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...
Grow with
AL Circle
Japanese manufacturer acquires extruded aluminium components supplier
Manufacturer Whitehall Industries of Ludington has been acquired by a Japanese aluminium supplier. According to a statement, SRS Industries LLC, which does business as Whitehall Industries, was acquired in May by UACJ Corp., a Tokyo-based aluminium manufacturer. Whitehall Industries is a vertically integrated supplier of extruded and fabricated aluminium components and assemblies for the automotive industry. The company makes a range of products, including structural components, sunroof guides, convertible top components, and running boards, among others. Its customers include U.S., Japanese and European OEMs, as well as Tier 1 and Tier 2 suppliers in the U.S. and Mexico. The existing management team remained with the company as part of the deal. Birmingham, Mich.-based Quarton...
The U.S. aluminium industry purchased 763 million pounds of aluminium scrap in March 2016
The U.S. aluminium industry purchased an estimated 763 million pounds of aluminium scrap during March 2016, according to aluminium recycling statistics published by the U.S. Geological Survey, Department of Interior, up 4.7 per cent over the March 2015 total of 728 million. USGS estimates that recovery of aluminium and aluminium alloys totalled 664 million pounds, an increase of 4.3 per cent year-over-year. Through the first three months of 2016, preliminary data indicate that recovery of aluminium from scrap totalled an estimated 1,966 million pounds, up 2.0 per cent from the 2015 YTD total of 1,927 million. U.S. exports of scrap, not included in the government’s consumption statistics, totalled 671 million pounds YTD, down 6.5 per cent from the same period in 2015. Aluminium imports of...
Noranda Aluminum seeks to sell Missouri smelter
Bankrupt aluminium producer Noranda is seeking bankruptcy court approval to sell off its so-called upstream business, including its now shuttered smelter in New Madrid, Missouri. Tennessee-based Noranda Aluminum Holding Corp. said Monday it had filed a request in bankruptcy court for approval for bidding procedures to sell "all, or substantially all" the assets of its primary aluminium business. In addition to the smelter in southeast Missouri, that business includes a bauxite mine in St. Ann, Jamaica, and a refinery in Gramercy, Louisiana. The company said it expects its motion to be heard July 14 by the bankruptcy court. Under its proposed bidding procedures, the deadline for submitting qualified bids is Sept. 15, with an auction set for Sept. 22, if there are multiple bids submitted. A...
Mercedes-Benz confirms a new family of engines
Mercedes-Benz finally confirmed it is going to revive the inline six-cylinder aluminium engine. First revealed to Drive at the 2015 Geneva motor show, the German brand used a showcase of its alternative powertrain technology in Stuttgart this week to officially confirm the new straight six will headline a new family of engines. The new aluminium engines will be built in both four- and six-cylinder configurations and in both petrol and diesel forms. The four-cylinder is expected to be 2.0-litres in capacity and the six-cylinder will be 3.0-litres. Bernhard Heil, vice president of powertrains for Mercedes-Benz, revealed work began on the new aluminium engine family five years ago with several key targets in mind. "Having in mind that emissions should be one key element, having in mind that...
OnePlus 3 smartphone brings in a host of new features and an aluminium body
After the OnePlus One, 2, and X, OnePlus, the leading Chinese smartphone manufacturer, is back with a new flagship, the OnePlus 3 with a suave aluminium body. OnePlus is going for the "bang for your buck" market here with a Snapdragon 820, a whopping 6GB of RAM, and a 5.5-inch 1080p AMOLED display for just $399/€399/£309. The device featuring an aluminium body ships with 64GB of storage, but unlike the OnePlus X, there is no expandable storage option. The battery is also a tad smaller than previous models: 3000mAh. All the other extras here include: NFC, a dual SIM slot, fingerprint reader, and a USB Type-C plug. The camera is 16MP with optical image stabilization, RAW support, and manual controls. There is also a 3.5mm headphone jack. The body is aluminum and comes in "Graphite" and...
Base metals looking mixed, aluminium spreads tighten
The base metals were for the most part firmer on Tuesday, June 14, with aluminium closing up 1.6 percent at $1,599.50. In Shanghai, the base metals are for the most part little changed. Equities remain on a back footing as the market gets more cautious ahead of the Brexit vote, the Euro Stoxx 50 was down two percent yesterday and the Dow closed off 0.7 percent. In Asia, the Nikkei is down 1.1 percent, the Hang Seng is off 0.1 percent, the ASX 200 is down 1.9 percent, the Kospi is down 0.4 percent, but the CSI 300 is up 0.1 percent. In FX, the dollar index is last at 94.44 and seems to be consolidating recent gyrations, the euro is at 1.1288, sterling is weak at 1.4182, the yen is extremely strong at 105.91, the high in May was 105.54 and the aussie is edging higher at 0.7402. The yuan...
