Key highlights from the global aluminium industry, August 2024

In August 2024, the global aluminium industry experienced notable fluctuations in pricing, reflecting a complex interplay of market dynamics and economic factors. There was a moderate increase in aluminium prices on the LME and the SHFE over the month. This uptick can be attributed to ongoing supply chain constraints and a rise in demand across a few sectors. Despite these gains, market participants remain cautious, with volatility influenced by geopolitical uncertainties and shifting trade policies. As the industry navigates these challenges, stakeholders closely monitor price trends and market signals to strategise their next moves in this ever-evolving landscape.

This month was filled with many news stories that impacted the aluminium industry. Below are the highlights from the aluminium industry that made the month memorable:

EGA achieved milestone in carbon reduction with LNG-powered bauxite ship

Emirates Global Aluminium (EGA) announced it initiated a bauxite cargo shipment on August 5, 2024, from its subsidiary Guinea Alumina Corporation (GAC) using a Liquefied Natural Gas-fuelled capsize vessel. It is the world's first-of-a-kind bauxite shipment in a cleaner-energy ship en route to China. This move also marks a remarkable milestone achieved by EGA in line with its carbon emissions goal across operations because LNG-fuelled ships reduce up to 28 per cent of greenhouse gas emissions on a tank-to-wake basis compared to vessels using traditional marine bunker fuel. The global shipping industry generally accounts for more than 2 per cent of the world's greenhouse gas emissions. Read more….

Joko Widodo's final address highlighted resource nationalism as key to Indonesia's economic future

As Indonesian President Joko Widodo prepares to step down this October after a decade in power, his final State of the Nation address on August 16, 2024, underscored an essential element of his economic policy: resource nationalism. Throughout his tenure, Jokowi has sought to harness Indonesia's vast natural resources for domestic benefit. This stance has sparked support and controversy globally, significantly connecting Indonesia to the international community. One of the most notable aspects of Jokowi's policy has been the ban on the export of unprocessed mineral ores, beginning with nickel in 2020. This move aims to shift Indonesia from being a mere exporter of raw materials to becoming a hub for value-added processing, inviting international investors to participate in the country's growing smelting and processing industry. Despite its detractors, this strategy promises a more prosperous future for Indonesia. Read more….

China’s domestic alumina production surpassed 7 million tonnes in July 2024

According to the Shanghai Metals Market survey, China's alumina production continued to record an annual rise in July 2024, buoyed by increased operating rates in Shanxi, Henan, Hebei, and Guangxi. In July (31 days), China's metallurgical-grade alumina output was 7.173 million tonnes, registering a month-on-month rise of 4.84 per cent from 6.842 million tonnes and a year-on-year increase of 4.43 per cent. China's metallurgical-grade alumina production totalled 47.466 million tonnes from January to July, up 3.92 per cent Y-o-Y. The average daily output stood at 231,400 tonnes, an increase of 3,300 tonnes from 228,100 tonnes per day in June. At the end of July, China's metallurgical-grade alumina capacity stood at 100.6 million tonnes, with an operating capacity of 84.46 per cent and an operating rate of 83.5 per cent. Read more….

China imposed cap on renewable energy usage in aluminium production

According to a report published on August 2, China has limited the usage of renewable energy for aluminium production. Shandong province, China's biggest aluminium producer, is allowed to account for 21 per cent of the total energy usage. In comparison, Inner Mongolia and Yunnan provinces are eligible to use up to 29 per cent and 70 per cent, respectively. This move follows a drought-like situation in Yunnan because erratic rainfall hampered the hydroelectric power supply. In November 2023, Yunnan primary aluminium smelters were asked to reduce power consumption, leading to a production capacity cut of more than 1.1 million tonnes. Read more….

India recorded 1.2% growth in primary aluminium output for Q1

India has witnessed a continued increase in metals and minerals production during the first quarter of FY2024-25, following a record output level in FY2023-24, said the Ministry of Mines in a statement on Thursday, August 1. According to the data revealed by the Ministry of Mines, India’s primary aluminium production in the June quarter of FY2024-25 increased by 1.2 per cent year-on-year to 10.43 lakh tonnes from 10.28 lakh tonnes. With this hike, India has secured a significant global position as the second-largest aluminium producer. The rise in aluminium production indicates robust economic activity across industrial sectors like energy, infrastructure, building and construction, automotive, and machinery. In 2023, India accounted for 6 per cent of global production, churning out 4.1 million tonnes of primary aluminium. India is the second-largest producer and third-largest consumer of primary aluminium globally. Read more....

