Upstream weekly recap: Alumina price surpasses the RMB 5000 mark; Metro Mining hits record Bauxite production in Q3 2024
This week has seen significant developments in the upstream sector of the aluminium industry, which includes bauxite, alumina, and primary aluminium. Notably, the average spot price for alumina in China surpassed RMB 5000 for the first time on Wednesday, settling at RMB 5,007 per tonne before rising further by RMB 49 to reach RMB 5,056 per tonne. In addition, Metro Mining Limited reported a remarkable operational update for the third quarter of 2024, achieving record bauxite production. The company shipped 2.13 million wet metric tonnes (WMT) during the quarter, representing a substantial increase of 50 per cent from Q2 2024 and a 32 per cent rise compared to Q3 2023. Meanwhile, Aluminium Corporation of China Limited (Chalco), the country's largest aluminium producer, disclosed its third-quarter financial results, revealing a 3.3 per cent year-on-year increase in net profit to RMB 2 billion (approximately US$280.4 million).
The average alumina spot price in China has maintained its growth trajectory by arriving at RMB 4,900 per tonne on Monday, October 28, followed by a growth of RMB 50 per tonne the next to halt at RMB 4,950 per tonne. As per the SMM analysis the price had unlocked a milestone on Wednesday by reaching RMB 5,007 per tonne and RMB 5056 per tonne on Thursday.
Read to know more: https://www.alcircle.com/news/alumina-price-in-shanghai-metals-market-towers-over-rmb-5k-as-week-closes-112426
Metro Mining Limited has released a remarkable third-quarter operational update for 2024, marking a record period in bauxite production. The company reported quarterly shipments of 2.13 million wet metric tonnes (WMT), reflecting a 50 per cent increase from Q2 2024 and a 32 per cent growth compared to Q3 2023.
To know more: https://www.alcircle.com/news/metro-mining-achieves-record-q3-shipments-50-growth-from-q2-2024-112401
China’s largest aluminium producer, Aluminium Corporation of China Limited (commonly known as Chalco), has reported its third-quarter fiscal results, showing a 3.3 per cent year-on-year increase in net profit to RMB 2 billion (US$280.4 million). Revenue for the quarter also rose 16 per cent year-on-year to RMB 63.06 billion (US$8 billion).
To know more: https://www.alcircle.com/news/chalcos-net-profit-in-9-months-heightens-68-y-o-y-but-still-fails-to-meet-citis-forecast-112404
A bauxite mining subsidiary of a major aluminium producer has recently announced the suspension of its bauxite export operations from Port Kamsar (GNKMR), though no official explanation has been provided. The country remains among the world's poorest despite Guinea’s abundant natural resources—including the world’s largest bauxite reserves, high-grade iron ore, and substantial diamond and gold deposits.
To know more: https://www.alcircle.com/news/will-guineas-bauxite-industry-mirror-indonesias-strategic-export-shift-112374
Professor Aaron Mike Oquaye, former Speaker of Ghana's Parliament, has urged leaders to leverage Africa's natural resources—such as bauxite reserves, timber, manganese, gold, diamonds, cocoa, and oil. He made this call at the Second General Assembly of the Conference of Speakers and Presidents of African Legislatures (CoSPAL) in Accra.
To know more: https://www.alcircle.com/news/oquaye-urges-african-leaders-to-explore-natural-resources-for-financial-independence-112379
Mining and aluminium giant Rio Tinto is now concentrating on launching its Simandou iron ore project in Guinea, with shipments expected to commence in 2025, according to reports. This ambitious project has taken years for Rio Tinto to bring to fruition, with an initial production rate projected at 120 million tonnes of ore annually. This translates to approximately 10 million tonnes of iron ore being loaded onto Capesize vessels in Guinea each month.
To know more: https://www.alcircle.com/press-release/is-simandou-bad-news-for-bauxite-112402
The Ministry of Mines, Government of India, has reportedly proposed a reduction in the benchmark price of bauxite used to determine the estimated value of resources and the premiums payable during auctions. This proposal comes in response to numerous complaints from mining companies, which argue that the formula currently used to calculate the average sale price (ASP) of bauxite—based on aluminium prices on the London Metal Exchange (LME)—results in an excessively high conversion rate.
