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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Aleris attains qualification to supply airbus from Zhenjiang, China
Aleris announced today that its new rolling mill in Zhenjiang, China has attained qualification to supply aluminum aerospace plate to Airbus. This achievement establishes Aleris as a qualified supplier of aluminum plate from its Zhenjiang mill for use in the production of various Airbus aircraft. Aleris' facility in Koblenz, Germany has supplied aluminum aerospace plate to Airbus for decades. Aleris Zhenjiang, which was opened in early 2013, was modeled after the Koblenz facility to meet the needs of both global and regional aircraft manufacturers by establishing a local supply of aluminum aircraft plate in Asia Pacific. "This qualification represents a major milestone in our growth strategy, and we are excited about our ability to supply Airbus from two strategically important locations...
Lion Trackshire wins new contracts for building aluminium roads
Lion Trackshire, a builder of temporary aluminium roads, has won new contracts for building roads so that vehicles can cross the treacherous paths during the construction of the renewable energy projects like wind and solar farms. The company whose turnover has risen to £16m over the last four years, claims that they are the largest suppliers of aluminium roadways. Lion has secured many prestigious projects before this including the construction of the Olympics trackway, major infrastructure contracts with the National Grid, Wimbledon and several other outdoor events. The company was founded in 2009 but the founders have been in the construction industry since 1960 so that they never lacked expertise, says Gordon McKay, the General Manager. The winner of the 26th and 31st rank in the...
The Company of Guinea Bauxite celebrates record 15,239,218 mt of bauxite production
The Company of Guinea Bauxite exhibited an exemplary production performance as a result of the ambitious drive of the senior managers, setting a record of 15,239,218 metric tons of bauxite of 3% moisture in the year 2014 and bringing big smiles on the shareholders’ faces. To celebrate this grand success in style, the company celebrated at the end of the year by organizing events for all the employees and their families as well as in Kamsar Sangarédi. The company seniors in their speeches have urged all the workers to continue developing the strong and prosperous values of the company at the same time take special care of hygiene measures as instructed by the specialists to banish the Ebola virus beyond Guinea borders.
India aluminium scrap prices show mixed trend
According to Scrap Register, aluminium scrap prices in India witnessed a mixed trend on Tuesday, while the future price at Multi Commodity Exchange (MCX) dropped to INR 112 per kilo gram. Indian aluminium scrap prices showed a mixed trend on Scrap Register Price Index as on Tuesday. Scrap prices of Aluminium Accessories advanced to 123, 000 a ton. However, the scrap prices of aluminium ingots, aluminium wire, aluminium sheet cutting and aluminium utensil remained flat on Tuesday. Meanwhile, the scrap Aluminium Rod company and local witnessed a down trend on Tuesday, prices drop to 171,000 and 166,00 respectively.
India Coal auction may see strong bidding from Aluminium companies: ICRA
Aluminium companies having large smelters at advanced stages are likely to bid more aggressively in the upcoming India coal block e-auction than the cement and steel sector players, whose margins have similar (but lower than that for aluminium) level of coal price sensitivity, according to a report by ICRA. As per an ICRA analysis, among the “non-regulated” sectors, coal cost relative to product price is the highest for the aluminium sector. Additionally, its margin also has the highest sensitivity to coal prices. The financial year 2014-15 has been a year of immense significance for the domestic coal sector. The various policy actions of the SC and Government of India have created an environment of rule-based coal mine allocation in the country, as against a “non-transparent” and...
Pacorini signs a long-term contract with the Norwegian aluminium producer Hydro
Broekman Distriport is to handle and store around 600,000 tonnes of aluminium a year from Norway for logistics service provider Pacorini Metals. In this connection, Pacorini has signed a long-term contract with the Norwegian aluminium producer Hydro, the Port of Rotterdam said in its press release. Pacorini, a subsidiary of Glencore, will distribute the rods and bars onwards from Rotterdam, in the Benelux, Germany, France, Spain and Italy, among other places. The majority will be transported by road, but rail and inland shipping will also be used for larger shipments. The aluminium comes from smelters in Sunndal, Husnes and Karmoy. The cargo will be shipped into Rotterdam’s Brittanniëhaven twice a week by the Norwegian shipping line Sea-Cargo, with which Broekman recently concluded a...
