Caustic soda plant setup in India: How aluminium growth is reshaping demand, costs and opportunities
Caustic soda may not be the most visible ingredient in aluminium production, but without it, the journey from bauxite to alumina would look very different. The chemical, also known as sodium hydroxide, is a crucial reagent in the Bayer process, where it helps dissolve alumina-bearing material in bauxite and separate it from impurities. The dissolved material is then processed to recover alumina, which ultimately feeds aluminium production. That makes caustic soda more than just another industrial chemical. Its availability, price and efficient use can influence the economics of alumina refining and, by extension, the wider aluminium value chain. As India expands its alumina and aluminium capacity, the requirement for this chemical is also becoming increasingly important. For companies...
Aluminum investment across North America and Asia: Who leads reshaping the next phase of growth?
Aluminum investment has been spreading across the entire value chain, from primary smelting and alumina refining to recycling, rolling, extrusion and battery foil, building more integrated and higher-value supply chains. During the past 5 years, the US and Canada in North America and China in Asia have been grabbing headlines pertaining to the aluminum industry. These updates have involved growth stories or have shed light on volatile market situations. How have these headlines contributed to a greater picture for the benefit of the aluminum industries of the two continents? Between 2021 and 2026, major projects across North America and Asia have targeted new primary capacity, lower-carbon production, recycled aluminum and higher-value downstream products. But the investment pattern is...
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LCIA arbitral tribunal rules in favor of UC RUSAL in a case regarding ALSCON
UC RUSAL, a leading global aluminium producer, announces that a three-member LCIA arbitral tribunal in London rendered an award in favour of UC RUSAL in its case against four Nigerian state entities: the Bureau of Public Enterprises, the Federal Government of Nigeria, the Ministry of Finance, and the National Council for Privatisation. This award is the culmination of a case brought by the Company in August 2012 against the respondents to confirm the legal status of certain shares in the Aluminium Smelter Company of Nigeria Plc (“ALSCON”) that were purchased by the Company from the respondents in 2006. In the consent award of 15 October 2014 the tribunal confirmed the parties’ agreement to the effect, inter alia, that the share purchase agreement between the Company and the respondents of...
Chalco's Henan Branch delays resumption at 1,000,000-tonne alumina capacities
Chalco's Henan Branch delayed the production resumption at its 1,000,000-tonne alumina capacity, Shanghai Metals Market learns. The delay is mainly because the repairing of its red mud pond has not been completed, sources reported. The company closed a total of 1,600,000 tonnes of alumina capacities due to the leaks from red mud pond in mid September. It restarted 600,000-tpy alumina production in late September, and scheduled to put back online the rest capacities in early October.
Alumina Limited stock rating reaffirmed by Deutsche Bank (AWC)
Deutsche Bank reaffirmed their buy rating on shares of Alumina Limited in a report released on Monday. Deutsche Bank currently has a $2.25 price objective on the stock. Deutsche Bank has also updated their ratings on a number of other stocks in the last week. The firm reiterated its buy rating on shares of The Carlyle Group LP. They have a $34.00 price target on that stock, down previously from $37.00. Also, Deutsche Bank reiterated its hold rating on shares of YRC Worldwide, Inc.. They have a $27.00 price target on that stock, up previously from $22.00. Finally, Deutsche Bank reiterated its hold rating on shares of Apollo Global Management LLC. They have a $20.00 price target on that stock, down previously from $21.00. Shares of Alumina Limited opened at 1.635 on Monday. Alumina Limited...
Kaiser Aluminum Corp. (KALU) plans quarterly dividend of $0.35
Kaiser Aluminum Corp. declared a quarterly dividend on Wednesday, October 15th, American Banking and Market News reports. Stockholders of record on Friday, October 24th will be given a dividend of 0.35 per share on Friday, November 14th. This represents a $1.40 dividend on an annualized basis and a yield of 1.90%. The ex-dividend date of this dividend is Wednesday, October 22nd. KALU has been the subject of a number of recent research reports. Analysts at Tigress Financial initiated coverage on shares of Kaiser Aluminum Corp. in a research note on Tuesday, September 23rd. They set a “buy” rating on the stock. On a related note, analysts at Stifel Nicolaus reiterated a “buy” rating on shares of Kaiser Aluminum Corp. in a research note on Friday, July 25th. They now have a $85.00 price...
Oldcastle BE announces price increase on aluminum products
In a recent letter to customers, officials from Oldcastle BuildingEnvelope announced a price increase on its aluminum and aluminum accessory products. An increase of 6 percent went into effect on all orders received, and shipments made, after Sept. 16, according to the letter. Company officials attribute the price increase to rising raw material, energy and labor costs. “Primary inputs, such as aluminum, plastics, gaskets, silicone and freight continue to rise, applying negative cost pressures on all of our products,” Mary Carol Witry, chief operating officer, said in the letter. “In addition to the material cost increases, we are experiencing a rise in labor and energy costs, resulting in higher operating costs. Despite our best internal cost containment measures, we are unable to...