Alumina trihydrate (ATH), or aluminium hydroxide with the chemical formula Al(OH)₃, holds significant market potential. This compound is produced during the refinement of bauxite through the Bayer process and is primarily recognized for its flame-retardant properties.
The European Union (EU) has been actively involved in the global race to secure critical minerals and rare earth elements. Despite facing fierce competition worldwide, the EU has persistently sought out these essential resources in every corner of the globe. However, the consequences of such acquisitions and their potential impact on the world present significant challenges, much like manoeuvring a net-zero-driven project through a series of obstacles.
To know more: https://www.alcircle.com/news/bauxite-s-secret-cache-can-eu-tap-into-rare-earth-elements-amidst-global-competition-112393
In September 2024, global alumina production fell to its lowest level in five months, with all major alumina-producing countries and regions reporting decreases in output. Despite this sequential decline and reaching a five-month low, global alumina production remained above 12 million tonnes.
On October 9, the Guangxi Branch of Chinalco held a commissioning ceremony for the first and second phases of its alumina pipeline dissolution transformation project. Tian Mingsheng, Party Secretary and General Manager of the Guangxi Branch and Chairman of Guangxi Hualei New Materials Co., Ltd., officially announced the project's launch. Ma Xiaozhong, Deputy General Manager of both the Guangxi Branch and Guangxi Hualei, presided over the ceremony.
To know more: https://www.alcircle.com/news/chinalcos-guangxi-branch-launches-phase-1-2-of-its-alumina-pipeline-dissolution-project-112406
Alcoa, an American industrial corporation and the world’s eighth-largest producer of aluminium, has reportedly expressed an optimistic outlook on the future demand for aluminium, citing its pivotal role in power grids, energy storage, and the development of solar panels to facilitate the transition to renewable energy.
Chinese anode producer Sunstone recently celebrated a significant contract win with U.S. aluminium giant Alcoa, a story shared widely in Chinese media, including Yicai. The report confirms the contract is for 240,000 tonnes of anodes destined for Alcoa's Canadian and Spanish plants. Based on standard yields, this equates to over 500,000 tonnes of aluminium production.
To know more: https://www.alcircle.com/press-release/chinese-anode-giant-sunstone-wins-key-order-from-alcoa-marks-strategic-win-112409
Rio Tinto's previously announced acquisition of Sumitomo Chemical Company's (SCC's) 20.64 per cent interest in New Zealand Aluminium Smelters (NZAS) was completed on November 1, 2024. NZAS owns and operates the Tiwai Point aluminium smelter in New Zealand.
As the global economy starts to rebound from recent disruptions, sectors are showing both resilience and lingering uncertainty. However, the U.S. economy faces a potential cyclical slowdown, with recession risks heightened by the upcoming U.S. elections and their implications for trade, fiscal, and foreign policy. In this context, the aluminium industry stands at a critical crossroads, shaped by domestic demand factors and wider geopolitical developments.
To know more: https://www.alcircle.com/news/navigating-uncertainty-us-elections-economic-shifts-and-the-aluminium-industry-112430
In a significant farewell, National Aluminium Company Limited (NALCO), India’s leading mining and metals powerhouse, announced the retirement of its esteemed Chairman and Managing Director, Shri Sridhar Patra, effective October 31, 2024. A respected leader in the industry, Shri Patra steps down after years of dedicated service, having spearheaded NALCO’s remarkable growth and leaving a lasting legacy that will continue to shape the company’s future.
To know more: https://www.alcircle.com/news/nalco-bids-farewell-to-cmd-sridhar-patra-as-he-retires-after-years-of-exemplary-service-112432
The traditional “September peak season” revitalized demand for China’s primary aluminium billets, enhancing operating performance and pushing production to new annual and historical highs. Despite fewer operating days in September compared to August, domestic primary aluminium billet production rose, fueled by the reopening of previously closed facilities and the launch of new projects, particularly in Xinjiang.
The Aluminium Association of India (AAI) has proposed increasing import duties and outlined a ₹3 lakh crore investment plan to boost growth in the aluminium sector. This proposal forms part of AAI’s pre-budget recommendations submitted to the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce.
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