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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Not much has been happening in the downstream sector of the global aluminium industry. To begin with, the Salzburger Aluminium Group, an Austrian family firm with 1100 people globally, had a tremendously promising year in 2021. SAG a global supplier to all well-known OEMs, increased revenues by more than 35% to EUR 207 million, with an EBIT margin of 7%. Also, Constellium NV launched its Q4 2021 and full year 2021 results. Constellium exported 385 thousand metric tonnes of aluminium product in the fourth quarter of the year, up 3% year over year. Revenue increased 37% year over year to €1.7 billion, while net income dropped from €26 million in 2020 to €7 million in 2021. According to a recent report, Novelis Korea Limited, subsidiary plant of Novelis in Yeongju, has secured the ASI Chain...
The sudden hike in the number of events in alumina segment is primarily due to the anticipation of the crisis between Russia and Ukraine. The conflict has stirred the raw material industry greatly, causing record breaking inflation in prices of raw materials. Apart from this, looking at the current scenario, Irish businesses are concerned about their financial sanctions against Russia as Rusal’s Aughinish alumina refinery in the Shannon Estuary, Europe's largest, may find itself in the sanctions red zone since it sends 45% of its aluminium production raw material to European markets. Also, Rio Tinto owned Queensland Alumina Limited (QAL), one of Australia's major alumina refineries, is concerned about the prospect of penalties. Rio Tinto owns a majority of the alumina refinery and has...
The global aluminium benchmark price rally to a record high this week has created a buzz across the industry. On Thursday, February 24, the LME aluminium price stood 13-year high at US$3,519 per tonne, attributable to Russia-Ukraine conflict that fuelled the worldwide supply concerns of the metal. However, on Friday, February 25, the price slipped by US$164 per tonne to stand at US$3,355 per tonne. To know more: https://www.alcircle.com/news/lme-aluminium-benchmark-price-rallies-to-13-year-high-this-week-before-closing-at-us3355-t-shfe-price-settles-at-us3607-t-76720 In response to this global aluminium price hike, National Aluminium Company Limited (NALCO) expanded its aluminium ingot and aluminium products prices by INR 20,000 per tonne or 7 per cent. With effect from Friday, February...
On 25 th February 2022, the Indian Captive Power Producers Association (ICPPA) stated that the ongoing Russia-Ukraine military strife, which has propelled the global energy prices to scale up, will diminish the proclivity to import coal by power plants and will further disrupt the supply of fuel to the captive power plants that support by supplying energy to industries like aluminium among others from state-owned Coal India. The CPP industries while finding themselves on the wrong side of abrupt changes in the policy implementation curtailing coal supplies, established an industry body in 2005, Indian Captive Power Producers Association (ICPPA). “Amid rising energy prices globally, electricity producers will pressure the government for domestic coal to fulfil their demand, which will...
The LME aluminium benchmark price rallied to a 13-year high this week, driven by the Ukraine-Russia conflict fuelling reduced metal supply concerns. After starting the week on Monday, February 21, at US$3,313 per tonne and US$3,315 per tonne, LME aluminium cash bid price and LME aluminium official settlement price rose by over US$100 per tonne to stand at US$3,419 per tonne and US$3,420 per tonne, respectively. But on the next day, the prices slipped to US$3,323 per tonne and US$3,323.50 per tonne, which rebounded on Thursday, February 24, to US$3,518 per tonne and US$3,519 per tonne, record high since 2008. However, on Friday, both LME aluminium cash bid price and LME aluminium official settlement price closed the week lower at US$3,354 per tonne and US$3,355 per tonne. 3-month bid price...
Team AlCircle is pleased to report that its third virtual event, “AlCircle Expo 2022,” held on February 15 and 16 had been a huge success. It was a virtual event aimed at bringing together aluminium industry professionals from throughout the value chain. Our goal was to provide a platform ideal for expanding business networks, acquiring new skills, and sharing success stories while travel was still a limitation. This year’s Expo witnessed a total of 1,082 attendee participation from 96 countries, which interacted and networked with 49 exhibitors and 10 sponsors. A total of 1,333 business cards were exchanged throughout the exhibition and 644 total business cards picked up from vendor booths. The average number of visitors per booth was 81 and the average time spent by a visitor was 2...
