COMMENT :
Global aluminium revival expected from 2010
Globally, the demand for aluminium is projected to fall by around 7% in 2009 on account of subdued conditions in the key user industries. However, China is projected to maintain the consumption levels of 2008 mainly due to the fiscal stimulus package that is likely to support its ailing economic growth. The revival in the demand for the metal is expected to start from 2010 globally. As per Alcoa, world’s largest aluminium producer, the demand for aluminium is projected to grow at around 6% CAGR till 2018 on account of newer packaging applications and increased usage in automobiles, consumer durables, construction and defence.
SPECIAL COVERAGE
Aluminium market to start recovery in second half of 2010: The Economics of Aluminium
China dominates the global aluminium industry accounting for one third of both world production and world consumption of primary aluminium, according to analysis group Roskill Information Services’ The Economics of Aluminium (9th Edition 2009) publication. The report shows that while China is self sufficient in aluminium metal and approaching self sufficiency in alumina, dependence on imported bauxite remains high despite rising output. However, power supply issues and high costs of production could result in declining production in the longer term and the possibility that China will become a net importer of primary aluminium.
NEWS CORNER
Balco to shut plant as aluminium prices crash
Bharat Aluminium Company, a 51 per cent subsidiary of Sterlite Industries, is planning to close its plant-1, which produces 100,000 tonnes of aluminium every year, as the dip in prices makes production unprofitable said a recent news report.
Hindalco to raise Rs 4,500 cr
According to the news reports Hindalco is getting closer to the financial closure of Utkal Alumina project for which the company is raising Rs 4,500 crore debt to fund the alumina project in Raigad, Orissa. To which company sources said, the total capex of the project is Rs 6,000 crore for
which SBI and IDBI have agreed to arrange for the fund.
COMPANY PROFILE
Second phase of expansion: Vedanta Aluminium Ltd. again orders turnkey high-voltage power distribution equipment for
melting plant in India
The Indian aluminum sector has the highest rates of growth among all the country's metal-producing industries. VAL is investing a total of 120 billion Indian rupees in expansion of the Jharsuguda facility. After completion of the current, second phase of expansion, Jharsuguda will not only be the largest aluminum factory in Asia, but also one of the five biggest integrated production facilities in the world.
Hindalco plans to relocate European plants in India
European market went numb during the economic crisis and still depicts a diminishing picture with negligible signs of recovery. On the other side, India is a booming market providing enough opportunities for the industry to grow rapidly… a report.
Novelis reports fourth quarter & FY 2009 results
Broad actions taken in response to economic downturn with improved cash & risk management
FOCUS
Gulf to control 13% of global aluminium output by 2020, say GCC experts
Gulf oil producers are pushing ahead with mega aluminium projects that will more than triple their output in 2020 and allow them to control about 13% of the world’s total aluminium production, according to official figures. GCC currently produces about 2.2 MT of aluminium. Six Gulf Co-operation Council (GCC) countries, which sit atop 45% of the global recoverable crude deposits, new smelters and expansions of existing units, will boost their
combined output to from 2.2 MT to 4 MT in 2010.
Aluminium: world market prospects
Aluminium prices had fallen to $1,400/t during January this year, a level not seen since September 2003. Consequently, the average price for the first quarter has been predicted by some analysts to be as low as $1,300. Producers around the world have reacted to the low prices. By mid-December, production cuts were seen in China, the United States, the United Kingdom, Eastern Europe, and Ukraine. In 2009, more reductions may come in Asia, Europe, and in some other regions, too. This paper provides a comprehensive analysis of the state of the aluminium industry in challenging economic
times.
China dominates the global aluminium industry
China dominates the global aluminium industry accounting for one third of both world production and world consumption of primary aluminium. While China is self sufficient in aluminium metal and approaching self sufficiency in alumina, dependence on imported bauxite remains high despite rising output. However, power supply issues and high costs of production could result in declining production in the longer term and the possibility that
China will become a net importer of primary aluminium.
BASE METAL
Commodity segment expected to gain some steady support from global market
After a bit of weakness over the past weeks, copper bounced back very strongly this week. The cash official price on the LME gained over 8% from the previous closing level of $4840 to $5230 per ton. One of the major supporting factors to the market was China’s annual GDP growth, which recorded a stronger than forecast 7.9% in the second quarter, making it the best performing major economy and reinforcing hopes that the world economies
were pulling out of the deepest recession in 80 years.
TRADE FAIR
Wire Russia, Metallurgy-Litmash, Tube Russia, Aluminium/Non-Ferrous:
Despite the slump in global economic markets, exhibitors and visitors at the trade fairs Metallurgy-Litmash, Tube Russia, Aluminium Non-Ferrous and wire Russia were of one mind in declaring their experiences in the Moscow exhibition halls between 12 and 15 May 2009 as a source of positive impetus for the future. The trade fair duo remains the premier platform for trading and forging contacts in the metallurgy, wire and cable industry of the emerging Russian market and its neighbouring states. Once again, the event bore out its reputation for high quality by presenting visitors with top-notch equipment both for metalworking and the wire and cable industry. Spread across a net exhibition area of some 8,000 square metres in the cutting-edge Expocentre located on the banks of the Moskva in the Krasnaya Presnya district, the two fairs jointly attracted a total of 9,200 visitors from Russia and the surrounding region as well as experts of international origin.
FLAT PRODUCT
High-tech cold rolling mill commissioned at JSC Kirov, Russia
In 2008, Danieli Frohling in cooperation with Danieli Automation supplied and commissioned a four-high reversing cold rolling mill (diameter 650/160x710 mm) for finish rolling of copper and copper alloy strips at JSC KIROV Non-Ferrous Metal Processing Plant, part of the UMMCUral Mining and Metallurgical Company.
The mill is equipped with all state-of-theart technical features, i.e. hydraulic screw-down, positive and negative roll bending, zone cooling, quick roll-changing devices, etc.
SUMMIT REPORT
A REPORT BY THE GULF ALUMINIUM COUNCIL
The Aluminium Industry’s Contribution to the Economy of the Gulf States Meeting of the Gulf Aluminium Council.
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