AL Circle Analysis: Aluminium’s recycling economics, trade walls and carbon rules converge
The story of the aluminium industry is starting a chapter wherein scrap availability, recycling technology, trade policy, carbon costs and demand growth are becoming increasingly interconnected. From the US and Canada to Europe, India, New Zealand and China, recent developments show that the global aluminium supply chain is being reshaped on several fronts at once. These developments point to a changing aluminium business model: access to metal alone may no longer be enough. Quality of recycled feedstock, domestic processing capacity, carbon intensity, trade exposure and the ability to meet increasingly specific customer requirements could become equally important competitive factors. Join the fourth edition of the webinar “Hedging for recyclers - Become an expert in 6 hours” by Jorge...
Europe holds 10% of global aluminium extrusion demand, supported by Germany’s Constellium, France’s Hydro Extrusions & Italy’s Metra
Across Europe, aluminium extrusion has become closely woven into some of the region’s biggest industrial and construction markets. From automotive and transport to buildings and industrial applications, extruded profiles are finding demand across a wide range of sectors. This is reflected in Europe’s position in the global market: the region accounted for 12 per cent of global aluminium extrusion capacity, making it the second-largest regional contributor after China. At the same time, Europe represented 10 per cent of global aluminium extrusion usage, out of total global usage of 35.35 million tonnes . With production capacity and usage shares relatively close, Europe’s extrusion capacity and consumption are broadly at par. If we break down Europe’s 10 per cent share of global aluminium...
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More demand for aluminium foil for flexible packaging in Europe
First quarter results for aluminium foil deliveries from European suppliers showed positive growth in domestic demand, after a sustained period of mixed or declining results. Exports, however, remain under pressure due to strong competition from non-European producers, the European Aluminium Foil Association EAFA reported. Overall the first three months of 2016 saw a small decline of 0.6 per cent in total tonnage to 217,000, compared with 218,500t for 2015, according to the latest figures released by the association.
Aluminium semis exports from China still down despite MoM increase in May
According to numbers recently released from the People’s Republic of China, aluminium semis exports rose in the month of May by 1.4 per cent month-on-month and 2.9 per cent year-on-year. The rise to 374,000 metric tons of exported semis is attributed to a corresponding rise in flat-rolled products by 5 per cent month-on-month to 155,000 metric tons, and aluminium foil exports by 6 per cent month-on-month to 102,000 metric tons. Extrusions went up as well by 5 per cent year-on-year to 102,000 metric tons. Net exports of aluminium semis have fallen overall between January and May (inclusive) by 8.8 per cent year-on-year to 1,680,000 metric tons, down from 1,814,000 metric tons in January through May of last year. However, when compared to last month, net exports rose slightly, by 0.7 per...
When will China aluminium stocks enter turning point? SMM reports
Aluminium stocks in China’s five major markets have been falling steadily, though the pace has slowed down significantly. Market is now most concerned with when stocks will begin growing. Aluminium capacity is being restarted, albeit slowly. Aluminium ingot shipments from northwest China will keep growing. Downstream producers will reduce stocks in the fourth week of June against falling orders, which will significantly hurt demand for both aluminium ingot and aluminium liquid. Based on current pace of aluminium ingot shipments from northwest China, SMM sees a good chance for stocks to begin increasing after the second week of July. Aluminium stocks in China’s five major markets, which were 406,000 tonnes as of June 16, will continue falling slightly before the first half of July, SMM...
Alumina prices to extend declines on changing supply & demand picture
Alumina prices in China will keep falling as the market is gradually turning from shortfall to surplus, SMM predicts. The pace of capacity restarts and new capacity commissioning in alumina industry is faster than in aluminium industry because alumina production is more flexible than aluminium production. This will turn alumina shortage into oversupply, SMM explained. SMM, based on our forecast for alumina and aluminium output in June, expects alumina supply deficit to ease further in June.
Alcoa in maiden bauxite shipment
Alcoa has loaded its first shipment of WA bauxite destined for a Chinese alumina refinery, describing the event at Kwinana today as a milestone moment. The 47,000 tonne parcel of bauxite, from the Alcoa of Australia joint venture’s Darling Range mines, is the start of an export trial approved by the WA Government. Alcoa wants to test the viability of exporting some of its massive bauxite reserves, which traditionally have been used exclusively to feed its alumina refineries at Kwinana, Wagerup and Pinjarra. With more bauxite than it needs for its refineries, Alcoa wants to cash in on third-party bauxite demand, predominantly in China, that is thought to be worth up to 70 million tonnes a year. Alcoa Mining president Garret Dixon, said today’s milestone shipment supported the company’s...
