Bell Bay Aluminium (BBA), Australia's oldest aluminium smelter, is reviewing its workforce and offering redundancies for a small number of positions, just over a month after receiving an AUD 200 million (USD 137.52 million) government support package aimed at securing the facility's future until at least 2031. Up to 10 roles are understood to have been affected by the review, although the smelter is expected to retain its existing workforce of approximately 550 full-time equivalent (FTE) employees. Some redeployment opportunities will also be available, while the positions identified are not understood to involve frontline services. The changes reportedly include some former participants in Bell Bay Aluminium's graduate programme. Rio Tinto, which operates the smelter near George Town in...
South32 expects the sale of its aluminium value chain assets to Alcoa to be completed in the six months ending June 2027. The proposed transaction covers its aluminium operations and related bauxite and alumina assets in South Africa, Australia and Brazil. The sale follows a binding conditional agreement signed by the two companies, under which Alcoa agreed to acquire the assets for up to USD 5.6 billion . The assets include South32's Hillside Aluminium smelter and the idled Bayside smelter in South Africa, its interests in the Boddington bauxite mine and Worsley alumina refinery in Australia, and the Mineração Rio do Norte bauxite mine and Alumar alumina refinery and aluminium smelter in Brazil. Explore the production, demand and consumption forecasts of bauxite and alumina in our...
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Aluminum companies across the United States have come forward to form a new coalition aimed at fighting trade practices by China they think will cause potential damage to the U.S. aluminum indusrty in as little as eight to nine months. The coalition holds China responsible for heavily subsidizing its aluminum production that is causing a situation of oversupply in the global market resulting in price fall unlike ever before. The group comprising several aluminium producers is headed by embattled Century Aluminum, which posted a significant quarterly loss of $51.6 million last week and recently cut down production at its Kentucky plant. The coalition argues that China’s subsidization violates World Trade Organization rules. “As such, USTR should invoke its rights under the WTO and request...
AluSolutions 2016, the only free exhibition and conference addressing sustainability challenges in aluminium production and processing, has announced Dr Fiona Solomon, Executive Director of the Aluminium Stewardship Initiative(ASI), as a keynote speaker. Dr Solomon brings nearly 20 years of experience in sustainability and corporate social responsibility to her role at the ASI and will present on how the industry can address the environmental, social and governance aspects of the aluminium value chain. Other speakers will include a representative from European Aluminium, Melanie Williams, Graham Bruce from Taha International Corporation, as well as a representative from the Bureau for Middle East Recycling. With more speakers still to be announced, organiser Quartz Business Media is...
Lightweight metals leader Alcoa announced that it is taking decisive action to curtail uncompetitive smelting and refining capacity to ensure continued competitiveness amid prevailing market conditions. The company will reduce aluminum smelting capacity by 503,000 metric tons and alumina refining capacity by 1.2 million metric tons. Alcoa will begin the curtailments in the fourth quarter of 2015 and will complete them by the end of the first quarter of 2016. The reductions will further improve the cost position of the Upstream business and ensure competitiveness in a lower pricing environment, including a 30 percent drop in the Midwest transaction aluminum price year-to-date. Alcoa has been aggressively reshaping its Upstream portfolio as part of a successful multi-year strategy to...
Amid accusations made by the US trade associations and other market bodies that China might be violating international trade regulations and fair competition norms, the world’s largest aluminium producing country is yet again set to unleash fresh loads of aluminium onto the global market. This comes in the wake of the Chinese government offering lower power tariffs to the country’s dying smelters in an effort buoy the slowing economy. Electricity being the single most crucial factor in aluminium smelter operation is expected to lower the cost of production significantly thereby helping the producers to stay economically viable in the short to medium term. China is already producing excess aluminium and offloading it onto the world markets. This breather from the country’s top authorities...
Electricity is the lifeblood of aluminium production. Long - term certainty of supply and a competitive electricity price are crucial to unleash the growth potential of the industry in Europe. European Aluminium welcomes the planned reform of the EU Electricity Market Design as an opportunity to accelerate the transition towards a more decentralised, low-carbon and competitive electricity market in Europe. This should go hand in hand with the creation of a compensation scheme that lifts the burden of indirect carbon costs passed on to Europe’s Aluminium producers. Aluminium smelters offer great benefits to the power system, such as the ability to balance supply and demand. Their flexibility to reduce electricity consumption as needed contributes to grid stability and helps tackle...
