Upstream Weekly Recap: Hindalco, Alba & NALCO report strong financial performance
Aluminium is a vital element of the global economy, and the growing demand for green metal underscores its enduring importance. Despite challenges and occasional disruptions, the market's need for sustainable aluminium continues to thrive. Significant developments have occurred in the upstream aluminium sector, which includes bauxite, alumina, and primary aluminium production.
Top companies like Hindalco, Alba and NALCO released their financial results, reflecting significant growths. To being with Hindalco Industries Limited, the flagship metals company of the Aditya Birla Group and one of India's largest aluminium producers, reported its second-quarter results for the fiscal year 2024-25, showcasing a 7.45 per cent year-on-year increase in revenue from operations. Aluminium Bahrain B.S.C. (Alba) has announced a significant twofold increase in its Q3 profit for the calendar year ending December 31, 2024. The company reported a 215% year-over-year surge, with profits for the September quarter reaching BD54.5 million (US$145 million), compared to BD17.3 million (US$46 million) in Q3 2023. National Aluminium Company Limited (NALCO), a Navratna CPSE under the Ministry of Mines, has reported its fiscal results for the second quarter of FY2024-25, showcasing a remarkable fourfold increase in net profit.
Hindalco Industries Limited, the metals flagship of the Aditya Birla Group and one of India's leading aluminium manufacturers, has released its second-quarter results for FY2024-25. The company reported a 7.45 per cent year-over-year increase in revenue from operations, rising from INR 54,169 crore (US$6.418 million) in Q2 FY2024 to INR 58,203 crore (US$6.896 million) in Q2 FY2025.
Aluminium Bahrain B.S.C. (Alba) reported a twofold increase in its Q3 profit for the calendar year ending December 31, 2024. The company's profit for the September quarter surged by 215 per cent year-over-year, reaching BD54.5 million (US$145 million), compared to BD17.3 million (US$46 million) in Q3 2023.
To know more: https://www.alcircle.com/news/alba-sees-a-twofold-growth-in-q3-profit-on-higher-aluminium-prices-and-sales-volume-112541
National Aluminium Company Limited (NALCO), the Navratna CPSE under the Ministry of Mines, has announced the second quarter fiscal results for FY2024-25, wherein it has posted a fourfold growth in net profit. From INR 206 crore (US$24.4 million) in Q2 FY2024-23, the company’s net profit this year increased to INR 1062 crore (US$125.7 million), up by 415 per cent Y-o-Y.
To know more: https://www.alcircle.com/news/nalco-posts-stellar-performance-for-q2-fy2025-with-net-profit-growing-415-y-o-y-112556
Egyptalum, the Aluminium Co. of Egypt and a subsidiary of the Metallurgical Industries Company has reported its financial results for the first quarter of FY2024-25, which concluded on September 30. The company showcased a remarkable net profit and revenue surge during this period.
ASX-listed Lindian Resources Ltd, an Australian company with a portfolio of high-grade bauxite assets in Africa, has signed binding agreements with Enterprise Generale d’Entretien & Construction and Lancinet Dabo. These agreements grant a 10-year lease and operational rights for the Woula Bauxite Project in Guinea, West Africa, ensuring Lindian a steady passive annual royalty stream.
On November 7, 2024, Alcoa declared force majeure on bauxite shipments from its Juruti mine in Brazil after a vessel became stranded in the channel near the port, blocking transportation routes. This disruption substantially strains global alumina supplies, which face challenges due to limited production capacity.
The Federal Government has brokered a $3.5 billion agreement between BFI Group and China National Chemical Engineering Corporation (CNCEC) to revitalize the Aluminium Smelter Company of Nigeria (ALSCON) located in Ikot Abasi, Akwa Ibom State. Signed on Monday, November 11, this agreement aims to restart operations at the ALSCON plant.
To know more: https://www.alcircle.com/news/nigeria-s-alscon-to-resume-operations-as-bfi-cncec-forge-3-5-billion-partnership-112531
On November 12, 2024, the Forces Vives coalition, comprising Guinean opposition groups, civil society organizations, and activists, called for establishing civilian rule by January 1, 2025. The junta, which took power in a 2021 coup, had originally proposed a two-year transition to elections, beginning in 2022, following discussions with the Economic Community of West African States (ECOWAS).