Japan’s spot aluminium premiums steady at $80-$90/mt in thin trading
Japan’s spot aluminium premiums are steady at $80-$90/mt in thin trading. Platts assessed spot aluminium premiums for imports into Japan at $80-$90/mt plus LME cash CIF Japan Monday, unchanged from May 30 in thin trading against the backdrop of third-quarter contract premium negotiations. An international trader said he has indicated an interest to sell at $80/mt plus LME cash CIF Japan over a week earlier, but prospective buyers have not responded. One Japanese trader said he was interested. A Japanese consumer added that he was approached by several traders if he would be interested in metal sourced from international traders and financial institutions at $80-$90/mt plus LME cash CIF Japan. He declined the offers. “This is not the time to buy. We already bought some spot material...
MCX aluminium resumes short-term uptrend
Since recording a multi-year low at INR 93 per kg in October 2015, the aluminium futures contract traded on the Multi Commodity Exchange (MCX) has been on an intermediate-term uptrend. However, the key resistance at INR 111 which is also 50 per cent Fibonacci retracement level of the prior downtrend, limited the contract’s rally in late February and again in late April this year. Subsequent decline found support at INR 103 in early May and began to move up. On Monday, Jue 13, the contract gained 2 per cent breaking an immediate resistance at INR 106 to settle at INR 107.3. In addition, this rally has breached the contract’s 21 and 50-day moving averages and trade well above them. On Tuesday, June 14, the contract was up by 0.3 to trade at INR 107.7. This recent breakthrough gives traders...
Meridian hopes NZAS will decide to close the energy deal for its Tiwai Point smelter
On a recent investor day at Meridian Energy, the Government-controlled company said it expected ongoing talks with New Zealand Aluminium Smelters, which operates the Tiwai Point smelter. NZAS' financial performance was in line with Meridian expectations and Meridian believed NZAS was cashflow positive at current aluminum prices. But NZAS was facing an electricity price increase on January 1, 2017 and Meridian expected NZAS to try to renegotiate. "Should NZAS decide to close, Meridian has undertaken preliminary work with market participants to quickly formulate contracting arrangements. That said, Meridian maintained its view NZAS was likely to stay around, which is consistent with our view,'' Ms Howe said. The biggest issue facing the electricity sector was the long-term future of the...
Alcoa Inc's EPS forecast increased on back of improved Alumina profits: Rosenblatt
Analyst Chris Olin at Rosenblatt Securities Inc. increased its Earnings per Share (EPS) estimates for Alcoa Inc. The improved EPS estimates reflect an improved profitability outlook for the company’s Alumina segment. The analyst stated that the company appears to be in a better position and could surpass its 2Q EPS forecasts. The better expectation is on the basis of relative strength in spot market pricing of alumina. Secondly, the better estimates are also on back of better expected contribution from its third-party bauxite revenues. Lastly, the incremental gains from Primary Segment productivity would also be a tailwind for the company. As per revised earnings for Alcoa, the new EPS forecasted is of $0.10 per share, which is up by $0.02 per share. The analyst now projects full year...
UK's Webro adds copper-clad aluminium alarm cable range to their portfolio
Webro Cable & Connectors, the high-end electric cable manufacturer based in Nottingham, United Kingdom, has introduced a range of alarm cables to suit all requirements and budgets, including Cabnex Webro's CCA alarm cable. Copper-clad aluminium (or CCA as it is frequently known) has an aluminium conductor with a thin copper coating. Common consensus is that CCA cables, although lighter and cheaper than full copper equivalents, can often give substandard performance when compared to full copper cables. This is because aluminium has a much higher resistance than copper. In an alarm situation, this means that CCA cable could produce more false readings and false alarms than full copper cables. Copper-clad aluminium cables are often less robust than full copper, and can be prone to fatigue at...
Construction Specialties introduces new entrance mat innovation with aluminium-framing
Construction Specialties - C/S has added a new designer range to their comprehensive collection of attractive, resilient entrance matting solutions for high traffic spaces. Featuring a sleek, milled aluminium frame and eco-friendly recycled rubber inlays, Floormations entrance matting offers flexible mounting options to suit the project. These include recessed mounting with 12.7mm and 19.05mm recess; and surface mounting with 12.7mm and 19.05mm surface. A slim surface mounting with an integrated bevel-edge frame and 6.35mm surface is also offered. Mounted directly onto the substrate, this product features surface grooves to contain dirt and water, and has no fall-through properties. An established supplier of entrance mats for over 40 years, Construction Specialties has now introduced...
