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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The primary aluminium segment of the global aluminium industry has remained quite eventful this week. LME aluminium cash bid price spiked by US$12 per tonne or 0.36% to close at US$3,292 per tonne on 17 th February 2022. India’s NALCO aluminium ingot price has seen a surge of INR 5,400 per tonne to range between INR 280,450-283,950 per tonne. The diversified mining company, South32 booked pretax profit for the six months to December 21, from pursuing operations of $1.46 billion, soaring from just $155 million from the previous year. The CEO of Ghana Integrated Aluminium Development Corporation (GIADEC) stated there has been a significant rise in demand and price of aluminium on the world market. According to the Shanghai Metals Market, China’s aluminium production in January (31 days)...
Hindalco Industries Limited increased its aluminium products and aluminium ingot prices on Thursday, February 17, following a cut on the previous day. The company raised its aluminium billets price by INR 2,500 per tonne to bring it to INR 295,850 per tonne versus INR 293,350 per tonne on February 16. Hindalco’s aluminium wire rod price also underwent an increase of INR 2,500 per tonne with effect from February 17 from INR 290,350 per tonne on February 16 to INR 292,850 per tonne. Aluminium ingot price came in at INR 281,750 per tonne, up by INR 2,500 per tonne as well from INR 279,250 per tonne on the previous day. Hindalco links its aluminium ingot and aluminium products prices to the three-month future of aluminium on the London Metal Exchange, which grew by US$59 per tonne on February...
ALVANCE British Aluminium, a global integrated aluminium business and the international aluminium division of the GFG Alliance, has reportedly received ASI Performance Standard certification with Provisional status for its smelting and casting operation at Lochaber, Scotland. The news came after Aluminium Stewardship Initiative (ASI) announced that it certified ALVANCE for responsible production, sourcing, and stewardship of aluminium. Aluminium slab products manufactured at ALVANCE Lochaber smelter are destined for multiple downstream sectors in the United Kingdom and Europe. The products have a low carbon footprint as the plant is powered by hydroelectricity. The smelting operations at Lochaber have an annual capacity of 50,000 tonnes of primary aluminium. Upon receiving the...
According to the Shanghai Metals Market, China’s aluminium production in January (31 days) 2022 stood at 3.204 million tonnes, 3.6 per cent more month-on-month. The daily average output came in at 103,000 tonnes, up 1,000 tonnes per day from the previous month. In January, the proportion of aluminium and aluminium liquid was about 64.2 per cent, 1.3 per cent less than in December 2021 but 0.8 per cent than in January 2021. The operating capacity of domestic aluminium continued to rise in January 2022, primarily contributed by Yunnan, the east Inner Mongolia, Guizhou, Shanxi and other places. At the end of January, the operating capacity stood at 38.38 million tonnes, an increase of 680,000 tonnes from December. The installed capacity was 43.97 million tonnes. In February (28 days),...
The TVS Group promoted, Wheels India Limited, India’s largest auto component manufacturer of wheels for commercial vehicles in an astute strategy that compels the company to view more externally, the company is aiming towards strengthening its export contribution to one-third of its sales. Wheels India’s exports were just only 16% of its entire sales five years ago, while presently it is at 23% of sales. According to our sources, it has been revealed, “The export focus is a strategy to ‘de-risk the India business’ and Wheels India is focussing on three segments in particular — aluminium wheels, windmill parts and off-highway category. There is also some potential in commercial vehicles, but that is more long-term.” The Group during this fiscal has invested heavily in the capacity to reach...
The Finance Ministry has prolonged the anti-dumping tariff on Chinese imports of 'aluminium foil' (5.5 micron to 80 micron) until June 15. This comes after the Directorate General of Trade Remedies (DGTR) launched a sunset review inquiry against China's anti-dumping tax on "aluminium foil" (5.5 micron to 80 micron) in September 2021. On behalf of domestic industry, Hindalco Industries, Raviraj Foils, and Jindal India filed an application seeking the continuation of anti-dumping duties on "aluminium foil" imports from China. The petitioners claimed that dumping from China had continued even after the installation of anti-dumping duties, and that dumping and harm were likely to continue or recur if the duties were lifted. It may be noted that on May 16, 2017, the Finance Ministry imposed a...