National Aluminium Company Ltd. (Nalco) was earlier reported to have planned to invest US$2.80 billion to build an integrated aluminium roject in either Iran or Oman. In a recent update, the company sources divulged that the proposed 5 lakh tonne-per-year smelter, which will also include a captive power plant, will run on surplus alumina from Nalco's existing and proposed Indian refineries. The planned aluminium smelter will cater to the markets for value-added products, primarily from the automobile industries in South Asia, Southeast Asia, Europe and the US. The public sector company has free cash reserves of INR 17,000 crore; and this project has been conceived based on these strong financial credentials. As per the update, Nalco would consider various parameters for the captive power...
Century aluminium Co, controlled by Glencore Plc, said it will curtail one of three potlines at its Sebree, Kentucky, aluminium smelter by December 31, the company's third capacity reduction in two months as weak prices bite. The curtailment will reduce the 210,000 tonne-per-year plant's capacity by around 70,000 tonnes and comes just one week after it announced plans to close its 224,000-tonne Mount Holly, South Carolina, smelter by Dec. 31 if it does not receive a favorable power deal. Century blamed the need to close the Sebree potline on low aluminium prices due to Chinese overcapacity and rising exports, resulting in a sharp drop in aluminium futures and the premiums paid for physical delivery of the metal have fallen sharply, harming producers. In late August, it announced plans to...
Aluminium on London Metal Exchange (LME) will have little chance of a rally this week, SMM said last week, Friday. The US dollar will stay elevated on US Fed’s hawkish tone, and SHFE aluminium will remain in downward track, boding ill for LME aluminium. Also, LME aluminium has met strong resistance at the 5-day moving average. The metal on London exchange is expected to retest resistance at $1,488 per tonne, as it has completed a downtrend from the October 9 high of $1,646. The trend could be broken down into five small waves, signaling its completion. This explains why the metal could stabilise around support at $1,462, the 161.8 percent Fibonacci projection level of the trend. The consolidation above this support strongly suggests the formation of a bottom, which will be followed by a...
Aluminium prices were down 0.78 per cent to INR 95.30 per kg in futures trade today as investors reduced exposures amid weak global cues and sluggish demand in the domestic spot markets. At the Multi Commodity Exchange, aluminium for delivery in November eased by 75 paise, or 0.78 per cent, to INR 95.30 per kg, in a business turnover of 416 lots. Similarly, the metal for delivery in October was trading lower by 70 paise, or 0.74 per cent, at INR 93.90 per kg in 513 lots. Marketmen said the weakness in aluminium at futures trade was mostly in tune with a weak trend at London Metal Exchange (LME) as industrial metals weakened after hints of an interest rate hike in December by the US Federal Reserve boosted the dollar and diminishing commodities appeal.
A helping hand from the Chinese goverment to the slowing economy in the form of cheaper power tariffs may result in further plummeting of aluminum prices, worsening a glut that is already threatening aluminium producers worldwide. On-grid power tariffs in China may be reduced as soon as next month to benefit industrial users and bolster growth. The cut to the price the state grid pays to power generators for electricity would likely be passed on to consumers, according to the analysts. For smelters hooked up to state supplies, which account for a quarter of capacity, that could cut costs by 375 yuan ($59) a metric ton, they observed. Aluminum is the second-worst base-metal performer over the past year as supplies top demand and investors desert commodities, with benchmark prices in London...
Aluminum Corp of China (Chinalco) has delayed a planned shutdown of metal production at its Liancheng aluminium smelter after authorities agreed to offer electricity at a cheaper rate. Chinalco, China's biggest aluminium and alumina producer, had planned to shutdown its Gansu aluminium smelter two weeks ago due to high cost of production and low metal prices. But industry sources said, the local government and the state electricty authority have urged the aluminium manufacturer to keep producing, given the country's slowing growth scenario, and offered lower power tariffs so that it is easier to cope with the rising COP, which stands somewhere around 13,000 yuan a tonne. Nevertheless, the company would stop metal production, cheaper electricity or no electricity; but that would be...