Constellium showcases its innovative aluminium defense solutions at Eurosatory 2016
Constellium N.V. is showcasing its innovative aluminium defense solutions at Eurosatory 2016, the world’s largest exhibition of land and air-land defense and security. The exhibition is currently being held in Paris, France. For the last four years, Constellium has been expanding its global armor portfolio. Thanks to a tireless focus on research and innovation, Constellium now offers an extensive aluminium product range for armored vehicle and turret hulls, appliqué armor kits, underbelly armor kits as well as bridging and pioneering vehicles. As an illustration, the KEIKOR® Suite is, today, the highest performance solution on the market combining extreme protection level and vehicle mobility. In addition, Constellium established a dedicated team of technical armor experts supporting the...
CBIX down 1% to $45.4/dmt over the week
CBIX eased over the week, down 1 per cent (US$0.4) to US$45.4/dmt. This comes on the back of a low ViU-priced cargo from Guinea and lower Malaysian FOB prices, which have pulled back slightly, to US$25.5/dmt for unwashed material FOB and US$34/dmt CIF. Unwashed grades are reportedly 40.5 per cent total alumina and 5 per cent total silica, which is consistent with typical Kuantan export grades. Washed prices is quoted at US$43/dmt CIF. CBIX is "value in use" CFR reference price for a standard gibbsitic bauxite (5 per cent reacting silica, 10 per cent moisture, 50 per cent reacting alumina - 5/10/50) which reflects the market conditions for bauxite imports into China. The Malaysian pull back has been attributed to demand contraction, which has forced trucking and barging costs lower. We...
Worrying signs arise for battered aluminium prices, SMM says
Worrying signs have arisen for aluminum prices, which have retreated from this year’s high of 13,000 yuan/tonne to below 12,000 yuan/tonne, SMM says. China’s aluminium output hit 2.68 million tonnes in May, the highest since November 2015, data from the National Bureau of Statistics (NBS) showed. About 500,000-tpy idled aluminium capacity was brought back online in the first half of this year, SMM statistics showed. SMM estimates some another 400,000-500,000-tpy aluminium capacity to be restarted in June and July. Aluminium stocks in China’s five major markets had fallen all the way from this year’s high seen in the week ending March 4. However, stocks reversed declines in the week ending June 13 by growing 19,000 tonnes from June 8. Although it is still early to say whether the change...
45% Chinese aluminium smelters bearish toward aluminium prices this week
SMM surveyed 44 Chinese aluminium smelters about their opinions over aluminium price outlook. About 45 per cent of them expect SHFE 1608 aluminium to fall below RMB 11,800/mt and LME aluminium below USD 1,560/mt. First, the price spread between SHFE 1606 and 1607 aluminium contracts is as big as RMB 200/mt before upcoming delivery of the former. This left suppliers eager to sell, but trading was poor, especially in south China, where trading was contributed mainly by traders. Second, downstream producers mostly watched from the sidelines, with low buying interest, due to falling orders. Third, aluminium stocks in China’s five major markets grew nearly 20,000 mt as of June 13 compared with June 8. Ongoing capacity restarts will likely allow stocks to continue growing. Fourth, growing...
Market for aluminium shields in the automotive sector to be worth $984.9 mln in 2021
The global market for aluminium shields in the automotive sector will be worth USD 984.9 million in 2021, according to a recently published market research report. The major factors which are driving the demand for aluminium heat shields are the rise in vehicle production, rise in military expenditure, and rising demand for luxury vehicles, the report revealed. The factors which act as restraints in the aluminium heat shield market are the availability of substitutes and the emergence of battery driven vehicles. Advancement in technology due to continuous R&D activities by the major OEMs is the major factors boosting the aluminium heat shield market. An aluminium heat shield is a type of heat shield which is designed to shield a component from absorbing excessive heat either by...
Noranda signs agreement with Gränges AB to serve as "Stalking Horse Bidder" for flat-rolled business
Noranda Aluminum Holding Corporation announced that it has entered into an asset purchase agreement with Gränges AB, under which a subsidiary of Gränges will serve as the "stalking horse" bidder for Noranda's Flat-Rolled Products business in a court-supervised sale process designed to maximize the value of such business. The agreement values the Flat-Rolled Products business at $302.5 million, on a debt-free, cash-free basis. If other qualified bids are submitted, the company will conduct an auction pursuant to section 363 of U.S. Bankruptcy Code. The asset purchase agreement with Gränges sets the floor for the auction, which is designed to achieve the highest or otherwise best offer. A hearing to approve the stalking horse bid is scheduled for June 22, 2016. Upon court approval of the...
