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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LME aluminium to consolidate in $1,529-$1,559 range
LME aluminium may consolidate in a range of $1,529-$1,559 per tonne for one or a few days before rising again. The bounce from the May 13 low of $1,531 seems to be incomplete. However, the metal may have not accumulated enough bullish momentum to bounce beyond the resistance at $1,559, the 50 percent Fibonacci retracement rise from the Nov. 23, 2015 low of $1,432.50 to the April 29 high of $1,686. The chance of a break below $1,529 could be low, as the support at $1,529 has been proved to be strong, successfully holding the drop for a few days. A Fibonacci retracement analysis on the fall from $1,686 to $1,531 reveals a resistance at $1,568, the 23.6 percent level, a break above which could lead to a gain to $1,590, the 38.2 percent level.
Altech’s Meckering mining lease granted
Altech Chemicals Limited announced that its kaolin mining lease (ML) application M70/1334 at Meckering, Western Australia has been granted by the Department of Mines and Petroleum (DMP). The ML is estimated to contain ~11 million tonnes of kaolin mineral resources, representing over 250 years of feedstock supply for the company’s proposed 4,000tpa high purity alumina (HPA) plant at Johor, Malaysia. The grant of M70/1334 will allow the company to progress to the next stage of mine development, which is the submission of a mining proposal and a mine closure plan. At Meckering Altech is planning to mine approximately 120,000 tonnes of kaolin once every three years in a short two-month mining campaign. The resultant raw kaolin ore will be stockpiled, then containerised into standard shipping...
Orbite closes a $5 mln financing with Resources Quebec
Orbite Technologies Inc. announced the closing of an equity financing in the amount of $5 million with Ressources Quebec inc., a subsidiary of Investissement Quebec, acting as agent of the Government of Quebec. As part of the financing, Ressources Quebec purchased 20,746,888 Class A shares of Orbite at a price of $0.241 per share. "With this equity investment and the $1 million raised from US investors on May 6, the Company has raised a total of $6 million in equity and is on track to finalize the funding required for completion of our HPA facility," stated Glenn Kelly, CEO of Orbite. "We anticpate closing the $5 million convertible debenture in the coming weeks, after which we will award the contracts for the remainder of the construction and implement our plan towards start-up and...
Hongqiao Group’s Indonesia alumina project yields output
China Hongqiao Group’s large-scale alumina project in Indonesia succeeded in yielding output recently, reported industry sources. The company will sell alumina from the project, whose annual capacity is 1 million tonnes, to China or Middle East within the next 1-2 months. Expected output for the project is 40,000-50,000 tonnes in May. Hongqiao Group is building another 1 million-tpy alumina project in Indonesia.
Metallica Minerals hopeful about starting bauxite production by H1 2017
Metallica Minerals is looking forward to starting bauxite production by the first half of 2017. Metallica CEO, Simon Siesarewich said in a recent interview that the company is likely to have the approvals in place over the wet season 2016/17. Since that is not the right time up around Weipa to be producing a new mine, so they'll wait untill rain stops and then go into production. Metallica is an ASX listed resource company with a market cap of about $7 million or $8 million. Presently, they are focused on their direct shipping bauxite project called Urquhart Point, which is up near Weipa in northern Queensland. The benefit that Urquhart bauxite has is it does not require any infrastructure, Simon pointed out. So therefore, the construction timeframe for this project is likely to be a...
Consent given for bauxite mining in Wainunu, Bua
A landowning unit in Wainunu, Bua on Vanua Levu has given consent for bauxite mining in the district. Although the district meeting held at Daria Village this week did not identify the mataqali, Tui Wainunu Ratu Orisi Baleitavea confirmed that a landowning unit had given its approval. In an interview with this newspaper, Ratu Orisi said the district development board had worked closely with the company to ensure landowners were well informed about bauxite mining issues. "This is very important and we have had one landowning unit approve of mining in the district and the rest will follow suit," he said. "We have considered employment opportunities and a boost to income for our people so after awareness programs in villages and the visitation by chiefs, the landowners are coming forward....
