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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Scrapping policy to boost metal recycling in India
Ready with a new scrapping policy that will provide incentives for surrendering old polluting vehicles, Union Minister Nitin Gadkari today said it will boost the automobile industry turnover over four-times to INR 20 lakh crore in the next five years. More so, the policy will also sow the seeds for a much-awaited, structured metal recycling industry in India, which will hopefully improve the metal recycling rate in this fast emerging economy. The draft of the much-awaited policy is ready and would be put in public domain within a week to seek views of the stakeholders and general public, the Road Transport and Highways Minister said. "We will put the vehicle scrapping policy on website within a week to seek suggestions and based on that we will seek Finance Ministry's approval. Once...
Vedanta to produce 1.5 mt aluminium in FY17
London-listed Vedanta Resources has firmed up plans to hike production of both aluminium and alumina in the country during the current fiscal. While the overall aluminium output from its smelters at Jharsuguda and Balco's smelting unit at Korba is expected to move up 60 per cent, production at Lanjigarh refinery would be ramped up from one million tonne (mt) to 1.5 mt, an increase of 50 per cent. The company's aluminium production this fiscal is pegged at 1.5 mt, up from 0.93 mt in 2015-16. "The combined aluminium production in this fiscal from our smelters at Jharsuguda and Korba would be 1.5 mt. While Jharsuguda would contribute 0.9-1 mt, the rest of the production would come from Korba. We have already initiated capacity ramp up of our Balco smelter at Korba and the second aluminium...
Demand-supply metrics boost aluminium
The price of aluminium has stabilised since the beginning of 2016. At $1,545 per tonne, the price now is around 3 per cent higher compared to end-December. The increase in price can be attributed to a drop in global aluminium supply from 4.78 million tonnes (mt) towards the end of December 2015 to 4.19 mt in end-February 2016. Nearly 78 per cent of this drop came on the back of reduced supply from China, from 2.53 mt at the end of December 2015 to 2.07 mt at the end of February 2016. According to China’s non-ferrous metals industry association, since December 2015, close to 4.27 mt of smelting capacity has been closed. Last year, global uncertainties and doubts over China’s investment-led growth saw aluminium prices tumble. Aluminium dropped more than 23 per cent, from $1,960 per tonne in...
20th ARABAL event to be held in Dubai in 2016
As part of its commitment to help shape the future of the global aluminium sector, Emirates Global Aluminium ("EGA") will host the 20th Arab International Aluminium Conference ("ARABAL") at Madinat Jumeirah in Dubai, UAE, from 22 to 24 November 2016. EGA, through its core operating assets Dubai Aluminium ("DUBAL", also known as Jebel Ali Operations) and Emirates Aluminium ("EMAL", also known as Al Taweelah Operations), has been involved in ARABAL since its inauguration in 1983; and 2016 marks the sixth time that EGA will host the event. More than 2,000 local, regional and international delegates, speakers, sponsors and exhibitors and visitors are expected to attend the Middle East's premium aluminium industry gathering. Combining a strategic conference with an international exhibition,...
LME aluminium to see range-bound trading
LME aluminium will struggle around the 5-day and 10-day moving averages and trade in a tight range of USD 1,540-1,560/mt on Monday. SHFE 1607 aluminium will find support at the 5-day and 20-day moving averages and move at RMB 12,350-12,550/mt. In China’s spot aluminium market, spot premiums of RMB 0-40/mt are expected over SHFE 1606 aluminium contract. Key macroeconomic indicators for base metal prices Major economic indicators due for release this week include May manufacturing PMIs in the Europe and the US, revised Q1 growth in Germany, UK and the US and profit at China’s large industrials in April. The G7 meeting held last week will also remain the focus of markets. Investors hope developed countries will maintain easy monetary policy. Manufacturing PMIs in Europe and US have been...
India aluminium edges up on scattered demand
Aluminium prices were up by INR 2 per kg at the non-ferrous metal market on Saturday on mild demand from consuming industries amid firm global cues. However, other base metals held steady in thin trade. Traders said some demand from consuming industries and a report of firm trend overseas mainly led to the rise in aluminium prices. In the national capital, aluminium ingots, sheet cutting, wire scrap and utensils scrap were up by INR 2 each to INR 155, INR 151, INR 151 and INR 149 per kg, respectively. Following were the metal rates (in INR per kg) on May 21, the previous week: Aluminium ingots INR 155, aluminium sheet cutting INR 151, aluminium wire scrap INR 151 and aluminium utensils scrap INR 149.