Bright Packing bags US$15m deal to supply aluminium foil to Russia
Bright Packaging Industry Bhd has secured a US$15mil (about RM53mil) contract to supply aluminium foil to a multinational tobacco manufacturing company in Russia. The company said on Tuesday it had entered into a purchase-sale agreement with Zao Philip Morris Izhora to supply the aluminium foil. “The agreement shall stay in force until Dec 31, 2016,” it said. Zao Philip Morris Izhora is an affiliate to Philip Morris International (PMI), an international tobacco company, with seven of the worlds' top 15 international brands, including Marlboro. Zao Philip Morris Izhora factory is located in St. Peterburg and it is PMI’s second-largest production plant in the world.
Novelis plant slows production due to equipment break down
An important aluminium sheet manufacturer that catered to Coca-Cola Co. (KO) and MillerCoors LLC has been forced to slow down production after the 6,000-horsepower motor that drives the hot roller broke down last month on 29th December. The hot roller was capable of flattening 25-ton blocks of aluminium. The break down of the machine will constrict the output till late January as repair works take place at the Russellville, Kentucky facility, the spokesperson of Novelis Inc. Fiona Bell said. Novelis Inc. partly owns the plant that is the largest aluminium-rolling mill in North America contributing 44% of the beverage-can sheets used in U.S. Two of the largest beverage-can suppliers Rexam Plc and Ball Corp. get their aluminium sheets from Novelis, which are then fabricated for Coca-Cola...
Aluminium Federation (ALFED) organizes health and safety workshop
Professionals from across the UK will gather in Telford for a major health and safety event. Organised by the Aluminium Federation (ALFED), the two-day health and safety workshop will take place on 11 and 12 March at the Telford Golf and Spa Hotel. Featuring speakers from Alcoa, Bridgnorth Aluminium, Boal, Toyota, Rio Tinto and the HSE, the workshop will address key health and safety issues facing manufacturers, including on-site transportation safety, Legionnella and the role of positive and negative behaviour in health and safety. The keynote address will be given by Simon MacVicker, ALFED president and managing director of Bridgnorth Aluminium. ALFED chief executive Will Savage said: “The format of the workshop is a mix of presentations, case studies and group discussion. It is a great...
Orbite receives $3M funding from investissement Quebec
Orbite Aluminae Inc. today announced Investissement Quebec will be providing Orbite with a $3.025 million bridge loan, collateralized against the Company's investment tax credits receivable for the year 2014, estimated at $4.0 million. The loan, repayable by June 30, 2016, will carry an interest rate of 3.5% over the prevailing prime lending rate, which currently stands at 3%. Interest is payable monthly and the loan is subject to other customary terms and conditions. "We are pleased with this further contribution from Investissement Quebec towards the funding of our HPA production facility in Cap-Chat," stated Glenn Kelly , CEO of Orbite. "This arrangement shows how having a balance of investment tax credits receivable provides us with additional flexibility to arrange financing at...
Constellium supplies high-strength aluminium structural parts for the new lightweight Ford F-150 pickup truck
Constellium N.V. today announced that it provides Ford Motor Co. with aluminium structural parts for the all-new Ford F-150 pickup truck that extensively uses high-strength, military-grade, aluminium alloy as a build material. Constellium, a global leader in the development and manufacturing of aluminium structural parts for the automotive industry, is one of Ford’s largest suppliers of these components for the F-150. The 2015 Ford F-150 delivers the industry’s best towing and payload capability among full-size light-duty pickups, enabled by reducing up to 700 pounds of weight through the use of high-strength steel in the frame and aluminium alloy in the body. To keep pace with increased demand, Constellium has doubled manufacturing capacity at its facility in Van Buren, Michigan, and...
The President of India passes the Ordinance allowing auction of mineral mines
The President of India, Pranab Mukherjee, has passed the Mines and Minerals (Development and Regulation) Amendment Ordinance 2015, on Monday evening which now allows the auctioning of the mineral mines, including bauxite and iron ore, similar to the recent coal mine auction that will enable a fair distribution of mines among the producers. The Ordinance will grant a competitive bidding option including e-auction so that there is transparency in the mineral allocation and at the same time boost the supplies for the steel and aluminium industries that are struggling to find raw materials. The tenure for the mineral allocation will also be extended from 30 to 50 years but there would be no system of renewal of the mining lease as the mine would be put back on auction after the end of tenure....