In January 2022, primary aluminium production in Africa stood at 139,000 tonnes, gaining only 1,000 tonnes month-on-month, found the International Aluminium Institute. In December 2021, primary aluminium production in Africa grew by 7,000 tonnes or 5.34 per cent on month from 131,000 tonnes. In three-month time (November 2021 to January 2022), Africa’s primary aluminium output totalled 408,000 tonnes, up by 3,000 tonnes from 405,000 tonnes in the earlier three months. On a year-on-year calculation, Africa’s primary aluminium production in January 2022 edged a hike of 6,000 tonnes or 4.51 per cent from 133,000 tonnes. In January 2022, the world primary aluminium production amounted to 5.513 million tonnes, down by 0.36 per cent from 5.533 million tonnes in December 2021 and 4.45 per cent...
The fourth-largest chain of supermarkets in the United Kingdom, Morrisons has become the first supermarket to offer its customers a smart way to recycle coffee pods through a partnership with the recycling scheme Podback. In the upcoming weeks, Morrisons customers will be apt to fetch free Podback Collect+ recycling bags from its customer service desks. However, the Podback bags can be stuffed with used coffee pods at home, then taken to one of 6,500 collect plus delivered by Yodel drop off points around the UK. This also needs to be noted that all postage back to Podback is gratis. The Podback scheme will drive the used aluminium pods to turn out into aluminium ingots for new products, like beverage cans and used plastic coffee pods are turned into other plastic items, such as furniture....
Hindalco Industries Limited has hiked its aluminium products and aluminium ingot prices as the LME aluminium benchmark price has rallied yet again to a 13-year high. With effect from February 25, the company has raised its aluminium wire rod price by INR 18,250 per tonne to INR 312,850 per tonne. On Thursday, February 24, the price came in at INR 294,600 per tonne after being cut by INR 8,750 per tonne. Hindalco’s aluminium billets price has also witnessed a surge of INR 18,250 per tonne from INR 297,600 per tonne on February 24 to INR 315,850 per tonne on February 25. Hindalco’s aluminium ingot price is standing at INR 301,750 per tonne versus INR 283,500 per tonne on the previous day. Hindalco links its aluminium ingot and aluminium products prices to the three-month future of aluminium...
Constellium NV, a European value-added aluminium company, launched its fourth-quarter and full-year 2021 results this week. Despite the persisting market challenges brought on by the global COVID-19 epidemic, Constellium's financial result for both the quarters were good. Shipments of 385 thousand metric tonnes increased by 3% in the fourth quarter of 2021 compared to the fourth quarter of 2020 owing to greater shipments in the Aerospace & Transportation category. Revenue of €1.7 billion was up 37% over the fourth quarter of the previous year, owing mostly to higher metal prices. Net income of €7 million was down €19 million from the fourth quarter of 2020, when it was €26 million. Due to stronger performance in each of the sectors, adjusted EBITDA of €147 million grew by 33% compared to...
On Thursday, February 24, Century Aluminum announced its fourth quarter and full-year 2021 results, revealing the net income of $60.4 million for Q4 versus $52.4 million a quarter ago. That was a quarterly increase of 15.27 per cent on higher shipments from 196,095 tonnes to 200,961 tonnes. Net sales increased by 13 per cent in Q4 from $581.4 million to $659.1 million sequentially. Fourth-quarter results were positively impacted by $43.9 million of exceptional items, in particular $53.8 million of unrealized gains on forward derivative contracts (net of tax), partially offset by $9.9 million in share-based compensation costs. Thus, Century reported adjusted net income of $17.2 million for the fourth quarter of 2021, up by 202 per cent sequentially. Adjusted EBITDA in Q4 was recorded at...
On 24 th February 2022, Richard Rushton, the Chief Executive Officer of Distell, a global business with roots in South Africa, the leading cider exporter of the nation and the third-largest cider brand in the world, Savanna Dry delivered its preliminary unplanned reaction in regards to the beverage being sold in aluminium cans has remained optimistic. Since its launch, the cider brand’s beverage has been sold in bottles, but Distell which also owns brands like Hunter’s and Klipdrift, has been stumbling with an acute dearth of glass supply in South Africa, which compelled it to adapt aluminium cans. The supplies of glass have been a setback in South Africa since 2021 when large glass producers were forced to shut their furnaces due to pandemic lockdown and amid alcohol sales bans. Distell...
