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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Aluminium closures market, expected to grow strong in 2015
The aluminium closures market, particularly for wine, is expected to continue strongly growing in 2015. This growth is attributed to a number of factors including the convenience offered to consumers as well as to wine makers and fillers. An end-consumer survey by IPSOS in five major European markets (France, Germany, Italy, Spain and UK) and the USA, demonstrates that the majority of consumers prefer an aluminium closure over other closure options for its convenience. Whether for opening, re-closing or avoiding wine spoilage due to cork taint aluminium closures scored top. *IPSOS is the world’s third largest market research company with more than 80 offices around the globe.
ALUMINUM USA to launch in Detroit in 2015
ALUMINIUM, the world’s leading trade fair partner of the aluminium industry, continues to expand its global activities. With the launch of ALUMINUM USA, this commitment will include a North American presence. With ALUMINUM USA, scheduled to take place from 11 to 12 November 2015 at the Cobo Center Detroit, Reed Exhibitions expands its event activities into one of the aluminium industry’s most important regions worldwide. The US market, the aluminium industry’s third-largest global market with total industry sales of USD 35.0 billion, has grown by 4.7% annually since 2009, resulting in overall growth of 30% over the last five years (source: IBISWorld Industry Report, July 2014). Key growth drivers include the automotive and aerospace sectors. In order to meet the rapidly growing demand in...
Alcoa projects positive growth in the downstream aluminium market
Alcoa declared its Q4 2014 results on Monday revealing a leap in the profits ending the year on a positive note amidst a major transformation in the company portfolio. The company is shifting its focus from the upstream aluminium market to the downstream value-add market, with a special focus on the automobile and aerospace sectors. The last year has been good in terms of global aerospace sales and the company expects the figures to jump another 9 to 10 percent in 2015 as the demand is robust in the large commercial aircraft, regional jets and jet engine sectors. Alcoa expects a steady growth in the automotive sector as well with forecasts of 2 to 4 percent global automotive production triggered by the replacement demand and low lending rates in North America. The growing awareness of...
Aluminum for production molding offers lower costs, high quality parts
Aluminum molds have been used for many years for applications that require lower piece part volumes such as prototype tooling for part R&D, and using materials that don't damage the cores and cavities. However, aluminum is being used more commonly today even in high-volume production molding applications. In fact, according to Darcy King, president of Unique Tool & Mold: "There are not a lot of applications where you can't use aluminum." Unique was one of the large automotive tooling suppliers that pioneered the use of aluminum for production molds, working in tandem with Honda Motor Co. more than a decade ago to collect data and perform comparison testing on the viability of using aluminum for production tooling. Unique "met or exceeded" Honda's expectations and the automaker chose...
New JLR workers will build new aluminium SUV
New employees at Jaguar Land Rover in Solihull will help the firm build an aluminium car which will be unveiled at a motor show in Detroit. The new model is based on the C-X17 concept car which the company first showed off in Frankfurt in 2013. It will be a cross between a saloon and a 4x4 and it is designed to rival cars like the BMW X3 and the Audi A5. The car will be built at the company's Lode Lane factory, which makes Range Rovers and the brand new, aluminium Jaguar XE. Jaguar Land Rover's new car will be aluminium and will be powered by engines made at the company's plant at Wolverhampton, which was opened by the Queen just a few weeks ago. The Solihull factory has recently undergone a massive rebuild and expansion with new lines installed to build various models simultaneously....
The cancellation of coal blocks likely to raise Hindalco’s cost of production
Market analysts predicts that Hindalco Industries is likely to suffer higher production costs after the Supreme Court cancelled the four coal blocks, Mahan, Tubed, Talabira-1 and Talabira-2 allocated to the company. Hindalco had been enjoying a low average production cost, among the lowest in the industry, of INR 1,700, per tonne before the cancellations. Since coal and power take up nearly 35% of the production costs, the uncertainty surrounding the coal supply will definitely hamper the cost of production. The originally Hindalco allotted mines have now been handed over to other regulated sectors which means they are out of reach for Hindalco and the company needs to bid for other mines that are not as close as the previous ones were. Antique Stock Broking Ltd. submitted a report on...
