The upstream aluminium sector, encompassing bauxite, alumina, and primary aluminium) recorded some significant milestones this week in terms of production, trading, inventories, and market developments. Some of the key highlights of the week are: China’s 2-year high production, world’s primary aluminium production exceeding 6 million tonnes, Iran’s steady metal output in the first two months of FY2025, Vedanta’s strategic plans to face the EU’s CBAM tariff, Italy’s proposition to enhance procurement and reprocessing of critical raw materials, discovery of valuable minerals in the Malaysian state of Sarawak, and many more.
Datuk Amar Awang Tengah Ali Hasan, Deputy Premier of Sarawak, Malaysia, has disclosed that the state possesses valuable minerals estimated at RM1.25 trillion. This discovery positions Sarawak as a potential player in the mining industry, capable of generating substantial economic benefits. Among the high-value minerals identified in Sarawak are gold, silica, and bauxite, all of which are in high demand across various industries, promising to pave the way for economic growth in the region.
To know more: https://www.alcircle.com/news/sarawak-s-rich-mineral-resources-including-bauxite-promise-trillion-ringgit-windfall-111203
As part of a strategic shift from imported raw materials to domestic products, particularly from China, Italy has outlined a comprehensive action plan, such streamlining permitting procedure designed to accelerate the release of mining concessions. Italy estimates to domestically source 16 out of 34 raw materials deemed critical by the European Union, including lithium and bauxite.
To know more: https://www.alcircle.com/news/eu-critical-raw-materials-italy-anticipates-to-source-16-domestically-111220
In early June, accumulated inventory of alumina at aluminium smelters across China stood at 2.8815 million tonnes. While some smelters in the Northwest Chinese regions, such as Ningxia, Qinghai, Gansu, and Xinjiang, had lower in-plant alumina inventories due to considerable orders, some smelters had relatively stable inventories for sluggish buying sentiment.
To know more: https://www.alcircle.com/news/influence-of-orders-and-supply-on-alumina-inventory-at-chinese-smelters-111205
During January-May 2024, China witnessed a positive trend of aluminium raw material imports due to the growing demand for increased production of primary metal. According to China customs data, the country’s cumulative imports of alumina from January to May 2024 amounted to 1.1472 million tonnes, reflecting a surge of 60.33 per cent year-on-year. China’s bauxite imports during the same period amounted to 64.1288 million tonnes, an increase of nearly 6 per cent from 60.59 million tonnes a year ago.
In May 2024, China’s primary aluminium production reached a 2-year high of 3.65 million tonnes as smelters in Yunnan resumed operations due to replenished hydropower reserves because of heavy rains. Insights from Bloomberg Intelligence (BI), a trusted source in the financial industry, indicate that an additional 330,000 tonnes of capacity is expected to resume in Yunnan this month. With the resumption of other capacities in China, the country’s annual aluminium operating capacity is anticipated to reach 3.27 million tonnes by the end of June. This incessant rise in production is also expected to leave an impact on domestic aluminium prices, according to SMM.
To know more: https://www.alcircle.com/news/improved-hydropower-reserves-in-yunnan-drive-chinas-aluminium-production-to-new-high-111189
In May 2024, the world's primary aluminium production experienced a month-on-month increase of 3.86 per cent to reach 6.134 million tonnes, the highest in the past five months and up 3.44 per cent from 5.93 million tonnes a year ago. From January to May 2024, the world's primary aluminium production totalled 29.901 million tonnes, reflecting a hike of 4.05 per cent from 28.738 million tonnes during the corresponding period of the previous year.
According to the latest data revealed by the Iranian Mines and Mining Distribution Development and Renovation Organization (IMIDRO), Iran’s aluminium ingot production during the first two months of FY2024-2025 (March 20-May 21) saw a slight drop of 0.44 per cent year-on-year. From 112,767 tonnes in April and May 2023, Iran’s primary aluminium production grew to 112,273 tonnes this year.
The European Union’s Carbon Border Adjustment Mechanism (CBAM) tariff, designed to regulate the import of carbon-intensive products, is set to come into effect in January 2026. In preparation, the European Union has already begun requesting reports on the carbon emissions of goods exported to the EU. Vedanta Aluminium is filing reports on its Scope 1 emissions, which states that the company is progressively reducing greenhouse gas intensity through conscious efforts like including renewable energy in the power mix , expanding the usage of biofuels for smelting aluminium, and deploying India’s largest fleet of electric forklifts across their operations.
To know more: https://www.alcircle.com/news/indias-vedanta-aluminium-has-its-plan-ready-to-face-the-eus-cbam-challenge-111213
Rio Tinto will invest US$165 million (CA$226 million) in its Grande-Baie aluminium smelter to refurbish two anode baking furnaces that have reached the end of their useful life. The company will also carry out feasibility studies for the eventual replacement of the scrubbers and overhead bridge cranes at the anode production centre. The work to rebuild the concrete shell and refractory lining of the anode baking furnaces will be carried out over two years, in 2025 and 2026. The new equipment will ensure a competitive supply of anodes to the Grande-Baie and Laterrière plants for decades to come.
To know more: https://www.alcircle.com/press-release/rio-tinto-invests-to-maintain-anode-production-at-grande-baie-smelter-111209
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