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 to merge underground coal mines to deploy longwall mining methods
To facilitate the induction of modern mining technology and equipment, India’s Coal Ministry is looking at merging underground mines in the same geographies and moving away from a trend of converting underground mines to opencast ones. An official in Coal India Limited’s (CIL’s) technical consultancy arm, Central Mine Planning and Design Institute Limited, said that one of the biggest impediments to modernising underground mines was that the country did not have large areas of contiguous underground coal deposits, which made it difficult to deploy longwall mining technology. Longwall mining methods were introduced through ambitious projects in the 1970s and 80s, but failed to achieve the desired results, owing to the fragmented nature of underground coal deposits. The official said that...
SHFE aluminium to fall as shorts gain upper hand, SMM surveys
SHFE 1607 aluminium will test support at the 60-day moving average and will move at RMB 11,900-12,050/mt today, SMM observed in an early morning forecast. LME aluminium will move at lows of USD 1,540-1,560/mt, despite crude oil breaking through USD 50/bbl. In China’s spot aluminium market, spot premiums of RMB 90-130/mt are expected over SHFE 1606 aluminium contract. Key macroeconomic indicators for base metal prices US durable orders and pending home sales in April will be announced today. Base metals are expected to follow their own trends today. US April pending home sales are expected to fall sharply from March. US home prices climbed recently, though, while housing starts and construction permits in April both increased. New and existing home sales were also upbeat in April, meaning...
Freeze on Pahang bauxite mining possibly extended again, minister says
The moratorium on bauxite mining in Kuantan, Pahang, may be extended until all conditions set by the authorities are adhered to, according to Natural Resources and Environment Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar. The New Straits Times (NST) quoted him as saying that the conditions include adherence to standard operating procedures on bauxite transportation, designated routes and management of stockpile sites. "I will present the findings to the Cabinet so that a decision can be made, the minister was quoted saying in a reply to PKR Kuantan Fuziah Salleh in Parliament yesterday. The moratorium was supposed to end last month, but was extended for another three months until July 15 to allow more time for relevant stakeholders to clear their remaining stockpiles. Wan Junaidi said...
Guinea overtakes Malaysia as China’s second largest bauxite supplier in April
Guinea beat Malaysia as the second largest bauxite supplier to China, marking a significant change in supplier structure. Imports of the aluminium smelting raw material look set to grow in the future, SMM predicts. Shandong Xinfa Group plans to import 2-3 million tonnes of bauxite from Guinea this year. Customs data showed China imported 900,000 tonnes of bauxite from Guinea in April, down just 4% from March. Imports from Malaysia tumbled 68.8 per cent year-on-year and 51.6 per cent month-on-month as the country has extended ban on bauxite mining by another three months. China’s bauxite imports totalled 4.41 million tonnes in April, down 5.93 per cent from a year ago and 13.8 per cent from March.
America’s most sustainable building for 2016 owes its performance to aluminium reflecting panels
A joint project by America’s SERA Architects and Cutler Anderson Architects in association has earned the nation’s highest accolade for sustainability in the built environment, thanks to the use of aluminium reflecting panels and other "green" components and technologies. The architects’ renovation of The Edith Green – Wendell Wyatt Federal Building (EGWW) in Portland, Oregon received the 2016 Top Ten Plus award from the American Institute of Architects, ahead of 10 other exemplar sustainable projects listed on the AIA’s annual ‘Top Ten’ list. The EGWW was a Top Ten award winner back in 2014 but has since improved its ecological footprint through a process of post occupancy studies and refinement of its technologies and performance. The AIA’s Committee on the Environment (COTE), who...
Reunert's revenues grow on higher demand for aluminium cables
Electrical engineering group Reunert raised its interim dividend 8 per cent to R1.13, despite flat revenue and a small drop in aftertax profit. Reunert’s revenue grew 2 per cent to R4bn during the six months to end-March, it was noted in Reunert’s interim results statement on Tuesday. Aftertax profit fell 5 per cent to R453m. Increased demand for aluminium rather than copper cables resulted in the revenue of its electrical engineering division falling 7 per cent to R2bn, CEO Alan Dickson said in the results statement. This division was also hurt by delays in awarding key projects, which are now expected to materialise in the second half of its financial year. Revenue in Reunert’s information and communications technology division fell 1 per cent to R1.7bn, but operating profit grew 2 per...
