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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Bauxite prices higher on Australian cargos
CBIX lifted 3.3% (US$1.5/dmt) over the week, on the back of higher ViU-priced cargos from Australia. This was despite Brazilian material being sold at record low prices into China. Higher Australian prices are no surprise, given the recent rally in alumina prices and the link between bauxite and alumina prices. Brazilian prices are a surprise, given the typical quality and grade of Brazilian bauxite. Malaysian FOB prices remain unchanged, despite the resumption of small tonnages through Kemamanport. Prices are still quoted in the range US$25/dmt to US$27/dmt (unadjusted) for unwashed material and US$37/dmt for washed material. Developments in Guinea continue at breakneck speed, with the SMB/Winning Group moving quickly to establish a second barge-loading facility opposite its existing...
Centre looking to set up satellite port in Goa
The Centre in a joint venture with the Goa government is planning to have a satellite port, about 35 kms from Mormugao Port Trust, Union Shipping Minister Nitin Gadkari said yesterday. "The Centre in a joint venture with the Goa government is planning to have a satellite port which will be 35 kilometres away from Mormugao Port Trust in Balli village of South Goa," the Minister said. The satellite port will have the capacity to handle 50 lakh ton bauxite and ten lakh tonne of iron ore per year, he said. "The bauxite would be transported by conveyor belt and iron ore by road, the minister added. He informed the proposal regarding the satellite port was yesterday submitted to Goa Chief Minister Laxmikant Parsekar. "The Chief Minister has said (that) he is keen on this project. He will take...
Hydro renews metal sales agreement with Sapa JV
Norwegian aluminium company Norsk Hydro ASA’s fully owned subsidiary, Hydro Aluminium AS, has entered into a sales agreement with Sapa AS, a global provider of downstream aluminium solutions, owned 50 percent by Hydro, to supply extrusion ingot under an open-ended agreement starting in 2017. Front, from left: Egil Hogna of Sapa and Hilde Merete Aasheim of Hydro. Back row from left: John Thuestad (Sapa), Florian Krumbacher (Sapa), Morten Holen (Hydro), Rolf Torgeir Aase (Hydro), Peter den Dikken (Sapa), Andreas Skodvin (Hydro), Erik Fossum (Hydro) and Ola Sæter (Hydro). Photo: Kevin Widlic/Sapa The agreement covers extrusion ingot in Europe, and replaces the existing contract, which was entered into at the closing of the Sapa Joint venture in 2013, and expires by the end of 2016. The...
Goldman stays a bear on aluminium as output ramps up in China
Aluminum prices will probably extend losses as production in China is set to increase after a rally lifted smelters’ profits, according to Goldman Sachs Group Inc. With most producers in the world’s largest supplier posting solid margins, output growth will accelerate to 4 percent year-on-year in the second half after contracting 1.7 percent in the first four months, Goldman said in a report Monday. As capacity fires up, the bank sees prices dropping to $1,450 a metric ton in three months, $1,400 in six months and to $1,350 in a year, reiterating previous forecasts. Aluminum climbed to a nine-month high on the London Metal Exchange in April as a credit boom and government stimulus in China boosted demand. Prices have since receded on concerns that producers will restart smelters just as...
Tesla challenger in China plans to debut US$106,000 E-Roadster
One of China’s biggest homegrown automotive design firms is taking the plunge into producing its own electric roadster, seeking to stand out from the gaggle of Chinese electric vehicle startups, as well as Tesla Motors Inc., by making a car with materials found more commonly in business jets and mega-yachts. Qiantu Motor, set up by car design company Beijing CH-Auto Technology Co., is currently building a factory in the eastern city of Suzhou to produce the electric car with a carbon-fibre body and aluminium frame, Chairman Lu Qun said in an interview. The sports car, K50, is to debut next year with a starting price of about 700,000 yuan (RM432,000), he said, comparable to Tesla’s Model S, which is made of aluminium. The price is about a third of the BMW i8, which also features a...
