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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Rehab programme underway in Fiji's bauxite mining areas
The Fiji Government is monitoring the rehabilitation work at bauxite mining sites in the North as outlined by XINFA Mining in their rehabilitation plan. The programme is to be continued until the site is fully rehabilitated, Director Mineral Resources Raijeli Taga said in an official update. Ms Taga said the rehab work was being closely monitored to ensure the conditions set out by the department were being followed. She added, so far, the programme had been carried out well with 120,000 pine trees planted on the Nawailevu South post bauxite mining site. "This rehabilitation work is closely monitored by the department so that it is according to the conditions of rehabilitation given to the company. This monitoring will apply to all their mine sites," Ms Taga said. Mrs Taga said they had...
Gladstone alumina industry may go offshore with government’s 50% renewable energy target: opposition
According to Senator Matt Canavan, Labor & Green government's 50 percent renewable energy target by 2030 would close the alumina refinery and smelter and send the industry off shore. The Liberal National Party senator said the only way Labor could achieve those targets would be to get the major producers to buy the more expensive renewable energy. Aluminium smelters such as BSL and alumina refineries like Queensland Alumina Limited and Rio Tinto Yarwun are exempt from the renewable energy targets. The Australian Government increased the exemption to 100 percent in 2015 to "ease pressure on business" and "improve the competitiveness of Australian industry" the Clean Energy Regulator website reads. "(But) If (those industries) have to come back into renewable energy, buy renewable energy,...
Magellan Aerospace secures multi-year contracts with GKN Aerospace
Magellan Aerospace announced an agreement today between Magellan Aerospace (UK) Ltd and GKN Aerospace for a contract extension to deliver precision aluminium and titanium components and assemblies to GKN Aerospace's Filton facility where complex wing structures are manufactured and assembled for the A320, A330 and A380 aircraft programs. This contract extension is projected to generate revenues in excess of CDN $130 million through to December 2020 and the components and assemblies will be supplied from Magellan facilities located in the United Kingdom and Poland and its joint ventures in India. Magellan was also awarded a new contract to supply A350 outboard flap precision machine details and assemblies. This new contract is projected to generate revenues of CDN $36 million to December...
Hyderabad to adopt green building code boosting demand for aluminium
The Greater Hyderabad Municipal Corporation plans to popularise the Energy Conservation Building Code, beginning with 25 model buildings, both government and commercial, being made reference models for others. Resultantly, the use of aluminium profiles, panels and other extrusion products for construction will grow given the fact- the white metal is recyclable and helps in reducing carbon footprint. The code will apply to buildings constructed on 1,000 sq mt of land, with built-up area of over 2,000 sq mt, according to Hyderabad Mayor Bonthu Rammohan. “Efforts are on to streamline the functioning of various government departments and construction activity in Telangana and the energy conservation code will be helpful,” he said. Knowledge partners Telangana and Andhra Pradesh adopted the...
Rusal plans to sell special aluminium products to China
Rusal, the global aluminium producer headquartered in Moscow, is in talks to supply Chinese firms with “valued added aluminium alloys” that are not currently available in China, as part of efforts to boost sales in the world’s fastest growing major market for the industrial metal. The Moscow and Hong Kong-listed company is seeking to sell aluminium alloy products in China, including cables used in infrastructure projects, deputy chief executive Oleg Mukhamedshin said via teleconference on Friday. “There are some opportunities from new regulation in China’s cable industry that allows the use of aluminium alloy cables in infrastructure projects ... once we sign a binding agreement we will make an announcement,” he said. Soloviev acknowledged that China’s aluminium producers, which have...
SHFE Aluminium to lack rising momentum
SHFE 1607 aluminium will struggle around the 5-day moving average and move at RMB 12,050-12,200/mt on Monday. LME aluminium will remain weak at USD 1,530-1,550/mt. In China’s spot aluminium market, spot discounts of RMB 0-10/mt and spot premiums of RMB 0-30/mt are expected over SHFE 1605 aluminium contract. Key macroeconomic indicators for base metal prices Base metals may enter downside track this week due to poor reading of economic figures from China released last weekend. US April new home starts are expected to fall slightly to 1 million units as March building permits have posted losses for four weeks in a row on the monthly basis. But US April home sales remained red-hot thanks to expectation for low interest rates. The 30-year fixed-rate mortgage (FRM) slipped from above 4 per...