China's first overseas alumina production starts in Indonesia
A Chinese-invested alumina refinery was officially put into production on Saturday in Indonesia. The refinery invested by China Hongqiao Group Limited and Winning Investment (HK) Company Limited, is the first giant alumina project that Chinese companies have invested in overseas. The two Chinese companies jointly signed the cooperation agreements with Indonesia-based PT Cita Mineral Investindo Tbk on the aluminum oxide project and supporting facilities on October 3, 2013, when Chinese President Xi Jinping paid a state visit to Indonesia. The production line is part of the 2 million-tonne-a-year smelting plant with a total investment of 1 to 1.5 billion U.S. dollars which is operated by PT Well Harvest Winning Alumina Refinery, a joint venture which Hongqiao holds a 56 percent stake. The...
CBIX eases, Malaysia exports from existing bauxite stockpiles
Bauxite prices eased 1.6 per cent (US$0.7/dmt), closing Friday at US$44.2/dmt for the week. Several lower ViU-priced cargos from Malaysia contributed to the marginal decline over the week. Although Malaysian bauxite exports have resumed, mining activities have not - current exports (via Kemaman port mainly) comprise stockpiled bauxite originating from outside Kuantan port (circa 2 mln t). Malaysian FOB prices were reportedly unchanged at US$25/dmt to US$27/dmt (unadjusted) for unwashed material and US$37/dmt for washed material. Cargos from SMB’s Guinean operation continue to make an impression on the CBIX index, although reported import and export grade data for Guinean cargos do not always align. Some vessels appear to have been loaded with bauxite from different mine origins. Reporting...
Aurukun needs bauxite mine to normalise the economy, says MP Billy Gordon
Independent Queensland MP Billy Gordon and indigenous leaders said Friday, last week, the Palaszczuk (39th Premier of Queensland, Australia) government needed to do more to ensure economic development of the troubled Cape York community of Aurukun. He stressed upon the need for opening the bauxite mine there so that people had work and means for living. Mr. Gordon was briefing press about the civic reform initiatives that have been taken and being implemented in recent times to restore normalcy in this somewhat politically unstable region of Queensland. He said local leaders were right to demand greater government attention for economic development in the region. The indigenous MP said he was bewildered that the proposed Aurukun bauxite mine was “not anywhere near opening”, four years...
Revolution Design unveils aluminium chassis for the Carisma 4XS 4WD Buggy racing car
The Revolution Design has unveiled 4XS Aluminium Chassis, one of the most important option parts for the Carisma 4XS 4WD buggy, a high-end racing car model. The Carisma Racing 4XS is a brand new 1/10th Competition 4WD buggy, and first time, offering from renowned Ready-to-run factory Carisma RC. Designed and engineered by legendary German designer, Michael Vollmer, who has in the past been responsible for cutting edge designs for brands such as Serpent RC, Team Durango, Robitronics, amongst others. The new aluminium chassis improves flex characteristics and makes the car a lot stiffer compared the standard carbon fiber chassis, which helps especially on high-grip surfaces like astroturf or carpet. The high-quality 7075-T6 aluminium chassis also lowers the overall center of gravity, which...
Euro 2016 soccer may raise beverage cans demand, says Novelis CEO
Soccer's Euro 2016 could help raise demand for aluminium for beverage cans, as fans enjoy beer or soft drinks while watching their national teams, the head of Novelis, the world's largest rolled aluminium producer, said. Past major sporting events such as the 2014 soccer World Cup in Brazil did "increase consumption of beer or other soft drinks in cans," Novelis Chief Executive Steve Fisher told Reuters. U.S.-based Novelis supplies aluminium for drinks makers including Coca-Cola, PepsiCo and the world's largest beer brewer AB InBev, according to its website. "We certainly hope to see that same trend for the European football championships this coming summer." Fisher said, adding that Novelis is ready to meet increased demand driven by the June 10-July 10 championship in France "if it...
2016 Aluminum Extrusion Design Competition Awards highlights creativity and innovation
The winners of the 2016 Aluminum Extrusion Design Competition were announced at the Eleventh International Aluminum Extrusion Technology Seminar & Exposition – ET ’16. The winning entries highlight how aluminum extrusions can provide versatile and cost-effective solutions to design challenges. Professional designers, manufacturers and students were awarded a total of $12,000 in the 2016 Aluminum Extrusion Design Competition. The awards, sponsored by Bonnell Aluminum, included prizes and scholarships in two classes: a Professional Class and Student Class. Professional Winners Highlight the Versatility of Extrusions William Davis of Wrightspeed Powertrains in San Jose, California and Rob Nelson of Almag Aluminum, Inc. in Brampton, Ontario, Canada won the $3,500 Grand Prize/Transportation...
