Downstream aluminium is where geopolitics meets the shop floor. Tariffs, shipping disruption, regulation and shifting demand are deciding who rolls the metal, who gets it and what it becomes, whether a beer can, a battery housing or a length of wire. Fifteen recent developments across North America, Europe, Asia, the Middle East and Oceania depict how aluminium flat rolled products (FRPs), packaging and electric vehicle (EV) demand are being rerouted, and where traders, exporters and buyers may need to adjust. Aluminium FRP and wire: tariffs and policy redraw the flows The tariff debate has reached the bar counter. In Virginia, Democrat Tom Perriello is campaigning on aluminium tariffs that he says raise brewers’ packaging costs. Across the border, a Windsor, Ontario brewery reports its...
The global aluminium industry is entering a new phase of competition, with access to raw materials, affordable energy and production capacity increasingly shaping the position of major producers. China is preparing a large overseas smelting expansion, Ghana is attracting investment in its bauxite reserves, and India and Vietnam are advancing new aluminium projects. However, the expansion drive comes against a complicated market backdrop. Alumina prices have fallen sharply, energy and logistics costs remain significant, and trade policies are reshaping the economics of production and exports. Together, these developments point to a market in which securing resources is only part of the challenge; converting them into competitive aluminium will matter just as much. Africa’s bauxite...
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Kautec Solutions, a specialised manufacturer and seller of all types of aluminium extrusion equipment has joined hands with Safespill, the world’s leading provider of ecologically friendly fire protection solutions. The deal will supply Safespill with a highly automated aluminium extrusion line, which will amplify the productivity of Safespill floor production. Kautec will upgrade its end-to-end solutions for new builds and current retrofits of commercial and US military aircraft hangars. The system will be installed in early 2023 at Safespill’s headquarters in Houston, Texas, and will be completely operational by the middle of the year. Safespill's prompt and effective delivery of Safespill floors, also known as ILDFAs, will be solidified by around-the-clock manufacturing capabilities...
The New Zealand government has withdrawn a composite subsidy worth about $60 million, from the Rio Tinto majority-owned Tiwai Point aluminium smelter in Southland. A freshly released cabinet paper has unveiled that James Shaw, the Minister of Climate Change had demanded the government to accept this measure late in 2021. The subsidy phrased that the New Zealand government provides 934,400 free units per year under the Emissions Trading Scheme (ETS) to the aluminium smelter as part of an electricity allocation drive. Now the companies have to capitulate a fixed number of these units, presently priced at $75 based on their emissions, with each unit roughly translating to a tonne of carbon dioxide. However, some large emitters and large power users possess some free units allocated each year...
Hindalco Industries’ aluminium ingot and aluminium products prices have continued witnessing hikes, in line with an incessant LME aluminium price surge, attributable to the anticipation of disrupted metal production due to natural gas price rise and supply scarcity. With effect from Friday, March 25, Hindalco has increased its aluminium ingot price by INR 9,250 per tonne or 3 per cent to INR 318,000 per tonne. On Wednesday, March 23, Hindalco’s aluminium ingot price stood at INR 308,750 per tonne, up by INR 3,500 per tonne from the previous day. Hindalco’s aluminium wire rod price has also been raised by INR 9,250 per tonne from INR 319,850 per tonne on March 23 to INR 329,100 per tonne on March 25. Aluminium billets price is no exception but has witnessed a rise of INR 9,250 per tonne or...
The metal aluminium is a very expedient product due to its malleability and elasticity than steel. The green metal aluminium can enter places and be moulded to shapes that steel cannot form in deeper or more complicated spinning, particularly for components with deep and straight walls, aluminium is always the material of choice. As the Govt. of Oman’s finances keeps improving on higher oil prices in 2021 and average oil prices are likely to be much higher than the levels estimated in the 2022 budget, incorporated with state incentives for businesses, there is a brighter outlook towards the year ahead for the Kingdom. The Gulf Nation Oman imported 5787 tonnes of aluminium structures during 2019-21, accounting for outflowing of foreign revenue at $32.59 million for the import. The Western...
Alupro, the aluminium packaging recycling organisation, has reportedly launched its sustainability manifesto focusing on seven goals to bring in a change in the packaging and waste management approach and promote a successful circular economy. Describing the seven points of the manifesto at the launch, Tom Giddings, Executive Director of Alupro, noted – 1) carrying out consistent kerbside collections by local authorities is key, 2) conscious efforts should be made by local authorities and parties to implement ambitious on-the-go recycling and collection infrastructure, 3) regular communication campaigns is important through collaborations with companies, 4) implementation of a well-designed Deposit Return Scheme (DRS) by the government and responsible parties to promote collection of at...
