaysia-specific logistics experience Altech Chemicals Limited is pleased to announce that it has executed a Memorandum of Understanding (MOU) to appoint Sea Transport Management (W.A.) (Seatram) as the exclusive transport and logistic services provider for the Company’s proposed high purity alumina (HPA) operation. Seatram is a leading international freight forwarder and logistics provider based in Perth, Western Australia, and under the terms of the MOU Seatram will provide the end-to-end transport and logistics for Altech’s...
Aluminium futures weaken on global cues
Aluminium prices fell by 0.22 per cent to INR 113.85 per kg in futures trading today as speculators reduced positions amid weak global cues. Further, subdued demand in the domestic spot markets weighed on the prices of the metal. At the Multi Commodity Exchange, aluminium for delivery in current month shed 25 paise, or 0.22 per cent, to INR 113.85 per kg in a business turnover of 237 lots. Similarly, the metal for delivery in March traded lower by 20 paise, or 0.17 per cent, to INR 115 per kg in 10 lots. Market analysts said the weakness in aluminium at futures trade was mostly in tune with a downtrend in base metals at the London Metal Exchange (LME) after China reported that consumer prices rose at the slowest pace in more than five years and factory-gate deflation deepened.
Novelis planning a systematic transition from beverage-can to automotive aluminium
Novelis says that margins in the beverage can industry, which was their core area of focus, has started to fall rapidly and as a result they are planning a systematic focus-shift to automobile aluminium. “(Our new business) model suggests that by FY20 (fiscal 2020), 25% of our shipments would be automotive. The beginning of this evolution is evidenced by record third-quarter shipments, which will only continue to accelerate from this point forward,” said Philip Martens, president and chief executive officer of Novelis. Steve Fisher, chief financial officer, Novelis says, “There are clearly signs that the market demand (for beverage cans) is continuing to go down, and it’s a little bit quicker than we thought. This is having some trade-offs between pricing and capacity.” Novelis plans to...
Zhejiang Yueling to expand annual automotive aluminum wheel capacity by 1 million pieces
Zhejiang Yueling Co. will expand the annual capacity of its 800,000-piece-per-year automotive aluminum wheel project to 1 million pieces after relocation and technical upgrade, it said in a statement filed to the Shenzhen Stock Exchange yesterday. The expansion will cost a total of 160 million yuan ($26 million), and is slated to be completed in one and a half years, it added. The company specializes in R&D and production of aluminum alloy wheels used in automobiles and motorcycles.
Nalco jumps after strong Q3 outcome
National Aluminium Company rose 4.55% to INR 51.75 at 9:21 IST on BSE after net profit surged 170.52% to INR 354.47 crore on 16.6% growth in total income to INR 2057.61 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours yesterday, 10 February 2015. Meanwhile, the BSE Sensex was up 146.39 points, or 0.52%, to 28,502.01. On BSE, so far 1.58 lakh shares were traded in the counter, compared with an average volume of 2.79 lakh shares in the past one quarter. The stock hit a high of INR 52.80 and a low of INR 51.15 so far during the day. The stock hit a 52-week high of INR 68.80 on 19 September 2014. The stock hit a 52-week low of INR 31.80 on 20 February 2014. The stock had underperformed the market over the past one month till 10 February 2015,...
Aluminum maker, Golden Triangle developers at odds over $1.2 billion project
The Columbus area economic development organization has put the 826-acres it has set aside for American Speciality Alloys back on the market, alleging that the startup that plans a $1.2 billion aluminum plant has not been acting in good faith recently. Joe Max Higgins, chief executive of Golden Triangle Development LINK, said Tuesday that the startup company that says it plans to produce aluminum alloy for automotive bodies has not presented a financial plan to LINK. The company’s plan calls for a 1.4 million-square-foot facility that would employ between 650 and 850. Roger Boggs, founder and chief executive of the company, told the Mississippi Business Journal Tuesday evening that the financial plan would not be revealed until a site has actually been selected. Boggs said the news from...
EGA wins the ESEA award for Exporter of the Year 2014
Emirates Global Aluminium has won the award for Exporter of the Year 2014 in the seventh E-Services Excellence Award (ESEA) was held at Ritz Carlton, DIFC, Dubai under the patronage of Shaikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai. The award is designated to honor the companies who have successfully adopted e-services for carrying out the trade and business. High profile attendees were part of the event including Abdulla Al Saleh, Undersecretary — Foreign Trade and Industry Sector at the UAE Ministry of Economy; Jamal Majid bin Thaniah, Chairman of Dubai Trade; Mohammed Al Muallem, Senior Vice President and Managing Director, DP World — UAE Region and Board Member of Dubai Trade; Ahmed Mahboob Musabih, Dubai Customs Director; and Eng. Mahmood Al Bastaki, CEO of...
Hindalco Q3 profit seen up 26% to Rs 420 cr
Aluminium major Hindalco Industries will announce its third quarter earnings on Thursday. Profit after tax is expected to increase 26 percent year-on-year to Rs 420 crore led by strong revenue and operating income, according to a CNBC-TV18 poll. However, higher depreciation and interest costs may restrict profitability. Revenue may increase 21 percent to Rs 8,730 crore during October-December quarter from Rs 7,201 crore in same quarter last fiscal, driven by higher aluminum volumes. Aluminum volumes may be driven by ramp-up at Utkal refinery and Hirakud and Mahan smelters. Analysts see benefit from higher aluminum realizations. However, copper volumes may be flattish Y-o-Y due to maintenance shutdown in December. Operating profit (EBITDA) is seen rising 49 percent year-on-year to Rs 940...
