Upstream Weekly Recap: World’s H1 aluminium production grows as expected; EGA, first in the world to digitise metals quality analysis system on LME

This week, the primary aluminium sector was under a havoc media spotlight from the entire upstream aluminium industry, featuring many crucial events and updates. Besides the global aluminium prices reaching almost a four-month low, what made several round-ups on the internet were Emirates Global Aluminium becoming the first in the world to digitise quality analysis system on LME and Tiwai Point Aluminium Smelter to cut power usage by 185 megawatts due to electricity constraint.

This week, on July 25, the LME aluminium benchmark price closed at US$2,218.50 per tonne, reflecting a 5 per cent decline W-o-W and marking the lowest in almost the past four months. On the same day, China’s domestic A00 aluminium ingot price decreased by RMB 190 per tonne to settle at RMB 19,010 per tonne, but subsequently recovered the same amount on July 26 to amount to RMB 19,200 per tonne, down by 1.5 per cent from RMB 19,490 per tonne a week ago.

To know more: https://www.alcircle.com/news/lme-aluminium-price-plunges-by-us47-5-t-losing-4-98-w-o-w-shfe-price-edges-up-by-us20-t-111536

https://www.alcircle.com/news/a00-aluminium-ingot-price-recovers-rmb190-t-from-the-previous-days-loss-aluminium-alloy-prices-garner-rmb200-t-111538

This week also featured the world’s primary aluminium production in H1, which was found to be on track as per the projection of AL Circle in its “Global Aluminium Industry Outlook 2024” report. According to IAI data, the world’s primary aluminium production in H1 stood at 35.838 million tonnes, up by 3.89 per cent Y-o-Y, attributed to a record-breaking output in China. If the current growth trend persists, global primary aluminium production will meet the full-year forecast of 71.4 million tonnes at the end of 2024.

To know more: https://www.alcircle.com/news/world-s-primary-aluminium-production-exceeds-35-million-tonnes-in-h1-on-track-to-al-circle-s-2024-projection-111517

However, Africa’s production of primary aluminium saw a downfall in the first half of 2024, mainly attributed to reduced output at Mozal Aluminium. According to IAI data, Africa’s primary aluminium production in H1 totalled 766,000 tonnes, down by 2.8 per cent from 788,000 tonnes a year ago. In the March quarter, Mozal Aluminium’s primary aluminium production was 71,000 tonnes, down by 13 per cent Q-o-Q from 82,000 tonnes.

To know more: https://www.alcircle.com/news/h1-2024-africas-primary-aluminium-production-contracts-by-2-8-y-o-y-due-to-reduced-output-at-mozal-aluminium-111541

Norsk Hydro and RHI Magnesita announced their H1 financial results ended June 30, 2024. Norsk Hydro revealed a 7 per cent sequential increase in Q2 revenue to NOK 50,944 million versus NOK 47,545 million in Q1. However, it decreased Y-o-Y by 5 per cent from NOK 53,630 million. Hydro's total revenue in H1 2024 was NOK 98,490 million, down by 3.6 per cent from NOK 102,164 million in H1 2023.

To know more: https://www.alcircle.com/news/hydros-upstream-aluminium-business-with-a-100-hike-in-adjusted-ebitda-offsets-poor-performance-in-downstream-sector-111519

RHI Magnesita announced a 0.3 per cent drop in revenue, while Adjusted EBITDA decreased 5 per cent on the prior period to €190 million (H1 2023: €200 million).

To know more: https://www.alcircle.com/press-release/rhi-magnesita-2024-half-year-results-strong-cash-conversion-in-challenging-market-conditions-111534

The Tiwai Point Aluminium Smelter, owned by Rio Tinto and the Sumitomo Group, announced this week that it would reduce its power consumption by 185 megawatts, which is about 4 per cent of the country's energy usage, to help manage South Island hydro storage levels after recent low rainfall.

To know more: https://www.alcircle.com/news/tiwai-point-aluminium-smelter-to-reduce-power-usage-by-185-megawatts-to-combat-electricity-supply-constraint-111507

Emirates Global Aluminium, the largest premium aluminium producer in the world and the biggest industrial company in the United Arab Emirates outside oil and gas, has digitally linked its metals quality analysis system to the London Metal Exchange. EGA is the world's first company to do so, enabling the automation of the process of submitting analysis certificates.

To know more: https://www.alcircle.com/news/emirates-global-aluminium-becomes-the-first-in-the-world-to-digitise-quality-analysis-system-on-lme-111533

Intalco Aluminum LLC, a wholly owned subsidiary of Alcoa Corporation, the operator of the closed aluminium smelter in Ferndale, has agreed to a $5.25 million settlement with the U.S. Environmental Protection Agency (EPA). This settlement addresses violations of the Clean Air Act identified during a 2019 EPA inspection.

To know more: https://www.alcircle.com/news/intalco-aluminum-commits-5-25-million-to-enhance-environmental-safety-compliance-at-ferndale-111524

Jamaica’s bauxite production growth and China’s reduced alumina imports in June grabbed the headlines this week in the bauxite and alumina industries. The Planning Institute of Jamaica's 2023 Economic and Social Survey revealed the local bauxite sector almost doubled its output last year, significantly contributing to an 86.8 per cent growth in the mining and quarrying industry compared to 2022.

To know more: https://www.alcircle.com/news/planning-institute-of-jamaica-reports-major-growth-in-bauxite-production-111497

China's alumina imports in June decreased by 58.8 per cent M-o-M and 13.93 per cent Y-o-Y, amounting to 37,700 tonnes. From January to June, China's total alumina imports stood at 1.185 million tonnes, up 56.04 per cent from the corresponding period of the previous year.

To know more: https://www.alcircle.com/news/chinas-alumina-imports-in-june-reflect-a-slump-of-13-9-y-o-y-due-to-supply-cuts-in-the-overseas-market-111526