Upstream weekly recap: Rio Tinto reports 8.6% surge in Q3 bauxite output; Alcoa reports robust financial output outpacing operational challenges
This week, the upstream sector of the aluminium industry, comprising bauxite, alumina, and primary aluminium, witnessed some important events. One of the notable events would be the alumina price exceeding the RMB 4500 mark, breaking all the records of the past thirteen years. The alumina prices have been on the rise incessantly since August. Apart from this, two major companies in the aluminium industry, Rio Tinto and Alcoa, announced their financial results for Q3. As per the reports, Rio Tinto's bauxite output reached 15.1 million tonnes, marking a 2.7 per cent increase quarter-on-quarter from 14.7 million tonnes and an 8.6 per cent rise year-on-year from 13.9 million tonnes. Alcoa reported a sharp rise in net income, climbing from $20 million in Q2 2024 to $90 million in Q3 2024, fuelled by a surge in alumina prices alongside stable raw material costs.
The alumina price has hit the roof, continuously increasing throughout the week. On Monday, October 14 the price had gained RMB 63 per tonne, followed by a surge of RMB 94 per tonne to halt at RMB 4,304 per tonne and RMB 4,398 per tonne. On October 16th the price had heightened by RMB 101 per tonne reaching RMB 4,499 per tonne. As per the SMM analysis the alumina price on 17th and 18th October resided at RMB 4,556 per tonne and RMB 4,607 per tonne.
To know more: https://www.alcircle.com/news/china-s-alumina-price-gains-another-50-rmb-trend-shows-continual-price-surge-112265
Rio Tinto, a leading global mining group, has announced its production and operational results for the third quarter of 2024, ending September 30. The company achieved several new milestones, including a significant boost in bauxite production.
On Wednesday, October 16, Alcoa Corporation, the world’s eighth-largest aluminium producer, announced its third-quarter results, which showed sequential increases in net income and Adjusted EBITDA despite declining production and shipments. Alcoa reported a sharp rise in net income, climbing from $20 million in Q2 2024 to $90 million in Q3 2024, fueled by a surge in alumina prices alongside stable raw material costs.
To know more: https://www.alcircle.com/news/alcoas-q3-net-income-marks-over-a-fourfold-growth-despite-weaker-operational-performance-112252
On October 11, 2024, Aluminium Bahrain (Alba), the world's largest single-site smelter, celebrated two significant safety milestones: reaching 25 million safe working hours without any on-site Lost Time Injuries (LTI) and completing its 8th consecutive summer without heat-related injuries or illnesses. These accomplishments were driven by additional proactive measures, including providing cooling cloths to help employees and contractors regulate body temperature, as well as running department-specific awareness campaigns.
Aluminium Bahrain B.S.C. (Alba) and Alcoa Corporation, based in the United States, have strengthened their long-standing partnership by signing a new strategic agreement. Under this renewed contract, Alcoa will supply Alba with up to 16.5 million tonnes of smelter-grade alumina over a ten-year period, beginning in 2026.
To know more: https://www.alcircle.com/news/alba-alcoa-bond-strengthens-with-a-new-long-term-alumina-supply-contract-112238
In September 2024, China's production of metallurgical-grade alumina saw a month-on-month decline of 4.27 per cent from its peak. However, on a year-on-year basis, output rose by 2.69 per cent, reaching 6.732 million tonnes.
To know more: https://www.alcircle.com/news/chinas-alumina-production-in-september-retreats-standing-below-7-million-tonnes-112222
Konstelec Engineers Limited (KEL), an engineering, procurement, and construction company, has secured a significant contract worth INR 39.63 crores from the National Aluminium Company (NALCO). The project is to be completed within 12 months from the Letter of Award (LoA) date.
To know more: https://www.alcircle.com/news/kel-bags-a-whopping-inr-39-crores-electrical-project-from-nalco-112225
Cadoux Limited, a prominent producer of high-quality critical minerals for electric vehicles and advanced technology applications, has secured an $848,880 R&D tax incentive offset. This payment supports its ongoing critical mineral projects aimed at innovating process design for the production of high-purity alumina, as well as its Minhub strategy for downstream rare earth production in Darwin.
To know more: https://www.alcircle.com/news/cadoux-ltd-gets-a-lumpsum-tax-incentive-payment-for-hpa-production-process-design-112232
Monadelphous, a leading Australian engineering group, has announced new contracts and extensions worth approximately A$160 million (US$106.99 million). The company has secured two one-year extensions for fixed plant maintenance services and sustaining capital projects at Rio Tinto’s iron ore operations in the Pilbara region of Western Australia.
Since the start of this year, Shanxi Aluminum Industry has steadily strengthened its technical management system and production standards for alumina. The company has actively implemented cost-reduction initiatives in research and development, resulting in notable improvements in key technical performance and consumption metrics.
ALRO, a leading European integrated aluminium producer, is expanding its presence in the North American market. The company has secured several contracts set for delivery early next year. Although Chinese manufacturers have dominated this market for years, ALRO, a well-established name in the region, has begun reconnecting with former clients. This announcement was made during Aluminium 2024, held in Düsseldorf, Germany, where over 800 exhibitors and partners from 50 countries took part.
To know more: https://www.alcircle.com/news/alro-renews-business-relations-in-the-north-american-market-with-a-series-of-contracts-112219
On October 16, 2024, Alcoa Corporation and IGNIS Equity Holdings, SL (IGNIS EQT), the majority shareholder of the IGNIS Group of Companies, a vertically integrated energy company in Spain, announced they are moving forward with a strategic cooperation agreement. This partnership aims to support the continued operation of Alcoa’s San Ciprián facilities.
Alcoa Corporation is pleased to announce the appointment of Gaby Poirier as President of Alcoa Canada and Vice President (VP) of Global Transformation. In addition to these new responsibilities, Mr. Poirier will continue serving as Regional Vice President of North America Operations and will represent Alcoa on the Board of the Aluminium Association of Canada.
To know more: https://www.alcircle.com/news/alcoa-canada-welcomes-gaby-poirier-as-the-president-and-global-transformation-vp-112267
The United States’ domestic primary aluminium production increased in July 2024 to rebound to the level of output achieved in May. Compared to the production volume in June at 55,000 tonnes, the United States output in July gained 2,000 tonnes M-o-M, according to the latest data from the US Geological Survey.
In September 2024, China's aluminium production rose by 1.45% compared to the previous year, in line with the projections from the Shanghai Metal Market. The resumption of operations in Sichuan and Guizhou following technical upgrades contributed to this year-on-year increase in production.
As the global economy recovers from the COVID-19 recession, demand for aluminium is expected to soar, with the International Aluminium Institute forecasting a 40% increase by 2030, which will require an additional 33 million tonnes of annual production. Karl Ágúst Matthíasson, co-founder and CEO of the Icelandic aluminium analysis firm DTE, has shared his insights on the aluminium industry's outlook for the coming year.
Hydro Energi AS has signed a long-term power purchase agreement (PPA) with Skellefteå Kraft AB to supply 2 TWh of renewable energy to Hydro's aluminium plants in Norway from 2025 to 2032. This agreement guarantees Hydro access to 2 TWh from Skellefteå Kraft's SE2 portfolio over the next eight years, supporting the operations of the company's aluminium smelters in Norway.
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