Upstream weekly recap: European Aluminium applauds EU’s 16th sanctions package; Alcoa warns of severe job loss amid 25% tariff
This week has been highly eventful for the upstream aluminium industry, especially the primary aluminium sector, which has dominated the headlines. The industry is going through a rough time with news of sanctions and tariffs hitting the market. To begin with, the voice of the entire aluminium value chain in Europe (European Aluminium) welcomed the inclusion of primary aluminium in the EU's 16th sanctions package against Russia. The new sanctions cover key aluminium product categories, such as ingots, slabs, and billets, under the trade code HS 7601. On the other hand, Alcoa, a leading global aluminium producer, recently raised concerns that the proposed 25 per cent tariffs could result in over 100,000 job losses. These developments highlight the immense challenges the aluminium industry is currently facing. To know more about what kept the industry under the limelight, read below:
European Aluminium, representing the entire aluminium value chain in Europe, welcomes the inclusion of primary aluminium in the EU's 16th sanctions package against Russia. This package strengthens existing restrictions on Russian aluminium imports, fulfilling a longstanding industry request to extend sanctions to primary aluminium alongside previously targeted products.
To know more: https://www.alcircle.com/press-release/eu-expands-sanctions-on-russian-aluminium-industry-calls-for-closing-loopholes-113376
Alcoa, a leading global aluminium producer with major smelters in Canada, Australia, Iceland, and other locations, has voiced serious concerns over the potential loss of more than 100,000 jobs due to the Trump administration's proposed 25% tariff on all aluminium and steel imports.
To know more: https://www.alcircle.com/news/us-aluminium-and-steel-tariffs-to-clutch-away-over-100-000-jobs-across-the-industry-alcoa-113388
Last week, President Trump signed a proclamation reinforcing the Section 232 aluminium tariffs initially introduced in 2018 on national security grounds. While there are many aspects of this action that we support, one point remains essential: for the long-term growth of our industry and national security, it is vital to preserve tariff-free access to aluminium from Canada.
Aluminium Bahrain B.S.C. (Alba), the world’s largest single-site smelter, has announced Saudi Arabian Mining Company (Ma’aden) as its new strategic shareholder following Ma’aden’s acquisition of SABIC’s 20.62% stake in Alba. This approximately US$1 billion transaction marks a pivotal moment for Alba, strengthening its position as a global leader in the aluminium industry.
To know more: https://www.alcircle.com/press-release/alba-announces-maaden-as-a-major-shareholder-113382
The Aluminium Federation (ALFED) has launched the State of the Aluminium Industry Survey to create a detailed overview of the UK aluminium sector, uncover key growth opportunities, and strengthen strategic policy engagement with government and stakeholders. As the voice of the UK aluminium industry, ALFED is dedicated to representing the priorities of businesses across the entire value chain — from producers and processors to recyclers and end-users.
To know more: https://www.alcircle.com/press-release/alfed-launches-industry-wide-survey-to-shape-the-future-of-uk-aluminium-113422
Aluminium Bahrain B.S.C. (Alba), the world’s largest smelter outside of China, has announced its fourth-quarter and full-year 2024 results, showcasing remarkable financial growth alongside a record-high net finished production of 1,622,261 tonnes.
Century Aluminum Company, a leading global producer of primary aluminium with operations in the United States and Iceland, has reported a standout year ending December 31, 2024. The company achieved a five-year production high at its Sebree facility, maintained steady net sales, and increased net income — all despite rising energy costs and raw material prices.
Press Metal Aluminium Holdings Bhd, Southeast Asia’s largest aluminium smelter, has released its fourth-quarter and full-year 2024 results, reporting exceptional financial gains driven by rising aluminium prices on the LME and robust global demand.
The United States and Canada share more than just a border — they’ve forged a tightly connected aluminium supply chain that’s crucial to both economies. With U.S. aluminium production declining and energy costs rising, Canada’s role has become more essential than ever.
To know more: https://www.alcircle.com/news/feasibility-check-why-the-us-aluminium-industry-cant-afford-to-lose-canada-113385
The United States' unexpected decision to support Russia in blocking Ukraine’s draft resolution at the United Nations has sent shockwaves through the market today, February 25. This marks the first instance in three years since Russia’s invasion of Ukraine that the U.S. has aligned with Russia on such a critical issue.