Governor Nikki Haley, South Carolina, said Wednesday, October 28, that the state has done all it can to keep Century Aluminum from closing its Berkeley County smelter and laying off 600 workers as a contractual impasse between the company and its power provider enters its final weeks. “The main thing we can’t do is choose one business over another or do special favors for anyone,” Haley said during a visit to Goose Creek. Haley and state Commerce Secretary Bobby Hitt “pushed as hard as we could” to strike a deal with Century Aluminum, she said, “but we can’t go beyond what’s fair.” Century Aluminum said last week it will close its Mount Holly plant by the end of this year if state-owned utility Santee Cooper does not agree to a plan in which Century would buy its electricity from an...
Century Aluminum Company reported a net loss of $56.1 million ($0.65 per common share) for the third quarter of 2015. Results were negatively impacted by a $5.3 million charge ($0.06 per common share) for lower of cost or market inventory adjustments, a $0.4 million charge ($0.01 per common share) related to the closure at Ravenswood, a $1.4 million charge ($0.02 per common share) related to the labor disruption at Hawesville, a $2.9 million charge ($0.04 per common share) related to the partial curtailment at Hawesville, and a $1.2 million charge ($0.01 per common share) related to severance primarily associated with cost reductions. Results were positively impacted by an $0.8 million purchase accounting gain ($0.01 per common share) related to Mt. Holly. After consideration of these...
The Aluminum Association announced membership growth, additions to its board, and the election of a new Chairman on Thursday, October 29. In addition, the Association announced the winner of the 2015 Marlan A. Boultinghouse Award, the highest award given by the North American industry. The announcements were made during the Aluminum Association’s annual meeting - “Aluminum Country” - in Nashville, TN. “This is an exciting time for the North American aluminum industry with strong demand growth and domestic expansion,” said newly elected Association Chairman Garney Scott, President & CEO of Scepter, Inc. “But serious challenges remain and it will take the combined efforts of the membership, through the Aluminum Association, to seize the opportunity in North America.” Garney Scott, President...
Aluminium prices on London Metal Exchange (LME) may break support at $1,475 per tonne and slide to the next support at $1,462, to complete a downward wave (c). This is the third wave completed by LME aluminium of a three-wave cycle from the September 9 high of $1,655.50; it may eventually stand at around $1,462, the 161.8 percent projection level. The latest support at $1,475, the 150 percent level, could be transitory and will be broken in the short term. An increase over the October 27 high of $1,493.50 could be extended to the 123.6 percent projection level at $1,505.
AluSolutions 2016, the only free exhibition and conference addressing sustainability challenges in aluminium production and processing, has just announced two new feature areas. The AluSolutions exhibition will now include a ‘Lightweight Vehicle Zone’ and ‘Aluminium in Architecture Area’. The dedicated zones will offer companies the opportunity to display aluminium applications and highlight how the metal’s environmental benefits continue into the use-phase. The two-day exhibition, being held on 10-11 May 2016 at the Abu Dhabi National Exhibition Centre, will host equipment OEMs, plant suppliers, smelters and recyclers, while the conference will invite speakers from around the world to discuss growing sustainability across the industry, recycling targets, case studies, technological...
State-owned Emirates Global Aluminium (EGA) is in talks with banks to raise a $5 billion loan, four banking sources aware of the matter said on Wednesday, to refinance debt taken on for some of its projects. EGA, created by the merger of two state-owned aluminium companies Dubai Aluminium (Dubal) and Abu Dhabi's Emirates Aluminium (Emal), is jointly owned by Abu Dhabi investment fund Mubadala [MUDEV.UL] and the state company which holds Dubai's most high-profile assets, Investment Corporation of Dubai (ICD). The company is seeking funds to refinance loans taken for the Emal projects, the sources said. The $5.7 billion Emal Phase 1 project was commissioned in 2009 while the $4.5 billion phase two was commissioned in 2014. A significant part of the projects' funding was through bank loans...
Aluminium prices tumbled to six-year lows on Wednesday, October 28, as traders fretted about the likelihood of large surpluses this year and next and the lack of substantial output cuts to balance the market. Benchmark aluminium on the London Metal Exchange (LME) slumped to $US1460 a tonne in early trade, its lowest since June 2009. It later recovered to close at $US1484 on Tuesday. "Aluminium's fundamentals are extremely challenging, we haven't seen anyone really seriously cutting back production," observed an industry analyst. "Problem is they are all waiting for someone else to do the decent thing." A latest survey conducted earlier this month showed analysts on average expect the aluminium market to have a surplus of 815,000 tonnes this year. The range of forecasts was from 440,000...
