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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According to the Shanghai Metals Market, social inventories of primary aluminium have totalled 1.1 million tonnes, gaining 60,000 tonnes week-on-week across eight major consumption areas, including SHFE warrants. The smelters and traders were highly willing to make shipments, but the downstream demands were suppressed by increased aluminium prices. The rise in inventories was mainly contributed by Gongyi, Wuxi, and Nanhai, found the Shanghai Metals Markets. The chart below indicates the current status of primary aluminium inventories across China in more details: In Gongyi, primary aluminium inventories have built up by 25,000 tonnes week-on-week to come in at 189,000 tonnes, followed by the hike of 20,000 tonnes in Wuxi to 395,000 tonnes. In Nanhai, primary aluminium inventories have...
The aluminium billet inventories in China dropped by 4,000 tonnes or 1.5% week-on-week across five major consumption areas. As a result, the inventories recorded at 260,600 tonnes, as of Thursday, February 24. Some popular aluminium extruders have begun to resume work this week, while the others will return to work by the end of February or early March. Because market demand is likely to stay stable, inventories of aluminium billets are expected to decrease somewhat. The chart below indicates the current status of aluminium billet inventories across China in more details: In Foshan, the aluminium inventories declined by 1,300 tonnes this week to peg at 124,900 tonnes. For the same day in Wuxi the aluminium inventories dropped by 200 tonnes to settle at 60,900 tonnes. In Changzhou the...
According to the International Aluminium Institute data, world primary aluminium production in January 2022 stood at 5.513 million tonnes, 0.36 per cent less than 5.533 million tonnes a month ago. However, the output in December was 2.10 per cent higher month-on-month from 5.419 million tonnes. On a year-on-year calculation, world aluminium production in January 2022 recorded a decline of 4.45 per cent from 5.770 million tonnes. China, the world’s leading primary aluminium producer, churned out 3.1 million tonnes of primary aluminium in January 2022, down by 0.29 per cent from 3.109 million tonnes in December 2021 and 7.82 per cent less than 3.363 million tonnes in January 2021. In the entire year of 2021, China’s primary aluminium production totalled 38.837 million tonnes. In the Gulf...
Hindalco Industries Limited has slashed its aluminium ingot and aluminium products prices, with effect from Thursday, February 24, following a significant increase on February 23. As per the pricing published by Hindalco, the company’s aluminium ingot price has come in at INR 283,500 per tonne, down by INR 8,750 per tonne or 3 per cent from INR 292,250 per tonne. Hindalco’s aluminium wire rod price has also experienced a cut of INR 8,750 per tonne on February 24 from INR 303,350 per tonne to INR 294,600 per tonne. Aluminium billets price is standing at INR 297,600 per tonne versus INR 306,350 per tonne. Hindalco links its aluminium ingot and aluminium products prices to the three-month future of aluminium on the London Metal Exchange, which shrank by US$96.50 per tonne on February 23 to...
The leading tube packaging manufacturer has become the first company of its kind to signs a deal with Saperatec, the world’s pioneer industrial recycling plant for aluminium laminate composites. The Saperatec pilot plant in Dessau, Germany has already demonstrated the capability to break down multilayer composite materials such as PE/AI into their individual materials. Neopac is a renowned manufacturer of tubes for pharmaceutical, cosmetics and dental industries, will supply its production waste to Saperatec’s industrial separation facility upon its opening in mid-2023. However, by applying a special washing technique, Saperatec splits plastic and aluminium layers without solvating them. During a laboratory study at Saperatec in 2021on various ABL tubes from Neopac demonstrated that the...
A catastrophic scarcity of aluminium in Europe has caused regional prices to skyrocket, presenting chances for commodity traders who have pounced on once-in-a-lifetime opportunity to profit by exporting metal from warehouses 6,000 miles away. According to two persons aware of the cargoes, some significant trading firms have lately loaded aluminium from Malaysia's Port Klang into break-bulk boats bound for Europe. It's a trade that would normally be extremely unprofitable, but the high expenses are mitigated by the higher prices that European purchasers are prepared to pay for metal. Another indicator that European customers are running out of one of the world's most commonly used industrial commodities is the unique trade flow. Stockpiles throughout the world have declined considerably,...