Queensland Alumina eager to explore possibilities of red mud dam project
Red mud, a byproduct of alumina refining from bauxite (the principal ore of aluminium) could be the key to creating a new industry in Gladstone that would lead to thousands of new jobs. Extracting iron ore from the waste product of aluminium to make steel is the latest idea from the group behind the long awaited Gladstone Steel Project. But the proposal depends on whether Rio Tinto, owners of Gladstone aluminium producers, agrees to be the guinea pig for ground-breaking technology developed in Germany. So far the directors of Gladstone Steel are yet to approach Queensland Alumina Limited. But QAL's community relations manager Jeremy Hastings says the company is willing to explore the possibilities. The red mud represents a significant environmental burden for the aluminium industry; and...
Govt of India to set up online portal for monitoring mine clearances
Centre and states will create a platform to monitor the status of clearances and approvals of auctioned mines bearing minerals such as bauxite, gold, iron ore and limestone. At the first meeting of the inter-ministerial group (IMG) held earlier this month, it was decided that a software should be installed for such online monitoring to expedite post-auction clearances, a senior official said. "This platform (software) will monitor key activities involved in the clearance and approval process. Besides, the states and departments concerned will update the processing status on the online portal for monitoring and expediting post-auction mining," he added. According to the minutes of the meeting of Post-Auction Mining Clearances and Approvals Facilitator (PAMCAF), the preferred bidder will...
UAE based aluminium cable manufacturer chosen by Korean nuclear power plant builder
Ducab , the UAE-based leading manufacturer of high-quality copper and aluminium wire and cabling products; which is 50 per cent owned by Senaat and 50 per cent owned by Investment Corporation Dubai (ICD), has announced that its nuclear power-qualified cable range, NuBICC was selected by the Korean Hydro-Nuclear Power Co. (KHNP) for the Shin Hanul 1 & 2 Nuclear power plant under construction currently. This project win, follows significant testing and qualifications. It represents the first international nuclear project for Ducab , building on their successful nuclear cable supply engagement with the UAE's Emirates Nuclear Energy Corporation ( ENEC ). The delivery of these cables builds on a strong history of innovation by Ducab , which has been consistently matched by a conscious...
Demand for Alufoil in Europe picks up, exports still under pressure
First quarter results for aluminium foil deliveries from European suppliers showed positive growth in domestic demand, after a sustained period of mixed or declining results. Exports, however, remain under pressure due to strong competition from non-European producers. Overall the first three months of 2016 saw a small decline of 0.6 per cent in total tonnage to 217,000, compared with 218,500t for 2015, according to figures released by EAFA, the European Aluminium Foil Association. After declines in all four quarters of 2015, production of thinner gauges, used mainly for flexible packaging and household foils, recorded an increase of 0.1 per cent, in fact these are the first positive figures since mid-2014 - reflecting a recovery of demand in Europe, which increased by 2.2 per cent. This...
Automotive alloy market to be worth $177.47 bln by 2021
The global alloy market for automotives is projected to grow at a CAGR of 7.69 per cent from 2016 to 2021, to reach a market size of USD 177.47 billion by 2021, according to a recently published market research report. The report segmented the alloy market for automotives by the alloy type (steel, aluminium, magnesium, and others), area of application (structural, powertrain, exterior and others), vehicle type (passenger car, LCV and HCV), and by region. The major growth factors identified in the report are growing vehicle production, increasingly stringent regulations governing fuel efficiency and emissions, and the rising weight of the vehicles. Adoption of lightweight aluminium alloys has increased in the LCV segment In 2015, the use of aluminium alloy has increased in automotive...
Powertrain work-holding fixtures delivered to Amtek Group
Hyfore Engineering has recently completed the delivery of the latest phase of work-holding fixtures to the Amtek Group. Throughout the past year, the Coventry-based engineering company has delivered 54 bespoke fixtures into the Amtek Group, which operates a major aluminium die casting foundry in Witham. Amtek also operates a machine shop and casts components in the range of 400 to 2700t. The company works closely with its fellow Group member Coventry based King Automotive Systems which is predominantly dedicated to machining and for which Hyfore is also a major work-holding and fixturing supplier. Amtek’s Witham facility produces mostly powertrain engine and transmission components offering customers a fully integrated die casting and machining facility with components delivered in...