Hyderabad-based Smartron designs t.book hybrid device with aluminium alloy chassis
Hyderabad-based Smartron is a startup with big ambitions. They have plans to built an ecosystem of products and IoT services for the global market. Their first product is the t.book a Windows 10 hybrid device. This new device breaks the mould and packs a punch while doing it. The chassis is a Magnesium-Aluminium alloy with a smooth sandblasted finish that resists fingerprints. The tablet section is a uniform thickness of 9.5mm. Up front is the high resolution 12.2-inch display the display glass stretches beyond the display on all four sides, giving the impression of a larger display when switched off. The only other things in front are the capacitive Windows logo/button, a pair of front facing speakers and front camera (flanked by a couple of microphones). The right side only holds the...
Peugeot 3008 gets real aluminium for the switchgear under the screen
The all-new Peugeot 3008 crossover delivers total versatility and brings together upscale comfort and technological equipment. This is the first car done from start to finish on lightweight EMP2 platform and new generation engines. The SUV, decked with suave interiors and technology features, has been delivering high customer value ever since it has been launched by virtue of its being lightweight. Maxime Picat, Peugeot boss says, “The first 3008 was caught between a car and a crossover. The new one has decided which way to go.” So it has come over a lot more assertive and countrified, with more ground clearance and a bolder front. Surrounding the screens are well-turned-out materials – real aluminium for the switchgear under the screen, cloth on the dash, stitched door armrests,...
Flexible packaging market comprising aluminium foil packaging to be worth $125.66 bln by 2021
The global flexible packaging market by material (plastic film, paper, aluminium), printing technology, type, and application is projected to grow from USD 97.97 billion in 2016 to USD 125.66 billion by 2021, at an estimated CAGR of 5.11 per cent, revealed data in a recently published market research report. This growth, according to the study, is due to the increasing demand from various end user industries such as food & beverages, healthcare, cosmetics & toiletries, and others (oil & lubricants, household products, agricultural products, and sporting goods). Factors such as growing consumer preferences towards convenient packaging (like aluminium foils, boxes, cans etc.) ease of use, and its lightweight characteristic is driving the demand for flexible packaging. Manufacturers are...
Novelis expanding in Ontario, US as demand for aluminium grows
Novelis, Inc, a world leader in rolled aluminium products, is expanding its plant in lake Ontario, in upstate New York, in a move that could create about 250 jobs over the next four years. The expansion is due to rising demand for aluminium in the auto industry as the popularity of the lightweight metal continues to grow among automakers trying to meet the government's stricter fuel efficiency standards, says plant manager Kevin Shutt. Novelis has invested heavily in the plant outside Oswego, spending $500 million over the past five years to expand production of aluminium sheet. The company's third finishing line began making aluminium sheet in December for Ford's new F-Series super duty line of trucks, a company release stated. The plant in Scriba employs 1,100, an increase of 460 from...
Chinese aluminium scrap prices edged higher on Index 20th May, 2016
The Chinese Aluminium scrap prices increased marginally on the Scrap Monster Price Index on May 20th, Friday. 6063 Extrusions witnessed a rise of CNY 100 per MT over the previous day. Aluminium Radiators and Transformers prices too were up by CNY 50 per MT each over the previous day. E.C Aluminium Wire prices jumped higher by CNY 150 per MT to touch CNY 12,450 per MT. Old Cast prices increased by CNY 150 per MT. The prices of Aluminium Radiators and Old Sheet witnessed rise of CNY 50 per MT and CNY 150 per MT respectively. UBC and Zorba 90 per cent INF prices too were up by CNY 100 per MT each.
LME aluminium to outperform SHFE aluminium
LME aluminium will move at highs of USD 1,550-1,570/mt today, with support at the 5-day and 10-day moving averages, observed SMM in an early morning forecast. SHFE 1607 aluminium will test support at the 40-day moving average and will move at RMB 12,170-12,330/mt due to a lack of market confidence. In China’s spot aluminium market, spot premiums of RMB 10-50/mt are expected over SHFE 1606 aluminium contract. Key macroeconomic indicators for base metal prices US crude oil inventories and IFO economic climate index for Germany in May will be announced today. Base metals are expected to strengthen with crude oil today, but a few metals will remain weak. German ZEW Current Conditions in May released yesterday was weak, which is expected to have resulted from the risk of UK exit from the EU....
