ComTra

Commodity Aluminium
Team- Tradegurus
Team members:
-Suryanarayan Panda
-Anmol Garg
-Shubham Badkur Jain
-Harshit Vyas
MBA IB 2014-16 Batch
Indian Institute of Foreign Trade

AGENDA
Introducti
on

Domestic
Aluminiu
m
Productio
n

Introduction

Bauxite Producing Areas

Aluminium Production in India
Aluminium Production Analysis

Bauxite Producing Countries

Internatio Aluminium Producing Countries
nal
Aluminiu Region wise Aluminium Production
m

Aluminium
Production
Analysis
Productio
n
Key Production Drivers

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

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10

Bauxite Producing Areas of India

Bauxite
Production
State/Year
Chhattisgarh
Goa

Production in Tonnes
200910
2010-11 2011-12
16870
69 2109949 2365304

Odisha

31050
26873
06
16705
77
12331
6
10568
47
19850
06
48795
80

Tamil Nadu

3342

Gujarat
Jharkhand
Karnataka
Madhya
Pradesh
Maharashtra

100900

84700

938574

843497

1855993 1830850
64643

83019

616319

617146

2133736 1937898
4856808 5045888
45898

69092

Source:Indian Minerals Yearbook 2012, Indian Bureau of

Mines

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minium Production in India

State Wise Production

2009-10

2010-11

2011-12

2012-13 (Up to
January, 2013)#

State/UT
Quantity Value(R Quantity Value(R Quantity Value(R Quantit Value(R
(in
s. In
(in
s. In
(in
s. In
y (in
s.
tonnes) crore) tonnes) crore) tonnes) crore) tonnes) incrore)
Odisha

8,52,009
9,56,937 10,187.6 9,98,474 11,497.4 8,38,24 10,366.48
7,466.95
.00
.00
3
.00
5
7*
*

Odisha is the largest

bauxite producer of the
country, having the
countrys only PSU
(NALCO) involved in the
production of
Aluminium
Panchpatmali mines in
Koraput are Asias
largest bauxite mines

Chhatisga 2,68,425
2,55,298
2,45,654
2,06,05
2,950.00
3,327.00
3,114.00
2,761.00
rh
.00
.00
.00
3
Uttar
3,99,198
4,09,958
4,18,268
1,92,46
2,822.72
3,132.28
3,812.28
2,021.51*
Pradesh
.00
.00
.00
8*

Annual National Production

1,200,000
1,000,000
800,000

Year

600,000
400,000
200,000
0

(In
tonnes)

200
9201
0

Source: Press Information Bureau, Government of India, Ministry of Mines, March 2013

Production (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

201112(P)

16,54,156

18,36,57,146

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Indian Aluminium Production Analysis

Key Factors Influencing
Production Levels

Non
Availabil
ity of
Bauxite

Low
global
Aluminiu
m Prices

Smelters operating
below capacity due to
unavailability of raw
material on time
Denial of environmental
clearances for new
mines
Land acquisition
problems
Major Indian metal
producers waiting for
global price recovery
Decline in domestic
coal supplies
Integrated companies
not willing to spend on
imported coal

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
Indonesia
India

34200
30000
19000

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 2013 in Thousand tonnes
production
80000
70000
60000
50000
40000

Guinea

17000

Jamaica

9500

Russia

5200

Kazakhstan

5100

30000
20000
10000
0
Australia

Source: www.world-aluminium.org/statistics

China

Brazil

Indonesia

India

Guinea

Jamaica

Production 2013 in Thousand tonnes

Russia Kazakhstan

Major Aluminium Producing

Country
Production(2 Key Highlights
Countries
India ranks 7 in global
013)
th

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

Source: www.unctad.org

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Per capita aluminium

consumption in Kilograms

aluminium production.
Per capita aluminium
consumption in India is 1.3
Kg Vs. Global average of 8
Kilograms annually

Production 2013

United States; 1950 Australia; 1750

Other Countries; 9215Brazil; 1330
Canada; 2900
United Arab Emirates; 1800
Russia; 3950
Norway; 1200
India; 1700

China; 21500

United States
Australia
Brazil
Canada
China
India
Norway
Russia
United Arab Emirates
Other Countries

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Region wise Aluminium Production 2013

Global AluminiumSource:www.world-aluminium.org
Production (2009-2013), in thousand
metric tonnes

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Global Aluminium Production Analysis

Key Factors Influencing
Production Levels

Cheap
Power

Bauxite
Availabil
ity

Lots of power required

in smelters for
converting Alumina to
Aluminium
Main driver for
production from Middle
East and North West
China

High bauxite exports

from Australia and
Indonesia
China produces nearly
1/3rd of its Aluminium
from imported bauxite

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

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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