International Aluminium Institute appoints new chairman
Hilde Merete Aasheim, executive vice president of the primary metal business for Hydro, headquartered in Norway, has been appointed chairman of the London-based International Aluminium Institute (IAI) at the 89th meeting of its board of directors in Shanghai. Aasheim takes over from Abdulla Kalban, chief executive officer of Emirates Global Aluminium, who stands down at the end of his two-year tenure. “It is a great honour for me to have been elected by my peers to chair the institute at this time of unprecedented change in the aluminium industry,” Aasheim says. “I look forward to building on Abdulla’s achievements over the last two years to advance further the role our modern metal plays in improving people’s quality of life through its innovative applications and unique properties.”...
Bell Bay Aluminium heading back to peak production
Bell Bay Aluminium announced resumption of operations within four to five weeks. The general manager of the company says they are thrilled to be heading back to full production after months of power rationing. The prolonged Basslink outage and record low rainfall caused major industrial energy users of Tasmania to agree to cut back energy use to help keep the region's lights on. BBA general manager Ray Mostogl said recent higher-than-expected rainfall had provided the trigger for an early return to full production. “The rainfall has been what we’ve all been hoping for. We’re delighted to be ramping up about a month earlier than we first planned,” he said. Bell Bay Aluminium operates a smelter near George Town, 45 kilometres away from Launceston. The smelter has a production volume of...
Where will aluminium prices head after two weeks of fall? SMM reports
Aluminium stocks in China’s five major markets plunged 39 per cent from this year’s peak to 570,000 tonnes as of May 13. Aluminium prices, however, got no boost and lost nearly 5 per cent in just two weeks. What was behind the unexpected price decline? Will the light metal search for even lower floor? Aluminium stocks in China’s five major markets dropped just 20,000 tonnes in the first week of May, much slower than previous weeks. This left market worried that a turning point in aluminium inventories might be in sight, thus dragging aluminium prices down. In addition, ferrous metals prices in domestic futures market took a heavy battering after Chinese regulators introduced measures to cool fever. Pessimistic remarks that Chinese economy will struggle in the “L” shape for a long time,...
Strong US dollar to weigh on LME aluminium
The US dollar index rose above 95 as minutes of the US Fed’s April meeting strengthened expectations for rate hike in June. This will drag LME aluminium down to USD 1,535-15,55/mt on Thursday. SHFE 1607 aluminium will move at RMB 12,200-12,420/mt. 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 Diverging trend should intensify further on base metals market with US dollar gathering rising momentum, supported by hawkish statement from US Fed April rate meeting. Attention is turning to US May Philadelphia Fed's manufacturing index and US initial jobless claims early last week. The hawkish statement from US Fed April rate meeting come as no surprise and the meeting minutes...
Increasing applications of light emitting diodes benefit high purity alumina market
High purity alumina (HPA) is a high-value product that is used as a base material in the fabrication of sapphire substrates. These substrates have applications in scratch-proof artificial sapphire glass, semiconductor wafers, and light emitting diodes (LEDs). Traffic lights, backlights in electronics, LED-backlit LCDs, and general lighting products are some of the major applications of LEDs, which indirectly propel the high purity alumina market. Other applications of high purity alumina lie as a phosphor material in plasma displays and as an essential constituent in protective coatings. The price and performance of HPA are dependent on product density, degree of purity, and particle size distribution. The global HPA market was worth US$1.2 billion in 2014. Developing at a moderate CAGR...
Jiangsu Longzhe Tech offers to invest $125 mln in India's aluminium alloy conductor manufacturer
Jiangsu Longzhe Technology and Trade Development Co Ltd has offered to invest $125 million (about INR 825 crore) in Diamond Power Infrastructure Ltd, the Indian electrical-equipment maker said. The investment will be subject to the approval of a debt restructuring process by lenders to the company, Diamond Power said in a stock-exchange filing. Founded in 1970, Diamond Power makes equipment including power cables, conductors, wires, power and control cables transformers and aluminium alloy conductors. The amount will be invested through a partially convertible instrument. The instrument will be partially converted to shares for a price not less than INR 103.5 apiece and will the investor a stake of no more than 51 per cent in the company, the filing said. The company said that Longzhe is...