On March 20, in response to the Ukraine-Russia standoff, the Australian government had imposed a ban on the export of alumina, bauxite and other commodities to Russia. As a result, some industry analysts believe that Russia may now seek help from China for the alumina supply. However, Chinese aluminium smelters require the complete feedstock they can get and are apprehensive about sending alumina to Russia over the fear of falling under the sanction radar from the western world. The embargo has already put the Russian aluminium under pressure, as the company receives about 19% of its alumina supply from Queensland Aluminium (QAL) in Australia, where it holds a 20% ownership stake. The news about Russia looking for alumina from China is still not confirmed, observers believe the scale of...
On 25 th February 2022, Robert Peterson, the CFO at the American multinational organization engaged in hydrocarbon exploration in the United States, the Middle East, and Colombia, Occidental Petroleum (OXY) claiming that its chemical division, OxyChem is planning to outdistance some chlor-alkali facilities to raise the capacity in the production of higher-value caustic soda. The caustic soda produced by OxyChem is a vital constituent in the production of aluminium (bauxite processing to alumina), pulp and paper and is used in battery recycling. However, in the fourth quarter of 2021, Peterson narrated OxyChem’s investment blueprint which reveals refurbishment of précised US Gulf Coast chlor-alkali facilities to transform from diaphragm-grade caustic soda to membrane-grade caustic soda...
The Indian state-owned integrated aluminium company NALCO (National Aluminium Company Ltd) has been awarded as the national winner of the ‘Golden Peacock Award’ for its sustainability in commendation of its persistent concern on sustainable mining and environment-friendly executions. On 23rd March 2022, Sridhar Patra, the Chairman Cum-Managing Director of Nalco, received the award in a virtual session organised by the Institute of Directors (IOD). In 1991, initiated by the Institute of Directors (IOD), Golden Peacock Award are now regarded as a benchmark of Corporate Excellence worldwide. Mr Patra praised the employees for their relentless commitment towards sustainability drive and environment management practices. The CMD further added, "This award is testimony to the high standards...
LME aluminium opened at US$3,670per tonne on Thursday, March 24, and closed at US$3,570per tonne, down US$115 per tonne or 3.12 per cent. LME aluminium cash bid price stood at US$3,663 per tonne with a whooping rise of 2.95 per cent or US$105 per tonne and LME aluminium official settlement price halted at US$3,664 per tonne with an increase of 2.92 per cent or US$104 per tonne, if compared with the records of the previous day. 3-month bid price hiked by US$117 per tonne to rest at US$3,675 per tonne and 3-month offer price had a raise of US$115.50 per tonne to close at US$3,675.50 per tonne. The former increased at a rate of 3.29 per cent, while the latter by 3.24 per cent. On the same day, December 23 bid price stood at US$3,398 and December23 offer price at US$3,403, both increasing by...
China’s Aluminium billet inventory has been following the downward trend since February 24. As of Thursday, March 24, the inventory has plummeted by 24,400 tonnes or 13.85 percent W-o-W to register at 151,900 tonnes. According to SMM, the market must closely monitor how the current increase in aluminium pricing, as well as COVID reduction initiatives, would affect downstream consumption. With pandemic under control, stockpiles of aluminium billets are projected to decline next week also. The chart below indicates the current status of aluminium billet inventories across China in more detail: In Foshan the inventory has declined by 7,200 tonnes to come in at 76,200 tonnes. A substantial drop has been noticed in Wuxi by 22,700 tonnes to close at 28,300 tonnes. The drop in Wuxi was mostly...
On 24 th March 2022, the American multinational technology giant, Apple Inc. which specializes in consumer electronics, and is an early associate of ELYSIS alongside Alcoa and Rio Tinto, announced it will use ELYSIS aluminium in its new iPhone SE. However, this announcement is exciting news for the industry and demonstrates once again the major shift ELYSIS is modelling to make the aluminium industry more sustainable. Vincent Christ, the CEO of ELYSIS said, “This is the first time aluminium has been produced at this commercial purity, without any greenhouse gas emission and at industrial scale. The sale to Apple confirms the market’s interest in aluminium produced using our breakthrough ELYSIS carbon-free smelting technology. Today’s announcement proves that ELYSIS, a joint venture...