Craft Beer: More small breweries are canning their beers
A growing number of craft brewers are canning their beer and there are definitely advantages to the aluminium packaging over bottles. Cans don't let any light in, keeping the beer fresher for longer, and are quicker to cool in the fridge. London-based FourPure were the first micro brewers in the UK to put their beer in cans, including their seasonal specials. Their Beertooth American brown ale, packed with flavour and just the right level of bitterness, is my personal favourite. In Ireland, Metalman Brewing in Co Waterford were the first to take up the aluminum baton in 2014. Their pale ale is smooth and crisp with subtle citrus flavours and medium hop finish. If you want to sample Metalman's beers, they are holding a tap takover at Belfast's Brewbot on June 22. Whiplash is something of a...
Tropical Cable Ghana commits to continuous investment
Tropical Cable and Conductor Limited (TCCL), an indigenous aluminium and copper electrical and telephone cable manufacturer, says it is continuously investing heavily in quality management systems to promote integrity and quality of the company’s products. Speaking at a seminar for newly-certified electrical wiring professionals in Accra, the Marketing and Business Development Manager of TCCL, Nana Kwame Oteng-Gyasi, said the company - which has been International Standard Organisation (ISO) 9001 certified for almost 10 years - on average spent US$200,000 annually on quality systems. He explained that the investments were channeled into laboratory testing equipment, production systems, and on personnel to ensure the company’s products meet international standards. TCCL organised the...
Process automation will boost the Global Aluminium Die Casting Machinery Market until 2020, Says Technavio
According to the latest research report released by Technavio, the global aluminum die casting machinery market is expected to grow steadily at a CAGR of 7% until 2020. This report titled ‘Global Aluminum Die Casting Machinery Market 2016-2020‘, provides an in-depth analysis of the market in terms of revenue and emerging trends. In order to arrive at the market size, Technavio researchers have considered the demand for aluminum die casting machinery from the various end-user industries in the global aluminum die casting machinery market. “Global die casting machinery manufacturers are slowly incorporating various simulation-based software solutions in their offerings to cater to the needs of end-user who require cast parts with exact dimensions of size, weight, and shape to be used in the...
US presses China to curb steel & aluminium glut amid trade tensions
The US has urged Beijing to tackle its excess industrial output and halt the flooding of cheap Chinese imports into overseas markets. In a statement released at the start of two-day bilateral talks in Beijing, US Treasury Secretary Jack Lew said excess capacity was damaging the global economy. It comes days after the US Commerce Department imposed anti-dumping duties — levied on foreign exporters who sell products at a lesser price in overseas markets than their value in their own country — of up to 210% on corrosion-resistant steel imports from China. "Excess capacity has a distorting and damaging effect on global markets," Lew was quoted as saying by Reuters. "Implementing policies to substantially reduce production in a range of sectors suffering from overcapacity, including steel and...
Aluminium futures up 0.48 pc on overseas cues
Aluminium prices edged up by 0.48 per cent to Rs 103.85 per kg in futures trade today as participants widened positions amid a firming trend overseas. Strong demand in the spot market also influenced metal prices. At the Multi Commodity Exchange, aluminium for delivery this month inched up 50 paise or 0.48 per cent to Rs 103.85 per kg in a business turnover of 303 lots. Likewise, the metal for delivery in July traded higher by 30 paise or 0.29 per cent to Rs 104.60 per kg in 7 lots. Marketmen said that apart from increased domestic demand, a firming trend in global markets, helped aluminium futures to trade higher.
Gladstone builder in bid to build 2200 aluminium homes
A retired Clinton builder could soon become the brains behind the homes thousands of Fijians will live in, that are made almost completely out of aluminium. John Baldock is hopeful he will be awarded the tender to re-build 2200 homes that were destroyed during Cyclone Winston. His plan? To build them from Gladstone aluminium so some of the money comes back to the city that he and wife Lynn have spent 43 years. But, as he's now finding out, there's little chance of that happening. There's even less chance of him getting his hands on any Australian aluminium; the industry has shrunk that much in the past two years, despite being the largest producer of bauxite, the main ingredient in aluminium. Our local smelter, Boyne Smelters Limited, doesn't have the capability to make slab aluminium,...
US auto sales fall, the broad metals correction felt in automotive
U.S. Automotive sales for May came in at 17.45 million. Down from April but also down from 17.8 million a year earlier. In May 2015, vehicle sales were a record 17.47 million vehicles, according to Autodata Corp. There were two fewer sales days this year vs May 2015. Having one less weekend was also a factor in the drop. Some analysts are taking the drop as a sign that the historically strong growth that automotive sales have enjoyed since the end of the recession is over. For the full year, auto sales are still historically strong but General Motors, Ford Motor Co. and Toyotareported sales that fell more than analysts had estimated, while Nissan matched predictions with a 1%. Fiat Chrysler Automobiles surprised forecasters with a small gain by making more sales to fleet customers. If the...