According to a recent report, Novelis Korea Limited, subsidiary plant of Novelis in Yeongju, has secured the ASI Chain of Custody Standard certification for manufacturing aluminum and aluminum coil and sheet, which includes the processes of recycling and remelting. The plant, which has an annual capacity of 340,000 tonnes of aluminum recycling, recycles 18 billion used beverage cans each year. Earlier in November 2021, the facility achieved the ASI Performance Standard Certification. Sachin Satpute, President of Novelis Asia, said: “By achieving the dual certification, our Yeongju plant has now been independently certified to comply with ASI standards, demonstrating that the sustainable aluminum solutions we provide to our customers are responsibly sourced and produced. These...
According to the US Geological Survey (USGS), the United States imported 4,230 tonnes of US aluminium plates, sheets and bars from Vietnam in November, showing a month-on-month drop of 130 per tonne or by 2.98%. In October 2021, 4,360 tonnes of US aluminium plates, sheets and bars were imported from Vietnam, showing a growth of 880 tonnes from 3,480 tonnes in September 2021. On a year-on-year calculation, US aluminium plates, sheets and bars imported from Vietnam in November 2021 escalated by 1,710 tonnes or by 67.85% from 2,520 tonnes in November 2020. From January to November, the imported aluminium plates, sheets and bars from Vietnam, in November 2021 closed at 37,500 tonnes. For the same period last year, the amount pegged at 21,300 tonnes. As per the data shared by the USGS, the...
The anticipation of sanctions is on the fear radar of one of Australia’s largest alumina refineries, Queensland Alumina Limited (QAL). The alumina refinery is majorly owned by Rio Tinto, who has alerted of an emerging turmoil to its aluminium business, while the Russian aluminium giant Rusal is the 20% stakeholder of QAL. The Gladstone, Australia based Queensland Alumina Limited operates a refinery, which was earlier been imposed with US sanctions in 2018. However, there has been no comment yet from QAL in regards to the sanctions or if any impact they are countering or predicting for the company. Notwithstanding, on 23 rd February 2022, the 80% stakeholder of QAL, Rio Tinto, has informed the investors that it was anxious about the soaring tensions, that is developing very tough...
The average alumina spot price in China has plunged by RMB 42 per tonne to score at RMB 3,236 per tonne on Thursday, February 24, found the Shanghai Metals Market. In Shandong, alumina price has nosedived by RMB 90 per tonne to come in at RMB 3,205 per tonne, while the price in Shanxi and Henan has decreased by RMB 50 per tonne and RMB 40 per tonne to peg at RMB 3,200 per tonne and RMB 3,275 per tonne, respectively. In Guizhou, on the other hand, alumina spot price has inched down by RMB 10 per tonne to stand at RMB 3,290 per tonne, with average prices likely to range between RMB 3,280 per tonne and RMB 3,300 per tonne. The Australian alumina FOB price has, however, continued to remain restrained at US$425 per tonne, learned SMM. But despite the sharp fall in alumina spot price, A00...
Three-month LME aluminium opened at US$3,305 per tonne on Wednesday morning in European trading hours, and lost US$9 per tonne or 0.27% to close at US$3,294 per tonne. On Wednesday, February 23, LME aluminium cash bid price slipped by US$96 per tonne or 2.80% to peg at US$3,323 per tonne. For the same day, LME aluminium official settlement price also dipped by US$96.5 per tonne or 2.82% to register at US$3,323.50 per tonne. 3-month bid price and 3-month offer price settled at US$3,288 per tonne and US$3,290 per tonne. December 23 bid price and December 23 offer price stood at US$2,975 per tonne and US$2,980 per tonne. LME aluminium opening stock scored at 833900 tonnes. Live warrants and Cancelled warrants recorded at 570525 tonnes and 263375 tonnes. LME aluminium 3-month Asian Reference...
The distressed metal tycoon, Sanjeev Gupta's GFG Alliance owned UK's last aluminium smelter has stated that investment plans for the Lochaber-based factory are on track, despite concerns that they have failed to publish accounts for their Highlands firms. As it concludes accounting for Alvance British Aluminium and its power plant, Simec Lochaber Hydropower, GFG Alliance, which bought the 90-year-old smelter and its hydropower facility from mining and metal giant Rio Tinto in a whopping £330 million transaction in 2016, risks fines. Alvance is about 11 months late reporting its accounts for the year ending March 2020, according to Companies House data, while the group is more than six months late filing for different corporate entities linked with the hydropower sector. Companies are...
