Key highlights from the global aluminium industry, September 2024

In September 2024, the global aluminium industry witnessed significant developments across production, sustainability, and market dynamics. Aluminium producers continued to push for greener technologies, as the global primary aluminium producers are focusing on expanding their low-carbon aluminium portfolios, while recycling initiatives gained traction worldwide, particularly in Europe and North America. China, the world's largest aluminium producer, reported steady output growth, though facing challenges with energy restrictions and environmental regulations. Meanwhile, demand for aluminium remained steady in the automotive and packaging sectors, driven by the growing emphasis on lightweighting and circular economy practices. Trade tensions have shaped market conditions, alerting stakeholders to upcoming shifts in global supply chains and pricing patterns as a result of the geopolitical crisis.

As reported by FOCUSECONOMICS Alumina prices averaged USD 529 per tonne in September, up 6.3 per cent from August. On 30 September, the commodity traded at USD 550 per tonne, up 7.1 per cent from 30 August. Prices extended their gains in September, as Chinese aluminium output remained around record-high levels in August, boding well for alumina demand.

Source: FOCUSECONOMICS

The deployment of stimulus policies in the country was an additional tailwind. Meanwhile, supply remained tight due to past output cuts in several Australian alumina refineries. Below are the highlights from the aluminium industry that made the month memorable:

Versalux adopted Capral’s low-carbon aluminium LocAl^®, setting a unique sustainability goal in the lighting industry

Versalux, a pioneer in bringing state-of-the-art lighting systems to the Australian market, is scaling up its sustainability drive by adopting locally sourced low-carbon aluminium from Capral Aluminium, Australia's largest extruder and distributor of industry-leading aluminium products. Embracing Capral's low-carbon aluminium LocAl^® represents Versalux's commitment to environmental stewardship and decarbonising commercial buildings to combat climate change. In addition, this move also sets a positive example for the lighting industry in terms of working towards producing sustainable products. Read more .....

China’s bauxite imports soared to a record high, buoyed by 14.6% hike in Guinea’s supply

According to the General Administration of Customs, China's bauxite imports reached a historically high level for July 2024, with a month-on-month increase of 12.49 per cent and a year-on-year hike of 16.50 per cent. The import volume stood at 15.0007 million tonnes in July, compared to 13.3348 million tonnes a month ago. In June, the import volume was down by 1.58 per cent M-o-M, according to Customs data. From January to July 2024, China's total bauxite imports amounted to 92.3514 million tonnes, reflecting an annual increase of 8.7 per cent. Read more....

Alumina price upswing complicated aluminium market dynamics, warns Trafigura

The Trafigura Group, a key player in the commodity market, asserts that the surge in alumina prices significantly reshapes the outlook for aluminium prices. The price of alumina—derived from mined bauxite and used in aluminium smelting—skyrocketed by 50 per cent in 2024, reaching its highest level since March 2022. This sharp increase has been fuelled by production disruptions at alumina refineries and rising demand from aluminium smelters. Despite this, aluminium prices on the London Metal Exchange have remained relatively stagnant year-to-date. However, the escalating cost of alumina is placing significant financial pressure on smelters that don't have their own supply, potentially straining the broader industry. Read more....

President Joko Widodo inaugurated new alumina refinery, boosting Indonesia’s mineral processing industry

Indonesia's President Joko Widodo has inaugurated a $941 million smelter-grade alumina refinery operated by state miner Aneka Tambang (Antam) and state-owned aluminium producer Inalum in the West Kalimantan province. The refinery boasts a production capacity of 1 million metric tonnes of alumina annually, requiring 3.3 million tonnes of bauxite as input. Indonesia, rich in natural resources, is focused on strengthening its domestic mineral processing industry rather than exporting raw materials. Read more....

Vedanta Aluminium unveiled two new products for high-precision use in the power sector

Vedanta Aluminium, a business of Vedanta Limited and India's largest aluminium producer, has reportedly launched two new ranges of wire rods at PowerEdge 2024. One is AL59 Ingot, and the other is an electrical conductor (EC) grade wire rod. The AL59 Ingot is ideal for remelting as it offers superior electrical conductivity, while the EC-grade wire rod is suitable for winding strip applications with a balance of strength and formability. These products are made for high-precision use, such as fine drawing, conforming, and enamelling in transformer and winding applications. Read more....