In 2024, Ukraine increased its imports of aluminium ore and bauxite concentrate by 46.8% year-on-year from January to October. The total imports for the period reached an impressive 19,842 thousand tonnes. According to a report from the State Customs Service (SCS), the monetary value of bauxite imports also rose by 50.9 per cent, amounting to USD 2.681 million during the same timeframe.
To know more: https://www.alcircle.com/news/ukraines-bauxite-import-amidst-geopolitical-crises-elevates-with-time-but-why-112560
China's reliance on imported bauxite is crucial in its leading position in alumina and primary aluminium production. The vast amount of raw material needed to sustain this dominance cannot be sourced solely from domestic reserves. As a result, any disruption in bauxite supply has a significant ripple effect across the entire aluminium production supply chain, highlighting the severity of the issue.
In a significant ruling, the Chhattisgarh High Court in India has overturned the Korba Collector's order, which imposed a substantial royalty of INR 863.18 lakh (USD 1.04 million) on Bharat Aluminium Company (BALCO) Limited for vanadium sludge. The Single Bench, led by Justice Bibhu Datta Guru, deemed the order legally unsustainable, pointing to an inadequate examination of both the legal and factual aspects of the case.
To know more: https://www.alcircle.com/news/court-rules-in-favour-of-balco-says-vanadium-sludge-exempt-from-royalty-112550
The average alumina spot price in China has maintained its growth trajectory since September. The price on November 11 settled at RMB 5,441 per tonne followed by a growth of RMB 49 per tonne the next day to settle at RMB 5,490 per tonne. As per the SMM data, the price on Wednesday hiked by RMB 39 per tonne to dock at RMB 5,529 per tonne. The alumina price on November 24th settled at RMB 5,567 per tonne and RMB 5,600 per tonne on Friday.
IB2, a pioneer in the aluminium industry, has secured an impressive €100 million investment from a consortium of financial and industrial investors. This substantial funding will be dedicated to advancing sustainable alumina technology, further reinforcing IB2's leadership in the industry.
Ali Al Baqali, the CEO of Aluminium Bahrain B.S.C. (Alba), reportedly expressed in an interview with Mubaseher Info his strong conviction that the company is on track to become one of the world's leading aluminium producers, with plans to expand its reach into markets beyond Asia.
To know more: https://www.alcircle.com/news/albas-market-focus-is-not-limited-to-asia-confirms-ali-al-baqali-112530
On November 13, 2024, an industry group noted that greater use of aluminium and recycled copper could help China manage its limited copper resources. This recommendation comes as Chinese smelters face profit difficulties due to restricted supplies of copper concentrate.
To know more: https://www.alcircle.com/news/aluminium-and-recycled-copper-china-s-strategy-to-address-copper-scarcity-112547
The Indian aluminium industry has once again urged the government to increase import duties on primary and downstream aluminium, as well as raise customs duty on aluminium scrap to limit the influx of low-quality scrap into the country.
To know more: https://www.alcircle.com/news/indian-aluminium-industry-urges-again-for-higher-import-duty-will-the-government-pay-ears-112548
On Friday, November 15, China’s finance ministry announced its decision to reduce or eliminate export tax concessions for various commodities, including aluminium. According to the report, this measure will take effect on December 1, 2024.
On November 10, Iran's state-run metals and mining company IMIDRO reported that the combined aluminium ingot output from the country's four main smelters—South Aluminum Corporation, IRALCO, Almahdi Aluminium Company, and Iran Alumina Company—reached 352,423 tonnes during the first seven months through October 21. In comparison, production during the same period in 2023 was slightly higher at 367,091 tonnes, marking a difference of 14,668 tonnes.
To know more: https://www.alcircle.com/news/iran-witnesses-marginal-drop-in-aluminium-production-from-seven-months-to-end-of-october-112519
Gautam Adani's Adani Group has announced an investment of over US$5 billion to establish aluminium and steel businesses and increase copper production in India. This marks the group's second major investment in the metal industry, following its first investment of US$5.2 billion in 2022 to develop an alumina refinery in the eastern Indian state of Odisha.
China's aluminium production in October 2024 (31 calendar days) saw a year-on-year increase of 1.69 per cent and a month-on-month rise of 3.58 per cent, driven by the return of capacities to operation in early October following technical renovations. However, delays in the resumption of operations at some smelters partially offset the country's monthly output, according to the Shanghai Metals Market.
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