Ford is hiring 850 workers to help build aluminium F-150 pickup
Ford Motor Co., on a hiring spree in advance of next year’s labour contract negotiations, said it’s adding 850 workers at its Dearborn, Michigan, manufacturing site to help make the new aluminium-bodied F-150 pickup. “These new jobs will help meet anticipated customer demand,” Joe Hinrichs, Ford’s president of the Americas, said in an announcement at the plant, also known as the Rouge, where Henry Ford built a sprawling industrial complex almost a century ago. “Combining salaried and hourly positions, Ford has hired more than 23,000 employees since 2011.” The new jobs bring Ford’s hourly hiring total to more than 14,000 since 2011, exceeding a pledge it made three years ago to the United Auto Workers (UAW) union that it would recruit 12,000 by 2015. Last month, Ford said it would hire...
Continental showcased the world premier of its new water-cooled aluminium turbocharger
Continental, an international automotive supplier showcased the world premiere of its new water-cooled turbocharger which features an aluminium turbine at the ongoing 8th International Suppliers Fair (IZB) at Germany running from October 14-16. The most prominent feature of this new aluminum turbocharger is its optimized response behavior while its lightweight structure helps the automotive industry to achieve those steep targets regarding consumption and emission. These turbochargers are 30 percent lighter than the conventional one weighing at only 1.3 kg. The water cooling system adds two more benefits to its light weight. Firstly, it becomes much easier to protect the neighboring components from the heat and secondly the thermal load on the catalytic converter is a lot less with the...
Growth in transport drives demand
New data from the European Aluminium Association (EAA) predicts a bright future for aluminium in the European market, driven primarily by thriving demand for its applications in transport. End-use demand for aluminium in Europe will almost double in the coming decades, from 12 million tonnes per year today to a staggering 20 million tonnes by 2050. This is mainly a result of aluminium’s growing use in transport, which has almost tripled since the 1990s. Indeed the European market is expected to grow from around 3.8 million tonnes per year (mt/y) today to 7 million tonnes in 2050, with the average use of aluminium per European citizen rising by nearly 64% to 36kg by 2050. On the occasion of the Aluminium 2014 Fair (7-9 October, Düsseldorf), Director-General of the European Aluminium...
Aleris International announces Nichols Aluminum plant closure, 95 job cuts in Decatur
Ohio-based Aleris International said Wednesday it will close its aluminum finishing plant in Decatur just a few months after acquiring the business in a $110 million cash deal. Nichols Aluminum, which began as Decatur Aluminum Corp. in the late 1950s and now has 95 employees, will shut down during the next few months. However, Aleris spokesman Jason Saragian did not give a specific timeline for the closure. "Aleris decided to discontinue operations at its facility in Decatur, Alabama, when we determined that our operations could be streamlined to serve our customers more efficiently by moving production to other facilities within our U.S. operations," he told AL.com. The Decatur plant on 2001 Alabama 20 West is an aluminum finishing operation that makes coated aluminum primarily for the...
Montenegrin lawmaker brings suit over bankrupt aluminium plant
Branko Radulovic, Vice President of the Parliament of Montenegro, has filed a lawsuit against 32 individuals, including Russian businessman Oleg Deripaska and Montenegrin Prime Minister Milo Djukanovic, over bankruptcy of the Aluminum Plant Podgorica (KAP), RIA Novosti reported on Tuesday. KAP once was the country’s largest company and leading exporter. Deripaska’s En+ bought a controlling stake in the plant in 2005. In 2013, the Montenegrin government initiated bankruptcy proceedings after KAP accumulated a debt of over 350 million euros and sent a bankruptcy receiver to the plant. Podgorica started proceedings to sell off KAP after it was declared bankrupt to Uniprom, which is owned by businessman Veselin Pejovic. Deripaska-controlled Central European Aluminum Company (CEAC) continues...
Angel reports a decline in aluminium prices with faltering Chinese demand
Considering the falling demand of aluminium in China, the largest consumer, prices might dip in future according to Angel’s monthly report. The closing of smelters and the consecutive tightening of supply had led to the highest price of aluminium in recent years. However the anticipated deficit is driving many to increase capacity, like Norsk Hydro is planning to update its output by 30 percent at the Suudal plant in Norway by the end of 2014 and by another 35,000 mt by mid 2015. Aluminium prices had been gaining for the last 6 months but in September 2014, an 8 percent decline was noticed. This decline has been attributed to slowing investment growth, subdued CPI inflation, contracting imports, decelerating industrial production and widening PPI deflation which are indicating towards...
