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International Commercial Terms

The Aluminum Market
The primary futures market for aluminum is the London Metal Exchange (LME), although the New York Mercantile Exchange listed an alternative contract in early April 1999.

In 2006 global aluminium production was 60.4 million tonnes - 34 million tonnes metal primary and 16.4 million tonnes recycled metal.

The LME is a highly liquid market and in 2007 achieved volumes of 93 million lots, equivalent to $9,500 billion annually and between $35-45 billion on an average business day.


Aluminum has been used for over 100 years as a lightweight and low cost construction alternative to steel, wood and other materials. Aluminum was discovered by Friedrich Wholer in 1827, but it was not until 1895 that a feasible means of production was developed.

In the Earth's crust, Aluminum is the most abundant metallic element, second most abundant material after silicon), and the third most abundant of all elements (after oxygen and silicon).

Aluminum is a silver to white colored, highly elastic, ductile element having atomic number 13 in the periodic table. It is a light metal with only 1/3rd density as compared to that of steel. It is as good a conductor of heat and electricity as the metal copper is.

It is the most eco-friendly metal and is also sound technologically and economically. This fact gives aluminum the second place in the list of the largest consumed metals in the world after steel. It also has unique and numerous properties such as gas resistant, moisture-vapor resistant, grease and oil resistant, corrosion resistant, reflective, and lightweight.

However aluminum is not found in a pure state anywhere in the world, but rather in a combined form with other ores.  The most common ore it is found with is that of Bauxite.  Approximately 95% of the world's bauxite production is processed into aluminum.

Production of aluminum from bauxite ore requires three stages i.e. mining of the ore, refining of the ore to produce alumina and finally smelting of alumina into aluminum.

To turn bauxite into alumina (aluminum oxite), it is ground the ore and mixed with lime, pumped into high-pressure containers, and heated; this is known as the Bayer Process.

The Hall-Héroult process is used all over the world and is the only method of aluminum smelting currently used in the industry.   This process transforms alumina into raw aluminum.

Aluminum oxide has a melting point of about 2,000 °C. Therefore, it must be extracted by electrolysis. In this process, the alumina is dissolved in molten cryolite and then reduced to the pure metal. 

The liquid aluminum product is denser than the molten cryolite and sinks to the bottom of the bath, where it is periodically collected. 

This becomes the raw product of aluminum.

 The Coal Market: 

Around 5.8 billion tonnes of hard coal were used worldwide last year and 953 million tonnes of brown coal. Since 2000, global coal consumption has grown faster than any other fuel.

The five largest coal users - China, USA, India, Japan and Russia - account for 72% of total global coal use.

Different types of coal have different uses. Steam coal - also known as thermal coal - is mainly used in power generation. Coking coal - also known as metallurgical coal - is mainly used in steel production.

Indonesia: Steam Coal

Most of Indonesia's coal reserves are situated in Sumatra in the south, with the balance located in Kalimantan, West Java, and Sulawesi. Coal quality varies, with lower grade lignite (59%), sub bituminous (27%) and high grade bituminous and anthracite (14%).

According to the 2008 BP Statistical Energy Survey, Indonesia had end 2007 coal reserves of 4328 million tonnes and production of 174.83 million tons. 

Keili supplies coal with GCV from 6800 - 5000, a typical Indonesian spec Keili supplies:

Gross Calorific Value ADB 6300Kcal/Kg
Total Moisture AR 12% Max
Inherent Moisture ADB 7% Max
Ash Content ADB 16% Max
Volatile Matter ADB 38-44%
Total Sulphur     ADB 1% Max
HGI ADB 39-43
Size mm 50 Max

Russia: Metallurgical Coal

Global steel production is dependent on coal. Almost 70% of the steel produced today uses coal.

Keili supplies Met Coal/ Coking Coal from Russia.  The Russian port of Nakhodka is a major Coking Coal port on the Russian Pacific Coast.

Available specifications for our Russian Met Coal:
Total Moisture (ARB): 8.1% ISO589:2008(E)
ASH (DB) 8.8% ISO1171:1997(E)
Volatile Matter (DB) 34.2% ISO562:1998(E)
Fixed Carbon (DB) 57.0% ISO1213-2:1992
Total Sulphur (DB) 0.65% ISO351:1996()
G Index 95 GB/T 5447-1997
Y Index 20.0MM GB/t 479-2000
Size 0-100MM 99.1% ISO1953:1994(E)

South Africa: Steam Coal

Richards Bay Coal Terminal (RBCT) is one of the largest export coal terminals in the world with capacity of 76 million tons per annum. 

Keili is able to offer both spot purchases and also long term contract availability for RB1 and also lower quality South African coals. 

A typical RB1 spec is as follows:

Calorific Value: Basis 6,000 kcal/kg NCV

Total Moisture: Maximum 12.0% (as received basis)
Volatile Matter: Minimum 22.0% (as received basis)
Ash: Maximum 15% (as received basis)
Sulphur: Maximum 1.00% (as received basis)
Hardgrove Grindability Index: 45 - 70
Nominal Topsize: 50 mm
Calcium Oxide in ash: Maximum 12% (dry basis)

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In the Earth's crust, Aluminum is the most abundant metallic element, second most abundant material after silicon), and the third most abundant of all elements (after oxygen and silicon). » More Info…

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