aluminium india
DESCRIPTION
Analysis of Aluminium as a commodityTRANSCRIPT
ComTraCommodity - Aluminium
Team- TradegurusTeam members:-Suryanarayan Panda-Anmol Garg-Shubham Badkur Jain-Harshit Vyas
MBA IB 2014-16 BatchIndian Institute of Foreign Trade
Introducti
on
• Introduction
Domestic Aluminium Production
• Bauxite Producing Areas• Aluminium Production in India• Aluminium Production Analysis
International
Aluminium Production
• Bauxite Producing Countries• Aluminium Producing Countries• Region wise Aluminium Production• Aluminium Production Analysis• Key Production Drivers
AGENDA
INTRODUCTION
• Aluminium is a silvery white, soft, ductile metal. It is the third most abundant element, and the most abundant metal in the Earth's crust
• Among metals it is the second most used metal after steel and is the fastest growing metal in the last three decades
• It is light weight, ductile, durable, corrosion resistant and malleable
• Aluminium is produced from the mineral bauxite and involves large electricity input
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Source:Indian Minerals Yearbook 2012, Indian Bureau of Mines
Bauxite Production Production in Tonnes
State/Year 2009-10 2010-11 2011-12
Chhattisgarh 1687069 2109949 2365304
Goa 31050 100900 84700
Gujarat 2687306 938574 843497
Jharkhand 1670577 1855993 1830850
Karnataka 123316 64643 83019
Madhya Pradesh 1056847 616319 617146
Maharashtra 1985006 2133736 1937898
Odisha 4879580 4856808 5045888
Tamil Nadu 3342 45898 69092
Bauxite Producing Areas of India
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State/UT
2009-10 2010-11 2011-12 2012-13 (Up to January, 2013)#
Quantity (in tonnes)
Value (Rs. In crore)
Quantity (in tonnes)
Value (Rs. In crore)
Quantity (in tonnes)
Value (Rs. In crore)
Quantity (in tonnes)
Value (Rs. in crore)
Odisha 8,52,009.00 7,466.95 9,56,937.00 10,187.63 9,98,474.00 11,497.45 8,38,247* 10,366.48*
Chhatisgarh 2,68,425.00 2,950.00 2,55,298.00 3,327.00 2,45,654.00 3,114.00 2,06,053 2,761.00
Uttar Pradesh 3,99,198.00 2,822.72 4,09,958.00 3,132.28 4,18,268.00 3,812.28 1,92,468* 2,021.51*
Aluminium Production in India
Odisha Chhatisgarh Uttar Pradesh0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2009-20102010-20112011-2012
(In tonnes)
• Odisha is the largest bauxite producer of the country, having the country’s only PSU (NALCO) involved in the production of Aluminium
• Panchpatmali mines in Koraput are Asia’s largest bauxite mines
YearProduction (Quantity in tonnes; Value in
Rs.'000)
Quantity Value
2009-10 14,80,568 12,37,71,762
2010-11 16,21,033 16,28,44,955
2011-12(P) 16,54,156 18,36,57,146
State Wise Production
Annual National Production
Source: Press Information Bureau, Government of India, Ministry of Mines, March 2013
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Indian Aluminium Production Analysis
• Smelters operating below capacity due to unavailability of raw material on time
• Denial of environmental clearances for new mines
• Land acquisition problems
Non Availability of Bauxite
• Major Indian metal producers waiting for global price recovery
• Decline in domestic coal supplies
• Integrated companies not willing to spend on imported coal
Low global Aluminium
Prices
Key Factors Influencing Production Levels
Vedanta not allowed to mine from Niyamgiri hills
Coal shortages disrupting electricity generation
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Key Production Drivers
Electricity and Consumer Durables• Bulk of aluminium is used in overhead conductors
and power cables involved in electricity generation, transmission and distribution
• Use in consumer electronics for backing plates in TV, tablets and consumer electronics
Building and Infrastructure• Consumption in this sector expected to grow at a
CAGR of 18-20%• Demand for enhanced quality driving use of
Aluminium extrusions to construct stadiums, residential and shopping centres, bridges etc.
Transport and Packaging Industry• Higher production of automobiles, railway coaches
and increasing urbanisation• Rise in demand for aluminium in food packaging,
beverage industry and pharmaceutical
Growth of solar and wind energy is leading to rise in Aluminium consumption
Current Indian production is sufficient for the current demands
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Major Bauxite Producing Countries
Country Production (2013 production in thousand metric tons)
Australia 77000
China 47000
Brazil 34200
Indonesia 30000
India 19000
Guinea 17000
Jamaica 9500
Russia 5200
Kazakhstan 5100Australia China Brazil Indonesia India Guinea Jamaica Russia Kazakhstan
0
10000
20000
30000
40000
50000
60000
70000
80000
Production 2013 in Thousand tonnes
Production 2013 in Thousand tonnes
Highlights• Australia is the largest producer of Bauxite in the world•India is ranked 5th in terms of Bauxite production and 7th in terms of Aluminium production
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Source: www.world-aluminium.org/statistics
Major Aluminium Producing CountriesCountry Production(2013)
USA 1950
Argentina 460
Australia 1750
Bahrain 890
Brazil 1440
Canada 2900
China 21500
Germany 400
Iceland 825
India 1700
Mozambique 560
Norway 1200
Qatar 600
Russia 3950
South Africa 820
United Arab Emirates 1800
Other Countries 4650
Key Highlights•India ranks 7th in global aluminium production.•Per capita aluminium consumption in India is 1.3 Kg Vs. Global average of 8 Kilograms annually
Per capita aluminium consumption in Kilograms
United States; 1950 Australia; 1750Brazil; 1330
Canada; 2900
China; 21500
India; 1700
Norway; 1200
Russia; 3950
United Arab
Emirates; 1800
Other Countries;
9215
Production 2013
United StatesAustraliaBrazilCanadaChinaIndiaNorwayRussiaUnited Arab EmiratesOther Countries
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Source: www.unctad.org
Region wise Aluminium Production 2013
Global Aluminium Production (2009-2013), in thousand metric tonnes
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Source:www.world-aluminium.org
Global Aluminium Production Analysis
• Lots of power required in smelters for converting Alumina to Aluminium
• Main driver for production from Middle East and North West China
Cheap Power
• High bauxite exports from Australia and Indonesia
• China produces nearly 1/3rd of its Aluminium from imported bauxite
Bauxite Availability
Key Factors Influencing Production Levels
Abundant gas and gas based power available in Middle East
Greenfield Projects coming up in NW China due to cheap coal
Smelter closures in Europe due to ‘Carbon Tax’ leading to declining production
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Key Production Drivers
Transport Sector is the main consumer• Thrust towards light weight bodies to increase mileage• US EPA guidelines to reduce vehicle exhausts by reducing
weight• Companies emphasising on lightweight railway bogies to
reduce environmental impact and high quality exterior finish
Construction and Electrical Industry • Corrosion resistance, Recyclable, Lightweight and Durable • High copper prices prompting switch to aluminium in
electrical and industrial components• Primary building material in LEED buildings and
Sustainable Buildings
Packaging Industry • Rising use of aluminium foil in food preparation,
insulation and electronics• Lightweight package creation by merging of aluminium
foils with flexible films
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