Key trending news from the global aluminium industry, October 2023

The year 2023 looked positive regarding worldwide aluminium demand, but high inflation and a continuous threat of recession acted as a grinch, at least during H1, 2023. As per BMI, a research agency under Fitch Solutions, the commodity-intensive industries in Mainland China have had a sluggish recovery, and the global demand outlook has been unfavourable. As a result, prices have been under pressure in recent months and are likely to persist throughout the rest of 2023. ING Think, the economic and financial analysis department of the Dutch multinational financial services firm ING, reports that the fundamental prognosis for aluminium has not changed. However, they do not anticipate significant restarts in Europe until 2025 since aluminium demand is expected to stay stagnant until then.

1. Rio Tinto's Kitimat aluminium smelter is finally back in full production after a 17-month restart following a lengthy interruption caused by a strike in 2021. Rio Tinto general manager Simon Pascoe noted that the achievement is significant for the community and his 1,100-person workforce. The smelter has reached its full output capacity of 432,000 tonnes of aluminium annually for the first time since 2018. Rio Tinto also intends to commemorate the 70th anniversary of the smelter next year.
2. Aluminium Dynamics, the recently established aluminium division of Steel Dynamics, Inc., entered into a contract with Gillespie & Powers Inc. and its strategic partners, namely Hustler Conveyor Company, American Pulverizer Company, and ETA Engineering. This contract pertains to providing furnace equipment, pre-treatment equipment, and air pollution control equipment for Aluminium Dynamics' newly announced advanced facilities in Columbus, Mississippi, Gila Bend, Arizona, and San Luis Potosi, Mexico.
3. Wheels India, a renowned manufacturer of aluminium alloy wheels in Chennai, announced the establishment of fully-owned subsidiaries in Europe and the United States. The move will be crucial to the auto component manufacturers worldwide expansion since it will strengthen its supply networks. The growth will focus on offloading business in the construction and agro-tractor industries. During the first half, the firm spent INR 72 crore on capital expenditure.
4. The European aluminium behemoth Norsk Hydro has voiced alarm over the increasing flow of electric vehicles imported from China, implying that this development may have a substantial impact on regional demand. According to Chinese customs statistics, China sold $13.1 billion in EVs to Europe in the first seven months of 2023, up from $15.4 billion the previous year. 
5. The share of Russian aluminium stocks in London Metal Exchange-approved warehouses fell to 76 per cent in September 2023 from 81 per cent in August. The actual amount of Russian stocks on the LME warrant decreased from 183,650 tonnes in August to 132,475 tonnes in September. Aluminium stocks available to the market in LME-registered warehouses are referred to as on-warrant.
6. Airbus, the world's leading aviation maker, renews its contract with AMAG Austria Metall AG to supply aluminium rolled products, positioning the firm to capitalise on rising aircraft production rates and expanding market presence. Another significant milestone can be attributed to thyssenkrupp Aerospace renewing its contract with Boeing to continue supplying aluminium components for the aircraft sector. Since 1998, thyssenkrupp, has provided The Boeing Company and its global network of subcontractors with specialised supply chain management services, raw materials, and value-added services.
7. SIG, a Swiss international firm specialising in aseptic packaging systems and solutions, has announced intentions to spend €8.4 million (R$49 million) developing its carton packaging factory in Campo Largo, Curitiba's Metropolitan Region. Aseptic carton packaging comprised of layers of paper, polyethene, and a 5 per cent component of aluminium foil, protects the package from light and oxygen.
8. Century Aluminium of South Carolina, a subsidiary of Century Aluminium Company, which is traded on the NASDAQ under the symbol CENX, recently, announced the completion and acceptance of a new three-year power contract for the Mt. Holly aluminium smelter. The contract, authorised by all appropriate parties, including the South Carolina Public Service Authority (known as Santee Cooper), is scheduled to begin on January 1, 2024, and will last until December 31, 2026. The deal is intended to supply the smelter with 295MW of electric power, allowing the plant to continue operating at full capacity.
9. Aluminium Bahrain, one of the world's largest aluminium smelters, celebrated a significant milestone in its Power Station 5 (PS5) Block 4 Project with the arrival of Mitsubishi Power's cutting-edge M701JAC Gas Turbine (GT) on October 16, 2023. The installation of the world's first gas turbine (GT) specifically built for a primary aluminium smelter was a significant event that took place in the Kingdom of Bahrain. 
10. South32, a worldwide mining and metals corporation, is said to be implementing P3XLE energy efficiency technology at its Hillside Aluminium smelter in South Africa to cut greenhouse gas emissions significantly. This is part of the company's conscious attempt to transition away from carbon-intensive energy sources. Meanwhile, by using AP3XLE energy efficiency technology, Hillside can produce the same quantity of aluminium while using less power and producing less carbon.