Boyne Smelters Ltd. leads Aussie plants in re-using aluminium
Boyne Smelters Limited has reviewed its can recycling program and is proud to be able to say 'yes, we can' continue to be Australia's largest aluminium can recycling facility. Following the 2014 closure of Australia's main aluminium recycling plant in Yennora, New South Wales, most of the country's aluminium cans were being sent overseas for processing. BSL's people saw an opportunity to add value to Australian resources in Gladstone so commenced the trial of processing cans at BSL, which led to the smelter recycling around 13 million aluminium cans a month. Aside from the benefits of reducing landfill waste, recycling aluminium uses only around 5% of the energy of primary aluminium production. This means less greenhouse gas emissions are produced and aluminium is made much more...
Restarted aluminum capacity far from enough to fill supply gap in China, SMM reports
Aluminum capacity restarts in China will continue increasing, but far from enough to fill in the supply gap caused by massive closures late last year, SMM understands. SMM estimates the amounts of restarted aluminum capacity in China at 400,000-500,000 tonnes during June-July. The amount of new aluminum capacity will depend on aluminum price movement. As of June 2, aluminum stocks in China’s five major markets were down some 200,000 tonnes from the end of April and down as much as 714,000 tonnes from the same period last year, SMM statistics showed.
Spot Premiums to narrow in China aluminum market
In China’s spot aluminum market, spot premiums will narrow to RMB 0-40/mt over SHFE 1606 aluminum contract today. US May non-farm payrolls grew at its lowest in nearly six years, dampening chance for rate hike in June. LME aluminum will move at USD 1,540-1,570/mt today. SHFE 1607 aluminum unexpectedly fell below the 60-day moving average and remain weak at RMB 11,800-11,980/mt today.
EGA takes part in Harbor’s 9th Aluminium Outlook Summit
Affirming its position as one of the world’s largest and leading primary aluminium producers, Emirates Global Aluminium (“EGA”) is proudly participating at Harbor’s 9th Aluminium Outlook Summit (“Harbor 2016”) as lead sponsor for the fourth consecutive year. Organised and hosted by Harbor Aluminium Intelligence the summit will take place in Chicago, USA, from 7 to 9 June 2016. EGA’s activities at Harbor 2016 include the participation of EGA’s Chief Marketing Officer, Walid Al Attar, in a panel discussion on 8 June 2016, entitled “World’s major aluminium market players opine on strategic market topics.” Additionally, EGA will host a networking lunch for the participating delegates immediately prior to the panel discussion. Al Attar, a regular attendee and speaker at the event since EGA and...
Tribals oppose campaign against development projects in Odisha
Strongly pleading for speedy development in backward Kalahandi and nearby areas of Odisha, locals including tribal people today opposed any campaign against projects like Vedanta even as activists including Medha Patkar held a meeting in Lanjigarh. Participants in the rally, organised by Niyamgiri Surakshya Samiti (NSS) at Jagannathpur near Lanjigarh and attended by Patkar, Congress leader Bhakta Charan Das and former MLA George Tirkey raised slogans against Vedanta. The rally drew sharp reaction from locals who claimed that the activists chose the World Environment Day to reach Lanjigarh and use the occasion to garner support against the state government, Vedanta and the agenda of development. The local people including tribals also staged demonstration in some places and shouted slogans...
Unreliable power supply a challenge to Ghana mines
Unreliable power supply remains a key challenge to the sustainability of the mining industry in Ghana, Mr Kwame Addo Kufuor, the President of the Ghana Chamber of Mines, has said. Speaking at the opening session of the three-day 11th West African Mining and Power Conference in Accra, Mr Kufuor said the unstable power supply had led to the spending of about 20 per cent of mineral revenues on power alone. The major minerals currently being mined in commercial quantities including gold, diamond, bauxite and manganese have positioned the country as a conducive investment environment created by successive governments since 1980 and this had led to a significant inflow of the mining sector investment. “Government will continue to work at improving its facilitation role while working with all...
