Aluminium extraction: Aluminium ore is called bauxite . The bauxite is purified to produce aluminium oxide, a white powder from which aluminium can be extracted. The extraction is done by electrolysis
Billet casting: To produce these aluminum billets, the process is: melting → casting → billet sawing → aluminum billet
Extrusion: Aluminum extrusion is a process by which aluminum alloy material is forced through a die with a specific cross-sectional profile. A powerful ram pushes the aluminum through the die and it emerges from the die opening. When it does, it comes out in the same shape as the die, this process is able to create an unlimited number of complex shapes
Fabrication. After extrusion fabrication are used to creat aluminium frames.
Press metal Fully Integrated Operation From upstream smelting activities to downstream extruding operations, Press Metal is a fully integrated producer of aluminium products. With three smelting plants in Malaysia alone, we have an annual capacity of 760,000 tonnes of primary aluminium production. Our PMB-branded aluminium ingots produced by our Samalaju smelter are listed on the London Metal Exchange as a high-grade primary aluminium product.
Only Pressmetal will benefit from high price of aluminium because only Pmetal have upstream smelting/aluminum extraction activities with cheap electrical cost (hydro power) for electrolysis.
LB need to buy the aluminium ingots to do aluminium extrusion and fribrication
KYY dont understand the aluminium industry. its very obvious that BIGGEST benefactor is Press Metal because they are in the upstream smelting industry that sells Aluminium as a raw material. Any price increase in LME aluminium is an additional topline benefit to PM.
LBALum and Alcom are just SMALLER extrusion players. Their costing is the aluminium raw material that they buy and extrude into aluminium products. That means their cost is also increasing - their profit and loss depends on the margin they charge on top of their cost. Of course increased demand = increased volume = increased profit (but ALL this are CAPPED).
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....