January 2025 saw a 2.73% year-on-year increase in primary aluminium production, despite a slight month-on-month decline, according to data from the International Aluminium Institute. The annual growth was driven by nearly all major aluminium-producing regions, except North America and Oceania. However, monthly output dipped, with production falling by 1,000 tonnes in both Africa and North America.
Last week’s aluminium market was marked by dynamic pricing, impacting both aluminium itself and related industries. With downstream production picking up after the extended Chinese holiday, prices are showing distinctive trends. Growing optimism in the new-energy vehicle sector has further fuelled this momentum, driving price shifts for key primary commodities. Market participants are advised to keep a close watch on these evolving patterns.
To know more: https://www.alcircle.com/news/china-market-update-aluminium-derivatives-pricing-trend-decoded-113396
This week, shares of India’s top aluminium producers — Hindalco, NALCO, and Vedanta — declined for two consecutive sessions. On February 25, NALCO’s stock plunged by 10% over two trading days, while Vedanta and Hindalco saw losses of 5% to 7%, respectively. Other major players, like Jindal, also saw declines of up to 3% on the same day.
To know more: https://www.alcircle.com/news/india-trade-update-hindalco-nalco-vedanta-loses-stock-value-while-others-follow-suit-113399
Vedanta’s share price is projected to climb to INR 600 (US$6.87) following the group’s planned demerger, set for completion in the first quarter of FY2025-26. This target is expected to materialize, if not by year-end, then within the following two years.
To know more: https://www.alcircle.com/news/four-digit-profit-from-just-10-units-of-vedantas-shares-discover-the-mid-term-outlook-113414
Hindalco has unveiled plans to invest INR 15,000 crore (USD 1.81 billion) in Madhya Pradesh to boost its aluminium smelting capacity across existing and new sites. The announcement came during the Madhya Pradesh Global Investors Summit 2025 in Bhopal, following the signing of a Memorandum of Understanding (MoU) with the state government.
New Zealand Aluminium Smelter (NZAS) chief executive Chris Blenkiron announced on Tuesday, February 25, that the planned potline ramp-up at Tiwai will be postponed until August 31. This decision follows last year’s production expansion announcement and aims to ensure Meridian Energy can access 50MW of electricity during the winter months. As winter approaches, the Tiwai Point aluminium smelter is gearing up for what is typically a high-demand season.
To know more: https://www.alcircle.com/news/new-zealand-aluminium-smelter-to-delay-its-tiwai-potline-ramp-up-until-august25-113395
Despite Hillside Aluminium in South Africa’s KwaZulu-Natal being labeled as "high-carbon," South32 — a globally diversified mining and metals company — offsets this with the "low-carbon" premium status of its other operations, Brazil Aluminium and Mozal Aluminium, enhancing the company’s overall value.
To know more: https://www.alcircle.com/news/south-africas-largest-aluminium-smelter-targets-greener-future-with-decarbonisation-drive-113413
The demand for clean energy sources that don’t emit harmful greenhouse gases has become a top priority. While hydrogen appears to be a promising solution, it presents notable challenges — especially its high combustion temperature, which ranges from 600 to 1500 degrees Celsius.
To know more: https://www.alcircle.com/news/next-generation-coating-material-crafted-from-aluminium-nickel-unlocks-new-possibilities-113407
Bauxite and alumina updates
Following a transformative 2024 — marked by a 120% surge in alumina prices and significant supply challenges — the bauxite and alumina industry now faces pivotal questions about its future. How will the sector adapt, diversify, and grow to meet rising global demand?
The Western Australian government is under growing pressure to uphold its commitment to protecting Perth's drinking water after new revelations about potential contamination risks tied to Alcoa's mining operations on the city's outskirts. The U.S. mining giant has faced longstanding criticism for endangering water safety and failing to properly restore the Jarrah forest cleared at its bauxite mine sites.
To know more: https://www.alcircle.com/news/government-under-fire-over-alcoa-s-fresh-bout-of-water-supply-contamination-allegation-113417
Futures Market: In the night session, the most-traded alumina 2505 futures contract opened at RMB 3,400 per tonne, reaching a high of RMB 3,420 and a low of RMB 3,391. It closed at RMB 3,402 per tonne, up RMB 18 or 0.52%, with an open interest of 166,000 lots.
According to SMM data, China’s metallurgical-grade alumina production fell by 8.5% month-on-month in February 2025 (28 days) but rose 10.4% year-on-year. By February 28, the country’s metallurgical-grade alumina capacity reached approximately 105.02 million tonnes, with operating capacity increasing by 0.3% M-o-M and an operating rate of 86.1%.
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