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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EGA to launch construction of 12 mtpa bauxite mine in Guinea
Emirates Global Aluminium (“EGA”) will begin construction on a major bauxite mine in the Republic of Guinea, to secure supply of the high-quality raw material for its primary aluminium production facilities in the United Arab Emirates and create a new, substantial revenue stream through significant exports to Asia. EGA announced it has received final approval from its Board of Directors to launch the first phase of the mine, to be managed through its subsidiary, Guinea Alumina Corporation (“GAC”). The project will develop an initial 12 million tonnes per annum (Mtpa) bauxite mine in the Republic of Guinea, where the company holds a concession on more than 1 billion tonnes of bauxite. The project will also include the construction of a dedicated export terminal at Port Kamsar and upgrades...
Price rise of commodities such as aluminium likely to affect profitability of Indian auto part makers
Automobile parts makers will face the heat of rising commodity prices in the coming quarters. After all, in the last six months, steel prices, the key input for most auto components, rose by about 36 per cent. Aluminium and copper prices too gained across major global markets. All this means higher input costs. Logically, this will translate into higher expenses and lower profitability. An Icra Ltd report analysing 48 large-sized auto component firms shows the positive correlation in the last eight quarters. In the June quarter of fiscal year 2015, when raw material (steel, aluminium, copper) costs comprised 61.1 per cent of sales, the operating margin was 13.6 per cent. Seven quarters later in March 2016, when raw material costs fell sharply to 56.8 per cent of sales, the operating...
Spectre 13 laptop: HP's aluminium and carbon fibre creation
Gearing up for the race of the slimmest and highest-performing laptop, HP's luxurious Spectre 13.3 will take the Indian consumer by surprise. At just 10.4 mm, the feather-weight 33 cm (13") diagonal laptop is touted as the world's thinnest and it weighs just about 1.1 kilograms, thanks to its aluminium and carbon fibre built. With the Spectre 13, HP will feature its new logo. HP has crafted Spectre 13 from aluminium and carbon fibre. To give it a nearly a hingeless look, HP has gone for Piston hinges. The Spectre 13 will be available in a dark gray and copper color scheme. The aluminium-carbon fibre made notebook features 13.3-inch full HD screen with Corning Gorilla Glass (1920 x 1080) protection. It is configured with sixth generation Intel Core i5 and i7 processors. According to the...
South Africa's City Power to replace copper cables with aluminium cables to curb cable theft
In an effort to address the growing frustration of the residents over the recent bout of power outages, City Power, the electricity provider of South Africa, has developed a contingency plan that would help curb both cable theft and network overloads. City Power acting spokesperson, Yumna Sheik said,”We have started to provide electricity to informal settlements, replacing copper cables with aluminium cables and building infrastructure to curb cable theft.” The aluminium cable replacement will cost City Power R267 million but Sheik said the value of these cables is far less than that of copper cables. The power utility will, instead of simply replacing copper cables, add measures to substations that will “make it more difficult for cable theft to happen”. In April, it was reported that...
3A Composites adds aluminium composite panels with a foamed core under HYLITE
Under the well-known brand name HYLITE® the supplier 3A Composites recently started to also market aluminium composite panels with a foamed core. The core material for the 3 mm and 4 mm -panel thicknesses is foamed in a manufacturing process specially developed for this purpose. The result is an ultra-light aluminium composite panel that is up to 80 per cent lighter than conventional steel sheets or up to 60 per cent lighter than aluminium sheets yet provides the same flexural rigidity. The foamed core panel features other superlative technical properties. Major advantages include dimensional stability at high temperatures and excellent digital printing results, due to the high quality aluminium strips used in the production process. Applications range from totems or canopies over store...
Matalco opens new secondary aluminium plant in Lordstown, Ohio
Matalco, a sister company to the recycling firm Triple M Metals, headquartered in Brampton, Ontario, held the grand opening ceremony at its new secondary aluminium plant in Lordstown, Ohio. The company has been in a start-up mode since this past March, and has been producing aluminium billet. Matalco also operates a facility in Canton, Ohio, as well as a plant at its Toronto headquarters location. The company broke ground on the plant on Sept. 17, 2014 and construction started the following month. The facility, roughly 225,000 square feet in size, will primarily be consuming scrap aluminium, along with some aluminium P1020 ingot mixed in. The plant will be making aluminium billet in either log or cut-to-size billet, according to Robert Roscetti, vice president of Matalco U.S. Inc....
