Top Newsmakers for September 2021: Guinea’s mutinous military unit seizes power, suspends constitution; Aluminium industry predicts a further surge in price; China’s power shortage driving industries to dark, aluminium production suppresses
The month of September 2021 extracted a lot of exciting moments from the global aluminium industry. The London Metal Exchange (LME) aluminium benchmark price escalated to a new milestone of US$3,000 per tonne, the first time ever since 2008. The political turmoil in the West African nation Guinea, the world’s largest exporter of bauxite and with the production curb in China has triggered the LME aluminium price to a 13-year high. The bauxite price from Guinea climbed the highest almost in 18 months at top metals consumer market China, as buyers distressed about supply followed a coup in the country. The western Xinjiang region in China, the home to almost one-fifth of the country’s primary aluminium capacity, directed five major smelters last month to cut 10% monthly output levels for August-December.
The world’s second-largest producer of bauxite, Guinea’s unit of military seized power and suspended the constitution, destabilizing the West African nation, which is the global largest exporter of aluminium ore. On 5th September 2021, Colonel Mamady Doumbouya, the head of Guinea’s Special Forces announced the takeover on a state broadcasting platform and influenced the armed forces to back him. Guinea contests with Australia as China’s largest supplier of bauxite, the raw material used to make alumina and eventually the metal aluminium.
On 6th September 2021, the bauxite price from Guinea has reached the highest almost in 18 months at top metals consumer market China, as buyers distressed about supply followed a coup in the country. The West African nation Guinea is the world's second-largest producer of bauxite, keeping China behind. Asian Metal assessed Guinean bauxite for delivery to China at $50.50 a tonne, up by1% from 3rd September and the highest since 16th March 2020. The prices soared by around 16% so far in 2021.
To know more: https://www.alcircle.com/news/coup-in-guinea-shifts-bauxite-price-to-18-month-high-70290
On 16th September 2021, the Chief Minister of Odisha Naveen Patnaik virtually inaugurated Utkal Alumina refinery’s expansion of production capacity from 1.5 MTPA to 2 MTPA at Doraguda, Kashipur in Rayagada district. Aditya Birla Group, the parent company of Utkal Alumina has injected around INR 1,500 crore for the expansion of the refinery. The company foremost invested around INR 8,500 crore to set up the existing refinery in 1993.
To know more: https://www.alcircle.com/news/chief-minister-of-odisha-inaugurates-the-expansion-of-hindalcos-utkal-alumina-refinery-70385
The dethroning of President Alpha Condé can lead to a major fuss for Russian aluminium giant Rusal, the global leader of low-carbon aluminium producer, who owns Friguia alumina refinery, the largest in Guinea. Now, if the refinery is pressurized to cease operations, it would be big financial distress to Rusal, forcing the global aluminium prices to tower at a much higher level. Rusal is one of the world’s leading producers of aluminium and alumina, while it sells most of its output abroad.
To know more: https://www.alcircle.com/news/political-unrest-in-guinea-could-stir-fuss-at-rusals-friguia-alumina-refinery-70350
Hindalco Industries Limited has decreased its aluminium ingot and aluminium products prices with effect from Thursday, September 2, after increasing them for three consecutive times from August 24-28. From today, Hindalco is selling its aluminium ingot at INR 225,750 per tonne, down by INR 4,000 per tonne from INR 229,750 per tonne on August 28.
Electricity is an essentiality of human life and the world’s most populous country China is countering a power shortage. As of now, it is only known that Chinese aluminium smelters are curbing production, steel mills are closing down, while some cities are turning off street lights, as energy sectors are experiencing a lack of thermal coal. Notwithstanding, China’s power distress is feasibly much bigger and savage than it is envisioned. China is the world’s biggest consumer of coal with over 56% consuming capacity for producing energy to cater for the needs domestically.
To know more: https://www.alcircle.com/news/chinas-power-shortage-driving-industries-to-dark-aluminium-production-suppresses-70490
The LME aluminium benchmark price leapt to a new milestone of US$3,000 per tonne, the first time ever since 2008. Aluminium raw materials supply disruptions in Guinea coupled with production restrictions in China pushed the LME aluminium price to a 13-year high. However, both the LME aluminium cash (bid) price and LME official settlement price fell at 1450 GMT to as low as US$2,858 per tonne but closed the day higher at US$2,949 per tonne and US$2,950 per tonne, up 1.8 per cent from the previous day. The prices are likely to continue to grow, thanks to a rapid increase in China’s domestic alumina price and expected production cut at Yunnan Province during September-December.
The Scepter Group, a recognized leader in aluminium dross and scrap recycling, announced on Wednesday, September 15, that it signed a multi-year agreement with rolled products major Novelis to supply more than 200,000 tonnes of low carbon rolling slab with up to 95 per cent recycled content. The Scepter Group will produce the slab ingot at its facility at Waverly plant and supply it to Novelis’ rolling mill in Oswego, New York, and its Logan Aluminum joint venture mill in Russellville, Kentucky.
To know more: https://www.alcircle.com/news/scepter-group-to-supply-novelis-with-200-000-tonnes-of-low-carbon-aluminium-rolling-slab-70377
The escalation of copper price to a record level in 2021 is stirring buyers in a vitally segmented consumer market to consider economic substitutes, which reflects an early indication of an avenue that high prices forcefully can knock down demand. Daikin Industries, the Japanese multinational air conditioning manufacturing company headquartered in Osaka, which is also the world’s top equipment producer, plans to replace half of the copper in its units with aluminium by 2025.
To know more: https://www.alcircle.com/news/daikin-industries-plans-to-replace-half-of-the-copper-units-with-aluminium-70323
Africa is one of the largest and evolving nations with a population of 1.2 billion. According to IEA, by 2040 the population is expected to grow by 800 million to 2 billion, similar to the population rise in the U.S .and Europe. Being the fifth largest nation in terms of population and also with its growing mining force, it is difficult to believe that the continent produces only 1 per cent of the world’s secondary aluminium. Ramco Metals began recycling in Nigeria around 7 years ago and is also taking steps to build Africa into a sustainable powerhouse.
Grow with
AL Circle