As per the US Geological Survey, the United States exported 4,530 tonnes of US aluminium scrap in November to Russia. On a month-on-month scale, there was a hike of 1,230 per tonne or 37.27%. In October 2021, 3,300 tonnes of US aluminium scrap was exported to Russia, showing a slump of 40 tonnes from 3,340 tonnes in September 2021. On a year-on-year calculation, US aluminium scrap exported to Russia in November 2021 dropped by 2,810 tonnes or 38.28% from 7,340 tonnes in November 2020. From January to November, the exported aluminium scrap to Russia settled at 50,400 tonnes. For the same period last year, the amount scored at 28,800 tonnes. Based on the data from the USGS, the total amount of plates, sheets, bars, crude metals and alloys, and scrap, exported to Russia for November 2021...
On Thursday, February 17, AMAG Austria Metall AG announced its FY2021 financial results, reporting record earnings and growth in revenue due to stable production, high productivity, and attractive market environment in the primary aluminium sector. Revenue in the entire year stood at EUR 1,259.4 million compared to EUR 904.2 million in FY2020, owing to increased shipment volumes and higher aluminium prices. Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood 70 per cent higher year-on-year at EUR 186.2 million in FY2021 versus EUR 108.2 million a year earlier, thereby resulting in a new high in AMAG’s history. The growth in shipment volumes in all AMAG divisions and product mix optimisations at the Ranshofen site are major drivers for this record. Net income...
In its recent half-year results, Orora, one of Australia's main packaging suppliers, recorded increase in sales and profits from ordinary activities, despite the impact of rising aluminium prices on its Australasian business. The firm, which manufactures aluminium cans and glass bottles, reported $2 billion in revenue for the half year ended December 31, up from $1.8 billion the previous year. The company's overall net profit, which includes its Australasian and North American businesses, increased by 12.9% to $102.7 million after tax and before significant items. Earnings before substantial items, interest, and tax in its Australian company, on the other hand, fell by 2.3 percent to $84 million from $86 million. Revenue in its Australasian division increased slightly to $443.2 million...
Hydro Extrusion, part of Norway headquartered Norsk Hydro Group is supplying flawless aluminium tubing which is applied in the frame of the cab in the all-electric F-150 Lightning. The world-leading aluminium extrusion business, Hydro began supplying aluminium components with the 2015 model year F-150 and that pursues with the up-next 2022 F-150 Lightning. Charlie Straface, the Senior Vice President of Hydro Extrusion North America business unit said, “As an industry leader, our ability to collaborate with manufacturers throughout the entire product lifecycle, from development to launch, truly sets us apart.” "We are proud of our longstanding relationship with Ford and the work we have done on the new and challenging components in this groundbreaking vehicle." Being a part of this...
LME aluminium opened at US$3,250 per tonne on Thursday and closed at US$3,258 per tonne, an increase of US$8.5 per tonne or 0.26%. On Thursday, February 17, LME aluminium cash bid price hiked by US$12 per tonne or 0.36% to close at US$3,292 per tonne. On the other hand, LME aluminium official settlement price also soared up by US$12 per tonne or by 0.36% to peg at US$3,294 per tonne. 3-month bid price and 3-month offer price scored at US$3,240 per tonne and US$3,241 per tonne. December 23 bid price and December 23 offer price recorded at US$2,832 per tonne and US$2,897 per tonne, for the same day. LME aluminium opening stock came in at 855525 tonnes. Live warrants and Cancelled warrants totalled at 566300 tonnes and 289225 tonnes. LME aluminium 3-month Asian Reference Price also closed at...
National Aluminium Company Limited has further expanded its aluminium ingot and aluminium products prices, with effect from Thursday, February 17. The company’s aluminium ingot price has seen a hike of INR 5,400 per tonne to range between INR 280,450-283,950 per tonne. On February 9, the price had witnessed a surge of INR 14,500 per tonne to INR 275050- 278550 per tonne. NALCO’s aluminium wire rod price has experienced no exception but an increase of INR 5,400 per tonne from INR 277,550- 281,900 per tonne on February 9 to INR 282,950-287,300 per tonne on February 17. Aluminium billets price has come in at INR 283,900-286,550 per tonne versus INR 278,500- 281,150 per tonne over a week ago. NALCO links its aluminium ingot and aluminium products prices to the three-month futures of aluminium...