Aurukun bauxite hits hurdle over the granting of preferred developer status to Glencore
Aurukun bauxite deposit has been hit with a legal challenge over the granting of preferred developer status to mining giant Glencore. This has put the future of hundreds of potential jobs at stake. Aurukun Bauxite Developments has lodged a claim for a judicial review to the decision made under the Newman government claiming it was denied natural justice. Mr Nick Stump, who heads the $20 billion mining company, pointed to the decision by then state development minister Jeff Seeney to open and close the bidding process in 24 hours. In court documents ABD claims that the government decision to open and close the bid process in 24 hours did not give it any chance to respond to or make a submission for the preferred developer status. The massive deposit has been on the shelf for more than 40...
Guangdong gets tough on environmental pollution by local aluminium extruders
The government of Foshan City, Guangdong Province, which is home to China’s aluminium extrusion producers, has announced tough measures to curb environmental pollution by local aluminium extrusion producers, Southern Daily reported. It is required that 80 per cent of aluminium extrusion producers in the city shall install clean energy equipment before October 31, 2016 and all aluminium extrusion producers in the city shall do so before June 30, 2017.
Aleris names Jack Govers to lead its European Business & Global Aerospace and Automotive
Aleris Corporation announced today that it has appointed Jack Govers executive vice president, president of Europe and Global Markets. In this role, Govers will oversee all aspects of the European business as well as the company's global automotive and aerospace strategy. Govers joined Aleris on June 20 and will report directly to Sean Stack, Aleris president and chief executive officer. Govers most recently served as general manager, Global Forms for SABIC, one of the world's leading petrochemical producers. In this capacity, he was leading a global business team focused on serving and innovating with customers in the automotive, aerospace and consumer electronics markets. Jack also previously served as general manager of SABIC's global sheet and film business, during which he also had...
Multi-material lightweighting by Novelis, Sertec, Stanley Fastening, SMS Group to be presented in Shanghai
The 4th Automotive Lightweight Supply-Chain Symposium will be kicked off on the 11th of July 2016 in the days leading up to the DIECATING CHINA EXHIBITIONS in Shanghai, China. The symposium offers the perfect setup to interchange with speakers and delegates from Chinese as well as International OEMs and Tiers. The prolific visitors profile' features brands like CHANGAN, SMS GROUP, WEBASTO, BAOSTEEL, JAGUAR LAND ROVER, SHILOH, CHERY, SUMITOMO CORP, KOBELCO, BMW, NOVELIS, STRIKOWESTOFEN, and BODO MÖLLER CHEMIE to name a few. Benefits: (All included in the registration price) • Three days of networking at the five-star Jumeirah Himalaya Hotel • 13+ executive speeches (40 min - 55 min) with simultaneous interpretation from/to English-Chinese • High rate of international participants with 77...
Short squeeze to boost SHFE aluminium prices, SMM reports
A potential short squeeze is in sight, and this will bolster SHFE near month aluminium contract prices, most market players contacted by SMM predict. Positions of SHFE 1607 aluminium are 111,144 lots yesterday, which require 277,860 tonnes of aluminium for delivery. However, inventories of deliverable SHFE aluminium were just 57,399 tonnes, which is far from enough. Such high positions will expose investors to potential short squeeze. So, shorts will either have to simply close out positions, which will boost SHFE 1607 aluminium prices , or roll positions to distant month aluminium contracts on the SHFE, which will support SHFE 1607 aluminium prices while driving down SHFE distant month aluminium contract prices. Continuous declines in domestic aluminium stocks serve as another support to...
Aluminium prices hit a 1-month high, China still not cutting capacity
A recovery in demand is a key factor supporting aluminium prices this year. China unleashed a renewed government stimulus in the form of credit expansion and infrastructure building in December, which has — at least momentarily — improved the demand side of the equation for industrial metals. Trade figures this year showed China’s relatively strong appetite for aluminium. Higher demand means exporting less as Chinese companies are consuming more aluminium domestically. China’s exports of unwrought aluminium and aluminium semis were 420,000 metric tons in May. From January to May, exports are down 7.9 per cent compared to the same period last year. Overcapacity Still an Issue China and the U.S. failed to reach an agreement on how to address excess global aluminium capacity in early June....
