AL Circle analysis: How do Germany’s 32.8% automotive aluminium share, 40% Diet Coke can price rise & 3.54Mt North American extrusion demand matter?
Aluminium’s downstream and end-user world is having one of those fortnights where a beer can, a luxury sports car, a German construction site and an Indian furnace all end up in the same conversation. The metal may begin its life far upstream, but its real fuss is playing out in cans, cars, extrusions, buildings and factories, where tariffs, trade policy, energy costs and demand cycles decide who wins. This fortnight highlights that aluminium demand is moving towards electric vehicles, lightweight transport and long-life infrastructure, even as packaging and construction feel the pinch of cost and weak activity. Meanwhile, producers from Vietnam to New Zealand are arguing over the oldest question in the business of how much protection, taxation or openness does a downstream industry need...
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...
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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...
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...