Rio Tinto delivers underlying earnings1 of $9.3 billion and announces a 12 per cent increase in full year dividend
Rio Tinto chief executive Sam Walsh said “Last year, we made a clear commitment to materially increase cash returns to our shareholders. We have delivered this today through a 12 per cent increase in our full year dividend and a proposed $2.0 billion share buy-back. These represent a total cash return to shareholders, in respect of 2014, of almost $6.0 billion. “Our continued financial and operating discipline enabled us to offset much of the impact of lower commodity prices in 2014. By increasing volumes and reducing costs, we achieved underlying earnings of $9.3 billion and we were able to maintain our EBITDA margin2 at 39 per cent. Free cash flow was assisted by a further reduction in capital expenditure3 and a successful programme to release working capital. As a consequence, we have...
Aleris withdraws IPO citing uncertain economic conditions
The aluminum processor Aleris Corp., based in Cleveland, has withdrawn its $500 million initial public offering (IPO), citing uncertain economic conditions. According to Reuters, the decision to rescind the offer comes three years after the Aleris had earlier sought to sell shares in the company. The owners of Aleris include the private equity firms Oaktree Capital Management LP, a unit of Oaktree Capital Group LLC, and Apollo Global Management. Over the past 12 months, the company has attempted to position itself to take advantage of the expected surge in aluminum demand from the auto industry. The company recently sold off both its recycling and extrusion businesses to allow it to increase its rolled products business.
Marine insurers warns about the bauxite liquefaction risks to Malaysian shipowners
After a Malaysian shipment of bauxite ore sank last month, marine insurers are issuing warnings about the dangers of liquefaction of bauxite that occurs due to the presence of excess moisture and can cause capsizing of the vessel due to dis-balanced weight of the cargo. The Bulk Jupiter that sunk just off Vietnam in January had only one survivor raising questions about the risks of carrying bauxite although this has not deterred the Malaysian shipments of the ore from Kuantan port when the country is looking to ramp up its exports. Kuantan situated at the east cost of Peninsular Malaysia is experiencing heavy rains and flooding causing the wet cargo situation. Marine insurer Skuld says that members need to be conscious about the situation and take the necessary precautions. At present...
Vietnam’s Prime Minister happy with Tai Rai’s one year progress
Vietnam’s Prime Minister, Nguyen Tan Dung went on an inspection of the Tan Rai Lam Dong Complex and the Nhan Co Aluminium factory on Wednesday saying he was proud of the achievements of the project over the past year. Owned by the Viet Nam National Coal-Mineral Industries Group (Vinacomin), the Tan Rai project was initiated in 2014 with the capacity to produce 650,000 tons of aluminium per year. Besides the aluminium factory, the project also includes mineral extraction and sorting. Last year the aluminium plant produced 485,000 tons of metal and in 2015 the number is expected to rise to 540,000. The project has brought positive change to the community, adding 1,450 jobs in Lam Dong aluminium company where each worker is entitled to an average VND 6.6 million ($309) per month. Another...
Aluminium futures weaken on global cues
Amid a weak trend in base metals at the London Metal Exchange, aluminium prices fell by 0.56 per cent to INR115.20 per kg in futures trading today as speculators trimmed positions. Further, subdued demand in the domestic spot markets also weighed on the metal prices. At the Multi Commodity Exchange, aluminium for delivery in February eased by 65 paise, or 0.56 per cent, to INR 115.20 per kg in business turnover of 228 lots. The metal for delivery in March shed 55 paise, or 0.47 per cent to INR116.25 per kg in five lots. Market analysts said the weakness in aluminium at futures trade was mostly in tune with a downtrend in industrial metals at the London Metal Exchange and subdued demand at domestic spot markets.
EMR opens third metal recycling site in Sheffield
Metal recycling giant EMR has opened its third scrap metal recycling depot in Sheffield. The Halfway facility, situated at the former SITA site on Holbrook Industrial Estate in Halfway, buys all grades of ferrous and non-ferrous scrap metal including iron, steel, copper, brass, aluminium, lead, scrap cars, boilers and farm scrap. Sheffield Halfway EMR already operates depots on East Coast Road in Attercliffe and Herries Road South in Hillsborough. The company has a network of more than 70 depots in the UK, spreading from Dundee to Plymouth. In a statement, EMR said: “With busy, well established depots on East Coast Road in Attercliffe and Herries Road South in Hillsborough, EMR is already well known in Sheffield for paying the most competitive prices and offering a selection of quick and...
Lowndes County pulls land reservation for aluminum mill
Mississippi's chances of being the location for a proposed $1.2 billion aluminum mill that would hire 650 or more workers to supply aluminum for auto bodies have taken a step back. The Commercial Dispatch reports Lowndes County is no longer reserving 826 acres near the Golden Triangle Regional Airport for the American Specialty Alloys project. American Specialty announced last November its plans for a 1.4 million square-foot plant that would make more than 600,000 tons of aluminum sheet and plate each year, with operations planned to start in late 2016. But Lowndes County officials say they're heard nothing more and CEO Roger Boggs hasn't answered their questions about the project. Officials say keeping the land reserved for American Specialty meant they couldn't market it to anyone else.
China Shanxi approves 700,000-tpy aluminum alloy project
Shanxi Development & Reform Commission has approved CPI Shanxi Aluminum Co. to build vertically integrated 700,000-tpy aluminum alloy project, China Power Investment Corporation said on its website yesterday. The project will be supported by 4 million-tpy coal mine, 2*660MW power plants, 2 million-tpy bauxite project, 600,000-tpy aluminum smelting facility, etc., CPI said.