China aluminium stocks fall faster on demand recovery
Aluminium stocks in China’s five major markets fell at a much faster pace last week as demand has picked up, SMM says. Warehouse withdrawals recovered markedly, but arrivals did not keep up pace, SMM learned. Downstream buyers returned to the market as their panic eased after aluminium prices fell slower. Processors that chose to work through stocks on hand two weeks ago also entered the market. SMM expects aluminium destocking to continue this week. The table below shows details of aluminium stocks at China’s five major markets: Unit: 1,000 tonne
Scientists develop aluminium & aluminium oxide nanocavity that improves semiconductor light absorption
Researchers from the University at Buffalo have developed a method of making ultrathin semiconducting materials using aluminium oxide (Al2SO4) and aluminium. According to researchers, laying a layer of molybdenum disulfide (MoS2) molecules atop an optical nanocavity made from aluminium oxide and aluminium can increase the amount of light the semiconducting material is able to absorb. A nanocavity is a mirror structure that routes light in a closed circuit. Nanocavities are key to assembling lasers and fiber optics, among other light applications. “The nanocavity we have developed has many potential applications,” explained University at Buffalo’s School of Engineering and Applied Sciences assistant professor of electrical engineering Qiaoqiang Gan, Ph.D. “It could potentially be used to...
Rusal aims to keep 2016 aluminium output at 2015 level
Russian aluminium giant Rusal Plc expects 2016 production to be in line with 2015, it said on Friday, after reporting signs of improvement in the market. Rusal, which last year was overtaken by China's Hongqiao as the world's biggest aluminium producer, has been hit by weak prices. It expects output in 2016 to match 2015, when it produced 3.6 million tonnes of aluminium, according to three analysts who listened to Rusal's conference call on Friday. Rusal officials also told analysts it was still considering a plan to reduce its total output capacity by 200,000 tonnes but has not yet made any decisions. Earlier on Friday, Rusal reported a 57 percent slump in first-quarter adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) compared with the same period a year ago...
Aluminium extends its dollar-induced losses touching its lowest level in a month
Despite optimism over a rebound in the U.S. economic growth that overshadowed a stronger dollar resulting in slight uptick in commodity prices, aluminium extended its slide, touching its lowest level in a month on persistent worries about oversupply. "We should see a bit more caution setting in. We are testing longer-term moving average support for many of the metals, particularly copper. So we're at a critical juncture and from here it is very much data dependent," said Robin Bhar, head of metals research at Societe Generale in London. More data from top metals consumer China, including industrial production, is due next week. April retail sales recorded their biggest increase in a year, suggesting the economy is regaining momentum, and U.S. consumer sentiment rose to the highest levels...
Bauxite-mined land can be cultivated with a little extra effort, says farmer
The lush vegetation grown by Surin Deris, a settler, has shown that land formerly mined for bauxite can be cultivated, with a little bit of extra effort. Surin, 68, a first generation settler in Tanah Rancangan Pemuda Bukit Goh, said the plants were grown about one month after bauxite mining activity was halted. Three acres of his plot of 5.5 acres had been leased to bauxite operators and mining works began in May 2015. “Bauxite mining was stopped in October, last year. They had removed the top soil and dug holes (for removing bauxite) and in December, I started planting bananas. “Since planting these plants. I only water the small palm trees while the banana trees and cassava still survive even in hot weather despite being rarely watered,” he told reporters at his farm on Saturday....
“Aluminium has become the material of choice for automotive OEMs, which are transitioning from steel to aluminium” Peter Basten, VP, Strategy and Business Development at Constellium
Constellium is a global leader in manufacturing innovative value-added aluminium products for a broad scope of applications dedicated primarily to the aerospace, automotive and packaging markets. In an email interview with AlCircle, Peter Basten, Vice President Strategy and Business Planning at Constellium talked about their latest developments in the automotive sector and shared his outlook for aluminium in the automotive, aerospace and packaging sector. Mr. Basten has been Vice President Strategy and Business Development since July 2015. He was previously the Managing Director of Soft Alloys Europe at Constellium’s Automotive Structures and Industry Business Unit. Prior to this position, he was Constellium’s Vice President Strategic Planning & Business Development. Excerpts from the...
