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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India considers safeguard duty for aluminium products
Indian government is considering to impose an anti-dumping duty or a safeguard duty on aluminium products . The Indian aluminium industry has been lobbying to the commerce ministry for benefits similar to those imposed for the steel industry in the country to check cheap imports in the sector. The Aluminium industry approached commerce ministry after the finance ministry decided against the safeguard duty. Safeguard duty is a WTO-compatible temporary fiscal measure to protect a country’s domestic industry from cheap imports. China and West Asia are dumping aluminium – China as its industry is heavily subsidised and West Asia as power is very cheap there. Electricity accounts for almost 40 per cent of the total production cost.
Bauxite prices in China show signs of rising
Bauxite prices in China have shown signs of rising, especially in Shanxi province, where more new alumina capacity came on stream than other regions, reported industry sources. Rising alumina prices gave Chinese alumina producers incentive to restart idled capacity or bring online new capacity, boosting bauxite demand and prices. Survey showed bauxite (Al/Si ratio at 5.5) in Shanxi traded at 240-250 yuan/tonne (excluding VAT, delivery to factory) recently, up 10-20 yuan/tonne from May. With alumina prices in Guizhou province stabilizing at 1,900 yuan/tonne, local bauxite prices appear set to rise soon. Bauxite (Al/Si ratio at 6) in the province still trades at 170-180 yuan/tonne (excluding VAT, delivery to factory) at the moment, but might see a 10-20 yuan/tonne rise in the near term.
VHE of Iceland expands product mix with Hall Effect Cathode Meter crafted from aluminium
VHE ehf., Iceland, has added to its product portfolio a Cathode Current Meter, a specialised portable ammeter that makes use of the Hall Effect. The instrument is made from aluminium; hence, it is lightweight and easy to operate. The conductor current is instantaneously displayed on the integral backlit screen. The U-shaped sensor head does not need to go fully around the conductor, making it both easier and quicker to take multiple measurements. A screen icon indicates low power remaining in the standard 9V alkaline dry cell. An over-temperature warning protects against excessively heat. Every Cathode Current Meter is customised to specific customer requirements – the lance length and angle is configured for easy access, the probe is dimensioned to suit the conductor, and the meter is...
Indian Railways installs aluminium can/bottle recycling machine at a Mumbai station
Indian Railways is finally going green. Giving a major boost to PM Narendra Modi’s ‘Swachh Bharat’ scheme, Indian Railways has put up a ‘Swachh Bharat Recycle Machine’, which is a bottle/aluminium can recycling machine at the Churchgate railway station in Mumbai. With this initiative used plastic water bottles and aluminium beverage cans on tracks may become a thing of the past. “The first machine, which is as big as a refrigerator, was set up at the Churchgate station on World Environment Day on June 5. We plan to put such machines at 10 stations namely Mumbai Central, Dadar, Bandra (local), Bandra terminus, Santacruz, Andheri, Goregaon, Borivali and Bhayandar,” Mukul Jain, Western Railways Divisional Railway Manager told FE Online. The Recycle Machine will only accept bottles/aluminium...
LEDs and carved aluminium create a reflective moon at Art Market San Francisco
An aluminium moon floats at the end of an empty shipping container while multicolored lights swirl around it, amplifying and diminishing the craters and textures that mark its surface. Called a Moon with Many Stars, the installation at Art Market San Francisco is the passion project of Craig Dorety, an artist and engineer. "The moon doesn't emit its own light. It is a reflective body," Dorety tells The Creators Project. This fact happens to fall in line with his previous works, animated sculptures that explore perception. "I shine lights onto a surface and the viewer is presented with reflected light or indirect light. This technique allows for richer colors in perception, doesn't overwhelm the eye, and lets me introduce shadow (the only way to get black or gray when working with light)."...
Lawson Products launches Kent Automotive Aluminum Repair Solutions
Lawson Products, a distributor of products and services to the MRO and automotive marketplaces and No. 39 on Industrial Distribution's 2015 Big 50 List, on Tuesday announced the launch of Aluminum Repair Solutions under its Kent Automotive brand. Kent Automotive Aluminum Repair Solutions is a single-source for aluminum repair materials, offering a full line of OEM-quality, specialized products, expertise, and education for collision centers and auto body repair shops in the U.S. and Canada. “With the growth in aluminum-intensive vehicle design comes a subsequent rise in the repair market,” said Michael DeCata, president and chief executive officer, Lawson Products. “We’re helping our automotive customers leverage the aluminum repair market opportunity, wherever they are in their aluminum...