China expanded carbon trading market to aluminium, steel, and cement to curb industrial pollution

At the opening ceremony of the 2024 Global Energy Transformation Conference on September 7, Huang Runqiu, Minister of Ecology and Environment, emphasised the need to accelerate green and low-carbon development in China. By the end of the year, key emission industries, including aluminium, steel and cement, will be integrated into the national carbon emissions trading system alongside the power industry. The announcement was a warning sign to the aluminium, steel and cement sectors to foster green productivity, proactively address climate change, and strengthen global climate governance. Huang also highlighted efforts to enhance the carbon market, expanding its industry coverage, diversifying trading options, and improving the national voluntary greenhouse gas emission reduction trading market. Read more....

European aluminium foil shipments rebounded in Q2 2024 by 6.6% Y-o-Y, counterbalancing Q1 drop

Aluminium foil shipments in Europe recovered during the second quarter of 2024, recording a 6.6 per cent rise year-on-year and a 4.2 per cent increase quarter-on-quarter, found the European Aluminium Foil Association (EAFA). In the first quarter, the shipments suffered a loss of 6 per cent annually, coming in at 217,800 tonnes, which grew over a quarter to 227,000 tonnes to meet the demand growth of almost 10 per cent. The increase in Q2 shipments was primarily backed by thinner gauges, which are mainly used for flexible packaging and household foils. The shipments of thinner gauges saw the most substantial gains, growing by more than 8 per cent from the corresponding period of 2023. The shipments of thicker gauges, used for semi-rigid containers, technical or other applications, saw a relatively modest rise of 4 per cent. Read more....

Ramkrishna Forgings ventured into aluminium forging, targeting the EV sector

India’s Ramkrishna Forgings Ltd has announced its strategic entry into the aluminium forging sector, with plans to establish its first facility in Jamshedpur, Jharkhand. The company's board has approved an investment of INR 57.5 crore for the new facility, which is set to focus primarily on the electric vehicle (EV) market. The plant will have an annual production capacity of 3,000 tonnes and is expected to be operational by the second quarter of the 2025-26 fiscal year. This move aligns with Ramkrishna Forgings' commitment to vehicle lightweighting, a crucial factor in enhancing performance, improving fuel efficiency, and reducing the environmental impact of modern vehicles. According to a senior official, once the facility reaches full capacity, it is projected to contribute an additional INR 175 crore to the company's annual revenue. Read more....

Azerbaijan and Uzbekistan collaborated on a new aluminium radiator production project

According to sources familiar with the matter, Azerbaijan and Uzbekistan collaborated on a new project to produce aluminium radiators. The project is slated for development within the Free Economic Zone of Alat in Azerbaijan, with the participation of Uzbekistan's trustworthy and responsible manufacturer investing approximately $10 million into the venture. The enterprise has one of the largest computer-integrated manufacturing facilities in Central Asia. Uzbekistan is a leading producer of electrical products, including transformers, cables, wires, electronics, and household appliances. Its exports exceed $1 billion annually. The country's major export markets include the CIS, Eastern Europe, and Southeast Asia. Read more....

Hydro commissioned new aluminium recycling plant in Szekesfehervar, Hungary

Hydro announced commissioning a new aluminium recycling plant in Szekesfehervar, Hungary, with an annual capacity of 90,000 tonnes. The plant will produce recycled aluminium products to meet the growing demand for secondary metals in the automotive sector. Initially, the recycling plant will begin by recycling 15,000 tonnes of post-consumer scrap annually and gradually increase the output to be in line with customers’ demands. The plant is strategically located next to Hydro’s aluminium extrusion plant in Szekesfehervar so that the production scraps that are naturally produced during extrusion and fabrication processes can be directed straight into the melting furnace in the new recycling facility for the re-creation of extruded aluminium into new car parts. Read more....

Conclusion

The month marked another pivotal phase for the global aluminium industry. From significant investments in recycling infrastructure to innovations in low-carbon production, the sector continued to push forward with its sustainability agenda. Emerging market trends, such as increasing demand for aluminium in electric vehicles and renewable energy applications, highlighted the industry's evolving role in the global green transition. As aluminium producers and manufacturers adapt to changing consumer preferences and stricter environmental regulations, the industry's commitment to innovation and circularity will be critical in shaping its future trajectory.