Inner Mongolia to deepen coal-electricity-aluminium industry chain
Coal-electricity-aluminium industry has been booming in Holingola city, Inner Mongolia, one of China’s major aluminium producing regions, in recent years thanks to rich coal resources there, reported industry sources. The city hosted 148 coal-electricity-aluminium projects during the 2011-2015, with coal capacity at 33.4 million tonnes, thermal power installed capacity at 4.12 million kilowatts and primary aluminium capacity at 1.68 million tonnes. The local government will extend coal-electricity-aluminium value chain this year. To this end, Inner Mongolia Jinlian Aluminum Co. will finish construction of 2 sets of 660,000-kw power generating units and add primary aluminium capacity by 430,000 tonnes. Inner Mongolia Chuangyuan Metal Co. will add primary aluminium capacity by 150,000...
Rio Tinto unveils new organizational structure and executive team
Rio Tinto will strengthen its organizational structure to continue to drive performance under its new chief executive Jean-Sébastien Jacques. From 2 July 2016, Rio Tinto’s product group structure will be adjusted to better align the Group’s assets with the business strategy to help drive further efficiencies and optimize performance. The Group’s world-class assets will be firmly at the centre of the business and will be supported by efficient and agile global functions. Jean-Sébastien Jacques said “In the face of testing times for the industry, Rio Tinto is performing remarkably well. Our ambition is to deliver superior performance day-in and day-out so that we create value for our shareholders and communities now and over the long term. “Our strategy, commitment to balance sheet strength...
ICSOBA 2016 Conference to be held in Quebec City, Canada on Oct 3-6
The International Committee for Study of Bauxite, Alumina & Aluminium is organizing their 2016 edition of the international event in the period 3 - 6 October, 2016 in the Palace Royal hotel, Quebec, Canada. Since 1963 ICSOBA has organized 33 international events in different places of the world. The selection of Quebec, Canada for the 34th International Conference and Exhibition, follows ICSOBA’s practice of rotating the venue of International Meetings to countries that play an important role in the global aluminium industry. The Conference is supported by Rio Tinto and REGAL (Quebec Aluminium R&D centers associations). Numerous abstracts from Quebec and international researchers have already reached the organizers. On Monday morning, 3 October, six keynote speakers will make...
Yunnan Aluminum to build large alumina project in Laos
Yunnan Aluminum Co.’s alumina project in Laos, which has been filed at China’s NDRC and passed censorship by authorities in Laos, is now waiting for approval by the Laos government, the company's executive told Yunnan Daily. The project, with total investment at $900 million, will produce 3 million tonnes of bauxite each year and 1 million tonnes of alumina. Bauxite reserves in Laos are estimated at over 5 billion tonnes. The company hopes to begin construction on the project within this year.
Orbite provides operational update on HPA plant construction
Orbite Technologies Inc. has provided an operational update on the company's progress with the construction of its high purity alumina plant, its commercial activities and expansion of its intellectual property portfolio. HPA plant update • CNC Mecanique was remobilized the week of May 24th to complete (notably) work on the high temperature steam piping for the calcination system, and they should be demobilized by the week of July 4th. • Isolation Morrisette was remobilized the week of June 6th. • The company put out to tender, in May, the remainder of piping mechanical and electrical work to be completed. • Piping mechanical was awarded to Fjordtech Industries Inc., who will be commencing work in the week of July 4th. • The work was awarded to Fjordtech on a fixed-price basis with...
EU clears path for Ball, Rexam acquisition to proceed
The European Union on Monday, June 20, cleared packaging company Ardagh SA’s roughly $3.42 billion acquisition of assets belonging to Ball Corp. and Rexam PLC, clearing the way for the aluminium beverage can-makers’ merger. The European Commission, the bloc’s antitrust agency, said in a statement that it “concluded that the proposed acquisition would raise no competition concerns, because Ardagh is not active in the manufacturing of aluminium beverage cans, nor on related markets.” In January, the EU waived through Ball Corp.’s £4.4 billion ($4.96 billion) acquisition of rival aluminium beverage-can maker Rexam PLC after Ball agreed to sell 12 production plants in Europe. The EU had opened an in-depth investigation into the deal, over concerns the combination of the world’s two biggest...