Bischof + Klein presents technical films for construction sector
Lengerich-based packaging and film manufacturer Bischof + Klein presented its technical films at the "IEX Europe" trade fair in Cologne and the "Frontale" trade fair in Nuremberg for the first time. "Those were successful premieres", reported sales manager Stefan Löber and product manager Dieter Wienninger. The B+K trade fair teams were delighted to receive specific orders from around the globe. As the leading trade fair for industrial insulating material and insulation technology, the IEX is an important platform for the insulation, soundproofing and fire protection segments. Visitors to B+K's stand were particularly interested in aspects of thermal insulation, footfall sound insulation and moisture protection. Bischof + Klein produces laminates which are used in the construction sector...
Novelis appoints Devinder Ahuja as SVP and CFO
Novelis, Inc., the world leader in aluminium rolling and recycling, today announced the appointment of Devinder Ahuja as Senior Vice President, Chief Financial Officer. Ahuja will join Novelis on July 19, 2016, as Senior Vice President, Finance, and Chief Financial Officer Designate. He will officially become Novelis' Chief Financial Officer after the filing of the company's first quarter 10-Q in August. Steve Pohl, currently Interim Chief Financial Officer, will be responsible for the function until that time. "We are thrilled to have someone with Devinder's breadth of financial experience and expertise joins Novelis," said Steve Fisher, Novelis President and Chief Executive Officer. "He will bring a distinct and different perspective to the executive team and to the role of CFO." As...
Sagar Asia enters into an asset purchase areement with Golkonda Aluminium
Sagar Asia Private Limited has entered into an asset purchase agreement with Golkonda Aluminium Extrusion Limited to purchase certain assets from Golkonda Aluminium located in Hyderabad. In a journey of over three decades, Sagar Asia has attained leadership in the Indian market as a manufacturer of ladders, scaffolding systems, customized equipment for windmills and several ‘on-order’ solutions. A team from Trilegal, Hyderabad comprising Partner Pavan Kumar, Senior Associate Dennis John and Associate John Mathew acted for Sagar Asia. ALMT Legal, Bangalore advised Golkonda Aluminium on the transaction, through a team led by Partner Satish Srinivasan. Golkonda Aluminium Extrusions Limited, formerly Alumeco India Extrusion Limited, is an India-based company engaged in the manufacture of...
U.S. scientists develop aluminium alloy that fosters domestic rare earth production
Scientists at the United States Department of Energy’s Oak Ridge National Laboratory, the Lawrence Livermore National Laboratory, and Eck Industries announced last week that they have developed a new variety of aluminium alloys that are more resistant to heat and are easier to work with than current alloys. Such alloys have the potential to re-invigorate America’s production of rare-earth elements, which are key to electronics and other modern and emerging technologies. “We have these rare earths that we need for energy technologies,” said ORNL’s Orlando Rios, “but when you go to extract rare earths, the majority [of rare earths found in the United States] is cerium and lanthanum, which have limited large-volume uses.” To address this problem, the research team has developed an...
Aluminium up by 1% on global cues
Aluminium prices edged up by INR 1.10 to INR 107.20 per kg in futures trade on Thursday, June 9, as participants enlarged their positions, supported by a strong spot demand in the physical market. In futures trading at the Multi Commodity Exchange, Mumbai, aluminium for delivery this month inched up by INR 1.10 or 1.04 per cent to INR 107.20 per kg in a business turnover of 316 lots. Likewise, the metal for delivery in July traded higher by INR 1.10 or 1.10 per cent to INR 107.95 per kg in 17 lots. Traders said strength in the base metals pack at the London Metal Exchange (LME), spurred by an improving trade outlook in China and monetary stimulus by the European Central Bank and increased domestic demand from consuming industries at the spot markets, helped aluminium futures to trade...
NTNU and Hydro formalize agreement on new professorship in aluminium
Hydro and the Norwegian University of Science and Technology (NTNU) today signed an agreement to establish a new professorship in aluminium. NTNU Dean Ingvald Strømmen Hydro's Head of Technology Hans Erik Vatne signed the agreement today Hydro is providing up to NOK 10 million for a five-year post to acquire new knowledge and strengthen Norway's leading position in aluminium. With the new professorship, the university is moving to become the world's leading research institution on the application of aluminium. "With this grant from Hydro behind us, we will take the lead in research to create new industrial development in both Norway and the world. If we are to succeed we must be constantly better, more effective and more innovative today than we were yesterday," says the Dean of the...