Aluminium down by 1.3% on overseas trend
Aluminium futures prices fell 1.35% to INR 109.35 per kg today as speculators reduced positions amid a weak trend in base metals at the London Metal Exchange. At the Multi Commodity Exchange, aluminium for delivery in January lost INR 1.50 paise, or 1.35%, to INR 109.35 per kg, with a business turnover of 247 lots. The metal for delivery in February also shed INR 1.45, or 1.30%, to trade at INR 110.35 per kg in a turnover of 22 lots. Marketmen said a weak trend in the base metals pack at the London Metal Exchange as slowing global growth dims the outlook for commodities and subdued demand from consuming industries at domestic spot markets, mainly put pressure on aluminium prices at futures trade here.
China’s Q1 aluminium prices could dip to $1,957, predicts SMM
Shanghai Metal Market forecasts that the overproduction in China coupled with the potential fall in the alumina prices could drag the spot aluminium price down to 12,000 yuan ($1,957) in Q1 2015. The relentless Chinese aluminium output is likely to soar in Q1 while the consumption will not be as robust since all major aluminium processors will be closing shop for the Chinese New Year causing the aluminium stockpiles to grow. With the current SMM spot price at 12,730 yuan as recorded on January 8, most of the aluminium capacities, nearly 42% or 12.71 million tonnes, are suffering a loss in cash lots. The SHFE 103 aluminium contract on the other hand had a better performance finishing the night session at RMB 12,735/mt despite the lower start at RMB 12,705/mt.
Tiny aluminum foil bowls boost solar efficiencies
Researchers have developed a simple strategy for trapping light and improving the optical absorption and efficiency of solar cells. The study, published in the Chinese Science Bulletin, uses aluminum foil in a nanobowl conformation and has achieved a 28 percent enhancement in power conversion efficiency. Solar energy is one of the most promising renewable energy resources and represents a clean and ultimate replacement for fossil fuels in the future. Over the past decades, enormous efforts have been invested in developing efficient and cost effective photovoltaic devices which are competitive to the fossil fuel. Organic photovoltaics (OPV) are regarded as one of the promising candidates for large-scale, low-cost and efficient solar energy harvesting. Typical OPV devices are fabricated on...
Low fuel prices not deterring production of high-mileage cars
While the world faces low fuel prices, automakers fear that the time, effort and money spent to make cars more fuel efficient, like the much talked-about aluminium F-150, could be a complete waste, analysts paint a different picture for the future of liquid fuels. The North American International Auto Show at Cobo Convention Center in Detroit is displaying the all new F-150 and demonstrates how it is welded and major automakers are still aiming to launch more high mileage vehicles pointing towards the trend that current low oil prices are not dictating the terms for future vehicles just yet. The reason automakers are continuing to produce more fuel-efficient and electric cars is two-pronged. Firstly, oil prices are unpredictable and the current prices highly unstable and future decisions...
China’s continued oversupply likely to boost aluminium exports
China’s aluminium market continues to be in oversupply pulling down the local aluminium prices and increasing the appeal for exporting the aluminium overseas. Traders and analysts believe that this trend is likely to continue in the coming months. The increased inflow of Chinese aluminium market will definitely control the widening deficit seen in the western world but also trigger a fierce competition in the market as the top western producers are at the moment negotiating high premiums for the physical delivery of the metal. Analysts state that the reason the Chinese producers are so active despite the falling prices is because they do not base their production volumes on the market economies but rather on debt. As long as they have their debt to repay, they will continue to produce...
Alcoa’s good results likely to boost Alumina's performance
With US aluminium production giant returning to profit with the Q4 results, the price of aluminium has seen a boost which has benefitted the Australian based company named Alumina. Alumina is in fact directly affected by Alcoa’s results as the two of them jointly own Alcoa World Alumina and Chemicals (AWAC) business, which owns alumina assets in Western Australia and the Portland aluminium smelter in Victoria, where Alcoa is the senior partner. Alcoa being one of the leading aluminium manufacturers in the world has significantly affected the price of aluminium which is forecasted to see a 20% or higher rise in 2015 soaring from the current price of $2,170 a tonne as demand becomes more robust in the aerospace and automotive industries. After-tax operating income in Alcoa’s alumina...
