Upstream weekly recap: Unprecedented alumina price growth is transforming market dynamics; China bauxite imports reach a new high
Currently, if anything is grabbing the maximum attention in the upstream aluminium sector, it is the unprecedented price surge in China's alumina prices. Both domestic and imported prices have skyrocketed over the week, transforming the market dynamics and raising concerns among primary aluminium producers about escalating production costs.
According to the Shanghai Metals Market survey, China's domestic average alumina price has skyrocketed by RMB 1,035 per tonne on a year-on-year comparison, reaching RMB 3,968 per tonne as of September 13. The significant growth phenomenon primarily started in late August on account of excessive demand due to increasing primary aluminium production, coupled with production disruption of the ore due to bauxite supply constraints.
The imported alumina FOB price has also been steadily rallying to reach a new high of US$545 per tonne, up by 59 per cent year-on-year.
The Trafigura Group, a key player in the commodity market, also cautioned this week that the unexpected price surge in alumina could reshape the outlook for aluminium prices. According to their observation, alumina prices skyrocketed by 50 per cent in 2024, reaching their highest level since March 2022. According to Trafigura, this surge is raising concerns about the long-term stability of aluminium production costs.
To know more: https://www.alcircle.com/news/alumina-price-upswing-complicates-aluminium-market-dynamics-warns-trafigura-111967
Besides the price update, news on a fatal accident at an alumina refinery owned by Maa Kudargarhi Group in Chhattisgarh's Surguja district created several rounds on the internet. A hopper, used to store fuel like coal or rice husk in large quantities, collapsed on ten men and took away the lives of four of them.
To know more: https://www.alcircle.com/news/a-fatal-accident-at-a-chhattisgarh-alumina-refinery-kills-four-workers-111933
There have been some major updates in the bauxite industry as well, such as China’s bauxite imports soared to a record high in July, recording a M-o-M increase of 12.49 per cent and a Y-o-Y hike of 16.50 per cent. The major contribution to the import volume came from Guinea, accounting for 72.33 per cent of the total import, followed by Australia, Turkey, Laos, Malaysia, and many others.
To know more: https://www.alcircle.com/news/chinas-bauxite-imports-soar-to-a-record-high-buoyed-by-14-6-hike-in-guineas-supply-111973
The Ghana Integrated Aluminium Development, popularly known as GIADEC, has announced its keen interest in expanding the country’s bauxite production and enhancing its capacity in line with the growing demand for primary aluminium raw materials. The company has added two new hills to mine bauxite and meet the most significant volume that GIADEC needs for the integrated aluminium project.
To know more: https://www.alcircle.com/news/giadec-adds-two-new-hills-to-enhance-bauxite-mining-capacity-111939
Coming to the primary aluminium industry, Vedanta Limited stole the limelight this week with two major updates. One was the update of demerger process and the other was the launch of two new products at PowerEdge 2024. Vedanta Limited’s Chairman Anil Agarwal updated demerger process progressed and expected to complete by the end of FY204-25.
To know more: https://www.alcircle.com/news/vedanta-reports-progress-in-its-demerger-having-received-significant-approval-from-nclt-111930
Vedanta Aluminium, a business of Vedanta Limited launched two new products - AL59 Ingot and an electrical conductor (EC) grade wire rod, ideal for high-precision use in the automotive sector.
Another key update from Indian primary aluminium sector was the anticipation of Shyam Metalics for a significant growth through FY2029 based on strategic expansions in product lines and advanced technology integration into operations. The company expects that its entry into the aluminium and stainless-steel business will also contribute to the anticipated growth as it continues to move up the value chain.
According to a recent survey report from the Shanghai Metals Market, China’s primary aluminium production remained steady in August, growing marginally by 0.16 per cent M-o-M to 3.689 million tonnes. The operating capacity also increased from 43.42 million tonnes to 43.49 million.
Share of Russian aluminium stocks in LME-approved warehouses further increased in August to 67 per cent from 65 per cent in July. The share of Indian stocks, on the other hand, decreased to 31 per cent from 33 per cent in the previous month.
To know more: https://www.alcircle.com/news/russian-aluminium-stocks-rise-to-67-in-lme-warehouses-indian-share-declines-111952
Press Metal Aluminium Holdings Bhd, a Malaysia-headquartered integrated aluminium producer, reported that its smelter in Samalaju Industrial Park caught fire. The accident broke out at the Phase 3 smelter, affecting 100 out of the 300 pots.
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