Primary aluminium production in the Americas recorded up by 4% in H1

Data revealed by the International Aluminium Institute indicates a year-on-year increase in both North and South America's primary aluminium production during the first half of 2024. Even amid occasional declines in some months, primary aluminium output in North America rose by 4.35 per cent, while South America saw an increase of 4.74 per cent by the end of H1 2024. In North America, primary aluminium production in the six months of 2024 amounted to 1.992 million tonnes versus 1.909 million tonnes during the corresponding period of the previous year. The output totalled 751,000 tonnes in South America compared to 717,000 tonnes a year ago. Read more....

Muted demand led to a 6% drop in European aluminium foil deliveries

The extended period of weak demand for aluminium has adversely affected both prices and metal deliveries. This trend is evident in European aluminium foil shipments, which totalled 217,800 tonnes in the first three months of 2024. According to the European Aluminium Foil Association, this shipment figure represents a year-on-year fall of 6 per cent compared to 231,700 tonnes. Europe is the second-largest consumer of aluminium foil globally, accounting for 15 per cent of the world's usage. China remains the largest, representing approximately 49.5 per cent of global consumption. The decline in shipments during Q1 2024 stemmed from a 3 per cent drop in demand. Read more….

Baosteel, Baowu Aluminum, and Kobe Steel forged strategic partnership to lead automotive aluminium sheet manufacturing

China’s Baoshan Iron and Steel (Baosteel) and Baowu Aluminum have partnered with Japan’s Kobe Steel to form a new joint venture in a significant move within the automotive materials sector. This collaboration aims to produce aluminium sheets specifically for the automotive industry. The automotive industry's demand for aluminium is expected to surge by 15-27 per cent, driven by the growing prevalence of electric vehicles (EVs). Compared to traditional internal combustion engine cars, plug-in hybrid and full battery electric vehicles utilise 25-27 per cent more aluminium, with a baseline of 160kg per vehicle in internal combustion engines. Under the agreement, Kobe Steel will hold a 50 per cent stake in the new entity, while Baosteel and Baowu Aluminum will jointly own the remaining 50 per cent. The precise ownership split between Baosteel and Baowu Aluminum has not been disclosed. Read more….

Aluminium demand in China’s NEV sector poised for double-digit increase by 2030

Increasing investments and developments in China’s new energy vehicle sector are expected to boost aluminium consumption to nearly 10 million tonnes by 2030, compared to 2 million tonnes in 2023. This prediction follows the reported rise in China’s domestic production of new energy vehicles to 940,000 units in May 2024, up 31.9 per cent from 712,660 units produced a year ago. In line with increased production, sales also grew in May this year by 33 per cent to 955,000 units versus 716,430 units. Thus, the market share of NEVs in China escalated to 39.5 per cent in May, out of total automobile sales amounting to 2.42 million units, according to the China Association of Automobile Manufacturers (CAAM). With the bullish forecast for China’s NEV production and sales, the domestic NEV share is estimated to account for 50 per cent of China’s automobile market by 2025 and 70 per cent by 2030. Considering NEVs’ requirement for lightweight, this phenomenon could potentially lead to significant demand growth for aluminium. Read more….

Alba and Daiki Aluminium partnered to establish sustainable aluminium dross processing facility in Bahrain

August 7, 2024, witnessed the establishment of a strategic partnership between the first aluminium smelter in the Middle East and Japan’s leading aluminium product manufacturer, following the signing of an agreement by Aluminium Bahrain B.S.C. and Daiki Aluminium Industry Company Ltd to establish a sustainable aluminium dross processing facility in the Kingdom of Bahrain. The new aluminium dross processing plant will employ state-of-the-art technologies to recover the lightweight metal while significantly reducing waste and carbon emissions. Read more….

Conclusion

The global aluminium industry is pivotal, marked by dynamic advancements and emerging trends. As we look ahead, the commitment to enhancing efficiency and environmental stewardship remains a central theme, promising a future where aluminium plays a crucial role in building a more sustainable and technologically advanced world.

Note: We are pleased to announce that the AL Circle website now includes CME (Futures) aluminium prices in addition to the previously available LME and SHFE aluminium prices. We invite you to explore this expanded offering in our price section for the most comprehensive and up-to-date aluminium pricing information.