Stronger dollar still weighing heavy on aluminium prices
Aluminium price, though inched higher, is yet to get its sheen back due to a stronger dollar and higher Fed rates. Higher US rates could mean a stronger US dollar, which has a negative effect on commodities demand because it makes them more expensive for buyers paying with other currencies. A Fed official on Monday said US interest rates being kept too low for too long could cause financial instability -- the latest in a line of policymakers hinting that a June rate increase is on the table. "The market is now pricing in a significant possibility of a rate hike next month, depending on data," said Peter Fertig, a consultant at Quantitative Commodity Research. "The China situation isn't as dire as markets think, but the strength we saw in March is unlikely to continue." Latest China data...
CME bids to boost its metal storage network, challenge LME
The CME Group is talking to several warehouse companies to expand its metal storage network globally, three metal industry sources told Reuters, a move that could further challenge the London Metal Exchange's (LME) dominance. In recent years the CME, the world's largest futures market operator, has been steadily building its storage network - partly as a result of controversy surrounding the LME warehouse system. The U.S. exchange has been negotiating with firms about joining its list of approved warehouses to hold metals such as copper, aluminum, zinc and lead, which on the CME are physically deliverable. "The CME is keen on growing its warehousing system, they want more locations," one source said. "They want to get more companies involved around the world, in Asia, the United States...
Economics of Tiwai Point smelter still going backwards
The economics of the Tiwai Point aluminium smelter continue to slide despite last week's announcement that it will be the largest single beneficiary of proposed national grid payment reforms, says Woodward Partners energy analyst John Kidd. RioTinto-controlled New Zealand Aluminium Smelters was likely to try and plump up its approximately $21 million of savings on grid costs by applying for relief under the proposed "prudent discount policy" that could be applied to heavy industrial users pleading financial hardship. "As it showed in 2013, Rio Tinto has a strong track record of doing exactly that," said Kidd, referring to NZAS's success in negotiating a lower power price with its primary supplier, Meridian Energy, ahead of the generator-retailer's partial privatisation. NZAS operates New...
21st CRU World Aluminium Conference 2016: Experts throw light on the changing face of China aluminium
The 21st CRU World Aluminium Conference 2016 took place between May 9-11 in Shanghai, China. As the setting was the Middle Kingdom, many of the speakers’ presentations were oriented to the subject. CRU’s Michael Insulán delivered a presentation on the changing face of aluminium and bauxite supply both in China and worldwide. He touched upon various sourcing related issues that have grappled China ever since Indonesia and then Malaysia put ban on their bauxite exports, and how Australia and to some extent India have tried to leverage upon the gap in supply of the ore in Chinese market. Insulán went on to describe the bauxite moratorium in detail. According to Insulán, post-moratorium mining in Malaysia should total 1 million to 1.5 million metric tons per month. If local authorities fail...
Rio Tinto's innovative mining practices deliver environmental and cost benefits
Showing that savings in the mining industry can be achieved by implementing sustainable practices, Rio Tinto has modified the design of the rear tipper truck fleet at its Weipa bauxite mine to reduce costs and fuel usage. The mine’s rear tipper trucks are fuelled by diesel and are used during the ore development process prior to mining and for production. Rio Tinto Weipa general manager, Weipa Operations, Gareth Manderson said “Understanding that diesel fuel is one of our largest operational expenses, the team looked at ways to reduce the amount of fuel our heavy equipment use.” “To better manage the speed and fuel consumption of our rear tipper fleet, operating techniques and engine fuel burn characteristics were analysed and modified leading to the installation of an ‘upper speed...
India to auction 7 mines by August including 1 bauxite mine in Koraput, Odisha
Odisha government is in the process of putting at least seven mines for auction by August, state Steel and Mines Minister Prafulla Mallick said today. The seven mines include iron ore, manganese and a bauxite mine in Koraput district. "We are in the process of auctioning seven more mines by July-August this year. Among the mines, a bauxite mine would be auctioned in Koraput district," the minister said. Mallick's announcement of putting one bauxite mine in the auction has enhanced the hopes of Vedanta, which has been struggling to arrange raw material for its 1 mtpa refinery at Lanjigarh in Kalahandi district. The London-based aluminium major is likely to participate in the bidding process. Vedanta's alumina (refined from bauxite, the prime ore of aluminium) refinery and aluminium smelter...