Australian alumina stable overnight but down $6/mt on week
The Platts Australian alumina daily assessment at $244/mt FOB on Thursday, June 9, was unchanged from a day ago, but has fallen $6/mt in the last week. The market has been under downward pressure from unplaced cargoes in Australia, China, India and the Americas. On Thursday a smelter reported being approached by a trader seeking to offload multiple Australian shipments between July and December. A second smelter reported placing a bid at the equivalent of $240/mt FOB Western Australia that was subsequently rejected, for a 30,000 mt shipment in the second half of July. On Wednesday, June 8, a third consumer had reported knocking back a July offer at $246/mt FOB Australia. Platts assessed the Handysize freight rate at $11.40/mt on Thursday for a 30,000 mt shipment in July from Western...
Demerging Alcoa slams ‘opportunistic’ Alumina
Relations between Alcoa and Melbourne’s Alumina continue to sour ahead of a legal shootout in September on Alumina’s rights to force a reworking of the global alumina alliance, known as AWAC, between the pair because of Alcoa’s planned demerger. In a rare Sydney briefing to local investors and analysts hosted by Morgan Stanley, an adviser to Alcoa on its planned demerger in the December half, Alcoa let rip at its partner of 55 years (including Alumina antecedents). Matt Garth, Alcoa’s vice-president of investor relations, accused Alumina of being emotional and opportunistic in its pursuit of a better deal while Alcoa worked towards its demerger. He accused Alumina of making its initial approaches for a new deal “behind closed doors with the threat that they would take it public”. Alumina...
Dubai group seeks funding for $8bn Guinean bauxite mine
A Dubai-based resources firm is in talks with trading houses to develop bauxite reserves in Guinea, valued at $8 billion and previously held by BHP Billiton, the company's co-founder said on Thursday. James Tounkara, co-founder of Gajah Investment Group, said he also expected Chinese involvement in the project that he expects to start production by the end of next year, but there had been no contact yet. Guinea has around a third of the world's bauxite reserves, used for making aluminium, although their development has been thwarted by years of military rule and popular unrest. BHP, which formerly owned the Boffa South bauxite blocks, some 150 km (93 miles) north of the capital Conakry, halted exploration in 2012 there after aluminium prices dropped. Tounkara said Guinea "missed the...
HPA demand in Asia-Pacific to grow at CAGR 13.5% to reach at $4.3 bln by 2022
The worldwide demand for high purity alumina is on the rise. The mineral with purity level equal to or greater than 99.9 per cent finds use in single crystal materials such as sapphires for watch covers, translucent tubes for high-pressure sodium lamps, high-strength ceramic tools and abrasives for magnetic tape, among others. A recently published market research report revealed that the demand for high purity alumina is going to witness an increasing demand in areas exhibiting high growth rates such as semiconductors and computers, automobiles, display materials, and energy. High purity alumina, owing to its amazing blend of chemical and physical properties such as high wear-resistance and low-friction, high thermal and electrical insulating ability, and broad chemical compatibility is...
2016 U.S.-China strategic and economic dialogue: An update
On June 6-7, U.S. Treasury Secretary Jacob J. Lew and Chinese Vice Premier Wang Yang led the eighth meeting of the Economic Track of the U.S.-China Strategic and Economic Dialogue (S&ED VIII) in Beijing, China. As the Special Representatives of President Barack Obama and President Xi Jinping, Secretary Lew and Vice Premier Wang led discussions with a high-level delegation of Cabinet members, ministers, agency heads, and senior officials from both countries. As the world’s two largest economies, the United States and China share a mutual interest in each other’s economic prosperity, and recognize that enhanced cooperation on the diverse set of issues encompassed in the S&ED is crucial for the health of the broader global economy. During the eighth meeting of the S&ED, the two sides pledged...
Brazil CADE approves Ball Corp's proposed Rexam plc acquisition
Ball Corporation confirms that Conselho Administrativo de Defesa Econômica (CADE) has formally approved the buyer of the divested assets of its proposed acquisition of Rexam PLC, indicating that Ball may now proceed to close on the acquisition. Ball is working to obtain the remaining regulatory clearances in Europe and the United States soon, enabling the proposed acquisition of Rexam PLC to close. Following closing of the transaction, Ball will remain a New York Stock Exchange listed company domiciled in the U.S. Ball Corporation supplies innovative, sustainable packaging solutions such as aluminium beverage cans, flexible packaging for food and household products customers, as well as aerospace and other technologies and services primarily for the U.S. market. Rexam Inc. is a...