Alcoa announces executive appointments in value-added businesses
Lightweight metals leader Alcoa today announced that Karl Tragl, Group President of Transportation and Construction Solutions (TCS), has been appointed Group President of Engineered Products and Solutions (EPS), succeeding Olivier Jarrault, effective May 16. Jarrault will leave Alcoa after working with Tragl to ensure a smooth transition. Prior to joining Alcoa in February, Tragl was Chief Executive Officer of Bosch Rexroth, a $6 billion (€5.4 billion) automation solutions company with 31,000 employees in 80 countries. During his six years as CEO, he delivered sustainable profitable growth through innovation and significant operational improvements, while optimizing the portfolio through key acquisitions and divestitures. “Karl is the ideal leader to drive the future profitable growth of...
Demand for aluminium foil packaging and waterproof aluminium boxes is on the rise
A recent study, conducted by the market research company Smithers Pira, showed that demand for transparent plastics barrier films is set to grow at an annual average rate of 3.9 per cent globally reaching 1.9 million tonnes in 2021. The consumption of flexible aluminium foil packaging is expected to increase at an average annual rate of 2.5 per cent per year reaching almost 3 million tonnes by 2021. The demand for packaging films has also been growing globally for over a decade now. Apart from ensuring high barrier effect packaging films also score high from manufacturing and logistics points of view for being cost-effective, light-weight and low volume. Plus, the innovative packaging has long durability and can be disposed off easily. The reason for this boom in transparent film, the...
Chalco cuts aluminium prices in major markets for two consecutive weeks
China Aluminium International Trading Co. (Chalco Trading) cut aluminium prices again in major markets this past week, it said online. For details, please see the table below: Unit: yuan/tonne Note: Chalco Trading is a full subsidiary under Chalco responsible for alumina and aluminium sales.
LME aluminium to see range-bound trading
LME aluminium has fallen below all moving averages, and will trade in a narrow range of USD 1,540-1,560/mt on Friday. SHFE 1607 aluminium will range RMB 11,900-12,100/mt. In China’s spot aluminium market, spot discounts of RMB 0-20/mt and spot premiums of RMB 0-20/mt are expected over SHFE 1605 aluminium contract. Key Macroeconomic Indicators for Base Metal Prices Market will eye US April PPI and retail sales data on Friday. US retail sales are expected to improve in April, mainly because wholesales in March beat February’s levels. US PPI is also likely to improve in April. US import price index, though pointing to limited improvement in April, sent signals of stabilizing inflation. The IBD consumer confidence index for May, released earlier this month, rose markedly from April. This...
UC RUSAL's Q1 2016 revenue from sales of primary aluminium and alloys rises 5% QoQ
UC RUSAL, a leading global aluminium producer, announced its results for the three months ended 31 March 2016. Total revenue decreased by USD563 million, or by 22.7 per cent, to USD1,914 million in the first quarter of 2016, as compared to USD2,477 million for the corresponding period of 2015. The company's revenue from sales of primary aluminium and alloys decreased by USD556 million, or by 25.9 per cent, to USD1,594 million in the first quarter of 2016, as compared to USD2,150 million in the first quarter of 2015, primarily due to 27.5 per cent decrease in the weighted-average realized aluminium price per tonne driven by a decrease in the LME aluminium price, as well as a decrease in premiums above the LME prices in the different geographical segments. Revenue from sales of primary...
Nalco surges on entering into MoU with BARC for R&D
State-run aluminium maker National Aluminium Company (Nalco) has entered into a memorandum of understanding (MoU) with Bhabha Atomic Research Centre (BARC), Mumbai, for Research and Development (R&D) in fields of mutual interest. Extraction of Gallium from Bayer Liquor will be NALCO's first R&D project with BARC with an objective to develop indigenous technology for this strategic metal. The news perked up the sentiment on bourses. Nalco is currently trading at INR 42.90, up by 0.50 points or 1.18 per cent from its previous closing of INR 42.40 on the Bombay Stock Exchange (BSE). The scrip opened at INR 42.60 and has touched a high and low of INR 43.40 and INR 42.60 respectively. So far 35709 shares were traded on the counter. Last one week high and low of the scrip stood at INR 45.40 and...