Metro Mining doubles DSO bauxite resources in Queensland
Metro Mining has more than doubled direct shipping ore Inferred Resources at its Bauxite Hills Project in Queensland to 47 million tonnes at 51.5% alumina. This follows the company estimating an Inferred Resource of 24.9Mt at 51.7% alumina for the BH1 deposit. Bauxite quality work has also confirmed the DSO product is suited for export. Work has commenced on the pre-feasibility study planned to be completed in February together with a resource upgrade from Inferred to Indicated. Project approvals are expected in the first half of 2016 with first production targeted for the third quarter of 2016. The project is being planned as a 2 million tonne per annum mine with low operating costs and low capital requirements.
China spot aluminum to crash through $1,957/ton in Q1 2015, SMM sees
Spot aluminum in China could crash through 12,000 yuan ($1,957) per tonne in Q1 2015, pressured by worsening supply glut and potential fall in alumina prices, Shanghai Metals Market foresees. China’s monthly aluminum output is expected to continue rising in Q1. Aluminum consumption, however, might weaken further as processors begin to close heading into the Chinese New Year. Both factors will cause aluminum stocks to mount. SMM spot aluminum price slumped to 12,730 yuan per tonne January 8. This has left 42% or 12.71 million tonnes of China’s aluminum capacities in losses in cash costs.
Malaysian subsidiary incorporated for High Purity Alumina (HPA) project
Altech Chemicals Limited is pleased to announce that following its strategic decision to select Johor Bahru, Malaysia as the preferred location for its proposed high purity alumina (HPA) processing plant, it has now incorporated a wholly-owned Malaysian subsidiary company, ‘Altech Chemicals Sdn Bhd’; the Company was formally advised of the incorporation on 6 January, 2015. The incorporation of Altech Chemicals Sdn Bhd represents a significant first step in Altech establishing its presence in Malaysia, and closely follows the Company’s submission of a Letter of Intent (LOI) for the reservation of a lot within the Tanjung Langsat Industrial Park, Johor Bahru. Importantly, the incorporation of its Malaysian subsidiary will enable the Company to advance the required documentation associated...
Outotec acquires Kempe Engineering's aluminium smelter technologies
Outotec, a leader in the global mineral and metal processing technology, is planning to acquire Kempe Engineering’s aluminium smelter technologies along with Middle East and Africa’s service and spare parts business. The Australian-based, privately owned Kempe is a technology provider for aluminium smelters, operation and maintenance services, modernization services and spare parts. Both parties refused to disclose the agreed price for the acquisition. The combination of Kempe and Outotec’s resources will strengthen the latter’s technology and service business in the Middle East and Africa and allow them to expand their reach by acquiring new capabilities and opportunities. "The Kempe acquisition supports our technology and service business growth especially in the Middle East and...
Alcoa reports strong fourth quarter 2014 and full-year results as transformation strengthens profitability
Lightweight metals leader Alcoa today reported a jump in fourth quarter and full-year 2014 profits, culminating a year of significant transformation for the Company. Alcoa is reshaping its portfolio for profitable growth by building its innovative, multi-material value-add businesses and by creating a globally competitive commodity business. In fourth quarter 2014, Alcoa reported net income of $159 million, or $0.11 per share, which includes $273 million in special items largely tied to previously announced restructurings in the upstream and midstream businesses, aligned with the Company’s objective of enhancing its portfolio. Year-over-year, fourth quarter 2014 results are up from a net loss of $2.3 billion, or $2.19 per share. Excluding the impact of special items, fourth quarter 2014...
Jaguar XE creates numerous new job opportunities
The Jaguar XE, announced last year at the Detroit Auto Show, is due to be released in 2015 and giving rise to 1,700 in-house jobs at Solihull, 700 at the DHL for parts supply and more than 2,000 across the supply chain. Jaguar Land Rover CEO Ralf Speth said: “Today’s announcements once again demonstrate our commitment to the UK and the advancement of a high-tech, high skilled, manufacturing-led economy. “Jaguar Land Rover is committed to delivering more great products. It is that innovation and relentless quest for new technologies that sets our products apart. “We want to offer customers greater choice, with even more exciting vehicles, crafted with that special British flair.” Jaguar Land Rover has already invested around £1.5 billion to support the release of the aluminium-intensive...