National Aluminium Company Limited has continued to increase its aluminium ingot and aluminium products prices for the third time in a row since February 9. With effect from Friday, February 25, NALCO’s aluminium ingot price has witnessed a surge of INR 20,000 per tonne or 7 per cent for the first time to come in at INR 300,450- 303,950 per tonne. This hike is in line with the rally of the LME aluminium benchmark price to a record high since 2008, following worries of reduced metal supplies from Russia fuelled by Ukraine-Russia conflict . On Thursday, February 24, the three-month LME aluminium future price soared by US$195.50 per tonne or 5.88 per cent to score at US$3,519 per tonne. Thus, on a month-on-month calculation, the price is up by US$474.50 per tonne from US$3,044.50 per tonne....
According to the US Geological Survey (USGS), the United States exported 15,200 tonnes of US aluminium scrap to Mexico in November, showing a month-on-month growth of 2,100 tonnes or by 16.03%. In October 2021, 13,100 tonnes of US aluminium scrap was exported to Mexico, highlighting decline of 200 tonnes from 13,300 tonnes in September 2021. On a year-on-year calculation, US aluminium scrap exported to Mexico in November 2021 dropped by 1,400 tonnes from 16,600 tonnes in November 2020. From January to November, the exported aluminium scrap to Mexico pegged at 156,000 tonnes. For the same period last year, the amount recorded at 136,000 tonnes. Based on the data from the USGS, the total amount of aluminium plates, sheets, bars, crude metals and alloys, and scrap, exported to Mexico for...
According to a report on February 24, Vedanta Aluminium Business has launched its low carbon, green aluminium brand named ‘Restora’, with two product lines – Restora (low carbon aluminium) and Restora Ultra (ultra-low carbon aluminium). This brand is not only Vedanta’s but India’s first low carbon green aluminium product lines for customers worldwide, representing a remarkable step towards its commitment of achieving Net Zero Carbon by 2050. Both the products under the brand are officially assessed and verified as low carbon aluminium by an independent, global verification assurance firm. Vedanta’s main goal of introducing a brand like Restora is to address the fast-growing global demand for low carbon aluminium. The products under the brand, with GHG emission intensity well below 4...
The controlling shareholder of Tiwai Point aluminium smelter in New Zealand, Rio Tinto will commence transporting the hazardous stuff which is being stowed away at Tiwai Point, as the company initiates clearing up the site, a place where it has produced aluminium for over 50 years. The only aluminium smelter in New Zealand rolled under pressure to clean up the smelter site following it was disclosed that it has been stockpiling potentially toxic waste in storage facilities and a landfill. Although the prospect for the smelter has grown to stay open past its 2024 closure date, Chris Blenkiron, the Chief Executive and General Manager of NZAS said, “Regardless of the closure date or plan for the operation at Tiwai Point, Rio Tinto and NZAS are committed to remediating the site.” ”We are not...
LME aluminium opened at US$3,288 per tonne on Thursday and closed at US$3,365 per tonne, an increase of US$71 per tonne or 2.16 per cent. On Thursday, February 24, LME aluminium prices jumped to a record high since 2008, driven by reduced metal supplies concerns due to Ukraine-Russia conflict. While LME aluminium cash bid price soared by US$195 per tonne or 5.87 per cent to stand at US$3,518 per tonne, LME aluminium official settlement price inflated by US$195.50 per tonne or 5.88 per cent to score at US$3,519 per tonne. 3-month bid price and 3-month offer price closed higher at US$3,443 per tonne and US$3,445 per tonne, respectively. December 23 bid price and December 23 offer price totalled at US$3,063 per tonne and US$3,068 per tonne. LME aluminium opening stock decreased to 824150...
The devolved government of Scotland, the Scottish Government stands strong amid encountering an inherent financial disclosure of £161 million in regards to its connection in the Lochaber aluminium smelter acquisition deal by British Businessman, Sanjeev Gupta owned GFG Alliance. The Scottish Government officials stated, “There was extensive security on the deal and they were more than covered.” However, the Public Audit Committee at Holyrood was informed that the government’s financial exposure scaled to £161 million in 2021 from £37 million in 2020. The ministers of the government delivered a financial commitment to the GFG Alliance, the new buyer of the aluminium smelter at Fort Willian in 2016. Even so, the main lender of GFG Alliance, Greensill Capital, collapsed in 2021. Colin Cook,...