ASAS Alüminyum completes its foil production plant, set up with Achenbach technology
As a strong brand in the market for aluminium extruded products over a long time, ASAS Alüminyum Sanayi ve Ticaret A.S. in Sakarya, Turkey, can look back on four successful years of building an ultramodern production plant of aluminium flat rolled products. By recent-ly placing an order with Achenbach for two more extra-wide aluminium foil rolling mills, one additional aluminium foil separator and another foil slitting machine, ASAS Alüminyum intro-duces the next step of expansion. In the near future, ASAS Alüminyum will produce high efficiently high-class aluminium foil for a wide range of foil products. They are used as basis for sophisticated packaging foil such as blister packs for pharmaceutical products or intelligent compound packagings for food prod-ucts for national and...
Q1 Customs data shows China’s fake semis trade continues to grow
Customs data for the export of aluminium semis from the People’s Republic of China for the first quarter of this year are in. The numbers show an interesting trend – although the total year-on-year exports dropped, the flow into the Socialist Republic of Vietnam increased significantly. According to numbers obtained by Aluminium Insider, exports of aluminium semis exported from China in the first quarter of 2016 were 361,548 metric tons, which is down 18.5 per cent year-over-year from the first quarter of 2015, when China exported 443,774 metric tons. On a country-by-country basis, exports were down to Thailand by 14.1 per cent from 42,018 metric tons to 36,073, down to the Republic of China (Taiwan) by 14.9 per cent from 8,495 metric tons to 7,226 metric tons, down to Singapore by 15.3...
SinterCast AGM 2016 focuses on energy consumption issues in aluminium manufacturing
The SinterCast AB (publ) Annual General Meeting (AGM) was held on 19 May 2016 in Stockholm. During the AGM, presentations were provided by Dr Mark Jolly, Professor of Sustainable Manufacturing at Cranfield University, and by Dr Steve Dawson, President & CEO. Professor Jolly made presentations on prior studies showing the energy intensity and CO2 emissions of aluminium production relative to cast iron, and emphasised the importance of life cycle energy analysis, particularly in the automotive industry. In particular, Professor Jolly noted that the production of each kilogram of primary aluminium generates approximately 10 kg of CO2; approximately four times that of iron. Professor Jolly presented the outline of a new project that is being conducted at Cranfield University to quantify the...
Alba wins British Safety Council’s (Gold) International Safety Award for 2015
Aluminium Bahrain B.S.C. (Alba), the Bahrain-based international aluminium smelter, announced that it has been awarded the much coveted British Safety Council’s (Gold) International Safety Award for 2015 for its commitment and diligent efforts towards maintaining safety, health and well-being of its workforce during 2015. Alba’s Chief Executive Officer, Tim Murray received the Award at a ceremony on May 6, 2016 at Grosvenor House Hotel, London. Commenting on Alba's success, Chief Executive Officer Tim Murray said: “Alba believes that Employee Safety and Health are the two most important factors that affect our productivity and overall performance. Over the recent years, Alba has maintained an excellent track record of Safety and Health and winning an international recognition is a...
SHFE 1607 aluminium ends with loss
On Wednesday’s night trading, SHFE 1607 Aluminium dipped to RMB 12,220/mt after opening at RMB 12,305/mt. But prices then rallied to RMB 12,400/mt before ending at RMB 12,380/mt. On Thursday, SHFE 1607 Aluminium rose to RMB 12,395/mt after opening at RMB 12,355/mt. But short selling sent the most active contract down to RMB 12,280/mt in the afternoon. Finally, the contract ended down RMB 35/mt at RMB 12,325/mt. Trading volumes were down 9,502 lots to 181,804 lots, and positions were down 7,078 to 266,412. Positions of SHFE 1608 Aluminium were up 12,466. SHFE 1607 Aluminium will move around the 10-day and 20-day moving averages in the near term.
China operational aluminium capacity to grow further in May, SMM Expects
Operational aluminium capacity in China will keep growing in May due to restarted and new capacity, SMM expects. SMM sees about 269,000-tpy increase in operational aluminium capacity, which will bring the country’s aluminium output to 2.6 million tonnes in May, up about 100,000 tonnes from April. Aluminium capacity in operation grew 1.05 million-tpy in late April from the end of last year, SMM statistics showed.