Alba supports “Invest in Bahrain 2014” Forum
Aluminium Bahrain B.S.C. (Alba), one of the pillars of the economy of Bahrain, provided sponsorship support for the “Invest in Bahrain 2014” Forum, which took place at the Bahrain International Exhibition & Convention Centre on Wednesday, October 15, 2014. The sponsorship is a tangible demonstration of Alba’s support for Bahrain as a key investment destination. Held under the patronage of HRH Prince Khalifa bin Salman Al Khalifa the Prime Minster of the Kingdom of Bahrain, “Invest in Bahrain 2014” Forum was organised by the Ministry of Industry & Commerce, Kingdom of Bahrain. Commenting on Alba’s support for “Invest in Bahrain 2014” Forum, Alba’s Chief Financial Officer, Ali Al Baqali said: “Alba’s position as one of the world’s leading aluminium smelters is the result of Bahrain’s...
Alro paid 66 million dollars as energy costs in Romania
Alro Saltino has reportedly paid 66 million dollars as energy costs last year and it is difficult to afford similar expenditure for another year according to Gheorghe Dobra, the CEO of Alro at a conference concerning energy issues. He says that including ecotaxes, the company spent more than 1,000 dollars per ton for energy. Meanwhile the quotations of aluminium on Thursday were 1,886 dollars per ton. Dobra says that such costs are difficult to incur year after year and the future of aluminium industry in Romania seems bleak if the energy costs remain like this. The deadline for the big energy consumers to submit their exception documents as a part of the green certificates has been pushed to 1 December and Dobra believes it will be pushed even further. That would mean another year of...
Norsk Hydro clients want 'green' aluminium: CEO
Some major customers of Norwegian aluminium maker Norsk Hydro (NHY.OL) want it to certify metal made with clean hydro power to help a shift from high-polluting fossil fuels and combat climate change, chief executive Svein Richard Brandtzaeg said. He also said the company, the world's number nine producer of primary aluminium in 2013, was investing in measures to cut greenhouse gas emissions because it expects governments to impose a global price on carbon pollution sometime in future. Some customers wanted proof that aluminium is from a low-emissions source to help limit global warming, he said. That would echo other systems that certify that commodities such as timber, coffee or palm oil come from sustainable farms. "We have customers now that would like us to give identification and...
GMDC acquires 100 hectares of land for alumina plant in Kutch
Mining major Gujarat Mineral Development Corporation (GMDC) has acquired land in excess of 100 hectares for the first phase of an alumina plant and aluminium smelter plant, which would be set up in joint venture with Navratna Public Sector Unit (PSU) National Aluminium Company Limited (NALCO) at Mandvi taluka in Kutch district. In all, 400 hectares of land is required for the first phase of the project. The first phase of the project involves setting up an alumina plant whereby alumina will extracted from the ore bauxite by means of a process at an alumina refinery. The second phase involves setting up an aluminium smelter plant. Aluminium smelting is the process of extracting aluminium from alumina. "We have already acquired 104 hectares of land for the initial phase of the project and...
Alcoa to pay $US 56 million to Alumina Limited for exiting Jamalco project
Alcoa World Alumina and Chemicals (AWAC), which is a joint venture between Alcoa and Alumina Limited, has been handing out dividends from its passive share. However, now with the sale of its share in the uneconomical Jamaica refinery, Alumina is slated to receive a handy cheque from Alcoa. The sale was put up in June after which, AWAC has already divested its 55 percent stake in Jamalco for $US 140 million to Noble Group and has reported a book loss of $US 210 million - $US 260 million. Alumina has reported a proportionate book loss of $US 84 million - $US 104 million which is an approximate figure taking into account calculative differences. Despite the apparent losses, Alumina is still considering what to do with the $US 56 million it is due to receive from Alcoa. Although, the obvious...
China Guangdong imports 623,000 tonnes of alumina Jan-Aug 2014
China’s Guangdong Province imported 97,000 tonnes of alumina in August, up 1.6 folds yea-on-year. Year-to-date imports through August totaled 623,000 tonnes, also up 26.4% from a year ago, China Customs data showed. The average import price was 2,231 yuan ($ 363) per tonne in August, down 8.2% from a year ago, versus 2,265 yuan per tonne for the January-August period, also down 3.2% on the year. In August, arrivals from Australia, China’s top supplier, spiked 91.9% year-on-year to 71,000 tonnes, and inbound shipments from the EU soared 80.3% on the year to 558 tonnes. Imports from Japan, by contrast, tumbled 44.5% from a year ago to 152 tonnes.
Alcoa to sell stake in Jamalco to Noble
Alcoa and Noble Group Ltd today announced the signing of a definitive agreement that will result in Alcoa World Alumina and Chemicals (AWAC) selling 100 percent of its ownership stake in the Jamalco bauxite mining and alumina refining joint venture to Noble for $140 million. AWAC will continue as the managing operator for three years under a compensated service agreement and employees will remain employed by Jamalco. The Jamalco joint venture is 55 percent owned by Alcoa Minerals of Jamaica (AMJ) and 45 percent owned by Clarendon Alumina Production Ltd. (CAP). AMJ is part of the AWAC joint venture, owned 60 percent by Alcoa and 40 percent by Alumina Limited. CAP is a company wholly owned by the Government of Jamaica. “The decision to sell AWAC’s stake in Jamalco is in line with Alcoa’s...