PCD recalls aluminum material to produce prostheses
The Pollution Control Department (PCD) Office's 16th Division and the related agencies are inviting the public to donate aluminum materials to be processed into prostheses for persons with disabilities. The 16th Division of the PCD Office and the Provincial Natural Resources and Environment Offices of Songkhla, Pattalung, Pattani, Yala, and Narathiwat, has launched the aluminum material recalling scheme. The aluminum received in this scheme will then be transformed into the royally bestowed prostheses in order to reduce the aluminum waste. The public can donate aluminum materials to the Prostheses Foundation of H.R.H The Princess Mother. The Foundation will then process the aluminum into leg prostheses and canes for persons with disabilities and elders. Aluminum materials can be donated...
Indonesian plans to reduce annual import of basic metal to promote domestic production
The metal industry is beginning to receive positive signals as the Federal Government intensifies plans to reduce annual import of basic metal (including aluminium), iron and steel, which is valued at $3.3 billion. The Federal Government is spearheading a move to bring in investors that will develop bauxite, iron ore and other essential minerals that serve as raw materials in the industry. The move is aimed at increasing access to raw materials for the local industry and reducing overdependence on imported materials in the sub-sector. It is also targeted at increasing capacity utilisation in the industry, which currently stands at 52.3 percent, Real Sector Watch has gathered. Industry players see this as a step in the right direction, as they say the sub-sector, if given more than a...
Iran produces almost 263,000 tons of aluminum ingot in 9 months
Iran’s aluminum industry has produced 263,000 tons of aluminum ingot in the first nine months of the year (March 21 – December 21, 2014). According to a report published by the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), 262,944 tons of aluminum ingot have been produced over the mention period. The figure shows 2,000 tons above the scheduled production, the report said. Over the nine-month period, 188,956 tons of alumina powder, 112,708 tons of lime and 321,225 tons of aluminum hydrate have also been produced in the country, the report stated. Iran’s aluminum ingot production in the years of 2011 to 2013 stood at 318,000, 337,000 and 350,000 tons, respectively. Iran’s aluminum production is planned to hit 1.5 million tons by the end of the...
Alcoa Q4 2014 results anticipated to be positive
Alcoa, one of the largest aluminium producers, is due to announce its Q4 2014 results on Monday evening and the investors are expecting a positive result. Considering the rising demand of the light metal in automobiles, trains, planes, housing and military gear construction the past quarter and the present year is looking to be a good one for the company and the industry as a whole. Twenty renowned analysts were polled by Thomson Reuters and they have reached a consensus that the Q4 earnings will result in a 27 cent climb per share which is great leap from the 4 cents per share rise seen a year ago. The projected revenue is likely to rise 8.1% to $6.04 billion. The demand for aluminium in automobiles does not seem to be hampered by the low fuel costs at present and Alcoa is also venturing...
Alba sets all time record on Sales & Production
Aluminium Bahrain B.S.C (Alba) sales figures for the year rose by 1.3% year-on-year (YoY) to reach 931,526 metric tonnes (mt) versus 919,722 mt in 2013 ahead of the company’s own forecast for the year while production figures were up by 2.1% YoY to reach 931,427 mt versus 912,700 mt in 2013. For the fourth quarter of 2014, sales figures grew to 242,322 mt - a 2% YoY versus 237,534 mt in Q4 2013; production figures topped 233,920 mt, an increase of 4,004 mt as compared to the same period of 2013. In addition, Alba was able to sustain Value-Added (VA) sales for 2014 with an average of 66% of total shipments. Commenting on Alba’s sales and production for 2014, Alba’s Chief Executive, Tim Murray said: “We continue to build momentum and we were able to exceed our own forecasts thanks to the...
Pierre Vareille new Chairman of European Aluminium Association
Brussels, 8th January 2015: As of 1st January2015, Pierre Vareille has been appointed to the position of Chairman of the European Aluminium Association (EAA) for a two - year term, replacing Roeland Baan of Aleris. Mr Vareille has been Chief Executive Officer of Constellium since March 2012. “I am truly honoured to be the new Chairman of the European Aluminium Association. Having been closely involved in its political action for many years, I am acutely aware of its role in driving forward the EU’s industrial competitiveness and sustainability agenda. In recent years, the strength of EAA’s leadership under Roeland Baan and the dynamism of its members have brought the association to the forefront of EU policy development. In my new role, I will build on this to ensure that the aluminium...