According to the Shanghai Metals Market, social inventories of Chinese aluminium ingots have continued to decrease by 50,000 tonnes from a week ago, across eight major consumption areas, including SHFE warrants. Data shows the inventories have come in at 1.04 million tonnes, compared with 1.09 million tonnes last Thursday, March 17. China’s domestic aluminium market destocking has resulted in the decline in ingot inventories, primarily at Gongyi and Nanhai. In addition, delayed arrivals of stocks due to transport inefficiency, following the recent outbreak of COVID-19, has also consequence to the further downfall of inventories. Meanwhile, on Monday, the inventories dropped by 28,000 tonnes over the weekend to stand at 1.06 million tonnes. The chart below indicates the current status of...
A recent study has revealed that global aluminium demand will see an increase of 40 per cent by 2030, requiring an additional production of 33.3 million tonnes, meaning the metal output should ideally improve from 86.2 million tonnes in 2020 to 119.5 million tonnes in 2030. The research study, titled Opportunities For Aluminium In A Post-Covid Economy, conducted by business intelligence analyst CRU International on behalf of the International Aluminium Institute (IAI), has also noted the key industries that will drive the demand growth. Transportation, construction, packaging, and electrical are the four key industrial sectors that will together account for 75 per cent of the total demand. The demand from China is expected to be at 12.3 million tonnes, while from the rest of Asia 8.6...
After gaining additional funding, a recycling enterprise that is rebuilding already shut-down aluminium plant claims it is planning to settle "outstanding invoices" of the already shut down Anglesey Aluminium plant. After smelting ceased in 2009, Orthios acquired the old Anglesey Aluminium plant near Holyhead in 2016. Anglesey Aluminium was a joint venture between Rio Tinto and Kaiser Aluminium. However, in September 2009, the Anglesey Aluminium plant was shut down, as they failed to achieve a reduced energy arrangement. The decision was taken jointly by co-owners Rio Tinto Group and Kaiser Aluminium. Orthios had previously stated its intention to construct a 299 MW plant as well as hydroponic and aquaculture centres, however, finance for these projects got terminated. The company, on the...
On 18 th March 2022, the international metals recycler, Romco Group which produces clean and sustainable essential metals that decarbonise the global supply chain declares its record-breaking financial and operational results for 2021. A strong Q4 performance for the company triggers to be a record year for Romco, with a 330% jump in Y-o-Y revenue. The production level soared by 194% following upgrades to Romco’s facilities, which now consist of 7 furnaces including a new facility in Ghana and two copper furnaces. Ramco's track record for delivering rapid, profitable growth was recently reinforced by a $6.2m Series A equity round based on the valuation of $180m. However, the capital raise forms part of an ongoing fundraising strategy that is supercharging expansion and revenue growth....
S.A.V. S.p.A. Societa' Alluminio Veneto has acquired the ASI Performance Standard Certification for the sorting plus melting of raw materials and metal scrap to induce production of aluminium alloy ingots at the Colombo and Dell’Artigianato facilities in Italy. The total production capacity of the S.A.V. S.p.A. plants in Northern Italy is almost 100,000 tonnes per year. Aluminium Stewardship Initiative (ASI) today, on March 23 rd , announced that S.A.V. S.p.A. has achieved successful certification against ASI Performance Standard for responsible production, sourcing and circulation of aluminium. The ingots that the company boasts about are procured after rigorous recycling of aluminium and are used in various industrial purposes like, automobile making, household appliances, naval,...
Indonesian state miners Aneka Tambang (Antam) and Inalum’s joint venture operation is delayed for two years since its US$831.5 million alumina refinery is not ready yet, as reported by the president director of the joint venture Dante Sinaga who said all this at the parliament on Monday. On 4 th of April, 2019, PT Indonesia Asahan Aluminium (Persero) had closed the JV deal with PT ANTAM Tbk., through their joint venture subsidiary PT Borneo Alumina Indonesia (PT BAI) for inaugurating the construction of a Smelter Grade Alumina Refinery in Bukit Batu Village, Mempawah Regency, West Kalimantan. As early as on January 6, 1976, PT Indonesia Asahan Aluminium (INALUM), a joint venture company between the Government of Indonesia and Nippon Asahan Aluminium Co., Ltd. was established in Jakarta....
India’s domestic coal supply to aluminium smelters record further decline with railway rakes supplying coal at the lowest rate since September, while the energy crisis appeared at its peak. This, as a consequence, has compelled the country’s aluminium industry to import more amid rising cost pressures. Data provided by Coal and Mines Minister Pralhad Joshi to Parliament shows the aluminium industry received an average of 18.4 coal-laden carriages a day in the first half of March as against 17.8 rakes in September. Aluminium smelters in India are suffering from lower coal supply while also reeling under surging oil and gas prices. The tighter coal supply is mainly because State-run monopoly Coal India Limited is diverting more supplies to power plants to avoid power shortages like last...