Ball Beverage Packaging India, a leading producer of infinitely recyclable aluminium beverage cans, today welcomed the move by FSSAI (Food Safety and Standards Authority of India) to pave the way for packaging drinking water in non-transparent packaging solutions like Aluminum Beverage Cans. This will not only address issues on the sustainability front and contribute to the Government’s initiative to regulate single-use plastics but also provide the end consumer an eco-friendly alternative. The Aluminum Beverage Can manufacturers had written to FSSAI to make necessary regulatory changes in the Food Safety and Standards (Packaging) Regulations 2018 for Packaged Drinking Water. This was in line with the recommendation by the Hon’ble National Green Tribunal (NGT) on the suggestions made by...
Following the succession of diplomatic entries to the Kremlin over the past few weeks, in regards to the standoff between Russia and Ukraine steering a manifestly dangerous whirl with the progress by Vladimir Putin, the Russian President to count that the Ukrainian regions of Donetsk and Luhansk will become independent republics. However, the European Union and the United States are concluding their first round of economic sanctions and more wide-ranging sanctions will be clasp in reserve to be applied if Russia progresses further with armed aggression against Ukraine. Now, looking at the circumstances, the Irish businesses are dismayed over the financial sanctions against Russia that will unsettle their supply chains, at a moment when international shipping was already depressed due to...
Freight prices may continue high for the remainder of 2022, eroding margins that helped Alumina Limited post a more than 28% increase in annual earnings last year. The net profit for the year ending December 31 increased to $US187.6 million ($260.7 million) from $US146.6 million the previous year. Alumina Limited will pay a final dividend of US2.8, down from US2.9 last year. The only asset Alumina Limited has is a 40% investment in AWAC, which controls a global portfolio of bauxite mining, alumina refineries, and an aluminium smelter in Portland, Victoria. AWAC reported an increase of 11% in yearly profit to $US443.8 million, boosted by record aluminium prices but hampered by higher freight costs. Due to COVID-19-induced supply chain bottlenecks and interruptions, the cost of exporting...
On 22 nd February 2022, the Norwegian aluminium giant, Norsk Hydro has announced that it has picked up a minority stakeholding in the US carbon capture firm Verdox for $20 million and projects to utilize its technology at aluminium smelters in a drive to down emissions. The leading aluminium producer, Hydro however announced that plans in 2021 to axe its carbon dioxide (CO2) emissions by 30% during this decade, which will navigate the company to attain net-zero by 2050 at the latest, in compliance with the 2015 Paris climate agreement delineated to restrict global warming. Eivind Kallevik, the Head of Hydro’s Aluminium Production Division said, “More and more customers are requesting metals produced with a smaller carbon footprint. The ultimate goal here is to deliver zero emissions from...
According to the US Geological Survey, the United States exported 4,000 tonnes of US aluminium scrap in November to Taiwan. On a month-on-month scale, there was escalation of 320 per tonne or 8.69%. In October 2021, 3,680 tonnes of US aluminium scrap was exported to Taiwan, showing a hike of 1,200 tonnes from 2,480 tonnes in September 2021. On a year-on-year calculation, US aluminium scrap exported to Taiwan in November 2021 soared up by 80 tonnes or 2.04% from 3,920 tonnes in November 2021. From January to November, the exported aluminium scrap to Taiwan closed at 29,700 tonnes. For the same period last year, the amount totalled at 39,000 tonnes. Based on the data from the USGS, the total amount of plates, sheets, bars, crude metals and alloys, and scrap, exported to Taiwan for November...
The largest renewable energy of New Zealand, Meridian Energy’s Chief Executive Officer, Neal Barclay has unbolted the door to negotiations, which might drive Rio Tinto’s Tiwai Point aluminium smelter to remain functional for at least another 12 years considering 2034. On 23 rd February 2022, while reporting the company’s interim results, Neal Barclay said, “Meridian was still working on the assumption it would stop supplying power to the aluminium smelter (NZAS) when its current contract came to an end in December 2024.” He further added, “There were no current discussions with the smelter on a new electricity contract.” However, speaking to an analyst during a conference call, he firmly unlatched the doors for discussions, saying “Meridian was certainly not averse to having discussions....