Aluminium frame structure contributes to WonderFrame's sustainable ICEhouse building concept
According to a UN Report published last year, the current world population of 7.3 billion is expected to reach 8.5 billion by 2030, 9.7 billion in 2050 and a whopping 11.2 billion in 2100. Already, says WWF, it takes a year and a half to generate the resources that the human population uses in only a year. The challenge to accommodate this burgeoning population while reducing humanity’s footprint is a major one. What this growth in any case will require are trillions of dollars of new infrastructure. And this will drive the construction industry to seek solutions for sustainable materials and innovative techniques to enable the building of affordable, energy-efficient houses while contributing to the smart use of global resources based on circular-economy principles. William McDonough +...
Cornell Dubilier introduces hermetic aluminium electrolytic capacitor
Cornell Dubilier Electronics (CDE) has introduced the Slimpack, type MLSH, the first in a series of hermetically-sealed aluminium electrolytic capacitors that the company plans to introduce over the next several months. With its glass-to-metal seal that prevents dry-out, the capacitor technology has extraordinarily long life to meet the most demanding applications for defence and aerospace applications, says the company. The hermetic Slimpack is a spin-off of the company’s established hermetic Flatpack series. The company expects this technology to replace parallel and series banks of wet tantalum capacitors for new and existing designs, especially where bulk storage is paramount. According to the company, the aluminium MLSH Slimpack measuring 1 x 1.5 x 0.5 inches will weigh less and will...
Kirkby Tyres launches Accuride forged aluminium wheels for the European market
Kirkby Tyres, “one of the largest stockists of truck trailer and industrial wheels in the UK and Ireland," is introducing Accuride forged aluminium wheels for the European market, a brand that occupies top supply positions to American OEMs. The long established brand, manufactured in USA for over 40 years, is available in machined finish, polished finish and Accushield – an easy clean, wash-off, no-polish finish. Based in Liverpool and Dublin, Kirkby holds a large stock of steel and aluminium wheels for most applications, with popular sizes manufactured and tested to ETRTO and TÜV standards. It is also a major supplier of wheels for agricultural applications. Tony Rosenthal, general manager – OE, explains, “Kirkby can supply wheel to fit all the sizes of tyres in their extensive range to...
Global metal packaging market showing signs of revival as aluminium premiums soften
The global metal packaging industry has shown some signs of revivals as aluminium premium and tinplate prices have softened, though the market has still not been fully out of doldrums. Matured metal packaging markets exhibited stable growths at low levels, while emerging markets benefited from swift shifts towards the high-growth plateau. However, some of these high growth markets remained more fragmented in terms of the competitive landscape which rendered producers less control on margins. For instance, almost all multinationals cans manufacturers in China are currently struggling to make profits due to numerous reasons including overcapacity and a peculiar cost-profit relationship in the market. However, the overcapacity problem does not only exist in China but also in more matured...
ITA rescinds DOC's request for Chinese extruders
<p>The International Trade Administration (ITA), last week, rescinded the Department of Commerce’s (DOC) request to 124 Chinese extruders to participate in the 2014 Administrative Review. One of the companies which were reached out by the DOC was Zhongwang.<br /><br /> The action was customary and a routine process by the DOC. Every year it sends notices and requests to Chinese extruders inviting them to participate in that year’s administrative review. All of those that do not respond to that invitation (or respond in the negative) will have that offer rescinded by a certain date as a matter of protocol. For the DOC this is their way of closing the books on which companies are reviewed.<br /><br /> It has no bearing on circumvention or scope cases.<br /><br /> The DOC...
Chinese aluminium exports increase even as oversupply remains
Excess aluminium production in China is damaging the prospects of aluminium producers in the rest of the world, purely because of the size of China’s massive aluminium industry, observed analysts at MetalMiner. As prices on the Shanghai Futures Exchange have risen this year, idled smelters have restarted and new capacity has continued to come on-stream. Annualized run rates increased by almost 650,000 mt over the course of April and May, Reuters reports, with May’s average daily output of 86,290 mt the highest since November 2015 before prices fell below $1,518 (10,000 yuan). The other factor apparently effecting Beijing’s attitude is the rapid rise in capacity is coming from new state of the art low cost aluminium smelters in China’s Northwestern provinces. Aluminium is not seen as an...