The ASI Chain of Custody Standard had been accredited at both of Hydro Extrusion Italy's aluminium production factories in Feltre and Ornago. Each location has also been recertified in accordance with ASI's Performance Standard. The Aluminium Stewardship Initiative (ASI) aspires to see sustainability and human rights values become more deeply ingrained in supply chains. Its Performance Standard acknowledges appropriate aluminium production, procurement, and management. The Chain of Custody (CoC) Standard specifies the standards for establishing a chain of custody for CoC material, such as ASI Aluminum, as it moves through the value chain to downstream industries. It not only certifies the locations and their operations, but it also certifies the actual metal they process when it comes...
The aluminium billet inventories in China decreased by 2,900 tonnes or 1.08% week-on-week across five major consumption areas. As a result, the inventories closed at 264,000 tonnes, as of Thursday, February 17. Foshan's inventory declined the most by 8,700 tonnes or 6.45%, followed by Nanchang's stockpile, which fell by 6,300 tonnes or 25.71%. Because of the COVID epidemic in Guangxi, arrivals in south China were limited, resulting in contested logistics in Foshan. Meanwhile, the RCs rebounded, prompting in increased purchases over concerns about potential supply shortages. In Nanchang, the warehouses reported fewer arrivals, and shipments leaving the warehouses were equally slow. Shipments to other markets were also less than adequate since downstream manufacturing has not yet completely...
On 17 th February 2022, the mining and metals company, South32 with its headquartered in Perth, Western Australia reported a bumper first half with a 57% rise in revenue propelling profit surge, although the operational challenges remain. The diversified mining company booked pretax profit for the six months to December 21, from pursuing operations of $1.46 billion, soaring from just $155 million from the previous year. This exhibited a 57% jump in revenue to $3.65 billion from $2.32 billion. The Company stated, “South32's operating margin rose to 44% from 24% the year before, thanks to strong production and high operating leverage.” Graham Kerr, the CEO of South32 said, “Our business is in excellent financial health and we have continued to reshape our portfolio, with the planned...
According to the Shanghai Metals Market, social inventories of primary aluminium in China have built-up by 90,000 tonnes week-on-week across eight major consumption areas, including SHFE warrants. Data shows the inventories have thus, come in at 1.04 million tonnes as of Thursday, February 17, mainly contributed by Wuxi, Gongyi, and Nanhai. Last week, on February 10, China’s primary aluminium inventories stood at 950,000 tonnes, seeing a hike of 84,000 tonnes from the previous week. The chart below indicates the current status of primary aluminium inventories across China in more details: In Wuxi, primary aluminium inventories have increased by 42,000 tonnes on February 17 to come in at 375,000 tonnes, followed by the rise of 24,000 tonnes in Gongyi to 164,000 tonnes. On the other hand,...
On Tuesday, February 15, ASI welcomed Huanghe Xinye Co., Ltd. as its new production and transformation member, making the total count of ASI members to 213. The Yellow River Upstream Hydropower Development Co., LTD is a wholly-owned subsidiary of Huang Hexin Industry Co., LTD, which is also the national electric power investment group co., LTD. The industrial cluster in the Qinghai region, which is extending the industrial chain and is an important project in promoting the coordinated development of industry integration strategy, now has an annual output of 300,000 tonnes of 600,000 tonnes of electrolytic aluminium, carbon capacity, and a total investment of 7.493 billion yuan. The firm began building in March 2008, and the major processes were finished and placed into service in stages...
Hindalco Industries Limited chopped its aluminium ingot and aluminium products prices on Wednesday, February 16, following a hike of INR 9,500 per tonne on the previous day. With effect from February 16, Hindalco’s aluminium ingot price was cut by INR 6,250 per tonne from INR 285,500 per tonne on February 15 to INR 279,250 per tonne. Hindalco’s aluminium wire rod price also saw a slash of INR 6,250 per tonne, with effect from February 16, from INR 296,600 per tonne to INR 290,350 per tonne. Aluminium billets price came in at INR 293,350 per tonne as of February 16 versus INR 299,600 per tonne on the previous day. 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$83 per tonne on February...