Alumina Ltd firm on seeking relief from Alcoa's 'confidentiality clauses'
The legal war between Alcoa Inc and Alumina Limited centred on the former’s strategic decision to subdivide itself has reportedly intensified. In a recent development, Alumina has sought relief from the confidentiality clauses attached to information provided by Alcoa in the wake of the aluminium giant’s move to the courts to avert Alumina’s claim that a bank of pre-emptive rights would be triggered by the act of separation. Alcoa, last September, confirmed plans to split into Upstream and Value-Add, hi-tech businesses in due course of time. Part of the upstream division is a bauxite and alumina business called Alcoa World Alumina and Chemicals (AWAC). Its 60 per cent stakes are owned by Alcoa while the balance is owned by Australian listed Alumina. Alcoa operates the business and...
i.materialise unveils their latest metal-based 3D printing material: Aluminium
3D printing service bureau i.materialise has introduced a new member to their 3D printing material family: aluminium. This is the freshest addition to Belgium-based company's 3D printed metal roster, which includes titanium and steel. 3D printing service bureau boasts an extensive list of material options comprising 21 different materials and over 100 color and finish combinations. The newly unveiled 3D printed aluminium is ideal for producing parts that are strong and lightweight, particularly useful for functional and spare parts, as well as jewelry. The 3D printed aluminium that i.materialise is now offering has a slightly more matte appearance in comparison to traditionally milled aluminium, and is a bit rougher around the edges too. To print their new aluminium material, the 3D...
Global aluminium pigments market to reach $581.9 mln by 2024
Global aluminium pigments market was valued at $332.9 million in 2015 and is anticipated to reach $581.9 million by 2024, expanding at a CAGR of 6.4 percent between 2016 and 2024, as per the latest Industry Study. Aluminium pigments are employed widely in paints and coatings, plastics, personal care, printing inks, and construction materials. Consumer preference for high performance aluminium pigments with attractive aesthetic features has been rising significantly of late. Aluminium pigments are widely employed in the formulation of automotive paints & coatings to enhance their aesthetic properties. Automotive OEM coatings, automotive interior coatings, wheel coatings, automotive parts and accessories, and automotive refinishes are the major areas where aluminium pigments are used....
Chalco and Baosteel sign automotive aluminium sheet cooperation framework
Chalco and Baosteel Group signed a cooperation framework agreement on June 17 over automotive aluminium sheet, the China Nonferrous Metals Industry Association (CNIA) said on its website. According to the agreement, both sides will establish a joint venture in the future to jointly develop, produce and sell automotive aluminium sheet. The move will be a win-win for Chalco, which has strong technical strength and rich experience in precision aluminium plate/sheet, strip production, and Baosteel Group, which enjoys big market share in high-end automotive steel sheet.
SHFE aluminium to consolidate at highs
SHFE 1608 aluminium will consolidate at highs of RMB 12,250-12,400/mt today, with eyes on UK referendum. LME aluminium will move at highs of USD 1,625-1,645/mt. In China’s spot aluminium market, spot premiums of RMB 90-130/mt are expected over SHFE 1607 aluminium contract. Key macroeconomic indicators for base metal prices Market will eye June manufacturing PMIs from the euro zone and US and US new home sales today. With UK referendum just around the corner, market caution will intensify. France’s manufacturing PMI might remain below 50 in June, which will be a drag on manufacturing in the euro zone. Manufacturing PMIs in Germany and the euro zone are expected to continue rising. New York and Philadelphia Fed manufacturing indexes for June were positive. US manufacturing PMI pointed to...
LME aluminium still targets $1,648
LME aluminium still targets $1,648 per tonne, as it has been hovering above a resistance at $1,624 after breaking it. The resistance was provided by the 86.4 percent Fibonacci projection level of an upward wave C, the third wave of a three-wave cycle from the Nov. 23, 2015 low of $1,432.50. The next resistance will be at $1,648, the 100 percent level, a break above which could lead to a gain to the 114.6 percent level at $1,673. A break below $1,624, now a support, could cause a loss to the 76.4 percent level at $1,607.
Aluminium Bahrain seeks $750 mln loan for expansion
Aluminium Bahrain has approached banks for a $750 million loan towards the financing of its Line 6 expansion project, reported industry sources on Tuesday, June 21. Alba will become the world's largest single aluminium smelter complex, boosting its annual output by 540,000 tonnes to 1.5 million tonnes per year by adding the sixth "potline", used in producing the metal from raw materials such as bauxite. Production from the facility is expected to start in early 2019 and Alba is raising around $3 billion to help finance the scheme, through a mixture of loans from banks and export credit agencies and an international bond or sukuk issue. Alba had initially targeted $3.5 billion, but this was cut back due to lower oil and commodity prices, it said last month. The first stage of this...
